New England Realty Associates Limited Partnership (NERA) reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Rental income for the third quarter increased to approximately $20.0 million, a 6.5% rise from $18.8 million in Q3 2023. For the nine-month period, rental income reached approximately $59.6 million, up 9.6% from $54.3 million in the prior year. The increase in rental income was attributed to higher revenues from several properties, including Hamilton Oaks and 62 Boylston.
Net income for the third quarter surged to approximately $3.9 million, reflecting a substantial 79.7% increase from $2.2 million in Q3 2023. For the nine months, net income rose to approximately $11.4 million, an 86.0% increase from $6.2 million in the same period last year. This growth in profitability was driven by a combination of increased rental income and a decrease in operating expenses, which fell by 2.3% in Q3 2024 compared to the previous year.
Total assets as of September 30, 2024, were reported at approximately $387.4 million, a slight increase from $385.7 million at the end of 2023. The Partnership's cash and cash equivalents decreased to approximately $15.1 million from $18.2 million, while total liabilities rose to approximately $452.8 million from $451.1 million. Mortgage notes payable slightly decreased to approximately $406.8 million.
Strategically, NERA made notable acquisitions, including a mixed-use property in Boston for approximately $27.5 million and a commercial retail property in Framingham for about $10.2 million. The Partnership also received approval for the construction of a 72-unit apartment building at the Mill Street Development site, with total expected costs of approximately $30 million, anticipated to be completed in Q4 2025.
The Partnership's financial management included a $25 million revolving line of credit, which was extended until October 29, 2024. As of September 30, 2024, the Partnership complied with all financial covenants associated with this line of credit.
Overall, NERA's performance in the latest reporting period reflects a robust recovery in rental income and profitability, supported by strategic property acquisitions and effective cost management.
About NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
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