10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 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 (State or other jurisdiction of incorporation or organization)	04-2619298 (I.R.S. employer identification no.)
39 Brighton Avenue, Allston, Massachusetts (Address of principal executive offices)	02134 (Zip Code)
Registrant’s telephone number, including area code: (617) 783-0039
Securities registered pursuant to Section 12(b) of the Act:
Depositary Receipts (Title of each Class)	NYSE MKT (Name of each Exchange on which Registered)
Securities registered pursuant to Section 12(g) of the Act:
Class A Limited Partnership Units (Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendments to this Form 10-K ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by a check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

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

At June 30, 2023, the aggregate market value of the registrant’s securities held by non-affiliates of the registrant was $141,482,628 based on the closing price of the registrant’s traded securities on the NYSE MKT Exchange on such date. For this computation, the Registrant has excluded the market value of all Depositary Receipts reported as beneficially owned by executive officers and directors of the General Partner of the Registrant; such exclusion shall not be deemed to constitute an admission that any such person is an affiliate of the Registrant.

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

As of March 12, 2024, there were 93,853 of the registrant’s Class A units (2,815,601 Depositary Receipts) of limited partnership issued and outstanding and 22,290 Class B units issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE: None

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

TABLE OF CONTENTS

		PAGE
PART I
Item 1.	Business	3
Item 1A.	Risk Factors	8
Item 1B.	Unresolved Staff Comments	13
Item 1C.	Cybersecurity	13
Item 2.	Properties	14
Item 3.	Legal Proceedings	20
Item 4.	Mine Safety Disclosure	21
PART II
Item 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	21
Item 6.	Reserved	23
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 8.	Consolidated Financial Statements and Supplementary Data	40
Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	40
Item 9A.	Controls and Procedures	40
Item 9B.	Other Information	40
Item 9C.	Disclosure Regarding Foreign Jurisdiction That Prevent Inspections	41
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	41
Item 11.	Executive Compensation	45
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	46
Item 13.	Certain Relationships and Related Transactions, and Director Independence	48
Item 14.	Principal Accounting Fees and Services	49
PART IV
Item 15.	Exhibits and Financial Statement Schedules	50
Item 16.	Form 10-K Summary	50
Exhibit Index		S-1
SIGNATURES		S-6

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

PART I

ITEM 1. BUSINESS

General

New England Realty Associates Limited Partnership (“NERA” or the “Partnership”), a Massachusetts Limited Partnership, was formed on August 12, 1977 as the successor to five real estate limited partnerships (collectively, the “Colonial Partnerships”), which filed for protection under Chapter XII of the Federal Bankruptcy Act in September 1974. The bankruptcy proceedings were terminated in late 1984. In July 2004, the General Partner extended the termination date of the Partnership until 2057.

The authorized capital of the Partnership is represented by three classes of partnership units (“Units”). There are two categories of limited partnership interests (“Class A Units” and “Class B Units”) and one category of general partnership interests (the “General Partnership Units”). The Class A Units were initially issued to creditors and limited partners of the Colonial Partnerships and have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Each Class A Unit is exchangeable for 30 publicly traded Depositary Receipts (“Depositary Receipts”), which are currently listed on the NYSE American and are registered under Section 12(b) of the Exchange Act. The Class B Units were issued to the original general partners of the Partnership. The General Partnership Units are held by the current general partner of the Partnership, NewReal, Inc. (the “General Partner” or “NewReal”). The Class A Units represent an 80% ownership interest, the Class B Units represent a 19% ownership interest, and the General Partnership Units represent a 1% ownership interest.

The Partnership is engaged in the business of acquiring, developing, holding for investment, operating and selling real estate. The Partnership, directly or through 31 subsidiary limited partnerships or limited liability companies, owns and operates various residential apartments, condominium units and commercial properties located in Massachusetts and New Hampshire. As used herein, the Partnership’s subsidiary limited partnerships and limited liabilities companies are each referred to as a “Subsidiary Partnership” and are collectively referred to as the “Subsidiary Partnerships.”

The Partnership owns between a 99.67% and 100% interest in each of the Subsidiary Partnerships, except in seven limited liability companies (collectively, the “Investment Properties” or “Joint Ventures”) in which the Partnership has between a 40% and 50% ownership interest. Jameson Brown and Harley Brown indirectly collectively own between 47.6% and 59%, and five other current and past employees of Hamilton own collectively between 0% and 2.4%, respectively of the Joint Ventures. The Partnership’s interest in the Investment Properties is accounted for on the equity method in the Consolidated Financial Statements. See Note 1 to the Consolidated Financial Statements—“Principles of Consolidation.” See Note 15 to the Consolidated Financial Statements—“Investment in Unconsolidated Joint Ventures” for a description of the properties and their operations. Of those Subsidiary Partnerships not wholly owned by the Partnership, except for the Investment Properties, the remaining ownership interest is held by an unaffiliated third party. In each such case, the third party has entered into an agreement with the Partnership, pursuant to which any benefit derived from the third party’s ownership interest in the applicable Subsidiary Partnerships will be returned to the Partnership.

The long-term goals of the Partnership are to manage, rent and improve its properties and to acquire additional properties with income and capital appreciation potential as suitable opportunities arise. When appropriate, the Partnership may sell or refinance selected properties. Proceeds from any such sales or refinancing will be used to reduce debt, reinvest in acquisitions of other properties, make distributions to the partners, repurchase equity interests, or use for operating expenses or reserves, as determined by the General Partner.

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Operations of the Partnership

As of December 31, 2023, Sally Michael and David Reier, the Trustees of the estate of Harold Brown, held voting control over the capital stock of NewReal, the General Partner of the Partnership. The estate was closed on January 2, 2024, whereupon the capital stock of NewReal previously owned by the estate of Harold Brown were transferred to JPB Real Estate LLC and Maisie Brown LLC, entities controlled by Jameson Brown and Harley Brown respectively, with each entity acquiring 37.5% of the voting control of NewReal at that time.

The General Partner has engaged The Hamilton Company, Inc. (the “Hamilton Company” or “Hamilton”) to perform general management functions for the Partnership’s properties in exchange for management fees. The Hamilton Company is wholly owned by JPB Real Estate LLC and Maisie Brown LLC. The Partnership, the Subsidiary Partnerships, and the Investment Properties currently contract with the Hamilton Company for 53 individuals at the Properties (as defined below) and 11 individuals at the Joint Ventures who are primarily involved in the supervision and maintenance of specific properties. The General Partner has no employees.

As of February 1, 2024, the Partnership and its Subsidiary Partnerships owned 2,943 residential apartment units in 27 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, the “Condominium Units”). The Apartment Complexes, the Condominium Units and the Investment Properties are located primarily in the metropolitan Boston area of Massachusetts.

As of February 1, 2024, the Subsidiary Partnerships also owned two commercial shopping centers in Framingham, Massachusetts, one commercial building in Newton, Massachusetts, one commercial building in Brookline, Massachusetts and commercial space in mixed-use buildings in Boston, Brockton and Newton, Massachusetts, totaling approximately 130,000 square feet of commercial space. These properties are referred to collectively as the “Commercial Properties.” See Note 2 to the Consolidated Financial Statements for more information.

Additionally, as of February 1, 2024, the Partnership owned a 40-50% interest in 7 residential and mixed use complexes, the Investment Properties, with a total of 688 residential units, one commercial unit, and a 50 car parking lot. See Note 15 to the Consolidated Financial Statements for additional information on these investments.

The Apartment Complexes, Investment Properties, Condominium Units and Commercial Properties are referred to collectively as the “Properties.”

The Brown family entities, which include JPB Real Estate LLC and Maisie Brown LLC, entities controlled by Jameson Brown and Harley Brown respectively, and, in certain cases, Ronald Brown, and officers and employees of the Hamilton Company own or have owned interests in certain of the Properties, Subsidiary Partnerships and Joint Ventures. See “Item 13. Certain Relationships, Related Transactions and Director Independence.”

The leasing of real estate in the metropolitan Boston area of Massachusetts is highly competitive. The Apartment Complexes, Condominium Units and the Investment Properties must compete for tenants with other residential apartments and condominium units in the areas in which they are located. The Commercial Properties must compete for commercial tenants with other shopping malls and office buildings in the areas in which they are located. Thus, the level of competition at each Property depends on how many other similarly situated properties are in its vicinity. In addition to Item 1A, Risk Factors, see “Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors that May Affect Future Results.”

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The Second Amended and Restated Contract of Limited Partnership of the Partnership (the “Partnership Agreement”) authorizes the General Partner to acquire real estate and real estate related investments from or in participation with either or both of the Brown family related entities and Ronald Brown, or their affiliates, upon the satisfaction of certain terms and conditions, including the approval of the Partnership’s Advisory Committee and limitations on the price paid by the Partnership for such investments. The Partnership Agreement also permits the Partnership’s limited partners and the General Partner to make loans to the Partnership, subject to certain limitations on the rate of interest that may be charged to the Partnership. Except for the foregoing, the Partnership does not have any policies prohibiting any limited partner, General Partner or any other person from having any direct or indirect pecuniary interest in any investment to be acquired or disposed of by the Partnership or in any transaction to which the Partnership is a party or has an interest in or from engaging, for their own account, in business activities of the types conducted or to be conducted by the Partnership. The General Partner is not limited in the number or amount of mortgages which may be  placed on any Property, nor is there a policy limiting the percentage of Partnership assets which may be invested in any specific Property.

Unit Distributions

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 28, 2024. In addition to the quarterly distribution, there will be a special distribution of $48.00 per Class A unit ($1.60 per Receipt). In 2023 the Partnership paid an aggregate distribution of $84.00 Unit ($2.80 per Receipt) for a total payment of $9,954,888 in 2023. In 2022 the Partnership paid a total distribution of an aggregate $76.80 Unit ($2.56 per Receipt), for a total payment of $9,267,981.

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (the “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 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, until 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 Agreement. Repurchases of Depositary Receipts or 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 December 31, 2023, the Partnership has repurchased 1,532,234 Depositary Receipts at an average price of $31.72 per receipt (or $951.52 per underlying Class A Unit), 4,394 Class B Units and 231 General Partnership Units, both at an average price of $1,259.00 per Unit, totaling approximately $54,421,000, inclusive of brokerage fees paid by the Partnership.

Property Transactions

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. 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”). See schedule in Note 5, Mortgage Notes Payable, for the details of the transaction as it relates to the specific properties.

The Partnership used the proceeds from the Facility Amendment to pay down approximately $65,300,000 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.

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On June 16, 2022, the Partnership entered into an amendment to the Facility Agreement (the “Facility Amendment”). The Facility Amendment included an additional advance in the amount of $80,284,000 at a fixed interest rate of 4.33%.

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. The remaining balance of approximately $42,384,000 will be used for general partnership purposes.

On October 14, 2022, the Partnership entered into a loan agreement with Brookline Bank (the “Brookline Agreement”), which refinanced its loan on 659-665 Worcester Road, Framingham, MA. The Brookline 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 two 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%.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, MA 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 for in-place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use 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, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

During 2023, the Partnership and its Subsidiary Partnerships completed improvements to certain of the Properties at a total cost of approximately $9,289,000. These improvements were funded from cash reserves and, to some extent, escrow accounts established in connection with the financing or refinancing of the applicable Properties. These sources have been adequate to fully fund improvements. The most significant improvements were made at 1144 Commonwealth, Hamilton Oaks, School Street, Redwood Hills, Westgate Apartments, and Hamilton Green, at a cost of $1,982,000, $1,687,000, $701,000, $468,000, $431,000, and $421,000 respectively. The Partnership plans to invest approximately $22,284,000 in capital improvements in 2024. This amount includes approximately $10,067,000 toward the development of a 72 unit apartment complex at Mill Street Development.

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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 extended the credit line until October 29, 2024. The commitment amount was for $25 million but is restricted to $17 million during the modification period. The modification period covers the current period and phased out on 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. The portfolio’s debt yield fell below the minimum of 9.0% to 8.6%. Consequently, as of December 31, 2023, the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted to draw down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement line of credit. See Note 19, Subsequent Events, for additional information.

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 Partnerships and Joint Ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

Advisory Committee

As of December 31, 2023, the Advisory Committee members were Robert Nahigian and David Ross, limited partners of the Partnership. These Advisory Committee members are not affiliated with the General Partner. The Advisory Committee meets with the General Partner to review the progress of the Partnership, assist the General Partner with policy formation, review the appropriateness, timing and amount of proposed distributions, approve or reject proposed acquisitions and investments with affiliates, and advise the General Partner on various other Partnership affairs. Per the Partnership Agreement, the Advisory Committee has no binding power except that it must approve certain investments and acquisitions or sales by the Partnership from or with affiliates of the Partnership.

Available Information

The Partnership’s website is www.thehamiltoncompany.com. On its website, the Partnership makes available, free of charge, its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended. These forms are made available as soon as reasonably practical after the Partnership electronically files or furnishes such materials to the Securities and Exchange Commission. Any shareholder may obtain copies of these documents, free of charge, by sending a request in writing to: Director of Investor Relations, New England Realty Associates Limited Partnership, 39 Brighton Avenue, Allston, MA 02134.

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ITEM 1A. RISK FACTORS

We are subject to certain risks and uncertainties as described below. These risks and uncertainties may not be the only ones we face; there may be additional risks that we do not presently know of or that we currently consider immaterial. All of these risks could adversely affect our business, financial condition, results of operations and cash flows. Our ability to pay distributions on, and the market price of, our equity securities may be adversely affected if any of such risks are realized. All investors should consider the following risk factors before deciding to purchase or sell securities of the Partnership.

We are subject to risks inherent in the ownership of real estate. We own and manage multifamily apartment complexes and commercial properties that are subject to varying degrees of risk generally incident to the ownership of real estate. Our financial condition, the value of our properties and our ability to make distributions to our shareholders will be dependent upon our ability to operate our properties in a manner sufficient to generate income in excess of operating expenses and debt service charges, which may be affected by the following risks, some of which are discussed in more detail below:

● changes in the economic climate in the markets in which we own and manage properties, including interest rates, the overall level of economic activity, the availability of consumer credit and mortgage financing, unemployment rates and other factors;

● a lessening of demand for the multifamily and commercial units that we own;

● competition from other available multifamily residential and commercial units and changes in market rental rates;

● development by competitors of competing multi-family communities;

● increases in property and liability insurance costs;

● changes in real estate taxes and other operating expenses (e.g., cleaning, utilities, repair and maintenance costs, insurance and administrative costs, security, landscaping, pest control, staffing, snow removal and other general costs);

● changes in laws and regulations affecting properties (including tax, environmental, zoning and building codes, and housing laws and regulations);

● weather and other conditions that might adversely affect operating expenses;

● expenditures that cannot be anticipated, such as utility rate and usage increases, unanticipated repairs and real estate tax valuation reassessments or mileage rate increases;

● our inability to control operating expenses or achieve increases in revenues;

● the results of litigation filed or to be filed against us;

● risks related to our joint ventures;

● risks of personal injury claims and property damage related to mold claims because of diminished insurance coverage;

● catastrophic property damage losses that are not covered by our insurance;

● risks associated with property acquisitions such as environmental liabilities, among others;

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● changes in market conditions that may limit or prevent us from acquiring or selling properties; and

● the perception of tenants and prospective tenants as to the attractiveness, convenience and safety of our properties or the neighborhoods in which they are located.

We are dependent on rental income from our multifamily apartment complexes and commercial properties. If we are unable to attract and retain tenants or if our tenants are unable to pay their rental obligations, our financial condition and funds available for distribution to our shareholders will be adversely affected.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer. Although we employ a number of measures to prevent, detect and mitigate cybersecurity attacks, our business is at risk from and may be impacted by such attacks as there is no guarantee such efforts will be successful in preventing a cyber-attack. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks, and there can be no assurance that our actions, security measures, and controls designed to prevent, detect, or respond to intrusion; to limit access to data; to prevent loss, destruction, alteration, or exfiltration of business information; or to limit the negative impact from such attacks can provide absolute security against a cybersecurity incident. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, disruption to our operations, increased cybersecurity insurance premiums and damage our reputation, which could adversely affect our business. Our Audit Committee is responsible for overseeing our cybersecurity and data privacy risks. Our cybersecurity program is led by the Hamilton Company’s Chief Financial Officer, who, along with the Hamilton Company’s Director of Information Technology, provide regular updates each quarter to the Audit Committee regarding this program, including information about the cybersecurity threat landscape, investments in infrastructure and opportunities to protect and enhance the Company’s systems and security of products and operations. In addition, the Board of Directors of the General Partner (the “Board” or “Board of Directors”) receives periodic briefings from management regarding cybersecurity activities and initiatives.

Our multifamily apartment complexes and commercial properties are subject to competition. Our properties and joint venture investments are located in developed areas that include other properties. The properties also compete with other rental alternatives, such as condominiums, single and multifamily rental homes, owner occupied single and multifamily homes, and commercial properties in attracting tenants. This competition may affect our ability to attract and retain residents and to increase or maintain rental rates.

The properties we own are concentrated in Eastern Massachusetts and Southern New Hampshire. Our performance, therefore, is linked to economic conditions and the market for available rental housing and commercial space in these states. A decline in the market for apartment housing and/or commercial properties may adversely affect our financial condition, results of operations and ability to make distributions to our shareholders.

Our insurance may not be adequate to cover certain risks. There are certain types of risks, generally of a catastrophic nature, such as earthquakes, floods, windstorms, act of war and terrorist attacks that may be uninsurable, or are not economically insurable, or are not fully covered by insurance. Moreover, certain risks, such as mold and environmental exposures, generally are not covered by our insurance. Should an uninsured loss or a loss in excess of insured limits occur, we could lose our equity in the affected property as well as the anticipated future cash flow from that property. Any such loss could have a material adverse effect on our business, financial condition and results of operations.

Debt financing could adversely affect our performance. The vast majority of our assets are encumbered by project specific, non-recourse, non-cross-collateralized mortgage debt. There is a risk that these properties will not have sufficient cash flow from operations for payments of required principal and interest. We may not be able to refinance these loans at an amount equal to the loan balance and the terms of any refinancing may not be as favorable as the terms of existing indebtedness. If we are unable to make required payments on indebtedness that is secured by a mortgage, the Partnership will either invest additional money in the property or the property securing the mortgage may be foreclosed with a consequent loss of income and value to us.

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We are obligated to comply with financial covenants in our indebtedness that could restrict our range of operating activities. The mortgages on our properties contain customary negative covenants, including limitations on our ability, without prior consent of the lender and other items. Failure to comply with these covenants could cause a default under the agreements and, in certain circumstances; our lenders may be entitled to accelerate our debt obligations. Defaults under our debt agreements could materially and adversely affect our financial condition and results of operations.

Real estate investments are generally illiquid, and we may not be able to sell our properties when it is economically or strategically advantageous to do so. Real estate investments generally cannot be sold quickly, and our ability to sell properties may be affected by market conditions. We may not be able to diversify or vary our portfolio promptly in accordance with our strategies or in response to economic or other conditions.

Our access to public debt markets is limited. Substantially all of our debt financings are secured by mortgages on our properties because of our limited access to public debt markets.

Litigation may result in unfavorable outcomes. Like many real estate operators, we may be involved in lawsuits involving premises liability claims, housing discrimination claims and alleged violations of landlord-tenant laws, which may give rise to class action litigation or governmental investigations. Any material litigation not covered by insurance, such as a class action, could result in substantial costs being incurred.

Our financial results may be adversely impacted if we are unable to sell properties and employ the proceeds in accordance with our strategic plan. Our ability to pay down debt, reduce our interest costs, repurchase Depositary Receipts and acquire properties is dependent upon our ability to sell the properties we have selected for disposition at the prices and within the deadlines we have established for each respective property.

The costs of complying with laws and regulations could adversely affect our cash flow and ability to make distributions to our shareholders. Our properties must comply with Title III of the Americans with Disabilities Act (the “ADA”) to the extent that they are “public accommodations” or “commercial facilities” as defined in the ADA. The ADA does not consider apartment complexes to be public accommodations or commercial facilities, except for portions of such properties that are open to the public. In addition, the Fair Housing Amendments Act of 1988 (the “FHAA”) requires apartment complexes first occupied after March 13, 1990, to be accessible to the handicapped. Other laws also require apartment communities to be handicap accessible. Noncompliance with these laws could result in the imposition of fines or an award of damages to private litigants. We may be subject to lawsuits alleging violations of handicap design laws in connection with certain of our developments. If compliance with these laws involves substantial expenditures or must be made on an accelerated basis, our ability to make distributions to our shareholders could be adversely affected.

Under various federal, state and local laws, an owner or operator of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances on, under or in the property. This liability may be imposed without regard to whether the owner or operator knew of, or was responsible for, the presence of the substances. Other laws impose on owners and operators certain requirements regarding conditions and activities that may affect human health or the environment. Failure to comply with applicable requirements could complicate our ability to lease or sell an affected property and could subject us to monetary penalties, costs required to achieve compliance and potential liability to third parties. We are not aware of any material noncompliance, liability or claim relating to hazardous or toxic substances or other environmental matters in connection with any of our properties. Nonetheless, it is possible that material environmental contamination or conditions exist, or could arise in the future, in the apartment communities or on the land upon which they are located.

We are subject to the risks associated with investments through joint ventures. Seven of our properties are owned by joint ventures in which we do not have a direct controlling interest. We may enter into joint ventures, including joint ventures that we do not control, in the future. Any joint venture investment involves risks such as the possibility that the co-venturer may seek relief under federal or state insolvency laws or have economic or business interests or goals that are inconsistent with our business interests or goals. While the bankruptcy or insolvency of our co-venturer generally should not disrupt the operations of the joint venture, we could be forced to purchase the co-venturer’s interest in the joint venture or the interest could be sold to a third party. We also may guarantee the

10

indebtedness of our joint ventures. If we do not have control over a joint venture, the value of our investment may be affected adversely by a third party that may have different goals and capabilities than ours.

We are subject to risks associated with development, acquisition and expansion of multifamily apartment complexes and commercial properties. Development projects and acquisitions and expansions of apartment complexes are subject to a number of risks, including:

● availability of acceptable financing;

● competition with other entities for investment opportunities;

● failure by our properties to achieve anticipated operating results;

● construction costs of a property exceeding original estimates;

● delays in construction; and

● expenditure of funds on, and the devotion of management time to, transactions that may not come to fruition.

We are subject to control by our directors and officers. The directors and executive officers of the General Partner and members of their families and related entities owned approximately 38% of our Depositary Receipts as of December 31, 2023. Additionally, management decisions rest with our General Partner without limited partner approval.

Competition for skilled personnel could increase our labor costs. We and our management company compete with various other companies in attracting and retaining qualified and skilled personnel who are responsible for the day- to-day operations of our properties. Competitive pressures may require that we enhance our pay and benefits package to compete effectively for such personnel. We may not be able to offset such added costs by increasing the rates we charge our tenants. If there is an increase in these costs or if we fail to attract and retain qualified and skilled personnel, our business and operating results could be harmed.

We depend on our key personnel. Our success depends to a significant degree upon the continued contribution of key members of the management company, who may be difficult to replace. The loss of services of these executives could have a material adverse effect on us. There can be no assurance that the services of such personnel will continue to be available to us. We do not hold key-man life insurance on any of our key personnel.

Changes in market conditions could adversely affect the market price of our Depositary Receipts. As with other publicly traded equity securities, the value of our Depositary Receipts depends on various market conditions, which may change from time to time. Among the market conditions that may affect the value of our Depositary Receipts are the following:

● the extent of investor interest in us;

● the general reputation of real estate companies and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate companies;

● our financial performance; and

● general stock and bond market conditions.

The market value of our Depositary Receipts is based primarily upon the market’s perception of our growth potential and our current and potential future earnings and cash distributions. Consequently, our Depositary Receipts may trade at prices that are higher or lower than our net asset value per Depositary Receipt.

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We face possible risks associated with the physical effects of climate change. We cannot predict with certainty whether climate change is occurring and, if so at what rate. However, the physical effects of climate change could have a material effect on our properties, operations, and business. To the extent climate change causes changes in weather patterns, our markets could experience increases in storm intensity and rising sea levels. Over time, these conditions could result in declining demand for our buildings or the inability of us to operate the buildings at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and increasing the cost of snow removal at our properties. Proposed federal legislation to address climate change could increase utility and other costs of operating our properties which, if not offset by rising rental income, would reduce our net income. There can be no assurance that climate change will not have a material adverse effect on our properties, operations or business.

Risk of changes in the tax law applicable to real estate partnerships. Since the Internal Revenue Service, the United States Treasury Department and Congress frequently review federal income legislation, we cannot predict whether, when or to what extent new federal tax laws, regulations, interpretations or rulings will be adopted. Any such legislative action may prospectively or retroactively modify our tax treatment and therefore, may adversely affect taxation to us, and/or our partners.

If the IRS makes audit adjustments to our income tax returns, it may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from the Partnership. If, as a result of any such audit adjustment, we are required to make payments of taxes, penalties and interest, our cash available for distribution to our partners might be substantially reduced.

Some of our costs, such as operating and general and administrative expenses, interest expense, and real estate acquisition and construction costs, are subject to inflation. A portion of our operating expenses is sensitive to inflation. These include expenses for property-related contracted services such as janitorial and engineering services, utilities, repairs and maintenance, and insurance. Property taxes are also impacted by inflationary changes as taxes are regularly reassessed based on changes in the fair value of our properties. Additionally, inflationary pricing may have a negative effect on real estate acquisitions and the construction costs necessary to complete our renovation, development and redevelopment projects, including, but not limited to, costs of construction materials, labor, and services from third-party contractors and suppliers. Our commercial leases have fixed rent increases which may not increase in line with inflation, thus causing our net operating income to decrease. As a result, our financial condition, results of operations, and cash flows, as well as our ability to pay dividends, could be adversely affected over time.

Revenue associated with residential properties may be limited in the future if current rent restriction proposals are adopted by the City of Boston. On February 13, 2023, Boston Mayor Michelle Wu submitted a home rule petition to the Boston City Council that would allow the City to limit how much landlords can increase rent on returning tenants each year to the lower of 10% or the Consumer Price Index for the Boston metropolitan area plus six percentage points. The petition, as currently stated, would apply to any properties with six or more units. The petition needs to be approved by both local and state policymakers in order to be enacted. The Boston City Council approved the submission of the petition to the state legislature on March 8, 2023. If such petition were to be passed by state legislatures, our financial condition, results of operations, and cash flows, as well as our ability to pay dividends, could be adversely affected over time.

Recent City of Boston regulations impose new energy performance standards and fines that may increase utilities and administrative costs in order to comply with disclosure and energy reduction requirements. The City of Boston has implemented a Building Emissions Reduction and Disclosure Ordinance that sets specific requirements for large buildings to reduce energy use with the goal of targeting zero emissions for large buildings by 2050. The ordinance restricts emissions standards to certain units that begin phasing in during 2025 with such limits decreasing over time according to specific thresholds based upon building use type. Non-compliance with either disclosure requirements or emission limits may result in the imposition of penalties for such time as non-compliance remains in effect. As a result, our financial condition, results of operations, and cash flows, as well as our ability to pay dividends, could be adversely affected over time.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C.    CYBERSECURITY

The Partnership’s information technology, communication networks, system applications, accounting and financial reporting platforms and related systems, and those that are offered to residents and tenants, are integral to the operation of the business. The Partnership utilizes these systems, among others, for financial analysis, management, and reporting, for facilitation of operations, including for the initiation, generation, and completion of resident leasing, for internal communications, and for various other aspects of the business.

The Partnership’s cybersecurity strategy is focused on detection, protection, incident response, security risk management and mitigation, and resiliency of the cybersecurity infrastructure. The Partnership has implemented or is in the process of continuously evaluating, testing and updating various information security processes and policies designed to identify, assess and manage material risks from cybersecurity threats to the Partnership’s critical computer networks, third-party hosted services, communications systems, hardware and software, and critical data, including confidential information that is proprietary, strategic or competitive in nature, as well as any personally identifiable information related to the Partnership’s residents’ and employees’ personal data.

To operate its business, the Partnership engages certain third-party vendors to perform a variety of functions. The Partnership seeks to engage reliable, reputable service providers. Depending upon the nature of the services and the sensitivity of the data that a third-party service provider processes, the Partnership’s vendor management procedures include reviewing the cybersecurity procedures, imposing contractual requirements, and conducting as needed periodic reassessments. The Partnership seeks to further enhance this review to expand the scope and depth of this analysis.

Cybersecurity is a critical component of our risk management process. We recognize that no single technology, process, or business control can effectively prevent or mitigate all risks, thus we use a variety of tools including multi-factor authentication and antivirus and firewall protection, to help identify, protect, detect, respond to, and recover from cyber threats. These individual technologies work together as part of our strategy to minimize risk. This strategy is tested through audits and independent program assessments, as well as through additional exercises with our Managed Service Provider, designed to assess effectiveness. The Managed Service Provider actively manages our firewalls, multi-factor authentication, antivirus, and Azure environment. Our Managed Service Provider also reviews our cybersecurity program on a quarterly basis and provides recommendations toward best industry practice. Our cybersecurity program is continually evolving to align with NIST standards, and we regularly monitor our progression toward these standards.

Our Audit Committee is responsible for overseeing our cybersecurity and data privacy risks. Our cybersecurity program is led by the Hamilton Company’s Chief Financial Officer, who, along with the Hamilton Company’s Director of Information Technology who has been with Hamilton for 38 years, provide regular updates each quarter to the Audit Committee regarding this program, including information about the cybersecurity threat landscape, investments in infrastructure and opportunities to protect and enhance the Company’s systems and security of products and operations. The also Board receives periodic briefings from management regarding cybersecurity activities and initiatives.

The Partnership’s cybersecurity program is designed to safeguard the confidentiality, integrity and availability of data and systems within the Company’s environment to effectively support our business objectives and customer needs. Our commitment to cybersecurity focuses on enhancing our prevention, monitoring, and detection response capabilities to identify and respond to evolving threats. We believe cybersecurity is the responsibility of every employee of the Hamilton Company, and it is prioritized each year. We regularly test, educate, and share best practices with employees of the Hamilton Company to raise awareness of cyber threats through a comprehensive security awareness training program. Our Managed Service Provider is responsible for testing our ability to restore our critical infrastructure on a quarterly basis. Additionally, our incident response and disaster recovery plans are reviewed and updated annually.

During 2023, we have not encountered cybersecurity challenges that have materially impaired our operations, business strategy or financial condition.

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ITEM 2. PROPERTIES

The Partnership and its Subsidiary Partnerships own the Apartment Complexes, the Condominium Units, the Commercial Properties and a 40-50% interest in seven Investment Properties. See also “Item 13. Certain Relationships and Related Transactions and Director Independence” for information concerning affiliated transactions.

Apartment Complexes

The table below lists the location of the 2,943 Apartment Units, the number and type of units in each complex, the range of rents and vacancies as of February 1, 2024, the principal amount outstanding under any mortgages as of December 31, 2023, the fixed interest rates applicable to such mortgages, and the maturity dates of such mortgages.

							Mortgage Balance
							and Interest Rate			Maturity
	Number and Type						As of			Date of
Apartment Complex	of Units	Rent Range				Vacancies	December 31, 2023		(1)	Mortgage
Boylston Downtown L.P.	268 units					4	$	34,092,579		2028
62 Boylston Street	0 three bedroom				N/A			3.97	%
Boston, MA	0 two bedroom				N/A
	53 one bedroom	$	2,625	–	3,300
	215 studios	$	2,075	–	2,625
Brookside Associates, LLC	44 units					3	$	6,175,000		2035
5–7–10–12 Totman Road	0 three bedroom				N/A			3.53	%
Woburn, MA	34 two bedroom	$	1,850	–	2,125
	10 one bedroom	$	1,700	–	2,000
	0 studios				N/A
Clovelly Apartments L.P.	103 units					—	$	11,214,000		2031
160–170 Concord Street	0 three bedroom				N/A			2.97	%
Nashua, NH	53 two bedroom	$	1,575	–	2,050
	50 one bedroom	$	1,550	–	1,800
	0 studios				N/A
Commonwealth 1137 L.P.	35 units					—	$	5,440,000		2031
1131–1137 Commonwealth Ave.	29 three bedroom	$	3,375	–	4,400			2.97	%
Allston, MA	4 two bedroom	$	2,500	–	3,000
	1 one bedroom	$	1,450	–	1,450
	1 studio	$	1,725	–	1,725
Commonwealth 1144 L.P.	261 units					1	$	32,325,000		2031
1144–1160 Commonwealth Ave.	0 three bedroom				N/A			2.97	%
Allston, MA	11 two bedroom	$	2,125	–	2,500
	109 one bedroom	$	1,890	–	2,550
	141 studios	$	1,825	–	2,300
Nera Dean Street Associates, LLC	69 units					5	$	10,322,000		2032
38–48 Dean Street	0 three bedroom				N/A			4.33	%
Norwood, MA	66 two bedroom	$	1,800	–	2,300
	3 one bedroom	$	1,800	–	1,900
	0 studios				N/A
Executive Apartments L.P.	72 units					—	$	8,190,000		2031
545–561 Worcester Road	1 three bedroom	$	2,450	–	2,450			2.97	%
Framingham, MA	47 two bedroom	$	1,885	–	2,095
	23 one bedroom	$	1,600	–	1,855
	1 studio	$	1,625	–	1,625
Hamilton Battle Green LLC	48 units					1	$	3,766,660		2026
34–42 Worthen Road	0 three bedroom				N/A			4.95	%
Lexington, MA	24 two bedroom	$	2,650	–	3,100
	24 one bedroom	$	2,175	–	2,480
	0 studios				N/A
Hamilton Green Apartments LLC	193 units					1	$	32,190,519		2028
311–319 Lowell Street	10 three bedroom	$	3,100	–	3,750			4.67	%
Andover, MA	168 two bedroom	$	2,325	–	2,900
	15 one bedroom	$	2,150	–	2,500
	0 studios	$			N/A
Hamilton Highlands	79 units					—	$	19,437,587		2026
755-757 Highland Avenue	0 three bedroom	$		–	N/A			3.76	%
Needham,Ma.	76 two bedroom	$	2,400	–	2,950
	2 one bedroom	$	1,925	–	2,085
	1 studio	$	2,100	–	2,100
Hamilton Oaks Associates, LLC	268 units					2	$	26,666,000		2031
30–50 Oak Street Extension	0 three bedroom				N/A			2.97	%
40–60 Reservoir Street	96 two bedroom	$	1,750	–	2,100
Brockton, MA	159 one bedroom	$	1,450	–	1,800
	13 studios	$	1,350	–	1,550
Highland Street Apartments L.P.	36 units					—	$	3,960,000		2031
38–40 Highland Street	0 three bedroom				N/A			2.97	%
Lowell, MA	24 two bedroom	$	1,500	–	1,725
	10 one bedroom	$	1,500	–	1,625
	2 studios	$	1,325	–	1,425

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							Mortgage Balance
							and Interest Rate			Maturity
	Number and Type						As of			Date of
Apartment Complex	of Units	Rent Range				Vacancies	December 31, 2023		(1)	Mortgage
Linhart L.P.	9 units					—	$
4–34 Lincoln Street	0 three bedroom				N/A			—	%
Newton, MA	0 two bedroom				N/A
	5 one bedroom	$	1,750	–	2,050
	4 studios	$	1,575	–	2,025
Mill Street Development (2)								—	%
57 Mill Street
Woburn,MA.
Mill Street Gardens, LLC	181 units					2	$	31,000,000		2035
57 Mill Street	0 three bedroom				N/A			3.59	%
Woburn,MA.	116 two bedroom	$	1,950		2,450
	62 one bedroom	$	1,700	–	2,150
	3 studios	$	1,575	–	1,625
North Beacon 140 L.P.	65 units					2	$	12,683,000		2031
140–154 North Beacon Street	10 three bedroom	$	3,550	–	3,900			2.97	%
Brighton, MA	54 two bedroom	$	2,650	–	3,400
	1 one bedroom	$	2,375	–	2,375
	0 studios				N/A
Olde English Apartments L.P.	84 units					—	$	9,608,000		2031
703–718 Chelmsford Street	0 three bedroom				N/A			2.97	%
Lowell, MA	47 two bedroom	$	1,700	–	1,850
	30 one bedroom	$	1,650	–	1,750
	7 studios	$	1,475	–	1,750
Redwood Hills L.P.	180 units					1	$	17,105,000		2031
376-382 Sunderland road	0 three bedroom				N/A			2.97	%
Worcester, MA	89 two bedroom	$	1,675	–	2,150
	91 one bedroom	$	1,450	–	1,800
	0 studios				N/A
Residences at Captain Parkers LLC	94 units					1	$	20,750,000		2029
125 Worthen Road and Ryder Lane	8 three bedroom	$	3,600	–	4,100			4.05	%
Lexington, MA	48 two bedroom	$	2,650	–	3,150
	38 one bedroom	$	2,250	–	2,750
	0 studios				N/A
River Drive L.P.	72 units					1	$	9,543,000		2031
3–17 River Drive	0 three bedroom				N/A			2.97	%
Danvers, MA	60 two bedroom	$	1,875	–	2,150
	5 one bedroom	$	1,700	–	1,850
	7 studios	$	1,650	–	1,750
School Street 9, LLC	184 units					—	$	26,993,000		2032
9 School Street	0 three bedroom				N/A			4.33	%
Framingham, MA	96 two bedroom	$	1,975	–	2,200
	88 one bedroom	$	1,600	–	1,875
	0 studios
Shawmut Place LLC	52 units					1	$	—
105-117 West Concord St, 473-477 Shawmut Ave,	12 four bedroom	$	3525	–	5200
and 26-30 Rutland St	4 three bedroom	$	3100	–	4500
Boston, MA	13 two bedroom	$	2400	–	4000
	23 one bedroom	$	1950	–	3000
	0 studios				N/A
WCB Associates, LLC	180 units					1	$	19,266,000		2031
10–70 Westland Street	0 three bedroom	$			N/A			2.97	%
985–997 Pleasant Street	96 two bedroom	$	1,715	–	2,000
Brockton, MA	84 one bedroom	$	1,345	–	1,690
	0 studios				N/A
Westgate Apartments, LLC	220 units					2	$	38,475,000		2032
2–20 Westgate Drive	0 three bedroom				N/A			4	%
Woburn, MA	110 two bedroom	$	1950	–	2150
	110 one bedroom	$	1750	–	2225
	0 studios				N/A
Westgate Apartments Burlington, LLC	20 units					—	$	4,494,000		2032
105–107 Westgate Drive	0 three bedroom				N/A			4.33	%
Burlington, MA	12 two bedroom	$	2,175	–	2,450
	8 one bedroom	$	1,950	–	2,050
	0 studios				N/A
Woodland Park Partners, LLC	126 units					—	$	21,788,650		2027
264-290 Grove Street	0 three bedroom				N/A			4	%
Newton, MA	80 two bedroom	$	1900	–	2700
	30 one bedroom	$	1900	–	2300
	16 studios	$	1600	–	2000

(1) The mortgage balance is stated before unamortized deferred financing costs.

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(2) Mill Street Development, LLC, was held for development. In December of 2023, the Partnership received 40B approval to construct a 72 unit apartment complex. Management expects to start the construction project in 2024. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project.

Current free rent concessions would result in an average reduction in unit rents of approximately $2.13 per month per unit. Free rent expense amortized in 2023 was approximately $76,000 compared to approximately $344,000 in 2022.

See Note 5 to the Consolidated Financial Statements for information relating to the mortgages payable of the Partnership and Subsidiary Partnerships.

Condominium Units

The Partnership owns and leases to residential tenants 19 Condominium Units in the metropolitan Boston area of Massachusetts.

The table below lists the location of the 19 Condominium Units, the type of units, the range of rents received by the Partnership for such units, and the number of vacancies as of February 1, 2024.

							Mortgage Balance
	Number and Type						and Interest Rate	Maturity
	of Units Owned						As of	Date of
Condominiums	by Partnership	Rent Range				Vacancies	December 31, 2023	Mortgage
Riverside Apartments	19 units					—	—	—
8–20 Riverside Street	0 three bedroom				N/A
Watertown, MA	12 two bedroom	$	2,000	–	2,400
	5 one bedroom	$	1,855	–	2,125
	2 studios	$	2,000	–	2,000

Commercial Properties

BOYLSTON DOWNTOWN LP. In 1995, this Subsidiary Partnership acquired the Boylston Downtown property in Boston, Massachusetts (“Boylston”). This mixed-use property includes 15,908 square feet of rentable commercial space. As of February 1, 2024, the commercial space was fully occupied, and the average rent per square foot was $32.80 For mortgage balance, interest rate and maturity date information see “Apartment Complexes” above.

HAMILTON OAKS ASSOCIATES, LLC. The Hamilton Oaks Apartment complex in Brockton, Massachusetts was acquired by the Partnership in December 1999 through Hamilton Oaks Associates, LLC, and includes 6,075 square feet of rentable commercial space, occupied by a daycare center. As of February 1, 2024, the commercial space was fully occupied, and the average rent per square foot was $15.00.The Partnership also rents roof space for a cellular phone antenna at an average rent of approximately $63,000 per year through November 2040. For mortgage balance, interest rate and maturity date information see “Apartment Complexes” above.

LINHART LP. In 1995, the Partnership acquired the Linhart property in Newton, Massachusetts (“Linhart”). This mixed-use property includes 22,200 square feet of rentable commercial space. As of February 1, 2024, the commercial space had vacant square footage of 1,273 square feet, and the average rent per square foot was $27.10.

NORTH BEACON 140 LP. In 1995, this Subsidiary Partnership acquired the North Beacon property in Boston, Massachusetts. This mixed-use property includes 1,050 square feet of rentable commercial space. The property was fully rented as of February 1, 2024, and the average rent per square foot as of that date was $40.50. For mortgage balance, interest rate and maturity date information see “Apartment Complexes” above.

