10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-31568

New England Realty Associates Limited Partnership

(Exact name of registrant as specified in its charter)

Massachusetts	04-2619298
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification no.)
39 Brighton Avenue, Allston, Massachusetts	02134
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 783-0039

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated Filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
Class A	NEN	NYSE MKT Exchange

As of August 8, 2023, there were 94,877 of the registrant’s Class A units (2,846,300 Depositary Receipts) of limited partnership issued and outstanding and 22,533 Class B units issued and outstanding.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

INDEX

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	4
	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2023 and 2022	5
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2023 and 2022	6
	Consolidated Statements of Changes in Partners’ Capital for the Six Months Ended June 30, 2023 and 2022	7
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosure	43
Item 5.	Other Information	43
Item 6.	Exhibits	43
SIGNATURES		44

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NEW ENGLAND REALTY ASSOCIATES, L.P.

PART 1 -- FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited consolidated balance sheets, statements of income, statements of comprehensive income, changes in partners’ capital, and cash flows and related notes thereto, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. The financial statements reflect all adjustments consisting only of normal, recurring adjustments, which are, in the opinion of management, necessary for a fair presentation for the interim periods.

The consolidated balance sheet as of December 31, 2022, has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The aforementioned financial statements should be read in conjunction with the notes to the aforementioned financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in New England Realty Associates L.P.’s Annual Report on

Form10-K for the fiscal year ended December 31, 2022.

The results of operations for the six month period ended June 30, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year or any other period.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30,		December 31,
	2023		2022
ASSETS		(Unaudited)
Rental Properties	$	247,450,840	$	241,076,431
Cash and Cash Equivalents		55,700,166		49,560,723
Rents Receivable		769,712		655,814
Real Estate Tax Escrows		2,149,919		1,943,680
Investment in U.S. Treasury Bills		68,355,526		88,332,133
Prepaid Expenses and Other Assets		11,075,437		8,814,112
Investments in Unconsolidated Joint Ventures		1,435,154		1,437,387
Total Assets	$	386,936,754	$	391,820,280
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable		409,834,512		410,966,199
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		25,963,031		24,419,129
Accounts Payable and Accrued Expenses		5,567,224		7,271,729
Advance Rental Payments and Security Deposits		9,878,020		9,032,580
Total Liabilities		451,242,787		451,689,637
Commitments and Contingent Liabilities (Notes 3 and 9)		—		—
Partners’ Capital 118,661 and 119,255 units outstanding in 2023 and 2022 respectively		(64,306,033)		(59,869,357)
Total Liabilities and Partners’ Capital	$	386,936,754	$	391,820,280

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended					Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Revenues
Rental income	$	17,964,963	$	16,825,737	$	35,533,690	$	33,285,743
Laundry and sundry income		136,073		106,191		259,032		226,593
		18,101,036		16,931,928		35,792,722		33,512,336
Expenses
Administrative		867,721		623,877		1,604,822		1,331,663
Depreciation and amortization		3,961,432		4,076,597		7,807,693		8,097,365
Management fee		665,073		672,370		1,362,837		1,345,454
Operating		1,721,233		1,522,250		4,255,029		4,198,458
Renting		244,434		150,943		436,019		320,332
Repairs and maintenance		3,479,071		2,974,734		6,241,845		5,254,385
Taxes and insurance		2,423,722		2,300,235		4,894,401		4,576,808
		13,362,686		12,321,006		26,602,646		25,124,465
Income Before Other Income (Expense)		4,738,350		4,610,922		9,190,076		8,387,871
Other Income (Expense)
Interest income		1,199,643		32		2,174,177		61
Interest expense		(3,925,863)		(3,623,714)		(7,825,103)		(7,078,349)
Income (loss) from investments in unconsolidated joint ventures		119,664		90,283		347,368		110,351
Other (expenses)		92,810		(834,538)		92,823		(834,533)
		(2,513,746)		(4,367,937)		(5,210,735)		(7,802,470)
Net Income	$	2,224,604	$	242,985	$	3,979,341	$	585,401
Net Income per Unit	$	18.73	$	2.02	$	33.45	$	4.84
Weighted Average Number of Units Outstanding		118,764		120,528		118,971		120,885

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net income	$	2,224,604	$	242,985	$	3,979,341	$	585,401
Net unrealized gain on derivative instruments for interest rate swaps		168,002		—		2,115		—
Comprehensive income	$	2,392,606	$	242,985	$	3,981,456	$	585,401

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER’S CAPITAL

(Unaudited)

	Units						Partner’s Capital
	Limited		General		Treasury		Limited				General		Accumulated
	Class A	Class B	Partnership	Subtotal	Units	Total	Class A		Class B		Partnership		Comprehensive Income	Total
Balance January 1, 2022	144,180	34,243	1,802	180,225	58,709	121,516	$	(39,462,357)		(9,338,738)		(491,512)	—	$	(49,292,607)
Distribution to Partners	—	—	—	—	—	—		(5,581,276)		(1,325,553)		(69,766)	—		(6,976,595)
Stock Buyback	—	—	—	—	1,574	(1,574)		(2,951,569)		(700,523)		(36,869)	—		(3,688,961)
Net Income	—	—	—	—	—	—		468,321		111,226		5,854	—		585,401
Balance June 30 , 2022	144,180	34,243	1,802	180,225	60,283	119,942	$	(47,526,881)	$	(11,253,588)	$	(592,293)		$	(59,372,762)
													—
Balance January 1, 2023	144,180	34,243	1,802	180,225	60,970	119,255	$	(48,160,462)	$	(11,403,635)	$	(600,191)	294,931	$	(59,869,357)
Distribution to Partners	—	—	—	—	—	—		(5,703,006)		(1,354,464)		(71,288)	—		(7,128,758)
Stock Buyback	—	—	—	—	594	(594)		(1,031,739)		(244,753)		(12,882)	—		(1,289,374)
Net Income	—	—	—	—	—	—		3,183,473		756,075		39,793	—		3,979,341
Net unrealized gain on derivative instruments for interest rate swaps	—	—	—	—	—	—		—		—		—	2,115		2,115
Balance June 30, 2023	144,180	34,243	1,802	180,225	61,564	118,661	$	(51,711,734)		(12,246,777)		(644,568)	297,046		(64,306,033)

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2023		2022
Cash Flows from Operating Activities
Net Income	$	3,979,341	$	585,401
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		7,807,693		8,097,365
Amortization of deferred finance costs		189,892		252,729
(Income) from investments in joint ventures		(347,368)		(110,351)
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures		59,000		72,500
(Increase) Decrease in rents receivable		(113,898)		282,243
(Decrease) in accounts payable and accrued expense		(1,704,508)		(284,656)
(Increase) in real estate tax escrow		(206,239)		(984,411)
(Increase) in interest receivable U.S. Treasury bills		(383,809)		—
(Increase) in prepaid expenses and other assets		(1,958,461)		(1,282,943)
Increase in advance rental payments and security deposits		845,440		824,409
Total Adjustments		4,187,742		6,866,885
Net cash provided by operating activities		8,167,083		7,452,286
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures		1,575,000		1,135,000
Investment in U.S. Treasury bills		(68,355,526)		—
Proceeds from U.S. Treasury bills		88,332,133		—
Purchase of rental property		(8,974,242)		—
Improvement of rental properties		(4,865,294)		(2,113,339)
Net cash (used in) investing activities		7,712,071		(978,339)
Cash Flows from Financing Activities
Principal payments of mortgage notes payable		(1,321,579)		(1,198,209)
Proceeds from Mortgage Notes Payable		—		41,937,337
Stock buyback		(1,289,374)		(3,688,961)
Distributions to partners		(7,128,758)		(6,976,595)
Net cash provided by (used in) financing activities		(9,739,711)		30,073,572
Net Increase in Cash and Cash Equivalents		6,139,443		36,547,519
Cash and Cash Equivalents, at beginning of period		49,560,723		96,083,508
Cash and Cash Equivalents, at end of period	$	55,700,166	$	132,631,027

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

(Unaudited)

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 30 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 5 commercial buildings and individual units at one condominium complex. These properties total 2,892 apartment units, 19 condominium units and 128,635 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

9

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing

10

activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $190,000 and $253,000 for the six months ended June 30, 2023 and 2022, respectively.

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 14).

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in BlackRock Liquidity Treasury Trust Fund, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.

Investments in Treasury Bills: Investments in Treasury Bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income.

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately $2,000 for the six months ended June 30, 2023, but had no comprehensive income or loss for the six months ended June 30, 2022.

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3-for-1 forward split.

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Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2023 or 2022. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2023, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, and investments in U.S. Treasury bills, earning interest at rates from 0.01% to 5.0%. At June 30, 2023 and December 31, 2022, respectively approximately $56,158,000, and $49,641,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. Of the $56,158,000, approximately $40,092,000 is invested in Blackrock Liquidity Funds Treasury Trust, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $193,000 and $135,000 for the six months ended June 30, 2023, and 2022, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2023, and 2022 there was no capitalized interest.

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.

Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

NOTE 2. RENTAL PROPERTIES

As of June 30, 2023, the Partnership and its Subsidiary Partnerships owned 2,892 residential apartment units in 25 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of June 30, 2023, the Partnership and Subsidiary Partnerships owned two commercial shopping centers in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton, and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in seven residential and mixed use complexes (the “Investment Properties”) at June 30, 2023 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000 on January 18, 2023. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $59,000. From the purchase price, the Partnership allocated approximately $585,000 to in- place leases, and approximately $378,000 to the

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value of tenant relationships. The value assigned to in-place leases is being amortized over a twelve-month period. The value assigned to tenant relationships is being amortized over the individual tenant’s lease term, ranging from 20 months to 156 months.

Rental properties consist of the following:

	June 30, 2023		December 31, 2022		Useful Life
Land, improvements and parking lots	$	90,857,007	$	87,405,897	15	-	40	years
Buildings and improvements		263,076,029		256,035,191	15	-	40	years
Kitchen cabinets		15,029,029		14,347,212	5	-	10	years
Carpets		13,035,304		12,047,573	5	-	10	years
Air conditioning		501,697		501,697	5	-	10	years
Laundry equipment		553,140		553,140	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		19,418,136		18,716,758	5	-	30	years
Motor vehicles		232,954		171,519			5	years
Fences		46,872		46,872	5	-	15	years
Furniture and fixtures		8,817,296		7,902,182	5	-	7	years
Total fixed assets		414,543,333		400,703,910
Less: Accumulated depreciation		(167,092,493)		(159,627,479)
	$	247,450,840	$	241,076,431

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by The Hamilton Company, Inc. (the “Management Company”), an entity that is owned by the majority shareholder of NewReal, Inc., the general partner of the Partnership (the “General Partner”). The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately 1,364,000 and $1,345,000 for the six months ended June 30, 2023 and 2022, respectively.

The Partnership Agreement permits the General Partner or the Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the six months ended June 30, 2023 and 2022, approximately $914,000 and $383,000 was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2023 expenses referred to above, approximately $165,000 consisted of repairs and maintenance, $171,000 of administrative expense, and approximately $57,000 for renting expense. Approximately $521,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2023, the Hamilton Company received approximately $398,000 from the Investment Properties of which approximately $334,000 was the management fee, approximately $5,000 for construction, architectural services and supervision of capital projects, approximately $43,000 for repairs and maintenance, and approximately $16,000 for legal expense. The management fee is equal to 4% of gross receipts of rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the Management Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $2,050,000 and $1,913,000 for the six months ended June 30, 2023 and 2022, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. For the six months ended June 30, 2023, the Partnership accrued $32,000 for the employer’s match portion to the plan. For the six months ended June 30, 2022, the Partnership contributed $28,000 for the employer’s match portion to the plan.

Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 15 people. During the six months ended June 30, 2023 and 2022, the Management Company charged the Partnership $62,500 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

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Sally Michael is a Director of New Real, Inc., and she is a Partner at Saul Ewing Arnstein & Lear LLP. Saul Ewing billed the Partnership for legal fees totaling approximately $39,000 and $68,000 for the six months ended June 30, 2023 and 2022 respectively.

The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are the Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 15 for a description of the properties and their operations.

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $3,523,000, and $3,406,000 of security deposits are included in prepaid expenses and other assets at June 30, 2023 and December 31, 2022, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at June 30, 2023 and December 31, 2022 is approximately $1,547,000 and $1,979,000, respectively, held in escrow to fund future capital improvements, approximately $957,000 and $573,000 respectively in interest receivable, U.S. Treasury bills ,and respectively $840,000 and $580,000 in distributions receivable from the joint ventures.

Intangible assets on the acquisition of 653 Worcester Road are included in prepaid expenses and other assets. Intangible assets are approximately $667,000 and $0 net of accumulated amortization of approximately $296,000 and $1,418,000 at June 30, 2023, and at December 31, 2022 respectively.

Financing fees in association with the line of credit of approximately $80,000 and $109,000 are net of accumulated amortization of approximately $100,000 and $70,000 at June 30, 2023 and December 31, 2022 respectively.

NOTE 5. MORTGAGE NOTES PAYABLE

At June 30, 2023 and December 31, 2022, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At June 30, 2023, the interest rates on these loans ranged from 2.97% to 4.95%, payable in monthly installments aggregating approximately $1,523,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At June 30, 2023, the weighted average interest rate on the above mortgages was 3.68%. The effective rate of 3.78% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $2,969,000 and $3,159,000 are net of accumulated amortization of approximately $1,163,000 and $973,000 at June 30, 2023 and December 31, 2022, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at June 30, 2023 are as follows:

2024—current maturities	$	3,062,000
2025		3,578,000
2026		21,957,000
2027		6,620,000
2028		23,220,000
Thereafter		354,367,000
		412,804,000
Less: unamortized deferred financing costs		2,969,000
	$	409,835,000

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On June 16, 2022, the Partnership entered into an amendment to the Facility Agreement. The additional advance under the Amended Agreement is in the amount of $80,284,000, at a fixed interest rate of 4.33%. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings.

The Partnership used the proceeds to pay down approximately $37,065,000 of existing debt secured by four properties, along with approximately $834,000 in prepayment penalties. The remaining balance of approximately $42,404,000 will be used for general partnership purposes.

On November 30, 2021, New England Realty Associates Limited Partnership (the “Partnership”), entered into a Master Credit Facility Agreement ( the “Facility Agreement”) with KeyBank National Association (“KeyBank”) dated as of November 30, 2021, with an initial advance in the amount of $156,000,000. Interest only on the debt at a fixed interest rate of 2.97% is payable on a monthly basis through December 31, 2031. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings (“Mortgages”).

The Partnership used the proceeds to pay down approximately $65,305,000 of existing debt secured by 11 properties, along with approximately $2,700,000 in prepayment penalties. The remaining balance of approximately $89,000,000 will be used for general partnership purposes.

On October 14, 2022, the Partnership entered into a loan agreement with Brookline Bank refinancing its loan on 659-665 Worcester Road, Framingham, MA. The agreement pays down the loan on the existing debt of $5,954,546.14, extends the maturity until October 14, 2032, at a variable interest rate of SOFR rate, plus 1.7% interest only for 2 years and amortizing using a thirty-year schedule for the balance of the term. At closing, the Partnership entered into an interest rate swap contract with Brookline Bank with a notional amount equivalent to the underlying loan principal amortization, resulting in a fixed rate of 4.60% through the expiration of the interest rate swap contract. The agreement also allows for an earn out of up to an additional $1,495,453.86 once the property performance reaches a 1.35x debt service coverage ratio and the loan to value equates to at most 65%.

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period phased out as of December 31, 2022. During this period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million. As of June 30, 2023, the portfolio’s debt yield fell below the minimum of 9.5% to 8.5%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is unable to draw down any amount from the line of credit until the Partnership meets the required financial covenants.

The interest rate for the new term is LIBOR plus 300 basis points. The costs associated with the modification and renewal of the line of credit was approximately $179,000.

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After June 30, 2023, the remaining tenors of U.S.-dollar LIBOR ceased publication, prompting the need for an alternative benchmark rate. On April 14, 2023, the partnership amended the line of credit to convert its base rate of interest from LIBOR to the Secured Overnight Financing Rate (SOFR) plus 10 basis points.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay dividends, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Partnership’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. At June 30, 2023, amounts received for prepaid rents of approximately $2,919,000 are included in cash and cash equivalents, and security deposits of approximately $3,523,000 are included in prepaid expenses and other assets and are restricted cash.

NOTE 7. PARTNERS’ CAPITAL

The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the distributions made to the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

In January 2023, the Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per Receipt), payable on March 31, 2023. In addition to the quarterly distribution, there was a special distribution of $38.40 per Class A unit ($1.28 per Receipt) payable on March 31, 2023. In May 2023, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 30, 2023.

In 2022 the Partnership paid total distributions of an aggregate $76.80 per Unit ($2.56 per Receipt) for a total payment of $9,267,981.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Six Months Ended
	June 30,
	2023		2022
Net Income per Depositary Receipt	$	1.12	$	0.16
Distributions per Depositary Receipt	$	2.00	$	1.92

NOTE 8. TREASURY UNITS

Treasury Units at June 30, 2023 are as follows:

Class A	49,251
Class B	11,697
General Partnership	616
	61,564

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the

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Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions.

From August 20, 2007 through June 30, 2023, the Partnership has repurchased 1,502,734 Depositary Receipts at an average price of $30.54 per receipt (or $916.20 per underlying Class A Unit), 4,160 Class B Units and 219 General Partnership Units, both at an average price of $1,209.00 per Unit, totaling approximately $51,785,000 including brokerage fees paid by the Partnership.

During the six months ended June 30, 2023, the Partnership purchased a total of 14,274 Depositary Receipts. The average price was $72.20 per receipt, or $2,166 per unit. The cost including commission was $1,031,739.The Partnership was required to repurchase 113 Class B Units and 6 General Partnership units at a cost of $244,753 and $12,882 respectively.

NOTE 9. COMMITMENTS AND CONTINGENCIES

The Partnership, the Subsidiary Partnerships, and the Investment Properties and their properties are not presently subject to any material litigation, and, to management’s knowledge, there is not any material litigation presently threatened against them. The properties are occasionally subject to ordinary routine legal and administrative proceedings incident to the ownership of residential and commercial real estate. Some of the legal and other expenses related to these proceedings are covered by insurance and none of these costs and expenses are expected to have a material adverse effect on the Consolidated Financial Statements of the Partnership.

NOTE 10. RENTAL INCOME

During the six months ended June 30, 2023, approximately 94% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2023 as follows:

	Commercial
	Property Leases
2024	$	2,595,339
2025		2,292,661
2026		2,478,151
2027		1,919,558
2028		1,685,361
Thereafter		10,703,368
	$	21,674,438

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $328,000 and $437,000 for the six months ended June 30, 2023 and 2022 respectively. Trader Joe’s and Walgreen’s, tenants at Staples Plaza and 653 Worcester Road, Framingham, MA. respectively, are approximately 23% of the total commercial rental income.

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The following information is provided for commercial leases:

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through June 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2024	$	776,396	34,544	22	21	%
2025		443,854	16,663	9	12	%
2026		214,265	6,132	8	6	%
2027		294,550	12,440	6	8	%
2028		283,478	7,651	3	8	%
2029		142,860	3,112	2	4	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		1,428,261	46,987	4	38	%
Totals	$	3,694,264	128,635	55	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $1,291,000 and $1,007,000 at June 30, 2023 and December 31, 2022. Included in rents receivable at June 30, 2023 is approximately $199,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis.

Rents receivable at June 30, 2023 also includes approximately $28,000 representing the deferral of rental concession primarily related to the residential properties.

NOTE 11. CASH FLOW INFORMATION

During the six months ended J une 30, 2023 and 2022, cash paid for interest was approximately $7,678,000, and $6,987,000 respectively. Cash paid for state income taxes was approximately $25,000 and $49,000 during the six months ended June 30, 2023 and 2022 respectively.

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At June 30, 2023 and December 31, 2022, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.

Financial Assets and Liabilities not Measured at Fair Value

At June 30, 2023 and December 31, 2022 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items.

The Partnership has investments in Treasury Bills some of which mature over a period greater than 90 days and are classified as short-term investments. The Treasury Bills are carried at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income. The Treasury Bills classified within Level I of the fair value hierarchy.

At June 30, 2023 and December 31, 2022 we estimated the fair value of our mortgage payable, derivative financial instrument, and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at June 30, 2023 and

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December 31, 2022, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so. At June 30, 2023 and at December 31, 2022 the Partnership’s line of credit had an outstanding balance of zero.

The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments:

● For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities.

● For mortgage notes payable: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments.

The following table reflects the carrying amounts and estimated fair value of our debt.

	June 30, 2023		Dec 31, 2022
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	55,700,166	55,700,166	49,560,723	49,560,723
Treasury bills	68,355,526	69,296,283	88,332,133	88,908,540
Total Assets	124,055,692	124,996,449	137,892,856	138,469,263
Liabilities
Mortgage payable *
- Partnership properties	409,834,512	356,801,408	410,966,199	355,629,060
- Investment properties	166,031,338	153,687,019	166,090,966	153,710,522
Total Liabilities	575,865,850	510,488,427	577,057,165	509,339,582

* Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2023 and December 31, 2022. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since June 30, 2023 and current estimates of fair value may differ significantly from the amounts presented herein.

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS

Cash Flow Hedges of Interest Rate Risk

The Partnership’s objectives in using rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Partnership uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Partnership making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to

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derivatives will be reclassified to interest expense as interest payments are made on the Partnership’s variable rate debt. During the next 12 months, the Partnership estimates $138,000 will be reclassified as a decrease to interest expense.

As of June 30, 2023, the Partnership had one interest rate swap outstanding with a notional amount of approximately $297,000 designated as cash flow hedges of interest rate risk. As of June 30, 2023, the Partnership did not have any interest rate derivatives in a net liability position.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of, June 30, 2023 and 2022.

	Fair Value
Asset Derivatives designated	June 30,		December 31,
as hedging instruments	2023		2022		Balance sheet location
Interest rate swaps	$	297,046	$	—	Prepaid Expenses and Other Assets

The table below presents the effect the Company’s derivative financial instruments on the consolidated statements of income for the quarters ended June 30, 2023 and 2022.

