UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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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.
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Securities registered pursuant to Section 12(b) of the Act:
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As of August 8, 2023, there were
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
INDEX
2
NEW ENGLAND REALTY ASSOCIATES, L.P.
PART 1 -- FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying unaudited consolidated balance sheets, statements of income, statements of comprehensive income, changes in partners’ capital, and cash flows and related notes thereto, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. The financial statements reflect all adjustments consisting only of normal, recurring adjustments, which are, in the opinion of management, necessary for a fair presentation for the interim periods.
The consolidated balance sheet as of December 31, 2022, has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
The aforementioned financial statements should be read in conjunction with the notes to the aforementioned financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in New England Realty Associates L.P.’s Annual Report on
Form10-K for the fiscal year ended December 31, 2022.
The results of operations for the six month period ended June 30, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year or any other period.
3
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, | December 31, | |||||||
| 2023 |
| 2022 |
|
| |||
ASSETS | (Unaudited) | |||||||
Rental Properties | $ | | $ | | ||||
Cash and Cash Equivalents |
| |
| | ||||
Rents Receivable |
| |
| | ||||
Real Estate Tax Escrows |
| |
| | ||||
Investment in U.S. Treasury Bills | | | ||||||
Prepaid Expenses and Other Assets |
| |
| | ||||
Investments in Unconsolidated Joint Ventures |
| |
| | ||||
Total Assets | $ | | $ | | ||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
Mortgage Notes Payable | | | ||||||
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture |
| |
| | ||||
Accounts Payable and Accrued Expenses |
| |
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Advance Rental Payments and Security Deposits |
| |
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Total Liabilities |
| |
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Commitments and Contingent Liabilities (Notes 3 and 9) |
|
| ||||||
Partners’ Capital |
| ( |
| ( | ||||
Total Liabilities and Partners’ Capital | $ | | $ | | ||||
See notes to consolidated financial statements.
4
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 |
|
| |||||
Revenues | ||||||||||||||
Rental income | $ | | $ | |
| $ | |
| $ | |
| |||
Laundry and sundry income |
| |
| |
| |
| | ||||||
| |
| |
| |
| | |||||||
Expenses | ||||||||||||||
Administrative |
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Depreciation and amortization |
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Management fee |
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Operating |
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Renting |
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Repairs and maintenance |
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Taxes and insurance |
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Income Before Other Income (Expense) |
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Other Income (Expense) | ||||||||||||||
Interest income | | |
| |
| | ||||||||
Interest expense | ( | ( |
| ( |
| ( | ||||||||
Income (loss) from investments in unconsolidated joint ventures | | |
| |
| | ||||||||
Other (expenses) | | ( | | ( | ||||||||||
| ( |
| ( |
| ( |
| ( | |||||||
Net Income | $ | | $ | | $ | | $ | | ||||||
Net Income per Unit | $ | | $ | | $ | $ | ||||||||
Weighted Average Number of Units Outstanding |
| |
| |
| |
| | ||||||
See notes to consolidated financial statements.
5
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended |
| Six Months Ended | ||||||||||
June 30, | June 30, | |||||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 | |||||
Net income | $ | | $ | | $ | | $ | | ||||
Net unrealized gain on derivative instruments for interest rate swaps |
| |
| — |
| |
| — | ||||
Comprehensive income | $ | | $ | | $ | | $ | | ||||
6
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER’S CAPITAL
(Unaudited)
Units | Partner’s Capital |
| ||||||||||||||||||||||||
Limited | General | Treasury | Limited | General | Accumulated |
| ||||||||||||||||||||
| Class A |
| Class B |
| Partnership |
| Subtotal |
| Units |
| Total |
| Class A |
| Class B |
| Partnership | Comprehensive Income |
| Total |
| |||||
Balance January 1, 2022 |
| |
| |
| |
| |
| |
| | $ | ( | ( | ( | — | $ | ( | |||||||
Distribution to Partners |
| — |
| — |
| — |
| — |
| — |
| — |
| ( | ( | ( | — |
| ( | |||||||
Stock Buyback | — |
| — |
| — | — |
| |
| ( |
| ( | ( | ( | — |
| ( | |||||||||
Net Income |
| — |
| — |
| — |
| — |
| — |
| — |
| | | | — |
| | |||||||
Balance June 30 , 2022 |
| |
| |
| |
| |
| |
| | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
— | ||||||||||||||||||||||||||
Balance January 1, 2023 |
| |
| |
| |
| |
| | | $ | ( | $ | ( | $ | ( | | $ | ( | ||||||
Distribution to Partners |
| — |
| — |
| — |
| — |
| — |
| — | ( | ( | ( | — |
| ( | ||||||||
Stock Buyback |
| — |
| — |
| — |
| — |
|
| ( | ( | ( | ( | — |
| ( | |||||||||
Net Income |
| — |
| — |
| — |
| — |
| — |
| — | | | | — |
| | ||||||||
Net unrealized gain on derivative instruments for interest rate swaps | — | — | — | — | — | — | — | — | — | | | |||||||||||||||
Balance June 30, 2023 |
| |
| |
| |
| |
| |
| | $ | ( | ( | ( | | ( | ||||||||
See notes to consolidated financial statements.
