10-Q - NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP (0000746514) (Filer)

Fri, Nov 8, 6:11 PM (253 days ago)

For the quarter ended September 30, 2024, New England Realty Associates Limited Partnership (NEN) reported significant improvements in financial performance. Revenue increased by 6.6% to approximately $20.21 million, driven mainly by a 6.5% rise in rental income. Operating expenses decreased by 2.3%, resulting in a 32.1% increase in income before other expenses to $6.47 million. Net income surged 79.7% to $3.91 million, reflecting effective cost management and increased rental rates, with renewals averaging a 5.4% increase. Cash flow from operations was robust at $19.97 million, although cash reserves decreased to $15.07 million primarily due to ongoing investments. The partnership continues to focus on acquiring additional properties, with $86.13 million allocated to short-term U.S. Treasury bills. The partnership's debt remains substantial at approximately $582.23 million, with a significant portion fixed, mitigating interest rate risks. Looking ahead, management anticipates moderate rent growth and ongoing development projects, including the Mill Street project, expected to require $30 million in total investment. Overall, the partnership's financial health appears strong, with a solid outlook despite potential economic uncertainties.