					Location of Gain
					or (Loss)	Amount of Gain					Total Amount of
					Reclassified	or (Loss)				Location of Gain	Interest Expense
	Amount of Gain				from	Reclassified				or (Loss) Recognized	presented in the
Derivatives in Cash Flow	or (Loss) Recognized				Accumulated	from Accumulated				in Income on	consolidated statements
Hedging Relationships	in OCI on Derivative				OCI Into Income	OCI into Income				Derivative	of operations
Three Months Ended June 30,	2023		2022			2023		2022			2023		2022
Interest rate swaps	$	168,002	$	—	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(3,925,863)	$	(3,623,714)
Six Months Ended June 30,
Interest rate swaps	$	2,115	$	—	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(7,825,103)	$	(7,078,349)

NOTE 14. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, different depreciation methods, different tax lives, other items with limited tax deductibility carryovers and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $10,968,000 was approximately $7,245,000 more than statement income for the year ended December 31, 2022. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2022 is approximately $14,000,000 more than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation and bonus depreciation. The Partnership’s Federal tax basis in its joint venture investments is approximately $3,000,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidated financial statements.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of June 30, 2023, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2019 forward.

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NOTE 15. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC , entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. At June 30, 2023, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At June 30, 2023, the balance on this mortgage before unamortized deferred financing costs is $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

21

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30 2023, the balance on this mortgage before unamortized deferred financing costs is $6,000,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30, 2023, the balance of the mortgage before unamortized deferred finance is $16,900,000. The investment is referred to as Hamilton on Main LLC.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At June 30, 2023, the balance of this mortgage before unamortized deferred financing costs is approximately $8,599,000. This investment is referred to as 345 Franklin, LLC.

22

Summary financial information at June 30, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,614,141		$	2,584,435		$	4,650,472		$	76,659		$	4,324,746		$	12,985,301		$	74,525,027		$	104,760,781
Cash & Cash Equivalents		997,622			60,182			374,750			16,853			251,310			611,236			2,088,673			4,400,626
Rent Receivable		211,562			80,184			—			4,931			2,589			9,044			140,146			448,456
Real Estate Tax Escrow		67,281			—			23,412			—			43,542			139,831			—			274,066
Prepaid Expenses & Other Assets		326,548			50,175			104,393			1,049			42,306			248,929			2,635,666			3,409,066
Total Assets	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,968,975		$	—		$	8,565,993		$	—		$	5,932,827		$	16,881,274		$	124,682,270		$	166,031,339
Accounts Payable & Accrued Expense		165,149			1,500			124,185			2,660			74,550			196,773			816,401			1,381,218
Advance Rental Pmts & Security Deposits		309,790			—			335,465			—			192,370			515,070			3,506,661			4,859,356
Total Liabilities		10,443,914			1,500			9,025,643			2,660			6,199,747			17,593,117			129,005,332			172,271,913
Partners’ Capital		(3,226,760)			2,773,476			(3,872,616)			96,832			(1,535,254)			(3,598,776)			(49,615,820)			(58,978,918)
Total Liabilities and Capital	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,386,738		$	—		$	48,416		$	—		$	—		$	—			1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,613,380)		$	—		$	(1,936,308)		$	—		$	(767,627)		$	(1,799,388)		$	(19,846,328)			(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(24,527,877)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			690
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			—			—			—			—			—
Units sold through August 1, 2023		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Financial information for the six months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	850,177	$	120,942	$	834,013	$	49,735	$	638,730	$	1,886,063	$	8,015,963	$	12,395,623
Laundry and Sundry Income		3,040		—		—		—		—		—		48,433		51,473
		853,217		120,942		834,013		49,735		638,730		1,886,063		8,064,396		12,447,096
Expenses
Administrative		10,531		1,500		13,043		1,871		9,482		38,973		113,118		188,518
Depreciation and Amortization		234,133		5,855		172,866		1,632		168,308		530,006		1,821,273		2,934,073
Management Fees		33,744		4,768		32,632		1,989		25,663		74,129		160,975		333,900
Operating		150,518		—		57,035		142		68,372		224,264		653,665		1,153,996
Renting		30,945		—		18,200		—		1,573		24,455		67,759		142,932
Repairs and Maintenance		95,955		—		62,538		—		44,233		336,730		894,898		1,434,354
Taxes and Insurance		141,245		30,681		94,286		8,704		70,400		262,939		1,271,219		1,879,474
		697,071		42,804		450,600		14,338		388,031		1,491,496		4,982,907		8,067,247
Income Before Other Income		156,146		78,138		383,413		35,397		250,699		394,567		3,081,489		4,379,849
Other Income (Loss)
Interest Expense		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
Net (Loss) Income	$	(202,706)	$	78,138	$	209,939	$	35,397	$	132,591	$	(6,176)	$	559,435	$	806,618
Net (Loss) Income —NERA 50%	$	(101,353)	$	39,070	$	104,970	$	17,699	$	66,296	$	(3,088)				123,593
Net Income —NERA 40%													$	223,774		223,774
															$	347,368

23

Financial information for the three months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	411,189	$	60,471	$	422,123	$	24,867	$	325,228	$	963,511	$	4,018,665	$	6,226,054
Laundry and Sundry Income		337		—		—		—		—		(15,429)		12,433		(2,659)
		411,526		60,471		422,123		24,867		325,228		948,082		4,031,098		6,223,395
Expenses
Administrative		5,791		750		9,574		951		5,607		26,269		65,111		114,053
Depreciation and Amortization		117,146		2,928		86,560		816		84,591		265,496		915,526		1,473,063
Management Fees		14,652		1,589		16,495		994		12,857		36,933		79,366		162,886
Operating		67,170		—		31,655		75		30,856		95,322		276,666		501,744
Renting		27,770		—		9,943		—		205		12,509		27,136		77,563
Repairs and Maintenance		41,487		—		38,327		—		23,299		183,276		576,924		863,313
Taxes and Insurance		70,311		15,224		47,111		4,203		35,042		130,566		647,645		950,102
		344,327		20,491		239,665		7,039		192,457		750,371		2,588,374		4,142,724
Income Before Other Income		67,199		39,980		182,458		17,828		132,771		197,711		1,442,724		2,080,671
Other Income (Loss)
Interest Expense		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
Net Income (Loss)	$	(119,340)	$	39,980	$	95,943	$	17,828	$	73,413	$	(15,655)	$	183,943	$	276,112
Net Income (Loss)—NERA 50%	$	(59,670)	$	19,990	$	47,972	$	8,914	$	36,708	$	(7,827)				46,087
Net Income —NERA 40%													$	73,577		73,577
															$	119,664

Future annual mortgage maturities at June 30, 2023 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2024	$	—	$	235,293	$	—	$	—	$	—	$	235,293
6/30/2025		—		244,563		—		16,900,000		—		17,144,563
6/30/2026		10,000,000		254,197		—		—		—		10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		—		274,619
Thereafter		—		7,326,402		6,000,000		—		125,000,000		138,326,402
		10,000,000		8,599,285		6,000,000		16,900,000		125,000,000		166,499,285
Less: unamortized deferred financing costs		(31,025)		(33,292)		(67,173)		(18,726)		(317,730)		(467,946)
	$	9,968,975	$	8,565,993	$	5,932,827	$	16,881,274	$	124,682,270	$	166,031,339

At June 30, 2023 the weighted average interest rate on the above mortgages was 4.21%. The effective rate was 4.28% including the amortization expense of deferred financing costs.

24

Summary financial information at June 30, 2022

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,045,672		$	2,586,925		$	4,897,693		$	79,923		$	4,581,892		$	13,896,435		$	77,385,213		$	109,473,753
Cash & Cash Equivalents		709,651			113,595			217,415			13,122			252,822			808,436			1,890,452			4,005,493
Rent Receivable		208,605			75,159			3,531			4,898			16,493			29,724			136,897			475,307
Real Estate Tax Escrow		73,643			—			34,630			—			29,447			70,172			—			207,892
Prepaid Expenses & Other Assets		319,717			56,859			118,903			630			26,635			176,283			2,792,920			3,491,947
Total Assets	$	7,357,288		$	2,832,538		$	5,272,172		$	98,573		$	4,907,289		$	14,981,050		$	82,205,482		$	117,654,392
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,955,186		$	—		$	8,785,710		$	—		$	5,924,643		$	16,865,222		$	124,617,647		$	166,148,408
Accounts Payable & Accrued Expense		105,777			1,713			64,101			2,064			53,140			168,858			702,566			1,098,219
Advance Rental Pmts& Security Deposits		282,378			—			303,449			—			195,781			455,979			3,825,600			5,063,187
Total Liabilities		10,343,341			1,713			9,153,260			2,064			6,173,564			17,490,059			129,145,813			172,309,814
Partners’ Capital		(2,986,053)			2,830,825			(3,881,088)			96,509			(1,266,275)			(2,509,009)			(46,940,331)			(54,655,422)
Total Liabilities and Capital	$	7,357,288		$	2,832,538		$	5,272,172		$	98,573			4,907,289		$	14,981,050		$	82,205,482		$	117,654,392
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,415,411		$	—		$	48,254		$			$			$			$	1,463,665
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,493,027)		$	—		$	(1,940,544)		$	—		$	(633,138)		$	(1,254,505)		$	(18,776,132)			(24,097,346)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(22,633,681)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			—			—			—			—			—
Units sold through August 1, 2022		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Financial information for the six months ended June 30, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	760,751	$	175,371	$	714,821	$	50,122	$	598,537	$	1,806,118	$	7,120,130	$	11,225,850
Laundry and Sundry Income		5,394		—		125		—		776		17,150		49,593		73,038
		766,145		175,371		714,946		50,122		599,313		1,823,268		7,169,723		11,298,888
Expenses
Administrative		8,873		1,548		19,992		1,349		5,755		35,579		109,732		182,828
Depreciation and Amortization		238,779		5,855		173,191		1,632		168,403		537,314		1,865,883		2,991,057
Management Fees		37,096		7,526		28,109		2,053		23,529		72,517		152,670		323,500
Operating		119,220		—		36,715		1,165		75,203		191,826		581,751		1,005,880
Renting		14,065		—		17,206		—		7,014		25,580		72,674		136,539
Repairs and Maintenance		69,868		3,180		83,758		—		44,990		305,954		797,670		1,305,420
Taxes and Insurance		133,102		31,508		87,467		9,120		75,678		261,364		1,220,611		1,818,850
		621,003		49,617		446,438		15,319		400,572		1,430,134		4,800,991		7,764,074
Income Before Other Income		145,142		125,754		268,508		34,803		198,741		393,134		2,368,732		3,534,814
Other Income (Loss)
Interest Expense		(141,388)		—		(176,400)		—		(118,129)		(376,798)		(2,534,570)		(3,347,285)
Other Income		—		—		—		—		—		—		—		—
		(141,388)		—		(176,400)		—		(118,129)		(376,798)		(2,534,570)		(3,347,285)
Net Income (Loss)	$	3,754	$	125,754	$	92,108	$	34,803	$	80,612	$	16,336	$	(165,838)	$	187,529
Net Income (Loss)—NERA 50%	$	1,877	$	62,878	$	46,054	$	17,402	$	40,306	$	8,168				176,685
Net Income —NERA 40%													$	(66,334)		(66,334)
															$	110,351

25

Financial information for the three months ended June 30, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	318,903	$	89,269	$	368,001	$	25,752	$	304,499	$	915,736	$	3,649,413	$	5,671,573
Laundry and Sundry Income		—		—		125		—		1,076		6,599		22,538		30,338
		318,903		89,269		368,126		25,752		305,575		922,335		3,671,951		5,701,911
Expenses
Administrative		4,099		798		8,468		699		3,404		11,059		54,214		82,741
Depreciation and Amortization		119,593		2,928		86,777		816		84,443		268,850		936,748		1,500,155
Management Fees		18,611		4,208		14,306		1,095		12,136		35,145		76,298		161,799
Operating		66,248		—		14,822		(8)		19,617		83,136		234,223		418,038
Renting		8,437		—		7,046		—		3,212		10,591		14,812		44,098
Repairs and Maintenance		34,939		3,180		29,226		—		28,777		172,036		442,881		711,039
Taxes and Insurance		66,641		15,518		43,744		4,712		37,950		130,695		610,745		910,005
		318,568		26,632		204,389		7,314		189,539		711,512		2,369,921		3,827,875
Income Before Other Income		335		62,637		163,737		18,438		116,036		210,823		1,302,030		1,874,036
Other Income (Loss)
Interest Expense		(79,158)		—		(87,963)		—		(59,390)		(189,421)		(1,271,425)		(1,687,357)
Other Income		—		—		—		—		—		—		—		—
		(79,158)		—		(87,963)		—		(59,390)		(189,421)		(1,271,425)		(1,687,357)
Net Income (Loss)	$	(78,823)	$	62,637	$	75,774	$	18,438	$	56,646	$	21,402	$	30,605	$	186,679
Net Income (Loss)—NERA 50%	$	(39,411)	$	31,319	$	37,888	$	9,219	$	28,324	$	10,702				78,041
Net Income —NERA 40%													$	12,242		12,242
															$	90,283

NOTE 16. EMPLOYEE BENEFIT 401(k) PLANS

Employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”).  Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. 

The amounts contributed by employees are immediately vested and non-forfeitable. The Partnership matches 50% up to 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year.  Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the six months ended June 30, 2023 was $32,000.

NOTE 17. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

There have been no new accounting pronouncements applicable to the Partnership that would have a material impact on the Partnership’s consolidated financial statements.

NOTE 18. SUBSEQUENT EVENTS

From July 1, 2023, through August 8, 2023, the Partnership has purchased 1,554 Depository Receipts. The average price was $72.80 per receipt, or $2,183.89 per unit. The total cost was $113,476. The Partnership is required to purchase 12 Class B units and 1 General Partnership units at a cost of $26,906 and $1,416, respectively.

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On July 14, 2023, the partnership purchased a 52 unit residential property in the South End neighborhood of Boston, MA comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, for a purchase price of approximately $27,500,000 with Partnership cash reserves.

On August 3, 2023, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on September 30, 2023.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

Certain information contained herein includes forward looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Liquidation Reform Act of 1995 (the “Act”). Forward looking statements in this report, or which management may make orally or in written form from time to time, reflect management’s good faith belief when those statements are made, and are based on information currently available to management. Caution should be exercised in interpreting and relying on such forward looking statements, the realization of which may be impacted by known and unknown risks and uncertainties, events that may occur subsequent to the forward looking statements, and other factors which may be beyond the Partnership’s control and which can materially affect the Partnership’s actual results, performance or achievements for 2023 and beyond. Should one or more of the risks or uncertainties mentioned below materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update our forward looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

Over a period of time both in 2021 and 2022, the Partnership took advantage of the low interest rate environment and refinanced fifteen properties, increased their loan balances, and raised approximately $130,000,000. With interest rates rising, and a threat of an economic slowdown, the Partnership increased the debt level and built cash reserves to acquire additional properties when opportunities become available. Currently, $68,000,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 4.4% and 5.0% and approximately $40,000,000 is in a Money Market mutual fund currently earning approximately 5.13%.

Since the Partnership’s long-term goals include the acquisition of additional properties, a portion of the proceeds from the refinancing and sale of properties is reserved for this purpose. If available acquisitions do not meet the Partnership’s investment criteria, the Partnership may purchase additional depositary receipts. The Partnership will consider refinancing existing properties if the Partnership’s cash reserves are insufficient to repay existing mortgages or if the Partnership needs additional funds for future acquisitions.

On July 14, 2023, the partnership purchased a 52 unit residential property in the South End neighborhood of Boston, MA comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, for a purchase price of approximately $27,500,000 with Partnership cash reserves.

The vacancy rate for the Partnership’s residential properties as of August 1, 2023 was 1.8% as compared with a vacancy rate of 2.0% as of August 1, 2022. The vacancy rate for the Joint Venture properties as of August 1, 2023 was 1.3 %, as compared to 0.9% for the same period last year. The current vacancy rates are in line with those experienced prior to the Pandemic.

Residential tenants generally have lease terms of 12 months. The majority of these leases will mature during the second and third quarters of the year.

During the second quarter of 2023, rents increased an average of 6.8% for renewals and increased an average of 7.8% for new leases. For the balance of 2023, management expects a strong rental market with continued rent growth.

For the second quarter of 2023, consolidated revenue increased by 6.9%, operating expenses increased by 8.5% and Income before Other Income (Expense) increased by 2.8%, as compared to the second quarter of 2022.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

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On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period was phased out by December 31, 2022. During the modification period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million. As of June 30, 2023, the portfolio’s debt yield fell below the minimum of 9.5% to 8.5%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is unable to draw down any amount from the line of credit until the Partnership meets the required financial covenants.

From the start of the Stock Repurchase Program in 2007 through June 30, 2023, the Partnership has purchased 1,502,734 Depositary Receipts. During the six months ended June 30, 2023, the Partnership purchased a total of 14,274 Depositary Receipts.

At August 1, 2023, the Harold Brown related entities and Ronald Brown collectively own approximately 31.8% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members). Harold Brown related entities also control 75% of the Partnership’s Class B Units, and 75% of the capital stock of NewReal, Inc. (“NewReal”), the Partnership’s sole general partner. Ronald Brown also owns 25% of the Partnership’s Class B Units and 25% of NewReal’s capital stock. In addition, Ronald Brown is the President and director of NewReal and Jameson Brown is NewReal’s Treasurer and a director. The 75% of the issued and outstanding Class B units of the Partnership are owned by HBC Holdings LLC, an entity of which Jameson Brown is the manager. The outstanding stock of The Hamilton Company, Inc. is controlled by Jameson Brown and Harley Brown. The 75% of the issued and outstanding capital stock of NewReal, is owned by the Harold Brown 2013 Revocable Trust (the “2013 Trust”), an entity of which Sally Michaels and David Reier are the trustees.

In addition to the Management Fee, the Partnership Agreement further provides for the employment of outside professionals to provide services to the Partnership and allows NewReal to charge the Partnership for the cost of employing professionals to assist with the administration of the Partnership’s properties. Additionally, from time to time, the Partnership pays Hamilton for repairs and maintenance services, legal services, construction services and accounting services. The costs charged by Hamilton for these services are at the same hourly rate charged to all entities managed by Hamilton, and management believes such rates are competitive in the marketplace.

Residential tenants sign a one year lease. During the six months ended June 30, 2023, tenant renewals were approximately 78% with an average rental increase of approximately 6.6%, new leases accounted for approximately 22% with rental rate increases of approximately 8.6%. During the six months ended June 30, 2023, leasing commissions were approximately $197,000 compared to approximately $156,000 for the six months ended June 30, 2022, an increase of approximately $41,000 (26.3%). Tenant concessions were approximately $39,000 for the six months ended June 30, 2023, compared to approximately $24,000 for the six months ended June 30, 2022, an increase of approximately $15,000 (62.5%). Tenant improvements were approximately $4,866,000 for the six months ended June 30, 2023, compared to approximately $1,089,000 for the six months ended June 30, 2022, an increase of approximately $3,777,000 (346.8%).

Hamilton accounted for approximately 2.5% of the repair and maintenance expenses paid for by the Partnership during the six months ended June 30, 2023 and 2.8% during the six months ended June 30, 2022. Of the funds paid to Hamilton for this purpose, the great majority was to cover the cost of services provided by the Hamilton maintenance department, including plumbing, electrical, carpentry services, and snow removal for those properties close to Hamilton’s headquarters. Several of the larger Partnership properties have their own maintenance staff. Those properties that do not have their own maintenance staff and are located more than a reasonable distance from Hamilton’s headquarters in Allston, Massachusetts are generally serviced by local, independent companies.

Hamilton’s legal department handles most of the Partnership’s eviction and collection matters. Additionally, it prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale transactions. Overall, Hamilton provided approximately $108,000 (97.1%) and approximately $107,000 (81.6%) of the legal services paid for by the Partnership during the six months ended June 30, 2023 and 2022 respectively.

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Additionally, as described in Note 3 to the consolidated financial statements, The Hamilton Company receives similar fees from the Investment Properties.

The Partnership requires that three bids be obtained for construction contracts in excess of $15,000. Hamilton may be one of the three bidders on a particular project and may be awarded the contract if its bid and its ability to successfully complete the project are deemed appropriate. For contracts that are not awarded to Hamilton, Hamilton charges the Partnership a construction supervision fee equal to 5% of the contract amount. Hamilton’s architectural department also provides services to the Partnership on an as-needed basis. During the six months ended June 30, 2023, Hamilton provided the Partnership approximately $521,000 in construction and architectural services, compared to approximately $42,000 for the six months ended June 30, 2022.

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the six months ended June 30, 2023 and 2022, Hamilton charged the Partnership $62,500 for bookkeeping and accounting services. For more information on related party transactions, see Note 3 to the Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of the consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America, requires the Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The Partnership regularly and continually evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties and its investments in and advances to joint ventures. The Partnership bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgment. The Partnership’s critical accounting policies are those which require assumptions to be made about such matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances. See Note 1 to the Consolidated Financial Statements, Principles of Consolidation.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

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Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

If circumstances arise that previously were considered unlikely and, as a result, the Partnership decides not to sell a property previously classified as held for sale, the property is reclassified as held and used. A property that is reclassified is measured and recorded individually at the lower of (a) its carrying value before the property was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the property been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Intangible assets acquired include amounts for in-place lease values above and below market leases and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties may be impaired. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

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Investments in Treasury Bills: Investments in Treasury Bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income.

Investments in Joint Ventures: The Partnership accounts for its 40%-50% ownership in the Investment Properties under the equity method of accounting, as it exercises significant influence over, but does not control these entities. These investments are recorded initially at cost, as Investments in Joint Ventures, and subsequently adjusted for the Partnership’s share in earnings, cash contributions and distributions. Under the equity method of accounting, our net equity is reflected on the consolidated balance sheets, and our share of net income or loss from the Partnership is included on the consolidated statements of income. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

With respect to investments in and advances to the Investment Properties, the Partnership looks to the underlying properties to assess performance and the recoverability of carrying amounts for those investments in a manner similar to direct investments in real estate properties. An impairment charge is recorded if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property.

Legal Proceedings: The Partnership is subject to various legal proceedings and claims that arise, from time to time, in the ordinary course of business. These matters are frequently covered by insurance. If it is determined that a loss is likely to occur, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered likely can be difficult to determine.

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RESULTS OF OPERATIONS

Three Months Ended June 30, 2023 and June 30, 2022

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $4,738,000 during the three months ended June 30, 2023, compared to approximately $4,611,000 for the three months ended June 30, 2022, an increase of approximately $127,000 (2.8%).