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WRF 659 LLC.  In 1999, the Partnership acquired the Staples Plaza shopping center in Framingham, Massachusetts. The shopping center consists of 38,268 square feet of rentable commercial space. As of February 1, 2024, this property was fully occupied, and the average net rent per square foot was $13.23. A new tenant, Blue Pearl Operations LLC, signed a lease on January 9, 2023 that includes a tenant fit up period of the earlier of 12 months from lease signing or such time as the tenant receives a certificate of occupancy. As of December 31, 2023, no rent is due from this tenant.

HAMILTON LINEWT ASSOCIATES, LLC. In 2007, the Partnership acquired a retail block in Newton, Massachusetts. The property consists of 5,850 square feet of rentable commercial space. As of February 1, 2024, the commercial space was fully occupied, and the average rent per square foot was $37.33.

HAMILTON CYPRESS LLC. In 2008, the Partnership acquired a medical office building in Brookline, Massachusetts. The property consists of 17,718 square feet of rentable commercial space. As of February 1, 2024, the space was fully occupied, and the average rent per square foot was $40.38

653 WORCESTER Road LLC. On January 18, 2023, the Partnership purchased a commercial retail property of 20,693 square feet of rentable commercial space located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000. As of February 1, 2024, the space was fully occupied, and the average rent per square foot was $28.25.

SHAWMUT PLACE, LLC. On July 14, 2023, the Partnership purchased a 52 unit mixed use 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, and 3,397 square feet of commercial space for a purchase price of approximately $27,500,000. The commercial space was fully rented as of February 1, 2024, and the average rent per square foot as of that date was $44.09.

The following information is provided for commercial leases:

			Total square	Total number	Percentage of
	Annual base rent		feet for	of leases	annual base rent
Through December 31,	for expiring leases		expiring leases	expiring	for expiring leases
2024	$	416,581	29,166	29	12	%
2025		253,320	7,455	7	7	%
2026		361,731	14,221	8	10	%
2027		309,189	8,884	5	9	%
2028		251,316	6,929	2	7	%
2029		433,890	15,138	3	12	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—	%
Thereafter		1,428,261	46,987	4	40	%
Totals	$	3,564,888	129,886	59	100	%

Commercial rental income is accounted for using the straight-line method. Approximately 36% of our commercial leases contain rent escalations which range from $0.18 to $2.42 per square foot per year.

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Investment Properties

See Note 15 to the Consolidated Financial Statements for additional information regarding the Investment Properties.

The Partnership has a 50% ownership interest in the properties summarized below:

							Mortgage Balance
							and Interest Rate			Maturity
	Number and Type						As of			Date of
Investment Properties	of Units	Range				Vacancies	December 31, 2023		(1)	Mortgage
345 Franklin, LLC	40 Units					1	$	8,482,755		2028
345 Franklin Street	0 three bedroom				N/A			3.87	%
Cambridge, MA	39 two bedroom	$	3,755	–	4,300
	1 one bedroom	$	3,250	–	3,250
	0 studios				N/A
Hamilton on Main Apartments, LLC	148 Units					2	$	16,900,000		2024
223 Main Street	0 three bedroom				N/A			4.34	%
Watertown, MA	93 two bedroom	$	2,625	–	2,900
	31 one bedroom	$	2,400	–	2,550
	24 studios	$	2,250	–	2,350
Hamilton Minuteman, LLC	42 Units					1	$	6,000,000		2031
1 April Lane	0 three bedroom				N/A			3.71	%
Lexington, MA	40 two bedroom	$	2,650	–	3,400
	2 one bedroom	$	2,100	–	2,250
	0 studios				N/A
Hamilton Essex 81 LLC	49 Units					2	$	10,000,000		2025
Residential	0 three bedroom				N/A			7.63	%
81–83 Essex Street	11 two bedroom	$	3,000	–	3,300
Boston, MA	38 one bedroom	$	2,050		2,500
	0 studios				N/A
Hamilton Essex Development LLC	Parking Lot
Commercial
81–83 Essex Street
Boston, MA
Hamilton 1025  LLC	Commercial Building
Commercial
1025 Hancock Street
Quincy,MA
The Partnership has a 40% ownership interest in the property summarized below:
Hamilton Park Towers, LLC	409 Units					9	$	125,000,000		2028
175–185 Freeman Street,	71 three bedroom	$	3,850	–	5,000			3.99	%
Brookline,MA	227 two bedroom	$	2,750	–	4,100
	111 one bedroom	$	2,350	–	3,300
	0 studios				N/A

Current free rent concessions would result in an average reduction in unit rents of $4,53 per month per unit. Free rent amortized in 2023 was approximately $37,000, compared to $220,000 in 2022.

(1) The mortgage balance is stated before unamortized deferred financing costs.

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345 FRANKLIN, 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 Partnership paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the property 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 December 31, 2023, the balance of this mortgage before unamortized deferred financing costs is approximately $8,483,000. This investment is referred to as 345 Franklin, LLC.

HAMILTON ON MAIN, 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 Partnership sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main Apartments, LLC is known as Hamilton Place. In 2005, Hamilton on Main Apartments, LLC obtained a ten-year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30-year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. 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 Partnership 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. At December 31, 2023, the balance of this mortgage before unamortized deferred financing costs is approximately $16,900,000. 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. This investment is referred to as Hamilton on Main Apartments, LLC.

HAMILTON MINUTEMAN, 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. In October 2004, the Partnership obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Partnership obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. 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. This investment is referred to as Hamilton Minuteman, LLC. At December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000. 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. This investment is referred to as Hamilton Minuteman, LLC.

HAMILTON 1025, 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 Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. 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. As of December 31, 2023, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

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HAMILTON ESSEX 81, LLC. 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 Partnership planned to operate the building and initiate development of the parking lot. In June 2007, the Partnership 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 Partnership restructured the mortgages on both parcels at Essex 81 and transferred the residential apartments to Hamilton Essex 81, LLC. On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286. The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC. 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 December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $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

HAMILTON PARK TOWERS, LLC. 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, is a 409 unit residential complex. The purchase price was $129,500,000. In order to fund this investment, the Partnership used approximately $8,757,000 of its cash reserves and borrowed approximately $7,168,000 with an interest rate of 6% from HBC Holdings, LLC, an entity owned by Jameson Brown and his affiliates (“HBC”). The term of the loan was four years with a provision requiring payment in whole or in part upon demand by HBC with six months’ notice. The loan was paid in full in April 2012. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019.

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 pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park Towers, LLC 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 December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

ITEM 3. LEGAL PROCEEDINGS

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

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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.

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Each Class A Unit is exchangeable, through Computershare Trust Company (“Computershare”) (formerly Equiserve LP), the Partnership’s Depositary Agent, for 30 Depositary Receipts (“Receipts”). The Receipts are listed and publicly traded on the NYSE MKT Exchange under the symbol “NEN.” There has never been an established trading market for the Class B Units or General Partnership Units.

Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE MKT 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.

Distribution to Limited & General Partners were:

	2023		2022
Class A—Limited Partners (80%)	$	7,963,910	$	7,414,385
Class B—Limited Partners (19%)		1,891,429		1,760,916
Class C—General Partner (1%)		99,549		92,680
Total	$	9,954,888	$	9,267,981

On March 12, 2024, the closing price on the NYSE American for a Depositary Receipt was $71.00. There were 2,771,321 Depositary Receipts outstanding and 1,476 Units (representing 44,280 receipts) held by approximately 116 registered record holders.

Any portion of the Partnership’s cash, which the General Partner deems not necessary for cash reserves, is distributed to the Partners, and distributions are made on a quarterly basis. The Partnership has made annual distributions to its Partners since 1978.The Partnership made distributions of $84.00 per unit ($2.80 per Depositary Receipt) in 2023. The Partnership made distributions of $76.80 per Unit ($2.56 per Depositary Receipt) in 2022. The total distribution was $9,954,888 in 2023 and $9,267,981 in 2022. In March 2024, the Partnership declared a quarterly distribution of $12.00 per Unit ($0.40 per Depositary Receipt) payable on March 28, 2024. In addition to the quarterly distribution, there will be a special distribution of $48.00 per Class A unit ($1.60 per Depositary Receipt).

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See “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” for certain information relating to the number of holders of each class of Units.

Issuer Purchase of Equity Securities during the fourth 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)
October 1–31, 2023	$	66.77	543	481,765
November 1–30, 2023	$	69.83	13,077	468,688
December 1-31,2023	$	69.51	924	467,764
Total			14,544

See Note 8 to the Consolidated Financial Statements for information concerning the Repurchase Program.

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ITEM 6. [Reserved]

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ITEM 7. 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. 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.

Along with risks detailed in Item “1A Risk Factors” and from time to time in the Partnership’s 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.

● 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.

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● 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. 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.

General

On February 24, 2019, Harold Brown, the owner of 75% of the outstanding voting securities of NewReal, Inc. (“NewReal”), the general partner of New England Realty Associates Limited Partnership, passed away. As a result, the estate of Harold Brown held voting control over the capital stock of NewReal. On January 2, 2024, the estate was settled, with Jameson Brown and Harley Brown each assuming 37.5% ownership in NewReal. As of February 1, 2024, the Brown family related entities and Ronald Brown collectively own approximately 32.4% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members). Brown family related entities also control 75% of the Partnership’s Class B Units, and 75% of the capital stock of NewReal, the Partnership’s sole general partner. Ronald Brown also owns 25% of the Partnership’s Class B Units and 25% of the capital stock of NewReal. In addition, Ronald Brown is the President and a director of NewReal and Jameson Brown is Treasurer and a director of NewReal. Moreover, 75% of the issued and outstanding

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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.

In the fiscal year ended December 31, 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 became available. Currently, approximately $84,000,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 5.29% and 5.45%.

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 Partnerhip’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.

The vacancy rate for the Partnership’s residential properties as of February 1, 2024 was 0.9% as compared with a vacancy rate of 1.9% as of February 1, 2023. The vacancy rate for the Joint Venture properties as of February 1, 2024 was 2.2%, as compared to 1.7% for the same period last year. The current vacancy rates are in line with those experienced prior to the Covid-19 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. Rental activity continues to be strong as we move from 2023 into 2024 and all indications are that we will have low vacancy rates for the foreseeable future.

During the fourth quarter of 2023, rents increased on average 4.6% for renewals and increased on average 6.0% for new leases. For all of 2023, renewal rents increased approximately 6.14% and increased approximately 8.9% for new leases. For 2023, management expects the local real estate market to remain strong as we move from the winter into the spring rental season.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for 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 for in- place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use 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, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

For the year ending December 31, 2023, excluding the increase in income and expense from 653 Worcester Road and the Shawmut Apartments, consolidated revenue increased by 6.8%, operating expenses increased by 6.1% (including impairment) and Income before Other Income (Expense) increased by 7.5%. For the fourth quarter of 2023, excluding the increase in income and expense from 653 Worcester Road and the Shawmut Apartments, consolidated revenue increased by 8.6%, operating expenses increased by 11.9 % and Income before Other Income (Expense) decreased by 4.8 %, as compared to the fourth quarter of 2022.

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

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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”). See schedule in Note 5, Mortgage Notes Payable, for the details of the transaction as it relates to the specific properties.

The Partnership used the proceeds to pay down approximately $65,300,000 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. See schedule in Note 5, Mortgage Notes Payable, for the details of the transaction as it relates to the specific properties.

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. The remaining balance of approximately $42,384,000 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 the 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%.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line is 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 an applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was subsequently extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000.

On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extended the line of credit.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 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. The portfolio’s debt yield fell below the minimum of 9.0% to 8.6%. Consequently, as of December 31,2023, the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted from drawing down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement of the line of credit. See Note 19, Subsequent Events, for additional information.

The Repurchase Program that was initiated in 2007 has purchased 1,532,234 Depositary Receipts through December 31, 2023, or approximately 35% of the outstanding Depositary Receipts. The Partnership purchased 43,774 Depositary Receipts in 2023.

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In March of 2020, the Board of Advisors and Board of Directors unanimously approved an extension of the Repurchase Program until March 31, 2025. Management believes that the $25,000,000 line of credit, net cash flow from operations and cash on hand have put the Partnership in position to capitalize on investment opportunities should they reveal themselves in the near future. As always, management continues to weigh investment alternatives of stock repurchase, new property acquisitions and dispositions when considering its cash balances and performance of the portfolio.

The Partnership has retained the Hamilton Company (“Hamilton”) to manage and administer the Partnership’s and Joint Ventures’ Properties. Hamilton is a full-service real estate management company, which has legal, construction, maintenance, architectural, accounting and administrative departments. The Partnership’s properties represent approximately 44% of the total properties and 50% of the residential properties managed by Hamilton. Substantially all of the other properties managed by Hamilton are owned, wholly or partially, directly or indirectly, by the Brown Family related entities. The Partnership’s Second Amended and Restated Contract of Limited Partnership (the “Partnership Agreement”) expressly provides that the general partner may employ a management company to manage the properties, and that such management company may be paid a fee of up to 4% of rental receipts for administrative and management services (the “Management Fee”). The Partnership pays Hamilton the annual Management Fee in monthly installments.

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 the General Partner 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.

In 2023, tenant renewals were approximately 71% with an average rental increase of approximately 6.1%. New leases accounted for approximately 29% with rental rate increases of approximately 8.9%.In 2023, leasing commissions were approximately $545,000 compared to approximately $334,000 in 2022, an increase of approximately $211,000 (63.2%) from 2022.Tenant concessions were approximately $68,000 in 2023 compared to approximately $50,000 in 2022, an increase of approximately $18,000 (36.0%). Tenant improvements, excluding any improvements at 653 Worcester Road and the Shawmut Apartments, were approximately $3,471,000 in 2023 compared to approximately $2,333,000 in 2022, an increase of approximately $1,138,000 (48.8%).

Hamilton accounted for approximately 2.0% of the repair and maintenance expense paid for by the Partnership in the year ended December 31, 2023 and 2.3% in the year ended December 31, 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, Hamilton prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale transactions. Overall, Hamilton provided approximately 63.9% and 70.7% of the legal services paid for by the Partnership during the years ended December 31, 2023 and 2022, respectively.

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. In 2023, Hamilton provided the Partnership approximately $606,000 in construction and architectural services, compared to $114,000 for the year ended December 31, 2022.

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Bookkeeping and accounting functions have been provided by Hamilton’s accounting staff, which consists of approximately 14 people. In 2023, Hamilton charged the Partnership $125,000 per year ($31,250 per quarter) 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. Concessions made on residential leases 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 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

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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.

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.

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 analysis may not be achieved.

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

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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.

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

Years Ended December 31, 2023 and December 31, 2022

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures and other income and loss of approximately $18,815,000 during the year ended December 31, 2023, compared to approximately $18,088,000 for the year ended December 31, 2022, an increase of approximately $727,000 (4.0%).

The rental activity is summarized as follows:

	Occupancy Date
	February 1, 2024		February 1, 2023
Residential
Units	2,962		2,911
Vacancies	28		56
Vacancy rate	0.9	%	1.9	%
Commercial
Total square feet	131,159		108,043
Vacancy	1,273		—
Vacancy rate	1.0%	%	0.0	%

	Rental Income (in thousands)
	Year Ended December 31,
	2023					2022
	Total			Continuing		Total			Continuing
	Operations			Operations		Operations			Operations
Total rents	$	73,892		73,892		$	67,561		$	67,561
Residential percentage		94	%	94	%		95	%		95	%
Commercial percentage		6	%	6	%		5	%		5	%
Contingent rentals	$	683		683		$	541		$	541

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Year Ended December 31, 2023 Compared to Year Ended December 31, 2022:

	Year Ended December 31,				Dollar		Percent
	2023		2022		Change		Change
Revenues
Rental income	$	73,892,393	$	67,560,662	$	6,331,731	9.4%
Laundry and sundry income		588,975		733,064		(144,089)	(19.7%)
		74,481,368		68,293,726		6,187,642	9.1%
Expenses
Administrative		2,900,432		2,731,284		169,148	6.2%
Depreciation and amortization		16,773,045		16,373,429		399,616	2.4%
Management fee		2,948,066		2,716,514		231,552	8.5%
Operating		7,748,910		7,324,692		424,218	5.8%
Renting		1,004,666		639,235		365,431	57.2%
Repairs and maintenance		13,366,079		11,270,589		2,095,490	18.6%
Taxes and insurance		9,954,214		9,149,837		804,377	8.8%
Property impairment		971,109		—		971,109	0.0%
		55,666,521		50,205,580		5,460,941	10.9%
Income Before Other Income (Expense)		18,814,847		18,088,146		726,701	4.0%
Other Income (Expense)
Interest income		4,486,603		1,055,338		3,431,265	325.1%
Interest expense		(15,723,733)		(15,045,477)		(678,256)	4.5%
Income from investments in unconsolidated joint ventures		876,233		499,783		376,450	75.3%
Other Income (Expense)		—		(874,517)		874,517	(100.0%)
		(10,360,897)		(14,364,873)		4,003,976	(27.9%)
Net Income	$	8,453,950	$	3,723,273	$	4,730,677	127.1%

Rental income from continuing operations for the year ended December 31, 2023 was approximately $73,892,000, compared to approximately $67,560,000 for the year ended December 31, 2022, an increase of approximately $6,332,000 (9.4%). Excluding revenues from Walgreen’s and Shawmut’s of approximately $1,753,000, there was an increase of approximately $4,579,000 (6.8%).

The Partnership Properties with the largest increases in rental income include 62 Boylston Street Apartments, 1144 Commonwealth Apartments, Westgate Apartments, Woodland Park, and Hamilton Green, with increases of approximately $769,000, $747,000, $456,000, $339,000 and $294,000, 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.

Total expenses from continuing operations for the year ended December 31, 2023 were approximately $55,667,000 compared to approximately $50,205,000 for the year ended December 31, 2022, an increase of approximately $5,461,000 (10.9%). Excluding expenses from Walgreen’s and Shawmut’s of approximately $2,388,000, there was an increase of approximately $3,073,000 (6.1%). Factors which contributed to the increase were an increase in Repairs and Maintenance expense of approximately $2,020,000 (17.9%), primarily due to an increase in apartment units turnover costs, an increase in Taxes and Insurance costs of approximately $600,000 (6.6%), and an increase in Renting expense of approximately $359,000 (56.2%), partially due to an increase in commissions, offset in part by a decrease in Depreciation and Amortization expense of approximately $1,480,000 (9.0%), due to fully depreciated assets.

Interest income for the year ended December 31, 2023, was approximately $4,486,000 compared to approximately $1,055,000 for the year ended December 31, 2022, an increase of approximately $3,431,000. The increase is due to investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 5.3% to 5.5%.

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Interest expense for the year ended December 31, 2023 was approximately $15,723,000 compared to approximately $15,045,000 for the year ended December 31, 2022, an increase of approximately $678,000 (4.5%), The increase is due to the refinancing of properties, increasing the amount of debt, which increased the interest expense for the period.

In December, 2023, the Partnership received approval from MassHousing to construct a 72 unit apartment building in accordance with Chapter 40B to include 17 affordable units on the Mill Street Development site. In order to initiate construction, the Partnership expects to demolish the current building structures and start construction in 2024. No tenants are now occupying the property and with the resulting loss of future cash, management has recorded an impairment charge of approximately $971,000, the net book value of the building for the Mill Street Development property. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project.

At December 31, 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 14 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 $876,000 for the year ended December 31, 2023, compared to net income of approximately $500,000 for the year ended December 31, 2022, an increase in income of approximately $376,000 (75.3%). This increase is primarily due to rental revenue of approximately $11,132,000 for the year ended December 31, 2023 compared to approximately $10,261,000 for the year ended December 31, 2022, an increase of approximately $871,000 (8.50).%. Included in the income for the year ended December 31, 2022 is depreciation and amortization expense of approximately $2,593,000.

As a result of the changes discussed above, net income for the year ended December 31, 2023 was approximately $8,454,000 compared to net income of approximately $3,723,000 for the year ended December 31, 2022, an increase in income of approximately $4,731,000 (127.1%).

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Years Ended December 31, 2022 and December 31, 2021

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures and other income and loss of approximately $18,088,000 during the year ended December 31, 2022, compared to approximately $14,242,000 for the year ended December 31, 2021, an increase of approximately $3,846,000 (27.0%).

The rental activity is summarized as follows:

	Occupancy Date
	February 1, 2023		February 1, 2022
Residential
Units	2,911		2,911
Vacancies	56		50
Vacancy rate	1.9	%	1.7	%
Commercial
Total square feet	108,043		108,043
Vacancy	—		—
Vacancy rate	0.0	%	0.0	%

	Rental Income (in thousands)
	Year Ended December 31,
	2022					2021
	Total			Continuing		Total			Continuing
	Operations			Operations		Operations			Operations
Total rents	$	67,561		67,561		$	62,176		$	62,176
Residential percentage		95	%	95	%		95	%		95	%
Commercial percentage		5	%	5	%		5	%		5	%
Contingent rentals	$	541		541		$	563		$	563

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Year Ended December 31, 2022 Compared to Year Ended December 31, 2021:

	Year Ended December 31,				Dollar		Percent
	2022		2021		Change		Change
Revenues
Rental income	$	67,560,662	$	62,175,592	$	5,385,070	8.7%
Laundry and sundry income		733,064		462,862		270,202	58.4%
		68,293,726		62,638,454		5,655,272	9.0%
Expenses
Administrative		2,731,284		2,476,593		254,691	10.3%
Depreciation and amortization		16,373,429		16,671,076		(297,647)	(1.8%)
Management fee		2,716,514		2,523,943		192,571	7.6%
Operating		7,324,692		6,471,250		853,442	13.2%
Renting		639,235		1,241,298		(602,063)	(48.5)%
Repairs and maintenance		11,270,589		10,069,325		1,201,264	11.9%
Taxes and insurance		9,149,837		8,942,469		207,368	2.3%
		50,205,580		48,395,954		1,809,626	3.7%
Income Before Other Income ( Expense)		18,088,146		14,242,500		3,845,646	27.0%
Other Income (Expense)
Interest income		1,055,338		87		1,055,251	100.0%
Interest (expense)		(15,045,477)		(13,629,463)		(1,416,014)	10.4%
Income (Loss) from investments in unconsolidated joint ventures		499,783		(567,308)		1,067,091	188.1%
Other (Expense)		(874,517)		(2,745,979)		1,871,462	68.2%
		(14,364,873)		(16,942,663)		2,577,790	15.2%
Net (Loss) Income	$	3,723,273	$	(2,700,163)	$	6,423,436	237.9%

Rental income from continuing operations for the year ended December 31, 2022 was approximately $67,560,000, compared to approximately $62,175,000 for the year ended December 31, 2021, an increase of approximately $5,385,000 (8.7%). The Partnership Properties with the largest increases in rental income include 62 Boylston Street Apartments, 1144 Commonwealth Apartments, Mill Street Gardens, Westgate Apartments, and Hamilton Green, with increases of approximately $1,891,000, $814,000, $402,000, $341,000 and $302,000, 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.

Total expenses from continuing operations for the year ended December 31, 2022 were approximately $50,206,000 compared to approximately $48,396,000 for the year ended December 31, 2021, an increase of approximately $1,810,000 (3.7%). Factors which contributed to the increase were an increase in Repairs and Maintenance expense of approximately $1,201,000 (11.9%), primarily due to an increase in apartment units turnover costs, an increase in Operating expenses of approximately $853,000 (13.2%), primarily due to an increase in snow removal and utility expense, and an increase in Administrative expense of approximately $255,000 (10.3%), partially due to an increase in professional fees, offset in part by a decrease in Depreciation and Amortization expense of approximately $298,000 (1.8%), due to fully depreciated assets.

Interest income for the year ended December 31, 2022, was approximately $1,055,000 compared to approximately $0 for the year ended December 31, 2021, an increase of approximately $1,055,000. The increase is due to investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 2.74% to 4.6%.

Interest expense for the year ended December 31, 2022 was approximately $15,045,000 compared to approximately $13,629,000 for the year ended December 31, 2021, an increase of approximately $1,416,000 (10.4%), 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 December 31, 2022, 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 14 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 $500,000 for the year ended December 31, 2022, compared to a net loss of approximately $567,000 for the year ended December 31, 2021, an increase in income of approximately $1,067,000 (188.1%). This increase is primarily due to rental revenue of approximately $10,261,000 for the year ended December 31, 2022 compared to approximately $9,132,000 for the year ended December 31, 2021, an increase of approximately $1,129,000 (12.40 %). Included in the income for the year ended December 31, 2022 is depreciation and amortization expense of approximately $2,638,000.

As a result of the changes discussed above, net income for the year ended December 31, 2022 was approximately $3,723,000 compared to a net loss of approximately $2,700,000 for the year ended December 31, 2021, an increase in income of approximately $6,423,000 (237.9%).

LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during 2023 was the collection of rents, and interest income generated from the purchase of Treasury Bills. The Partnership’s principal use of cash during 2023 was the purchase of Treasury Bills and the purchase of two properties: the commercial property at 653 Worcester Road for approximately $10,000,000, and the purchase of a mixed use property in the South End neighborhood of Boston, MA for approximately $27,500,000.

The Partnership’s principal sources of cash during 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 majority of cash and cash equivalents of $18,230,463 at December 31, 2023 and $49,560,723 at December 31, 2022 were held in interest bearing accounts at creditworthy financial institutions.

The decrease in cash of $31,330,260 at December 31, 2023 is summarized as follows:

	Year Ended December 31,
	2023		2022
Cash provided by operating activities	$	24,181,904	$	21,539,727
Cash (used in) investing activities		(38,943,050)		(93,073,258)
Cash (used in) provided by financing activities		(2,688,691)		39,605,700
Repurchase of Depositary Receipts, Class B and General Partner Units		(3,925,535)		(5,326,973)
Distributions paid		(9,954,888)		(9,267,981)
Net increase in cash and cash equivalents	$	(31,330,260)	$	(46,522,785)

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 primarily due to improvements to rental properties, and the purchase of new properties. The change in cash used in financing activities is due to the pay down of mortgages, the repurchase of Depositary Receipts, and distributions to partners.

During 2023, the Partnership and its Subsidiary Partnerships completed improvements to certain of the Properties at a total cost of approximately $9,289,000. These improvements were funded from cash reserves and, to some extent, escrow accounts established in connection with the financing or refinancing of the applicable Properties. These sources have been adequate to fully fund improvements. The most significant improvements were made at 1144 Commonwealth, Hamilton Oaks, School Street, Redwood Hills, Westgate Apartments, and Hamilton Green, at a cost of

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$1,982,000, $1,687,000, $701,000, $468,000, $431,000, and $421,000 respectively. The Partnership plans to invest approximately $22,284,000 in capital improvements in 2024. This amount includes approximately $10,067,000 toward the development of a 72 unit apartment complex at Mill Street Development.

On December 29, 2023, the Partnership signed a contract with a general contractor, NEI General Contracting, Inc., for the construction of the Mill Street Development project for approximately $29,700,000. It is anticipated that approximately $10,100,000 will be incurred in 2024 with the balance of $19,600,000 to be incurred in 2025. Project costs will initially be funded from Partnership reserves, but upon completion, the Partnership anticipates closing on a permanent loan, as required by MassHousing under the Chapter 40B program. In connection with these requirements, the Partnership received a term sheet from Brookline Bank for a $15,000,000 loan to be funded upon completion of the project, which is currently anticipated in the fourth quarter of 2025.

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 extended the line of credit until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period covers the current period and phased out on 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. The portfolio’s debt yield fell below the minimum of 9.5% to 8.6%. Consequently, as of December 31, 2022, the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted to draw down any amount from the line of credit. until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement line of credit. See Note 19, Subsequent Events, for additional information.

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.

The Partnership anticipates that cash from operations and interest bearing accounts will be sufficient to fund its current operations, pay distributions, make required debt payments and to finance current improvements to its properties. The Partnership may also 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, increases or decreases in rental income or expenses, or the loss of significant tenants.

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Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of December 31, 2023, the Partnership had a 40%-50% ownership interest in seven Joint Ventures, which all have mortgage indebtedness except Hancock 1025, and Hamilton Essex Development. We do not have control of these partnerships and therefore we account for them using the equity method of consolidation. At December 31, 2023, our proportionate share of the non-recourse debt before unamortized deferred financing costs related to these investments was approximately $70,691,000. See Note 15 to the Consolidated Financial Statements.

Contractual Obligations

As of December 31, 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	$	2,852,762		3,602,548		25,112,083		23,270,649		31,875,215		324,726,284	$	411,439,541
Total Contractual Obligations	$	2,852,762	$	3,602,548	$	25,112,083	$	23,270,649	$	31,875,215	$	324,726,284	$	411,439,541

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 Partnership has no other material contractual obligations to be disclosed.

ITEM 7A. 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 December 31, 2023, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have approximately $577,822,000 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. Including the line of credit, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have variable rate debt of $10,000,000 as of December 31, 2023 ranging from SOFR plus 170 basis points to SOFR plus 310 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 fair value of the Partnership’s fixed rate debt as of December 31, 2023 would be approximately $25,644,000. 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 14 to the Consolidated Financial Statements — “Investment in Unconsolidated Joint Ventures.”

For additional disclosure about market risk, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors That May Affect Future Results”.

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ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements of the Partnership appear on pages F-4 through F-X of this Form 10-K and are indexed herein under Item 15(a)(1).

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures. We have evaluated the design and operation of our disclosure controls and procedures to determine whether they are effective in ensuring that the disclosure of required information is timely made in accordance with the Securities Exchange Act of 1934 (“Exchange Act”) and the rules and forms of the Securities and Exchange Commission. This evaluation was made under the supervision and with the participation of management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) of our General Partner as of the end of the period covered by this annual report on Form 10-K. The CEO and CFO have concluded, based on their reviews, that our disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e), are effective to ensure that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

Management’s Report on Internal Control over Financial Reporting. We are responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15-15(f) under the Exchange Act. We assessed the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in “Internal Control—Integrated Framework (2013)”. Based on that assessment and those criteria, our management, with the participation of the CEO and CFO of the General Partner concluded that our internal control over financial reporting is effective as of December 31, 2023.

We believe that because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The effectiveness of the Partnership’s internal control over financial reporting as of December 31, 2023 has been audited by Miller Wachman LLP, an independent registered public accounting firm, as stated in their report which appears herein.

Changes in Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting during the fourth quarter of 2023 that materially affected or are reasonably likely to materially affect our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

Director and Officer Trading Arrangements

During the three months ended December 31, 2023, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement”.

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ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENT INSPECTIONS

Not Applicable

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

New Real, a Massachusetts corporation and our General Partner, was owned, as of December 31,2023, by the estate of Harold Brown and by Ronald Brown. The estate was closed on January 2, 2024, whereupon the capital stock of NewReal previously owned by the estate of Harold Brown were transferred to JPB Real Estate LLC and Maisie Brown LLC, entities controlled by Jameson Brown and Harley Brown respectively, with each entity acquiring 37.5% of the voting control of NewReal at that time. Harold Brown and his brother Ronald Brown were individual general partners of the Partnership until May 1984, when NewReal, Inc. replaced them as the sole General Partner of the Partnership. The General Partner is responsible for making all decisions and taking all action deemed by it necessary or appropriate to conduct the business of the Partnership.

The General Partner engages The Hamilton Company, Inc. to manage the properties of the Partnership and its Subsidiary Partnerships. Hamilton is wholly owned by JPB Real Estate LLC and Maisie Brown LLC, entities controlled by Jameson Brown and Harley Brown, respectively. See “Item 11. Executive Compensation” for information concerning fees paid by the Partnership to Hamilton during 2023.

Because the General Partner has engaged Hamilton as the manager for the Properties, the General Partner has no employees.

The directors of the General Partner are Ronald Brown, Jameson Brown, Martina Alibrandi, David Aloise, Andrew Bloch, Sally Michael, and David Reier. The directors of the General Partner hold office until their successors are duly elected and qualified.

Ronald Brown and Jameson Brown hold all of the executive officer positions of the General Partner.

The executive officers of the General Partner serve at the pleasure of the Board of Directors. On June 14, 2001, the Board of Directors created an Audit Committee, in accordance with Section 3(a)(58)(A) of the Exchange Act, consisting of three members, and approved the charter of the Audit Committee. As of December 31, 2023, the Audit committee consisted of two members, Martina N. Alibrandi and David Aloise. The Board of Directors has determined that Ms. Alibrandi and Mr. Aloise are audit committee financial experts, as that term is defined in Item 407 of Securities and Exchange Commission Regulation S-K.

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The following table sets forth the name and age of each director and officer of the General Partner and each such person’s principal occupation and affiliation during the preceding five years.

Name and Position	Age	Other Position
Ronald Brown, President and Director (since 1984)	88	Co-General Partner since the Partnerships formation in 1977. Associate, Hamilton Realty Company (since 1967); President, Treasurer, Clerk and Director of R. Brown Partners Inc. (since 1985), a real estate management company; Member, Greater Boston Real Estate Board (since 1981); Director, Brookline Chamber of Commerce (since 1978); Trustee of Reservations (since 1988); Director, Brookline Music School (1997-2004); President, Brookline Chamber of Commerce (1990-1992); Director, Coolidge Corner Theater Foundation (1990-1993); President, Brookline Property Owner’s Association (1981-1990); Trustee, Brookline Hospital (1982-1989); Director, Brookline Symphony Orchestra (1996-2002); Director and Treasurer, Brookline Greenspace Alliance (since 1999). Mr. Brown is a graduate of Northeastern University earning a B.A. degree in Mechanical Engineering and an M.S. degree in Engineering Management. Based on Mr. Brown’s ownership interest in the Partnership, ownership interest in the Partnership’s General Partner, years of experience in the real estate industry and as a long standing member of the Board of Directors, the Board of Directors concluded that Mr. Brown has the requisite experience, qualifications, attributes and skills necessary to serve as a member of the Board of Directors.
Jameson Brown, Treasurer and Director (since 2019)	36	Chief Executive Officer and Chief Operating Officer, The Hamilton Company, Inc. Manager and developer of Residential and Commercial Real Estate (Since 2018); Vice President, Acquisitions and Property Management, The Hamilton Company, Inc. (2016-2018);Vice President, Acquisitions and Development, The Hamilton Company, Inc. (2014-2016);Trustee, The Hamilton Company Charitable Foundation ( since 2011); Chairman, The Hamilton Company Charitable Foundation (2011-2016). Mr. Brown is a graduate of Tulane University, earning a B.A. degree in Management. Based on Mr. Brown’s experience in the real estate industry, the Board of Directors concluded that Mr. Brown has the requisite experience, qualifications, capabilities and skills necessary to serve as a member of the Board of Directors.
David Aloise, Director (since 2007)	69	Director and Chairman of the Partnership’s Audit Committee. Founder and principal of Aloise & Associates, LLC (since 2000) a consulting firm that provides advisory, training and credit risk management services; BankBoston Corporation (1979-2000) Director of Commercial Loan Workout, Managing Director Small Business Banking, Vice President Restructured Real Estate, Vice President C & I Loan Workout; Board of Trustees New England Banking Institute; Advisory Board Member Wells Fargo Retail Finance, LLC; Senior Advisor to Eaton Vance Bank Loan Mutual Fund Group;.Director and Audit Committee Member AGF Global,Inc.; Director, Audit and Compensation Committee Member David’s Bridal, Inc.; Director and Chair of Audit Committee, Anuvu, Inc. Member of the Turnaround Management Association. Mr. Aloise is a graduate of Boston College and the National Commercial Lending Graduate School, University of Oklahoma. Based on Mr. Aloise’s experience in banking, credit markets, small business management and business turnarounds, the Board of Directors concluded that Mr. Aloise has the requisite experience, qualifications, attributes and skills necessary to serve as a member of the Board of Directors.

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Name and Position	Age	Other Position
Andrew Bloch, Director (since 2019)	61	Co-Chief Executive Officer and Chief Financial Officer, The Hamilton Company, Inc. Manager and developer of Residential and Commercial Real Estate (2018- 2022); Chief Financial Officer, The Hamilton Company, Inc. (1998-2022);Vice President, Hamilton Financial, The Hamilton Company, Inc. (1996-1997); Mr. Bloch is a graduate of Hobart College, earning a B.A. degree in Economics and a graduate of Bentley University, earning a M.B.A. degree. Based on Mr. Bloch’s experience in the real estate industry, the Board of Directors concluded that Mr. Bloch has the requisite experience, qualifications, capabilities and skills necessary to serve as a member of the Board of Directors.
Martina Alibrandi Director (since 2022)	64	Founder and principal of Martina N. Alibrandi CPA, PC (since 1987), a CPA firm that specializes in tax preparation and planning for mid-size businesses and high net worth individuals. Ms. Alibrandi is a licensed CPA in Massachusetts; a graduate of Boston College, Carroll School of Management, earning a B.S degree in accounting. Ms. Alibrandi worked for Ernst & Young in New York and Boston (1981-1987) before starting her own accounting practice; New England Realty Associates (NERA) was a client of Ms. Alibrandi (1989-2014) and she was involved in the preparation of the quarterly and annual filings to the SEC; Ms Alibrandi was the Chief Operating Officer of MediVector, Inc. a Boston based drug development company (2014 – 2016); Board Member and Treasurer of Sancta Maria Nursing Facility in Cambridge (since 2021); leasing consultant to Sancta Maria Nursing Facility (since 2018) which involves the leases of commercial space at the facility. Based on Ms. Alibrandi’s extensive business experience, the Board of Directors concluded that she has the requisite experience, qualifications, capabilities and skills necessary to serve as a member of the Board of Directors.
Sally Michael, Director (since 2019)	61	Director of the General Partner. Managing Partner of the Boston office of the law firm Saul Ewing LLP. A member of the Board of Trustees of the Boston Home. Is licensed to practice law in Massachusetts and Rhode Island. Ms. Michael is a graduate of Brandies University, earning a B.A. degree, and holds a J.D. degree from Suffolk University. Based on Ms. Michael’s experience providing legal representation to companies in the real estate industry, the Board of Directors concluded that Ms. Michael has the requisite experience, qualifications, capabilities and skills necessary to serve as a member of the Board of Directors.
David Reier, Director (since 2021)	70	Director of the General Partner. Mr. Reier is a partner of the Boston office of the national law firm Arent Fox LLP. Mr. Reier is licensed to practice law in Massachusetts and is admitted to practice in the U.S. District Court, District of Massachusetts, U.S. Bankruptcy Court, District of Massachusetts, Supreme Court of the United States and U.S. Court of Federal Claims. Mr. Reier holds a Ph.D. degree from the University of California, Berkeley, and a J.D. from Harvard Law School. Based on Mr. Reier’s experience providing legal representation to companies in a range of industries, including real estate, the Board of Directors concluded that Mr. Reier has the requisite experience, qualifications, capabilities and the skills necessary to serve as a member of the Board of Directors.

COMPLIANCE WITH SECTION 16(A) OF THE SECURITIES EXCHANGE ACT OF 1934

Section 16(a) of the Securities Exchange Act of 1934 requires the Partnership’s directors, executive officers, and persons who own more than 10% of a registered class of the Partnership’s equity securities to file with the Securities and Exchange Commission reports of ownership changes and changes in ownership of the Partnership. Officers,

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directors and greater-than-10% shareholders are required by SEC regulations to furnish the Partnership with copies of all Section 16(a) forms they file.

Based solely upon a review of Forms 3 and 4 furnished to the Partnership under Rule 16a-3(e) of the Securities Exchange Act during its most recent fiscal year, Forms 5 furnished to the Partnership with respect to its most recent fiscal year and any written representations received by the Partnership from persons required to file such forms, all of the following persons — either officers, directors or beneficial owners of more than ten percent of any class of equity of the company registered pursuant to Section 12 of the Securities Exchange Act — filed on a timely basis reports required by Section 16(a) of the Securities Exchange Act during the most recent fiscal year.

CODE OF ETHICS

The Partnership, its General Partner and Hamilton, the Partnership’s management company, have adopted a Code of Business Conduct and Ethics, which constitutes a “Code of Ethics” as defined by the Securities and Exchange Commission and applies to executive officers as well as to all other employees. A copy of the Code of Business Conduct and Ethics is available in the “NERA” section of Hamilton’s website at www.thehamiltoncompany.com. To the extent required by the rules of the SEC, the Partnership and its related entities will disclose amendments to and waivers from the Code of Business Conduct and Ethics in the same place on the aforementioned website.

REPORT OF THE AUDIT COMMITTEE

The Audit Committee of NewReal Inc., the General Partner, is currently comprised of David Aloise, and Martina Alibrandi, each of whom is an independent director of NewReal. The Audit Committee operates under a written charter. In March 2022, the Audit Committee charter was amended to clarify that the Audit Committee may consist of two members if a two member committee is permitted under applicable securities laws and the listing standards of the exchange on which the Partnership’s securities are listed.  The listing rules of the NYSE MKT Exchange permit smaller reporting companies such as the Partnership to maintain an audit committee with two members.

The Partnership’s management, which consists of the General Partner, is responsible for the preparation of the Partnership’s financial statements and for maintaining an adequate system of internal controls and processes for that purpose. Miller Wachman LLP (“Miller Wachman”) acts as the Partnership’s independent auditor and is responsible for conducting an independent audit of the Partnership’s annual financial statements and the effectiveness of the Partnership’s internal control over financial reporting as of December 31, 2023 in accordance with the standards of the Public Company Accounting Oversight Board (United States), and issuing a report on the results of their audit. The Audit Committee is responsible for providing independent, objective oversight of both of these processes.

The Audit Committee has reviewed and discussed the audited financial statements for the year ended December 31, 2023 with management of the Partnership and with representatives of Miller Wachman. As a result of these discussions, the Audit Committee believes that the Partnership maintains an effective system of accounting controls that allow it to prepare financial statements that fairly present the Partnership’s financial position and results of its operations. Discussions with Miller Wachman also included the matters required by Statement on Auditing Standard No. 16 (Communications with Audit Committee).

In addition, the Audit Committee reviewed the independence of Miller Wachman. We received written disclosures and a letter from Miller Wachman regarding its independence as required by Independent Standards Board Standards No. 1 and discussed this information with Miller Wachman.

Based on the foregoing, the Audit Committee has recommended that the audited financial statements of the Partnership for the year ended December 31, 2023 be included in the Partnership’s annual report on form 10-K to be filed with the Securities and Exchange Commission.