7
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30, | ||||||||
| 2023 |
| 2022 |
|
| |||
Cash Flows from Operating Activities | ||||||||
Net Income |
| $ | |
| $ | |
| |
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization |
| |
| | ||||
Amortization of deferred finance costs | | | ||||||
(Income) from investments in joint ventures |
| ( |
| ( | ||||
Change in operating assets and liabilities | ||||||||
Proceeds from unconsolidated joint ventures |
| |
| | ||||
(Increase) Decrease in rents receivable |
| ( |
| | ||||
(Decrease) in accounts payable and accrued expense |
| ( |
| ( | ||||
(Increase) in real estate tax escrow |
| ( |
| ( | ||||
(Increase) in interest receivable U.S. Treasury bills | ( | — | ||||||
(Increase) in prepaid expenses and other assets |
| ( |
| ( | ||||
Increase in advance rental payments and security deposits |
| |
| | ||||
Total Adjustments |
| |
| | ||||
Net cash provided by operating activities |
| |
| | ||||
Cash Flows From Investing Activities | ||||||||
Distribution in excess of investment in unconsolidated joint ventures |
| |
| | ||||
Investment in U.S. Treasury bills | ( | — | ||||||
Proceeds from U.S. Treasury bills | | — | ||||||
Purchase of rental property | ( | — | ||||||
Improvement of rental properties |
| ( |
| ( | ||||
Net cash (used in) investing activities |
| |
| ( | ||||
Cash Flows from Financing Activities | ||||||||
Principal payments of mortgage notes payable |
| ( |
| ( | ||||
Proceeds from Mortgage Notes Payable | — | | ||||||
Stock buyback |
| ( |
| ( | ||||
Distributions to partners |
| ( |
| ( | ||||
Net cash provided by (used in) financing activities |
| ( |
| | ||||
Net Increase in Cash and Cash Equivalents |
| |
| | ||||
Cash and Cash Equivalents, at beginning of period |
| |
| | ||||
Cash and Cash Equivalents, at end of period | $ | | $ | | ||||
See notes to consolidated financial statements.
8
NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2023
(Unaudited)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Line of Business: New England Realty Associates Limited Partnership (“NERA”, the “Company” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own
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
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
The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the
9
variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.
Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.
Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts
Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.
The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.
Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing
10
activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.
Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.
In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.
Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.
Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $
Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly,
Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less at the time of purchase, including its investment in BlackRock Liquidity Treasury Trust Fund, which invests its assets in cash, U.S Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury.
Investments in Treasury Bills: Investments in Treasury Bills are recorded at amortized cost and classified as held to maturity as the Partnership has the intent and the ability to hold them until they mature. The carrying value of the Treasury Bills are adjusted for accretion of discounts over the remaining life of the investment. Income related to the Treasury Bills is recognized in interest income in the Partnership’s consolidated statement of income.
Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as
Other Comprehensive Income (Loss): Other comprehensive income (loss) includes items that are recorded in equity, such as effective portions of derivatives designated as cash flow hedges or unrealized holding gains or losses on marketable securities available for sale. NERA had comprehensive income of approximately for the six months ended June 30, 2023, but had
Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a
11
Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has
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
Advertising Expense: Advertising is expensed as incurred. Advertising expense was approximately $
Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.
Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds
Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However, if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancings qualify as extinguishment of debt.
Reclassification: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.