The rental activity is summarized as follows:

	Occupancy Date
	August 1, 2023		August 1, 2022
Residential
Units	2,911		2,911
Vacancies	51		58
Vacancy rate	1.8	%	2.0	%
Commercial
Total square feet	128,635		108,043
Vacancy	1,461		20,274
Vacancy rate	1.3	%	18.8	%

	Rental Income (in thousands)
	Three Months Ended June 30,
	2023						2022
	Total			Continuing			Total			Continuing
	Operations			Operations			Operations			Operations
Total rents	$	17,965		$	17,965		$	16,826		$	16,826
Residential percentage		94	%		94	%		94	%		95	%
Commercial percentage		6	%		6	%		6	%		5	%
Contingent rentals	$	180		$	180		$	263		$	263

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Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022:

	Three Months Ended June 30,				Dollar		Percent
	2023		2022		Change		Change
Revenues
Rental income	$	17,964,963	$	16,825,737	$	1,139,226	6.8%
Laundry and sundry income		136,073		106,191		29,882	28.1%
		18,101,036		16,931,928		1,169,108	6.9%
Expenses
Administrative		867,721		623,877		243,844	39.1%
Depreciation and amortization		3,961,432		4,076,597		(115,165)	(2.8%)
Management fee		665,073		672,370		(7,297)	(1.1)%
Operating		1,721,233		1,522,250		198,983	13.1%
Renting		244,434		150,943		93,491	61.9%
Repairs and maintenance		3,479,071		2,974,734		504,337	17.0%
Taxes and insurance		2,423,722		2,300,235		123,487	5.4%
		13,362,686		12,321,006		1,041,680	8.5%
Income Before Other Income (Expense)		4,738,350		4,610,922		127,428	2.8%
Other Income (Expense)
Interest income		1,199,643		32		1,199,611	3748784.4%
Interest expense		(3,925,863)		(3,623,714)		(302,149)	8.3%
Income from investments in unconsolidated joint ventures		119,664		90,283		29,381	32.5%
Other Income (Expense)		92,810		(834,538)		927,348	100.0%
		(2,513,746)		(4,367,937)		1,854,191	(42.5%)
Net Income	$	2,224,604	$	242,985	$	1,981,619	815.5%

Rental income for the three months ended June 30, 2023 was approximately $17,965,000, compared to approximately $16,826,000 for the three months ended June 30, 2022, an increase of approximately $1,139,000 (6.8%). Excluding Walgreen’s revenue of approximately $202,000 at 653 Worcester Road, there was an increase of approximately $937,000 (5.6%).

The Partnership properties with the largest increases in rental income include 1144 Commonwealth, Westgate Apartments, Woodland Park, Hamilton Green, and 140 North Beacon, with increases of $218,000, $107,000, $92,000, $84,000 and $74,000 respectively. Included in rental income is contingent rentals collected on commercial properties. Contingent rentals include such charges as bill backs of common area maintenance charges, real estate taxes, and utility charges.

Operating expenses for the three months ended June 30, 2023 were approximately $13,363,000 compared to approximately $12,321,000 for the three months ended June 30, 2022, an increase of approximately $1,042,000 (8.5%). Excluding the increase in expenses at 653 Worcester Road of approximately $300,000, operating expenses increased approximately $742,000 (6.0%). The factors contributing to the increase are an increase in repairs and maintenance of approximately $504,000 (17.0%), an increase in administrative expenses of approximately $244,000 (39.1%), and an increase in operating costs of approximately $199,000 (13.1%), partially offset by a decrease in depreciation and amortization expenses of approximately $115,000 (2.8%) due to fully depreciated assets.

Interest expense for the three months ended June 30, 2023 was approximately $3,926,000 compared to approximately $3,624,000 for the three months ended June 30, 2022, an increase of approximately $302,000 (8.3%). The increase is due to the refinancing of properties, increasing the amount of the debt, which increased the interest expense for the period.

Interest income for the three months ended June 30, 2023 was approximately $1,200,000 compared to approximately $0 for the three months ended June 30, 2022, an increase of approximately $1,200,000. The increase is due to investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 4.4% to 4.64%.

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At June 30, 2023, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties. See a description of these properties included in the section titled Investment Properties as well as Note 15 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $119,000 for the three months ended June 30, 2023, compared to net income of approximately $90,000 for the three months ended June 30, 2022, an increase in income of approximately $29,000 (32.5%). This increase is primarily due to an increase in rental revenue to approximately $2,711,000 from $2,471,000, an increase of approximately $240,000 (9.7%) for the three months ended June 30, 2023 compared to the three months ended June 30, 2022. Included in the income for the three months ended June 30, 2023 is depreciation and amortization expense of approximately $645,000.

As a result of the changes discussed above, net income for the three months ended June 30, 2023 was approximately $2,225,000 compared to net income of approximately $243,000 for the three months ended June 30, 2022, an increase in income of approximately $1,982,000 (815.5%).

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Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022:

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, and other expense of approximately $9,190,000 during the six months ended June 30, 2023, compared to approximately $8,388,000 for the six months ended June 30, 2022, an increase of approximately $802,000 (9.6%).

	Six Months Ended June 30,				Dollar		Percent
	2023		2022		Change		Change
Revenues
Rental income	$	35,533,690	$	33,285,743	$	2,247,947	6.8%
Laundry and sundry income		259,032		226,593		32,439	14.3%
		35,792,722		33,512,336		2,280,386	6.8%
Expenses
Administrative		1,604,822		1,331,663		273,159	20.5%
Depreciation and amortization		7,807,693		8,097,365		(289,672)	(3.6%)
Management fee		1,362,837		1,345,454		17,383	1.3%
Operating		4,255,029		4,198,458		56,571	1.3%
Renting		436,019		320,332		115,687	36.1%
Repairs and maintenance		6,241,845		5,254,385		987,460	18.8%
Taxes and insurance		4,894,401		4,576,808		317,593	6.9%
		26,602,646		25,124,465		1,478,181	5.9%
Income Before Other Income ( Expense)		9,190,076		8,387,871		802,205	9.6%
Other Income (Expense)
Interest income		2,174,177		61		2,174,116	3564124.6%
Interest (expense)		(7,825,103)		(7,078,349)		(746,754)	10.5%
Income from investments in unconsolidated joint ventures		347,368		110,351		237,017	214.8%
Other (Expense) Income		92,823		(834,533)		927,356	100.0%
		(5,210,735)		(7,802,470)		2,591,735	(33.2%)
Net Income	$	3,979,341	$	585,401	$	3,393,940	579.8%

Rental income for the six months ended June 30, 2023 was approximately $35,533,000, compared to approximately $33,285,000 for the six months ended June 30, 2022, an increase of approximately $2,248,000 (6.8%). Excluding revenues from 653 Worcester Road of approximately $350,000, revenue increases approximately $1,898,000(5.7%). Included in rental income is contingent rentals collected on commercial properties. The Partnership properties with the largest increases in rental income include 62 Boylston, 1144 Commonwealth, Westgate Apartments, Woodland Park, and Hamilton Green, with increases of $413,000, $403,000, $236,000, $160,000 and $151,000 respectively. Included in rental income is contingent rentals collected on commercial properties. Contingent rentals include such charges as bill backs of common area maintenance charges, real estate taxes, and utility charges.

Operating expenses for the six months ended June 30, 2023 were approximately $26,603,000 compared to approximately $25,124,000 for the six months ended June 30, 2022, an increase of approximately $1,478,000 (5.9%), Excluding operating costs for 653 Worcester Road of approximately $610,000, operating expenses increased approximately $868,000 (3.5%).The factors contributing to this net increase are an increase in repairs and maintenance expenses of approximately $987,000 (18.8%), an increase in taxes and insurance of approximately $318,000 (6.9%), and an increase in administrative expenses of approximately $273,000 (20.5%), partially offset by a decrease in depreciation and amortization of approximately $290,000 (3.6%).

Interest expense for the six months ended June 30, 2023 was approximately $7,825,000 compared to approximately $7,078,000 for the six months ended June 30, 2022, an increase of approximately $747,000 (10.5%). The increase is due to the refinancing of properties, increasing the amount of debt, which increased the interest expense for the period.

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At June 30, 2023, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties. See a description of these properties included in the section titled Investment Properties as well as Note 15 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $347,000 for the six months ended June 30, 2023, compared to net income of approximately $110,000 for the six months ended June 30, 2022, an increase in income of approximately $237,000 (214.8%). This increase is primarily due to an increase in rental revenue of approximately $ 5,397,000 for the six months ended June 30, 2023 from approximately $4,901,000 for the six months ended June 30, 2022, an increase of approximately $496,000 (10.1%). Included in the income for the six months ended June 30, 2023 is depreciation and amortization expense of approximately $1,285,000.

On November 30, 2021, the Partnership entered into a Master Credit Facility Agreement (the “Facility Agreement”) with KeyBank National Association (“KeyBank”) dated as of November 30, 2021, with an initial advance in the amount of $156,000,000. Interest only on the debt at a fixed interest rate of 2.97% is payable on a monthly basis through December 31, 2031.

On June 16, 2022, the Partnership entered into an amendment to the Facility Agreement. The additional advance under the Amended Agreement is in the amount of $80,284,000, at a fixed interest rate of 4.33%. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings.

The Partnership used the proceeds to pay down approximately $37,065,000 of existing debt secured by four properties, along with approximately $854,000 in prepayment penalties, which are included in other expenses. The remaining balance of approximately $42,384,000 will be used for general partnership purposes.

As a result of the changes discussed above, net income for the six months ended June 30, 2023 was approximately $3,979,000 compared to income of approximately $585,000 for the six months ended June 30, 2022, an increase in net income of approximately $3,394,000 (579.8%).

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LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during the first six months of 2023 was the collection of rents and for 2022 was the proceeds from the refinancing of 5 properties for approximately $43,000,000, interest income generated from the purchase of Treasury Bills, and the collection of rents. The Partnership’s principal use of cash during the first six months of 2023 was the purchase of Treasury Bills and the purchase of the commercial property at 653 Worcester Road for approximately $10,000,000. The majority of cash and cash equivalents of $55,700,166 at June 30, 2023 and $49,560,723 at December 31, 2022 were held in interest bearing accounts at creditworthy financial institutions.

The increase in cash of $6,139,443 for the six months ended June 30, 2023 is summarized as follows:

	Six Months Ended June 30,
	2023		2022
Cash provided by operating activities	$	8,167,083	$	7,452,286
Cash provided by (used in) investing activities		7,712,071		(978,339)
Cash (used in) provided by financing activities		(1,321,579)		40,739,128
Repurchase of Depositary Receipts, Class B and General Partner Units		(1,289,374)		(3,688,961)
Distributions paid		(7,128,758)		(6,976,595)
Net (decrease) increase in cash and cash equivalents	$	6,139,443	$	36,547,519

The change in cash provided by operating activities is due to various factors, including a change in depreciation expense, a change in income and distribution from joint ventures, and other factors. The decrease in cash used in investing activities is as follows: the Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000. This acquisition was funded from the Partnership’s cash reserves. Closing costs were approximately $59,000. From the purchase price, the Partnership allocated approximately $585,000 to in-place leases, and approximately $378,000 to the value of tenant relationships; improvements to rental properties, and the purchase of Treasury Bills. The change in cash used in financing activities is the pay down of mortgages, the repurchase of depositary receipts, and distributions paid.

During 2023, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $4,866,000. These improvements were funded from cash reserves. Cash reserves have been adequate to fully fund improvements. The most significant improvements were made at Hamilton Oaks, 1144 Commonwealth School Street, Hamilton Green, Lincoln Street, and 62 Boylston Street at a cost of approximately $1,203,000, $1,093,000, $395,000, $233,000, $208,000 and $202,000 respectively.

During the six months ended June 30, 2023, the Partnership received distributions of approximately $1,634,000 from the investment properties. For the six months ended June 30, 2022, the Partnership received $1,208,000 in distributions from the investment properties. Included in these net distributions is the amount from Dexter Park of approximately $920,000 and $840,000 for the six months ended June 30, 2023 and 2022, respectively.

In May 2023, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), which was paid on June 30, 2023. In addition to the quarterly distribution, there was a special distribution of $38.40 per Class A unit ($1.28 per Receipt) payable on March 31, 2023.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017 and was extended until October 31, 2020. The costs associated with the line of credit extension in 2017 were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension. The Partnership agreed to terms with the lender on October 29, 2021, to extend the line of credit until October 29, 2024. On December 3, 2021, the Partnership paid off the line.

The Partnership anticipates that cash from operations will be sufficient to fund its current operations, pay distributions, make required debt payments and finance current improvements to its properties. The Partnership may also

38

sell or refinance properties. The Partnership’s net income and cash flow may fluctuate dramatically from year to year as a result of the sale or refinancing of properties, property improvements, increases or decreases in rental income or expenses, or the loss of significant tenants.

Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of June 30, 2023, the Partnership had a 40%-50% ownership interest in seven Joint Ventures, five of which have mortgage indebtedness. We do not have control of these partnerships and therefore we account for them using the equity method of consolidation. At June 30, 2023, our proportionate share of the non-recourse debt related to these investments was approximately $70,750,000. See Note 15 to the Consolidated Financial Statements.

Contractual Obligations

As of June 30, 2023, we are subject to contractual payment obligations as described in the table below.

				Payments due by period
		2024		2025		2026		2027		2028		Thereafter		Total
Contractual Obligations
Long -term debt
Mortgage debt	$	3,061,756		3,577,671		21,956,600		6,620,519		23,220,503		354,366,604	$	412,803,653
Total Contractual Obligations	$	3,061,756	$	3,577,671	$	21,956,600	$	6,620,519	$	23,220,503	$	354,366,604	$	412,803,653

*Excluding unamortized deferred financing costs

We have various standing or renewable service contracts with vendors related to our property management. In addition, we have certain other contracts we enter into in the ordinary course of business that may extend beyond one year. These contracts are not included as part of our contractual obligations because they include terms that provide for cancellation with insignificant or no cancellation penalties.

See Notes 5 and 15 to the Consolidated Financial Statements for a description of mortgage notes payable. The Partnerships has no other material contractual obligations to be disclosed.

Factors That May Affect Future Results

Along with risks detailed in Item 1A of the Partnership’s Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission on March 13, 2023 and from time to time in the Partnership’s other filings with the Securities and Exchange Commission, some factors that could cause the Partnership’s actual results, performance or achievements to differ materially from those expressed or implied by forward looking statements include but are not limited to the following:

● The Partnership depends on the real estate markets where its properties are located, primarily in Eastern Massachusetts, and these markets may be adversely affected by local economic market conditions, which are beyond the Partnership’s control.

● The Partnership is subject to the general economic risks affecting the real estate industry, such as dependence on tenants’ financial condition, the need to enter into new leases or renew leases on terms favorable to tenants in order to generate rental revenues and our ability to collect rents from our tenants.

● The Partnership is also impacted by changing economic conditions making alternative housing arrangements more or less attractive to the Partnership’s tenants, such as the interest rates on single family home mortgages and the availability and purchase price of single family homes in the Greater Boston metropolitan area.

● The Partnership is subject to significant expenditures associated with each investment, such as debt service payments, real estate taxes, insurance and maintenance costs, which are generally not reduced when circumstances cause a reduction in revenues from a property.

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● The Partnership is subject to increases in heating and utility costs that may arise as a result of economic and market conditions and fluctuations in seasonal weather conditions.

● Civil disturbances, earthquakes and other natural disasters may result in uninsured or underinsured losses.

● Actual or threatened terrorist attacks may adversely affect our ability to generate revenues and the value of our properties.

● Financing or refinancing of Partnership properties may not be available to the extent necessary or desirable, or may not be available on favorable terms.

● The Partnership properties face competition from similar properties in the same market. This competition may affect the Partnership’s ability to attract and retain tenants and may reduce the rents that can be charged.

● Given the nature of the real estate business, the Partnership is subject to potential environmental liabilities. These include environmental contamination in the soil at the Partnership’s or neighboring real estate, whether caused by the Partnership, previous owners of the subject property or neighbors of the subject property, and the presence of hazardous materials in the Partnership’s buildings, such as asbestos, lead, mold and radon gas. Management is not aware of any material environmental liabilities at this time.

● Insurance coverage for and relating to commercial properties is increasingly costly and difficult to obtain. In addition, insurance carriers have excluded certain specific items from standard insurance policies, which have resulted in increased risk exposure for the Partnership. These include insurance coverage for acts of terrorism and war, and coverage for mold and other environmental conditions. Coverage for these items is either unavailable or prohibitively expensive.

● Market interest rates could adversely affect market prices for Class A Partnership Units and Depositary Receipts as well as performance and cash flow.

● Changes in income tax laws and regulations may affect the income taxable to owners of the Partnership. These changes may affect the after-tax value of future distributions.

● The Partnership may fail to identify, acquire, construct or develop additional properties; may develop or acquire properties that do not produce a desired or expected yield on invested capital; may be unable to sell poorly- performing or otherwise undesirable properties quickly; or may fail to effectively integrate acquisitions of properties or portfolios of properties.

● Risk associated with the use of debt to fund acquisitions and developments.

● Competition for acquisitions may result in increased prices for properties.

● Any weakness identified in the Partnership’s internal controls as part of the evaluation being undertaken could have an adverse effect on the Partnership’s business.

● Ongoing compliance with Sarbanes-Oxley Act of 2002 may require additional personnel or systems changes.

The foregoing factors should not be construed as exhaustive or as an admission regarding the adequacy of disclosures made by the Partnership prior to the date hereof or the effectiveness of said Act. The Partnership expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates and equity prices. In pursuing its business plan, the primary market risk to which the Partnership is exposed is interest rate risk. Changes in the general level of interest rates prevailing in the financial markets may affect the spread between the Partnership’s yield on invested assets and cost of funds and, in turn, its ability to make distributions or payments to its investors.

As of June 30, 2023, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have approximately $579,303,000 in long-term debt, substantially all of which require payment of interest at fixed rates. Accordingly, the fair value of these debt instruments is affected by changes in market interest rates. This long term debt matures through 2035. The Partnership, its Subsidiary Partnerships and the Investment Properties collectively have variable rate debt of $10,000,000 (without taking out unamortized deferred financing costs) as of June 30, 2023. Interest rates ranged from LIBOR plus 218 basis points to LIBOR plus 300 basis points. Assuming interest-rate caps are not in effect, if market rates of interest on the Partnership’s variable rate debt increased or decreased by 100 basis points, then the increase or decrease in interest costs on the Partnership’s variable rate debt would be approximately $50,000 annually and the increase or decrease in the fair value of the Partnership’s fixed rate debt as of June 30, 2023 would be approximately $27,650,000. For information regarding the fair value and maturity dates of these debt obligations, See Note 5 to the Consolidated Financial Statements — “Mortgage Notes Payable,” Note 12 to the Consolidated Financial Statements — “Fair Value Measurements” and Note 15 to the Consolidated Financial Statements — “Investment in Unconsolidated Joint Ventures”.

For additional disclosure about market risk, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors That May Affect Future Results”.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures. The Partnership’s management, with the participation of the Partnership’s principal executive officer and principal financial officer, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Partnership’s principal executive officer and principal financial officer have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Partnership in the reports that it files or submits under the Exchange Act.

We previously identified material weaknesses in our IT control and related procedures that support financial reporting as of December 31, 2022, due to control deficiencies related to a threat actor ransomware attack that delayed the filing of our 3rd quarter 10-Q. We updated our internal controls to remediate our control deficiencies by designing and implementing controls to mitigate the risks previously not addressed in our control environment. These remediation measures included redesigning and enhancing controls over the monitoring of user access rights, implementation of least privileged access and implementation of enhanced security configuration software. We completed our testing and evaluation of our internal control over financial reporting as of June 30, 2023 and determined that as of June 30, 2023, our internal control over financial reporting was designed and operating effectively for a sufficient period for management to conclude that the material weaknesses have been remediated.

Limitations on Effectiveness of Controls. Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Our internal control system is designed to provide reasonable assurance regarding the preparation and fair presentation of our financial statements for external purposes in accordance with GAAP. All internal control systems, no matter how well designed, have inherent limitations and can provide only reasonable assurance that the objectives of the internal control system are met.

Changes in Internal Control over Financial Reporting., There were no other changes in the Management Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph

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(d) of Exchange Act Rule 13a-15 that occurred during the quarter ended June 30, 2023 that have materially affected or are reasonably likely to materially affect, the Management Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings, other than ordinary routine litigation incidental to its business, to which the Partnership is a party to or to which any of the Properties is subject.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors in Item 1A, “Risk Factors” in our annual report on Form 10K for the year ended December 31, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None

(b) None

(c) Issuer Purchase of Equity Securities during the second quarter of 2023:

				Remaining number
			Depositary Receipts	of Depositary Receipts
			Purchased as Part	that may be purchased
	Average		of Publicly	Under the Plan
Period	Price Paid		Announced Plan	(as Amended)
April 1-30, 2023	$	71.99	413	500,776
May 1-31, 2023	$	69.15	2,138	498,638
June 1-30, 2023	$	71.00	1,374	497,264
Total			3,925

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through June 30, 2023, the Partnership has repurchased 1,502,734 Depositary Receipts at an average price of $30.54 per receipt (or $916.20 per underlying Class A Unit), 4,160 Class B Units and 219 General Partnership Units, both at an average price of $1,209.00 per Unit, totaling approximately $51,785,000 including brokerage fees paid by the Partnership.

During the six months ended June 30, 2023, the Partnership purchased a total of 14,274 Depositary Receipts. The average price was $72.20 per receipt or $2,165.91 per unit. The cost including commission was $1,031,739. The Partnership was required to repurchase 113 Class B Units and 6 General Partnership units at a cost of $244,753 and $12,882 respectively.

Item 3. Defaults Upon Senior Securities

None.

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Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

See the exhibit index below.