​
David Aloise
Martina Alibrandi

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ITEM 11. EXECUTIVE COMPENSATION

The Partnership does not have “Executive Compensation.” As more fully described below, the Partnership employs Hamilton, a management company, to which it pays management fees and administrative fees.

The Partnership is not required to and did not pay any compensation to its officers or the officers and directors of the General Partner in 2023. As more fully described below, the Partnership employs Hamilton, which is solely responsible for performing all management and policy making functions for the Partnership. The only compensation paid by the Partnership to any person or entity is in the form of management fees and administrative fees paid to the General Partner, or any management entity employed by the General Partner, in accordance with the Partnership Agreement.

Specifically, the Partnership Agreement provides that the General Partner, or any management entity employed by the General Partner, is entitled to a management fee equal to 4% (2% at Dexter Park and 3% at Linewt) of the rental and other operating income from the Partnership Properties and a mortgage servicing fee equal to 0.5% of the unpaid principal balance of any debt instruments received, held and serviced by the Partnership (the “Management Fee”). The Partnership Agreement also authorizes the General Partner to charge to the Partnership its cost for employing professionals to assist with the administration of the Partnership Properties (the “Administrative Fees”). The Administrative Fee is not charged against the Management Fee. In addition, upon the sale or disposition of any Partnership Properties, the General Partner, or any management entity which is the effective cause of such sale, is entitled to a commission equal to 3% of the gross sale price (the “Commission”), provided that should any other broker be entitled to a commission in connection with the sale, the commission shall be the difference between 3% of the gross sale price and the amount to be paid to such broker.

The General Partner has engaged The Hamilton Company, Inc. to operate and manage the Partnership, and in accordance with the Partnership Agreement, the Management Fee, the Administrative Fees and the Commission are paid to Hamilton. See “Item 10. Directors and Executive Officers of the Registrant.” The total Management Fee paid to Hamilton during 2023 was approximately $2,948,000. The management services provided by Hamilton include but are not limited to: collecting rents and other income; approving, ordering and supervising all repairs and other decorations; terminating leases, evicting tenants, purchasing supplies and equipment, financing and refinancing properties, settling insurance claims, maintaining administrative offices and employing personnel. In 2023, the Partnership and its Subsidiary Partnerships paid administrative fees to Hamilton of approximately $1,289,000 inclusive of construction supervision and architectural fees of approximately $606,000, repairs and maintenance service fees of approximately $261,000, legal fees of approximately $231,000, renting expenses of approximately $66,000 and $125,000 for accounting services. In addition, the Partnership paid $28,000 to Ronald Brown for construction supervision services.

Sally Michael is a Director of NewReal, Inc., and she is a partner of Saul Ewing Arnstein LLP. Saul Ewing LLP billed the Partnership for legal fees totaling $91,000, $84,000, and $168,000 for 2023, 2022, and 2021 respectively.

Additionally, the Hamilton Company received approximately $797,000 from the 40-50% owned Investment Properties of which approximately $699,000 was the management fee, approximately $9,000 was for construction supervision and architectural fees, approximately $57,000 was for maintenance services, approximately $31,000 for legal services and approximately $1,000 for renting expenses. The Advisory Committee held 4 meetings during 2023, and a total of $16,000 was paid for attendance and participation in such meetings. Additionally, the Audit Committee held 4 meetings in 2023 and a total of $80,000 was paid for attendance and participation in such meetings.

Compensation Committee Interlocks and Insider Participation

The Board of Directors of our General Partner does not have a compensation committee. No member of the Board of Directors was at any time in 2023 or at any other time an officer or employee of the General Partner, and no member had any relationship with the Partnership requiring disclosure as a related-person transaction under Item 404 of Regulation S-K. No officer of the General Partner has served on the board of directors or compensation committee of any other entity that has or has had one or more executive officers who served as a member of the Board of Directors of the General Partner at any time in 2023.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

As of March 12, 2024, except as listed below, the General Partner was not aware of any beneficial owner of more than 5% of the outstanding Class A Units or the Depositary Receipts, other than Computershare, which, under the Deposit Agreement, as Depositary, is the record holder of the Class A Units exchanged for Depositary Receipts. As of March 12, 2024, pursuant to the Deposit Agreement, Computershare was serving as the record holder of the Class A Units with respect to which 2,771,321 Depositary Receipts had been issued to approximately 2,300 holders. As of March 12, 2024, there were issued and outstanding 1,476 Class A Units (not including the Depositary Receipts) held by 116 registered unit holders, 22,290 Class B Units and 1,176 General Partnership Units held by the persons listed below. During 2023, zero (0) Class A Units were exchanged for Depositary Receipts.

The following table sets forth certain information regarding each class of Partnership Units beneficially owned as of December 31, 2023 by (i) each person known by the Partnership to beneficially own more than 5% of any class of Partnership Units, (ii) each director and officer of the General Partner and (iii) all directors and officers of the General Partner as a group. For purposes of this table, all Depositary Receipts are included as if they were converted back into Class A Units. The inclusion in the table below of any Units deemed beneficially owned does not constitute an admission that the named persons are direct or indirect beneficial owners of such Units. Unless otherwise indicated, each person listed below has sole voting and investment power with respect to the Units listed.

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	Class A				Class B				General Partnership
			% Of				% Of				% Of
	Number of		Outstanding		Number of		Outstanding		Number of		Outstanding
	Units		Units		Units		Units		Units		Units
	Beneficially		Beneficially		Beneficially		Beneficially		Beneficially		Beneficially
Directors and Officers	Owned		Owned		Owned		Owned		Owned		Owned
Jameson Brown	33	(1) (6)	0.04	% (1) (6)	16,734	(2)	75	% (2)
c/o New England Realty Associates		(5)		(5)
Limited Partnership
39 Brighton Avenue
Allston, MA 02134
Harold Brown 2013 Revocable Trust					—		—		(3)		100	% (3)
c/o Saul Ewing LLP
131 Dartmouth Street
Boston, MA 02116
HBC Holdings, LLC		(1)		(1)		(2)		(2)	—		—
39 Brighton Avenue
Allston, MA 02134
Ronald Brown	3,087	(4) (6)	3.30	% (4) (6)	5,578		25	%		(3)	100	% (3)
c/o New England Realty Associates
Limited Partnership
39 Brighton Avenue
Allston, MA 02134
Martina Alibrandi	—		—		—		—		—		—
341 Beacon Street Unit 4A
Boston, MA 02116
David Aloise	—		—		—		—		—		—
241 Cottage Park Road
Winthrop, MA 02152
Andrew Bloch	—		—		—		—		—		—
6 Oxbow Road
Wayland,MA. 01778
Sally Michael		(1) (5) (6)		(1) (5) (6)		(2)		(2)		(3)	100	% (3)
4 Park Road
Sharon.MA. 02067
David Reier		(1)		(1)	—		—			(3)	100	% (3)
7 Wheeler Road
Lexington,Ma. 02420
NewReal, Inc.	333		0.36	%	—		—		1,174		100	%
39 Brighton Avenue
Allston, MA 02134
All directors and officers as a group	30,298	(7)	32.42	% (7)	22,312	(8)	100	% (8)	1,174	(3)	100	% (3)
5% Owners that are not Directors and Officers
Maura Brown	5,087		5.44	%	—		—		—		—
39 Brighton Avenue
Alston, MA 02134

(1) As of December 31, 2023, 517,849 Depositary Receipts are held of record by HBC Holdings, LLC (HBC). Jameson Brown and Sally Michael are the managers of HBC with joint voting and dispositive control over the Depositary Receipts. Accordingly, Mr. Brown and Ms. Michael may be deemed to beneficially own the Depositary Receipts held by HBC. Because a Depositary Receipt represents beneficial ownership of one-thirtieth of a Class A Unit, HBC was deemed to beneficially own approximately 17,262 Class A Units. (Approximately 18.47% of the outstanding Class A Units).

(2) Consists of Class B Units held by HBC. See Note (1) above. Jameson Brown and Sally Michael as Managers, have voting and investment power over the Class B Units held by the LLC, subject to the provisions of the LLC, and thus may be deemed to beneficially own the Class B Units held by HBC.

(3) Since The Harold Brown 2013 Revocable Trust and Ronald Brown are the controlling stockholders, executive officers and directors of NewReal, Inc., they may be deemed to beneficially own all of the General Partnership Units held of record by NewReal, Inc. Sally Michael and David Reier were the trustees of the Harold Brown 2013 Revocable Trust as of December 31, 2023. The estate was settled on January 2, 2024, giving Jameson Brown and Harley Brown each ownership of 37.5% of NewReal.

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(4) Consists of 92,600 Depositary Receipts held of record jointly by Ronald Brown and his wife. Because a Depositary Receipt represents beneficial ownership of one-thirtieth of a Class A Unit, Ronald Brown may be deemed to beneficially own approximately 3,087 Class A Units. (Approximately 3.30% of the outstanding Class A Units).

(5) Consists of 287,500 Depositary Receipts held by HJB 2009 Holdings, LLC. HJB 2009 Holdings LLC is owned 50% by JPB Real Estate LLC, an entity owned by Jameson Brown, and 50% owned Maisie Brown LLC, an entity owned by Harley Brown. Sally Michael is the Manager. Accordingly Jameson. Brown, Ms. Michael and Harley Brown may be deemed to beneficially own the Depositary Receipts held by the LLC. Because a Depositary Receipt represents beneficial ownership of one thirtieth of a Class A Unit, the Trusts collectively may be deemed to beneficially own approximately 9,583 Class A Units. (Approximately 10.15% of the outstanding Class A Units).

(6) Does not include 62,190 Depositary Receipts held by the Hamilton Company Charitable Foundation. Jameson Brown and Ronald Brown are trustees of the foundation and jointly have voting and dispositive control over the Depositary Receipts. Accordingly, the Browns may be deemed to beneficially own the Depositary Receipts held by the Foundation Because a Depositary Receipt represents beneficial ownership of on thirtieth of a Class A Unit, the Foundation may be deemed to beneficially own approximately 2,073 Class A Units. (Approximately 2.20% of the outstanding Class A Units).

(7) Consists of the Class A Units described in Notes (1) (5) above, plus NewReal, Inc., Jameson Brown and Ronald Brown, as indicated in the table.

(8) Includes the Class B Units described in Note (2) above.

On November 13, 2000, the Partnership adopted a Policy for Establishment of Rule 10b5-1 Trading Plans. Pursuant to this Policy, the Partnership authorized its officers, directors and certain employees, shareholders and affiliates who are deemed “insiders” of the Partnership to adopt individual plans for trading the Partnership’s securities (“Trading Plans”), and established certain procedural requirements relating to the establishment, modification and termination of such Trading Plans. The Partnership does not have any securities authorized for issuance pursuant to any equity compensation plans.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Jameson Brown is the nephew of Ronald Brown.

Jameson Brown and Sally Michael are the managers of HBC Holdings, LLC, which owns 17,262 Class A units of the Partnership, and 75% of the Class B Units of the Partnership;

Sally Michael and David Reier are the Trustees of both the Harold Brown 2009 Irrevocable Trust FBO Harley Oliver Brown and the Harold Brown 2009 Irrevocable Trust FBO Jameson Pruitt Brown, which together own HJB 2009 Holdings, LLC, which owns 9,583 Class A units of the Partnership;

Jameson Brown and Ronald Brown are Trustees of the Hamilton Company Charitable Foundation, which owns 2,073 Class A units of the Partnership.

David Aloise and Martina Alibrandi are determined to be independent under the rules of the NYSE Amex Exchange and the Securities and Exchange Commission. The board holds regularly scheduled meetings.

The Partnership’s written policy with respect to the review and approval of related party transactions is governed by the Partnership Agreement which assigns the Advisory Committee with the responsibility to approve or reject all proposed acquisitions and investments with or from the General Partner or an affiliate. Related parties are identified by the officers of Hamilton and material transactions are reported to and reviewed by the Audit Committee on a quarterly basis.

48

The Partnership invested approximately $34,885,000 in seven limited liability companies formed to acquire Investment Properties. The Partnership has a 40% - 50% ownership interest in each of these limited liability companies accounted for on the equity method of consolidation. The majority stockholder of the General Partner owns between 47.6% and 59% and five current and former employees of Hamilton own between 0% and 2.4% in each of the Investment Properties. See Note 15 of the consolidated financial statements for a description of the Investment Properties.

See also “Item 2. Properties,” “Item 10. Directors and Executive Officers of the Registrant” and “Item 11. Executive Compensation” for information regarding the fees paid to The Hamilton Company, an affiliate of the General Partner.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Miller Wachman LLP served as the Partnership’s independent accountants for the fiscal year ended December 31, 2023 and has reported on the 2023 Consolidated Financial Statements. Aggregate fees rendered to Miller Wachman LLP for the years ended December 31, 2023 and 2022 were as follows:

	2023		2022
Audit Fees
Recurring annual audits and quarterly reviews	$	316,000	$	316,000
Subtotal		316,000		316,000
Tax Fees
Recurring tax compliance for the Partnership, 19 subsidiary Partnerships and 18 General Partnerships		105,000		105,000
Subtotal		105,000		105,000
Total Fees	$	421,000	$	421,000

The Audit Committee’s charter provides that it has the sole authority to review in advance and grant any pre-approvals of (i) all auditing services to be provided by the independent auditor, (ii) all significant non-audit services to be provided by the independent auditors as permitted by Section 10A of the Securities Exchange Act of 1934, and (iii) all fees and the terms of engagement with respect to such services. All audit and non-audit services performed by Miller Wachman during fiscal 2023 and 2022 were pre-approved pursuant to the procedures outlined above.

49

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) 1. Financial Statements:

The following Financial Statements are included in this Form 10- K:

Report of Independent Registered Public Accounting Firm (PCAOB ID 566)

Consolidated Balance Sheets at December 31, 2023 and 2022

Consolidated Statements of Income for the Years ended December 31, 2023, 2022 and 2021

Consolidated Statements of Comprehensive Income for the Years ended December 31, 2023, 2022 and 2021

Consolidated Statements of Changes in Partners’ Capital for the Years ended December 31, 2023, 2022 and 2021

Consolidated Statements of Cash Flows for the Years ended December 31, 2023, 2022 and 2021

Notes to Consolidated Financial Statements

2. Consolidated Financial Statement Schedules:

Financial statement schedules are omitted because they are not applicable or not required, or because the required information is included in the financial statements or notes thereto.

(b) Exhibits:

The exhibits filed as part of this Annual Report on Form 10-K are listed in the Exhibit Index included herewith.

ITEM 16. Form 10-K Summary

Not applicable

50

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners
New England Realty Associates Limited Partnership

We have audited the accompanying consolidated balance sheets of New England Realty Associates Limited Partnership (the Partnership) as of December 31, 2023, and 2022, and the related consolidated statements of income, comprehensive income, partners’ capital, and cash flows for each of the years in the three-year period ended December 31, 2023, and the related notes (collectively referred to as the financial statements). We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Partnership’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2023, 2022, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control—Integrated Framework (2013) issued by COSO.

Basis for Opinion

The Partnership’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express an opinion on the Partnership’s consolidated financial statements and an opinion on the Partnership’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Partnership Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A Partnership’s internal control over financial reporting is a process designed 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. A Partnership’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in

F-1

reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Partnership are being made only in accordance with authorizations of management and directors of the Partnership; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Partnership’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Impairment of Investment Properties

As described in Notes 1 and 2 to the consolidated financial statements, the Partnership recognized an other than temporary impairment related to one investment property under development. The Partnership reviews the carrying value of investment properties on an annual basis or whenever events or changes in circumstances indicate a possible impairment. Events or circumstances that may prompt a review of the carrying value of investment properties may include a significant decrease in the anticipated market price of the investment property, an adverse change to the extent or manner in which an asset may be used, or a significant change in its physical condition or damage due to catastrophic event.

The Partnership reviews its investment properties for potential impairment through an analysis of net operating income. In the event that any impairment indicators are present, the Partnership undertakes additional analyses utilizing expected undiscounted future cash flows, expected disposition proceeds for a given asset and anticipated rates of return for its recent acquisitions. Forecasting of cash flows requires management to make estimates and assumptions about such variables as the anticipated holding period, rental revenues and operating expenses during the holding period, capital expenditures and rates of return.

The principal consideration for our determination that the impairment of investment properties is a critical audit matter is that it involves a high degree of subjectivity in evaluating management's estimates used in determining the undiscounted cash flow estimates. We performed the following procedures, among others, in connection with forming our overall opinion on the consolidated financial statements. We tested management’s internal controls over the identification of potential investment property impairments, such as controls over the Partnership’s annually analysis of net operating income, as well management review controls to identify potential events which could indicate impairment. We examined and evaluated (i) the Partnership’s net operating income trend analysis; (ii) the completeness and accuracy of the underlying data used in management’s assessment of indicators of impairment; and (iii) reasonableness of significant assumptions and methods used in developing the undiscounted cash flow estimates. When the net operating income analysis indicated that additional analysis was required, we assessed whether the significant assumptions, including estimated holding period, rental revenues and operating expenses during the holding period, capital expenditures and rates of return used in determining the future undiscounted cash flows were reasonable.

F-2

Evaluation of the identification of related parties and related party transactions

As discussed in Note 3 to the consolidated financial statements, The General Partner engages The Hamilton Company, Inc. to manage the properties of the Partnership and its Joint Ventures. The Hamilton Company, Inc. is wholly owned by Brown family related entities. In addition, The Partnership shares ownership of seven of its Joint Ventures with the Brown family related entities. Each of these entities is a related party. The Partnership has entered a number of transactions with the Hamilton Company, Inc. including property management services and other professional services such as legal, accounting and construction. These fees are permitted by the Partnership Agreement.

We identified the evaluation of the identification of related parties and related party transactions as a critical audit matter. Auditor judgment was involved in assessing the sufficiency of the procedures performed to identify related parties and related party transactions of the Partnership.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Partnership’s related party process, including controls over the identification of the Partnership’s related party relationships and transactions. We read agreements and contracts between the Partnership and related parties; queried the accounts payable system for transactions with related parties; evaluated the Partnership’s reconciliation of its applicable accounts to the related parties’ records of transactions and balances; read the Partnership’s minutes from meetings of the Board of Directors and related committees; inquired with executive officers, key members of management, and the Audit Committee of the Board of Directors regarding related party transactions; and read public filings, external news and research sources for information related to transactions between the Partnership and related parties.

/s/ Miller Wachman LLP

We have served as the Partnership’s auditor since 1993.

Boston, MA

March 14, 2024

F-3

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31,
	2023		2022
ASSETS
Rental Properties	$	269,804,946	$	241,076,431
Cash and Cash Equivalents		18,230,463		49,560,723
Rents Receivable		953,761		655,814
Real Estate Tax Escrows		2,229,703		1,943,680
Investment in U.S. Treasury Bills		84,700,751		88,905,616
Prepaid Expenses and Other Assets		8,369,775		8,240,629
Investments in Unconsolidated Joint Ventures		1,441,291		1,437,387
Total Assets	$	385,730,690	$	391,820,280
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	408,660,292	$	410,966,199
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		26,707,807		24,419,129
Accounts Payable and Accrued Expenses		5,720,088		7,271,729
Advance Rental Payments and Security Deposits		9,996,887		9,032,580
Total Liabilities		451,085,074		451,689,637
Commitments and Contingent Liabilities (Notes 3 and 9)		—		—
Partners’ Capital 117,431 and 119,255 units outstanding in 2023 and 2022 respectively		(65,354,384)		(59,869,357)
Total Liabilities and Partners’ Capital	$	385,730,690	$	391,820,280

See notes to consolidated financial statements

F-4

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

	Year Ended December 31,
	2023		2022		2021
Revenues
Rental income	$	73,892,393	$	67,560,662	$	62,175,592
Laundry and sundry income		588,975		733,064		462,862
		74,481,368		68,293,726		62,638,454
Expenses
Administrative		2,900,432		2,731,284		2,476,593
Depreciation and amortization		16,773,045		16,373,429		16,671,076
Management fee		2,948,066		2,716,514		2,523,943
Operating		7,748,910		7,324,692		6,471,250
Renting		1,004,666		639,235		1,241,298
Repairs and maintenance		13,366,079		11,270,589		10,069,325
Taxes and insurance		9,954,214		9,149,837		8,942,469
Property impairment		971,109		—		—
		55,666,521		50,205,580		48,395,954
Income Before Other Income (Expense)		18,814,847		18,088,146		14,242,500
Other Income (Expense)
Interest income		4,486,603		1,055,338		87
Interest expense		(15,723,733)		(15,045,477)		(13,629,463)
Income (loss) from investments in unconsolidated joint ventures		876,233		499,783		(567,308)
Other (Loss)		—		(874,517)		(2,745,979)
		(10,360,897)		(14,364,873)		(16,942,663)
Net Income (Loss)	$	8,453,950	$	3,723,273	$	(2,700,163)
Net Income (Loss) per Unit	$	71.34	$	30.99	$	(22.19)
Weighted Average Number of Units Outstanding		118,500		120,160		121,696

See notes to consolidated financial statements.

F-5

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31,
	2023		2022		2021
Net income (loss)	$	8,453,950	$	3,723,273	$	(2,700,163)
Other comprehensive income (loss):
Net unrealized (loss) gain on derivative instruments for interest rate swaps		(58,554)		294,931		—
Comprehensive income (loss)	$	8,395,396	$	4,018,204	$	(2,700,163)

F-6

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

	Units						Partner’s Capital
													Accumulated
	Limited		General		Treasury		Limited				General		Comprehensive
	Class A	Class B	Partnership	Subtotal	Units	Total	Class A		Class B		Partnership		Income		Total
Balance January 1, 2021	144,180	34,243	1,802	180,225	58,469	121,756	$	(33,203,447)	$	(7,852,318)	$	(413,280)		—	$	(41,469,045)
Distribution to Partners	—	—	—	—	—	—		(3,738,512)		(887,897)		(46,731)		—		(4,673,140)
Stock Buyback	—	—	—	—	240	(240)		(360,266)		(85,492)		(4,500)		—		(450,258)
Net (Loss)	—	—	—	—	—	—		(2,160,131)		(513,031)		(27,002)		—		(2,700,164)
Balance December 31 , 2021	144,180	34,243	1,802	180,225	58,709	121,516	$	(39,462,356)	$	(9,338,738)	$	(491,513)		—	$	(49,292,608)
Distribution to Partners	—	—	—	—	—	—		(7,414,385)		(1,760,916)		(92,680)		—		(9,267,981)
Stock Buyback	—	—	—	—	2,261	(2,261)		(4,262,338)		(1,011,403)		(53,232)		—		(5,326,973)
Net Income	—	—	—	—	—	—		2,978,619		707,421		37,233		—		3,723,274
Net unrealized gain on derivative instruments for interest rate swaps	—	—	—	—	—	—		—		—		—		294,931		294,931
Balance December 31, 2022	144,180	34,243	1,802	180,225	60,970	119,255	$	(48,160,460)	$	(11,403,636)	$	(600,192)	$	294,931	$	(59,869,357)
Distribution to Partners	—	—	—	—	—	—		(7,963,910)		(1,891,429)		(99,549)		—		(9,954,888)
Stock Buyback	—	—	—	—	1,824	(1,824)		(3,141,917)		(744,437)		(39,181)		—		(3,925,535)
Net Income	—	—	—	—	—	—		6,763,160		1,606,251		84,540		—		8,453,950
Net unrealized loss on derivative instruments for interest rate swaps	—	—	—	—	—	—		—		—		—		(58,554)	$	(58,554)
Balance December 31, 2023	144,180	34,243	1,802	180,225	62,794	117,431	$	(52,503,128)	$	(12,433,251)	$	(654,383)		236,377	$	(65,354,384)

See notes to consolidated financial statements.

F-7

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2023		2022		2021
Cash Flows from Operating Activities
Net Income (Loss)	$	8,453,950	$	3,723,273	$	(2,700,163)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		16,773,045		16,373,429		16,671,076
Amortization of deferred finance costs		379,784		451,937		312,335
(Income) Loss from investments in joint ventures		(876,233)		(499,783)		567,308
Allowance for doubtful accounts		—		—		831,576
Interest Accrued on Treasury Bills		(571,122)		(573,483)		—
Impairment		971,109		—		—
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures		139,000		125,000		55,250
(Increase) Decrease in rents receivable		(297,947)		279,489		(354,806)
(Decrease) Increase in accounts payable and accrued expense		(1,551,636)		2,946,849		436,641
(Increase) Decrease in real estate tax escrow		(286,023)		(1,081,983)		(326,756)
Decrease (Increase) in prepaid expenses and other assets		83,670		(868,084)		(612,666)
Increase in advance rental payments and security deposits		964,307		663,083		903,363
Total Adjustments		15,727,954		17,816,454		18,483,321
Net cash provided by operating activities		24,181,904		21,539,727		15,783,158
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures		3,602,000		1,240,000		1,066,109
(Investment) in unconsolidated joint ventures		—		—		(81,109)
Investment in U.S. Treasury Bills		(176,450,397)		(177,852,043)		—
Proceeds from U.S. TreasuryBills		181,226,384		89,519,910		—
Improvement of rental properties		(9,288,744)		(5,981,125)		(3,317,446)
Purchase of rental property		(38,032,293)		—		—
Net cash (used in) investing activities		(38,943,050)		(93,073,258)		(2,332,446)
Cash Flows from Financing Activities
Payment of financing costs		(3,000)		—		(179,245)
Proceeds of mortgage notes payable		—		41,889,433		88,582,856
Proceeds (payments) of line of credit net		—		—		(17,000,000)
Principal payments of mortgage notes payable		(2,685,691)		(2,283,733)		(2,294,389)
Stock buyback		(3,925,535)		(5,326,973)		(450,258)
Distributions to partners		(9,954,888)		(9,267,981)		(4,673,140)
Net cash (used in) provided by financing activities		(16,569,114)		25,010,746		63,985,824
Net (Decrease) Increase in Cash and Cash Equivalents		(31,330,260)		(46,522,785)		77,436,536
Cash and Cash Equivalents, at beginning of period		49,560,723		96,083,508		18,646,972
Cash and Cash Equivalents, at end of period	$	18,230,463	$	49,560,723	$	96,083,508

See notes to consolidated financial statements

F-8

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 31 properties which include 22 residential buildings and properties; 5 mixed use residential, retail and office properties; 4 commercial properties, and individual units at one condominium complex. These properties total 2,943 apartment units, 19 condominium units and approximately 130,000 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: Investments 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 investment 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 certain 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

F-9

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 analysis 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. Contingent rent for commercial properties are 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 values for acquired properties are amortized 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.

Under this standard, 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

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 allocates 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 $380,000, $452,000 and $312,000 for the years ended December 31, 2023, 2022 and 2021 respectively.

Derivative Instruments: The Partnership measures derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them as an asset or liability, depending upon the Partnership’s rights or obligations under the applicable derivative contract. For derivatives designated and qualifying as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of the derivative are reported in other comprehensive income (“OCI”) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedging and ineffective portions of hedges are recognized in earnings in the affected period.

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).

F-11

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less.

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 a comprehensive loss of approximately $59,000 in 2023,and comprehensive income of approximately $295,000 in 2022, but had no comprehensive income or loss for 2021.

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 (loss) 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).

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, 2022, or 2021. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At December 31, 2023, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 4.07%. At December 31, 2023 and 2022, respectively approximately $18,711,000 and $49,641,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was $359,309, $239,250 and $331,176 in 2023, 2022 and 2021, 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.

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.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 years ended December 31, 2023, 2022 and 2021 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 refinancing qualify as extinguishment of debt.

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

NOTE 2. RENTAL PROPERTIES

As of December 31, 2023, the Partnership and its Subsidiary Partnerships owned 2,943 residential apartment units in 27 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 December 31, 2023, the Partnership and Subsidiary Partnerships owned two commercial shopping center in Framingham, commercial buildings in Newton and Brookline and commercial space in 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 December 31, 2023 with a total of 688 units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Rental properties consist of the following:

	December 31, 2023		December 31, 2022		Useful Life
Land, improvements and parking lots	$	99,162,143	$	87,405,897	15	-	40	years
Buildings and improvements		277,986,334		256,035,191	15	-	40	years
Kitchen cabinets		16,137,828		14,347,212	5	-	10	years
Carpets		13,127,838		12,047,573	5	-	10	years
Air conditioning		500,000		501,697	5	-	10	years
Laundry equipment		568,716		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		21,348,556		18,716,758	5	-	30	years
Motor vehicles		232,954		171,519			5	years
Fences		91,620		46,872	5	-	15	years
Furniture and fixtures		8,365,039		7,902,182	5	-	7	years
Total fixed assets		440,496,897		400,703,910
Less: Accumulated depreciation		(170,691,951)		(159,627,479)
	$	269,804,946	$	241,076,431

F-14

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

							Cost
			Initial Cost to				Capitalized		Gross Amount at Which								Years
Property Name	Encumbrances		Partnerships(1)				Subsequent to		Carried at Close of Period								Built/	Depreciable
Type	(First				Buildings		Acquisition(2)				Buildings				Accumulated		Redecorated	Lives
Location	Mortgages)		Land		Improvements		Improvements		Land		Improvements		Totals		Depreciation		Date Acquired	Years
Boylston Downtown L.P. Residential Apartments Boston, Massachusetts	$	34,092,579	$	2,112,000	$	8,593,109	$	10,184,183	$	2,268,528	$	18,777,292	$	21,045,820	$	15,996,297	July 1995	(3)
Brookside Associates LLC Residential Apartments Woburn, Massachusetts	$	6,175,000	$	684,000	$	3,116,000	$	542,225	$	684,000	$	3,658,225	$	4,342,225	$	2,951,648	Oct. 2000	(3)
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire	$	11,214,000	$	177,610	$	1,478,359	$	1,641,894	$	177,610	$	3,120,253	$	3,297,863	$	2,490,061	Sept. 1977	(3)
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts	$	5,440,000	$	342,000	$	1,367,669	$	1,051,069	$	342,000	$	2,418,738	$	2,760,738	$	2,104,872	July 1995	(3)
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts	$	32,325,000	$	1,410,000	$	5,664,816	$	6,629,860	$	1,410,000	$	12,294,676	$	13,704,676	$	8,163,969	July 1995	(3)
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts	$	8,190,000	$	91,400	$	740,360	$	1,578,382	$	91,400	$	2,318,742	$	2,410,142	$	1,650,112	Sept. 1977	(3)
Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts	$	3,766,660	$	1,341,737	$	8,457,497	$	144,819	$	1,341,737	$	8,602,316	$	9,944,053	$	4,361,558	Jun. 2011	(3)
Hamilton Cypress LLC Commercial 1031 Exchange Brookline, Massachusetts	$	—	$	2,362,596	$	4,613,985	$	38,233	$	2,362,596	$	4,652,218	$	7,014,814	$	1,990,947	Oct. 2008	(3)
Hamilton Green Apartments, LLC Residential Apartments Andover, Massachusetts	$	32,190,519	$	16,054,336	$	44,794,438	$	(8,068,975)	$	16,054,336	$	36,725,463	$	52,779,799	$	16,828,423	Jul. 2013	(3)
Hamilton Highlands, LLC Residential Apartments Needham,Massachsetts	$	19,437,587	$	6,815,522	$	27,262,087	$	(2,215,754)		6,815,522	$	25,046,333	$	31,861,855		6,292,999	Mar. 2018	(3)
Hamilton Linewt LLC Commercial 1031 Exchange Newton,Massachusetts	$	—	$	884,042	$	2,652,127	$	134,615	$	884,042	$	2,786,742	$	3,670,784	$	1,132,827	Nov. 2007	(3)
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts	$	26,666,000	$	2,175,000	$	12,325,000	$	6,595,768	$	2,175,000	$	18,920,768	$	21,095,768	$	13,931,561	Dec. 1999	(3)
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts	$	3,960,000	$	156,000	$	634,085	$	423,539	$	156,000	$	1,057,624	$	1,213,624	$	860,541	Dec. 1996	(3)
Linhart L.P. Residential / Commercial Newton,Massachusetts	$	—	$	385,000	$	1,540,000	$	2,057,202	$	385,000	$	3,597,202	$	3,982,202	$	2,897,449	Jan. 1995	(3)
Mill Street Gardens, LLC Residential Apartments Woburn, Massachusetts	$	31,000,000	$	9,798,478	$	43,568,912	$	2,981,885		9,798,478	$	46,550,797	$	56,349,275		11,673,659	Dec. 2019	(3)
Mill Street Development,Woburn, Massachusetts	$	—	$	1,375,000	$	1,125,000	$	(599,087)		1,375,000	$	525,913	$	1,900,913		—	Dec. 2019	(3)
NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts	$	10,322,000	$	1,512,000	$	5,701,480	$	1,595,198	$	1,512,000	$	7,296,678	$	8,808,678	$	5,390,982	Jun. 2002	(3)
North Beacon 140 L.P. Residential Apartments Boston, Massachusetts	$	12,683,000	$	936,000	$	3,762,013	$	2,379,219	$	936,000	$	6,141,232	$	7,077,232	$	5,653,863	July 1995	(3)
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts	$	9,608,000	$	46,181	$	878,323	$	1,289,156	$	46,181	$	2,167,479	$	2,213,660	$	1,548,529	Sept. 1977	(3)
Redwood Hills L.P. Residential Apartments Worcester,Massachusetts	$	17,105,000	$	1,200,000	$	4,810,604	$	5,821,846	$	1,200,000	$	10,632,450	$	11,832,450	$	8,159,479	July 1995	(3)
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts	$	20,750,000	$	6,247,153	$	24,954,777	$	(74,870)	$	6,247,153	$	24,879,907	$	31,127,060	$	8,148,830	Sept. 2015	(3)
River Drive L.P Residential Apartments Danvers, Massachusetts	$	9,543,000	$	72,525	$	587,777	$	1,693,812	$	72,525	$	2,281,589	$	2,354,114	$	1,195,277	Sept. 1977	(3)
Riverside Apartments Condominium Units Watertown Massachustts	$	—	$	23,346	$	190,807	$	151,971	$	23,346	$	342,778	$	366,124	$	299,913	Sept. 1977	(3)
School St Assoc LLC Residential Apartments Framingham, Massachusetts	$	26,993,000	$	4,686,728	$	18,746,911	$	457,122	$	4,686,728	$	19,204,033	$	23,890,761	$	13,393,356	Apr. 2003	(3)
WRF Associates LLC Strip Mall Framingham, Massachusetts	$	5,954,546	$	3,280,000	$	4,920,000	$	490,262	$	3,280,000	$	5,410,262	$	8,690,262	$	4,101,814	May 1999	(3)
WCB Associates LLC Residential Apartments Brockton, Massachusetts	$	19,266,000	$	1,335,000	$	7,565,501	$	3,250,982	$	1,335,000	$	10,816,483	$	12,151,483	$	8,461,934	Dec. 1999	(3)
Westgate Apartments Burlington LLC Residential Apartments Burlington, Massachusetts	$	4,494,000	$	44,965	$	4,478,687	$	322,345	$	44,965	$	4,801,032	$	4,845,997	$	3,402,530	Sept. 2004	(3)
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts	$	38,475,000	$	461,300	$	2,424,636	$	6,702,223	$	461,300	$	9,126,859	$	9,588,159	$	6,280,115	Sept. 1977	(3)
Woodland Park Apartments LLC Residential Apartments Newton Massachusetts	$	21,788,650	$	9,114,334	$	35,874,994	$	(1,161,715)	$	9,114,334	$	34,713,279	$	43,827,613	$	10,321,309	July 2017	(3)
653 Worcester Rd Commercial Framingham, Massachusetts	$	—		3,415,051		4,496,849		1,187,232		3,415,051		5,684,081		9,099,132		429,322	Jan.2023	(3)
Shawmut Place LLC, Residential Apartments Boston, Massachusetts	$	—		7,297,401		12,249,725		7,702,495		7,297,401		19,952,220		27,249,621		577,775	July.2023	(3)
	$	411,439,541	$	85,836,705	$	299,576,528	$	54,927,136	$	85,993,233	$	354,503,664	$	440,496,897	$	170,691,951

(1) The initial cost to the Partnerships represents both the balance of mortgages assumed in September 1977, including subsequent adjustments to such amounts, and subsequent acquisitions at cost.

(2) Net of retirements.

(3) In 2023, rental properties were depreciated over the following estimated useful lives.

F-15

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

:

Assets	Life
Buildings and Improvements	10	-	40	years
Other Categories of Assets	5	-	15	years

A reconciliation of rental properties and accumulated depreciation is as follows:

	December 31,
	2023		2022		2021
Rental Properties
Balance, Beginning	$	400,703,910	$	400,588,242	$	398,629,793
Additions:
Buildings, improvements and other assets		45,499,213		5,981,125		3,317,445
		446,203,123		406,569,367		401,947,238
Deduct:
Write-offs of retired or disposed assets		4,580,382		5,865,457		1,358,996
Impairments		1,125,844		—		—
Balance, Ending	$	440,496,897	$	400,703,910	$	400,588,242
Accumulated Depreciation
Balance, Beginning	$	159,627,479	$	149,233,040	$	134,019,906
Add:
Depreciation for the year		15,799,589		16,259,896		16,572,131
		175,427,068		165,492,936		150,592,037
Deduct
Accumulated depreciation of retired or disposed assets		4,580,382		5,865,457		1,358,997
Impairments		154,735		—		—
Balance, Ending	$	170,691,951	$	159,627,479	$	149,233,040

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%, payable on a monthly basis through July 31, 2032. 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, which was included in Other Loss in the Consolidated Statements of Income. The remaining balance of approximately $89,000,000 will be used for general

F-16

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

partnership purposes. See schedule in Note 5, Mortgage Notes Payable, for the details of the transaction as it relates to the specific properties.

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%.

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 for in- place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use 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, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

In December, 2023, the Partnership received approval from MassHousing to construct a 72 unit apartment building in accordance with Chapter 40B to include 17 affordable units on the Mill Street Development site. In order to initiate construction, the Partnership expects to demolish the current building structures and start construction in 2024. No tenants are now occupying the property and with the resulting loss of future cash, Management has recorded an impairment charge of approximately $971,000, the net book value of the building for the Mill Street Development property. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project.

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by an entity that is owned by the majority shareholder of 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 $2,948,000, $2,717,000 and $2,524,000 in 2023, 2022 and 2021, respectively.

The Partnership Agreement permits the General Partner or the Hamilton Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. In 2023, 2022 and 2021, approximately $1,289,000, $747,000 and $1,086,000, was charged to NERA for legal, accounting, construction, maintenance, rental and architectural services supervision of capital improvements and brokerage commissions. Of the 2023 expenses referred to above, approximately $261,000 consisted of repairs and maintenance, $356,000 of administrative expense and approximately $66,000 for renting expenses. Approximately $606,000 of expenses for construction, architectural

F-17

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

services and supervision of capital projects were capitalized in rental properties. Additionally in 2023, the Hamilton Company received approximately $797,000 from the Investment Properties of which approximately $699,000 was the management fee, approximately $9,000 was for construction, architectural services and supervision of capital projects, approximately $57,000 was for maintenance services, approximately $31,000 was for administrative services, and approximately $1,000 for renting expenses The management fee is equal to 4% of gross receipts rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the Hamilton Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $4,180,000, $3,875,000 and $3,640,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The Hamilton 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. In 2023, 2022, and 2021, the Partnership recognized approximately $64,000, $85,000 and $45,000 respectively for the employer’s match contribution to the plan. See Note 16.

Bookkeeping and accounting functions are provided by the Hamilton Company’s accounting staff, which consists of approximately 14 people. During the years ended December 31, 2023, 2022 and 2021 the Hamilton Company charged the Partnership $125,000 per year for bookkeeping and accounting services included in administrative expenses above.

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, as of December 31, 2023, are various related entities of the Brown family, and five current and previous employees of the Hamilton Company. The Brown Family related entities’ ownership interest is between 47.6% and 59%. See Note 14 for a description of the properties and their operations.

The Advisory Committee held 4 meetings during 2023, and a total of $16,000 was paid for attendance and participation in such meetings. Additionally, the Audit Committee held 4 meetings in 2023 and a total of $80,000 was paid for attendance and participation in such meetings.

Sally Michael is a Director of NewReal,Inc., and she is a partner at Saul Ewing LLP. Saul Ewing billed the Partnership for legal fees totaling $91,000, $84,000,and $168,000 for 2023, 2022, and 2021, respectively.

See Note 8 for information regarding the repurchase of Class B and General Partnership Units.

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $3,601,000 and $3,406,000 of security deposits are included in prepaid expenses and other assets at December 31, 2023 and 2022, respectively. The security deposits and escrow accounts are restricted cash.

Included in prepaid expenses and other assets at December 31, 2023 and 2022, respectively, is approximately $1,784,000 and $1,979,000, held in escrow to fund future capital improvements.

Intangible assets on the acquisition of rental properties are included in prepaid expenses and other assets. Intangible assets are approximately $1,549,000 net of accumulated amortization of approximately $872,000 at December 31, 2023.

Financing fees in association with the refinancing and the line of credit of approximately $52,000 and $109,000 are net of accumulated amortization of approximately $130,000, and $70,000 at December 31, 2023 and 2022 respectively.

F-18

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

NOTE 5. MORTGAGE NOTES PAYABLE

Mortgages Payable

At December 31, 2023 and 2022, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At December 31, 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 December 31, 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 $2,779,000 and $3,159,000 are net of accumulated amortization of approximately $1,353,000 and $973,000 at December 31, 2023 and 2022, respectively, which offset the Mortgage Notes Payable.

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

Approximate annual maturities at December 31, 2023 are as follows:

2024—current maturities	$	2,853,000
2025		3,602,000
2026		25,112,000
2027		23,271,000
2028		31,875,000
Thereafter		324,726,000
		411,439,000
Less: unamortized deferred financing costs		2,779,000
	$	408,660,000

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”).

F-19

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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.