NOTE 2. RENTAL PROPERTIES
As of June 30, 2023, the Partnership and its Subsidiary Partnerships owned
Additionally, as of June 30, 2023, the Partnership and Subsidiary Partnerships owned
The Partnership also owned a
The Partnership purchased a commercial retail property of approximately
12
value of tenant relationships. The value assigned to in-place leases is being amortized over a
Rental properties consist of the following:
| June 30, 2023 |
| December 31, 2022 |
| Useful Life |
| ||||||
Land, improvements and parking lots | $ | $ | - | years | ||||||||
Buildings and improvements |
|
| - | years | ||||||||
Kitchen cabinets |
|
| - | years | ||||||||
Carpets |
|
| - | years | ||||||||
Air conditioning |
|
| - | years | ||||||||
Laundry equipment |
|
| - | years | ||||||||
Elevators |
|
| - | years | ||||||||
Swimming pools |
|
| - | years | ||||||||
Equipment |
|
| - | years | ||||||||
Motor vehicles |
|
| years | |||||||||
Fences |
|
| - | years | ||||||||
Furniture and fixtures |
|
| - | years | ||||||||
Total fixed assets |
|
| ||||||||||
Less: Accumulated depreciation |
| ( |
| ( | ||||||||
$ | $ | |||||||||||
NOTE 3. RELATED PARTY TRANSACTIONS
The Partnership’s properties are managed by The Hamilton Company, Inc. (the “Management Company”), an entity that is owned by the majority shareholder of NewReal, Inc., the general partner of the Partnership (the “General Partner”). The management fee is equal to
The Partnership Agreement permits the General Partner or the Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the six months ended June 30, 2023 and 2022, approximately $
The Partnership reimburses the Management Company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $
Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately
13
Sally Michael is a Director of New Real, Inc., and she is a Partner at Saul Ewing Arnstein & Lear LLP. Saul Ewing billed the Partnership for legal fees totaling approximately $
The Partnership has invested in
NOTE 4. PREPAID EXPENSES and OTHER ASSETS
Approximately $
Also, included in prepaid expenses and other assets at June 30, 2023 and December 31, 2022 is approximately $
Intangible assets on the acquisition of 653 Worcester Road are included in prepaid expenses and other assets. Intangible assets are approximately $
Financing fees in association with the line of credit of approximately $
NOTE 5. MORTGAGE NOTES PAYABLE
At June 30, 2023 and December 31, 2022, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At June 30, 2023, the interest rates on these loans ranged from
Financing fees of approximately $
The Partnership has pledged tenant leases as additional collateral for certain of these loans.
Approximate annual maturities at June 30, 2023 are as follows:
2024—current maturities |
| $ | |
|
2025 |
| | ||
2026 |
| | ||
2027 |
| | ||
2028 |
| |||
Thereafter |
| | ||
| ||||
Less: unamortized deferred financing costs | | |||
$ |
14
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 $
The Partnership used the proceeds to pay down approximately $
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 $
The Partnership used the proceeds to pay down approximately $
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 $
Line of Credit
On July 31, 2014, the Partnership entered into an agreement for a $
On October 29, 2021, the Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for
The interest rate for the new term is LIBOR plus
15
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
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
NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS
The Partnership’s residential lease agreements may require tenants to maintain a
NOTE 7. PARTNERS’ CAPITAL
The Partnership has
In January 2023, the Partnership approved a quarterly distribution of $
In 2022 the Partnership paid total distributions of an aggregate $
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
Six Months Ended |
| ||||||
June 30, |
| ||||||
| 2023 |
| 2022 |
| |||
Net Income per Depositary Receipt |
| $ | |
| $ | | |
Distributions per Depositary Receipt | $ | | $ | | |||
NOTE 8. TREASURY UNITS
Treasury Units at June 30, 2023 are as follows:
Class A |
| |
|
Class B |
| | |
General Partnership |
| | |
| |
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
16
Repurchase Program from
From August 20, 2007 through June 30, 2023, the Partnership has repurchased
During the six months ended June 30, 2023, the Partnership purchased a total of
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Partnership, the Subsidiary Partnerships, and the Investment Properties and their properties are not presently subject to any material litigation, and, to management’s knowledge, there is not any material litigation presently threatened against them. The properties are occasionally subject to ordinary routine legal and administrative proceedings incident to the ownership of residential and commercial real estate. Some of the legal and other expenses related to these proceedings are covered by insurance and none of these costs and expenses are expected to have a material adverse effect on the Consolidated Financial Statements of the Partnership.
NOTE 10. RENTAL INCOME
During the six months ended June 30, 2023, approximately
| Commercial |
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Property Leases |
| |||
2024 | $ | | ||
2025 |
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2026 |
| | ||
2027 |
| | ||
2028 |
| | ||
Thereafter |
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$ | | |||
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 $
17