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
(31.1)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership).
(31.2)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Jameson Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(32.1)	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership) and Jameson Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(101.1)	The following financial statements from New England Realty Associates Limited Partnership Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline XBRL (eXtensible Business Property Language: (i) Consolidated Balance Sheets, (unaudited) (ii) Consolidated Statements of Income, (unaudited) (iii) Consolidated Statements of Changes in Partners’ Capital, (unaudited) (iv) Consolidated Statements of Cash Flows, (unaudited) and (v) Notes to Consolidated Financial Statements, (unaudited) (filed herewith).
(104)	Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
By:	/s/ NEWREAL, INC.
	Its General Partner
By:	/s/ RONALD BROWN
	Ronald Brown, President
Dated: August 8, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ RONALD BROWN	President and Director of the General Partner	August 8, 2023
Ronald Brown	(Principal Executive Officer)
/s/ JAMESON BROWN	Treasurer and Director of the General Partner	August 8, 2023
Jameson Brown	(Principal Financial Officer and Principal Accounting Officer)
/s/ MARTINA ALIBRANDI	Director of the General Partner	August 8, 2023
Martina Alibrandi
/s/ DAVID ALOISE	Director of the General Partner	August 8, 2023
David Aloise
/s/ ANDREW BLOCH	Director of the General Partner	August 8, 2023
Andrew Bloch
/s/ SALLY MICHAEL	Director of the General Partner	August 8, 2023
Sally Michael
/s/ DAVID REIER	Director of the General Partner	August 8, 2023
David Reier

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EX-31.1

Exhibit 31.1

New England Realty Associates Limited Partnership

CERTIFICATION

I, Ronald Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ RONALD BROWN
	Principal Executive Officer (President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2023

EX-31.2

Exhibit 31.2

New England Realty Associates Limited Partnership

CERTIFICATIONS

I, Jameson Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ JAMESON BROWN
	Principal Financial Officer
	(Treasurer and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2023

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of New England Realty Associates Limited Partnership for the six months ended June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald Brown, as President and Director of the Partnership’s General Partner, NewReal, Inc., and Jameson Brown, the Treasurer and a Director of the Partnership’s General Partner, NewReal, Inc., each hereby certifies, pursuant to 18.U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

	/s/ Ronald Brown
	Ronald Brown
	Principal Executive Officer
	(President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2023
	/s/ Jameson Brown
	Jameson Brown
	Principal Financial Officer
	(Treasurer and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: August 8, 2023

This certification accompanies each Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Partnership for purposes of §18 of the Security Exchange Act of 1934, as amended.

A signed original of this written statement required by §906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 08, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	001-31568
Entity Registrant Name	New England Realty Associates Limited Partnership
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2619298
Entity Address, Address Line One	39 Brighton Avenue
Entity Address, City or Town	Allston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02134
City Area Code	617
Local Phone Number	783-0039
Title of 12(b) Security	Class A
Trading Symbol	NEN
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000746514
Amendment Flag	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		94,877
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,533

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CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Rental Properties	$ 247,450,840	$ 241,076,431
Cash and Cash Equivalents	55,700,166	49,560,723
Rents Receivable	769,712	655,814
Real Estate Tax Escrows	2,149,919	1,943,680
Investment in U.S. Treasury Bills and Money Market mutual fund	68,355,526	88,332,133
Prepaid Expenses and Other Assets	11,075,437	8,814,112
Investments in Unconsolidated Joint Ventures	1,435,154	1,437,387
Total Assets	386,936,754	391,820,280
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	409,834,512	410,966,199
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture	25,963,031	24,419,129
Accounts Payable and Accrued Expenses	5,567,224	7,271,729
Advance Rental Payments and Security Deposits	9,878,020	9,032,580
Total Liabilities	451,242,787	451,689,637
Commitments and Contingent Liabilities (Notes 3 and 9)
Partners' Capital 118,661 and 119,255 units outstanding in 2023 and 2022 respectively	(64,306,033)	(59,869,357)
Total Liabilities and Partners' Capital	$ 386,936,754	$ 391,820,280

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Partners' Capital, units outstanding	118,661	119,255	119,942	121,516

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CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues
Rental income	$ 17,964,963	$ 16,825,737	$ 35,533,690	$ 33,285,743
Laundry and sundry income	136,073	106,191	259,032	226,593
Total Revenues	18,101,036	16,931,928	35,792,722	33,512,336
Expenses
Administrative	867,721	623,877	1,604,822	1,331,663
Depreciation and amortization	3,961,432	4,076,597	7,807,693	8,097,365
Management fee	665,073	672,370	1,362,837	1,345,454
Operating	1,721,233	1,522,250	4,255,029	4,198,458
Renting	244,434	150,943	436,019	320,332
Repairs and maintenance	3,479,071	2,974,734	6,241,845	5,254,385
Taxes and insurance	2,423,722	2,300,235	4,894,401	4,576,808
Total Expenses	13,362,686	12,321,006	26,602,646	25,124,465
Income Before Other Income (Expense)	4,738,350	4,610,922	9,190,076	8,387,871
Other Income (Expense)
Interest income	1,199,643	32	2,174,177	61
Interest expense	(3,925,863)	(3,623,714)	(7,825,103)	(7,078,349)
Income (loss) from investments in unconsolidated joint ventures	119,664	90,283	347,368	110,351
Other (expenses)	92,810	(834,538)	92,823	(834,533)
Total Other Income (Expense)	(2,513,746)	(4,367,937)	(5,210,735)	(7,802,470)
Net Income	$ 2,224,604	$ 242,985	$ 3,979,341	$ 585,401
Income per Unit
Net Income per Unit	$ 18.73	$ 2.02	$ 33.45	$ 4.84
Weighted Average Number of Units Outstanding	118,764	120,528	118,971	120,885

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 2,224,604	$ 242,985	$ 3,979,341	$ 585,401
Other comprehensive income (loss):
Net unrealized gain on derivative instruments for interest rate swaps	168,002		2,115	0
Comprehensive income (loss)	$ 2,392,606	$ 242,985	$ 3,981,456	$ 585,401

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CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER'S CAPITAL - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Partners' Capital
Balance			$ (59,869,357)	$ (49,292,607)
Balance (in units)			119,255	121,516
Distribution to Partners			$ (7,128,758)	$ (6,976,595)
Stock Buyback			$ (1,289,374)	$ (3,688,961)
Stock Buyback (in units)			(594)	(1,574)
Net income (loss)	$ 2,224,604	$ 242,985	$ 3,979,341	$ 585,401
Net unrealized gain on derivative instruments for interest rate swaps	168,002		2,115	0
Balance	$ (64,306,033)	$ (59,372,762)	$ (64,306,033)	$ (59,372,762)
Balance (in units)	118,661	119,942	118,661	119,942
Accumulated Comprehensive
Increase (Decrease) in Partners' Capital
Balance			$ 294,931
Net unrealized gain on derivative instruments for interest rate swaps			2,115
Balance	$ 297,046		$ 297,046
Subtotal
Increase (Decrease) in Partners' Capital
Balance (in units)			180,225	180,225
Balance (in units)	180,225	180,225	180,225	180,225
Class A
Increase (Decrease) in Partners' Capital
Balance			$ (48,160,462)	$ (39,462,357)
Balance (in units)			144,180	144,180
Distribution to Partners			$ (5,703,006)	$ (5,581,276)
Stock Buyback			(1,031,739)	(2,951,569)
Net income (loss)			3,183,473	468,321
Balance	$ (51,711,734)	$ (47,526,881)	$ (51,711,734)	$ (47,526,881)
Balance (in units)	144,180	144,180	144,180	144,180
Class B
Increase (Decrease) in Partners' Capital
Balance			$ (11,403,635)	$ (9,338,738)
Balance (in units)			34,243	34,243
Distribution to Partners			$ (1,354,464)	$ (1,325,553)
Stock Buyback			(244,753)	(700,523)
Net income (loss)			756,075	111,226
Balance	$ (12,246,777)	$ (11,253,588)	$ (12,246,777)	$ (11,253,588)
Balance (in units)	34,243	34,243	34,243	34,243
General Partnership
Increase (Decrease) in Partners' Capital
Balance			$ (600,191)	$ (491,512)
Balance (in units)			1,802	1,802
Distribution to Partners			$ (71,288)	$ (69,766)
Stock Buyback			$ (12,882)	(36,869)
Stock Buyback (in units)			(6)
Net income (loss)			$ 39,793	5,854
Balance	$ (644,568)	$ (592,293)	$ (644,568)	$ (592,293)
Balance (in units)	1,802	1,802	1,802	1,802
Treasury Units
Increase (Decrease) in Partners' Capital
Balance (in units)			60,970	58,709
Stock Buyback (in units)			594	1,574
Balance (in units)	61,564	60,283	61,564	60,283

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows from Operating Activities
Net Income	$ 3,979,341	$ 585,401
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	7,807,693	8,097,365
Amortization of deferred finance costs	189,892	252,729
(Income) from investments in joint ventures	(347,368)	(110,351)
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures	59,000	72,500
(Increase) Decrease in rents receivable	(113,898)	282,243
(Decrease) in accounts payable and accrued expense	(1,704,508)	(284,656)
(Increase) in real estate tax escrow	(206,239)	(984,411)
(Increase) in interest receivable U.S. Treasury bills	(383,809)
(Increase) in prepaid expenses and other assets	(1,958,461)	(1,282,943)
Increase in advance rental payments and security deposits	845,440	824,409
Total Adjustments	4,187,742	6,866,885
Net cash provided by operating activities	8,167,083	7,452,286
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures	1,575,000	1,135,000
Investment in U.S. Treasury bills	(68,355,526)
Proceeds from U.S. Treasury bills	88,332,133
Purchase of rental property	(8,974,242)
Improvement of rental properties	(4,865,294)	(2,113,339)
Net cash (used in) investing activities	7,712,071	(978,339)
Cash Flows from Financing Activities
Principal payments of mortgage notes payable	(1,321,579)	(1,198,209)
Proceeds from Mortgage Notes Payable		41,937,337
Stock buyback	(1,289,374)	(3,688,961)
Distributions to partners	(7,128,758)	(6,976,595)
Net cash provided by (used in) financing activities	(9,739,711)	30,073,572
Net Increase in Cash and Cash Equivalents	6,139,443	36,547,519
Cash and Cash Equivalents, at beginning of period	49,560,723	96,083,508
Cash and Cash Equivalents, at end of period	$ 55,700,166	$ 132,631,027

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 30 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 5 commercial buildings and individual units at one condominium complex. These properties total 2,892 apartment units, 19 condominium units and 128,635 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing

activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $190,000 and $253,000 for the six months ended June 30, 2023 and 2022, respectively.

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 14).

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in BlackRock Liquidity Treasury Trust Fund, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.

Investments in Treasury Bills: Investments in Treasury Bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income.

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately $2,000 for the six months ended June 30, 2023, but had no comprehensive income or loss for the six months ended June 30, 2022.

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3-for-1 forward split.

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2023 or 2022. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2023, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, and investments in U.S. Treasury bills, earning interest at rates from 0.01% to 5.0%. At June 30, 2023 and December 31, 2022, respectively approximately $56,158,000, and $49,641,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. Of the $56,158,000, approximately $40,092,000 is invested in Blackrock Liquidity Funds Treasury Trust, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $193,000 and $135,000 for the six months ended June 30, 2023, and 2022, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2023, and 2022 there was no capitalized interest.

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.

Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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RENTAL PROPERTIES

6 Months Ended

Jun. 30, 2023

RENTAL PROPERTIES

RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of June 30, 2023, the Partnership and its Subsidiary Partnerships owned 2,892 residential apartment units in 25 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of June 30, 2023, the Partnership and Subsidiary Partnerships owned two commercial shopping centers in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton, and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in seven residential and mixed use complexes (the “Investment Properties”) at June 30, 2023 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000 on January 18, 2023. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $59,000. From the purchase price, the Partnership allocated approximately $585,000 to in- place leases, and approximately $378,000 to the

value of tenant relationships. The value assigned to in-place leases is being amortized over a twelve-month period. The value assigned to tenant relationships is being amortized over the individual tenant’s lease term, ranging from 20 months to 156 months.

Rental properties consist of the following:

	June 30, 2023		December 31, 2022		Useful Life
Land, improvements and parking lots	$	90,857,007	$	87,405,897	15	-	40	years
Buildings and improvements		263,076,029		256,035,191	15	-	40	years
Kitchen cabinets		15,029,029		14,347,212	5	-	10	years
Carpets		13,035,304		12,047,573	5	-	10	years
Air conditioning		501,697		501,697	5	-	10	years
Laundry equipment		553,140		553,140	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		19,418,136		18,716,758	5	-	30	years
Motor vehicles		232,954		171,519			5	years
Fences		46,872		46,872	5	-	15	years
Furniture and fixtures		8,817,296		7,902,182	5	-	7	years
Total fixed assets		414,543,333		400,703,910
Less: Accumulated depreciation		(167,092,493)		(159,627,479)
	$	247,450,840	$	241,076,431

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by The Hamilton Company, Inc. (the “Management Company”), an entity that is owned by the majority shareholder of NewReal, Inc., the general partner of the Partnership (the “General Partner”). The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately 1,364,000 and $1,345,000 for the six months ended June 30, 2023 and 2022, respectively.

The Partnership Agreement permits the General Partner or the Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the six months ended June 30, 2023 and 2022, approximately $914,000 and $383,000 was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2023 expenses referred to above, approximately $165,000 consisted of repairs and maintenance, $171,000 of administrative expense, and approximately $57,000 for renting expense. Approximately $521,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2023, the Hamilton Company received approximately $398,000 from the Investment Properties of which approximately $334,000 was the management fee, approximately $5,000 for construction, architectural services and supervision of capital projects, approximately $43,000 for repairs and maintenance, and approximately $16,000 for legal expense. The management fee is equal to 4% of gross receipts of rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the Management Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $2,050,000 and $1,913,000 for the six months ended June 30, 2023 and 2022, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. For the six months ended June 30, 2023, the Partnership accrued $32,000 for the employer’s match portion to the plan. For the six months ended June 30, 2022, the Partnership contributed $28,000 for the employer’s match portion to the plan.

Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 15 people. During the six months ended June 30, 2023 and 2022, the Management Company charged the Partnership $62,500 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

Sally Michael is a Director of New Real, Inc., and she is a Partner at Saul Ewing Arnstein & Lear LLP. Saul Ewing billed the Partnership for legal fees totaling approximately $39,000 and $68,000 for the six months ended June 30, 2023 and 2022 respectively.

The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are the Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 15 for a description of the properties and their operations.

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PREPAID EXPENSES and OTHER ASSETS

6 Months Ended

Jun. 30, 2023

PREPAID EXPENSES and OTHER ASSETS

PREPAID EXPENSES and OTHER ASSETS

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $3,523,000, and $3,406,000 of security deposits are included in prepaid expenses and other assets at June 30, 2023 and December 31, 2022, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at June 30, 2023 and December 31, 2022 is approximately $1,547,000 and $1,979,000, respectively, held in escrow to fund future capital improvements, approximately $957,000 and $573,000 respectively in interest receivable, U.S. Treasury bills ,and respectively $840,000 and $580,000 in distributions receivable from the joint ventures.

Intangible assets on the acquisition of 653 Worcester Road are included in prepaid expenses and other assets. Intangible assets are approximately $667,000 and $0 net of accumulated amortization of approximately $296,000 and $1,418,000 at June 30, 2023, and at December 31, 2022 respectively.

Financing fees in association with the line of credit of approximately $80,000 and $109,000 are net of accumulated amortization of approximately $100,000 and $70,000 at June 30, 2023 and December 31, 2022 respectively.

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MORTGAGE NOTES PAYABLE

6 Months Ended

Jun. 30, 2023

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE

NOTE 5. MORTGAGE NOTES PAYABLE

At June 30, 2023 and December 31, 2022, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At June 30, 2023, the interest rates on these loans ranged from 2.97% to 4.95%, payable in monthly installments aggregating approximately $1,523,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At June 30, 2023, the weighted average interest rate on the above mortgages was 3.68%. The effective rate of 3.78% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $2,969,000 and $3,159,000 are net of accumulated amortization of approximately $1,163,000 and $973,000 at June 30, 2023 and December 31, 2022, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at June 30, 2023 are as follows:

2024—current maturities	$	3,062,000
2025		3,578,000
2026		21,957,000
2027		6,620,000
2028		23,220,000
Thereafter		354,367,000
		412,804,000
Less: unamortized deferred financing costs		2,969,000
	$	409,835,000

On June 16, 2022, the Partnership entered into an amendment to the Facility Agreement. The additional advance under the Amended Agreement is in the amount of $80,284,000, at a fixed interest rate of 4.33%. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings.

The Partnership used the proceeds to pay down approximately $37,065,000 of existing debt secured by four properties, along with approximately $834,000 in prepayment penalties. The remaining balance of approximately $42,404,000 will be used for general partnership purposes.

On November 30, 2021, New England Realty Associates Limited Partnership (the “Partnership”), entered into a Master Credit Facility Agreement ( the “Facility Agreement”) with KeyBank National Association (“KeyBank”) dated as of November 30, 2021, with an initial advance in the amount of $156,000,000. Interest only on the debt at a fixed interest rate of 2.97% is payable on a monthly basis through December 31, 2031. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings (“Mortgages”).

The Partnership used the proceeds to pay down approximately $65,305,000 of existing debt secured by 11 properties, along with approximately $2,700,000 in prepayment penalties. The remaining balance of approximately $89,000,000 will be used for general partnership purposes.

On October 14, 2022, the Partnership entered into a loan agreement with Brookline Bank refinancing its loan on 659-665 Worcester Road, Framingham, MA. The agreement pays down the loan on the existing debt of $5,954,546.14, extends the maturity until October 14, 2032, at a variable interest rate of SOFR rate, plus 1.7% interest only for 2 years and amortizing using a thirty-year schedule for the balance of the term. At closing, the Partnership entered into an interest rate swap contract with Brookline Bank with a notional amount equivalent to the underlying loan principal amortization, resulting in a fixed rate of 4.60% through the expiration of the interest rate swap contract. The agreement also allows for an earn out of up to an additional $1,495,453.86 once the property performance reaches a 1.35x debt service coverage ratio and the loan to value equates to at most 65%.

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period phased out as of December 31, 2022. During this period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million. As of June 30, 2023, the portfolio’s debt yield fell below the minimum of 9.5% to 8.5%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is unable to draw down any amount from the line of credit until the Partnership meets the required financial covenants.

The interest rate for the new term is LIBOR plus 300 basis points. The costs associated with the modification and renewal of the line of credit was approximately $179,000.

After June 30, 2023, the remaining tenors of U.S.-dollar LIBOR ceased publication, prompting the need for an alternative benchmark rate. On April 14, 2023, the partnership amended the line of credit to convert its base rate of interest from LIBOR to the Secured Overnight Financing Rate (SOFR) plus 10 basis points.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay dividends, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

6 Months Ended

Jun. 30, 2023

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Partnership’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. At June 30, 2023, amounts received for prepaid rents of approximately $2,919,000 are included in cash and cash equivalents, and security deposits of approximately $3,523,000 are included in prepaid expenses and other assets and are restricted cash.

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PARTNERS' CAPITAL

6 Months Ended

Jun. 30, 2023

PARTNERS' CAPITAL

PARTNERS' CAPITAL

NOTE 7. PARTNERS’ CAPITAL

The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the distributions made to the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

In January 2023, the Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per Receipt), payable on March 31, 2023. In addition to the quarterly distribution, there was a special distribution of $38.40 per Class A unit ($1.28 per Receipt) payable on March 31, 2023. In May 2023, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 30, 2023.

In 2022 the Partnership paid total distributions of an aggregate $76.80 per Unit ($2.56 per Receipt) for a total payment of $9,267,981.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Six Months Ended
	June 30,
	2023		2022
Net Income per Depositary Receipt	$	1.12	$	0.16
Distributions per Depositary Receipt	$	2.00	$	1.92

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TREASURY UNITS

6 Months Ended

Jun. 30, 2023

TREASURY UNITS

TREASURY UNITS

NOTE 8. TREASURY UNITS

Treasury Units at June 30, 2023 are as follows:

Class A	49,251
Class B	11,697
General Partnership	616
	61,564

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the

Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions.

From August 20, 2007 through June 30, 2023, the Partnership has repurchased 1,502,734 Depositary Receipts at an average price of $30.54 per receipt (or $916.20 per underlying Class A Unit), 4,160 Class B Units and 219 General Partnership Units, both at an average price of $1,209.00 per Unit, totaling approximately $51,785,000 including brokerage fees paid by the Partnership.

During the six months ended June 30, 2023, the Partnership purchased a total of 14,274 Depositary Receipts. The average price was $72.20 per receipt, or $2,166 per unit. The cost including commission was $1,031,739.The Partnership was required to repurchase 113 Class B Units and 6 General Partnership units at a cost of $244,753 and $12,882 respectively.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

The Partnership, the Subsidiary Partnerships, and the Investment Properties and their properties are not presently subject to any material litigation, and, to management’s knowledge, there is not any material litigation presently threatened against them. The properties are occasionally subject to ordinary routine legal and administrative proceedings incident to the ownership of residential and commercial real estate. Some of the legal and other expenses related to these proceedings are covered by insurance and none of these costs and expenses are expected to have a material adverse effect on the Consolidated Financial Statements of the Partnership.

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RENTAL INCOME

6 Months Ended

Jun. 30, 2023

RENTAL INCOME.

RENTAL INCOME

NOTE 10. RENTAL INCOME

During the six months ended June 30, 2023, approximately 94% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2023 as follows:

	Commercial
	Property Leases
2024	$	2,595,339
2025		2,292,661
2026		2,478,151
2027		1,919,558
2028		1,685,361
Thereafter		10,703,368
	$	21,674,438

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $328,000 and $437,000 for the six months ended June 30, 2023 and 2022 respectively. Trader Joe’s and Walgreen’s, tenants at Staples Plaza and 653 Worcester Road, Framingham, MA. respectively, are approximately 23% of the total commercial rental income.

The following information is provided for commercial leases:

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through June 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2024	$	776,396	34,544	22	21	%
2025		443,854	16,663	9	12	%
2026		214,265	6,132	8	6	%
2027		294,550	12,440	6	8	%
2028		283,478	7,651	3	8	%
2029		142,860	3,112	2	4	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		1,428,261	46,987	4	38	%
Totals	$	3,694,264	128,635	55	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $1,291,000 and $1,007,000 at June 30, 2023 and December 31, 2022. Included in rents receivable at June 30, 2023 is approximately $199,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis.

Rents receivable at June 30, 2023 also includes approximately $28,000 representing the deferral of rental concession primarily related to the residential properties.