The breakout by property of the material balances by year are as follows:

		PREVIOUS		CURRENT		DEFERRED
		MORTGAGE		MORTGAGE		FINANCE		PREPAYMENT
PROPERTY NAME		BALANCE		BALANCE		COSTS		PENALTY
Clovelly Apts LP	$	4,160,000	$	11,214,000	$	121,817	$	167,141
Comm 1137 LP		3,750,000		5,440,000		60,504		151,314
Comm 1144 LP		14,780,000		32,325,000		340,007		592,728
Executive Apts LP		2,415,000		8,190,000		89,333		96,434
N.Beacon 140 LP		6,937,000		12,683,000		135,813		277,003
Olde English Apt LP		3,080,000		9,608,000		104,345		123,956
Redwood Hills LP		6,743,000		17,105,000		188,406		271,204
River Dr. LP		3,465,000		9,543,000		104,605		139,218
Highland St. Apts LP		1,050,000		3,960,000		45,076		41,928
WCB Assoc. LLC		7,000,000		19,266,000		204,586		408,873
Hamilton Oaks Assoc. LP		11,925,000		26,666,000		281,596		476,180
	$	65,305,000	$	156,000,000	$	1,676,088	$	2,745,979
		PREVIOUS		CURRENT		DEFERRED
		MORTGAGE		MORTGAGE		FINANCE		PREPAYMENT
PROPERTY NAME		BALANCE		BALANCE		COSTS		PENALTY
Dean Street	$	5,687,000	$	10,322,000	$	109,841	$	160,943
School Street		13,178,000		26,993,000		287,159		171,676
Westgate Apartments		15,700,000		38,475,000		409,299		401,714
Courtyard at Westgate		2,500,000		4,494,000		47,831		100,211
	$	37,065,000	$	80,284,000	$	854,130	$	834,544

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.

F-20

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 covered the current period and phased out on 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. The portfolio’s debt yield fell below the minimum of 9.5% to 8.6%. Consequently, as of December 31, 2023, the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted to draw down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a Lender for a replacement line of credit. See Note 19, SUBSEQUENT EVENTS, for additional information.

The interest rate for the new term was LIBOR plus 300 basis points. The costs associated with the modification and renewal of the line of credit was approximately $179,000. On December 3, 2021, the Partnership paid off the outstanding balance of $17,000,000 on the Line of Credit.

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 December 31, 2023 and 2022 respectively, amounts received for prepaid rents of approximately $3,078,000 and $2,618,000 are included in cash and cash equivalents, and security deposits of approximately $3,601,000 and $3,406,000 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 total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

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

F-21

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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.

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 31, 2024. In addition to the quarterly distribution, there will be a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024.

In 2023 the Partnership paid a total distribution of an aggregate $84.00 per Unit ($2.80 per Receipt) for a total payment of $9,954,888. In 2022 the Partnership paid a total distribution 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:

	Year Ended
	December 31,
	2023		2022
Net Income per Depositary Receipt	$	2.38	$	1.03
Distributions per Depositary Receipt	$	2.80	$	2.56

NOTE 8. TREASURY UNITS

Treasury Units at December 31, 2023 are as follows:

Class A	50,235
Class B	11,931
General Partnership	628
	62,794

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 December 31, 2023, the Partnership has repurchased 1,532,234 Depositary Receipts at an average price of $31.72 per receipt (or $951.52 per underlying Class A Unit), 4,394 Class B Units and 231 General Partnership Units, both at an average price of $ 1,259.00 per Unit, totaling approximately $54,421,000 including brokerage fees paid by the Partnership.

During the year ended December 31, 2023, the Partnership purchased a total of 43,774 Depositary Receipts.

F-22

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

The average price was $71.71 per receipt or $2,151.25 per unit. The cost including commission was $3,141,917. The Partnership was required to repurchase 346.54 Class B Units and 18.24 General Partnership units at a cost of $744,437 and $39,181 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 year ended December 31, 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 December 31, 2023 as follows:

	Commercial
	Property Leases
2024	$	3,099,064
2025		2,798,161
2026		2,551,671
2027		2,230,705
2028		2,014,354
Thereafter		10,105,126
	$	22,799,081

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 $683,000, $541,000 and $563,000 for the years ended December 31, 2023, 2022 and 2021 respectively. Trader Joe’s and Walgreen’s, tenants at Staples Plaza and 653 Worcester Road, Framingham, MA. respectively, are approximately 22% of the total commercial rental income.

F-23

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 December 31,	expiring leases		for expiring leases	leases expiring	expiring leases
2024	$	416,581	29,166	29	12	%
2025		253,320	7,455	7	7	%
2026		361,731	14,221	8	10	%
2027		309,189	8,884	5	9	%
2028		251,316	6,929	2	7	%
2029		433,890	15,138	3	12	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—
Thereafter		1,428,261	46,987	4	40	%
Totals	$	3,564,888	129,886	59	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $1,195,000 and $1,007,000 at December 31, 2023 and 2022. Included in rents receivable at December 31, 2023 is approximately $417,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis.

NOTE 11. CASH FLOW INFORMATION

During the years ended December 31, 2023, 2022 and 2021, cash paid for interest was approximately $15,356,000, $14,425,000 and $13,298,000 respectively. Cash paid for state income taxes was approximately $66,000, $65,000 and $117,000 during the years ended December 31, 2023, 2022 and 2021 respectively. In 2022, 5 properties were involved in a non-cash financing activity of approximately $43,000,000 In 2021, 11 properties were involved in a non-cash financing activity of approximately $65,000,000.

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At December 31, 2023 and 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 December 31, 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 considers all highly liquid investments purchased with original maturities of three months or less at the time of purchase to be cash equivalents. Cash, cash equivalents, and restricted cash include cash held in checking, U.S. Treasury Bills, and money market accounts.

The Partnership has investments in Treasury Bills some of which mature over a period greater than 90 days and are

F-24

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 are classified within Level I of the fair value hierarchy.

At December 31, 2023 and 2022, we estimated the fair value of our mortgages payable 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 December 31, 2023 and 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 December 31, 2023 and 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, treasury bills, 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 mortgages and 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 cash equivalents, Treasury bills, and debt.

	Dec 31, 2023		Dec 31, 2022
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	18,230,463	18,230,463	49,560,723	49,560,723
Treasury bills	84,700,751	84,799,638	88,905,616	88,908,540
Total Assets	102,931,214	103,030,101	138,466,339	138,469,263
Liabilities
Mortgage payable *
- Partnership properties	408,660,292	359,092,343	410,966,199	355,629,060
- Investment properties	165,969,481	156,280,958	166,090,968	153,710,522
Total Liabilities	574,629,773	515,373,301	577,057,167	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 December 31, 2023 and 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

F-25

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

since December 31, 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 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 $111,000 will be reclassified as a decrease to interest expense.

As of December 31, 2023, the Partnership had one interest rate swap outstanding with a notional amount of approximately $236,000 designated as cash flow hedges of interest rate risk. As of December 31, 2023, the Partnership did not have any interest rate derivatives in a net liability position.

The table below presents the fair value of the Partnership’s derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2023 and 2022.

	Fair Value
Asset Derivatives designated	December 31,		December 31,
as hedging instruments	2023		2022		Balance sheet location
Interest rate swaps	$	236,377	$	294,931	Prepaid Expenses and Other Assets

The table below presents the effect the Partnership’s derivative financial instruments on the consolidated statements of income for the years ended December 31, 2023 and 2022

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative						Location of Gain or (Loss) Reclassified from Accumulated OCI Into	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income						Location of Gain or (Loss) Recognized in Income on	Total Amount of Interest Expense presented in the consolidated statements of operations
Year Ended December 31,	2023		2022		2021		Income	2023		2022		2021		Derivative	2023		2022		2021
Interest rate swaps	$	(58,554)	$	294,931	$	—	Interest expense	$	—	$	—	$	—	Interest and other investment income (loss)	$	(15,723,733)	$	(15,045,477)	$	(13,629,463)

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 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 $9,989,000 was approximately $1,535,000 more than statement

F-26

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

income for the year ended December 31, 2023. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2023 is approximately $8,000,000 less than the statement basis. The primary reasons for the difference in tax basis are accelerated depreciation, bonus depreciation and other timing differences. The Partnership’s Federal tax basis in its joint venture investments is approximately $6,000,000 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 consolidates financial statements.

The following reconciles GAAP net income to taxable income:

	For the year ended
	December 31,
	2023		2022		2021
	(in thousands)
Financial statement (“book”) net income (loss)	$	8,454	$	3,723	$	(2,700)
Book/Tax differences from depreciation		(2,300)		4,160		5,673
Book/Tax differences from Investment Properties		351		1,258		(87)
Increase in prepaid rent and allowances		732		554		(46)
Other items		2,752		1,273		1,216
Taxable income	$	9,989	$	10,968	$	4,056

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 adjustments 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 December 31, 2023, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2020 forward.

F-27

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 Hamilton Company. The Brown Family related entities 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, 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 it matured 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 December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $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 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286. The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC. 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 December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $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.

F-28

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

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 Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. 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. All residential units have been 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. In October 2004, the Joint Venture obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Joint Venture obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. 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. At December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000. 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. 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 Apartments, LLC is known as Hamilton Place. In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance was due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. 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. At December 31, 2023, the balance of the mortgage before unamortized deferred financing costs is approximately $16,900,000. 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. The investment is referred to as Hamilton On Main Apartments, LLC.

F-29

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

On August 23, 2023, Hamilton on Main Apartments, LLC (the “Borrower”), a 50% owned joint venture of the Partnership, received notice from KeyBank, as servicer for the lender of a $16,900,000 loan, indicating that the Borrower failed to comply with certain terms of the loan documents pertaining to the transfer of interests in the Borrower that occurred on the occasion of Harold Brown’s death, and that such transfer constitutes an event of default under the loan documents. While the Borrower has disputed that any events of default actually exist, it is working diligently with KeyBank to obtain KeyBank’s consent to the transfer. On March 8, 2024, the Borrower received notice from KeyBank that it was providing ex-post facto consent to the transfer of interest subject to certain conditions being met by the Borrower. The Partnership’s share of costs associated with the transfer of interests in the Borrower is approximately $107,000.

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 December 31, 2023, the balance of this mortgage before unamortized deferred financing costs is approximately $8,483,000. This investment is referred to as 345 Franklin, LLC.

F-30

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Summary financial information as of December 31, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,403,706		$	2,583,190		$	4,481,606		$	75,027		$	4,190,275		$	12,493,492		$	73,179,575		$	102,406,871
Cash & Cash Equivalents		1,141,751			108,348			155,557			16,339			148,334			1,204,116			1,904,290			4,678,735
Rent Receivable		208,968			78,753			117			4,120			2,957			22,319			115,904			433,138
Real Estate Tax Escrow		75,475			—			29,290			—			34,998			136,711			—			276,474
Prepaid Expenses & Other Assets		320,627			44,182			73,604			505			50,327			227,421			2,494,734			3,211,400
Total Assets	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,975,869		$	—		$	8,452,812		$	—		$	5,936,919		$	16,889,299		$	124,714,582		$	165,969,481
Accounts Payable & Accrued Expense		141,743			3,000			64,335			3,486			50,990			352,780			742,749			1,359,083
Advance Rental Pmts & Security Deposits		337,593			20,660			304,499			735			173,222			500,103			3,033,534			4,370,346
Total Liabilities		10,455,205			23,660			8,821,646			4,221			6,161,131			17,742,182			128,490,865			171,698,910
Partners’ Capital		(3,304,678)			2,790,813			(4,081,472)			91,770			(1,734,240)			(3,658,123)			(50,796,362)			(60,692,292)
Total Liabilities and Capital	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,395,406		$	—		$	45,885		$	—		$	—		$	—			1,441,291
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,652,340)		$	—		$	(2,040,737)		$	—		$	(867,121)		$	(1,829,063)		$	(20,318,546)			(26,707,807)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(25,266,517)
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 February 1, 2024		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

F-31

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Summary financial information for the year ended December 31, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,831,196	$	241,884	$	1,709,429	$	98,734	$	1,334,398	$	3,879,734	$	16,461,345	$	25,556,720
Laundry and Sundry Income		3,691		—		115		—		(148)		23,163		137,498		164,319
		1,834,887		241,884		1,709,544		98,734		1,334,250		3,902,897		16,598,843		25,721,039
Expenses
Administrative		20,455		3,020		30,349		3,300		20,021		92,589		262,394		432,128
Depreciation and Amortization		470,253		11,709		346,856		3,264		339,605		1,065,353		3,685,524		5,922,564
Management Fees		72,806		10,489		67,116		4,011		53,347		152,943		338,355		699,067
Operating		284,173		—		89,139		807		105,254		455,086		1,279,434		2,213,893
Renting		61,559		—		52,686		13		5,801		54,856		107,250		282,165
Repairs and Maintenance		178,816		—		150,845		—		94,262		625,687		1,902,110		2,951,720
Taxes and Insurance		281,346		61,557		193,215		17,165		147,197		527,665		2,630,668		3,858,813
		1,369,408		86,775		930,206		28,560		765,487		2,974,179		10,205,735		16,360,350
Income Before Other Income		465,479		155,109		779,338		70,174		568,763		928,718		6,393,108		9,360,689
Other Income (Loss)
Interest Expense		(752,933)		—		(344,847)		—		(237,749)		(788,376)		(5,026,076)		(7,149,981)
Other(Expense)		—		—		—		—		—		(213,240)		—		(213,240)
Interest income		6,830		375		1,593		161		2,592		7,376		11,861		30,788
		(746,103)		375		(343,254)		161		(235,157)		(994,240)		(5,014,215)		(7,332,433)
Net (Loss) Income	$	(280,624)	$	155,484	$	436,084	$	70,335	$	333,606	$	(65,522)	$	1,378,893	$	2,028,256
Net (Loss) Income —NERA 50%	$	(140,312)	$	77,741	$	218,041	$	35,167	$	166,802	$	(32,762)				324,677
Net Income —NERA 40%													$	551,556		551,556
															$	876,233

F-32

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Future annual mortgage maturities at December 31, 2023 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
12/31/2024	$	—	$	239,883	$	—	$	16,900,000	$	—	$	17,139,883
12/31/2025		10,000,000		249,333		—		—		—		10,249,333
12/31/2026		—		259,155		—		—		—		259,155
12/31/2027		—		269,365		—		—		—		269,365
12/31/2028		—		7,465,039		—		—		125,000,000		132,465,039
Thereafter		—		—		6,000,000		—		—		6,000,000
		10,000,000		8,482,775		6,000,000		16,900,000		125,000,000		166,382,775
Less: unamortized deferred financing costs		(24,131)		(29,963)		(63,081)		(10,701)		(285,418)		(413,294)
	$	9,975,869	$	8,452,812	$	5,936,919	$	16,889,299	$	124,714,582	$	165,969,481

At December 31, 2023 the weighted average interest rate on the above mortgages was 4.23%. The effective rate was 4.29% including the amortization expense of deferred financing costs.

F-33

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Summary financial information as of December 31, 2022

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,829,640		$	2,585,680		$	4,810,934		$	78,291		$	4,467,772		$	13,456,133		$	75,907,107		$	107,135,557
Cash & Cash Equivalents		985,849			110,907			358,016			29,065			328,742			1,377,250			3,866,113			7,055,942
Rent Receivable		202,221			78,436			—			4,915			2,600			9,565			106,165			403,902
Real Estate Tax Escrow		74,423			—			27,771			—			34,842			130,911			—			267,947
Prepaid Expenses & Other Assets		321,912			53,316			111,018			493			26,238			186,990			2,288,330			2,988,297
Total Assets	$	7,414,045		$	2,828,339		$	5,307,739		$	112,764		$	4,860,194		$	15,160,849		$	82,167,715		$	117,851,645
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,962,080		$	—		$	8,676,945		$	—		$	5,928,736		$	16,873,248		$	124,649,959		$	166,090,968
Accounts Payable & Accrued Expense		165,576			43,000			84,025			23,329			162,623			556,239			2,012,851			3,047,643
Advance Rental Pmts& Security Deposits		310,443			—			269,326			—			171,680			463,963			2,950,161			4,165,573
Total Liabilities		10,438,099			43,000			9,030,296			23,329			6,263,039			17,893,450			129,612,971			173,304,184
Partners’ Capital		(3,024,054)			2,785,339			(3,722,557)			89,435			(1,402,845)			(2,732,601)			(47,445,256)			(55,452,539)
Total Liabilities and Capital	$	7,414,045		$	2,828,339		$	5,307,739		$	112,764			4,860,194		$	15,160,849		$	82,167,715		$	117,851,645
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,392,669		$	—		$	44,718		$			$			$			$	1,437,387
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,512,027)		$	—		$	(1,861,278)		$	—		$	(701,422)		$	(1,366,300)		$	(18,978,102)			(24,419,129)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(22,981,742)
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 February 1, 2023		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

F-34

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Summary financial information for the year ended December 31, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,640,480	$	296,313	$	1,516,329	$	102,802	$	1,212,854	$	3,644,802	$	15,136,724	$	23,550,304
Laundry and Sundry Income		17,652		—		245		—				77,589		135,607		231,093
		1,658,132		296,313		1,516,574		102,802		1,212,854		3,722,391		15,272,331		23,781,397
Expenses
Administrative		19,543		6,548		33,656		2,793		14,579		68,948		218,772		364,839
Depreciation and Amortization		478,538		11,709		346,793		3,264		338,919		1,081,096		3,768,367		6,028,686
Management Fees		75,216		11,468		59,715		4,160		48,548		146,115		316,813		662,035
Operating		229,528		—		76,108		1,344		129,232		400,489		1,167,733		2,004,434
Renting		25,926		—		32,332		—		9,873		51,327		91,041		210,499
Repairs and Maintenance		185,275		3,180		184,057		—		106,689		626,909		1,694,941		2,801,051
Taxes and Insurance		266,024		63,139		182,098		18,513		153,117		513,699		2,503,801		3,700,391
		1,280,050		96,044		914,759		30,074		800,957		2,888,583		9,761,468		15,771,935
Income Before Other Income		378,082		200,269		601,815		72,728		411,897		833,808		5,510,863		8,009,462
Other Income (Loss)
Interest Expense		(412,329)		—		(351,175)		—		(237,851)		(759,704)		(5,081,626)		(6,842,685)
Other Expenses				—		—		—		—		(81,360)				(81,360)
		(412,329)		—		(351,175)		—		(237,851)		(841,064)		(5,081,626)		(6,924,045)
Net Income (Loss)	$	(34,247)	$	200,269	$	250,640	$	72,729	$	174,046	$	(7,256)	$	429,237	$	1,085,417
Net Income (Loss)—NERA 50%	$	(17,124)	$	100,134	$	125,319	$	36,365	$	87,023	$	(3,629)				328,088
Net Income —NERA 40%													$	171,695		171,695
															$	499,783

F-35

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Summary financial information for the year ended December 31, 2021

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,263,331		$	2,588,169		$	5,062,602		$	81,555		$	4,697,616		$	14,334,539		$	78,755,698		$	111,783,510
Cash & Cash Equivalents		333,699			98,674			155,627			11,845			156,058			565,171			2,070,558			3,391,632
Rent Receivable		232,521			68,828			9,905			6,111			6,999			37,750			175,213			537,327
Real Estate Tax Escrow		76,651			—			29,999			—			36,451			109,588			—			252,689
Prepaid Expenses & Other Assets		301,043			62,399			117,197			446			24,009			181,941			2,102,717			2,789,752
Total Assets	$	7,207,245		$	2,818,070		$	5,375,330		$	99,957		$	4,921,133		$	15,228,989		$	83,104,186		$	118,754,910
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,948,291		$	—		$	8,892,331		$	—		$	5,920,552		$	16,857,197		$	124,585,336		$	166,203,707
Accounts Payable & Accrued Expense		68,265			3,000			52,392			3,251			48,145			188,012			670,624			1,033,689
Advance Rental Pmts& Security Deposits		180,497			—			228,803			—			159,324			434,126			2,522,719			3,525,469
Total Liabilities		10,197,053			3,000			9,173,526			3,251			6,128,021			17,479,335			127,778,679			170,762,865
Partners’ Capital		(2,989,808)			2,815,070			(3,798,196)			96,706			(1,206,888)			(2,250,346)			(44,674,493)			(52,007,955)
Total Liabilities and Capital	$	7,207,245		$	2,818,070		$	5,375,330		$	99,957		$	4,921,133		$	15,228,989		$	83,104,186		$	118,754,910
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$			$	1,407,535		$	—		$	48,353		$			$			$				1,455,888
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,494,905)		$	—		$	(1,899,098)		$	—		$	(603,445)		$	(1,125,174)		$	(17,869,797)			(22,992,420)
																						$	(21,536,532)
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 February 1, 2022		—			—			—			—			—			—			—			—
Unsold units		—			—			—			175			—			—			—			—
		—			—			—			—			—			—			—			—

F-36

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2023

Summary financial information for the year ended December 31, 2021

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,609,397	$	391,878	$	1,360,472	$	98,135	$	1,139,865	$	3,370,478	$	12,866,983	$	20,837,208
Laundry and Sundry Income		12,761		—		1,494		—		3,913		38,697		97,781		154,646
		1,622,158		391,878		1,361,966		98,135		1,143,778		3,409,175		12,964,764		20,991,854
Expenses
Administrative		76,338		2,875		31,566		2,812		16,450		68,008		205,460		403,509
Depreciation and Amortization		479,512		20,298		343,834		3,264		338,362		1,089,225		3,742,118		6,016,613
Management Fees		52,617		12,922		54,178		3,801		45,541		131,221		274,882		575,162
Operating		168,160		—		58,667		334		98,115		432,061		1,023,732		1,781,069
Renting		101,328		—		54,672		—		4,419		90,842		460,718		711,979
Repairs and Maintenance		159,593		520		129,548		—		120,626		624,475		1,814,342		2,849,104
Taxes and Insurance		261,145		60,764		175,183		19,467		144,533		451,937		2,426,021		3,539,050
		1,298,693		97,379		847,648		29,678		768,046		2,887,769		9,947,273		15,876,486
Income Before Other Income		323,465		294,499		514,318		68,457		375,732		521,406		3,017,491		5,115,368
Other Income (Loss)
Interest Expense		(246,339)		—		(359,036)		—		(237,845)		(759,698)		(5,055,677)		(6,658,595)
Interest Income		—		—		—		—		—		—		1,222		1,222
		(246,339)		—		(359,036)		—		(237,845)		(759,698)		(5,054,455)		(6,657,373)
Net Income (Loss)	$	77,126	$	294,499	$	155,282	$	68,458	$	137,887	$	(238,292)	$	(2,036,964)	$	(1,542,005)
Net Income (Loss)—NERA 50%	$	38,563	$	147,249	$	77,641	$	34,229	$	68,944	$	(119,147)				247,478
Net Income —NERA 40%													$	(814,786)		(814,786)
															$	(567,308)

F-37

NOTE 16. EMPLOYEE BENEFIT 401(k) PLANS

Effective January 1, 2019, employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Hamilton 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. Beginning January 1, 2019, the Partnership matched 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 year ended December 31, 2023, 2022 and 2021 was approximately $64,000, $85,000 and $45,000 respectively.

NOTE 17. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The guidance requires incremental disclosures related to a public entity’s reportable segments. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Partnership is currently evaluating the impact of adopting ASU 2023-07 will have on the Partnership's consolidated financial statements.

F-38

NOTE 18. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Three Months Ended
	March 31, 2023		June 30, 2023		September 30, 2023		December 31, 2023		Total
Revenue	$	17,691,686	$	18,101,036	$	18,961,642	$	19,727,004	$	74,481,368
Expenses		13,240,321		13,362,686		14,062,381		15,001,133		55,666,521
Income Before Other Income		4,451,365		4,738,350		4,899,261		4,725,871		18,814,847
Other Expenses		(2,696,990)		(2,513,746)		(2,724,035)		(2,426,126)		(10,360,897)
Net Income	$	1,754,375	$	2,224,604	$	2,175,226	$	2,299,745	$	8,453,950
Net Income Per Unit	$	14.72	$	18.73	$	18.38	$	19.51	$	71.34
Net Income Per Depositary Receipt	$	0.49	$	0.62	$	0.61	$	0.65	$	2.38

	Three Months Ended
	March 31, 2022		June 30, 2022		September 30, 2022		December 31, 2022		Total
Revenue	$	16,580,409	$	16,931,928	$	17,078,383	$	17,703,006	$	68,293,726
Expenses		12,803,459		12,321,006		12,517,586		12,563,529		50,205,580
Income Before Other Income		3,776,950		4,610,922		4,560,797		5,139,477		18,088,146
Other Expenses		(3,434,532)		(4,367,937)		(3,565,573)		(2,996,831)		(14,364,873)
Net Income	$	342,418	$	242,985	$	995,224	$	2,142,646	$	3,723,273
Net Income Per Unit	$	2.82	$	2.02	$	8.32	$	17.83	$	30.99
Net Income Per Depositary Receipt	$	0.09	$	0.07	$	0.28	$	0.59	$	1.03

F-39

NOTE 19—SUBSEQUENT EVENTS

From January 1, 2024 through March 14, 2024, the Partnership has purchased 2,753 Depository Receipts.

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 28, 2024. In addition to the quarterly distribution, there will be a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024.

The Partnership is currently in negotiations with a lender or a replacement line of credit.

NOTE 20—QUALIFYING ACCOUNTS

New England Realty Associates Limited Partnership

Valuation and Qualifying Accounts

		Additions
	Balance at	Charged to	Charged to		Balance
	Beginning	Costs and	other account	Deductions	at end
Description	of Period	Expenses	describe	Describe(a)	of Period
Year Ended December 31, 2023:
Deducted from asset accounts:
Allowance for doubtful accounts	1,007,025	1,462,371		1,274,685	1,194,711
Year Ended December 31, 2022:
Deducted from asset accounts:
Allowance for doubtful accounts	831,576	845,551		670,102	1,007,025
Year Ended December 31, 2021:
Deducted from asset accounts:
Allowance for doubtful accounts	1,453,695	436,222		1,058,341	831,576

(a) Uncollectible accounts written off

F-40

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
(3)	Second Amended and Restated Contract of Limited Partnership.(1)
(4)	(a)	Specimen certificate representing Depositary Receipts.(2)
	(b)	Description of rights of holders of Partnership securities.(2)
	(c)	Deposit Agreement, dated August 12, 1987, between the General Partner and the First National Bank of Boston.(3)
	(d)	Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934) (4)
(10.1)	Purchase and Sale Agreement by and between Sally A. Starr and Lisa Brown, Trustees of Omnibus Realty Trust, a nominee trust.(5)
(10.2)	Commitment letter from Wachovia Multifamily Capital, Inc. to The Hamilton Company dated January 11, 2008.(6)
(10.3)	Amendment dated February 27, 2008 to Commitment letter from Wachovia Multifamily Capital, Inc. to The Hamilton Company dated January 11, 2008.(7)
(10.4)	Purchase and Sale and Escrow Agreement dated September 1, 2009 by and between 175 Free Street Investors LLC, as Seller, The Hamilton Company, as Purchaser, and First American Title Insurance Company, as Escrow Agent.(8)
(10.5)	Limited Liability Company Operating Agreement of HBC Holdings, LLC.(9)
(10.6)	Limited Liability Company Agreement of Hamilton Park Towers, LLC.(10)
(10.7)	Pledge Agreement dated October 28, 2009 by and between New England Realty Associates Limited Partnership and HBC Holdings, LLC.(11)
(10.8)	Promissory Note dated October 28, 2009 of New England Realty Associates Limited Partnership in favor of HBC Holdings, LLC.(12)
(10.9)	MultiFamily Note—CME of Hamilton Park Towers, LLC, as Borrower, in favor of Wachovia Multifamily Capital, Inc., as Lender, in the principal amount of $89,914,000 dated October 28, 2009.(13)
(10.10)	Purchase and sale agreement by and between Avon Street Apartments and 503-509 Pleasant Street, LLC. (20)
(10.11)	Purchase and Sale Agreement dated May 20, 2011 by and between Battlegreen Apartments Trust and Hamilton Battle Green LLC (14).
(10.12)	Promissory Note dated June 1, 2011 by and between Avon Street Apartments Limited Partnership, as Maker, and Harold Brown, as Lender (15).
(10.13)	Pledge Agreement dated June 1, 2011 by and between Avon Street Apartments Limited Partnership, as Pledgor, and Harold Brown, as Pledgee (16).
(10.14)	Hamilton Green Purchase Agreement dated June 14, 2013 (17)
(10.15)	Loan Agreement dated July 15, 2013(18)
(10.16)	Revolving Line of Credit dated July 31, 2014 (19)
(10.17)	Purchase and Sale Agreement dated August 27, 2015, between Avalon II Massachusetts Value I, L.P., and the Residences at Captain Parker, LLC (25)
(10.18)	Multifamily Loan and Security Agreement dated January 7, 2016 between Residences at Captain Parker, LLC (“Captain Parker”) and KeyBank National Association (“KeyBank”)(21)
(10.19)	Multifamily Note Floating Rate dated January 7, 2016, in the principal amount of $20,071,000 made by Captain Parker (22)
(10.20)	Multifamily Mortgage, Assignment of Rents, Security Agreement and Fixture filing Massachusetts dated January 7, 2016 between Captain Parker and KeyBank (23)
(10.21)	Guaranty dated January 7, 2016, made by New England realty associates Limited Partnership as a limited guarantor (24)
(10.22)	Offer to Purchase Agreement dated June 19, 2017 by and between New England Realty Associates Limited Partnership as buyer and M.J. Realty Trust II, as seller. (26)
(10.23)	Assignment and Assumption Agreement dated July 6, 2017, by and between New England Realty Associates Limited Partnership and M.J. Realty Trust II. (27)
(10.24)	Promissory Note dated July 6, 2017 in the principal amount of $16,000,000 payable to HBC Holdings, LLC, made by New England Realty Associates Limited Partnership.(28)

S-1

(10.25)	Pledge Agreement dated July 6, 2017, by and between New England Associates Limited Partnership and HBC Holdings, LLC.(29)
(10.26)	Mortgage Note dated as of May 31,2018 in the principal amount of $125,000,000 payable to John Hancock Life Insurance Company (U.S.A.), made by Hamilton Park Towers, LLC (30)
(10.27)	Mortgage, assignment of Leases and Rents and Security Agreement dated May 31, 2018 by and between Hamilton Park Towers, LLC and John Hancock Life Insurance Company (U.S.A.).(31)
(10.28)	Guaranty Agreement dated as of May 31, 2018 made by New England Realty Associates Limited Partnership and HBC Holdings, LLC in favor of John Hancock Life Insurance Company (U.S.A.) (32)
(10.29)	Purchase and Sale agreement dated September 27, 2019, between Country Club Garden Apartments and The Hamilton Company, or its Nominee. (33)
(10.30)	Loan Agreement dated December 20, 2019, by and between Mill Street Gardens, LLC, and Insurance Strategy Funding Corp. LLC. (34).
(10.31)	Promissory Note dated December 20, 2019, in the principal amount of $35,000,000, payable to Insurance Strategy Funding Corp. LLC. by Mill Street Gardens, LLC (35)
(10.32)	Guaranty dated December 20, 2019, made by New England Realty Associates Limited Partnership as a Guarantor (36)
(10.33)	Mortgage Deed, Assignment of Rents and Security Agreement dated December 20, 2019 between Mill Street Gardens, LLC and Insurance Strategy Funding Corp. LLC. (37)
(10.34)	Master Credit Facility Agreement dated as of November 30, 2021 by and between KeyBank National Association as the Lender and New England Realty Associates Limited Partnership as the Borrower. (38)
(10.35)	Mortgage, Assignment of Leases and Rents and Security Agreement and Fixture Filings dated November 30, 2021 between New England Realty Associates Limited Partnership and KeyBank National Association. (39)
(10.36)	Rate Lock Authorization Agreements dated as of April 25, 2022, by and between KeyBank National Associates as the Lender, and New England Realty Associates Limited Partnership as the Borrower.(40)
(10.37)	Reaffirmation, Joinder and First Amendment to the Master Credit Facility Agreement dated as of June 16, 2022, by and between KeyBank National Association as the Lender, and New England Realty Associates Limited Partnership as the Borrower.(41)
(10.38)	Multifamily Note, Mortgage, dated June 16, 2022 by and between New England Realty Associates Limited Partnership and KeyBank National Association.(42)
(10.39)	Assignment of Leases and Rents and Security Agreement and Fixture Filings dated June 16, 2022 by and between New England Realty Associates Limited Partnership and KeyBank National Association.(43)
(10.40)	Multifamily Note, Mortgage, Assignment of Leases and Rents and Security Agreement and Fixture Filings dated June 16, 2022 by and between New England Realty Associates Limited Partnership and KeyBank National Association.(44)
(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 New Real, 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).
(97)	New England Realty Associates Limited Partnership Clawback Policy
(99.1)	Combined Financial Statements of Significant Subsidiaries
(101.1)	The following financial statements from New England Realty Associates Limited Partnership Quarterly Report on Form 10-K for the year ended December 31, 2023 formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Changes in Partners’ Capital, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements.
(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.

S-2

(1) Incorporated by reference to Exhibit A to the Partnership’s Statement Furnished in Connection with the Solicitation of Consents filed under the Securities Exchange Act of 1934 on October 14, 1986.

(2) Incorporated herein by reference to Exhibit A to Exhibit 2(b) to the Partnership’s Registration Statement on Form 8-A, filed under the Securities Exchange Act of 1934 on August 17, 1987.

(3) Incorporated herein by reference to Exhibit 2(b) to the Partnership’s Registration Statement on Form 8-A, filed under the Securities Exchange Act of 1934 on August 17, 1987.

(4) Incorporated by reference to Exhibit 4(d) to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 12, 2020.

(5) Incorporated by reference to Exhibit 2.1 to the Partnership’s Current Report on Form 8-K dated June 30, 1995.

(6) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K dated January 11, 2008 and filed with the Securities and Exchange Commission on February 6, 2008.

(7) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K dated February 27, 2008 and filed with the Securities and Exchange Commission on March 4, 2008.

(8) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2009.

(9) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2009.

(10) Incorporated herein by reference to Exhibit 10.3 to the Partnership’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2009.

(11) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on November 3, 2009.

(12) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on November 3, 2009.

(13) Incorporated herein by reference to Exhibit 10.3 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on November 3, 2009.

(14) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on May 26, 2011

(15) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on June 7, 2011.

(16) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on June 7, 2011.

(17) Incorporated by reference to Exhibit 10.1 to the Partnership’s Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on August 12, 2013.

(18) Incorporated by reference to Exhibit 10.2 to the Partnership’s Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on August 12, 2013.

S-3

(19) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on August 6, 2014.

(20) Incorporated herein by reference to Exhibit 10.10 to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 11, 2011.

(21) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on January 14, 2016.

(22) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on January 14, 2016.

(23) Incorporated herein by reference to Exhibit 10.3 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on January 14, 2016.

(24) Incorporated herein by reference to Exhibit 10.4 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on January 14, 2016.

(25) Incorporated herein by reference to Exhibit 10.17 to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 11, 2016.

(26) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Current report on Form 8-K as filed with the Securities and Exchange Commission on July 11, 2017.

(27) Incorporated herein by reference to Exhibit 10.3 to the Partnership’s Current report on Form 8-K as filed with the Securities and Exchange Commission on July 11, 2017.

(28) Incorporated herein by reference to Exhibit 10.4 to the Partnership’s Current report on Form 8-K as filed with the securities and Exchange Commission on July 11, 2017.

(29) Incorporated herein by reference to Exhibit 10.5 to the Partnership’s Current report on Form 8-K as filed with the securities and Exchange Commission on July 11, 2017.

(30) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current report on Form 8-K as filed with the Securities and Exchange Commission on June 7, 2018.

(31) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Current report on Form 8-K as filed with the Securities and Exchange Commission on June 7, 2018.

(32) Incorporated herein by reference to Exhibit 10.3 to the Partnership’s Current report on Form 8-K as filed with the Securities and Exchange Commission on June 7, 2018.

(33) Incorporated herein by reference to Exhibit 10.29 to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 12, 2020

(34) Incorporated herein by reference to Exhibit 10.30 to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 12, 2020

(35) Incorporated herein by reference to Exhibit 10.31 to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 12, 2020

(36) Incorporated herein by reference to Exhibit 10.32 to the Partnership’s Form 10-K as filed with the Securities and Exchange Commission on March 12, 2020

(37) Incorporated herein by reference to Exhibit 10.33 to the Partnership’s Form 10-K as filed with the Securities and

S-4

Exchange Commission on March 12, 2020

(38) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Form 8-K as filed with the Securities and Exchange Commission on December 6, 2021

(39) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Form 8-K as filed with the Securities and Exchange Commission on December 6, 2021.

(40) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on April 29, 2022.

(41) Incorporated herein by reference to Exhibit 10.1 to the Partnership’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on June 22, 2022.

(42) Incorporated herein by reference to Exhibit 10.2 to the Partnership’s Form 8-K as filed with the Securities and Exchange Commission on June 22, 2022.

(43) Incorporated herein by reference to Exhibit 10.2.1 to the Partnership’s Form 8-K as filed with the Securities and Exchange Commission on June 22, 2022.

(44) Incorporated herein by reference to Exhibit 10.2.2 to the Partnership’s Form 8-K as filed with the Securities and Exchange Commission on June 22, 2022.

S-5

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/ Jameson Brown
	Jameson Brown, Treasurer
By:	/s/ Ronald Brown
	Ronald Brown, President

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 (Principal	March 14, 2024
Ronald Brown	Executive Officer)
/s/ Jameson Brown	Treasurer and Director of the General Partner (Principal	March 14, 2024
Jameson Brown	Financial Officer and Principal Accounting Officer)
/s/ David Aloise	Director of the General Partner	March 14, 2024
David Aloise
/s/ Martina Alibrandi	Director of the General Partner	March 14, 2024
Martina Alibrandi
/s/ Andrew Bloch	Director of the General Partner	March 14, 2024
Andrew Bloch
/s/ Sally Michael	Director of the General Partner	March 14, 2024
Sally Michael
/s/ David Reier	Director of the General Partner	March 14, 2024
David Reier

S-6

EX-31.1

Exhibit 31.1

New England Realty Associates Limited Partnership

CERTIFICATION

I, Ronald Brown, certify that:

1.I have reviewed this Annual Report on Form 10-K 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: March 14, 2024

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Jameson Brown, certify that:

1.I have reviewed this Annual Report on Form 10-K 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: March 14, 2024

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 Annual Report on Form 10-K of New England Realty Associates Limited Partnership for the year ended December 31, 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: March 14, 2024

/s/ Jameson Brown

Jameson Brown

Principal Financial Officer

(Treasurer and Director of the

Partnership’s General Partner, NewReal, Inc.)

Date: March 14, 2024

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.

EX-97

Exhibit 97

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

CLAWBACK POLICY

Not Applicable

New England Realty Associates Limited Partnership has no employees, and therefore, a clawback policy is not applicable.

EX-99.1

Exhibit 99.1

HAMILTON PARK TOWERS LLC

Financial Statements—Unconsolidated Significant Joint Venture

As of December 31, 2023 (unaudited) and 2022 (unaudited)

and for the Years ended December 31, 2023 (unaudited), 2022 (unaudited) and 2021 (audited)

Hamilton Park Towers LLC

(Unconsolidated Significant Joint Venture)

Balance Sheets

	December 31,
	2023		2022
ASSETS		(unaudited)		(unaudited)
Rental Properties	$	73,179,575	$	75,907,107
Cash and Cash Equivalents		1,904,290		3,866,113
Rent Receivable		115,904		106,165
Prepaid Expenses and Other Assets		2,494,735		2,288,330
Total Assets	$	77,694,504	$	82,167,715
LIABILITIES AND MEMBERS’ CAPITAL
Mortgage Note Payable	$	124,714,582	$	124,649,959
Accounts Payable and Accrued Expenses		742,750		2,012,851
Advance Rental Payments and Security Deposits		3,033,534		2,950,161
Total Liabilities		128,490,866		129,612,971
Commitments and Contingent Liabilities (Note7)
Members’ Capital		(50,796,362)		(47,445,256)
Total Liabilities and Members’ Capital	$	77,694,504	$	82,167,715
Member’s Capital—NERA 40%	$	(20,318,545)	$	(18,978,102)

See notes to accompany the financial statements.

1

Hamilton Park Towers, LLC

(Unconsolidated Significant Joint Venture)

Statements of Operation

	Year Ended December 31,
	2023		2022		2021
Revenues		(unaudited)		(unaudited)		(audited)
Rental Income	$	16,461,345	$	15,136,724	$	12,866,983
Laundry and Sundry Income		137,498		135,607		97,781
		16,598,843		15,272,331		12,964,764
Expenses
Administrative		262,394		218,772		205,460
Depreciation and Amortization		3,685,524		3,768,367		3,742,118
Management Fees		338,355		316,813		274,882
Operating		1,279,434		1,167,733		1,023,732
Renting		107,250		91,041		460,718
Repairs and Maintenance		1,902,109		1,694,941		1,814,342
Taxes and Insurance		2,630,668		2,503,801		2,426,021
		10,205,734		9,761,468		9,947,273
Income Before Other Income		6,393,109		5,510,863		3,017,491
Other Income (Loss)
Interest Expense		(5,026,076)		(5,081,626)		(5,055,677)
Interest Income		11,861		—		1,222
		(5,014,215)		(5,081,626)		(5,054,455)
Net( Loss) Income	$	1,378,894	$	429,237	$	(2,036,964)
NERA—40%	$	551,558	$	171,695	$	(814,786)

See notes to accompany the financial statements.

2

Hamilton Park Towers LLC

(Unconsolidated Significant Joint Venture)

Statements of Changes in Members’ Capital

	Hamilton
	Park Towers LLC
Balance, January 1,2021 (audited)	$	(42,237,529)
Distribution to members		(400,000)
Net (Loss)		(2,036,964)
Balance, December 31,2021 (audited)	$	(44,674,493)
Distribution to members		(3,200,000)
Net Income		429,237
Balance, December 31,2022 (unaudited)	$	(47,445,256)
Distribution to members		(4,730,000)
Net Income		1,378,894
Balance, December 31,2023 (unaudited)	$	(50,796,362)
Allocation to New England Realty Associations Limited Partnership for 2023
Percentage Ownership		40	%
Distributions Received	$	(1,892,000)
Net Income	$	551,558
Member’s Capital	$	(20,318,545)

See notes to accompany the financial statements.