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CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2023

CASH FLOW INFORMATION

CASH FLOW INFORMATION

NOTE 11. CASH FLOW INFORMATION

During the six months ended J une 30, 2023 and 2022, cash paid for interest was approximately $7,678,000, and $6,987,000 respectively. Cash paid for state income taxes was approximately $25,000 and $49,000 during the six months ended June 30, 2023 and 2022 respectively.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At June 30, 2023 and December 31, 2022, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.

Financial Assets and Liabilities not Measured at Fair Value

At June 30, 2023 and December 31, 2022 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items.

The Partnership has investments in Treasury Bills some of which mature over a period greater than 90 days and are classified as short-term investments. The Treasury Bills are carried at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income. The Treasury Bills classified within Level I of the fair value hierarchy.

At June 30, 2023 and December 31, 2022 we estimated the fair value of our mortgage payable, derivative financial instrument, and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at June 30, 2023 and

December 31, 2022, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so. At June 30, 2023 and at December 31, 2022 the Partnership’s line of credit had an outstanding balance of zero.

The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments:

● For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities.

● For mortgage notes payable: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments.

The following table reflects the carrying amounts and estimated fair value of our debt.

	June 30, 2023		Dec 31, 2022
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	55,700,166	55,700,166	49,560,723	49,560,723
Treasury bills	68,355,526	69,296,283	88,332,133	88,908,540
Total Assets	124,055,692	124,996,449	137,892,856	138,469,263
Liabilities
Mortgage payable *
- Partnership properties	409,834,512	356,801,408	410,966,199	355,629,060
- Investment properties	166,031,338	153,687,019	166,090,966	153,710,522
Total Liabilities	575,865,850	510,488,427	577,057,165	509,339,582

* Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2023 and December 31, 2022. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since June 30, 2023 and current estimates of fair value may differ significantly from the amounts presented herein.

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DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2023

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS

Cash Flow Hedges of Interest Rate Risk

The Partnership’s objectives in using rate derivatives are to manage its exposure to interest rate movements. To accomplish this objective, the Partnership uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Partnership making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to

derivatives will be reclassified to interest expense as interest payments are made on the Partnership’s variable rate debt. During the next 12 months, the Partnership estimates $138,000 will be reclassified as a decrease to interest expense.

As of June 30, 2023, the Partnership had one interest rate swap outstanding with a notional amount of approximately $297,000 designated as cash flow hedges of interest rate risk. As of June 30, 2023, the Partnership did not have any interest rate derivatives in a net liability position.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of, June 30, 2023 and 2022.

	Fair Value
Asset Derivatives designated	June 30,		December 31,
as hedging instruments	2023		2022		Balance sheet location
Interest rate swaps	$	297,046	$	—	Prepaid Expenses and Other Assets

The table below presents the effect the Company’s derivative financial instruments on the consolidated statements of income for the quarters ended June 30, 2023 and 2022.

					Location of Gain
					or (Loss)	Amount of Gain					Total Amount of
					Reclassified	or (Loss)				Location of Gain	Interest Expense
	Amount of Gain				from	Reclassified				or (Loss) Recognized	presented in the
Derivatives in Cash Flow	or (Loss) Recognized				Accumulated	from Accumulated				in Income on	consolidated statements
Hedging Relationships	in OCI on Derivative				OCI Into Income	OCI into Income				Derivative	of operations
Three Months Ended June 30,	2023		2022			2023		2022			2023		2022
Interest rate swaps	$	168,002	$	—	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(3,925,863)	$	(3,623,714)
Six Months Ended June 30,
Interest rate swaps	$	2,115	$	—	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(7,825,103)	$	(7,078,349)

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TAXABLE INCOME AND TAX BASIS

6 Months Ended

Jun. 30, 2023

TAXABLE INCOME AND TAX BASIS

TAXABLE INCOME AND TAX BASIS

NOTE 14. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, different depreciation methods, different tax lives, other items with limited tax deductibility carryovers and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $10,968,000 was approximately $7,245,000 more than statement income for the year ended December 31, 2022. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2022 is approximately $14,000,000 more than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation and bonus depreciation. The Partnership’s Federal tax basis in its joint venture investments is approximately $3,000,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidated financial statements.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of June 30, 2023, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2019 forward.

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

6 Months Ended

Jun. 30, 2023

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 15. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC , entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. At June 30, 2023, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At June 30, 2023, the balance on this mortgage before unamortized deferred financing costs is $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30 2023, the balance on this mortgage before unamortized deferred financing costs is $6,000,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30, 2023, the balance of the mortgage before unamortized deferred finance is $16,900,000. The investment is referred to as Hamilton on Main LLC.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At June 30, 2023, the balance of this mortgage before unamortized deferred financing costs is approximately $8,599,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information at June 30, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,614,141		$	2,584,435		$	4,650,472		$	76,659		$	4,324,746		$	12,985,301		$	74,525,027		$	104,760,781
Cash & Cash Equivalents		997,622			60,182			374,750			16,853			251,310			611,236			2,088,673			4,400,626
Rent Receivable		211,562			80,184			—			4,931			2,589			9,044			140,146			448,456
Real Estate Tax Escrow		67,281			—			23,412			—			43,542			139,831			—			274,066
Prepaid Expenses & Other Assets		326,548			50,175			104,393			1,049			42,306			248,929			2,635,666			3,409,066
Total Assets	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,968,975		$	—		$	8,565,993		$	—		$	5,932,827		$	16,881,274		$	124,682,270		$	166,031,339
Accounts Payable & Accrued Expense		165,149			1,500			124,185			2,660			74,550			196,773			816,401			1,381,218
Advance Rental Pmts & Security Deposits		309,790			—			335,465			—			192,370			515,070			3,506,661			4,859,356
Total Liabilities		10,443,914			1,500			9,025,643			2,660			6,199,747			17,593,117			129,005,332			172,271,913
Partners’ Capital		(3,226,760)			2,773,476			(3,872,616)			96,832			(1,535,254)			(3,598,776)			(49,615,820)			(58,978,918)
Total Liabilities and Capital	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,386,738		$	—		$	48,416		$	—		$	—		$	—			1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,613,380)		$	—		$	(1,936,308)		$	—		$	(767,627)		$	(1,799,388)		$	(19,846,328)			(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(24,527,877)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			690
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			—			—			—			—			—
Units sold through August 1, 2023		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Financial information for the six months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	850,177	$	120,942	$	834,013	$	49,735	$	638,730	$	1,886,063	$	8,015,963	$	12,395,623
Laundry and Sundry Income		3,040		—		—		—		—		—		48,433		51,473
		853,217		120,942		834,013		49,735		638,730		1,886,063		8,064,396		12,447,096
Expenses
Administrative		10,531		1,500		13,043		1,871		9,482		38,973		113,118		188,518
Depreciation and Amortization		234,133		5,855		172,866		1,632		168,308		530,006		1,821,273		2,934,073
Management Fees		33,744		4,768		32,632		1,989		25,663		74,129		160,975		333,900
Operating		150,518		—		57,035		142		68,372		224,264		653,665		1,153,996
Renting		30,945		—		18,200		—		1,573		24,455		67,759		142,932
Repairs and Maintenance		95,955		—		62,538		—		44,233		336,730		894,898		1,434,354
Taxes and Insurance		141,245		30,681		94,286		8,704		70,400		262,939		1,271,219		1,879,474
		697,071		42,804		450,600		14,338		388,031		1,491,496		4,982,907		8,067,247
Income Before Other Income		156,146		78,138		383,413		35,397		250,699		394,567		3,081,489		4,379,849
Other Income (Loss)
Interest Expense		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
Net (Loss) Income	$	(202,706)	$	78,138	$	209,939	$	35,397	$	132,591	$	(6,176)	$	559,435	$	806,618
Net (Loss) Income —NERA 50%	$	(101,353)	$	39,070	$	104,970	$	17,699	$	66,296	$	(3,088)				123,593
Net Income —NERA 40%													$	223,774		223,774
															$	347,368

Financial information for the three months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	411,189	$	60,471	$	422,123	$	24,867	$	325,228	$	963,511	$	4,018,665	$	6,226,054
Laundry and Sundry Income		337		—		—		—		—		(15,429)		12,433		(2,659)
		411,526		60,471		422,123		24,867		325,228		948,082		4,031,098		6,223,395
Expenses
Administrative		5,791		750		9,574		951		5,607		26,269		65,111		114,053
Depreciation and Amortization		117,146		2,928		86,560		816		84,591		265,496		915,526		1,473,063
Management Fees		14,652		1,589		16,495		994		12,857		36,933		79,366		162,886
Operating		67,170		—		31,655		75		30,856		95,322		276,666		501,744
Renting		27,770		—		9,943		—		205		12,509		27,136		77,563
Repairs and Maintenance		41,487		—		38,327		—		23,299		183,276		576,924		863,313
Taxes and Insurance		70,311		15,224		47,111		4,203		35,042		130,566		647,645		950,102
		344,327		20,491		239,665		7,039		192,457		750,371		2,588,374		4,142,724
Income Before Other Income		67,199		39,980		182,458		17,828		132,771		197,711		1,442,724		2,080,671
Other Income (Loss)
Interest Expense		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
Net Income (Loss)	$	(119,340)	$	39,980	$	95,943	$	17,828	$	73,413	$	(15,655)	$	183,943	$	276,112
Net Income (Loss)—NERA 50%	$	(59,670)	$	19,990	$	47,972	$	8,914	$	36,708	$	(7,827)				46,087
Net Income —NERA 40%													$	73,577		73,577
															$	119,664

Future annual mortgage maturities at June 30, 2023 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2024	$	—	$	235,293	$	—	$	—	$	—	$	235,293
6/30/2025		—		244,563		—		16,900,000		—		17,144,563
6/30/2026		10,000,000		254,197		—		—		—		10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		—		274,619
Thereafter		—		7,326,402		6,000,000		—		125,000,000		138,326,402
		10,000,000		8,599,285		6,000,000		16,900,000		125,000,000		166,499,285
Less: unamortized deferred financing costs		(31,025)		(33,292)		(67,173)		(18,726)		(317,730)		(467,946)
	$	9,968,975	$	8,565,993	$	5,932,827	$	16,881,274	$	124,682,270	$	166,031,339

At June 30, 2023 the weighted average interest rate on the above mortgages was 4.21%. The effective rate was 4.28% including the amortization expense of deferred financing costs.

Summary financial information at June 30, 2022

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,045,672		$	2,586,925		$	4,897,693		$	79,923		$	4,581,892		$	13,896,435		$	77,385,213		$	109,473,753
Cash & Cash Equivalents		709,651			113,595			217,415			13,122			252,822			808,436			1,890,452			4,005,493
Rent Receivable		208,605			75,159			3,531			4,898			16,493			29,724			136,897			475,307
Real Estate Tax Escrow		73,643			—			34,630			—			29,447			70,172			—			207,892
Prepaid Expenses & Other Assets		319,717			56,859			118,903			630			26,635			176,283			2,792,920			3,491,947
Total Assets	$	7,357,288		$	2,832,538		$	5,272,172		$	98,573		$	4,907,289		$	14,981,050		$	82,205,482		$	117,654,392
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,955,186		$	—		$	8,785,710		$	—		$	5,924,643		$	16,865,222		$	124,617,647		$	166,148,408
Accounts Payable & Accrued Expense		105,777			1,713			64,101			2,064			53,140			168,858			702,566			1,098,219
Advance Rental Pmts& Security Deposits		282,378			—			303,449			—			195,781			455,979			3,825,600			5,063,187
Total Liabilities		10,343,341			1,713			9,153,260			2,064			6,173,564			17,490,059			129,145,813			172,309,814
Partners’ Capital		(2,986,053)			2,830,825			(3,881,088)			96,509			(1,266,275)			(2,509,009)			(46,940,331)			(54,655,422)
Total Liabilities and Capital	$	7,357,288		$	2,832,538		$	5,272,172		$	98,573			4,907,289		$	14,981,050		$	82,205,482		$	117,654,392
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,415,411		$	—		$	48,254		$			$			$			$	1,463,665
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,493,027)		$	—		$	(1,940,544)		$	—		$	(633,138)		$	(1,254,505)		$	(18,776,132)			(24,097,346)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(22,633,681)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			—			—			—			—			—
Units sold through August 1, 2022		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Financial information for the six months ended June 30, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	760,751	$	175,371	$	714,821	$	50,122	$	598,537	$	1,806,118	$	7,120,130	$	11,225,850
Laundry and Sundry Income		5,394		—		125		—		776		17,150		49,593		73,038
		766,145		175,371		714,946		50,122		599,313		1,823,268		7,169,723		11,298,888
Expenses
Administrative		8,873		1,548		19,992		1,349		5,755		35,579		109,732		182,828
Depreciation and Amortization		238,779		5,855		173,191		1,632		168,403		537,314		1,865,883		2,991,057
Management Fees		37,096		7,526		28,109		2,053		23,529		72,517		152,670		323,500
Operating		119,220		—		36,715		1,165		75,203		191,826		581,751		1,005,880
Renting		14,065		—		17,206		—		7,014		25,580		72,674		136,539
Repairs and Maintenance		69,868		3,180		83,758		—		44,990		305,954		797,670		1,305,420
Taxes and Insurance		133,102		31,508		87,467		9,120		75,678		261,364		1,220,611		1,818,850
		621,003		49,617		446,438		15,319		400,572		1,430,134		4,800,991		7,764,074
Income Before Other Income		145,142		125,754		268,508		34,803		198,741		393,134		2,368,732		3,534,814
Other Income (Loss)
Interest Expense		(141,388)		—		(176,400)		—		(118,129)		(376,798)		(2,534,570)		(3,347,285)
Other Income		—		—		—		—		—		—		—		—
		(141,388)		—		(176,400)		—		(118,129)		(376,798)		(2,534,570)		(3,347,285)
Net Income (Loss)	$	3,754	$	125,754	$	92,108	$	34,803	$	80,612	$	16,336	$	(165,838)	$	187,529
Net Income (Loss)—NERA 50%	$	1,877	$	62,878	$	46,054	$	17,402	$	40,306	$	8,168				176,685
Net Income —NERA 40%													$	(66,334)		(66,334)
															$	110,351

Financial information for the three months ended June 30, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	318,903	$	89,269	$	368,001	$	25,752	$	304,499	$	915,736	$	3,649,413	$	5,671,573
Laundry and Sundry Income		—		—		125		—		1,076		6,599		22,538		30,338
		318,903		89,269		368,126		25,752		305,575		922,335		3,671,951		5,701,911
Expenses
Administrative		4,099		798		8,468		699		3,404		11,059		54,214		82,741
Depreciation and Amortization		119,593		2,928		86,777		816		84,443		268,850		936,748		1,500,155
Management Fees		18,611		4,208		14,306		1,095		12,136		35,145		76,298		161,799
Operating		66,248		—		14,822		(8)		19,617		83,136		234,223		418,038
Renting		8,437		—		7,046		—		3,212		10,591		14,812		44,098
Repairs and Maintenance		34,939		3,180		29,226		—		28,777		172,036		442,881		711,039
Taxes and Insurance		66,641		15,518		43,744		4,712		37,950		130,695		610,745		910,005
		318,568		26,632		204,389		7,314		189,539		711,512		2,369,921		3,827,875
Income Before Other Income		335		62,637		163,737		18,438		116,036		210,823		1,302,030		1,874,036
Other Income (Loss)
Interest Expense		(79,158)		—		(87,963)		—		(59,390)		(189,421)		(1,271,425)		(1,687,357)
Other Income		—		—		—		—		—		—		—		—
		(79,158)		—		(87,963)		—		(59,390)		(189,421)		(1,271,425)		(1,687,357)
Net Income (Loss)	$	(78,823)	$	62,637	$	75,774	$	18,438	$	56,646	$	21,402	$	30,605	$	186,679
Net Income (Loss)—NERA 50%	$	(39,411)	$	31,319	$	37,888	$	9,219	$	28,324	$	10,702				78,041
Net Income —NERA 40%													$	12,242		12,242
															$	90,283

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EMPLOYEE BENEFIT 401(k) PLANS

6 Months Ended

Jun. 30, 2023

EMPLOYEE BENEFIT 401(k) PLANS

EMPLOYEE BENEFIT 401(k) PLANS

NOTE 16. EMPLOYEE BENEFIT 401(k) PLANS

Employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”).  Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. 

The amounts contributed by employees are immediately vested and non-forfeitable. The Partnership matches 50% up to 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year.  Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the six months ended June 30, 2023 was $32,000.

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IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2023

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

NOTE 17. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

There have been no new accounting pronouncements applicable to the Partnership that would have a material impact on the Partnership’s consolidated financial statements.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 18. SUBSEQUENT EVENTS

From July 1, 2023, through August 8, 2023, the Partnership has purchased 1,554 Depository Receipts. The average price was $72.80 per receipt, or $2,183.89 per unit. The total cost was $113,476. The Partnership is required to purchase 12 Class B units and 1 General Partnership units at a cost of $26,906 and $1,416, respectively.

On July 14, 2023, the partnership purchased a 52 unit residential property in the South End neighborhood of Boston, MA comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, for a purchase price of approximately $27,500,000 with Partnership cash reserves.

On August 3, 2023, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on September 30, 2023.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

SIGNIFICANT ACCOUNTING POLICIES

Line of Business

Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 30 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 5 commercial buildings and individual units at one condominium complex. These properties total 2,892 apartment units, 19 condominium units and 128,635 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 15: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing

activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees and Deferred Financing Costs

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $190,000 and $253,000 for the six months ended June 30, 2023 and 2022, respectively.

Income Taxes

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 14).

Cash Equivalents

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in BlackRock Liquidity Treasury Trust Fund, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.

Investments in Treasury Bills

Investments in Treasury Bills: Investments in Treasury Bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income.

Segment Reporting

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately $2,000 for the six months ended June 30, 2023, but had no comprehensive income or loss for the six months ended June 30, 2022.

Income (Loss) Per Depositary Receipt

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3-for-1 forward split.

Income Per Unit

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2023 or 2022. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2023, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, and investments in U.S. Treasury bills, earning interest at rates from 0.01% to 5.0%. At June 30, 2023 and December 31, 2022, respectively approximately $56,158,000, and $49,641,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. Of the $56,158,000, approximately $40,092,000 is invested in Blackrock Liquidity Funds Treasury Trust, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.

Advertising Expense

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $193,000 and $135,000 for the six months ended June 30, 2023, and 2022, respectively.

Rental Property Held for Sale

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2023, and 2022 there was no capitalized interest.

Extinguishment of Debt

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.

Reclassification

Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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RENTAL PROPERTIES (Tables)

6 Months Ended

Jun. 30, 2023

RENTAL PROPERTIES

Schedule of rental properties

	June 30, 2023		December 31, 2022		Useful Life
Land, improvements and parking lots	$	90,857,007	$	87,405,897	15	-	40	years
Buildings and improvements		263,076,029		256,035,191	15	-	40	years
Kitchen cabinets		15,029,029		14,347,212	5	-	10	years
Carpets		13,035,304		12,047,573	5	-	10	years
Air conditioning		501,697		501,697	5	-	10	years
Laundry equipment		553,140		553,140	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		19,418,136		18,716,758	5	-	30	years
Motor vehicles		232,954		171,519			5	years
Fences		46,872		46,872	5	-	15	years
Furniture and fixtures		8,817,296		7,902,182	5	-	7	years
Total fixed assets		414,543,333		400,703,910
Less: Accumulated depreciation		(167,092,493)		(159,627,479)
	$	247,450,840	$	241,076,431

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MORTGAGE NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2023

MORTGAGE NOTES PAYABLE

Schedule of approximate annual maturities

Approximate annual maturities at June 30, 2023 are as follows:

2024—current maturities	$	3,062,000
2025		3,578,000
2026		21,957,000
2027		6,620,000
2028		23,220,000
Thereafter		354,367,000
		412,804,000
Less: unamortized deferred financing costs		2,969,000
	$	409,835,000

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PARTNERS' CAPITAL (Tables)

6 Months Ended

Jun. 30, 2023

PARTNERS' CAPITAL

Schedule of information per depositary receipt

	Six Months Ended
	June 30,
	2023		2022
Net Income per Depositary Receipt	$	1.12	$	0.16
Distributions per Depositary Receipt	$	2.00	$	1.92

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TREASURY UNITS (Tables)

6 Months Ended

Jun. 30, 2023

TREASURY UNITS

Schedule of treasury units

Treasury Units at June 30, 2023 are as follows:

Class A	49,251
Class B	11,697
General Partnership	616
	61,564

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RENTAL INCOME (Tables)

6 Months Ended

Jun. 30, 2023

RENTAL INCOME.

Schedule of minimum future annual rental income on non-cancellable operating leases

	Commercial
	Property Leases
2024	$	2,595,339
2025		2,292,661
2026		2,478,151
2027		1,919,558
2028		1,685,361
Thereafter		10,703,368
	$	21,674,438

Schedule of information for commercial leases

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through June 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2024	$	776,396	34,544	22	21	%
2025		443,854	16,663	9	12	%
2026		214,265	6,132	8	6	%
2027		294,550	12,440	6	8	%
2028		283,478	7,651	3	8	%
2029		142,860	3,112	2	4	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		1,428,261	46,987	4	38	%
Totals	$	3,694,264	128,635	55	100	%

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

FAIR VALUE MEASUREMENTS

Schedule of carrying amounts and estimated fair value of debt

	June 30, 2023		Dec 31, 2022
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	55,700,166	55,700,166	49,560,723	49,560,723
Treasury bills	68,355,526	69,296,283	88,332,133	88,908,540
Total Assets	124,055,692	124,996,449	137,892,856	138,469,263
Liabilities
Mortgage payable *
- Partnership properties	409,834,512	356,801,408	410,966,199	355,629,060
- Investment properties	166,031,338	153,687,019	166,090,966	153,710,522
Total Liabilities	575,865,850	510,488,427	577,057,165	509,339,582

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2023

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of fair value of derivatives

	Fair Value
Asset Derivatives designated	June 30,		December 31,
as hedging instruments	2023		2022		Balance sheet location
Interest rate swaps	$	297,046	$	—	Prepaid Expenses and Other Assets

Schedule of effect the Company's derivative financial instruments on the consolidated statements of income

					Location of Gain
					or (Loss)	Amount of Gain					Total Amount of
					Reclassified	or (Loss)				Location of Gain	Interest Expense
	Amount of Gain				from	Reclassified				or (Loss) Recognized	presented in the
Derivatives in Cash Flow	or (Loss) Recognized				Accumulated	from Accumulated				in Income on	consolidated statements
Hedging Relationships	in OCI on Derivative				OCI Into Income	OCI into Income				Derivative	of operations
Three Months Ended June 30,	2023		2022			2023		2022			2023		2022
Interest rate swaps	$	168,002	$	—	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(3,925,863)	$	(3,623,714)
Six Months Ended June 30,
Interest rate swaps	$	2,115	$	—	Interest expense	$	—	$	—	Interest and other investment income (loss)	$	(7,825,103)	$	(7,078,349)

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of future annual mortgage maturities

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2024	$	—	$	235,293	$	—	$	—	$	—	$	235,293
6/30/2025		—		244,563		—		16,900,000		—		17,144,563
6/30/2026		10,000,000		254,197		—		—		—		10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		—		274,619
Thereafter		—		7,326,402		6,000,000		—		125,000,000		138,326,402
		10,000,000		8,599,285		6,000,000		16,900,000		125,000,000		166,499,285
Less: unamortized deferred financing costs		(31,025)		(33,292)		(67,173)		(18,726)		(317,730)		(467,946)
	$	9,968,975	$	8,565,993	$	5,932,827	$	16,881,274	$	124,682,270	$	166,031,339

2023

Summary of financial position and income statements relating to investment in unconsolidated joint ventures

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,614,141		$	2,584,435		$	4,650,472		$	76,659		$	4,324,746		$	12,985,301		$	74,525,027		$	104,760,781
Cash & Cash Equivalents		997,622			60,182			374,750			16,853			251,310			611,236			2,088,673			4,400,626
Rent Receivable		211,562			80,184			—			4,931			2,589			9,044			140,146			448,456
Real Estate Tax Escrow		67,281			—			23,412			—			43,542			139,831			—			274,066
Prepaid Expenses & Other Assets		326,548			50,175			104,393			1,049			42,306			248,929			2,635,666			3,409,066
Total Assets	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,968,975		$	—		$	8,565,993		$	—		$	5,932,827		$	16,881,274		$	124,682,270		$	166,031,339
Accounts Payable & Accrued Expense		165,149			1,500			124,185			2,660			74,550			196,773			816,401			1,381,218
Advance Rental Pmts & Security Deposits		309,790			—			335,465			—			192,370			515,070			3,506,661			4,859,356
Total Liabilities		10,443,914			1,500			9,025,643			2,660			6,199,747			17,593,117			129,005,332			172,271,913
Partners’ Capital		(3,226,760)			2,773,476			(3,872,616)			96,832			(1,535,254)			(3,598,776)			(49,615,820)			(58,978,918)
Total Liabilities and Capital	$	7,217,154		$	2,774,976		$	5,153,027		$	99,492		$	4,664,493		$	13,994,341		$	79,389,512		$	113,292,995
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,386,738		$	—		$	48,416		$	—		$	—		$	—			1,435,154
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,613,380)		$	—		$	(1,936,308)		$	—		$	(767,627)		$	(1,799,388)		$	(19,846,328)			(25,963,031)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(24,527,877)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			690
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			—			—			—			—			—
Units sold through August 1, 2023		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Summary of income statement relating to investment in unconsolidated joint ventures

Financial information for the six months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	850,177	$	120,942	$	834,013	$	49,735	$	638,730	$	1,886,063	$	8,015,963	$	12,395,623
Laundry and Sundry Income		3,040		—		—		—		—		—		48,433		51,473
		853,217		120,942		834,013		49,735		638,730		1,886,063		8,064,396		12,447,096
Expenses
Administrative		10,531		1,500		13,043		1,871		9,482		38,973		113,118		188,518
Depreciation and Amortization		234,133		5,855		172,866		1,632		168,308		530,006		1,821,273		2,934,073
Management Fees		33,744		4,768		32,632		1,989		25,663		74,129		160,975		333,900
Operating		150,518		—		57,035		142		68,372		224,264		653,665		1,153,996
Renting		30,945		—		18,200		—		1,573		24,455		67,759		142,932
Repairs and Maintenance		95,955		—		62,538		—		44,233		336,730		894,898		1,434,354
Taxes and Insurance		141,245		30,681		94,286		8,704		70,400		262,939		1,271,219		1,879,474
		697,071		42,804		450,600		14,338		388,031		1,491,496		4,982,907		8,067,247
Income Before Other Income		156,146		78,138		383,413		35,397		250,699		394,567		3,081,489		4,379,849
Other Income (Loss)
Interest Expense		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
		(358,852)		—		(173,474)		—		(118,108)		(400,743)		(2,522,054)		(3,573,231)
Net (Loss) Income	$	(202,706)	$	78,138	$	209,939	$	35,397	$	132,591	$	(6,176)	$	559,435	$	806,618
Net (Loss) Income —NERA 50%	$	(101,353)	$	39,070	$	104,970	$	17,699	$	66,296	$	(3,088)				123,593
Net Income —NERA 40%													$	223,774		223,774
															$	347,368

Financial information for the three months ended June 30, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	411,189	$	60,471	$	422,123	$	24,867	$	325,228	$	963,511	$	4,018,665	$	6,226,054
Laundry and Sundry Income		337		—		—		—		—		(15,429)		12,433		(2,659)
		411,526		60,471		422,123		24,867		325,228		948,082		4,031,098		6,223,395
Expenses
Administrative		5,791		750		9,574		951		5,607		26,269		65,111		114,053
Depreciation and Amortization		117,146		2,928		86,560		816		84,591		265,496		915,526		1,473,063
Management Fees		14,652		1,589		16,495		994		12,857		36,933		79,366		162,886
Operating		67,170		—		31,655		75		30,856		95,322		276,666		501,744
Renting		27,770		—		9,943		—		205		12,509		27,136		77,563
Repairs and Maintenance		41,487		—		38,327		—		23,299		183,276		576,924		863,313
Taxes and Insurance		70,311		15,224		47,111		4,203		35,042		130,566		647,645		950,102
		344,327		20,491		239,665		7,039		192,457		750,371		2,588,374		4,142,724
Income Before Other Income		67,199		39,980		182,458		17,828		132,771		197,711		1,442,724		2,080,671
Other Income (Loss)
Interest Expense		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
		(186,539)		—		(86,515)		—		(59,358)		(213,366)		(1,258,781)		(1,804,559)
Net Income (Loss)	$	(119,340)	$	39,980	$	95,943	$	17,828	$	73,413	$	(15,655)	$	183,943	$	276,112
Net Income (Loss)—NERA 50%	$	(59,670)	$	19,990	$	47,972	$	8,914	$	36,708	$	(7,827)				46,087
Net Income —NERA 40%													$	73,577		73,577
															$	119,664

2022

Summary of financial position and income statements relating to investment in unconsolidated joint ventures

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,045,672		$	2,586,925		$	4,897,693		$	79,923		$	4,581,892		$	13,896,435		$	77,385,213		$	109,473,753
Cash & Cash Equivalents		709,651			113,595			217,415			13,122			252,822			808,436			1,890,452			4,005,493
Rent Receivable		208,605			75,159			3,531			4,898			16,493			29,724			136,897			475,307
Real Estate Tax Escrow		73,643			—			34,630			—			29,447			70,172			—			207,892
Prepaid Expenses & Other Assets		319,717			56,859			118,903			630			26,635			176,283			2,792,920			3,491,947
Total Assets	$	7,357,288		$	2,832,538		$	5,272,172		$	98,573		$	4,907,289		$	14,981,050		$	82,205,482		$	117,654,392
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,955,186		$	—		$	8,785,710		$	—		$	5,924,643		$	16,865,222		$	124,617,647		$	166,148,408
Accounts Payable & Accrued Expense		105,777			1,713			64,101			2,064			53,140			168,858			702,566			1,098,219
Advance Rental Pmts& Security Deposits		282,378			—			303,449			—			195,781			455,979			3,825,600			5,063,187
Total Liabilities		10,343,341			1,713			9,153,260			2,064			6,173,564			17,490,059			129,145,813			172,309,814
Partners’ Capital		(2,986,053)			2,830,825			(3,881,088)			96,509			(1,266,275)			(2,509,009)			(46,940,331)			(54,655,422)
Total Liabilities and Capital	$	7,357,288		$	2,832,538		$	5,272,172		$	98,573			4,907,289		$	14,981,050		$	82,205,482		$	117,654,392
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,415,411		$	—		$	48,254		$			$			$			$	1,463,665
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,493,027)		$	—		$	(1,940,544)		$	—		$	(633,138)		$	(1,254,505)		$	(18,776,132)			(24,097,346)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(22,633,681)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			—			—			—			—			—
Units sold through August 1, 2022		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Summary of income statement relating to investment in unconsolidated joint ventures

Financial information for the six months ended June 30, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	760,751	$	175,371	$	714,821	$	50,122	$	598,537	$	1,806,118	$	7,120,130	$	11,225,850
Laundry and Sundry Income		5,394		—		125		—		776		17,150		49,593		73,038
		766,145		175,371		714,946		50,122		599,313		1,823,268		7,169,723		11,298,888
Expenses
Administrative		8,873		1,548		19,992		1,349		5,755		35,579		109,732		182,828
Depreciation and Amortization		238,779		5,855		173,191		1,632		168,403		537,314		1,865,883		2,991,057
Management Fees		37,096		7,526		28,109		2,053		23,529		72,517		152,670		323,500
Operating		119,220		—		36,715		1,165		75,203		191,826		581,751		1,005,880
Renting		14,065		—		17,206		—		7,014		25,580		72,674		136,539
Repairs and Maintenance		69,868		3,180		83,758		—		44,990		305,954		797,670		1,305,420
Taxes and Insurance		133,102		31,508		87,467		9,120		75,678		261,364		1,220,611		1,818,850
		621,003		49,617		446,438		15,319		400,572		1,430,134		4,800,991		7,764,074
Income Before Other Income		145,142		125,754		268,508		34,803		198,741		393,134		2,368,732		3,534,814
Other Income (Loss)
Interest Expense		(141,388)		—		(176,400)		—		(118,129)		(376,798)		(2,534,570)		(3,347,285)
Other Income		—		—		—		—		—		—		—		—
		(141,388)		—		(176,400)		—		(118,129)		(376,798)		(2,534,570)		(3,347,285)
Net Income (Loss)	$	3,754	$	125,754	$	92,108	$	34,803	$	80,612	$	16,336	$	(165,838)	$	187,529
Net Income (Loss)—NERA 50%	$	1,877	$	62,878	$	46,054	$	17,402	$	40,306	$	8,168				176,685
Net Income —NERA 40%													$	(66,334)		(66,334)
															$	110,351

Financial information for the three months ended June 30, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	318,903	$	89,269	$	368,001	$	25,752	$	304,499	$	915,736	$	3,649,413	$	5,671,573
Laundry and Sundry Income		—		—		125		—		1,076		6,599		22,538		30,338
		318,903		89,269		368,126		25,752		305,575		922,335		3,671,951		5,701,911
Expenses
Administrative		4,099		798		8,468		699		3,404		11,059		54,214		82,741
Depreciation and Amortization		119,593		2,928		86,777		816		84,443		268,850		936,748		1,500,155
Management Fees		18,611		4,208		14,306		1,095		12,136		35,145		76,298		161,799
Operating		66,248		—		14,822		(8)		19,617		83,136		234,223		418,038
Renting		8,437		—		7,046		—		3,212		10,591		14,812		44,098
Repairs and Maintenance		34,939		3,180		29,226		—		28,777		172,036		442,881		711,039
Taxes and Insurance		66,641		15,518		43,744		4,712		37,950		130,695		610,745		910,005
		318,568		26,632		204,389		7,314		189,539		711,512		2,369,921		3,827,875
Income Before Other Income		335		62,637		163,737		18,438		116,036		210,823		1,302,030		1,874,036
Other Income (Loss)
Interest Expense		(79,158)		—		(87,963)		—		(59,390)		(189,421)		(1,271,425)		(1,687,357)
Other Income		—		—		—		—		—		—		—		—
		(79,158)		—		(87,963)		—		(59,390)		(189,421)		(1,271,425)		(1,687,357)
Net Income (Loss)	$	(78,823)	$	62,637	$	75,774	$	18,438	$	56,646	$	21,402	$	30,605	$	186,679
Net Income (Loss)—NERA 50%	$	(39,411)	$	31,319	$	37,888	$	9,219	$	28,324	$	10,702				78,041
Net Income —NERA 40%													$	12,242		12,242
															$	90,283

XML

SIGNIFICANT ACCOUNTING POLICIES (Business) (Details)	Jun. 30, 2023 property	Jun. 30, 2023 item	Jun. 30, 2023 ft²	Jun. 30, 2023	Jun. 30, 2022
Wholly owned properties
Line of Business
Number of properties	30
Wholly owned properties | Residential and mixed-use properties
Line of Business
Number of properties	25
Number of units | item		2,892
Wholly owned properties | Residential buildings
Line of Business
Number of properties	21
Wholly owned properties | Mixed use residential, retail and office buildings
Line of Business
Number of properties	4
Wholly owned properties | Commercial
Line of Business
Number of properties	5
Area of property (in square feet) | ft²			128,635
Wholly owned properties | Condominium
Line of Business
Number of properties	1
Number of units | item		19
Partially owned properties | Residential and mixed-use properties
Line of Business
Number of units	688	688
Area of property (in square feet) | ft²			12,500
Partially owned properties | Car parking lot
Line of Business
Capacity of real estate property (in cars per lot) | item		50
Limited Partnerships | Partially owned properties | Residential and mixed-use properties
Line of Business
Number of properties | item		7
NERA 40%
Line of Business
Ownership interest (as a percent)				40.00%	40.00%
NERA 50%
Line of Business
Ownership interest (as a percent)				50.00%	50.00%

XML

SIGNIFICANT ACCOUNTING POLICIES (Details)		3 Months Ended			6 Months Ended
	Jan. 03, 2012	Jun. 30, 2023 USD ($) item	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) item shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Aug. 20, 2007
Principles of Consolidation
Value at which partnership investments discontinue use of equity method		$ 0			$ 0
Amount of legal obligations related to investments no longer classified as equity method					$ 0
Revenue Recognition
Period for which arrears are charged against income					60 days
Deferred Financing Costs
Amortization of deferred financing costs					$ 190,000	$ 253,000
Income Taxes
Provision for income taxes					$ 0
Segment Reporting
Number of segments | item					1
Other Comprehensive Income (Loss)
Comprehensive loss		(168,002)			$ (2,115)	0
Income Per Unit
Dilutive units | shares					0
Concentration of Credit Risks and Financial Instruments
Single tenants			5	5
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets		56,158,000			$ 56,158,000		$ 49,641,000
Advertising Expense
Advertising expense					193,000	$ 135,000
Interest Capitalized
Capitalized interest			$ 0	$ 0
Blackrock Liquidity Funds Treasury Trust
Concentration of Credit Risks and Financial Instruments
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets		$ 40,092,000			$ 40,092,000
Minimum
Interest Capitalized
Criteria of capitalization of interest on property based on specified period of construction					1 year
Minimum | Cash and cash equivalents
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		0.01%			0.01%
Maximum | Cash and cash equivalents
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		5.00%			5.00%
Less Than Wholly Owned Subsidiaries [Member] | Minimum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		99.67%			99.67%
Less Than Wholly Owned Subsidiaries [Member] | Maximum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		100.00%			100.00%
Investment Properties
Principles of Consolidation
Number of limited liability companies/partnerships | item		7			7
Investment Properties | Minimum
Principles of Consolidation
Percentage of ownership interest		40.00%			40.00%
Investment Properties | Maximum
Principles of Consolidation
Percentage of ownership interest		50.00%			50.00%
Class A
Income (Loss) Per Depositary Receipt
Forward split of depositary receipts	3
Exchange ratio of depositary receipts for partnership units before adjustment	10
Exchange ratio of depositary receipts for partnership units after adjustment	30
Number of units in each depository receipt	0.03333							0.1

XML

RENTAL PROPERTIES (Details)		6 Months Ended
	Jan. 18, 2023 USD ($)	Jun. 30, 2023 property	Jun. 30, 2023 item	Jun. 30, 2023 ft²	Jun. 30, 2023	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 12, 2022 ft²	Jun. 30, 2022 property
RENTAL PROPERTIES
Number of commercial shopping centers | item			2
Rental properties
Total fixed assets						$ 414,543,333	$ 400,703,910
Less: Accumulated depreciation						(167,092,493)	(159,627,479)
Total fixed assets, net						247,450,840	241,076,431
Land, improvements and parking lots
Rental properties
Total fixed assets						90,857,007	87,405,897
Land, improvements and parking lots | Minimum
Rental properties
Useful Life		15 years
Land, improvements and parking lots | Maximum
Rental properties
Useful Life		40 years
Buildings and improvements
Rental properties
Total fixed assets						263,076,029	256,035,191
Buildings and improvements | Minimum
Rental properties
Useful Life		15 years
Buildings and improvements | Maximum
Rental properties
Useful Life		40 years
Kitchen cabinets
Rental properties
Total fixed assets						15,029,029	14,347,212
Kitchen cabinets | Minimum
Rental properties
Useful Life		5 years
Kitchen cabinets | Maximum
Rental properties
Useful Life		10 years
Carpets
Rental properties
Total fixed assets						13,035,304	12,047,573
Carpets | Minimum
Rental properties
Useful Life		5 years
Carpets | Maximum
Rental properties
Useful Life		10 years
Air conditioning
Rental properties
Total fixed assets						501,697	501,697
Air conditioning | Minimum
Rental properties
Useful Life		5 years
Air conditioning | Maximum
Rental properties
Useful Life		10 years
Laundry equipment
Rental properties
Total fixed assets						553,140	553,140
Laundry equipment | Minimum
Rental properties
Useful Life		5 years
Laundry equipment | Maximum
Rental properties
Useful Life		7 years
Elevators
Rental properties
Total fixed assets						1,885,265	1,885,265
Elevators | Minimum
Rental properties
Useful Life		20 years
Elevators | Maximum
Rental properties
Useful Life		40 years
Swimming pools
Rental properties
Total fixed assets						1,090,604	1,090,604
Swimming pools | Minimum
Rental properties
Useful Life		10 years
Swimming pools | Maximum
Rental properties
Useful Life		30 years
Equipment
Rental properties
Total fixed assets						19,418,136	18,716,758
Equipment | Minimum
Rental properties
Useful Life		5 years
Equipment | Maximum
Rental properties
Useful Life		30 years
Motor vehicles
Rental properties
Total fixed assets						232,954	171,519
Motor vehicles | Maximum
Rental properties
Useful Life		5 years
Fences
Rental properties
Total fixed assets						46,872	46,872
Fences | Minimum
Rental properties
Useful Life		5 years
Fences | Maximum
Rental properties
Useful Life		15 years
Furniture and fixtures
Rental properties
Total fixed assets						$ 8,817,296	$ 7,902,182
Furniture and fixtures | Minimum
Rental properties
Useful Life		5 years
Furniture and fixtures | Maximum
Rental properties
Useful Life		7 years
Wholly owned properties
RENTAL PROPERTIES
Number of properties | property		30
Investment Properties
RENTAL PROPERTIES
Number of units | property		690							865
NERA 40%
RENTAL PROPERTIES
Ownership interest (as a percent)					40.00%				40.00%
NERA 50%
RENTAL PROPERTIES
Ownership interest (as a percent)					50.00%				50.00%
Residential and mixed-use properties | Wholly owned properties
RENTAL PROPERTIES
Number of units | item			2,892
Number of properties | property		25
Residential and mixed-use properties | Partially owned properties
RENTAL PROPERTIES
Number of units		688	688
Rental properties
Area of property (in square feet) | ft²				12,500
Residential and mixed-use properties | Investment Properties | Partially owned properties
RENTAL PROPERTIES
Number of properties | item			7
Residential and mixed-use properties | Limited Partnerships | Partially owned properties
RENTAL PROPERTIES
Number of properties | item			7
Residential and mixed-use properties | NERA 40% | Partially owned properties | Minimum
RENTAL PROPERTIES
Ownership interest (as a percent)					40.00%
Residential and mixed-use properties | NERA 50% | Partially owned properties | Maximum
RENTAL PROPERTIES
Ownership interest (as a percent)					50.00%
Condominium | Wholly owned properties
RENTAL PROPERTIES
Number of units | item			19
Number of properties | property		1
Commercial | Property located at 659 Worcester Road, Framingham, MA.
Rental properties
Purchase price	$ 10,151,000
Closing costs	$ 59,000
Amortization period	12 months
Commercial | Property located at 659 Worcester Road, Framingham, MA. | Leases, Acquired-in-Place [Member]
Rental properties
Purchase price	$ 585,000
Commercial | Property located at 659 Worcester Road, Framingham, MA. | Customer Relationships [Member]
Rental properties
Purchase price	$ 378,000
Commercial | Purchase and sale agreement | Property located at 659 Worcester Road, Framingham, MA.
Rental properties
Area of property (in square feet) | ft²								20,700
Commercial | Minimum | Property located at 659 Worcester Road, Framingham, MA. | Leases, Acquired-in-Place [Member]
Rental properties
Amortization period	20 months
Commercial | Maximum | Property located at 659 Worcester Road, Framingham, MA. | Customer Relationships [Member]
Rental properties
Amortization period	156 months
Commercial | Wholly owned properties
RENTAL PROPERTIES
Number of properties | property		5
Rental properties
Area of property (in square feet) | ft²				128,635
Commercial | Investment Properties
RENTAL PROPERTIES
Number of units | property		3							3