3

HAMILTON PARK TOWERS LLC

(Unconsolidated Significant Joint Venture)

Statements of Cash Flow

	Year Ended December 31,
	2023		2022		2021
Cash Flows from Operating Activites		(unaudited)		(unaudited)		(audited)
Net Income (Loss)	$	1,378,894	$	429,237	$	(2,036,964)
Adjustments to reconcile net income to net cash provided by (used in) operating activites:
Depreciation and amortization		3,685,524		3,768,367		3,742,118
Amortization of deferred financing costs		64,623		64,623		64,623
Changes in operating assets and liabilities:
(Increase) Decrease in rent receivable		(9,739)		69,048		340,198
(Decrease) Increase in accounts payable and accrued expenses		(1,270,101)		1,342,227		(5,147)
(Increase) in prepaid expenses and other assets		(206,405)		(185,613)		(631,583)
Increase in advance rental payments and security deposits		83,373		427,442		306,626
Total adjustments		2,347,275		5,486,094		3,816,835
Net cash provided by operating activites		3,726,169		5,915,331		1,779,871
Cash flows from investing activites
Improvement of rental properties		(957,992)		(919,776)		(1,734,398)
Net cash (used in) investing activites		(957,992)		(919,776)		(1,734,398)
Cash flows from financing activites
Distributions to members		(4,730,000)		(3,200,000)		(400,000)
Net cash (used in) financing activities		(4,730,000)		(3,200,000)		(400,000)
Net (Decrease) Increase in cash and cash equivalents		(1,961,823)		1,795,555		(354,527)
Cash and cash equivalents, at beginning of year		3,866,113		2,070,558		2,425,085
Cash and cash equivalents, at end of year	$	1,904,290	$	3,866,113	$	2,070,558
Supplementary cash flow statement information:
Cash paid for interest	$	4,987,500	$	4,987,500	$	4,987,500
Cash paid for state taxes	$	2,672	$	1,100	$	2,022

See notes to accompany the financial statements.

4

HAMILTON PARK TOWERS LLC

(Unconsolidated Significant Joint Venture)

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023 (unaudited), 2022 (unaudited), and 2021 (audited)

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: Hamilton Park Towers LLC, (the “Joint Venture” or the “Property” or the “Partnership”), was organized in Massachusetts in 2009. The Joint Venture owns and operates 409 residential apartment units located in Brookline, Massachusetts. The Joint Venture is owned 40% by New England Realty Associates Limited Partnership (“NERA”) as of and for the year ended December 31,2021, and was a “significant unconsolidated subsidiary” under Rule 3-09 of Regulation S-X requiring separated financial statements. The Joint Venture is no longer considered a significant subsidiary in 2023 and 2022.

Basis of Preparation: The preparation of the financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates.

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.

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. Concessions made on residential leases 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.

Under this standard, 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 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. Significant acquisitions with long term leases are evaluated to determine if a portion of the purchase price is allocable to intangibles such as non-market rate rents.

5

Upon acquisition of rental property, the Joint Venture estimated 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 Joint Venture allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Joint Venture 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 Joint Venture 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 estimates 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 Joint Venture’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. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals 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 Joint Venture’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. In all cases, amortization of such costs is included in interest expense and was approximately $65,000 for the years ended December 31, 2023, 2022, and 2021.

Income Taxes: The financial statements have been prepared on the basis that the joint venture is entitled to tax treatment as a partnership. Accordingly, no provision for income taxes has been recorded. (See note 10)

Cash Equivalents: The Joint Venture considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less.

Comprehensive Income: Comprehensive income is defined as changes in members’ equity, exclusive of transactions with owners (such as capital contributions and dividends). The Joint Venture did not have any comprehensive income items in 2023, 2022, or 2021 other than net income as reported.

Concentration of Credit Risks and Financial Instruments: The Joint Venture property is located in Brookline, Massachusetts, and is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the revenues in 2023, 2022 or 2021. The Joint Venture makes its temporary cash investments with high-credit-quality financial institutions. At December 31, 2023 and 2022, respectively approximately $3,335,000 and $3,616,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $84,000 in 2023, $23,000 in 2022 and $39,000 in 2021.

Interest Capitalized: The Joint Venture 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 years ended December 31, 2023, 2022 and 2021 there was no capitalized interest.

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

6

Subsequent Events: The Joint Venture has evaluated subsequent events through March 14, 2024, the date the financial statements were issued.

NOTE 2. RENTAL PROPERTIES

Rental Properties Consist of the Following:

	Year Ended December 31,
	2023		2022		Useful Life
Land, Improvements and Parking Lots	$	30,640,686	$	30,471,238	15	–	40	years
Buildings and Improvements		72,742,119		72,751,302	15	–	40	years
Kitchen Cabinets		2,995,201		2,630,454	5	–	10	years
Carpets		324,374		310,750	5	–	10	years
Air Conditioning		—		11,515	5	–	10	years
Laundry Equipment		10,823		4,719	5	–	7	years
Elevators		2,123,645		2,123,645	20	–	40	years
Equipment		8,469,626		8,446,473	5	–	30	years
Fences		6,381		6,381	5	–	15	years
Furniture and Fixtures		116,602		590,059	5	–	7	years
Smoke Alarms		47,217		—	5	–	7	years
		117,476,674		117,346,536
Less Accumulated Depreciation		(44,297,099)		(41,439,429)
	$	73,179,575	$	75,907,107

	Hamilton Park
	Towers LLC
Rental Properties at Cost:
Balance, January 1, 2021	$	116,163,808
Additions		1,734,398
Write off of retired assets		(572,926)
Balance, December 31, 2021		117,325,280
Additions		919,776
Write off of retired assets		(898,519)
Balance, December 31, 2022		117,346,537
Additions		957,992
Write off of retired assets		(827,854)
Balance, December 31, 2023	$	117,476,675
Accumulated Depreciation:
Balance, January 1, 2021	$	35,400,390
Depreciation for year		3,742,118
Write off of retired assets		(572,926)
Balance, December 31, 2021		38,569,582
Depreciation for year		3,768,367
Write off of retired assets		(898,519)
Balance, December 31, 2022		41,439,430
Depreciation for year		3,685,524
Write off of retired assets		(827,854)
Balance, December 31, 2023	$	44,297,100
Net Book Value	$	73,179,575

NOTE 3. RELATED PARTY TRANSACTIONS

The Joint Venture’s property is managed by an entity, (The “management company”) that is owned by the majority shareholder of the General Partner.The management fee is equal to 2% at Hamilton Park Towers of gross receipts of rental revenue and laundry income. Total management fees paid were approximately $338,000, $317,000 and $275,000 in 2023, 2022 and 2021, respectively.

7

In 2023, the Management Company also received approximately $6,000 for construction supervision and architectural fees, $26,000 for maintenance services and $15,000 for administrative services.

In 2022, the Management Company also received approximately $12,000 for construction supervision and architectural fees, $19,000 for maintenance services and $15,000 for administrative services.

In 2021, the Management Company also received approximately $55,000 for construction supervision and architectural fees, $16,000 for maintenance services and $5,000 for administrative services.

3NOTE 4. OTHER ASSETS

Approximately $2,266,000 and $2,076,000 of security deposits are included in prepaid expenses and other assets at December 31, 2023 and 2022, respectively. Security deposits and escrow accounts are restricted cash.

NOTE 5. MORTGAGE NOTES PAYABLE

At December 31, 2023 and 2022, the mortgage payable is secured by a first mortgage on properties referred to in Note 2. At December 31, 2023, the interest rate on the loan is 3.99%, payable in monthly installments aggregating approximately $416,000, including interest, through June 1, 2028. The mortgage is subject to prepayment penalties.

The Joint Venture has pledged tenant leases as additional collateral for this loan.

Approximate annual maturities at December 31, 2023 are as follows:

	Hamilton Park
	Towers LLC
2024	$	—
2025		—
2026		—
2027		—
2028		125,000,000
Thereafter		—
		125,000,000
Less: unamortized deferred financing costs		285,000
	$	124,715,000

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Joint Venture’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. Prepaid rents are approximately $73,000 and $867,000 at December 31, 2023 and 2022, respectively. Security deposits are approximately $2,266,000 and $2,076,000 at December 31, 2023 and 2022, respectively.

NOTE 7. COMMITMENTS AND CONTINGENCIES

From time to time, the Joint Venture may be involved in various ordinary routine litigation incidents to its business. The Joint Venture either has insurance coverage or provides for any uninsured claims when appropriate. The Joint Venture is not involved in any material pending legal proceedings.

NOTE 8. RENTAL INCOME

Substantially all rental income was related to residential apartments with leases of one year of less.

Rents receivable are approximately net of allowances for doubtful accounts of $64,000 and $21,000 at December 31, 2023 and 2022, respectively.

8

NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair Value Measurements on a Recurring Basis

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

Financial Assets and Liabilities not Measured at Fair Value

At December 31, 2023 and 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.

At December 31, 2023 and 2022, we estimated the fair value of our mortgage payable 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 December 31, 2023 and 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.

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

		Carrying Amount		Estimated Fair Value
Mortgage Note Payable
At December 31, 2023	*	$	124,714,582	$	116,592,561
At December 31, 2022	*	$	124,649,959	$	114,298,474

*Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of December 31, 2023 and 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 December 31, 2023 and current estimates of fair value may differ significantly from the amounts presented herein.

NOTE 10. TAXABLE INCOME AND TAX BASIS

The Joint Venture is not subject to income taxes as it files a partnership tax return whereby its income or loss is reportable by the members.

Taxable income or loss is different than financial statement income because of intangible assets, accelerated depreciation, different tax lives, and timing differences related to prepaid rents and allowances. The Partnership share of the taxable income is approximately $8,000 more than statement income for the year ended December 31, 2023. The cumulative tax basis of the Joint Venture real estate allocated to the Partnership at December 31, 2023 is approximately $4,200,000 more than the statement basis primarily due to the purchase price allocation to intangible assets at Hamilton Park Towers and accelerated depreciation.

The Joint Venture adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Joint Venture recognized no material adjustments regarding its tax accounting treatment. The Joint Venture 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 Joint Venture is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of December 31, 2023, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2021 forward.

9

NOTE 11. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

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

10

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2023	Mar. 12, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 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	NYSE
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 141,482,628
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0000746514
Amendment Flag	false
Auditor Name	Miller Wachman LLP
Auditor Firm ID	566
Auditor Location	Boston, MA
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		93,853
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,290

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Rental Properties	$ 269,804,946	$ 241,076,431
Cash and Cash Equivalents	18,230,463	49,560,723
Rents Receivable	953,761	655,814
Real Estate Tax Escrows	2,229,703	1,943,680
Investment in U.S. Treasury Bills	84,700,751	88,905,616
Prepaid Expenses and Other Assets	8,369,775	8,240,629
Investments in Unconsolidated Joint Ventures	1,441,291	1,437,387
Total Assets	385,730,690	391,820,280
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	408,660,292	410,966,199
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture	26,707,807	24,419,129
Accounts Payable and Accrued Expenses	5,720,088	7,271,729
Advance Rental Payments and Security Deposits	9,996,887	9,032,580
Total Liabilities	451,085,074	451,689,637
Commitments and Contingent Liabilities (Notes 3 and 9)
Partners' Capital 117,431 and 119,255 units outstanding in 2023 and 2022 respectively	(65,354,384)	(59,869,357)
Total Liabilities and Partners' Capital	$ 385,730,690	$ 391,820,280

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Partners' Capital, units outstanding	117,431	119,255	121,516	121,756

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues
Rental income	$ 73,892,393	$ 67,560,662	$ 62,175,592
Laundry and sundry income	588,975	733,064	462,862
Total Revenues	74,481,368	68,293,726	62,638,454
Expenses
Administrative	2,900,432	2,731,284	2,476,593
Depreciation and amortization	16,773,045	16,373,429	16,671,076
Operating	7,748,910	7,324,692	6,471,250
Renting	1,004,666	639,235	1,241,298
Repairs and maintenance	13,366,079	11,270,589	10,069,325
Taxes and insurance	9,954,214	9,149,837	8,942,469
Property Impairment	971,109
Total Expenses	55,666,521	50,205,580	48,395,954
Income Before Other Income (Expense)	18,814,847	18,088,146	14,242,500
Other Income (Expense)
Interest income	4,486,603	1,055,338	87
Interest expense	(15,723,733)	(15,045,477)	(13,629,463)
Income (loss) from investments in unconsolidated joint ventures	876,233	499,783	(567,308)
Other income (expenses)		(874,517)	(2,745,979)
Total Other Income (Expense)	(10,360,897)	(14,364,873)	(16,942,663)
Net Income (Loss)	$ 8,453,950	$ 3,723,273	$ (2,700,163)
Income per Unit
Net Income (Loss) per Unit	$ 71.34	$ 30.99	$ (22.19)
Weighted Average Number of Units Outstanding	118,500	120,160	121,696
Related Party [Member]
Expenses
Management fee	$ 2,948,066	$ 2,716,514	$ 2,523,943

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 8,453,950	$ 3,723,273	$ (2,700,163)
Net unrealized (loss) gain on derivative instruments for interest rate swaps	(58,554)	294,931	0
Comprehensive income (loss)	$ 8,395,396	$ 4,018,204	$ (2,700,163)

XML

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER'S CAPITAL - USD ($)	3 Months Ended				12 Months Ended			196 Months Ended
	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Increase (Decrease) in Partners' Capital
Balance		$ (59,869,357)		$ (49,292,608)	$ (59,869,357)	$ (49,292,608)	$ (41,469,045)
Balance (in units)		119,255		121,516	119,255	121,516	121,756
Distribution to Partners					$ (9,954,888)	$ (9,267,981)	$ (4,673,140)
Stock Buyback					$ (3,925,535)	$ (5,326,973)	$ (450,258)	$ (54,421,000)
Stock Buyback (in units)					(1,824)	(2,261)	(240)
Net Income (Loss)	$ 2,299,745	$ 1,754,375	$ 2,142,646	$ 342,418	$ 8,453,950	$ 3,723,273	$ (2,700,163)
Net unrealized (loss) gain on derivative instruments for interest rate swaps					(58,554)	294,931	0
Balance	$ (65,354,384)		$ (59,869,357)		$ (65,354,384)	$ (59,869,357)	$ (49,292,608)	$ (65,354,384)
Balance (in units)	117,431		119,255		117,431	119,255	121,516	117,431
Accumulated Comprehensive
Increase (Decrease) in Partners' Capital
Balance		$ 294,931			$ 294,931
Net unrealized (loss) gain on derivative instruments for interest rate swaps					(58,554)	$ 294,931
Balance	$ 236,377		$ 294,931		$ 236,377	$ 294,931		$ 236,377
Subtotal
Increase (Decrease) in Partners' Capital
Balance (in units)		180,225		180,225	180,225	180,225	180,225
Balance (in units)	180,225		180,225		180,225	180,225	180,225	180,225
Class A
Increase (Decrease) in Partners' Capital
Balance		$ (48,160,460)		$ (39,462,356)	$ (48,160,460)	$ (39,462,356)	$ (33,203,447)
Balance (in units)		144,180		144,180	144,180	144,180	144,180
Distribution to Partners					$ (7,963,910)	$ (7,414,385)	$ (3,738,512)
Stock Buyback					(3,141,917)	(4,262,338)	(360,266)
Net Income (Loss)					6,763,160	2,978,619	(2,160,131)
Balance	$ (52,503,128)		$ (48,160,460)		$ (52,503,128)	$ (48,160,460)	$ (39,462,356)	$ (52,503,128)
Balance (in units)	144,180		144,180		144,180	144,180	144,180	144,180
Class B
Increase (Decrease) in Partners' Capital
Balance		$ (11,403,636)		$ (9,338,738)	$ (11,403,636)	$ (9,338,738)	$ (7,852,318)
Balance (in units)		34,243		34,243	34,243	34,243	34,243
Distribution to Partners					$ (1,891,429)	$ (1,760,916)	$ (887,897)
Stock Buyback					$ (744,437)	(1,011,403)	(85,492)
Stock Buyback (in units)					(346.54)
Net Income (Loss)					$ 1,606,251	707,421	(513,031)
Balance	$ (12,433,251)		$ (11,403,636)		$ (12,433,251)	$ (11,403,636)	$ (9,338,738)	$ (12,433,251)
Balance (in units)	34,243		34,243		34,243	34,243	34,243	34,243
General Partnership
Increase (Decrease) in Partners' Capital
Balance		$ (600,192)		$ (491,513)	$ (600,192)	$ (491,513)	$ (413,280)
Balance (in units)		1,802		1,802	1,802	1,802	1,802
Distribution to Partners					$ (99,549)	$ (92,680)	$ (46,731)
Stock Buyback					$ (39,181)	(53,232)	(4,500)
Stock Buyback (in units)					(18.24)
Net Income (Loss)					$ 84,540	37,233	(27,002)
Balance	$ (654,383)		$ (600,192)		$ (654,383)	$ (600,192)	$ (491,513)	$ (654,383)
Balance (in units)	1,802		1,802		1,802	1,802	1,802	1,802
Treasury Units
Increase (Decrease) in Partners' Capital
Balance (in units)		60,970		58,709	60,970	58,709	58,469
Stock Buyback (in units)					(1,824)	(2,261)	(240)
Balance (in units)	62,794		60,970		62,794	60,970	58,709	62,794

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows from Operating Activities
Net Income	$ 8,453,950	$ 3,723,273	$ (2,700,163)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	16,773,045	16,373,429	16,671,076
Amortization of deferred finance costs	379,784	451,937	312,335
(Income) from investments in joint ventures	(876,233)	(499,783)	567,308
Allowance for doubtful accounts			831,576
Interest Accrued on Treasury Bills	(571,122)	(573,483)
Property Impairment	971,109
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures	139,000	125,000	55,250
(Increase) Decrease in rents receivable	(297,947)	279,489	(354,806)
(Decrease) in accounts payable and accrued expense	(1,551,636)	2,946,849	436,641
(Increase) in real estate tax escrow	(286,023)	(1,081,983)	(326,756)
(Increase) in prepaid expenses and other assets	83,670	(868,084)	(612,666)
Increase in advance rental payments and security deposits	964,307	663,083	903,363
Total Adjustments	15,727,954	17,816,454	18,483,321
Net cash provided by operating activities	24,181,904	21,539,727	15,783,158
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures	3,602,000	1,240,000	1,066,109
Investment in U.S. Treasury bills	(176,450,397)	(177,852,043)
Proceeds from U.S. Treasury bills	181,226,384	89,519,910
Purchase of rental property	(38,032,293)
Improvement of rental properties	(9,288,744)	(5,981,125)	(3,317,446)
(Investment) in unconsolidated joint ventures			(81,109)
Net cash (used in) investing activities	(38,943,050)	(93,073,258)	(2,332,446)
Cash Flows from Financing Activities
Principal payments of mortgage notes payable	(2,685,691)	(2,283,733)	(2,294,389)
Proceeds from Mortgage Notes Payable		41,889,433	88,582,856
Stock buyback	(3,925,535)	(5,326,973)	(450,258)
Distributions to partners	(9,954,888)	(9,267,981)	(4,673,140)
Payment of financing costs	(3,000)		(179,245)
Proceeds (payments) of line of credit net			(17,000,000)
Net cash provided by (used in) financing activities	(16,569,114)	25,010,746	63,985,824
Net Increase in Cash and Cash Equivalents	(31,330,260)	(46,522,785)	77,436,536
Cash and Cash Equivalents, at beginning of period	49,560,723	96,083,508	18,646,972
Cash and Cash Equivalents, at end of period	$ 18,230,463	$ 49,560,723	$ 96,083,508

XML

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 31 properties which include 22 residential buildings and properties; 5 mixed use residential, retail and office properties; 4 commercial properties, and individual units at one condominium complex. These properties total 2,943 apartment units, 19 condominium units and approximately 130,000 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: Investments 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 investment 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 certain 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 analysis 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. Contingent rent for commercial properties are 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 values for acquired properties are amortized 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.

Under this standard, 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 allocates 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 $380,000, $452,000 and $312,000 for the years ended December 31, 2023, 2022 and 2021 respectively.

Derivative Instruments: The Partnership measures derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them as an asset or liability, depending upon the Partnership’s rights or obligations under the applicable derivative contract. For derivatives designated and qualifying as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of the derivative are reported in other comprehensive income (“OCI”) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedging and ineffective portions of hedges are recognized in earnings in the affected period.

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.

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 a comprehensive loss of approximately $59,000 in 2023,and comprehensive income of approximately $295,000 in 2022, but had no comprehensive income or loss for 2021.

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 (loss) 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).

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, 2022, or 2021. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At December 31, 2023, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 4.07%. At December 31, 2023 and 2022, respectively approximately $18,711,000 and $49,641,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was $359,309, $239,250 and $331,176 in 2023, 2022 and 2021, 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.

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.

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 years ended December 31, 2023, 2022 and 2021 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 refinancing qualify as extinguishment of debt.

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

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RENTAL PROPERTIES

12 Months Ended

Dec. 31, 2023

RENTAL PROPERTIES

RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of December 31, 2023, the Partnership and its Subsidiary Partnerships owned 2,943 residential apartment units in 27 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 December 31, 2023, the Partnership and Subsidiary Partnerships owned two commercial shopping center in Framingham, commercial buildings in Newton and Brookline and commercial space in 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 December 31, 2023 with a total of 688 units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

Rental properties consist of the following:

	December 31, 2023		December 31, 2022		Useful Life
Land, improvements and parking lots	$	99,162,143	$	87,405,897	15	-	40	years
Buildings and improvements		277,986,334		256,035,191	15	-	40	years
Kitchen cabinets		16,137,828		14,347,212	5	-	10	years
Carpets		13,127,838		12,047,573	5	-	10	years
Air conditioning		500,000		501,697	5	-	10	years
Laundry equipment		568,716		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		21,348,556		18,716,758	5	-	30	years
Motor vehicles		232,954		171,519			5	years
Fences		91,620		46,872	5	-	15	years
Furniture and fixtures		8,365,039		7,902,182	5	-	7	years
Total fixed assets		440,496,897		400,703,910
Less: Accumulated depreciation		(170,691,951)		(159,627,479)
	$	269,804,946	$	241,076,431

							Cost
			Initial Cost to				Capitalized		Gross Amount at Which								Years
Property Name	Encumbrances		Partnerships(1)				Subsequent to		Carried at Close of Period								Built/	Depreciable
Type	(First				Buildings		Acquisition(2)				Buildings				Accumulated		Redecorated	Lives
Location	Mortgages)		Land		Improvements		Improvements		Land		Improvements		Totals		Depreciation		Date Acquired	Years
Boylston Downtown L.P. Residential Apartments Boston, Massachusetts	$	34,092,579	$	2,112,000	$	8,593,109	$	10,184,183	$	2,268,528	$	18,777,292	$	21,045,820	$	15,996,297	July 1995	(3)
Brookside Associates LLC Residential Apartments Woburn, Massachusetts	$	6,175,000	$	684,000	$	3,116,000	$	542,225	$	684,000	$	3,658,225	$	4,342,225	$	2,951,648	Oct. 2000	(3)
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire	$	11,214,000	$	177,610	$	1,478,359	$	1,641,894	$	177,610	$	3,120,253	$	3,297,863	$	2,490,061	Sept. 1977	(3)
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts	$	5,440,000	$	342,000	$	1,367,669	$	1,051,069	$	342,000	$	2,418,738	$	2,760,738	$	2,104,872	July 1995	(3)
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts	$	32,325,000	$	1,410,000	$	5,664,816	$	6,629,860	$	1,410,000	$	12,294,676	$	13,704,676	$	8,163,969	July 1995	(3)
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts	$	8,190,000	$	91,400	$	740,360	$	1,578,382	$	91,400	$	2,318,742	$	2,410,142	$	1,650,112	Sept. 1977	(3)
Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts	$	3,766,660	$	1,341,737	$	8,457,497	$	144,819	$	1,341,737	$	8,602,316	$	9,944,053	$	4,361,558	Jun. 2011	(3)
Hamilton Cypress LLC Commercial 1031 Exchange Brookline, Massachusetts	$	—	$	2,362,596	$	4,613,985	$	38,233	$	2,362,596	$	4,652,218	$	7,014,814	$	1,990,947	Oct. 2008	(3)
Hamilton Green Apartments, LLC Residential Apartments Andover, Massachusetts	$	32,190,519	$	16,054,336	$	44,794,438	$	(8,068,975)	$	16,054,336	$	36,725,463	$	52,779,799	$	16,828,423	Jul. 2013	(3)
Hamilton Highlands, LLC Residential Apartments Needham,Massachsetts	$	19,437,587	$	6,815,522	$	27,262,087	$	(2,215,754)		6,815,522	$	25,046,333	$	31,861,855		6,292,999	Mar. 2018	(3)
Hamilton Linewt LLC Commercial 1031 Exchange Newton,Massachusetts	$	—	$	884,042	$	2,652,127	$	134,615	$	884,042	$	2,786,742	$	3,670,784	$	1,132,827	Nov. 2007	(3)
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts	$	26,666,000	$	2,175,000	$	12,325,000	$	6,595,768	$	2,175,000	$	18,920,768	$	21,095,768	$	13,931,561	Dec. 1999	(3)
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts	$	3,960,000	$	156,000	$	634,085	$	423,539	$	156,000	$	1,057,624	$	1,213,624	$	860,541	Dec. 1996	(3)
Linhart L.P. Residential / Commercial Newton,Massachusetts	$	—	$	385,000	$	1,540,000	$	2,057,202	$	385,000	$	3,597,202	$	3,982,202	$	2,897,449	Jan. 1995	(3)
Mill Street Gardens, LLC Residential Apartments Woburn, Massachusetts	$	31,000,000	$	9,798,478	$	43,568,912	$	2,981,885		9,798,478	$	46,550,797	$	56,349,275		11,673,659	Dec. 2019	(3)
Mill Street Development,Woburn, Massachusetts	$	—	$	1,375,000	$	1,125,000	$	(599,087)		1,375,000	$	525,913	$	1,900,913		—	Dec. 2019	(3)
NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts	$	10,322,000	$	1,512,000	$	5,701,480	$	1,595,198	$	1,512,000	$	7,296,678	$	8,808,678	$	5,390,982	Jun. 2002	(3)
North Beacon 140 L.P. Residential Apartments Boston, Massachusetts	$	12,683,000	$	936,000	$	3,762,013	$	2,379,219	$	936,000	$	6,141,232	$	7,077,232	$	5,653,863	July 1995	(3)
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts	$	9,608,000	$	46,181	$	878,323	$	1,289,156	$	46,181	$	2,167,479	$	2,213,660	$	1,548,529	Sept. 1977	(3)
Redwood Hills L.P. Residential Apartments Worcester,Massachusetts	$	17,105,000	$	1,200,000	$	4,810,604	$	5,821,846	$	1,200,000	$	10,632,450	$	11,832,450	$	8,159,479	July 1995	(3)
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts	$	20,750,000	$	6,247,153	$	24,954,777	$	(74,870)	$	6,247,153	$	24,879,907	$	31,127,060	$	8,148,830	Sept. 2015	(3)
River Drive L.P Residential Apartments Danvers, Massachusetts	$	9,543,000	$	72,525	$	587,777	$	1,693,812	$	72,525	$	2,281,589	$	2,354,114	$	1,195,277	Sept. 1977	(3)
Riverside Apartments Condominium Units Watertown Massachustts	$	—	$	23,346	$	190,807	$	151,971	$	23,346	$	342,778	$	366,124	$	299,913	Sept. 1977	(3)
School St Assoc LLC Residential Apartments Framingham, Massachusetts	$	26,993,000	$	4,686,728	$	18,746,911	$	457,122	$	4,686,728	$	19,204,033	$	23,890,761	$	13,393,356	Apr. 2003	(3)
WRF Associates LLC Strip Mall Framingham, Massachusetts	$	5,954,546	$	3,280,000	$	4,920,000	$	490,262	$	3,280,000	$	5,410,262	$	8,690,262	$	4,101,814	May 1999	(3)
WCB Associates LLC Residential Apartments Brockton, Massachusetts	$	19,266,000	$	1,335,000	$	7,565,501	$	3,250,982	$	1,335,000	$	10,816,483	$	12,151,483	$	8,461,934	Dec. 1999	(3)
Westgate Apartments Burlington LLC Residential Apartments Burlington, Massachusetts	$	4,494,000	$	44,965	$	4,478,687	$	322,345	$	44,965	$	4,801,032	$	4,845,997	$	3,402,530	Sept. 2004	(3)
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts	$	38,475,000	$	461,300	$	2,424,636	$	6,702,223	$	461,300	$	9,126,859	$	9,588,159	$	6,280,115	Sept. 1977	(3)
Woodland Park Apartments LLC Residential Apartments Newton Massachusetts	$	21,788,650	$	9,114,334	$	35,874,994	$	(1,161,715)	$	9,114,334	$	34,713,279	$	43,827,613	$	10,321,309	July 2017	(3)
653 Worcester Rd Commercial Framingham, Massachusetts	$	—		3,415,051		4,496,849		1,187,232		3,415,051		5,684,081		9,099,132		429,322	Jan.2023	(3)
Shawmut Place LLC, Residential Apartments Boston, Massachusetts	$	—		7,297,401		12,249,725		7,702,495		7,297,401		19,952,220		27,249,621		577,775	July.2023	(3)
	$	411,439,541	$	85,836,705	$	299,576,528	$	54,927,136	$	85,993,233	$	354,503,664	$	440,496,897	$	170,691,951

(1) The initial cost to the Partnerships represents both the balance of mortgages assumed in September 1977, including subsequent adjustments to such amounts, and subsequent acquisitions at cost.

(2) Net of retirements.

(3) In 2023, rental properties were depreciated over the following estimated useful lives.

:

Assets	Life
Buildings and Improvements	10	-	40	years
Other Categories of Assets	5	-	15	years

A reconciliation of rental properties and accumulated depreciation is as follows:

	December 31,
	2023		2022		2021
Rental Properties
Balance, Beginning	$	400,703,910	$	400,588,242	$	398,629,793
Additions:
Buildings, improvements and other assets		45,499,213		5,981,125		3,317,445
		446,203,123		406,569,367		401,947,238
Deduct:
Write-offs of retired or disposed assets		4,580,382		5,865,457		1,358,996
Impairments		1,125,844		—		—
Balance, Ending	$	440,496,897	$	400,703,910	$	400,588,242
Accumulated Depreciation
Balance, Beginning	$	159,627,479	$	149,233,040	$	134,019,906
Add:
Depreciation for the year		15,799,589		16,259,896		16,572,131
		175,427,068		165,492,936		150,592,037
Deduct
Accumulated depreciation of retired or disposed assets		4,580,382		5,865,457		1,358,997
Impairments		154,735		—		—
Balance, Ending	$	170,691,951	$	159,627,479	$	149,233,040

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%, payable on a monthly basis through July 31, 2032. 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, which was included in Other Loss in the Consolidated Statements of Income. The remaining balance of approximately $89,000,000 will be used for general

partnership purposes. See schedule in Note 5, Mortgage Notes Payable, for the details of the transaction as it relates to the specific properties.

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%.

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 for in- place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use 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, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

In December, 2023, the Partnership received approval from MassHousing to construct a 72 unit apartment building in accordance with Chapter 40B to include 17 affordable units on the Mill Street Development site. In order to initiate construction, the Partnership expects to demolish the current building structures and start construction in 2024. No tenants are now occupying the property and with the resulting loss of future cash, Management has recorded an impairment charge of approximately $971,000, the net book value of the building for the Mill Street Development property. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by an entity that is owned by the majority shareholder of 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 $2,948,000, $2,717,000 and $2,524,000 in 2023, 2022 and 2021, respectively.

The Partnership Agreement permits the General Partner or the Hamilton Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. In 2023, 2022 and 2021, approximately $1,289,000, $747,000 and $1,086,000, was charged to NERA for legal, accounting, construction, maintenance, rental and architectural services supervision of capital improvements and brokerage commissions. Of the 2023 expenses referred to above, approximately $261,000 consisted of repairs and maintenance, $356,000 of administrative expense and approximately $66,000 for renting expenses. Approximately $606,000 of expenses for construction, architectural

services and supervision of capital projects were capitalized in rental properties. Additionally in 2023, the Hamilton Company received approximately $797,000 from the Investment Properties of which approximately $699,000 was the management fee, approximately $9,000 was for construction, architectural services and supervision of capital projects, approximately $57,000 was for maintenance services, approximately $31,000 was for administrative services, and approximately $1,000 for renting expenses The management fee is equal to 4% of gross receipts rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the Hamilton Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $4,180,000, $3,875,000 and $3,640,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The Hamilton 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. In 2023, 2022, and 2021, the Partnership recognized approximately $64,000, $85,000 and $45,000 respectively for the employer’s match contribution to the plan. See Note 16.

Bookkeeping and accounting functions are provided by the Hamilton Company’s accounting staff, which consists of approximately 14 people. During the years ended December 31, 2023, 2022 and 2021 the Hamilton Company charged the Partnership $125,000 per year for bookkeeping and accounting services included in administrative expenses above.

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, as of December 31, 2023, are various related entities of the Brown family, and five current and previous employees of the Hamilton Company. The Brown Family related entities’ ownership interest is between 47.6% and 59%. See Note 14 for a description of the properties and their operations.

The Advisory Committee held 4 meetings during 2023, and a total of $16,000 was paid for attendance and participation in such meetings. Additionally, the Audit Committee held 4 meetings in 2023 and a total of $80,000 was paid for attendance and participation in such meetings.

Sally Michael is a Director of NewReal,Inc., and she is a partner at Saul Ewing LLP. Saul Ewing billed the Partnership for legal fees totaling $91,000, $84,000,and $168,000 for 2023, 2022, and 2021, respectively.

See Note 8 for information regarding the repurchase of Class B and General Partnership Units.

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PREPAID EXPENSES and OTHER ASSETS

12 Months Ended

Dec. 31, 2023

PREPAID EXPENSES and OTHER ASSETS

PREPAID EXPENSES and OTHER ASSETS

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $3,601,000 and $3,406,000 of security deposits are included in prepaid expenses and other assets at December 31, 2023 and 2022, respectively. The security deposits and escrow accounts are restricted cash.

Included in prepaid expenses and other assets at December 31, 2023 and 2022, respectively, is approximately $1,784,000 and $1,979,000, held in escrow to fund future capital improvements.

Intangible assets on the acquisition of rental properties are included in prepaid expenses and other assets. Intangible assets are approximately $1,549,000 net of accumulated amortization of approximately $872,000 at December 31, 2023.

Financing fees in association with the refinancing and the line of credit of approximately $52,000 and $109,000 are net of accumulated amortization of approximately $130,000, and $70,000 at December 31, 2023 and 2022 respectively.

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MORTGAGE NOTES PAYABLE

12 Months Ended

Dec. 31, 2023

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE

NOTE 5. MORTGAGE NOTES PAYABLE

Mortgages Payable

At December 31, 2023 and 2022, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At December 31, 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 December 31, 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 $2,779,000 and $3,159,000 are net of accumulated amortization of approximately $1,353,000 and $973,000 at December 31, 2023 and 2022, respectively, which offset the Mortgage Notes Payable.

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

Approximate annual maturities at December 31, 2023 are as follows:

2024—current maturities	$	2,853,000
2025		3,602,000
2026		25,112,000
2027		23,271,000
2028		31,875,000
Thereafter		324,726,000
		411,439,000
Less: unamortized deferred financing costs		2,779,000
	$	408,660,000

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.

The breakout by property of the material balances by year are as follows:

		PREVIOUS		CURRENT		DEFERRED
		MORTGAGE		MORTGAGE		FINANCE		PREPAYMENT
PROPERTY NAME		BALANCE		BALANCE		COSTS		PENALTY
Clovelly Apts LP	$	4,160,000	$	11,214,000	$	121,817	$	167,141
Comm 1137 LP		3,750,000		5,440,000		60,504		151,314
Comm 1144 LP		14,780,000		32,325,000		340,007		592,728
Executive Apts LP		2,415,000		8,190,000		89,333		96,434
N.Beacon 140 LP		6,937,000		12,683,000		135,813		277,003
Olde English Apt LP		3,080,000		9,608,000		104,345		123,956
Redwood Hills LP		6,743,000		17,105,000		188,406		271,204
River Dr. LP		3,465,000		9,543,000		104,605		139,218
Highland St. Apts LP		1,050,000		3,960,000		45,076		41,928
WCB Assoc. LLC		7,000,000		19,266,000		204,586		408,873
Hamilton Oaks Assoc. LP		11,925,000		26,666,000		281,596		476,180
	$	65,305,000	$	156,000,000	$	1,676,088	$	2,745,979
		PREVIOUS		CURRENT		DEFERRED
		MORTGAGE		MORTGAGE		FINANCE		PREPAYMENT
PROPERTY NAME		BALANCE		BALANCE		COSTS		PENALTY
Dean Street	$	5,687,000	$	10,322,000	$	109,841	$	160,943
School Street		13,178,000		26,993,000		287,159		171,676
Westgate Apartments		15,700,000		38,475,000		409,299		401,714
Courtyard at Westgate		2,500,000		4,494,000		47,831		100,211
	$	37,065,000	$	80,284,000	$	854,130	$	834,544

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 covered the current period and phased out on 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. The portfolio’s debt yield fell below the minimum of 9.5% to 8.6%. Consequently, as of December 31, 2023, the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted to draw down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a Lender for a replacement line of credit. See Note 19, SUBSEQUENT EVENTS, for additional information.

The interest rate for the new term was LIBOR plus 300 basis points. The costs associated with the modification and renewal of the line of credit was approximately $179,000. On December 3, 2021, the Partnership paid off the outstanding balance of $17,000,000 on the Line of Credit.

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

12 Months Ended

Dec. 31, 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 December 31, 2023 and 2022 respectively, amounts received for prepaid rents of approximately $3,078,000 and $2,618,000 are included in cash and cash equivalents, and security deposits of approximately $3,601,000 and $3,406,000 are included in prepaid expenses and other assets and are restricted cash.

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PARTNERS' CAPITAL

12 Months Ended

Dec. 31, 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 total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

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.

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 31, 2024. In addition to the quarterly distribution, there will be a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024.

In 2023 the Partnership paid a total distribution of an aggregate $84.00 per Unit ($2.80 per Receipt) for a total payment of $9,954,888. In 2022 the Partnership paid a total distribution 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:

	Year Ended
	December 31,
	2023		2022
Net Income per Depositary Receipt	$	2.38	$	1.03
Distributions per Depositary Receipt	$	2.80	$	2.56

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TREASURY UNITS

12 Months Ended

Dec. 31, 2023

TREASURY UNITS

TREASURY UNITS

NOTE 8. TREASURY UNITS

Treasury Units at December 31, 2023 are as follows:

Class A	50,235
Class B	11,931
General Partnership	628
	62,794

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 December 31, 2023, the Partnership has repurchased 1,532,234 Depositary Receipts at an average price of $31.72 per receipt (or $951.52 per underlying Class A Unit), 4,394 Class B Units and 231 General Partnership Units, both at an average price of $ 1,259.00 per Unit, totaling approximately $54,421,000 including brokerage fees paid by the Partnership.

During the year ended December 31, 2023, the Partnership purchased a total of 43,774 Depositary Receipts.

The average price was $71.71 per receipt or $2,151.25 per unit. The cost including commission was $3,141,917. The Partnership was required to repurchase 346.54 Class B Units and 18.24 General Partnership units at a cost of $744,437 and $39,181 respectively.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 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

12 Months Ended

Dec. 31, 2023

RENTAL INCOME.

RENTAL INCOME

NOTE 10. RENTAL INCOME

During the year ended December 31, 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 December 31, 2023 as follows:

	Commercial
	Property Leases
2024	$	3,099,064
2025		2,798,161
2026		2,551,671
2027		2,230,705
2028		2,014,354
Thereafter		10,105,126
	$	22,799,081

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 $683,000, $541,000 and $563,000 for the years ended December 31, 2023, 2022 and 2021 respectively. Trader Joe’s and Walgreen’s, tenants at Staples Plaza and 653 Worcester Road, Framingham, MA. respectively, are approximately 22% 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 December 31,	expiring leases		for expiring leases	leases expiring	expiring leases
2024	$	416,581	29,166	29	12	%
2025		253,320	7,455	7	7	%
2026		361,731	14,221	8	10	%
2027		309,189	8,884	5	9	%
2028		251,316	6,929	2	7	%
2029		433,890	15,138	3	12	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—
Thereafter		1,428,261	46,987	4	40	%
Totals	$	3,564,888	129,886	59	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $1,195,000 and $1,007,000 at December 31, 2023 and 2022. Included in rents receivable at December 31, 2023 is approximately $417,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis.

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CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2023

CASH FLOW INFORMATION

CASH FLOW INFORMATION

NOTE 11. CASH FLOW INFORMATION

During the years ended December 31, 2023, 2022 and 2021, cash paid for interest was approximately $15,356,000, $14,425,000 and $13,298,000 respectively. Cash paid for state income taxes was approximately $66,000, $65,000 and $117,000 during the years ended December 31, 2023, 2022 and 2021 respectively. In 2022, 5 properties were involved in a non-cash financing activity of approximately $43,000,000 In 2021, 11 properties were involved in a non-cash financing activity of approximately $65,000,000.

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At December 31, 2023 and 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 December 31, 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 considers all highly liquid investments purchased with original maturities of three months or less at the time of purchase to be cash equivalents. Cash, cash equivalents, and restricted cash include cash held in checking, U.S. Treasury Bills, and money market accounts.

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 are classified within Level I of the fair value hierarchy.

At December 31, 2023 and 2022, we estimated the fair value of our mortgages payable 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 December 31, 2023 and 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 December 31, 2023 and 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, treasury bills, 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 mortgages and 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 cash equivalents, Treasury bills, and debt.