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RELATED PARTY TRANSACTIONS (Details)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue					4.00%
Management fee as a percentage of gross receipts rental revenue of Linewt, LLC					3.00%
Management fees of related party					$ 1,364,000	$ 1,345,000
Management fee	$ 665,073		$ 672,370		1,362,837	1,345,454
Repairs and maintenance	3,479,071		2,974,734		6,241,845	5,254,385
Administrative expense	867,721		623,877		1,604,822	1,331,663
Renting	$ 244,434		$ 150,943		436,019	320,332
Employer contributions in 401K plan					32,000
Legal fees					$ 39,000	68,000
Number of limited partnerships and limited liability companies in which the entity has invested | item					7
Dexter Park
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue					2.00%
General Partner or Management Company
RELATED PARTY TRANSACTIONS
Repairs and maintenance					$ 165,000
Administrative expense					171,000
Renting					57,000
Expenses for construction, architectural services and supervision of capital projects					521,000
Costs related to professional services					914,000	383,000
Management Company
RELATED PARTY TRANSACTIONS
Reimbursement to related party for payroll transfers					2,050,000	1,913,000
Employer contributions in 401K plan					$ 32,000	$ 28,000
Number of accounting staff of related party providing bookkeeping and accounting functions | item					15
Fees for accounting and bookkeeping services		$ 62,500		$ 62,500			$ 125,000	$ 125,000
Number of employees having ownership interest in the investment properties | item					5
Partially owned properties
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue					4.00%
Management fee					$ 334,000
Repairs and maintenance					43,000
Construction, architectural services and supervision of capital projects					5,000
Legal fees					16,000
Amount paid to related party					$ 398,000
NERA 40%
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	40.00%		40.00%		40.00%	40.00%
NERA 50%
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	50.00%		50.00%		50.00%	50.00%
Brown Family [Member] | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	47.60%				47.60%
Brown Family [Member] | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	59.00%				59.00%

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PREPAID EXPENSES and OTHER ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
PREPAID EXPENSES and OTHER ASSETS
Security deposits	$ 3,523,000	$ 3,406,000
Escrow deposits to fund future capital improvements	1,547,000	1,979,000
Interest receivable	957,000	573,000
Distributions receivable from the joint ventures	840,000	580,000
Intangible assets, net of accumulated amortization	667,000	0
Accumulated amortization on intangible assets	296,000	1,418,000
Financing fees, net	80,000	109,000
Accumulated amortization on financing and leasing fees	$ 100,000	$ 70,000

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MORTGAGE NOTES PAYABLE (Mortgages Payable) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	4.28%
Financing fees, net	$ 80,000	$ 109,000
Accumulated amortization on financing and leasing fees	100,000	70,000
Annual maturities of mortgage debt
2024-current maturities	3,062,000
2025	3,578,000
2026	21,957,000
2027	6,620,000
2028	23,220,000
Thereafter	354,367,000
Total	412,804,000
Less: unamortized deferred financing costs	2,969,000
Outstanding amount of mortgage	409,834,512	410,966,199
Mortgages payable
MORTGAGE NOTES PAYABLE
Amount of monthly installments including principal	$ 1,523,000
Weighted average interest rate (as a percent)	3.68%
Effective interest rate (as a percent)	3.78%
Financing fees, net	$ 2,969,000	3,159,000
Accumulated amortization on financing and leasing fees	$ 1,163,000	$ 973,000
Mortgages payable | Minimum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)	2.97%
Mortgages payable | Maximum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)	4.95%

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MORTGAGE NOTES PAYABLE (Facility Agreement) (Details)				6 Months Ended
	Oct. 14, 2022 USD ($)	Jun. 16, 2022 USD ($) property	Nov. 30, 2021 USD ($) property	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Debt Instrument [Line Items]
Payment of debt				$ 1,321,579	$ 1,198,209
Proceeds from Mortgage Notes Payable					$ 41,937,337
Facility Agreement
Debt Instrument [Line Items]
Mortgage amount		$ 80,284,000	$ 156,000,000
Interest rate (as a percent)		4.33%	2.97%
Payment of debt		$ 37,065,000	$ 65,305,000
Number of properties in which borrowing amount collateralized | property		4	11
Mortgage prepayment penalties		$ 834,000	$ 2,700,000
Proceeds from Mortgage Notes Payable		$ 42,404,000	$ 89,000,000
Facility Agreement | Modification agreement with Brookline Bank.
Debt Instrument [Line Items]
Interest rate (as a percent)	4.60%
Existing loan amount	$ 5,954,546.14
Interest only term	2 years
Term of debt	30 years
Additional earnout	$ 1,495,453.86
Debt service coverage ratio	1.35
Threshold percentage of Loan to Value	65.00%
Facility Agreement | Modification agreement with Brookline Bank. | SOFR
Debt Instrument [Line Items]
Variable interest rate spread	1.70%

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MORTGAGE NOTES PAYABLE (Line of Credit) (Details) - Line of Credit				6 Months Ended
	Apr. 14, 2023	Oct. 29, 2021 USD ($)	Jul. 31, 2014 USD ($)	Jun. 30, 2023 USD ($) property	Jul. 31, 2017 USD ($)
Line of Credit
Maximum borrowings		$ 25,000,000	$ 25,000,000
Maximum borrowings during modification period		$ 17,000,000
Term of debt		3 years	3 years
Additional applicable margin rate			2.50%
Amount of refinancing costs		$ 179,000
Line of credit extension period				1 year
Extension fees paid				$ 37,500	$ 128,000
Number of properties in which borrowing amount collateralized | property				23
Debt yield				8.50%
Current covenants
Line of Credit
Leverage ratio		65.00%
Tangible net worth		$ 200,000,000
Debt yield		9.50%
Debt service coverage ratio		1.60
Revised covenants in place until September 30, 2022
Line of Credit
Leverage ratio		70.00%
Tangible net worth		$ 175,000,000
Debt yield		8.50%		9.50%
Debt service coverage ratio		1.35
Revised Covenants in place until December 31, 2022
Line of Credit
Debt yield		9.00%
Federal Funds Rate
Line of Credit
Variable interest rate spread			0.50%
LIBOR
Line of Credit
Variable interest rate spread		3.00%	1.00%
SOFR
Line of Credit
Variable interest rate spread	10.00%
Minimum
Line of Credit
Pledged interest ownership percentage				49.00%
Maximum
Line of Credit
Pledged interest ownership percentage				100.00%

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS
Period for advance rental payment	1 month
Amount received for prepaid rent	$ 2,919,000
Security deposits	$ 3,523,000

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PARTNERS' CAPITAL (Details)	1 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2023 $ / item	Jan. 31, 2023 $ / item	Jun. 30, 2023 item $ / item	Jun. 30, 2022 $ / item	Dec. 31, 2022 USD ($) $ / item	Aug. 08, 2023 $ / item	Apr. 30, 2023 $ / item
Quarterly distribution per unit approved (in dollars per unit)	12.00	9.60
Quarterly distribution per unit (in dollars per unit)		0.32					0.40
Special distribution per unit (in dollars per unit)		38.40
Special distribution per depository receipt (in dollars per receipt)		1.28
Total distribution per unit (in dollars per unit)					76.80
Total distribution per depository receipt (in dollars per receipt)					2.56
Total distributions | $					$ 9,267,981
Depositary receipts exchange ratio for Class A units | item			30
Earnings per depository receipt
Net Income (loss) per Depositary Receipt (in dollars per receipt)			1.12	0.16
Distributions per Depositary Receipt (in dollars per share)			2.00	1.92
Subsequent event
Quarterly distributions per depositary receipt (in dollars per receipt)						0.40
Limited Partner
Number of classes of partners | item			2
General Partnership
Number of classes of partners | item			1
Fixed distribution percentage of unit holders			1.00%
Class B
Fixed distribution percentage of unit holders			19.00%

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TREASURY UNITS (Details)				6 Months Ended		187 Months Ended	190 Months Ended
	Mar. 09, 2020	Mar. 10, 2015 shares	Aug. 20, 2007 shares	Jun. 30, 2023 USD ($) $ / item shares	Jun. 30, 2022 USD ($) shares	Mar. 31, 2023 USD ($) $ / item shares	Jun. 30, 2023 $ / item shares	Jan. 03, 2012	Mar. 06, 2008 shares
Treasury units				61,564			61,564
Period for repurchase of depository receipts	5 years	5 years	12 months
Depository receipts authorized to be repurchased		2,000,000	300,000						1,500,000
Number of depository receipts repurchased						1,502,734
Repurchase price of depository receipts (in dollars per receipt) | $ / item							30.54
Units required to be repurchased (in shares)				594	1,574
Total cost of repurchase | $				$ 1,289,374	$ 3,688,961	$ 51,785,000
General Partnership
Treasury units				616			616
Fixed distribution percentage of unit holders				1.00%
Number of depository receipts repurchased							219
Units required to be repurchased (in shares)				6
Total cost of repurchase | $				$ 12,882	36,869
Class A
Treasury units				49,251			49,251
Number of units in each depository receipt			0.1					0.03333
Fixed distribution percentage of unit holders				80.00%
Number of depository receipts repurchased				14,274
Repurchase price of depository receipts (in dollars per receipt) | $ / item				72.20
Repurchase price of units (in dollars per unit) | $ / item				2,166		916.20
Total cost of repurchase | $				$ 1,031,739	2,951,569
Class B
Treasury units				11,697			11,697
Fixed distribution percentage of unit holders				19.00%
Number of depository receipts repurchased							4,160
Total cost of repurchase | $				$ 244,753	$ 700,523
Repurchases required (in units)				113
Class B | General Partnership
Repurchase price of units (in dollars per unit) | $ / item						1,209.00

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RENTAL INCOME (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
RENTAL INCOME.
Percentage of rental income related to residential apartments and condominium units with leases of one year or less	94.00%
Maximum period of non-cancelable operating lease	1 year
Percentage of rental income related to commercial properties	6.00%
Minimum future rental income
2024	$ 2,595,339
2025	2,292,661
2026	2,478,151
2027	1,919,558
2028	1,685,361
Thereafter	10,703,368
Commercial Property Leases	$ 21,674,438

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RENTAL INCOME (Concentration) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Concentration Risk
Aggregate contingent rentals	$ 328,000	$ 437,000
Commercial rental income | Major tenant | Staples and Trader Joes | WRF Associates LLC Strip Mall Framingham, Massachusetts
Concentration Risk
Concentration risk percentage	23.00%

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RENTAL INCOME (Commercial Leases) (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) ft² item
RENTAL INCOME
Annual base rent for expiring leases | $	$ 3,694,264
Total square feet for expiring leases | ft²	128,635
Total number of leases expiring | item	55
Percentage of annual base rent for expiring leases	100.00%
2024
RENTAL INCOME
Annual base rent for expiring leases | $	$ 776,396
Total square feet for expiring leases | ft²	34,544
Total number of leases expiring | item	22
Percentage of annual base rent for expiring leases	21.00%
2025
RENTAL INCOME
Annual base rent for expiring leases | $	$ 443,854
Total square feet for expiring leases | ft²	16,663
Total number of leases expiring | item	9
Percentage of annual base rent for expiring leases	12.00%
2026
RENTAL INCOME
Annual base rent for expiring leases | $	$ 214,265
Total square feet for expiring leases | ft²	6,132
Total number of leases expiring | item	8
Percentage of annual base rent for expiring leases	6.00%
2027
RENTAL INCOME
Annual base rent for expiring leases | $	$ 294,550
Total square feet for expiring leases | ft²	12,440
Total number of leases expiring | item	6
Percentage of annual base rent for expiring leases	8.00%
2028
RENTAL INCOME
Annual base rent for expiring leases | $	$ 283,478
Total square feet for expiring leases | ft²	7,651
Total number of leases expiring | item	3
Percentage of annual base rent for expiring leases	8.00%
2029
RENTAL INCOME
Annual base rent for expiring leases | $	$ 142,860
Total square feet for expiring leases | ft²	3,112
Total number of leases expiring | item	2
Percentage of annual base rent for expiring leases	4.00%
2032
RENTAL INCOME
Annual base rent for expiring leases | $	$ 110,600
Total square feet for expiring leases | ft²	1,106
Total number of leases expiring | item	1
Percentage of annual base rent for expiring leases	3.00%
2033
RENTAL INCOME
Annual base rent for expiring leases | $	$ 1,428,261
Total square feet for expiring leases | ft²	46,987
Total number of leases expiring | item	4
Percentage of annual base rent for expiring leases	38.00%

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RENTAL INCOME (Rent Receivable) (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
RENTAL INCOME.
Allowance for doubtful rent receivable	$ 1,291,000	$ 1,007,000
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis	199,000
Deferred rental concession	$ 28,000

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CASH FLOW INFORMATION (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOW INFORMATION
Interest Paid	$ 7,678,000	$ 6,987,000
Cash paid for state income taxes	$ 25,000	$ 49,000

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FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
FAIR VALUE MEASUREMENTS
Line of credit	$ 0	$ 0
Liabilities
Carrying Amount	409,834,512	410,966,199
Carrying Amount
Assets
Cash equivalents	55,700,166	49,560,723
Treasury bills	68,355,526	88,332,133
Assets , Fair value	124,055,692	137,892,856
Liabilities
Carrying Amount	575,865,850	577,057,165
Estimated Fair Value
Assets
Cash equivalents	55,700,166	49,560,723
Treasury bills	69,296,283	88,908,540
Assets , Fair value	124,996,449	138,469,263
Liabilities
Estimated Fair Value	510,488,427	509,339,582
Wholly owned properties | Carrying Amount
Liabilities
Carrying Amount	409,834,512	410,966,199
Wholly owned properties | Estimated Fair Value
Liabilities
Estimated Fair Value	356,801,408	355,629,060
Partially owned properties | Carrying Amount
Liabilities
Carrying Amount	166,031,338	166,090,966
Partially owned properties | Estimated Fair Value
Liabilities
Estimated Fair Value	$ 153,687,019	$ 153,710,522

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DERIVATIVE FINANCIAL INSTRUMENTS (Details)	Jun. 30, 2023 USD ($) item
DERIVATIVE FINANCIAL INSTRUMENTS
Expected decrease to interest expense	$ 138,000
Interest Rate Cap | Designated as Hedging Instrument | Cash Flow Hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Number of interest rate derivatives held | item	1
Notional amount	$ 297,000

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DERIVATIVE FINANCIAL INSTRUMENTS - Classification on the consolidated balance sheets (Details) - Interest Rate Swap - Designated as Hedging Instrument - Cash Flow Hedging - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Asset Derivatives designated as hedging instruments	$ 297,046
DerivativeAssetStatementOfFinancialPositionExtensibleEnumeration	Prepaid Expense and Other Assets	Prepaid Expense and Other Assets

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DERIVATIVE FINANCIAL INSTRUMENTS - Effect on statements of income (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Net unrealized gain on derivative instruments for interest rate swaps	$ 168,002		$ 2,115	$ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net unrealized gain on derivative instruments for interest rate swaps	Net unrealized gain on derivative instruments for interest rate swaps	Net unrealized gain on derivative instruments for interest rate swaps
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Net unrealized gain on derivative instruments for interest rate swaps	$ 168,002,000		$ 2,115,000
Total Amount of Interest Expense presented in the consolidated statements of operations	$ (3,925,863,000)	$ (3,623,714,000)	$ (7,825,103,000)	$ (7,078,349,000)

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TAXABLE INCOME AND TAX BASIS (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)
TAXABLE INCOME AND TAX BASIS
Taxable net income	$ 10,968,000
Excess amount of statement income over taxable income	7,245,000
Excess amount of cumulative statement basis over cumulative taxable basis	14,000,000
Excess amount of statement income from joint venture investments over taxable income	$ 3,000,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) - item	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested	7
NERA 40%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	40.00%	40.00%
NERA 50%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	50.00%	50.00%
Investment Properties
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested	7
Number of partnerships investing in commercial property	3
Hamilton Company/Management Company
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of employees having ownership interest in the investment properties	5
Management Company
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of employees having ownership interest in the investment properties	5
Minimum | Brown Family [Member]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	47.60%
Maximum | Brown Family [Member]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	59.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Dexter) (Details)			6 Months Ended
	May 31, 2018 USD ($)	Oct. 28, 2009 USD ($) item	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,435,154		$ 1,437,387
Outstanding amount of mortgage			409,834,512		$ 410,966,199
Distribution to the Partnership			$ 7,128,758	$ 6,976,595
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units		409	409	409
Outstanding amount of mortgage	$ 82,000,000		$ 124,682,270	$ 124,617,647
Distribution to the Partnership	41,200,000
Dexter Park | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Loan amount		$ 89,914,000
Interest rate (as a percent)		5.57%
Period for which the entity is required to make interest only payments		2 years
Amortization period of debt		30 years
John Hancock | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Loan amount	$ 125,000,000
Interest rate (as a percent)	3.99%
General Partnership
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership			$ 71,288	$ 69,766
General Partnership | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership	$ 16,500,000
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 15,925,000
Ownership interest (as a percent)		40.00%
Purchase price of real estate properties		$ 129,500,000
Residential buildings | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			409	409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details)				6 Months Ended
	Oct. 12, 2016 USD ($)	Sep. 30, 2015 USD ($)	Mar. 07, 2005 USD ($) item	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 1,435,154		$ 1,437,387
Repayment of loan	$ 5,158,000
Distribution to the Partnership				7,128,758	$ 6,976,595
Mortgage Notes Payable				$ 409,834,512		$ 410,966,199
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units			48	49	49
Number of properties in which borrowing amount collateralized | item			1
Distribution to the Partnership		$ 978,193
Mortgage Notes Payable				$ 9,968,975	$ 9,955,186
Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				1	1
Capacity of real estate property (in cars per lot) | item			50
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 2,000,000
Ownership interest (as a percent)			50.00%
Purchase price of real estate properties			$ 14,300,000
Residential buildings | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				48	48
Commercial | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				1	1
Commercial | Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				1	1
Mortgages payable | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)				4.95%
Mortgages payable | Hamilton Essex Development, LLC and Hamilton Essex 81, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings			$ 10,750,000
Mortgages payable | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Amount of loan proceeds utilized for pay off the existing mortgage		$ 8,040,719
Term of debt		10 years
Mortgage Notes Payable				$ 10,000,000
Borrowings		$ 10,000,000
Mortgages payable | Hamilton Essex 81 | LIBOR
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Margin over basis of interest rate (as a percent)		2.18%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton 1025) (Details)	Jul. 08, 2016 USD ($)	Mar. 02, 2005 USD ($) item	Jul. 14, 2023 property	Jun. 30, 2023 USD ($) property	Dec. 31, 2022 USD ($)	Jun. 30, 2022 property	Mar. 05, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 1,435,154	$ 1,437,387
Outstanding amount of mortgage				$ 409,834,512	$ 410,966,199
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units		176		176		176
Number of units sold | item		127
Number of units retained for long-term investment		49		(1)		(1)
Capital contributions	$ 2,359,500
Hamilton 1025 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		10 years
Interest rate (as a percent)		5.67%
Period for which the entity is required to make interest only payments		5 years
Amortization period of debt		30 years
Borrowings		$ 5,000,000
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 2,352,000
Ownership interest (as a percent)		50.00%
Purchase price of investments							$ 23,750,000
Residential buildings | Subsequent event
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			52
Residential buildings | Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				175		175

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details)			1 Months Ended	6 Months Ended
	Oct. 13, 2016 USD ($)	Oct. 12, 2016 USD ($)	Sep. 30, 2004 USD ($) item	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 1,435,154		$ 1,437,387
Distribution to the Partnership				7,128,758	$ 6,976,595
Amount of mortgage paid off		$ 5,158,000
Refinancing costs				2,969,000
Outstanding amount of mortgage				$ 409,834,512		$ 410,966,199
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units			42	42	42
Purchase price of real estate properties			$ 10,100,000
Distribution to the Partnership	$ 385,000
Mortgage amount		$ 6,000,000		$ 6,000,000
Term of debt		15 years
Refinancing costs	$ 123,000			67,173
Interest rate (as a percent)		3.71%
Outstanding amount of mortgage				$ 5,932,827	$ 5,924,643
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 5,075,000
Ownership interest (as a percent)			50.00%
Residential buildings | Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				42	42

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details)		1 Months Ended		6 Months Ended
	Oct. 12, 2016 USD ($)	Aug. 31, 2014 USD ($)	Aug. 31, 2004 USD ($) item	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 1,435,154		$ 1,437,387
Outstanding amount of mortgage				409,834,512		$ 410,966,199
Repayment of loan	$ 5,158,000
Distribution to the Partnership				$ 7,128,758	$ 6,976,595
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units			280	148	148
Number of units sold | item			137
Outstanding amount of mortgage				$ 16,881,274	$ 16,865,222
Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Purchase price of real estate properties			$ 56,000,000
Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 8,000,000
Ownership interest (as a percent)			50.00%
NERA 50%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)				50.00%	50.00%
Residential buildings | Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property				148	148
Mortgages payable | Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		10 years
Outstanding amount of mortgage				$ 16,900,000
Interest rate (as a percent)		4.34%
Debt Instrument, Loan Proceeds distributed to the Partnership		$ 850,000
Repayment of loan		15,205,000
Cost associated with loan extension		161,000
Borrowings		$ 16,900,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (345 Franklin) (Details)		1 Months Ended	6 Months Ended
	Oct. 12, 2016 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($)	Nov. 30, 2001 USD ($) item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,435,154		$ 1,437,387
Repayment of loan	$ 5,158,000
Distribution to the Partnership			7,128,758	$ 6,976,595
Outstanding amount of mortgage			$ 409,834,512		$ 410,966,199
Maximum | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)			4.95%
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Outstanding amount of mortgage			$ 8,599,000
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture						$ 1,533,000
Ownership interest (as a percent)						50.00%
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units			40	40		40
Distribution to the Partnership		$ 1,610,000
Outstanding amount of mortgage			$ 8,565,993	$ 8,785,710
Legal obligation to fund operating results			$ 0
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		15 years
Interest rate (as a percent)		3.87%
Period for which the entity is required to make interest only payments		3 years
Amortization period of debt		30 years
Repayment of loan		$ 6,776,000
Borrowings		$ 10,000,000
345 Franklin | Residential buildings
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			40	40