	Dec 31, 2023		Dec 31, 2022
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	18,230,463	18,230,463	49,560,723	49,560,723
Treasury bills	84,700,751	84,799,638	88,905,616	88,908,540
Total Assets	102,931,214	103,030,101	138,466,339	138,469,263
Liabilities
Mortgage payable *
- Partnership properties	408,660,292	359,092,343	410,966,199	355,629,060
- Investment properties	165,969,481	156,280,958	166,090,968	153,710,522
Total Liabilities	574,629,773	515,373,301	577,057,167	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 December 31, 2023 and 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 December 31, 2023 and current estimates of fair value may differ significantly from the amounts presented herein.

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DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 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 $111,000 will be reclassified as a decrease to interest expense.

As of December 31, 2023, the Partnership had one interest rate swap outstanding with a notional amount of approximately $236,000 designated as cash flow hedges of interest rate risk. As of December 31, 2023, the Partnership did not have any interest rate derivatives in a net liability position.

The table below presents the fair value of the Partnership’s derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2023 and 2022.

	Fair Value
Asset Derivatives designated	December 31,		December 31,
as hedging instruments	2023		2022		Balance sheet location
Interest rate swaps	$	236,377	$	294,931	Prepaid Expenses and Other Assets

The table below presents the effect the Partnership’s derivative financial instruments on the consolidated statements of income for the years ended December 31, 2023 and 2022

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative						Location of Gain or (Loss) Reclassified from Accumulated OCI Into	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income						Location of Gain or (Loss) Recognized in Income on	Total Amount of Interest Expense presented in the consolidated statements of operations
Year Ended December 31,	2023		2022		2021		Income	2023		2022		2021		Derivative	2023		2022		2021
Interest rate swaps	$	(58,554)	$	294,931	$	—	Interest expense	$	—	$	—	$	—	Interest and other investment income (loss)	$	(15,723,733)	$	(15,045,477)	$	(13,629,463)

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TAXABLE INCOME AND TAX BASIS

12 Months Ended

Dec. 31, 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 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 $9,989,000 was approximately $1,535,000 more than statement

income for the year ended December 31, 2023. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2023 is approximately $8,000,000 less than the statement basis. The primary reasons for the difference in tax basis are accelerated depreciation, bonus depreciation and other timing differences. The Partnership’s Federal tax basis in its joint venture investments is approximately $6,000,000 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 consolidates financial statements.

The following reconciles GAAP net income to taxable income:

	For the year ended
	December 31,
	2023		2022		2021
	(in thousands)
Financial statement (“book”) net income (loss)	$	8,454	$	3,723	$	(2,700)
Book/Tax differences from depreciation		(2,300)		4,160		5,673
Book/Tax differences from Investment Properties		351		1,258		(87)
Increase in prepaid rent and allowances		732		554		(46)
Other items		2,752		1,273		1,216
Taxable income	$	9,989	$	10,968	$	4,056

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 adjustments 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 December 31, 2023, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2020 forward.

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

12 Months Ended

Dec. 31, 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 Hamilton Company. The Brown Family related entities 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, 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 it matured 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 December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $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 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286. The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC. 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 December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $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 Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. 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. All residential units have been 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. In October 2004, the Joint Venture obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Joint Venture obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. 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. At December 31, 2023, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000. 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. 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 Apartments, LLC is known as Hamilton Place. In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance was due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. 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. At December 31, 2023, the balance of the mortgage before unamortized deferred financing costs is approximately $16,900,000. 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. The investment is referred to as Hamilton On Main Apartments, LLC.

On August 23, 2023, Hamilton on Main Apartments, LLC (the “Borrower”), a 50% owned joint venture of the Partnership, received notice from KeyBank, as servicer for the lender of a $16,900,000 loan, indicating that the Borrower failed to comply with certain terms of the loan documents pertaining to the transfer of interests in the Borrower that occurred on the occasion of Harold Brown’s death, and that such transfer constitutes an event of default under the loan documents. While the Borrower has disputed that any events of default actually exist, it is working diligently with KeyBank to obtain KeyBank’s consent to the transfer. On March 8, 2024, the Borrower received notice from KeyBank that it was providing ex-post facto consent to the transfer of interest subject to certain conditions being met by the Borrower. The Partnership’s share of costs associated with the transfer of interests in the Borrower is approximately $107,000.

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 December 31, 2023, the balance of this mortgage before unamortized deferred financing costs is approximately $8,483,000. This investment is referred to as 345 Franklin, LLC.

INVESTMTENT IN UNCONSILIDATED JOINT VENTURES

Summary financial information as of December 31, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,403,706		$	2,583,190		$	4,481,606		$	75,027		$	4,190,275		$	12,493,492		$	73,179,575		$	102,406,871
Cash & Cash Equivalents		1,141,751			108,348			155,557			16,339			148,334			1,204,116			1,904,290			4,678,735
Rent Receivable		208,968			78,753			117			4,120			2,957			22,319			115,904			433,138
Real Estate Tax Escrow		75,475			—			29,290			—			34,998			136,711			—			276,474
Prepaid Expenses & Other Assets		320,627			44,182			73,604			505			50,327			227,421			2,494,734			3,211,400
Total Assets	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,975,869		$	—		$	8,452,812		$	—		$	5,936,919		$	16,889,299		$	124,714,582		$	165,969,481
Accounts Payable & Accrued Expense		141,743			3,000			64,335			3,486			50,990			352,780			742,749			1,359,083
Advance Rental Pmts & Security Deposits		337,593			20,660			304,499			735			173,222			500,103			3,033,534			4,370,346
Total Liabilities		10,455,205			23,660			8,821,646			4,221			6,161,131			17,742,182			128,490,865			171,698,910
Partners’ Capital		(3,304,678)			2,790,813			(4,081,472)			91,770			(1,734,240)			(3,658,123)			(50,796,362)			(60,692,292)
Total Liabilities and Capital	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,395,406		$	—		$	45,885		$	—		$	—		$	—			1,441,291
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,652,340)		$	—		$	(2,040,737)		$	—		$	(867,121)		$	(1,829,063)		$	(20,318,546)			(26,707,807)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(25,266,517)
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 February 1, 2024		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Summary financial information for the year ended December 31, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,831,196	$	241,884	$	1,709,429	$	98,734	$	1,334,398	$	3,879,734	$	16,461,345	$	25,556,720
Laundry and Sundry Income		3,691		—		115		—		(148)		23,163		137,498		164,319
		1,834,887		241,884		1,709,544		98,734		1,334,250		3,902,897		16,598,843		25,721,039
Expenses
Administrative		20,455		3,020		30,349		3,300		20,021		92,589		262,394		432,128
Depreciation and Amortization		470,253		11,709		346,856		3,264		339,605		1,065,353		3,685,524		5,922,564
Management Fees		72,806		10,489		67,116		4,011		53,347		152,943		338,355		699,067
Operating		284,173		—		89,139		807		105,254		455,086		1,279,434		2,213,893
Renting		61,559		—		52,686		13		5,801		54,856		107,250		282,165
Repairs and Maintenance		178,816		—		150,845		—		94,262		625,687		1,902,110		2,951,720
Taxes and Insurance		281,346		61,557		193,215		17,165		147,197		527,665		2,630,668		3,858,813
		1,369,408		86,775		930,206		28,560		765,487		2,974,179		10,205,735		16,360,350
Income Before Other Income		465,479		155,109		779,338		70,174		568,763		928,718		6,393,108		9,360,689
Other Income (Loss)
Interest Expense		(752,933)		—		(344,847)		—		(237,749)		(788,376)		(5,026,076)		(7,149,981)
Other(Expense)		—		—		—		—		—		(213,240)		—		(213,240)
Interest income		6,830		375		1,593		161		2,592		7,376		11,861		30,788
		(746,103)		375		(343,254)		161		(235,157)		(994,240)		(5,014,215)		(7,332,433)
Net (Loss) Income	$	(280,624)	$	155,484	$	436,084	$	70,335	$	333,606	$	(65,522)	$	1,378,893	$	2,028,256
Net (Loss) Income —NERA 50%	$	(140,312)	$	77,741	$	218,041	$	35,167	$	166,802	$	(32,762)				324,677
Net Income —NERA 40%													$	551,556		551,556
															$	876,233

Future annual mortgage maturities at December 31, 2023 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
12/31/2024	$	—	$	239,883	$	—	$	16,900,000	$	—	$	17,139,883
12/31/2025		10,000,000		249,333		—		—		—		10,249,333
12/31/2026		—		259,155		—		—		—		259,155
12/31/2027		—		269,365		—		—		—		269,365
12/31/2028		—		7,465,039		—		—		125,000,000		132,465,039
Thereafter		—		—		6,000,000		—		—		6,000,000
		10,000,000		8,482,775		6,000,000		16,900,000		125,000,000		166,382,775
Less: unamortized deferred financing costs		(24,131)		(29,963)		(63,081)		(10,701)		(285,418)		(413,294)
	$	9,975,869	$	8,452,812	$	5,936,919	$	16,889,299	$	124,714,582	$	165,969,481

At December 31, 2023 the weighted average interest rate on the above mortgages was 4.23%. The effective rate was 4.29% including the amortization expense of deferred financing costs.

Summary financial information as of December 31, 2022

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,829,640		$	2,585,680		$	4,810,934		$	78,291		$	4,467,772		$	13,456,133		$	75,907,107		$	107,135,557
Cash & Cash Equivalents		985,849			110,907			358,016			29,065			328,742			1,377,250			3,866,113			7,055,942
Rent Receivable		202,221			78,436			—			4,915			2,600			9,565			106,165			403,902
Real Estate Tax Escrow		74,423			—			27,771			—			34,842			130,911			—			267,947
Prepaid Expenses & Other Assets		321,912			53,316			111,018			493			26,238			186,990			2,288,330			2,988,297
Total Assets	$	7,414,045		$	2,828,339		$	5,307,739		$	112,764		$	4,860,194		$	15,160,849		$	82,167,715		$	117,851,645
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,962,080		$	—		$	8,676,945		$	—		$	5,928,736		$	16,873,248		$	124,649,959		$	166,090,968
Accounts Payable & Accrued Expense		165,576			43,000			84,025			23,329			162,623			556,239			2,012,851			3,047,643
Advance Rental Pmts& Security Deposits		310,443			—			269,326			—			171,680			463,963			2,950,161			4,165,573
Total Liabilities		10,438,099			43,000			9,030,296			23,329			6,263,039			17,893,450			129,612,971			173,304,184
Partners’ Capital		(3,024,054)			2,785,339			(3,722,557)			89,435			(1,402,845)			(2,732,601)			(47,445,256)			(55,452,539)
Total Liabilities and Capital	$	7,414,045		$	2,828,339		$	5,307,739		$	112,764			4,860,194		$	15,160,849		$	82,167,715		$	117,851,645
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,392,669		$	—		$	44,718		$			$			$			$	1,437,387
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,512,027)		$	—		$	(1,861,278)		$	—		$	(701,422)		$	(1,366,300)		$	(18,978,102)			(24,419,129)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(22,981,742)
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 February 1, 2023		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Summary financial information for the year ended December 31, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,640,480	$	296,313	$	1,516,329	$	102,802	$	1,212,854	$	3,644,802	$	15,136,724	$	23,550,304
Laundry and Sundry Income		17,652		—		245		—				77,589		135,607		231,093
		1,658,132		296,313		1,516,574		102,802		1,212,854		3,722,391		15,272,331		23,781,397
Expenses
Administrative		19,543		6,548		33,656		2,793		14,579		68,948		218,772		364,839
Depreciation and Amortization		478,538		11,709		346,793		3,264		338,919		1,081,096		3,768,367		6,028,686
Management Fees		75,216		11,468		59,715		4,160		48,548		146,115		316,813		662,035
Operating		229,528		—		76,108		1,344		129,232		400,489		1,167,733		2,004,434
Renting		25,926		—		32,332		—		9,873		51,327		91,041		210,499
Repairs and Maintenance		185,275		3,180		184,057		—		106,689		626,909		1,694,941		2,801,051
Taxes and Insurance		266,024		63,139		182,098		18,513		153,117		513,699		2,503,801		3,700,391
		1,280,050		96,044		914,759		30,074		800,957		2,888,583		9,761,468		15,771,935
Income Before Other Income		378,082		200,269		601,815		72,728		411,897		833,808		5,510,863		8,009,462
Other Income (Loss)
Interest Expense		(412,329)		—		(351,175)		—		(237,851)		(759,704)		(5,081,626)		(6,842,685)
Other Expenses				—		—		—		—		(81,360)				(81,360)
		(412,329)		—		(351,175)		—		(237,851)		(841,064)		(5,081,626)		(6,924,045)
Net Income (Loss)	$	(34,247)	$	200,269	$	250,640	$	72,729	$	174,046	$	(7,256)	$	429,237	$	1,085,417
Net Income (Loss)—NERA 50%	$	(17,124)	$	100,134	$	125,319	$	36,365	$	87,023	$	(3,629)				328,088
Net Income —NERA 40%													$	171,695		171,695
															$	499,783

Summary financial information for the year ended December 31, 2021

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,263,331		$	2,588,169		$	5,062,602		$	81,555		$	4,697,616		$	14,334,539		$	78,755,698		$	111,783,510
Cash & Cash Equivalents		333,699			98,674			155,627			11,845			156,058			565,171			2,070,558			3,391,632
Rent Receivable		232,521			68,828			9,905			6,111			6,999			37,750			175,213			537,327
Real Estate Tax Escrow		76,651			—			29,999			—			36,451			109,588			—			252,689
Prepaid Expenses & Other Assets		301,043			62,399			117,197			446			24,009			181,941			2,102,717			2,789,752
Total Assets	$	7,207,245		$	2,818,070		$	5,375,330		$	99,957		$	4,921,133		$	15,228,989		$	83,104,186		$	118,754,910
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,948,291		$	—		$	8,892,331		$	—		$	5,920,552		$	16,857,197		$	124,585,336		$	166,203,707
Accounts Payable & Accrued Expense		68,265			3,000			52,392			3,251			48,145			188,012			670,624			1,033,689
Advance Rental Pmts& Security Deposits		180,497			—			228,803			—			159,324			434,126			2,522,719			3,525,469
Total Liabilities		10,197,053			3,000			9,173,526			3,251			6,128,021			17,479,335			127,778,679			170,762,865
Partners’ Capital		(2,989,808)			2,815,070			(3,798,196)			96,706			(1,206,888)			(2,250,346)			(44,674,493)			(52,007,955)
Total Liabilities and Capital	$	7,207,245		$	2,818,070		$	5,375,330		$	99,957		$	4,921,133		$	15,228,989		$	83,104,186		$	118,754,910
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$			$	1,407,535		$	—		$	48,353		$			$			$				1,455,888
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,494,905)		$	—		$	(1,899,098)		$	—		$	(603,445)		$	(1,125,174)		$	(17,869,797)			(22,992,420)
																						$	(21,536,532)
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 February 1, 2022		—			—			—			—			—			—			—			—
Unsold units		—			—			—			175			—			—			—			—
		—			—			—			—			—			—			—			—

Summary financial information for the year ended December 31, 2021

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,609,397	$	391,878	$	1,360,472	$	98,135	$	1,139,865	$	3,370,478	$	12,866,983	$	20,837,208
Laundry and Sundry Income		12,761		—		1,494		—		3,913		38,697		97,781		154,646
		1,622,158		391,878		1,361,966		98,135		1,143,778		3,409,175		12,964,764		20,991,854
Expenses
Administrative		76,338		2,875		31,566		2,812		16,450		68,008		205,460		403,509
Depreciation and Amortization		479,512		20,298		343,834		3,264		338,362		1,089,225		3,742,118		6,016,613
Management Fees		52,617		12,922		54,178		3,801		45,541		131,221		274,882		575,162
Operating		168,160		—		58,667		334		98,115		432,061		1,023,732		1,781,069
Renting		101,328		—		54,672		—		4,419		90,842		460,718		711,979
Repairs and Maintenance		159,593		520		129,548		—		120,626		624,475		1,814,342		2,849,104
Taxes and Insurance		261,145		60,764		175,183		19,467		144,533		451,937		2,426,021		3,539,050
		1,298,693		97,379		847,648		29,678		768,046		2,887,769		9,947,273		15,876,486
Income Before Other Income		323,465		294,499		514,318		68,457		375,732		521,406		3,017,491		5,115,368
Other Income (Loss)
Interest Expense		(246,339)		—		(359,036)		—		(237,845)		(759,698)		(5,055,677)		(6,658,595)
Interest Income		—		—		—		—		—		—		1,222		1,222
		(246,339)		—		(359,036)		—		(237,845)		(759,698)		(5,054,455)		(6,657,373)
Net Income (Loss)	$	77,126	$	294,499	$	155,282	$	68,458	$	137,887	$	(238,292)	$	(2,036,964)	$	(1,542,005)
Net Income (Loss)—NERA 50%	$	38,563	$	147,249	$	77,641	$	34,229	$	68,944	$	(119,147)				247,478
Net Income —NERA 40%													$	(814,786)		(814,786)
															$	(567,308)

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EMPLOYEE BENEFIT 401(k) PLANS

12 Months Ended

Dec. 31, 2023

EMPLOYEE BENEFIT 401(k) PLANS

EMPLOYEE BENEFIT 401(k) PLANS

NOTE 16. EMPLOYEE BENEFIT 401(k) PLANS

Effective January 1, 2019, employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Hamilton 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. Beginning January 1, 2019, the Partnership matched 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 year ended December 31, 2023, 2022 and 2021 was approximately $64,000, $85,000 and $45,000 respectively.

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IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

12 Months Ended

Dec. 31, 2023

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

NOTE 17. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In November 2023, the FASB issued ASU 2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The guidance requires incremental disclosures related to a public entity’s reportable segments. ASU 2023-07 is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The Partnership is currently evaluating the impact of adopting ASU 2023-07 will have on the Partnership's consolidated financial statements.

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QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2023

QUARTERLY FINANCIAL DATA (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 18. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Three Months Ended
	March 31, 2023		June 30, 2023		September 30, 2023		December 31, 2023		Total
Revenue	$	17,691,686	$	18,101,036	$	18,961,642	$	19,727,004	$	74,481,368
Expenses		13,240,321		13,362,686		14,062,381		15,001,133		55,666,521
Income Before Other Income		4,451,365		4,738,350		4,899,261		4,725,871		18,814,847
Other Expenses		(2,696,990)		(2,513,746)		(2,724,035)		(2,426,126)		(10,360,897)
Net Income	$	1,754,375	$	2,224,604	$	2,175,226	$	2,299,745	$	8,453,950
Net Income Per Unit	$	14.72	$	18.73	$	18.38	$	19.51	$	71.34
Net Income Per Depositary Receipt	$	0.49	$	0.62	$	0.61	$	0.65	$	2.38

	Three Months Ended
	March 31, 2022		June 30, 2022		September 30, 2022		December 31, 2022		Total
Revenue	$	16,580,409	$	16,931,928	$	17,078,383	$	17,703,006	$	68,293,726
Expenses		12,803,459		12,321,006		12,517,586		12,563,529		50,205,580
Income Before Other Income		3,776,950		4,610,922		4,560,797		5,139,477		18,088,146
Other Expenses		(3,434,532)		(4,367,937)		(3,565,573)		(2,996,831)		(14,364,873)
Net Income	$	342,418	$	242,985	$	995,224	$	2,142,646	$	3,723,273
Net Income Per Unit	$	2.82	$	2.02	$	8.32	$	17.83	$	30.99
Net Income Per Depositary Receipt	$	0.09	$	0.07	$	0.28	$	0.59	$	1.03

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SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 19—SUBSEQUENT EVENTS

From January 1, 2024 through March 14, 2024, the Partnership has purchased 2,753 Depository Receipts.

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 28, 2024. In addition to the quarterly distribution, there will be a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024.

The Partnership is currently in negotiations with a lender or a replacement line of credit.

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QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2023

QUALIFYING ACCOUNTS

QUALIFYING ACCOUNTS

NOTE 20—QUALIFYING ACCOUNTS

New England Realty Associates Limited Partnership

Valuation and Qualifying Accounts

		Additions
	Balance at	Charged to	Charged to		Balance
	Beginning	Costs and	other account	Deductions	at end
Description	of Period	Expenses	describe	Describe(a)	of Period
Year Ended December 31, 2023:
Deducted from asset accounts:
Allowance for doubtful accounts	1,007,025	1,462,371		1,274,685	1,194,711
Year Ended December 31, 2022:
Deducted from asset accounts:
Allowance for doubtful accounts	831,576	845,551		670,102	1,007,025
Year Ended December 31, 2021:
Deducted from asset accounts:
Allowance for doubtful accounts	1,453,695	436,222		1,058,341	831,576

(a) Uncollectible accounts written off

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

Line of Business

Line of Business: New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 31 properties which include 22 residential buildings and properties; 5 mixed use residential, retail and office properties; 4 commercial properties, and individual units at one condominium complex. These properties total 2,943 apartment units, 19 condominium units and approximately 130,000 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: Investments 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 investment 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 certain 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 analysis 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. Contingent rent for commercial properties are 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 values for acquired properties are amortized 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.

Under this standard, 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 allocates 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 $380,000, $452,000 and $312,000 for the years ended December 31, 2023, 2022 and 2021 respectively.

Derivative Instruments

Derivative Instruments: The Partnership measures derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them as an asset or liability, depending upon the Partnership’s rights or obligations under the applicable derivative contract. For derivatives designated and qualifying as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of the derivative are reported in other comprehensive income (“OCI”) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedging and ineffective portions of hedges are recognized in earnings in the affected period.

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.

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 a comprehensive loss of approximately $59,000 in 2023,and comprehensive income of approximately $295,000 in 2022, but had no comprehensive income or loss for 2021.

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 (loss) 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).

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, 2022, or 2021. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At December 31, 2023, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 4.07%. At December 31, 2023 and 2022, respectively approximately $18,711,000 and $49,641,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense

Advertising Expense: Advertising is expensed as incurred. Advertising expense was $359,309, $239,250 and $331,176 in 2023, 2022 and 2021, 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.

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.

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 years ended December 31, 2023, 2022 and 2021 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 refinancing qualify as extinguishment of debt.

Reclassification

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

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RENTAL PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2023

RENTAL PROPERTIES

Schedule of rental properties

	December 31, 2023		December 31, 2022		Useful Life
Land, improvements and parking lots	$	99,162,143	$	87,405,897	15	-	40	years
Buildings and improvements		277,986,334		256,035,191	15	-	40	years
Kitchen cabinets		16,137,828		14,347,212	5	-	10	years
Carpets		13,127,838		12,047,573	5	-	10	years
Air conditioning		500,000		501,697	5	-	10	years
Laundry equipment		568,716		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		21,348,556		18,716,758	5	-	30	years
Motor vehicles		232,954		171,519			5	years
Fences		91,620		46,872	5	-	15	years
Furniture and fixtures		8,365,039		7,902,182	5	-	7	years
Total fixed assets		440,496,897		400,703,910
Less: Accumulated depreciation		(170,691,951)		(159,627,479)
	$	269,804,946	$	241,076,431

Schedule of real estate and accumulated depreciation

							Cost
			Initial Cost to				Capitalized		Gross Amount at Which								Years
Property Name	Encumbrances		Partnerships(1)				Subsequent to		Carried at Close of Period								Built/	Depreciable
Type	(First				Buildings		Acquisition(2)				Buildings				Accumulated		Redecorated	Lives
Location	Mortgages)		Land		Improvements		Improvements		Land		Improvements		Totals		Depreciation		Date Acquired	Years
Boylston Downtown L.P. Residential Apartments Boston, Massachusetts	$	34,092,579	$	2,112,000	$	8,593,109	$	10,184,183	$	2,268,528	$	18,777,292	$	21,045,820	$	15,996,297	July 1995	(3)
Brookside Associates LLC Residential Apartments Woburn, Massachusetts	$	6,175,000	$	684,000	$	3,116,000	$	542,225	$	684,000	$	3,658,225	$	4,342,225	$	2,951,648	Oct. 2000	(3)
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire	$	11,214,000	$	177,610	$	1,478,359	$	1,641,894	$	177,610	$	3,120,253	$	3,297,863	$	2,490,061	Sept. 1977	(3)
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts	$	5,440,000	$	342,000	$	1,367,669	$	1,051,069	$	342,000	$	2,418,738	$	2,760,738	$	2,104,872	July 1995	(3)
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts	$	32,325,000	$	1,410,000	$	5,664,816	$	6,629,860	$	1,410,000	$	12,294,676	$	13,704,676	$	8,163,969	July 1995	(3)
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts	$	8,190,000	$	91,400	$	740,360	$	1,578,382	$	91,400	$	2,318,742	$	2,410,142	$	1,650,112	Sept. 1977	(3)
Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts	$	3,766,660	$	1,341,737	$	8,457,497	$	144,819	$	1,341,737	$	8,602,316	$	9,944,053	$	4,361,558	Jun. 2011	(3)
Hamilton Cypress LLC Commercial 1031 Exchange Brookline, Massachusetts	$	—	$	2,362,596	$	4,613,985	$	38,233	$	2,362,596	$	4,652,218	$	7,014,814	$	1,990,947	Oct. 2008	(3)
Hamilton Green Apartments, LLC Residential Apartments Andover, Massachusetts	$	32,190,519	$	16,054,336	$	44,794,438	$	(8,068,975)	$	16,054,336	$	36,725,463	$	52,779,799	$	16,828,423	Jul. 2013	(3)
Hamilton Highlands, LLC Residential Apartments Needham,Massachsetts	$	19,437,587	$	6,815,522	$	27,262,087	$	(2,215,754)		6,815,522	$	25,046,333	$	31,861,855		6,292,999	Mar. 2018	(3)
Hamilton Linewt LLC Commercial 1031 Exchange Newton,Massachusetts	$	—	$	884,042	$	2,652,127	$	134,615	$	884,042	$	2,786,742	$	3,670,784	$	1,132,827	Nov. 2007	(3)
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts	$	26,666,000	$	2,175,000	$	12,325,000	$	6,595,768	$	2,175,000	$	18,920,768	$	21,095,768	$	13,931,561	Dec. 1999	(3)
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts	$	3,960,000	$	156,000	$	634,085	$	423,539	$	156,000	$	1,057,624	$	1,213,624	$	860,541	Dec. 1996	(3)
Linhart L.P. Residential / Commercial Newton,Massachusetts	$	—	$	385,000	$	1,540,000	$	2,057,202	$	385,000	$	3,597,202	$	3,982,202	$	2,897,449	Jan. 1995	(3)
Mill Street Gardens, LLC Residential Apartments Woburn, Massachusetts	$	31,000,000	$	9,798,478	$	43,568,912	$	2,981,885		9,798,478	$	46,550,797	$	56,349,275		11,673,659	Dec. 2019	(3)
Mill Street Development,Woburn, Massachusetts	$	—	$	1,375,000	$	1,125,000	$	(599,087)		1,375,000	$	525,913	$	1,900,913		—	Dec. 2019	(3)
NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts	$	10,322,000	$	1,512,000	$	5,701,480	$	1,595,198	$	1,512,000	$	7,296,678	$	8,808,678	$	5,390,982	Jun. 2002	(3)
North Beacon 140 L.P. Residential Apartments Boston, Massachusetts	$	12,683,000	$	936,000	$	3,762,013	$	2,379,219	$	936,000	$	6,141,232	$	7,077,232	$	5,653,863	July 1995	(3)
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts	$	9,608,000	$	46,181	$	878,323	$	1,289,156	$	46,181	$	2,167,479	$	2,213,660	$	1,548,529	Sept. 1977	(3)
Redwood Hills L.P. Residential Apartments Worcester,Massachusetts	$	17,105,000	$	1,200,000	$	4,810,604	$	5,821,846	$	1,200,000	$	10,632,450	$	11,832,450	$	8,159,479	July 1995	(3)
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts	$	20,750,000	$	6,247,153	$	24,954,777	$	(74,870)	$	6,247,153	$	24,879,907	$	31,127,060	$	8,148,830	Sept. 2015	(3)
River Drive L.P Residential Apartments Danvers, Massachusetts	$	9,543,000	$	72,525	$	587,777	$	1,693,812	$	72,525	$	2,281,589	$	2,354,114	$	1,195,277	Sept. 1977	(3)
Riverside Apartments Condominium Units Watertown Massachustts	$	—	$	23,346	$	190,807	$	151,971	$	23,346	$	342,778	$	366,124	$	299,913	Sept. 1977	(3)
School St Assoc LLC Residential Apartments Framingham, Massachusetts	$	26,993,000	$	4,686,728	$	18,746,911	$	457,122	$	4,686,728	$	19,204,033	$	23,890,761	$	13,393,356	Apr. 2003	(3)
WRF Associates LLC Strip Mall Framingham, Massachusetts	$	5,954,546	$	3,280,000	$	4,920,000	$	490,262	$	3,280,000	$	5,410,262	$	8,690,262	$	4,101,814	May 1999	(3)
WCB Associates LLC Residential Apartments Brockton, Massachusetts	$	19,266,000	$	1,335,000	$	7,565,501	$	3,250,982	$	1,335,000	$	10,816,483	$	12,151,483	$	8,461,934	Dec. 1999	(3)
Westgate Apartments Burlington LLC Residential Apartments Burlington, Massachusetts	$	4,494,000	$	44,965	$	4,478,687	$	322,345	$	44,965	$	4,801,032	$	4,845,997	$	3,402,530	Sept. 2004	(3)
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts	$	38,475,000	$	461,300	$	2,424,636	$	6,702,223	$	461,300	$	9,126,859	$	9,588,159	$	6,280,115	Sept. 1977	(3)
Woodland Park Apartments LLC Residential Apartments Newton Massachusetts	$	21,788,650	$	9,114,334	$	35,874,994	$	(1,161,715)	$	9,114,334	$	34,713,279	$	43,827,613	$	10,321,309	July 2017	(3)
653 Worcester Rd Commercial Framingham, Massachusetts	$	—		3,415,051		4,496,849		1,187,232		3,415,051		5,684,081		9,099,132		429,322	Jan.2023	(3)
Shawmut Place LLC, Residential Apartments Boston, Massachusetts	$	—		7,297,401		12,249,725		7,702,495		7,297,401		19,952,220		27,249,621		577,775	July.2023	(3)
	$	411,439,541	$	85,836,705	$	299,576,528	$	54,927,136	$	85,993,233	$	354,503,664	$	440,496,897	$	170,691,951

(1) The initial cost to the Partnerships represents both the balance of mortgages assumed in September 1977, including subsequent adjustments to such amounts, and subsequent acquisitions at cost.

(2) Net of retirements.

(3) In 2023, rental properties were depreciated over the following estimated useful lives.

:

Assets	Life
Buildings and Improvements	10	-	40	years
Other Categories of Assets	5	-	15	years

Schedule of reconciliation of rental properties and accumulated depreciation

	December 31,
	2023		2022		2021
Rental Properties
Balance, Beginning	$	400,703,910	$	400,588,242	$	398,629,793
Additions:
Buildings, improvements and other assets		45,499,213		5,981,125		3,317,445
		446,203,123		406,569,367		401,947,238
Deduct:
Write-offs of retired or disposed assets		4,580,382		5,865,457		1,358,996
Impairments		1,125,844		—		—
Balance, Ending	$	440,496,897	$	400,703,910	$	400,588,242
Accumulated Depreciation
Balance, Beginning	$	159,627,479	$	149,233,040	$	134,019,906
Add:
Depreciation for the year		15,799,589		16,259,896		16,572,131
		175,427,068		165,492,936		150,592,037
Deduct
Accumulated depreciation of retired or disposed assets		4,580,382		5,865,457		1,358,997
Impairments		154,735		—		—
Balance, Ending	$	170,691,951	$	159,627,479	$	149,233,040

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MORTGAGE NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2023

MORTGAGE NOTES PAYABLE

Schedule of approximate annual maturities

Approximate annual maturities at December 31, 2023 are as follows:

2024—current maturities	$	2,853,000
2025		3,602,000
2026		25,112,000
2027		23,271,000
2028		31,875,000
Thereafter		324,726,000
		411,439,000
Less: unamortized deferred financing costs		2,779,000
	$	408,660,000

Schedule of debt by property

		PREVIOUS		CURRENT		DEFERRED
		MORTGAGE		MORTGAGE		FINANCE		PREPAYMENT
PROPERTY NAME		BALANCE		BALANCE		COSTS		PENALTY
Clovelly Apts LP	$	4,160,000	$	11,214,000	$	121,817	$	167,141
Comm 1137 LP		3,750,000		5,440,000		60,504		151,314
Comm 1144 LP		14,780,000		32,325,000		340,007		592,728
Executive Apts LP		2,415,000		8,190,000		89,333		96,434
N.Beacon 140 LP		6,937,000		12,683,000		135,813		277,003
Olde English Apt LP		3,080,000		9,608,000		104,345		123,956
Redwood Hills LP		6,743,000		17,105,000		188,406		271,204
River Dr. LP		3,465,000		9,543,000		104,605		139,218
Highland St. Apts LP		1,050,000		3,960,000		45,076		41,928
WCB Assoc. LLC		7,000,000		19,266,000		204,586		408,873
Hamilton Oaks Assoc. LP		11,925,000		26,666,000		281,596		476,180
	$	65,305,000	$	156,000,000	$	1,676,088	$	2,745,979
		PREVIOUS		CURRENT		DEFERRED
		MORTGAGE		MORTGAGE		FINANCE		PREPAYMENT
PROPERTY NAME		BALANCE		BALANCE		COSTS		PENALTY
Dean Street	$	5,687,000	$	10,322,000	$	109,841	$	160,943
School Street		13,178,000		26,993,000		287,159		171,676
Westgate Apartments		15,700,000		38,475,000		409,299		401,714
Courtyard at Westgate		2,500,000		4,494,000		47,831		100,211
	$	37,065,000	$	80,284,000	$	854,130	$	834,544

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PARTNERS' CAPITAL (Tables)

12 Months Ended

Dec. 31, 2023

PARTNERS' CAPITAL

Schedule of information per depositary receipt

	Year Ended
	December 31,
	2023		2022
Net Income per Depositary Receipt	$	2.38	$	1.03
Distributions per Depositary Receipt	$	2.80	$	2.56

XML

TREASURY UNITS (Tables)

12 Months Ended

Dec. 31, 2023

TREASURY UNITS

Schedule of treasury units

Class A	50,235
Class B	11,931
General Partnership	628
	62,794

XML

RENTAL INCOME (Tables)

12 Months Ended

Dec. 31, 2023

RENTAL INCOME.

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

	Commercial
	Property Leases
2024	$	3,099,064
2025		2,798,161
2026		2,551,671
2027		2,230,705
2028		2,014,354
Thereafter		10,105,126
	$	22,799,081

Schedule of information for commercial leases

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through December 31,	expiring leases		for expiring leases	leases expiring	expiring leases
2024	$	416,581	29,166	29	12	%
2025		253,320	7,455	7	7	%
2026		361,731	14,221	8	10	%
2027		309,189	8,884	5	9	%
2028		251,316	6,929	2	7	%
2029		433,890	15,138	3	12	%
2030		—	—	—	—	%
2031		—	—	—	—	%
2032		110,600	1,106	1	3	%
2033		—	—	—	—
Thereafter		1,428,261	46,987	4	40	%
Totals	$	3,564,888	129,886	59	100	%

XML

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENTS

Schedule of carrying amounts and estimated fair value of debt

	Dec 31, 2023		Dec 31, 2022
	Carrying Value	Fair Value	Carrying Value	Fair Value
Assets
Cash equivalents	18,230,463	18,230,463	49,560,723	49,560,723
Treasury bills	84,700,751	84,799,638	88,905,616	88,908,540
Total Assets	102,931,214	103,030,101	138,466,339	138,469,263
Liabilities
Mortgage payable *
- Partnership properties	408,660,292	359,092,343	410,966,199	355,629,060
- Investment properties	165,969,481	156,280,958	166,090,968	153,710,522
Total Liabilities	574,629,773	515,373,301	577,057,167	509,339,582

*Net of unamortized deferred financing costs

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2023

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of fair value of derivatives

	Fair Value
Asset Derivatives designated	December 31,		December 31,
as hedging instruments	2023		2022		Balance sheet location
Interest rate swaps	$	236,377	$	294,931	Prepaid Expenses and Other Assets

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

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative						Location of Gain or (Loss) Reclassified from Accumulated OCI Into	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income						Location of Gain or (Loss) Recognized in Income on	Total Amount of Interest Expense presented in the consolidated statements of operations
Year Ended December 31,	2023		2022		2021		Income	2023		2022		2021		Derivative	2023		2022		2021
Interest rate swaps	$	(58,554)	$	294,931	$	—	Interest expense	$	—	$	—	$	—	Interest and other investment income (loss)	$	(15,723,733)	$	(15,045,477)	$	(13,629,463)

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TAXABLE INCOME AND TAX BASIS (Tables)

12 Months Ended

Dec. 31, 2023

TAXABLE INCOME AND TAX BASIS

Schedule of reconciliation of GAAP net income to taxable income

	For the year ended
	December 31,
	2023		2022		2021
	(in thousands)
Financial statement (“book”) net income (loss)	$	8,454	$	3,723	$	(2,700)
Book/Tax differences from depreciation		(2,300)		4,160		5,673
Book/Tax differences from Investment Properties		351		1,258		(87)
Increase in prepaid rent and allowances		732		554		(46)
Other items		2,752		1,273		1,216
Taxable income	$	9,989	$	10,968	$	4,056

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of future annual mortgage maturities

Future annual mortgage maturities at December 31, 2023 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
12/31/2024	$	—	$	239,883	$	—	$	16,900,000	$	—	$	17,139,883
12/31/2025		10,000,000		249,333		—		—		—		10,249,333
12/31/2026		—		259,155		—		—		—		259,155
12/31/2027		—		269,365		—		—		—		269,365
12/31/2028		—		7,465,039		—		—		125,000,000		132,465,039
Thereafter		—		—		6,000,000		—		—		6,000,000
		10,000,000		8,482,775		6,000,000		16,900,000		125,000,000		166,382,775
Less: unamortized deferred financing costs		(24,131)		(29,963)		(63,081)		(10,701)		(285,418)		(413,294)
	$	9,975,869	$	8,452,812	$	5,936,919	$	16,889,299	$	124,714,582	$	165,969,481

At December 31, 2023 the weighted average interest rate on the above mortgages was 4.23%. The effective rate was 4.29% including the amortization expense of deferred financing costs.

2023

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

Summary financial information as of December 31, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,403,706		$	2,583,190		$	4,481,606		$	75,027		$	4,190,275		$	12,493,492		$	73,179,575		$	102,406,871
Cash & Cash Equivalents		1,141,751			108,348			155,557			16,339			148,334			1,204,116			1,904,290			4,678,735
Rent Receivable		208,968			78,753			117			4,120			2,957			22,319			115,904			433,138
Real Estate Tax Escrow		75,475			—			29,290			—			34,998			136,711			—			276,474
Prepaid Expenses & Other Assets		320,627			44,182			73,604			505			50,327			227,421			2,494,734			3,211,400
Total Assets	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,975,869		$	—		$	8,452,812		$	—		$	5,936,919		$	16,889,299		$	124,714,582		$	165,969,481
Accounts Payable & Accrued Expense		141,743			3,000			64,335			3,486			50,990			352,780			742,749			1,359,083
Advance Rental Pmts & Security Deposits		337,593			20,660			304,499			735			173,222			500,103			3,033,534			4,370,346
Total Liabilities		10,455,205			23,660			8,821,646			4,221			6,161,131			17,742,182			128,490,865			171,698,910
Partners’ Capital		(3,304,678)			2,790,813			(4,081,472)			91,770			(1,734,240)			(3,658,123)			(50,796,362)			(60,692,292)
Total Liabilities and Capital	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,395,406		$	—		$	45,885		$	—		$	—		$	—			1,441,291
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,652,340)		$	—		$	(2,040,737)		$	—		$	(867,121)		$	(1,829,063)		$	(20,318,546)			(26,707,807)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(25,266,517)
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 February 1, 2024		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Summary of income statement relating to investment in unconsolidated joint ventures

Summary financial information for the year ended December 31, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,831,196	$	241,884	$	1,709,429	$	98,734	$	1,334,398	$	3,879,734	$	16,461,345	$	25,556,720
Laundry and Sundry Income		3,691		—		115		—		(148)		23,163		137,498		164,319
		1,834,887		241,884		1,709,544		98,734		1,334,250		3,902,897		16,598,843		25,721,039
Expenses
Administrative		20,455		3,020		30,349		3,300		20,021		92,589		262,394		432,128
Depreciation and Amortization		470,253		11,709		346,856		3,264		339,605		1,065,353		3,685,524		5,922,564
Management Fees		72,806		10,489		67,116		4,011		53,347		152,943		338,355		699,067
Operating		284,173		—		89,139		807		105,254		455,086		1,279,434		2,213,893
Renting		61,559		—		52,686		13		5,801		54,856		107,250		282,165
Repairs and Maintenance		178,816		—		150,845		—		94,262		625,687		1,902,110		2,951,720
Taxes and Insurance		281,346		61,557		193,215		17,165		147,197		527,665		2,630,668		3,858,813
		1,369,408		86,775		930,206		28,560		765,487		2,974,179		10,205,735		16,360,350
Income Before Other Income		465,479		155,109		779,338		70,174		568,763		928,718		6,393,108		9,360,689
Other Income (Loss)
Interest Expense		(752,933)		—		(344,847)		—		(237,749)		(788,376)		(5,026,076)		(7,149,981)
Other(Expense)		—		—		—		—		—		(213,240)		—		(213,240)
Interest income		6,830		375		1,593		161		2,592		7,376		11,861		30,788
		(746,103)		375		(343,254)		161		(235,157)		(994,240)		(5,014,215)		(7,332,433)
Net (Loss) Income	$	(280,624)	$	155,484	$	436,084	$	70,335	$	333,606	$	(65,522)	$	1,378,893	$	2,028,256
Net (Loss) Income —NERA 50%	$	(140,312)	$	77,741	$	218,041	$	35,167	$	166,802	$	(32,762)				324,677
Net Income —NERA 40%													$	551,556		551,556
															$	876,233

2022

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

Summary financial information as of December 31, 2022

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,829,640		$	2,585,680		$	4,810,934		$	78,291		$	4,467,772		$	13,456,133		$	75,907,107		$	107,135,557
Cash & Cash Equivalents		985,849			110,907			358,016			29,065			328,742			1,377,250			3,866,113			7,055,942
Rent Receivable		202,221			78,436			—			4,915			2,600			9,565			106,165			403,902
Real Estate Tax Escrow		74,423			—			27,771			—			34,842			130,911			—			267,947
Prepaid Expenses & Other Assets		321,912			53,316			111,018			493			26,238			186,990			2,288,330			2,988,297
Total Assets	$	7,414,045		$	2,828,339		$	5,307,739		$	112,764		$	4,860,194		$	15,160,849		$	82,167,715		$	117,851,645
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,962,080		$	—		$	8,676,945		$	—		$	5,928,736		$	16,873,248		$	124,649,959		$	166,090,968
Accounts Payable & Accrued Expense		165,576			43,000			84,025			23,329			162,623			556,239			2,012,851			3,047,643
Advance Rental Pmts& Security Deposits		310,443			—			269,326			—			171,680			463,963			2,950,161			4,165,573
Total Liabilities		10,438,099			43,000			9,030,296			23,329			6,263,039			17,893,450			129,612,971			173,304,184
Partners’ Capital		(3,024,054)			2,785,339			(3,722,557)			89,435			(1,402,845)			(2,732,601)			(47,445,256)			(55,452,539)
Total Liabilities and Capital	$	7,414,045		$	2,828,339		$	5,307,739		$	112,764			4,860,194		$	15,160,849		$	82,167,715		$	117,851,645
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,392,669		$	—		$	44,718		$			$			$			$	1,437,387
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,512,027)		$	—		$	(1,861,278)		$	—		$	(701,422)		$	(1,366,300)		$	(18,978,102)			(24,419,129)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(22,981,742)
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 February 1, 2023		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—

Summary of income statement relating to investment in unconsolidated joint ventures

Summary financial information for the year ended December 31, 2022

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,640,480	$	296,313	$	1,516,329	$	102,802	$	1,212,854	$	3,644,802	$	15,136,724	$	23,550,304
Laundry and Sundry Income		17,652		—		245		—				77,589		135,607		231,093
		1,658,132		296,313		1,516,574		102,802		1,212,854		3,722,391		15,272,331		23,781,397
Expenses
Administrative		19,543		6,548		33,656		2,793		14,579		68,948		218,772		364,839
Depreciation and Amortization		478,538		11,709		346,793		3,264		338,919		1,081,096		3,768,367		6,028,686
Management Fees		75,216		11,468		59,715		4,160		48,548		146,115		316,813		662,035
Operating		229,528		—		76,108		1,344		129,232		400,489		1,167,733		2,004,434
Renting		25,926		—		32,332		—		9,873		51,327		91,041		210,499
Repairs and Maintenance		185,275		3,180		184,057		—		106,689		626,909		1,694,941		2,801,051
Taxes and Insurance		266,024		63,139		182,098		18,513		153,117		513,699		2,503,801		3,700,391
		1,280,050		96,044		914,759		30,074		800,957		2,888,583		9,761,468		15,771,935
Income Before Other Income		378,082		200,269		601,815		72,728		411,897		833,808		5,510,863		8,009,462
Other Income (Loss)
Interest Expense		(412,329)		—		(351,175)		—		(237,851)		(759,704)		(5,081,626)		(6,842,685)
Other Expenses				—		—		—		—		(81,360)				(81,360)
		(412,329)		—		(351,175)		—		(237,851)		(841,064)		(5,081,626)		(6,924,045)
Net Income (Loss)	$	(34,247)	$	200,269	$	250,640	$	72,729	$	174,046	$	(7,256)	$	429,237	$	1,085,417
Net Income (Loss)—NERA 50%	$	(17,124)	$	100,134	$	125,319	$	36,365	$	87,023	$	(3,629)				328,088
Net Income —NERA 40%													$	171,695		171,695
															$	499,783

2021

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

Summary financial information for the year ended December 31, 2021

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,263,331		$	2,588,169		$	5,062,602		$	81,555		$	4,697,616		$	14,334,539		$	78,755,698		$	111,783,510
Cash & Cash Equivalents		333,699			98,674			155,627			11,845			156,058			565,171			2,070,558			3,391,632
Rent Receivable		232,521			68,828			9,905			6,111			6,999			37,750			175,213			537,327
Real Estate Tax Escrow		76,651			—			29,999			—			36,451			109,588			—			252,689
Prepaid Expenses & Other Assets		301,043			62,399			117,197			446			24,009			181,941			2,102,717			2,789,752
Total Assets	$	7,207,245		$	2,818,070		$	5,375,330		$	99,957		$	4,921,133		$	15,228,989		$	83,104,186		$	118,754,910
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,948,291		$	—		$	8,892,331		$	—		$	5,920,552		$	16,857,197		$	124,585,336		$	166,203,707
Accounts Payable & Accrued Expense		68,265			3,000			52,392			3,251			48,145			188,012			670,624			1,033,689
Advance Rental Pmts& Security Deposits		180,497			—			228,803			—			159,324			434,126			2,522,719			3,525,469
Total Liabilities		10,197,053			3,000			9,173,526			3,251			6,128,021			17,479,335			127,778,679			170,762,865
Partners’ Capital		(2,989,808)			2,815,070			(3,798,196)			96,706			(1,206,888)			(2,250,346)			(44,674,493)			(52,007,955)
Total Liabilities and Capital	$	7,207,245		$	2,818,070		$	5,375,330		$	99,957		$	4,921,133		$	15,228,989		$	83,104,186		$	118,754,910
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$			$	1,407,535		$	—		$	48,353		$			$			$				1,455,888
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,494,905)		$	—		$	(1,899,098)		$	—		$	(603,445)		$	(1,125,174)		$	(17,869,797)			(22,992,420)
																						$	(21,536,532)
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 February 1, 2022		—			—			—			—			—			—			—			—
Unsold units		—			—			—			175			—			—			—			—
		—			—			—			—			—			—			—			—

Summary of income statement relating to investment in unconsolidated joint ventures

Summary financial information for the year ended December 31, 2021

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,609,397	$	391,878	$	1,360,472	$	98,135	$	1,139,865	$	3,370,478	$	12,866,983	$	20,837,208
Laundry and Sundry Income		12,761		—		1,494		—		3,913		38,697		97,781		154,646
		1,622,158		391,878		1,361,966		98,135		1,143,778		3,409,175		12,964,764		20,991,854
Expenses
Administrative		76,338		2,875		31,566		2,812		16,450		68,008		205,460		403,509
Depreciation and Amortization		479,512		20,298		343,834		3,264		338,362		1,089,225		3,742,118		6,016,613
Management Fees		52,617		12,922		54,178		3,801		45,541		131,221		274,882		575,162
Operating		168,160		—		58,667		334		98,115		432,061		1,023,732		1,781,069
Renting		101,328		—		54,672		—		4,419		90,842		460,718		711,979
Repairs and Maintenance		159,593		520		129,548		—		120,626		624,475		1,814,342		2,849,104
Taxes and Insurance		261,145		60,764		175,183		19,467		144,533		451,937		2,426,021		3,539,050
		1,298,693		97,379		847,648		29,678		768,046		2,887,769		9,947,273		15,876,486
Income Before Other Income		323,465		294,499		514,318		68,457		375,732		521,406		3,017,491		5,115,368
Other Income (Loss)
Interest Expense		(246,339)		—		(359,036)		—		(237,845)		(759,698)		(5,055,677)		(6,658,595)
Interest Income		—		—		—		—		—		—		1,222		1,222
		(246,339)		—		(359,036)		—		(237,845)		(759,698)		(5,054,455)		(6,657,373)
Net Income (Loss)	$	77,126	$	294,499	$	155,282	$	68,458	$	137,887	$	(238,292)	$	(2,036,964)	$	(1,542,005)
Net Income (Loss)—NERA 50%	$	38,563	$	147,249	$	77,641	$	34,229	$	68,944	$	(119,147)				247,478
Net Income —NERA 40%													$	(814,786)		(814,786)
															$	(567,308)

XML

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2023

QUARTERLY FINANCIAL DATA (UNAUDITED)

Schedule of quarterly financial data (unaudited)

	Three Months Ended
	March 31, 2023		June 30, 2023		September 30, 2023		December 31, 2023		Total
Revenue	$	17,691,686	$	18,101,036	$	18,961,642	$	19,727,004	$	74,481,368
Expenses		13,240,321		13,362,686		14,062,381		15,001,133		55,666,521
Income Before Other Income		4,451,365		4,738,350		4,899,261		4,725,871		18,814,847
Other Expenses		(2,696,990)		(2,513,746)		(2,724,035)		(2,426,126)		(10,360,897)
Net Income	$	1,754,375	$	2,224,604	$	2,175,226	$	2,299,745	$	8,453,950
Net Income Per Unit	$	14.72	$	18.73	$	18.38	$	19.51	$	71.34
Net Income Per Depositary Receipt	$	0.49	$	0.62	$	0.61	$	0.65	$	2.38

	Three Months Ended
	March 31, 2022		June 30, 2022		September 30, 2022		December 31, 2022		Total
Revenue	$	16,580,409	$	16,931,928	$	17,078,383	$	17,703,006	$	68,293,726
Expenses		12,803,459		12,321,006		12,517,586		12,563,529		50,205,580
Income Before Other Income		3,776,950		4,610,922		4,560,797		5,139,477		18,088,146
Other Expenses		(3,434,532)		(4,367,937)		(3,565,573)		(2,996,831)		(14,364,873)
Net Income	$	342,418	$	242,985	$	995,224	$	2,142,646	$	3,723,273
Net Income Per Unit	$	2.82	$	2.02	$	8.32	$	17.83	$	30.99
Net Income Per Depositary Receipt	$	0.09	$	0.07	$	0.28	$	0.59	$	1.03

XML

QUALIFYING ACCOUNTS (Tables)

12 Months Ended

Dec. 31, 2023

QUALIFYING ACCOUNTS

Schedule of valuation and qualifying accounts

		Additions
	Balance at	Charged to	Charged to		Balance
	Beginning	Costs and	other account	Deductions	at end
Description	of Period	Expenses	describe	Describe(a)	of Period
Year Ended December 31, 2023:
Deducted from asset accounts:
Allowance for doubtful accounts	1,007,025	1,462,371		1,274,685	1,194,711
Year Ended December 31, 2022:
Deducted from asset accounts:
Allowance for doubtful accounts	831,576	845,551		670,102	1,007,025
Year Ended December 31, 2021:
Deducted from asset accounts:
Allowance for doubtful accounts	1,453,695	436,222		1,058,341	831,576

(a) Uncollectible accounts written off

XML

SIGNIFICANT ACCOUNTING POLICIES (Business) (Details)	Dec. 31, 2023 ft² item property	Dec. 31, 2022	Dec. 31, 2021
Commercial
Line of Business
Number of properties	2
Wholly owned properties
Line of Business
Number of properties	31
Wholly owned properties | Residential and mixed-use properties
Line of Business
Number of properties	27
Number of units | item	2,943
Wholly owned properties | Residential buildings
Line of Business
Number of properties	22
Wholly owned properties | Mixed use residential, retail and office buildings
Line of Business
Number of properties	5
Wholly owned properties | Commercial
Line of Business
Number of properties	4
Area of property (in square feet) | ft²	130,000
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 properties after balance sheet date | item	688
Number of units | item	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%	40.00%
NERA 50%
Line of Business
Ownership interest (as a percent)	50.00%	50.00%	50.00%

XML

SIGNIFICANT ACCOUNTING POLICIES (Details)			12 Months Ended
	Jan. 03, 2012	Jan. 03, 2012	Dec. 31, 2023 USD ($) item shares	Dec. 31, 2022 USD ($) tenant	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) tenant	Dec. 31, 2019 tenant
Principles of Consolidation
Value at which partnership investments discontinue use of equity method			$ 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			$ 380,000	$ 452,000	$ 312,000
Income Taxes
Provision for income taxes			$ 0
Segment Reporting
Number of segments | item			1
Other Comprehensive Income (Loss)
Comprehensive loss			$ 58,554	$ (294,931)	0
Income Per Unit
Dilutive units | shares			0
Concentration of Credit Risks and Financial Instruments
Single tenants | tenant				0		0	0
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets			$ 18,711,000	$ 49,641,000
Advertising Expense
Advertising expense			$ 359,309	239,250	331,176
Interest Capitalized
Capitalized interest				$ 0	$ 0	$ 0
Minimum
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)			0.01%
Interest Capitalized
Criteria of capitalization of interest on property based on specified period of construction			1 year
Maximum
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)			4.07%
Less Than Wholly Owned Subsidiaries [Member] | Minimum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)			99.67%
Less Than Wholly Owned Subsidiaries [Member] | Maximum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)			100.00%
Investment Properties
Principles of Consolidation
Number of limited liability companies/partnerships | item			7
Investment Properties | Minimum
Principles of Consolidation
Percentage of ownership interest			40.00%
Investment Properties | Maximum
Principles of Consolidation
Percentage of ownership interest			50.00%
Class A
Income (Loss) Per Depositary Receipt
Forward split of depositary receipts	3	3
Exchange ratio of depositary receipts for partnership units before adjustment	10	10
Exchange ratio of depositary receipts for partnership units after adjustment	30	30
Number of units in each depository receipt	0.03333	0.03333

XML

RENTAL PROPERTIES (Details)		12 Months Ended
	Jul. 14, 2023 USD ($) item	Dec. 31, 2023 USD ($) ft² item property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 property
Rental properties
Total fixed assets		$ 440,496,897	$ 400,703,910
Less: Accumulated depreciation		(170,691,951)	(159,627,479)
Total fixed assets, net		269,804,946	241,076,431
South End neighborhood of Boston, MA
RENTAL PROPERTIES
Number of units | item	52
Rental properties
Purchase price of real estate properties	$ 27,500,000
Closing Costs	$ 81,000
Land, improvements and parking lots
Rental properties
Total fixed assets		$ 99,162,143	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		$ 277,986,334	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		$ 16,137,828	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		$ 13,127,838	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		$ 500,000	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		$ 568,716	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		$ 21,348,556	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
Useful Life		5 years
Fences
Rental properties
Total fixed assets		$ 91,620	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		$ 8,365,039	$ 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		31
Investment Properties
RENTAL PROPERTIES
Number of units | property		690	865	865
NERA 40%
RENTAL PROPERTIES
Ownership interest (as a percent)		40.00%	40.00%	40.00%
NERA 50%
RENTAL PROPERTIES
Ownership interest (as a percent)		50.00%	50.00%	50.00%
Residential and mixed-use properties | Wholly owned properties
RENTAL PROPERTIES
Number of units | item		2,943
Number of properties | property		27
Residential and mixed-use properties | Partially owned properties
RENTAL PROPERTIES
Number of units | item		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
RENTAL PROPERTIES
Number of properties | property		2
Commercial | Wholly owned properties
RENTAL PROPERTIES
Number of properties | property		4
Rental properties
Area of property (in square feet) | ft²		130,000
Commercial | Investment Properties
RENTAL PROPERTIES
Number of units | property		3	3	3

XML

RENTAL PROPERTIES - Real Estate Detail (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	$ 411,439,541
Initial Cost to Partnerships
Land	85,836,705
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	54,927,136
Gross Amount at Which Carried at Close of Period
Land	85,993,233
Building Improvements	354,503,664
Totals	440,496,897	$ 400,703,910	$ 400,588,242	$ 398,629,793
Accumulated Depreciation	170,691,951	$ 159,627,479	$ 149,233,040	$ 134,019,906
Buildings and improvements
Initial Cost to Partnerships
Building Improvements	$ 299,576,528
Buildings and improvements | Minimum
Gross Amount at Which Carried at Close of Period
Estimated useful lives	10 years
Buildings and improvements | Maximum
Gross Amount at Which Carried at Close of Period
Estimated useful lives	40 years
Other Categories of Assets | Minimum
Gross Amount at Which Carried at Close of Period
Estimated useful lives	5 years
Other Categories of Assets | Maximum
Gross Amount at Which Carried at Close of Period
Estimated useful lives	15 years
Boylston Downtown L.P. Residential Apartments Boston, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	$ 34,092,579
Initial Cost to Partnerships
Land	2,112,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	10,184,183
Gross Amount at Which Carried at Close of Period
Land	2,268,528
Building Improvements	18,777,292
Totals	21,045,820
Accumulated Depreciation	15,996,297
Boylston Downtown L.P. Residential Apartments Boston, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	8,593,109
Brookside Associates LLC Residential Apartments Woburn, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	6,175,000
Initial Cost to Partnerships
Land	684,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	542,225
Gross Amount at Which Carried at Close of Period
Land	684,000
Building Improvements	3,658,225
Totals	4,342,225
Accumulated Depreciation	2,951,648
Brookside Associates LLC Residential Apartments Woburn, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	3,116,000
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	11,214,000
Initial Cost to Partnerships
Land	177,610
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,641,894
Gross Amount at Which Carried at Close of Period
Land	177,610
Building Improvements	3,120,253
Totals	3,297,863
Accumulated Depreciation	2,490,061
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	1,478,359
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	5,440,000
Initial Cost to Partnerships
Land	342,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,051,069
Gross Amount at Which Carried at Close of Period
Land	342,000
Building Improvements	2,418,738
Totals	2,760,738
Accumulated Depreciation	2,104,872
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	1,367,669
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	32,325,000
Initial Cost to Partnerships
Land	1,410,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	6,629,860
Gross Amount at Which Carried at Close of Period
Land	1,410,000
Building Improvements	12,294,676
Totals	13,704,676
Accumulated Depreciation	8,163,969
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	5,664,816
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	8,190,000
Initial Cost to Partnerships
Land	91,400
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,578,382
Gross Amount at Which Carried at Close of Period
Land	91,400
Building Improvements	2,318,742
Totals	2,410,142
Accumulated Depreciation	1,650,112
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	740,360
Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	3,766,660
Initial Cost to Partnerships
Land	1,341,737
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	144,819
Gross Amount at Which Carried at Close of Period
Land	1,341,737
Building Improvements	8,602,316
Totals	9,944,053
Accumulated Depreciation	4,361,558
Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	8,457,497
Hamilton Cypress LLC Commercial-1031Exchange Brookline, Massachusetts
Initial Cost to Partnerships
Land	2,362,596
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	38,233
Gross Amount at Which Carried at Close of Period
Land	2,362,596
Building Improvements	4,652,218
Totals	7,014,814
Accumulated Depreciation	1,990,947
Hamilton Cypress LLC Commercial-1031Exchange Brookline, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	4,613,985
Hamilton Green Apartments Residential Apartments Andover, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	32,190,519
Initial Cost to Partnerships
Land	16,054,336
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	(8,068,975)
Gross Amount at Which Carried at Close of Period
Land	16,054,336
Building Improvements	36,725,463
Totals	52,779,799
Accumulated Depreciation	16,828,423
Hamilton Green Apartments Residential Apartments Andover, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	44,794,438
Hamilton Highlands LLC Residential Needham Massachusetts [Member]
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	19,437,587
Initial Cost to Partnerships
Land	6,815,522
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	(2,215,754)
Gross Amount at Which Carried at Close of Period
Land	6,815,522
Building Improvements	25,046,333
Totals	31,861,855
Accumulated Depreciation	6,292,999
Hamilton Highlands LLC Residential Needham Massachusetts [Member] | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	27,262,087
Hamilton Linewt LLC Commercial-1031 Exchange Newton, Massachusetts
Initial Cost to Partnerships
Land	884,042
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	134,615
Gross Amount at Which Carried at Close of Period
Land	884,042
Building Improvements	2,786,742
Totals	3,670,784
Accumulated Depreciation	1,132,827
Hamilton Linewt LLC Commercial-1031 Exchange Newton, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	2,652,127
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	26,666,000
Initial Cost to Partnerships
Land	2,175,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	6,595,768
Gross Amount at Which Carried at Close of Period
Land	2,175,000
Building Improvements	18,920,768
Totals	21,095,768
Accumulated Depreciation	13,931,561
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	12,325,000
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	3,960,000
Initial Cost to Partnerships
Land	156,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	423,539
Gross Amount at Which Carried at Close of Period
Land	156,000
Building Improvements	1,057,624
Totals	1,213,624
Accumulated Depreciation	860,541
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	634,085
Linhart L.P. Residential/Commercial Newton, Massachusetts
Initial Cost to Partnerships
Land	385,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	2,057,202
Gross Amount at Which Carried at Close of Period
Land	385,000
Building Improvements	3,597,202
Totals	3,982,202
Accumulated Depreciation	2,897,449
Linhart L.P. Residential/Commercial Newton, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	1,540,000
Mill Street Gardens Residential Apartments Woburn Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	31,000,000
Initial Cost to Partnerships
Land	9,798,478
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	2,981,885
Gross Amount at Which Carried at Close of Period
Land	9,798,478
Building Improvements	46,550,797
Totals	56,349,275
Accumulated Depreciation	11,673,659
Mill Street Gardens Residential Apartments Woburn Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	43,568,912
Mill Street Development Woburn Massachusetts
Initial Cost to Partnerships
Land	1,375,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	(599,087)
Gross Amount at Which Carried at Close of Period
Land	1,375,000
Building Improvements	525,913
Totals	1,900,913
Mill Street Development Woburn Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	1,125,000
NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	10,322,000
Initial Cost to Partnerships
Land	1,512,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,595,198
Gross Amount at Which Carried at Close of Period
Land	1,512,000
Building Improvements	7,296,678
Totals	8,808,678
Accumulated Depreciation	5,390,982
NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	5,701,480
North Beacon 140 L.P. Residential Units Boston, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	12,683,000
Initial Cost to Partnerships
Land	936,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	2,379,219
Gross Amount at Which Carried at Close of Period
Land	936,000
Building Improvements	6,141,232
Totals	7,077,232
Accumulated Depreciation	5,653,863
North Beacon 140 L.P. Residential Units Boston, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	3,762,013
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	9,608,000
Initial Cost to Partnerships
Land	46,181
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,289,156
Gross Amount at Which Carried at Close of Period
Land	46,181
Building Improvements	2,167,479
Totals	2,213,660
Accumulated Depreciation	1,548,529
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	878,323
Redwood Hills L.P. Residential Units Worcester, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	17,105,000
Initial Cost to Partnerships
Land	1,200,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	5,821,846
Gross Amount at Which Carried at Close of Period
Land	1,200,000
Building Improvements	10,632,450
Totals	11,832,450
Accumulated Depreciation	8,159,479
Redwood Hills L.P. Residential Units Worcester, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	4,810,604
Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	20,750,000
Initial Cost to Partnerships
Land	6,247,153
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	(74,870)
Gross Amount at Which Carried at Close of Period
Land	6,247,153
Building Improvements	24,879,907
Totals	31,127,060
Accumulated Depreciation	8,148,830
Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	24,954,777
River Drive L.P. Residential Apartments Danvers, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	9,543,000
Initial Cost to Partnerships
Land	72,525
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,693,812
Gross Amount at Which Carried at Close of Period
Land	72,525
Building Improvements	2,281,589
Totals	2,354,114
Accumulated Depreciation	1,195,277
River Drive L.P. Residential Apartments Danvers, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	587,777
Riverside Apartments Condominium Units Massachusetts
Initial Cost to Partnerships
Land	23,346
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	151,971
Gross Amount at Which Carried at Close of Period
Land	23,346
Building Improvements	342,778
Totals	366,124
Accumulated Depreciation	299,913
Riverside Apartments Condominium Units Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	190,807
School St Assoc LLC Residential Apartments Framingham, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	26,993,000
Initial Cost to Partnerships
Land	4,686,728
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	457,122
Gross Amount at Which Carried at Close of Period
Land	4,686,728
Building Improvements	19,204,033
Totals	23,890,761
Accumulated Depreciation	13,393,356
School St Assoc LLC Residential Apartments Framingham, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	18,746,911
WRF Associates LLC Strip Mall Framingham, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	5,954,546
Initial Cost to Partnerships
Land	3,280,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	490,262
Gross Amount at Which Carried at Close of Period
Land	3,280,000
Building Improvements	5,410,262
Totals	8,690,262
Accumulated Depreciation	4,101,814
WRF Associates LLC Strip Mall Framingham, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	4,920,000
WCB Associates LLC Residential Apartments Brockton, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	19,266,000
Initial Cost to Partnerships
Land	1,335,000
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	3,250,982
Gross Amount at Which Carried at Close of Period
Land	1,335,000
Building Improvements	10,816,483
Totals	12,151,483
Accumulated Depreciation	8,461,934
WCB Associates LLC Residential Apartments Brockton, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	7,565,501
Westgate Apartments Residential Units Burlington Massachusetts Member
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	4,494,000
Initial Cost to Partnerships
Land	44,965
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	322,345
Gross Amount at Which Carried at Close of Period
Land	44,965
Building Improvements	4,801,032
Totals	4,845,997
Accumulated Depreciation	3,402,530
Westgate Apartments Residential Units Burlington Massachusetts Member | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	4,478,687
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	38,475,000
Initial Cost to Partnerships
Land	461,300
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	6,702,223
Gross Amount at Which Carried at Close of Period
Land	461,300
Building Improvements	9,126,859
Totals	9,588,159
Accumulated Depreciation	6,280,115
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	2,424,636
Woodland Park Apartments LLC Newton Massachusetts
Real estate and accumulated depreciation
Encumbrances (First Mortgages)	21,788,650
Initial Cost to Partnerships
Land	9,114,334
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	(1,161,715)
Gross Amount at Which Carried at Close of Period
Land	9,114,334
Building Improvements	34,713,279
Totals	43,827,613
Accumulated Depreciation	10,321,309
Woodland Park Apartments LLC Newton Massachusetts | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	35,874,994
353 Worcester Rd
Initial Cost to Partnerships
Land	3,415,051
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	1,187,232
Gross Amount at Which Carried at Close of Period
Land	3,415,051
Building Improvements	5,684,081
Totals	9,099,132
Accumulated Depreciation	429,322
353 Worcester Rd | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	4,496,849
Shawmut Place [Member]
Initial Cost to Partnerships
Land	7,297,401
Cost Capitalized Subsequent to Acquisition
Improvements, Net of retirements	7,702,495
Gross Amount at Which Carried at Close of Period
Land	7,297,401
Building Improvements	19,952,220
Totals	27,249,621
Accumulated Depreciation	577,775
Shawmut Place [Member] | Buildings and improvements
Initial Cost to Partnerships
Building Improvements	$ 12,249,725

XML

RENTAL PROPERTIES (Reconciliation) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Rental Properties
Balance, Beginning	$ 400,703,910	$ 400,588,242	$ 398,629,793
Additions:
Buildings, improvements and other assets	45,499,213	5,981,125	3,317,445
Balance before deductions	446,203,123	406,569,367	401,947,238
Deduct:
Write-offs of retired or disposed assets	4,580,382	5,865,457	1,358,996
Impairment	1,125,844
Balance, Ending	440,496,897	400,703,910	400,588,242
Accumulated Depreciation
Balance, Beginning	159,627,479	149,233,040	134,019,906
Add:
Depreciation for the year	15,799,589	16,259,896	16,572,131
Total additions	175,427,068	165,492,936	150,592,037
Deduct:
Accumulated depreciation of retired or disposed assets	4,580,382	5,865,457	1,358,997
Impairment	154,735
Balance, Ending	$ 170,691,951	$ 159,627,479	$ 149,233,040

XML

RENTAL PROPERTIES - Debt (Details)			12 Months Ended
	Jun. 16, 2022 USD ($) property	Nov. 30, 2021 USD ($) property	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 15, 2022 USD ($) property	Nov. 29, 2021 USD ($)
Debt Instrument [Line Items]
Mortgage amount	$ 80,284,000	$ 156,000,000				$ 37,065,000	$ 65,305,000
Payment of debt			$ 2,685,691	$ 2,283,733	$ 2,294,389
Mortgage prepayment penalties	834,544	2,745,979
Proceeds from Mortgage Notes Payable				$ 41,889,433	$ 88,582,856
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				4
Mortgage prepayment penalties	$ 834,000	$ 2,700,000
Proceeds from Mortgage Notes Payable	$ 42,404,000	$ 89,000,000

XML

RENTAL PROPERTIES - Worchester Road (Details) - Worcester Road	Jan. 18, 2003 USD ($) ft²
RENTAL PROPERTIES
Area of the property | ft²	20,700
Purchase price of real estate properties	$ 10,151,000
Closing costs	59,000
Purchase price allocated to the value of the in-place leases	585,000
Purchase price allocated to the value of the tenant relationships	$ 378,000
Amortization period of value of the in-place leases	12 months
Amortization period of value of the tenant relationships	156 months

XML

RENTAL PROPERTIES - South End neighborhood (Details) - South End neighborhood of Boston, MA [Member]	Jul. 14, 2023 USD ($) ft² item
RENTAL PROPERTIES
Number of units | item	52
Number of buildings | item	3
Area Of Building | ft²	3,400
Purchase price of real estate properties	$ 27,500,000
Closing Costs	81,000
Purchase price allocated to the value of the in-place leases	525,000
Purchase price allocated to the value of the tenant relationships	61,000
Purchase price allocated to the value of below market leases	$ 241,000
Amortization period of value of the in-place leases	12 months
Amortization period of value of the tenant relationships	36 months

XML

RENTAL PROPERTIES - Mill Street Development site (Details)	1 Months Ended	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2023 USD ($) item	Jun. 16, 2022 USD ($)	Jun. 15, 2022 USD ($)	Nov. 30, 2021 USD ($)	Nov. 29, 2021 USD ($)
RENTAL PROPERTIES
Impairment of Real Estate		$ 971,109
Loan amount			$ 80,284,000	$ 37,065,000	$ 156,000,000	$ 65,305,000
Mill Street Development Woburn Massachusetts
RENTAL PROPERTIES
Number of units | item	72	72
Number of affordable units | item	17	17
Impairment of Real Estate	$ 971,000
Escrow deposit	75,000
Mill Street Development Woburn Massachusetts | Loan Term Sheet [Member]
RENTAL PROPERTIES
Loan amount	$ 15,000,000	$ 15,000,000

XML

RELATED PARTY TRANSACTIONS (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
RELATED PARTY TRANSACTIONS
Repairs and maintenance	$ 13,366,079	$ 11,270,589	$ 10,069,325
Administrative expense	2,900,432	2,731,284	2,476,593
Renting	1,004,666	639,235	1,241,298
Employer contributions in 401K plan	$ 64,000	85,000	45,000
Legal fees		$ 84,000
Number of limited partnerships and limited liability companies in which the entity has invested | item	7
Number Of Advisory Committee Meeting Held | item	4	4
Expenses Incurred For Attendance And Participation In Advisory Committee Meeting	$ 16,000
Number Of Audit Committee Meeting Held | item	4
Expenses Incurred For Attendance And Participation In Audit Committee Meeting	$ 80,000
Related party
RELATED PARTY TRANSACTIONS
Management fee	$ 2,948,066	$ 2,716,514	$ 2,523,943
Brown Family | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	47.60%
Brown Family | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	59.00%
Brown Family | Related party | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	47.60%
Brown Family | Related party | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)		59.00%
NERA 40%
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	40.00%	40.00%	40.00%
NERA 50%
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	50.00%	50.00%	50.00%
Majority of Partnership Properties | Related party
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue	4.00%
Management fee (as a percent)	4.00%
Linewt | Related party
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue	3.00%
General Partner or Management Company | Related party
RELATED PARTY TRANSACTIONS
Costs related to professional services	$ 1,289,000	$ 747,000	$ 1,086,000
Repairs and maintenance	261,000
Administrative expense	356,000
Renting	66,000
Construction, architectural services and supervision of capital projects	606,000
Hamilton Company/Management Company | Related party
RELATED PARTY TRANSACTIONS
Management fee	2,948,000	2,717,000	2,524,000
Costs related to professional services		125,000	125,000	$ 125,000
Amount received for management fees	797,000
Payroll and related expenses	4,180,000	3,875,000	3,640,000
Employer contributions in 401K plan	$ 64,000	85,000	45,000
Number of accounting staff providing bookkeeping and accounting functions | item	14
Hamilton Company/Management Company | Management fee | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees	$ 699,000
Hamilton Company/Management Company | Construction, architectural services and supervision of capital projects | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees	9,000
Hamilton Company/Management Company | Repairs and maintenance | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees	57,000
Hamilton Company/Management Company | Renting Expense [Member]
RELATED PARTY TRANSACTIONS
Amount received for management fees	1,000
Hamilton Company/Management Company | Administrative Services [Member] | Related party
RELATED PARTY TRANSACTIONS
Amount received for management fees	$ 31,000
Dexter Park | Related party
RELATED PARTY TRANSACTIONS
Management fee (as a percent)	2.00%
Sally Michael | Related party
RELATED PARTY TRANSACTIONS
Legal fees	$ 91,000	$ 84,000	$ 168,000
Current and previous management company employees | Related party
RELATED PARTY TRANSACTIONS
Number of employees having ownership interest in the investment properties | item	5

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PREPAID EXPENSES and OTHER ASSETS (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
PREPAID EXPENSES and OTHER ASSETS
Security deposits	$ 3,601,000	$ 3,406,000
Escrow deposits to fund future capital improvements	1,784,000	1,979,000
Intangible assets, net of accumulated amortization	1,549,000
Accumulated amortization on intangible assets	872,000
Financing fees, net	52,000	109,000
Financing fees accumulated amortization amount	$ 130,000	$ 70,000

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MORTGAGE NOTES PAYABLE (Mortgages Payable) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	4.29%
Financing fees, net	$ 52,000	$ 109,000
Annual maturities of mortgage debt
2024-current maturities	2,853,000
2025	3,602,000
2026	25,112,000
2027	23,271,000
2028	31,875,000
Thereafter	324,726,000
Total	411,439,000
Less: unamortized deferred financing costs	2,779,000
Outstanding amount of mortgage	408,660,292	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	$ 2,779,000	3,159,000
Accumulated amortization on financing and leasing fees	$ 1,353,000	$ 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)					12 Months Ended
	Oct. 14, 2022 USD ($)	Oct. 04, 2022	Jun. 16, 2022 USD ($) property	Nov. 30, 2021 USD ($) property	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 15, 2022 USD ($) property	Nov. 29, 2021 USD ($)
Debt Instrument [Line Items]
Mortgage amount			$ 80,284,000	$ 156,000,000				$ 37,065,000	$ 65,305,000
Payment of debt					$ 2,685,691	$ 2,283,733	$ 2,294,389
Mortgage prepayment penalties			834,544	2,745,979
Proceeds from Mortgage Notes Payable						$ 41,889,433	$ 88,582,856
Extending the maturity until October 14, 2032 | 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%
Extending the maturity until October 14, 2032 | Modification agreement with Brookline Bank. | SOFR
Debt Instrument [Line Items]
Variable interest rate spread		1.70%
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				4
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					12 Months Ended
	Jun. 30, 2023	Dec. 03, 2021 USD ($)	Oct. 29, 2021 USD ($)	Jul. 31, 2014 USD ($)	Dec. 31, 2023 USD ($) property
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
Payment on line of credit		$ 17,000,000
Amount of refinancing costs			$ 179,000
Extension fees paid				$ 128,000	$ 37,500
Number of properties in which borrowing amount collateralized | property					23
Current covenants
Line of Credit
Leverage ratio			65.00%
Tangible net worth			$ 200
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
Debt yield			8.50%
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%
SOFR
Line of Credit
Variable interest rate spread	1.00%
LIBOR [Member]
Line of Credit
Additional applicable margin rate				2.50%
Variable interest rate spread			3.00%	1.00%
Minimum
Line of Credit
Pledged interest ownership percentage					49.00%
Debt yield					8.60%
Maximum
Line of Credit
Pledged interest ownership percentage					100.00%
Debt yield			9.50%

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MORTGAGE NOTES PAYABLE (Facility Agreement Properties) (Details) - USD ($)	Jun. 16, 2022	Nov. 30, 2021	Jun. 15, 2022	Nov. 29, 2021
Debt Instrument [Line Items]
Mortgage amount	$ 80,284,000	$ 156,000,000	$ 37,065,000	$ 65,305,000
Deferred Finance Costs	854,130	1,676,088
Mortgage prepayment penalties	834,544	2,745,979
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire
Debt Instrument [Line Items]
Mortgage amount		11,214,000		4,160,000
Deferred Finance Costs		121,817
Mortgage prepayment penalties		167,141
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		5,440,000		3,750,000
Deferred Finance Costs		60,504
Mortgage prepayment penalties		151,314
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		32,325,000		14,780,000
Deferred Finance Costs		340,007
Mortgage prepayment penalties		592,728
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		8,190,000		2,415,000
Deferred Finance Costs		89,333
Mortgage prepayment penalties		96,434
North Beacon 140 L.P. Residential Units Boston, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		12,683,000		6,937,000
Deferred Finance Costs		135,813
Mortgage prepayment penalties		277,003
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		9,608,000		3,080,000
Deferred Finance Costs		104,345
Mortgage prepayment penalties		123,956
Redwood Hills L.P. Residential Units Worcester, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		17,105,000		6,743,000
Deferred Finance Costs		188,406
Mortgage prepayment penalties		271,204
River Drive L.P. Residential Apartments Danvers, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		9,543,000		3,465,000
Deferred Finance Costs		104,605
Mortgage prepayment penalties		139,218
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		3,960,000		1,050,000
Deferred Finance Costs		45,076
Mortgage prepayment penalties		41,928
WCB Associates LLC Residential Apartments Brockton, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		19,266,000		7,000,000
Deferred Finance Costs		204,586
Mortgage prepayment penalties		408,873
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts
Debt Instrument [Line Items]
Mortgage amount		26,666,000		$ 11,925,000
Deferred Finance Costs		281,596
Mortgage prepayment penalties		476,180
NERA Dean Street Associates, LLC
Debt Instrument [Line Items]
Mortgage amount	10,322,000		5,687,000
Deferred Finance Costs	109,841
Mortgage prepayment penalties	160,943
School St Assoc LLC Residential Apartments Framingham, Massachusetts
Debt Instrument [Line Items]
Mortgage amount	26,993,000		13,178,000
Deferred Finance Costs	287,159
Mortgage prepayment penalties	171,676
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts
Debt Instrument [Line Items]
Mortgage amount	4,494,000		2,500,000
Deferred Finance Costs	47,831
Mortgage prepayment penalties	100,211
Courtyard at Westgate
Debt Instrument [Line Items]
Mortgage amount	38,475,000		$ 15,700,000
Deferred Finance Costs	409,299
Mortgage prepayment penalties	401,714
Facility Agreement
Debt Instrument [Line Items]
Mortgage amount	80,284,000	156,000,000
Mortgage prepayment penalties	$ 834,000	$ 2,700,000

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS
Period for advance rental payment	1 month
Amount received for prepaid rent	$ 3,078,000	$ 2,618,000
Security deposits	$ 3,601,000	$ 3,406,000

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PARTNERS' CAPITAL (Details)	3 Months Ended									12 Months Ended
	Mar. 31, 2024 $ / item	Dec. 31, 2023 $ / item	Sep. 30, 2023 $ / item	Jun. 30, 2023 $ / item	Mar. 31, 2023 $ / item	Dec. 31, 2022 $ / item	Sep. 30, 2022 $ / item	Jun. 30, 2022 $ / item	Mar. 31, 2022 $ / item	Dec. 31, 2023 USD ($) item $ / item	Dec. 31, 2022 USD ($) $ / item
Total distribution per unit (in dollars per unit)		84.00				76.80				84.00	76.80
Total distribution per depository receipt (in dollars per receipt)		2.80				2.56				2.80	2.56
Total distributions | $										$ 9,954,888	$ 9,267,981
Depositary receipts exchange ratio for Class A units | item										30
Earnings per depository receipt
Net Income per Depositary Receipt		0.65	0.61	0.62	0.49	0.59	0.28	0.07	0.09	2.38	1.03
Subsequent event
Quarterly distribution per unit (in dollars per unit)	12.00
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%
Class A
Earnings per depository receipt
Net Income per Depositary Receipt										2.38	1.03
Distributions per Depositary Receipt		2.80				2.56				2.80	2.56
Class A | Subsequent event
Quarterly distribution per unit (in dollars per unit)	48.00
Special distribution per depository receipt (in dollars per receipt)	1.60
Class B
Fixed distribution percentage of unit holders										19.00%

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TREASURY UNITS (Details)				12 Months Ended			196 Months Ended
	Mar. 09, 2020	Mar. 10, 2015 shares	Aug. 20, 2007 shares	Dec. 31, 2023 USD ($) $ / item shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2023 USD ($) $ / item shares	Jan. 03, 2012	Mar. 06, 2008 shares
Treasury units				62,794			62,794
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							1,532,234
Repurchase price of depository receipts (in dollars per receipt) | $ / item							31.72
Units required to be repurchased (in shares)				1,824	2,261	240
Total cost of repurchase | $				$ 3,925,535	$ 5,326,973	$ 450,258	$ 54,421,000
General Partnership
Treasury units				628			628
Fixed distribution percentage of unit holders				1.00%
Units required to be repurchased (in shares)				18.24
Total cost of repurchase | $				$ 39,181	53,232	4,500
Class A
Depositary receipt as a percent of one Class A Unit			10.00%
Fixed distribution percentage of unit holders				80.00%
Number of depository receipts repurchased				43,774
Repurchase price of depository receipts (in dollars per receipt) | $ / item				71.71
Repurchase price of units (in dollars per unit) | $ / item				2,151.25			951.52
Total cost of repurchase | $				$ 3,141,917	4,262,338	360,266
Class B
Fixed distribution percentage of unit holders				19.00%
Units required to be repurchased (in shares)				346.54
Total cost of repurchase | $				$ 744,437	$ 1,011,403	$ 85,492
Class A
Treasury units				50,235			50,235
Number of units in each depository receipt								0.03333
Class B
Treasury units				11,931			11,931
Fixed distribution percentage of unit holders				19.00%
Number of depository receipts repurchased							4,394
Class B | General Partnership
Repurchase price of units (in dollars per unit) | $ / item							1,259.00