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details)	Jun. 30, 2023 USD ($) property	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($) property	Dec. 31, 2021 USD ($)	May 31, 2018 USD ($)	Oct. 28, 2009 item	Mar. 07, 2005 item	Mar. 02, 2005 item	Sep. 30, 2004 item	Aug. 31, 2004 item	Nov. 30, 2001 item
ASSETS
Rental Properties	$ 247,450,840	$ 241,076,431
Cash & Cash Equivalents	55,700,166	49,560,723
Rent Receivable	769,712	655,814
Real Estate Tax Escrows	2,149,919	1,943,680
Prepaid Expenses & Other Assets	11,075,437	8,814,112
Total Assets	386,936,754	391,820,280
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	409,834,512	410,966,199
Accounts Payable & Accrued Expense	5,567,224	7,271,729
Advance Rental Pmts & Security Deposits	9,878,020	9,032,580
Total Liabilities	451,242,787	451,689,637
Partners' Capital	(64,306,033)	(59,869,357)	$ (59,372,762)	$ (49,292,607)
Total Liabilities and Partners' Capital	386,936,754	391,820,280
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	(25,963,031)	$ (24,419,129)
Investment Properties
ASSETS
Rental Properties	104,760,781		109,473,753
Cash & Cash Equivalents	4,400,626		4,005,493
Rent Receivable	448,456		475,307
Real Estate Tax Escrows	274,066		207,892
Prepaid Expenses & Other Assets	3,409,066		3,491,947
Total Assets	113,292,995		117,654,392
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	166,031,339		166,148,408
Accounts Payable & Accrued Expense	1,381,218		1,098,219
Advance Rental Pmts & Security Deposits	4,859,356		5,063,187
Total Liabilities	172,271,913		172,309,814
Partners' Capital	(58,978,918)		(54,655,422)
Total Liabilities and Partners' Capital	113,292,995		117,654,392
Investment in Unconsolidated Joint Ventures	1,435,154		1,463,665
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	(25,963,031)		(24,097,346)
Total Investment in Unconsolidated Joint Ventures (Net)	$ (24,527,877)		$ (22,633,681)
Total units/ condominiums
Total | property	690		865
Units to be retained | property	690		690
Total number of units sold | property	175		175
Investment Properties | Residential buildings
Total units/ condominiums
Total | property	687		862
Investment Properties | Commercial
Total units/ condominiums
Total | property	3		3
Hamilton Essex 81
ASSETS
Rental Properties	$ 5,614,141		$ 6,045,672
Cash & Cash Equivalents	997,622		709,651
Rent Receivable	211,562		208,605
Real Estate Tax Escrows	67,281		73,643
Prepaid Expenses & Other Assets	326,548		319,717
Total Assets	7,217,154		7,357,288
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	9,968,975		9,955,186
Accounts Payable & Accrued Expense	165,149		105,777
Advance Rental Pmts & Security Deposits	309,790		282,378
Total Liabilities	10,443,914		10,343,341
Partners' Capital	(3,226,760)		(2,986,053)
Total Liabilities and Partners' Capital	$ 7,217,154		$ 7,357,288
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,613,380)		$ (1,493,027)
Total units/ condominiums
Total	49		49				48
Units to be retained | property	49		49
Hamilton Essex 81 | Residential buildings
Total units/ condominiums
Total | property	48		48
Hamilton Essex 81 | Commercial
Total units/ condominiums
Total | property	1		1
Hamilton Essex Development
ASSETS
Rental Properties	$ 2,584,435		$ 2,586,925
Cash & Cash Equivalents	60,182		113,595
Rent Receivable	80,184		75,159
Prepaid Expenses & Other Assets	50,175		56,859
Total Assets	2,774,976		2,832,538
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable & Accrued Expense	1,500		1,713
Total Liabilities	1,500		1,713
Partners' Capital	2,773,476		2,830,825
Total Liabilities and Partners' Capital	$ 2,774,976		$ 2,832,538
Partners' Capital %-NERA	50.00%		50.00%
Investment in Unconsolidated Joint Ventures	$ 1,386,738		$ 1,415,411
Total units/ condominiums
Total | property	1		1
Units to be retained | property	1		1
Hamilton Essex Development | Commercial
Total units/ condominiums
Total | property	1		1
345 Franklin
ASSETS
Rental Properties	$ 4,650,472		$ 4,897,693
Cash & Cash Equivalents	374,750		217,415
Rent Receivable			3,531
Real Estate Tax Escrows	23,412		34,630
Prepaid Expenses & Other Assets	104,393		118,903
Total Assets	5,153,027		5,272,172
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	8,565,993		8,785,710
Accounts Payable & Accrued Expense	124,185		64,101
Advance Rental Pmts & Security Deposits	335,465		303,449
Total Liabilities	9,025,643		9,153,260
Partners' Capital	(3,872,616)		(3,881,088)
Total Liabilities and Partners' Capital	$ 5,153,027		$ 5,272,172
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,936,308)		$ (1,940,544)
Total units/ condominiums
Total	40		40								40
Units to be retained | property	40		40
345 Franklin | Residential buildings
Total units/ condominiums
Total | property	40		40
Hamilton 1025
ASSETS
Rental Properties	$ 76,659		$ 79,923
Cash & Cash Equivalents	16,853		13,122
Rent Receivable	4,931		4,898
Prepaid Expenses & Other Assets	1,049		630
Total Assets	99,492		98,573
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable & Accrued Expense	2,660		2,064
Total Liabilities	2,660		2,064
Partners' Capital	96,832		96,509
Total Liabilities and Partners' Capital	$ 99,492		$ 98,573
Partners' Capital %-NERA	50.00%		50.00%
Investment in Unconsolidated Joint Ventures	$ 48,416		$ 48,254
Total units/ condominiums
Total	176		176					176
Units to be retained	1		1					(49)
Total number of units sold | property	175		175
Hamilton 1025 | Residential buildings
Total units/ condominiums
Total | property	175		175
Hamilton 1025 | Commercial
Total units/ condominiums
Total | property	1		1
Hamilton Minuteman
ASSETS
Rental Properties	$ 4,324,746		$ 4,581,892
Cash & Cash Equivalents	251,310		252,822
Rent Receivable	2,589		16,493
Real Estate Tax Escrows	43,542		29,447
Prepaid Expenses & Other Assets	42,306		26,635
Total Assets	4,664,493		4,907,289
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	5,932,827		5,924,643
Accounts Payable & Accrued Expense	74,550		53,140
Advance Rental Pmts & Security Deposits	192,370		195,781
Total Liabilities	6,199,747		6,173,564
Partners' Capital	(1,535,254)		(1,266,275)
Total Liabilities and Partners' Capital	$ 4,664,493		$ 4,907,289
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (767,627)		$ (633,138)
Total units/ condominiums
Total	42		42						42
Units to be retained | property	42		42
Hamilton Minuteman | Residential buildings
Total units/ condominiums
Total | property	42		42
Hamilton on Main Apts
ASSETS
Rental Properties	$ 12,985,301		$ 13,896,435
Cash & Cash Equivalents	611,236		808,436
Rent Receivable	9,044		29,724
Real Estate Tax Escrows	139,831		70,172
Prepaid Expenses & Other Assets	248,929		176,283
Total Assets	13,994,341		14,981,050
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	16,881,274		16,865,222
Accounts Payable & Accrued Expense	196,773		168,858
Advance Rental Pmts & Security Deposits	515,070		455,979
Total Liabilities	17,593,117		17,490,059
Partners' Capital	(3,598,776)		(2,509,009)
Total Liabilities and Partners' Capital	$ 13,994,341		$ 14,981,050
Partners' Capital %-NERA	50.00%		50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,799,388)		$ (1,254,505)
Total units/ condominiums
Total	148		148							280
Units to be retained | property	148		148
Hamilton on Main Apts | Residential buildings
Total units/ condominiums
Total | property	148		148
Dexter Park
ASSETS
Rental Properties	$ 74,525,027		$ 77,385,213
Cash & Cash Equivalents	2,088,673		1,890,452
Rent Receivable	140,146		136,897
Prepaid Expenses & Other Assets	2,635,666		2,792,920
Total Assets	79,389,512		82,205,482
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	124,682,270		124,617,647		$ 82,000,000
Accounts Payable & Accrued Expense	816,401		702,566
Advance Rental Pmts & Security Deposits	3,506,661		3,825,600
Total Liabilities	129,005,332		129,145,813
Partners' Capital	(49,615,820)		(46,940,331)
Total Liabilities and Partners' Capital	$ 79,389,512		$ 82,205,482
Partners' Capital %-NERA	40.00%		40.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (19,846,328)		$ (18,776,132)
Total units/ condominiums
Total	409		409			409
Units to be retained | property	409		409
Dexter Park | Residential buildings
Total units/ condominiums
Total | property	409		409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	May 31, 2018
Revenues
Rental Income	$ 17,964,963	$ 16,825,737	$ 35,533,690	$ 33,285,743
Laundry and Sundry Income	136,073	106,191	259,032	226,593
Total Revenues	18,101,036	16,931,928	35,792,722	33,512,336
Expenses
Administrative	867,721	623,877	1,604,822	1,331,663
Depreciation and Amortization	3,961,432	4,076,597	7,807,693	8,097,365
Management Fees	665,073	672,370	1,362,837	1,345,454
Operating	1,721,233	1,522,250	4,255,029	4,198,458
Renting	244,434	150,943	436,019	320,332
Repairs and Maintenance	3,479,071	2,974,734	6,241,845	5,254,385
Taxes and Insurance	2,423,722	2,300,235	4,894,401	4,576,808
Total Expenses	13,362,686	12,321,006	26,602,646	25,124,465
Income Before Other Income (Expense)	4,738,350	4,610,922	9,190,076	8,387,871
Other Income (Loss)
Interest expense	(3,925,863)	(3,623,714)	(7,825,103)	(7,078,349)
Other (expenses)	92,810	(834,538)	92,823	(834,533)
Total Other Income (Expense)	(2,513,746)	(4,367,937)	(5,210,735)	(7,802,470)
Net Income	2,224,604	242,985	3,979,341	585,401
Mortgage Notes Payable	409,834,512		409,834,512		$ 410,966,199
Investment Properties
Revenues
Rental Income	6,226,054	5,671,573	12,395,623	11,225,850
Laundry and Sundry Income	(2,659)	30,338	51,473	73,038
Total Revenues	6,223,395	5,701,911	12,447,096	11,298,888
Expenses
Administrative	114,053	82,741	188,518	182,828
Depreciation and Amortization	1,473,063	1,500,155	2,934,073	2,991,057
Management Fees	162,886	161,799	333,900	323,500
Operating	501,744	418,038	1,153,996	1,005,880
Renting	77,563	44,098	142,932	136,539
Repairs and Maintenance	863,313	711,039	1,434,354	1,305,420
Taxes and Insurance	950,102	910,005	1,879,474	1,818,850
Total Expenses	4,142,724	3,827,875	8,067,247	7,764,074
Income Before Other Income (Expense)	2,080,671	1,874,036	4,379,849	3,534,814
Other Income (Loss)
Interest expense	(1,804,559)	(1,687,357)	(3,573,231)	(3,347,285)
Total Other Income (Expense)	(1,804,559)	(1,687,357)	(3,573,231)	(3,347,285)
Net Income	276,112	186,679	806,618	187,529
Proportionate share of net income (loss)	119,664	90,283	347,368	110,351
Mortgage Notes Payable	166,031,339	166,148,408	166,031,339	166,148,408
Investment Properties | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	46,087	78,041	123,593	176,685
Investment Properties | NERA 40%
Other Income (Loss)
Proportionate share of net income (loss)	73,577	12,242	223,774	(66,334)
Hamilton Essex 81
Revenues
Rental Income	411,189	318,903	850,177	760,751
Laundry and Sundry Income	337		3,040	5,394
Total Revenues	411,526	318,903	853,217	766,145
Expenses
Administrative	5,791	4,099	10,531	8,873
Depreciation and Amortization	117,146	119,593	234,133	238,779
Management Fees	14,652	18,611	33,744	37,096
Operating	67,170	66,248	150,518	119,220
Renting	27,770	8,437	30,945	14,065
Repairs and Maintenance	41,487	34,939	95,955	69,868
Taxes and Insurance	70,311	66,641	141,245	133,102
Total Expenses	344,327	318,568	697,071	621,003
Income Before Other Income (Expense)	67,199	335	156,146	145,142
Other Income (Loss)
Interest expense	(186,539)	(79,158)	(358,852)	(141,388)
Total Other Income (Expense)	(186,539)	(79,158)	(358,852)	(141,388)
Net Income	(119,340)	(78,823)	(202,706)	3,754
Mortgage Notes Payable	9,968,975	9,955,186	9,968,975	9,955,186
Hamilton Essex 81 | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	(59,670)	(39,411)	(101,353)	1,877
Hamilton Essex Development
Revenues
Rental Income	60,471	89,269	120,942	175,371
Total Revenues	60,471	89,269	120,942	175,371
Expenses
Administrative	750	798	1,500	1,548
Depreciation and Amortization	2,928	2,928	5,855	5,855
Management Fees	1,589	4,208	4,768	7,526
Repairs and Maintenance		3,180		3,180
Taxes and Insurance	15,224	15,518	30,681	31,508
Total Expenses	20,491	26,632	42,804	49,617
Income Before Other Income (Expense)	39,980	62,637	78,138	125,754
Other Income (Loss)
Net Income	39,980	62,637	78,138	125,754
Hamilton Essex Development | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	19,990	31,319	39,070	62,878
345 Franklin
Revenues
Rental Income	422,123	368,001	834,013	714,821
Laundry and Sundry Income		125		125
Total Revenues	422,123	368,126	834,013	714,946
Expenses
Administrative	9,574	8,468	13,043	19,992
Depreciation and Amortization	86,560	86,777	172,866	173,191
Management Fees	16,495	14,306	32,632	28,109
Operating	31,655	14,822	57,035	36,715
Renting	9,943	7,046	18,200	17,206
Repairs and Maintenance	38,327	29,226	62,538	83,758
Taxes and Insurance	47,111	43,744	94,286	87,467
Total Expenses	239,665	204,389	450,600	446,438
Income Before Other Income (Expense)	182,458	163,737	383,413	268,508
Other Income (Loss)
Interest expense	(86,515)	(87,963)	(173,474)	(176,400)
Total Other Income (Expense)	(86,515)	(87,963)	(173,474)	(176,400)
Net Income	95,943	75,774	209,939	92,108
Mortgage Notes Payable	8,565,993	8,785,710	8,565,993	8,785,710
345 Franklin | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	47,972	37,888	104,970	46,054
Hamilton 1025
Revenues
Rental Income	24,867	25,752	49,735	50,122
Total Revenues	24,867	25,752	49,735	50,122
Expenses
Administrative	951	699	1,871	1,349
Depreciation and Amortization	816	816	1,632	1,632
Management Fees	994	1,095	1,989	2,053
Operating	75		142	1,165
Operating		(8)
Taxes and Insurance	4,203	4,712	8,704	9,120
Total Expenses	7,039	7,314	14,338	15,319
Income Before Other Income (Expense)	17,828	18,438	35,397	34,803
Other Income (Loss)
Net Income	17,828	18,438	35,397	34,803
Hamilton 1025 | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	8,914	9,219	17,699	17,402
Hamilton Minuteman
Revenues
Rental Income	325,228	304,499	638,730	598,537
Laundry and Sundry Income		1,076		776
Total Revenues	325,228	305,575	638,730	599,313
Expenses
Administrative	5,607	3,404	9,482	5,755
Depreciation and Amortization	84,591	84,443	168,308	168,403
Management Fees	12,857	12,136	25,663	23,529
Operating	30,856	19,617	68,372	75,203
Renting	205	3,212	1,573	7,014
Repairs and Maintenance	23,299	28,777	44,233	44,990
Taxes and Insurance	35,042	37,950	70,400	75,678
Total Expenses	192,457	189,539	388,031	400,572
Income Before Other Income (Expense)	132,771	116,036	250,699	198,741
Other Income (Loss)
Interest expense	(59,358)	(59,390)	(118,108)	(118,129)
Total Other Income (Expense)	(59,358)	(59,390)	(118,108)	(118,129)
Net Income	73,413	56,646	132,591	80,612
Mortgage Notes Payable	5,932,827	5,924,643	5,932,827	5,924,643
Hamilton Minuteman | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	36,708	28,324	66,296	40,306
Hamilton on Main Apts
Revenues
Rental Income	963,511	915,736	1,886,063	1,806,118
Laundry and Sundry Income	(15,429)	6,599		17,150
Total Revenues	948,082	922,335	1,886,063	1,823,268
Expenses
Administrative	26,269	11,059	38,973	35,579
Depreciation and Amortization	265,496	268,850	530,006	537,314
Management Fees	36,933	35,145	74,129	72,517
Operating	95,322	83,136	224,264	191,826
Renting	12,509	10,591	24,455	25,580
Repairs and Maintenance	183,276	172,036	336,730	305,954
Taxes and Insurance	130,566	130,695	262,939	261,364
Total Expenses	750,371	711,512	1,491,496	1,430,134
Income Before Other Income (Expense)	197,711	210,823	394,567	393,134
Other Income (Loss)
Interest expense	(213,366)	(189,421)	(400,743)	(376,798)
Total Other Income (Expense)	(213,366)	(189,421)	(400,743)	(376,798)
Net Income	(15,655)	21,402	(6,176)	16,336
Mortgage Notes Payable	16,881,274	16,865,222	16,881,274	16,865,222
Hamilton on Main Apts | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)	(7,827)	10,702	(3,088)	8,168
Dexter Park
Revenues
Rental Income	4,018,665	3,649,413	8,015,963	7,120,130
Laundry and Sundry Income	12,433	22,538	48,433	49,593
Total Revenues	4,031,098	3,671,951	8,064,396	7,169,723
Expenses
Administrative	65,111	54,214	113,118	109,732
Depreciation and Amortization	915,526	936,748	1,821,273	1,865,883
Management Fees	79,366	76,298	160,975	152,670
Operating	276,666	234,223	653,665	581,751
Renting	27,136	14,812	67,759	72,674
Repairs and Maintenance	576,924	442,881	894,898	797,670
Taxes and Insurance	647,645	610,745	1,271,219	1,220,611
Total Expenses	2,588,374	2,369,921	4,982,907	4,800,991
Income Before Other Income (Expense)	1,442,724	1,302,030	3,081,489	2,368,732
Other Income (Loss)
Interest expense	(1,258,781)	(1,271,425)	(2,522,054)	(2,534,570)
Total Other Income (Expense)	(1,258,781)	(1,271,425)	(2,522,054)	(2,534,570)
Net Income	183,943	30,605	559,435	(165,838)
Mortgage Notes Payable	124,682,270	124,617,647	124,682,270	124,617,647		$ 82,000,000
Dexter Park | NERA 40%
Other Income (Loss)
Proportionate share of net income (loss)	$ 73,577	$ 12,242	$ 223,774	$ (66,334)
NERA 50%
Other Income (Loss)
Ownership interest (as a percent)	50.00%	50.00%	50.00%	50.00%
NERA 40%
Other Income (Loss)
Ownership interest (as a percent)	40.00%	40.00%	40.00%	40.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	May 31, 2018	Oct. 13, 2016
Annual maturities of mortgage debt
2024	$ 3,062,000
2025	3,578,000
2026	21,957,000
2027	6,620,000
2028	23,220,000
Thereafter	354,367,000
Total	412,804,000
Less: unamortized deferred financing costs	(2,969,000)
Secured Debt	$ 409,834,512	$ 410,966,199
Weighted average interest rate (as a percent)	4.21%
Effective interest rate (as a percent)	4.28%
Investment Properties
Annual maturities of mortgage debt
2024	$ 235,293
2025	17,144,563
2026	10,254,197
2027	264,211
2028	274,619
Thereafter	138,326,402
Total	166,499,285
Less: unamortized deferred financing costs	(467,946)
Secured Debt	166,031,339		$ 166,148,408
Hamilton Essex 81
Annual maturities of mortgage debt
2026	10,000,000
Total	10,000,000
Less: unamortized deferred financing costs	(31,025)
Secured Debt	9,968,975		9,955,186
345 Franklin
Annual maturities of mortgage debt
2024	235,293
2025	244,563
2026	254,197
2027	264,211
2028	274,619
Thereafter	7,326,402
Total	8,599,285
Less: unamortized deferred financing costs	(33,292)
Secured Debt	8,565,993		8,785,710
Hamilton Minuteman
Annual maturities of mortgage debt
Thereafter	6,000,000
Total	6,000,000
Less: unamortized deferred financing costs	(67,173)				$ (123,000)
Secured Debt	5,932,827		5,924,643
Hamilton on Main Apts
Annual maturities of mortgage debt
2025	16,900,000
Total	16,900,000
Less: unamortized deferred financing costs	(18,726)
Secured Debt	16,881,274		16,865,222
Dexter Park
Annual maturities of mortgage debt
Thereafter	125,000,000
Total	125,000,000
Less: unamortized deferred financing costs	(317,730)
Secured Debt	$ 124,682,270		$ 124,617,647	$ 82,000,000

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EMPLOYEE BENEFIT 401(k) PLANS (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
EMPLOYEE BENEFIT 401(k) PLANS
Maximum deferral percentage	90.00%
Matching contribution (as a percent)	50.00%
Percent of compensation	6.00%
Employee contribution vesting percentage	100.00%
Years of service required to vest in employer contributions	2 years
Years of service required to vest 100% in employer contributions	6 years
Annual vesting percentage	20.00%
Total plan expense	$ 32,000

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SUBSEQUENT EVENTS (Details)		1 Months Ended	6 Months Ended		187 Months Ended	190 Months Ended
	Jul. 14, 2023 USD ($) property	Aug. 08, 2023 USD ($) $ / item shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($) shares	Mar. 31, 2023 USD ($) shares	Jun. 30, 2023 $ / item shares
Subsequent events
Number of depository receipts repurchased | shares					1,502,734
Repurchase price of depository receipts (in dollars per receipt) | $ / item						30.54
Total cost of repurchase | $			$ 1,289,374	$ 3,688,961	$ 51,785,000
Units required to be repurchased (in shares) | shares			594	1,574
Class B
Subsequent events
Number of depository receipts repurchased | shares						4,160
Total cost of repurchase | $			$ 244,753	$ 700,523
General Partnership
Subsequent events
Number of depository receipts repurchased | shares						219
Total cost of repurchase | $			$ 12,882	$ 36,869
Units required to be repurchased (in shares) | shares			6
Subsequent event
Subsequent events
Number of depository receipts repurchased | shares		1,554
Repurchase price of depository receipts (in dollars per receipt) | $ / item		72.80
Price per unit of depository receipts | $ / item		2,183.89
Total cost of repurchase | $		$ 113,476
Quarterly distribution (per unit) | $ / item		12.00
Quarterly distributions per depositary receipt (in dollars per receipt) | $ / item		0.40
Subsequent event | Residential buildings
Subsequent events
Number of units | property	52
Purchase price | $	$ 27,500,000
Subsequent event | Class B
Subsequent events
Value of units required to be repurchased | $		$ 26,906
Subsequent event | General Partnership
Subsequent events
Units required to be repurchased (in shares) | shares		1
Value of units required to be repurchased | $		$ 1,416