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RENTAL INCOME (Details)	12 Months Ended
	Dec. 31, 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	$ 3,099,064
2025	2,798,161
2026	2,551,671
2027	2,230,705
2028	2,014,354
Thereafter	10,105,126
Commercial Property Leases	$ 22,799,081

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RENTAL INCOME (Concentration) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Concentration Risk
Aggregate contingent rentals	$ 683,000	$ 541,000	$ 563,000
Commercial rental income | Major tenant | Staples and Trader Joes
Concentration Risk
Concentration risk percentage	22.00%

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RENTAL INCOME (Commercial Leases) (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) ft² item
RENTAL INCOME
Annual base rent for expiring leases | $	$ 3,564,888
Total square feet for expiring leases | ft²	129,886
Total number of leases expiring | item	59
Percentage of annual base rent for expiring leases	100.00%
2024
RENTAL INCOME
Annual base rent for expiring leases | $	$ 416,581
Total square feet for expiring leases | ft²	29,166
Total number of leases expiring | item	29
Percentage of annual base rent for expiring leases	12.00%
2025
RENTAL INCOME
Annual base rent for expiring leases | $	$ 253,320
Total square feet for expiring leases | ft²	7,455
Total number of leases expiring | item	7
Percentage of annual base rent for expiring leases	7.00%
2026
RENTAL INCOME
Annual base rent for expiring leases | $	$ 361,731
Total square feet for expiring leases | ft²	14,221
Total number of leases expiring | item	8
Percentage of annual base rent for expiring leases	10.00%
2027
RENTAL INCOME
Annual base rent for expiring leases | $	$ 309,189
Total square feet for expiring leases | ft²	8,884
Total number of leases expiring | item	5
Percentage of annual base rent for expiring leases	9.00%
2028
RENTAL INCOME
Annual base rent for expiring leases | $	$ 251,316
Total square feet for expiring leases | ft²	6,929
Total number of leases expiring | item	2
Percentage of annual base rent for expiring leases	7.00%
2029
RENTAL INCOME
Annual base rent for expiring leases | $	$ 433,890
Total square feet for expiring leases | ft²	15,138
Total number of leases expiring | item	3
Percentage of annual base rent for expiring leases	12.00%
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	40.00%

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RENTAL INCOME (Rent Receivable) (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
RENTAL INCOME.
Allowance for doubtful rent receivable	$ 1,195,000	$ 1,007,000
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis	$ 417,000

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CASH FLOW INFORMATION (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($)
CASH FLOW INFORMATION
Interest Paid	$ 15,356,000	$ 14,425,000	$ 13,298,000
Cash paid for state income taxes	66,000	65,000	$ 117,000
Non-cash financing activities in connection with refinancing	$ 43,000,000	$ 65,000,000
Number of properties involved in non cash activities | property	5	11

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FAIR VALUE MEASUREMENTS (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Nov. 30, 2021
FAIR VALUE MEASUREMENTS
Line of credit		$ 0		$ 0
Liabilities
Carrying Amount	$ 408,660,292	410,966,199
Carrying Amount
Assets
Cash equivalents		49,560,723	$ 18,230,463
Treasury bills		88,905,616	84,700,751
Assets , Fair value		138,466,339	102,931,214
Liabilities
Carrying Amount		577,057,167	574,629,773
Estimated Fair Value
Assets
Cash equivalents		49,560,723	18,230,463
Treasury bills		88,908,540	84,799,638
Assets , Fair value		138,469,263	103,030,101
Liabilities
Estimated Fair Value		509,339,582	515,373,301
Facility Agreement
FAIR VALUE MEASUREMENTS
Line of credit					$ 89,000,000
Wholly owned properties | Carrying Amount
Liabilities
Carrying Amount		410,966,199	408,660,292
Wholly owned properties | Estimated Fair Value
Liabilities
Estimated Fair Value		355,629,060	359,092,343
Partially owned properties | Carrying Amount
Liabilities
Carrying Amount		166,090,968	165,969,481
Partially owned properties | Estimated Fair Value
Liabilities
Estimated Fair Value		$ 153,710,522	$ 156,280,958

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DERIVATIVE FINANCIAL INSTRUMENTS (Details)	Dec. 31, 2023 USD ($) item
DERIVATIVE FINANCIAL INSTRUMENTS
Expected decrease to interest expense	$ 111,000
Interest Rate Cap | Designated as Hedging Instrument | Cash Flow Hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Number of interest rate derivatives held | item	1
Notional amount	$ 236,000

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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 ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Asset Derivatives designated as hedging instruments	$ 294,931		$ 236,377
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 ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
DERIVATIVE FINANCIAL INSTRUMENTS
Net unrealized (loss) gain on derivative instruments for interest rate swaps	$ (58,554)	$ 294,931	$ 0
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Net unrealized (loss) gain on derivative instruments for interest rate swaps	$ (58,554)	$ 294,931
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration]	Investment Income, Interest	Investment Income, Interest	Investment Income, Interest
Total Amount of Interest Expense presented in the consolidated statements of operations	$ (15,723,733)	$ (15,045,477)	$ (13,629,463)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Expense	Interest Expense

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TAXABLE INCOME AND TAX BASIS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
TAXABLE INCOME AND TAX BASIS
Taxable net income	$ 9,989,000	$ 10,968,000	$ 4,056,000
Excess amount of statement income over taxable income	1,535,000
Excess amount of cumulative statement basis over cumulative taxable basis	8,000,000
Excess amount of statement income from joint venture investments over taxable income	6,000,000
Reconciliation of GAAP net income to taxable income
Book/Tax differences from depreciation and amortization	(2,300,000)	4,160,000	5,673,000
Book/Tax differences from Investment Properties	(351,000)	(1,258,000)	87,000
Increase (Decrease) in prepaid rent and allowances	732,000	554,000	(46,000)
Other items	$ 2,752,000	$ 1,273,000	$ 1,216,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) - item	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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%	40.00%
NERA 50%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	50.00%	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
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)					12 Months Ended
	Jun. 16, 2022 USD ($)	Nov. 30, 2021 USD ($)	May 31, 2018 USD ($)	Oct. 28, 2009 USD ($) item	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Jun. 15, 2022 USD ($)	Nov. 29, 2021 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 1,441,291	$ 1,437,387				$ 2,352,000
Loan amount	$ 80,284,000	$ 156,000,000						$ 37,065,000	$ 65,305,000
Outstanding amount of mortgage					408,660,292	410,966,199
Distribution to the Partnership					$ 9,954,888	$ 9,267,981	$ 4,673,140
Defeasance cost	$ 834,544	$ 2,745,979
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units				409	409	409	409
Purchase price of real estate properties				$ 129,500,000
Outstanding amount of mortgage			$ 82,000,000		$ 124,714,582	$ 124,649,959	$ 124,585,336
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					$ 99,549	$ 92,680	$ 46,731
General Partnership | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership			$ 16,500,000
Carrying value			$ 0
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 15,925,000
Ownership interest (as a percent)				40.00%
Residential buildings | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					409	409	409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details)							12 Months Ended
	May 31, 2018 USD ($)	Sep. 12, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 28, 2015 USD ($)	Oct. 28, 2009 USD ($) item	Mar. 07, 2005 USD ($) item	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Jun. 16, 2022 USD ($)	Jun. 15, 2022 USD ($)	Nov. 30, 2021 USD ($)	Nov. 29, 2021 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture							$ 1,441,291	$ 1,437,387						$ 2,352,000
Repayment of loan		$ 5,158,000
Mortgage amount										$ 80,284,000	$ 37,065,000	$ 156,000,000	$ 65,305,000
Distribution to the Partnership							9,954,888	9,267,981	$ 4,673,140
Mortgage Notes Payable							$ 408,660,292	$ 410,966,199
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units					409		409	409	409
Purchase price of real estate properties					$ 129,500,000
Distribution to the Partnership	$ 41,200,000
Mortgage Notes Payable	$ 82,000,000						$ 124,714,582	$ 124,649,959	$ 124,585,336
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units						48	49	49	49
Number of properties in which borrowing amount collateralized | item						1
Purchase price of real estate properties						$ 14,300,000
Capacity of real estate property (in cars per lot) | item						50
Capital contributions				$ 100,000
Distribution to the Partnership			$ 978,193
Mortgage Notes Payable							$ 9,975,869	$ 9,962,080	$ 9,948,291
Hamilton Essex 81 | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Carrying value			$ 0
Hamilton Essex 81 | LIBOR [Member]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Basis of interest rate			one month LIBOR
Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property							1	1	1
Repayment of loan				1,952,286
Capital contributions				$ 978,193
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture						$ 2,000,000
Ownership interest (as a percent)						50.00%
Residential buildings | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property							409	409	409
Residential buildings | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property							48	48	48
Commercial
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of properties in which borrowing amount collateralized | property							2
Commercial | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property							1	1	1
Commercial | Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property							1	1	1
Mortgages payable | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)							4.95%
Mortgages payable | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Mortgage amount					$ 89,914,000
Interest rate (as a percent)					5.57%
Mortgages payable | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Mortgage amount			$ 10,000,000
Term of debt			10 years
Mortgage Notes Payable							$ 10,000,000
Borrowings						$ 10,750,000
Mortgages payable | Hamilton Essex 81 | LIBOR [Member]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Margin over basis of interest rate (as a percent)			2.18%
Mortgages payable | Hamilton Essex Development, LLC and Hamilton Essex 81, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan			$ 8,040,719

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton 1025) (Details)	Jul. 08, 2016 USD ($)	Mar. 02, 2005 USD ($) item	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 property
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 2,352,000	$ 1,441,291	$ 1,437,387
Outstanding amount of mortgage			$ 408,660,292	$ 410,966,199
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units		176	176	176	176
Number of units sold | item		127
Unsold units | property					175
Number of units retained for long-term investment		49	(1)	(1)	(1)
Capital contributions	$ 2,359,500
Term of debt		10 years
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
Ownership interest (as a percent)		50.00%
Purchase price of investments		$ 23,750,000
Residential buildings | Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			175	175	175

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details)			1 Months Ended		12 Months Ended
	Sep. 12, 2016 USD ($)	Sep. 30, 2004 USD ($) item	Jan. 31, 2007 USD ($)	Oct. 31, 2004 USD ($)	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Jun. 16, 2022 USD ($)	Jun. 15, 2022 USD ($)	Nov. 30, 2021 USD ($)	Nov. 29, 2021 USD ($)	Dec. 31, 2006 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 1,441,291	$ 1,437,387							$ 2,352,000
Distribution to the Partnership					9,954,888	9,267,981	$ 4,673,140
Mortgage amount								$ 80,284,000	$ 37,065,000	$ 156,000,000	$ 65,305,000
Amount of mortgage paid off	$ 5,158,000
Refinancing costs					2,779,000
Outstanding amount of mortgage					$ 408,660,292	$ 410,966,199
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units		42			42	42	42
Purchase price of real estate properties		$ 10,100,000
Distribution to the Partnership	385,000			$ 3,775,000
Mortgage amount	$ 6,000,000				$ 6,000,000
Term of debt	15 years			10 years
Refinancing costs	$ 123,000				63,081
Interest rate (as a percent)	3.71%
Cash contribution by the entity towards loan												$ 1,250,000
Outstanding amount of mortgage					$ 5,936,919	$ 5,928,736	$ 5,920,552
Hamilton Minuteman | Mortgage, October 2004
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Mortgage amount			$ 5,500,000	$ 8,025,000
Hamilton Minuteman | Mortgage, 5.67%, January 2007
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
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	42

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details)				1 Months Ended	12 Months Ended
	Aug. 23, 2023 USD ($)	Sep. 12, 2016 USD ($)	Aug. 31, 2004 USD ($) item	Aug. 31, 2014 USD ($)	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Dec. 31, 2005 USD ($) item	Jun. 16, 2022 USD ($)	Jun. 15, 2022 USD ($)	Nov. 30, 2021 USD ($)	Nov. 29, 2021 USD ($)	Mar. 02, 2005 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 1,441,291	$ 1,437,387							$ 2,352,000
Mortgage amount									$ 80,284,000	$ 37,065,000	$ 156,000,000	$ 65,305,000
Outstanding amount of mortgage					408,660,292	410,966,199
Repayment of loan		$ 5,158,000
Distribution to the Partnership					$ 9,954,888	$ 9,267,981	$ 4,673,140
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					148	148	148
Outstanding amount of mortgage					$ 16,889,299	$ 16,873,248	$ 16,857,197
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Cost associated with loan extension	$ 107,000
Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 8,000,000
Ownership interest (as a percent)	50.00%		50.00%
Purchase price of real estate properties			$ 56,000,000
Number of units | item			280
Number of units sold | item			137
Term of debt								10 years
Number of buildings | item								3
Mortgage amount	$ 16,900,000
Outstanding amount of mortgage					$ 16,900,000
Period for which the entity is required to make interest only payments								3 years
Distribution to the Partnership				$ 850,000
Carrying value						$ 0
Hamilton on Main Apartments, LLC | Mortgage, 5.18%, 2005
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Mortgage amount								$ 16,825,000
Interest rate (as a percent)								5.18%
Amortization period of debt								30 years
Term excluding period for which interest only payments to be made								7 years
Net proceeds after funding escrow accounts and closing costs								$ 16,700,000
Repayment of loan				$ 15,205,000
Hamilton on Main Apartments, LLC | Mortgage, 4.34%, August 2014
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt				10 years
Mortgage amount				$ 16,900,000
Interest rate (as a percent)				4.34%
Closing Costs				$ 161,000
NERA 50%
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)					50.00%	50.00%	50.00%
Residential buildings | Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					148	148	148

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (345 Franklin) (Details)		1 Months Ended	12 Months Ended
	Sep. 12, 2016 USD ($)	Jun. 30, 2013 USD ($)	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Jun. 16, 2022 USD ($)	Jun. 15, 2022 USD ($)	Nov. 30, 2021 USD ($)	Nov. 29, 2021 USD ($)	Mar. 02, 2005 USD ($)	Nov. 30, 2001 USD ($) item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,441,291	$ 1,437,387						$ 2,352,000
Mortgage amount						$ 80,284,000	$ 37,065,000	$ 156,000,000	$ 65,305,000
Repayment of loan	$ 5,158,000
Distribution to the Partnership			9,954,888	9,267,981	$ 4,673,140
Outstanding amount of mortgage			$ 408,660,292	$ 410,966,199
Maximum | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)			4.95%
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture											$ 1,533,000
Ownership interest (as a percent)											50.00%
Number of units | item											40
Distribution to the Partnership		$ 1,610,000
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)		3.87%
Borrowings		$ 10,000,000
345 Franklin | Mortgage, 3.87%, June 2013
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		15 years
Outstanding amount of mortgage			$ 8,483,000
345 Franklin | Mortgage, 3.87%, June 2013 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Period for which the entity is required to make interest only payments		3 years
Amortization period of debt		30 years
345 Franklin | Mortgage, Paid off June 2013 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan		$ 6,776,000
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			40	40	40
Outstanding amount of mortgage			$ 8,452,812	$ 8,676,945	$ 8,892,331
345 Franklin | Residential buildings
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			40	40	40

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details)	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($)	May 31, 2018 USD ($)	Oct. 28, 2009 item	Mar. 07, 2005 item	Mar. 02, 2005 item	Sep. 30, 2004 item
ASSETS
Rental Properties	$ 269,804,946	$ 241,076,431
Cash & Cash Equivalents	18,230,463	49,560,723
Rent Receivable	953,761	655,814
Real Estate Tax Escrows	2,229,703	1,943,680
Prepaid Expenses & Other Assets	8,369,775	8,240,629
Total Assets	385,730,690	391,820,280
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	408,660,292	410,966,199
Accounts Payable & Accrued Expense	5,720,088	7,271,729
Advance Rental Pmts & Security Deposits	9,996,887	9,032,580
Total Liabilities	451,085,074	451,689,637
Partners' Capital	(65,354,384)	(59,869,357)	$ (49,292,608)	$ (41,469,045)
Total Liabilities and Partners' Capital	385,730,690	391,820,280
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	(26,707,807)	(24,419,129)
Investment Properties
ASSETS
Rental Properties	102,406,871	107,135,557	111,783,510
Cash & Cash Equivalents	4,678,735	7,055,942	3,391,632
Rent Receivable	433,138	403,902	537,327
Real Estate Tax Escrows	276,474	267,947	252,689
Prepaid Expenses & Other Assets	3,211,400	2,988,297	2,789,752
Total Assets	111,006,618	117,851,645	118,754,910
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	165,969,481	166,090,968	166,203,707
Accounts Payable & Accrued Expense	1,359,083	3,047,643	1,033,689
Advance Rental Pmts & Security Deposits	4,370,346	4,165,573	3,525,469
Total Liabilities	171,698,910	173,304,184	170,762,865
Partners' Capital	(60,692,292)	(55,452,539)	(52,007,955)
Total Liabilities and Partners' Capital	111,006,618	117,851,645	118,754,910
Investment in Unconsolidated Joint Ventures	1,441,291	1,437,387	1,455,888
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	(26,707,807)	(24,419,129)	(22,992,420)
Total Investment in Unconsolidated Joint Ventures (Net)	$ (25,266,517)	$ (22,981,742)	$ (21,536,532)
Total units/ condominiums
Total | property	690	865	865
Units to be retained | property	690	690	690
Total number of units sold | property	175	175
Investment Properties | Residential buildings
Total units/ condominiums
Total | property	687	862	862
Investment Properties | Commercial
Total units/ condominiums
Total | property	3	3	3
Hamilton Essex 81
ASSETS
Rental Properties	$ 5,403,706	$ 5,829,640	$ 6,263,331
Cash & Cash Equivalents	1,141,751	985,849	333,699
Rent Receivable	208,968	202,221	232,521
Real Estate Tax Escrows	75,475	74,423	76,651
Prepaid Expenses & Other Assets	320,627	321,912	301,043
Total Assets	7,150,527	7,414,045	7,207,245
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	9,975,869	9,962,080	9,948,291
Accounts Payable & Accrued Expense	141,743	165,576	68,265
Advance Rental Pmts & Security Deposits	337,593	310,443	180,497
Total Liabilities	10,455,205	10,438,099	10,197,053
Partners' Capital	(3,304,678)	(3,024,054)	(2,989,808)
Total Liabilities and Partners' Capital	$ 7,150,527	$ 7,414,045	$ 7,207,245
Partners' Capital %-NERA	50.00%	50.00%	50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,652,340)	$ (1,512,027)	$ (1,494,905)
Total units/ condominiums
Total	49	49	49				48
Units to be retained | property	49	49	49
Hamilton Essex 81 | Residential buildings
Total units/ condominiums
Total | property	48	48	48
Hamilton Essex 81 | Commercial
Total units/ condominiums
Total | property	1	1	1
Hamilton Essex Development
ASSETS
Rental Properties	$ 2,583,190	$ 2,585,680	$ 2,588,169
Cash & Cash Equivalents	108,348	110,907	98,674
Rent Receivable	78,753	78,436	68,828
Prepaid Expenses & Other Assets	44,182	53,316	62,399
Total Assets	2,814,473	2,828,339	2,818,070
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable & Accrued Expense	3,000	43,000	3,000
Advance Rental Pmts & Security Deposits	20,660
Total Liabilities	23,660	43,000	3,000
Partners' Capital	2,790,813	2,785,339	2,815,070
Total Liabilities and Partners' Capital	$ 2,814,473	$ 2,828,339	$ 2,818,070
Partners' Capital %-NERA	50.00%	50.00%	50.00%
Investment in Unconsolidated Joint Ventures	$ 1,395,406	$ 1,392,669	$ 1,407,535
Total units/ condominiums
Total | property	1	1	1
Units to be retained | property	1	1	1
Hamilton Essex Development | Commercial
Total units/ condominiums
Total | property	1	1	1
345 Franklin
ASSETS
Rental Properties	$ 4,481,606	$ 4,810,934	$ 5,062,602
Cash & Cash Equivalents	155,557	358,016	155,627
Rent Receivable	117		9,905
Real Estate Tax Escrows	29,290	27,771	29,999
Prepaid Expenses & Other Assets	73,604	111,018	117,197
Total Assets	4,740,174	5,307,739	5,375,330
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	8,452,812	8,676,945	8,892,331
Accounts Payable & Accrued Expense	64,335	84,025	52,392
Advance Rental Pmts & Security Deposits	304,499	269,326	228,803
Total Liabilities	8,821,646	9,030,296	9,173,526
Partners' Capital	(4,081,472)	(3,722,557)	(3,798,196)
Total Liabilities and Partners' Capital	$ 4,740,174	$ 5,307,739	$ 5,375,330
Partners' Capital %-NERA	50.00%	50.00%	50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (2,040,737)	$ (1,861,278)	$ (1,899,098)
Total units/ condominiums
Total | property	40	40	40
Units to be retained | property	40	40	40
345 Franklin | Residential buildings
Total units/ condominiums
Total | property	40	40	40
Hamilton 1025
ASSETS
Rental Properties	$ 75,027	$ 78,291	$ 81,555
Cash & Cash Equivalents	16,339	29,065	11,845
Rent Receivable	4,120	4,915	6,111
Prepaid Expenses & Other Assets	505	493	446
Total Assets	95,991	112,764	99,957
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable & Accrued Expense	3,486	23,329	3,251
Advance Rental Pmts & Security Deposits	735
Total Liabilities	4,221	23,329	3,251
Partners' Capital	91,770	89,435	96,706
Total Liabilities and Partners' Capital	$ 95,991	$ 112,764	$ 99,957
Partners' Capital %-NERA	50.00%	50.00%	50.00%
Investment in Unconsolidated Joint Ventures	$ 45,885	$ 44,718	$ 48,353
Total units/ condominiums
Total	176	176	176					176
Units to be retained	1	1	1					(49)
Total number of units sold | property	175	175
Unsold units | property			175
Hamilton 1025 | Residential buildings
Total units/ condominiums
Total | property	175	175	175
Hamilton 1025 | Commercial
Total units/ condominiums
Total | property	1	1	1
Hamilton Minuteman
ASSETS
Rental Properties	$ 4,190,275	$ 4,467,772	$ 4,697,616
Cash & Cash Equivalents	148,334	328,742	156,058
Rent Receivable	2,957	2,600	6,999
Real Estate Tax Escrows	34,998	34,842	36,451
Prepaid Expenses & Other Assets	50,327	26,238	24,009
Total Assets	4,426,891	4,860,194	4,921,133
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	5,936,919	5,928,736	5,920,552
Accounts Payable & Accrued Expense	50,990	162,623	48,145
Advance Rental Pmts & Security Deposits	173,222	171,680	159,324
Total Liabilities	6,161,131	6,263,039	6,128,021
Partners' Capital	(1,734,240)	(1,402,845)	(1,206,888)
Total Liabilities and Partners' Capital	$ 4,426,891	$ 4,860,194	$ 4,921,133
Partners' Capital %-NERA	50.00%	50.00%	50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (867,121)	$ (701,422)	$ (603,445)
Total units/ condominiums
Total	42	42	42						42
Units to be retained | property	42	42	42
Hamilton Minuteman | Residential buildings
Total units/ condominiums
Total | property	42	42	42
Hamilton on Main Apts
ASSETS
Rental Properties	$ 12,493,492	$ 13,456,133	$ 14,334,539
Cash & Cash Equivalents	1,204,116	1,377,250	565,171
Rent Receivable	22,319	9,565	37,750
Real Estate Tax Escrows	136,711	130,911	109,588
Prepaid Expenses & Other Assets	227,421	186,990	181,941
Total Assets	14,084,059	15,160,849	15,228,989
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	16,889,299	16,873,248	16,857,197
Accounts Payable & Accrued Expense	352,780	556,239	188,012
Advance Rental Pmts & Security Deposits	500,103	463,963	434,126
Total Liabilities	17,742,182	17,893,450	17,479,335
Partners' Capital	(3,658,123)	(2,732,601)	(2,250,346)
Total Liabilities and Partners' Capital	$ 14,084,059	$ 15,160,849	$ 15,228,989
Partners' Capital %-NERA	50.00%	50.00%	50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (1,829,063)	$ (1,366,300)	$ (1,125,174)
Total units/ condominiums
Total | property	148	148	148
Units to be retained | property	148	148	148
Hamilton on Main Apts | Residential buildings
Total units/ condominiums
Total | property	148	148	148
Dexter Park
ASSETS
Rental Properties	$ 73,179,575	$ 75,907,107	$ 78,755,698
Cash & Cash Equivalents	1,904,290	3,866,113	2,070,558
Rent Receivable	115,904	106,165	175,213
Prepaid Expenses & Other Assets	2,494,734	2,288,330	2,102,717
Total Assets	77,694,503	82,167,715	83,104,186
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	124,714,582	124,649,959	124,585,336		$ 82,000,000
Accounts Payable & Accrued Expense	742,749	2,012,851	670,624
Advance Rental Pmts & Security Deposits	3,033,534	2,950,161	2,522,719
Total Liabilities	128,490,865	129,612,971	127,778,679
Partners' Capital	(50,796,362)	(47,445,256)	(44,674,493)
Total Liabilities and Partners' Capital	$ 77,694,503	$ 82,167,715	$ 83,104,186
Partners' Capital %-NERA	40.00%	40.00%	40.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$ (20,318,546)	$ (18,978,102)	$ (17,869,797)
Total units/ condominiums
Total	409	409	409			409
Units to be retained | property	409	409	409
Dexter Park | Residential buildings
Total units/ condominiums
Total | property	409	409	409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	May 31, 2018
Revenues
Rental Income									$ 73,892,393	$ 67,560,662	$ 62,175,592
Laundry and Sundry Income									588,975	733,064	462,862
Total Revenues	$ 19,727,004	$ 18,961,642	$ 18,101,036	$ 17,691,686	$ 17,703,006	$ 17,078,383	$ 16,931,928	$ 16,580,409	74,481,368	68,293,726	62,638,454
Expenses
Administrative									2,900,432	2,731,284	2,476,593
Depreciation and Amortization									16,773,045	16,373,429	16,671,076
Expenses for construction, architectural services and supervision of capital projects									7,748,910	7,324,692	6,471,250
Renting									1,004,666	639,235	1,241,298
Repairs and Maintenance									13,366,079	11,270,589	10,069,325
Taxes and Insurance									9,954,214	9,149,837	8,942,469
Total Expenses									55,666,521	50,205,580	48,395,954
Income Before Other Income (Expense)	4,725,871	4,899,261	4,738,350	4,451,365	5,139,477	4,560,797	4,610,922	3,776,950	18,814,847	18,088,146	14,242,500
Other Income (Loss)
Interest expense									(15,723,733)	(15,045,477)	(13,629,463)
Other income (expenses)										(874,517)	(2,745,979)
Interest income									4,486,603	1,055,338	87
Total Other Income (Expense)	(2,426,126)	(2,724,035)	(2,513,746)	(2,696,990)	(2,996,831)	(3,565,573)	(4,367,937)	(3,434,532)	(10,360,897)	(14,364,873)	(16,942,663)
Net Income (Loss)	2,299,745	$ 2,175,226	$ 2,224,604	$ 1,754,375	2,142,646	$ 995,224	$ 242,985	$ 342,418	8,453,950	3,723,273	(2,700,163)
Mortgage Notes Payable	408,660,292				410,966,199				408,660,292	410,966,199
Investment Properties
Revenues
Rental Income									25,556,720	23,550,304	20,837,208
Laundry and Sundry Income									164,319	231,093	154,646
Total Revenues									25,721,039	23,781,397	20,991,854
Expenses
Administrative									432,128	364,839	403,509
Depreciation and Amortization									5,922,564	6,028,686	6,016,613
Management Fees									699,067	662,035	575,162
Expenses for construction, architectural services and supervision of capital projects									2,213,893	2,004,434	1,781,069
Renting									282,165	210,499	711,979
Repairs and Maintenance									2,951,720	2,801,051	2,849,104
Taxes and Insurance									3,858,813	3,700,391	3,539,050
Total Expenses									16,360,350	15,771,935	15,876,486
Income Before Other Income (Expense)									9,360,689	8,009,462	5,115,368
Other Income (Loss)
Interest expense									(7,149,981)	(6,842,685)	(6,658,595)
Other income (expenses)									(213,240)	(81,360)
Interest income									30,788		1,222
Total Other Income (Expense)									(7,332,433)	(6,924,045)	(6,657,373)
Net Income (Loss)									2,028,256	1,085,417	(1,542,005)
Proportionate share of net income (loss)									876,233	499,783	(567,308)
Mortgage Notes Payable	165,969,481				166,090,968				165,969,481	166,090,968	166,203,707
Investment Properties | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									324,677	328,088	247,478
Investment Properties | NERA 40%
Other Income (Loss)
Proportionate share of net income (loss)									551,556	171,695	(814,786)
Hamilton Essex 81
Revenues
Rental Income									1,831,196	1,640,480	1,609,397
Laundry and Sundry Income									3,691	17,652	12,761
Total Revenues									1,834,887	1,658,132	1,622,158
Expenses
Administrative									20,455	19,543	76,338
Depreciation and Amortization									470,253	478,538	479,512
Management Fees									72,806	75,216	52,617
Expenses for construction, architectural services and supervision of capital projects									284,173	229,528	168,160
Renting									61,559	25,926	101,328
Repairs and Maintenance									178,816	185,275	159,593
Taxes and Insurance									281,346	266,024	261,145
Total Expenses									1,369,408	1,280,050	1,298,693
Income Before Other Income (Expense)									465,479	378,082	323,465
Other Income (Loss)
Interest expense									(752,933)	(412,329)	(246,339)
Interest income									6,830
Total Other Income (Expense)									(746,103)	(412,329)	(246,339)
Net Income (Loss)									(280,624)	(34,247)	77,126
Mortgage Notes Payable	9,975,869				9,962,080				9,975,869	9,962,080	9,948,291
Hamilton Essex 81 | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									(140,312)	(17,124)	38,563
Hamilton Essex Development
Revenues
Rental Income									241,884	296,313	391,878
Total Revenues									241,884	296,313	391,878
Expenses
Administrative									3,020	6,548	2,875
Depreciation and Amortization									11,709	11,709	20,298
Management Fees									10,489	11,468	12,922
Repairs and Maintenance										3,180	520
Taxes and Insurance									61,557	63,139	60,764
Total Expenses									86,775	96,044	97,379
Income Before Other Income (Expense)									155,109	200,269	294,499
Other Income (Loss)
Interest income									375
Total Other Income (Expense)									375
Net Income (Loss)									155,484	200,269	294,499
Hamilton Essex Development | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									77,741	100,134	147,249
345 Franklin
Revenues
Rental Income									1,709,429	1,516,329	1,360,472
Laundry and Sundry Income									115	245	1,494
Total Revenues									1,709,544	1,516,574	1,361,966
Expenses
Administrative									30,349	33,656	31,566
Depreciation and Amortization									346,856	346,793	343,834
Management Fees									67,116	59,715	54,178
Expenses for construction, architectural services and supervision of capital projects									89,139	76,108	58,667
Renting									52,686	32,332	54,672
Repairs and Maintenance									150,845	184,057	129,548
Taxes and Insurance									193,215	182,098	175,183
Total Expenses									930,206	914,759	847,648
Income Before Other Income (Expense)									779,338	601,815	514,318
Other Income (Loss)
Interest expense									(344,847)	(351,175)	(359,036)
Interest income									1,593
Total Other Income (Expense)									(343,254)	(351,175)	(359,036)
Net Income (Loss)									436,084	250,640	155,282
Mortgage Notes Payable	8,452,812				8,676,945				8,452,812	8,676,945	8,892,331
345 Franklin | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									218,041	125,319	77,641
Hamilton 1025
Revenues
Rental Income									98,734	102,802	98,135
Total Revenues									98,734	102,802	98,135
Expenses
Administrative									3,300	2,793	2,812
Depreciation and Amortization									3,264	3,264	3,264
Management Fees									4,011	4,160	3,801
Expenses for construction, architectural services and supervision of capital projects									807	1,344	334
Renting									13
Taxes and Insurance									17,165	18,513	19,467
Total Expenses									28,560	30,074	29,678
Income Before Other Income (Expense)									70,174	72,728	68,457
Other Income (Loss)
Interest income									161
Total Other Income (Expense)									161
Net Income (Loss)									70,335	72,729	68,458
Hamilton 1025 | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									35,167	36,365	34,229
Hamilton Minuteman
Revenues
Rental Income									1,334,398	1,212,854	1,139,865
Laundry and Sundry Income									(148)		3,913
Total Revenues									1,334,250	1,212,854	1,143,778
Expenses
Administrative									20,021	14,579	16,450
Depreciation and Amortization									339,605	338,919	338,362
Management Fees									53,347	48,548	45,541
Expenses for construction, architectural services and supervision of capital projects									105,254	129,232	98,115
Renting									5,801	9,873	4,419
Repairs and Maintenance									94,262	106,689	120,626
Taxes and Insurance									147,197	153,117	144,533
Total Expenses									765,487	800,957	768,046
Income Before Other Income (Expense)									568,763	411,897	375,732
Other Income (Loss)
Interest expense									(237,749)	(237,851)	(237,845)
Interest income									2,592
Total Other Income (Expense)									(235,157)	(237,851)	(237,845)
Net Income (Loss)									333,606	174,046	137,887
Mortgage Notes Payable	5,936,919				5,928,736				5,936,919	5,928,736	5,920,552
Hamilton Minuteman | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									166,802	87,023	68,944
Hamilton on Main Apts
Revenues
Rental Income									3,879,734	3,644,802	3,370,478
Laundry and Sundry Income									23,163	77,589	38,697
Total Revenues									3,902,897	3,722,391	3,409,175
Expenses
Administrative									92,589	68,948	68,008
Depreciation and Amortization									1,065,353	1,081,096	1,089,225
Management Fees									152,943	146,115	131,221
Expenses for construction, architectural services and supervision of capital projects									455,086	400,489	432,061
Renting									54,856	51,327	90,842
Repairs and Maintenance									625,687	626,909	624,475
Taxes and Insurance									527,665	513,699	451,937
Total Expenses									2,974,179	2,888,583	2,887,769
Income Before Other Income (Expense)									928,718	833,808	521,406
Other Income (Loss)
Interest expense									(788,376)	(759,704)	(759,698)
Other income (expenses)									(213,240)	(81,360)
Interest income									7,376
Total Other Income (Expense)									(994,240)	(841,064)	(759,698)
Net Income (Loss)									(65,522)	(7,256)	(238,292)
Mortgage Notes Payable	16,889,299				16,873,248				16,889,299	16,873,248	16,857,197
Hamilton on Main Apts | NERA 50%
Other Income (Loss)
Proportionate share of net income (loss)									(32,762)	(3,629)	(119,147)
Dexter Park
Revenues
Rental Income									16,461,345	15,136,724	12,866,983
Laundry and Sundry Income									137,498	135,607	97,781
Total Revenues									16,598,843	15,272,331	12,964,764
Expenses
Administrative									262,394	218,772	205,460
Depreciation and Amortization									3,685,524	3,768,367	3,742,118
Management Fees									338,355	316,813	274,882
Expenses for construction, architectural services and supervision of capital projects									1,279,434	1,167,733	1,023,732
Renting									107,250	91,041	460,718
Repairs and Maintenance									1,902,110	1,694,941	1,814,342
Taxes and Insurance									2,630,668	2,503,801	2,426,021
Total Expenses									10,205,735	9,761,468	9,947,273
Income Before Other Income (Expense)									6,393,108	5,510,863	3,017,491
Other Income (Loss)
Interest expense									(5,026,076)	(5,081,626)	(5,055,677)
Interest income									11,861		1,222
Total Other Income (Expense)									(5,014,215)	(5,081,626)	(5,054,455)
Net Income (Loss)									1,378,893	429,237	(2,036,964)
Mortgage Notes Payable	$ 124,714,582				$ 124,649,959				124,714,582	124,649,959	124,585,336	$ 82,000,000
Dexter Park | NERA 40%
Other Income (Loss)
Proportionate share of net income (loss)									$ 551,556	$ 171,695	$ (814,786)
NERA 50%
Other Income (Loss)
Ownership interest (as a percent)	50.00%				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%	40.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	May 31, 2018	Sep. 12, 2016
Annual maturities of mortgage debt
2024	$ 2,853,000
2025	3,602,000
2026	25,112,000
2027	23,271,000
2028	31,875,000
Thereafter	324,726,000
Total	411,439,000
Less: unamortized deferred financing costs	(2,779,000)
Secured Debt	$ 408,660,292	$ 410,966,199
Weighted average interest rate (as a percent)	4.23%
Effective interest rate (as a percent)	4.29%
Investment Properties
Annual maturities of mortgage debt
2024	$ 17,139,883
2025	10,249,333
2026	259,155
2027	269,365
2028	132,465,039
Thereafter	6,000,000
Total	166,382,775
Less: unamortized deferred financing costs	(413,294)
Secured Debt	165,969,481	166,090,968	$ 166,203,707
Hamilton Essex 81
Annual maturities of mortgage debt
2025	10,000,000
Total	10,000,000
Less: unamortized deferred financing costs	(24,131)
Secured Debt	9,975,869	9,962,080	9,948,291
345 Franklin
Annual maturities of mortgage debt
2024	239,883
2025	249,333
2026	259,155
2027	269,365
2028	7,465,039
Total	8,482,775
Less: unamortized deferred financing costs	(29,963)
Secured Debt	8,452,812	8,676,945	8,892,331
Hamilton Minuteman
Annual maturities of mortgage debt
Thereafter	6,000,000
Total	6,000,000
Less: unamortized deferred financing costs	(63,081)				$ (123,000)
Secured Debt	5,936,919	5,928,736	5,920,552
Hamilton on Main Apts
Annual maturities of mortgage debt
2024	16,900,000
Total	16,900,000
Less: unamortized deferred financing costs	(10,701)
Secured Debt	16,889,299	16,873,248	16,857,197
Dexter Park
Annual maturities of mortgage debt
2028	125,000,000
Total	125,000,000
Less: unamortized deferred financing costs	(285,418)
Secured Debt	$ 124,714,582	$ 124,649,959	$ 124,585,336	$ 82,000,000

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EMPLOYEE BENEFIT 401(k) PLANS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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	$ 64,000	$ 85,000	$ 45,000

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QUARTERLY FINANCIAL DATA (UNAUDITED) (Details)	3 Months Ended								12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares $ / item	Sep. 30, 2023 USD ($) $ / shares $ / item	Jun. 30, 2023 USD ($) $ / shares $ / item	Mar. 31, 2023 USD ($) $ / shares $ / item	Dec. 31, 2022 USD ($) $ / shares $ / item	Sep. 30, 2022 USD ($) $ / shares $ / item	Jun. 30, 2022 USD ($) $ / shares $ / item	Mar. 31, 2022 USD ($) $ / shares $ / item	Dec. 31, 2023 USD ($) $ / shares $ / item	Dec. 31, 2022 USD ($) $ / shares $ / item	Dec. 31, 2021 USD ($) $ / shares
QUARTERLY FINANCIAL DATA (UNAUDITED)
Revenue	$ 19,727,004	$ 18,961,642	$ 18,101,036	$ 17,691,686	$ 17,703,006	$ 17,078,383	$ 16,931,928	$ 16,580,409	$ 74,481,368	$ 68,293,726	$ 62,638,454
Expenses	15,001,133	14,062,381	13,362,686	13,240,321	12,563,529	12,517,586	12,321,006	12,803,459	55,666,521	50,205,580
Income Before Other Income (Expense)	4,725,871	4,899,261	4,738,350	4,451,365	5,139,477	4,560,797	4,610,922	3,776,950	18,814,847	18,088,146	14,242,500
Other Expenses	(2,426,126)	(2,724,035)	(2,513,746)	(2,696,990)	(2,996,831)	(3,565,573)	(4,367,937)	(3,434,532)	(10,360,897)	(14,364,873)	(16,942,663)
Net Income (Loss)	$ 2,299,745	$ 2,175,226	$ 2,224,604	$ 1,754,375	$ 2,142,646	$ 995,224	$ 242,985	$ 342,418	$ 8,453,950	$ 3,723,273	$ (2,700,163)
Net Income (loss) per Unit (in dollars per unit) | $ / shares	$ 19.51	$ 18.38	$ 18.73	$ 14.72	$ 17.83	$ 8.32	$ 2.02	$ 2.82	$ 71.34	$ 30.99	$ (22.19)
Net Income (loss) per Depositary Receipt (in dollars per receipt) | $ / item	0.65	0.61	0.62	0.49	0.59	0.28	0.07	0.09	2.38	1.03

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SUBSEQUENT EVENTS (Details)	1 Months Ended	2 Months Ended	12 Months Ended	196 Months Ended
	Mar. 31, 2024 $ / item	Mar. 14, 2024 shares	Dec. 31, 2023 $ / item shares	Dec. 31, 2023 $ / item shares
Subsequent events
Number of depository receipts repurchased | shares				1,532,234
Repurchase price of depository receipts (in dollars per receipt)				31.72
Class A
Subsequent events
Number of depository receipts repurchased | shares			43,774
Repurchase price of depository receipts (in dollars per receipt)			71.71
Subsequent event
Subsequent events
Number of depository receipts repurchased | shares		2,753
Quarterly distribution (per unit)	12.00
Quarterly distributions per depositary receipt (in dollars per receipt)	0.40
Subsequent event | Class A
Subsequent events
Special distribution per unit (in dollars per unit)	48.00
Special distribution per depository receipt (in dollars per receipt)	1.60

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QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Valuation and Qualifying Accounts
Balance at Beginning of Period	$ 1,007,025	$ 831,576	$ 1,453,695
Additions, Charged to Costs and Expenses	1,462,371	845,551	436,222
Deductions	1,274,685	670,102	1,058,341
Balance at end of Period	$ 1,194,711	$ 1,007,025	$ 831,576

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Pay vs Performance Disclosure - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 2,299,745	$ 2,175,226	$ 2,224,604	$ 1,754,375	$ 2,142,646	$ 995,224	$ 242,985	$ 342,418	$ 8,453,950	$ 3,723,273	$ (2,700,163)

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Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false