New England Realty Associates Limited Partnership (NERA) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024. The Partnership's consolidated revenue rose by 8.1% to approximately $80.5 million, compared to $74.5 million in 2023. This growth was primarily driven by a 7.9% increase in rental income, which reached approximately $79.8 million, up from $73.9 million the previous year. The Partnership also saw a notable increase in net income, which surged by 85.3% to approximately $15.7 million, compared to $8.5 million in 2023.
In terms of operational metrics, the vacancy rate for residential properties increased to 2.3% as of February 1, 2025, up from 0.9% a year earlier. The Partnership's total residential units remained stable at 2,943, while the commercial properties maintained a vacancy rate of 1.8%. The Partnership's strategic focus on property improvements and acquisitions contributed to its performance, with approximately $25.3 million spent on property enhancements in 2024, including significant investments in the Mill Street Development project.
Strategically, NERA made two notable acquisitions in 2023, purchasing a commercial retail property in Framingham for approximately $10.2 million and a mixed-use property in Boston for about $27.5 million. These acquisitions were funded through cash reserves and are expected to enhance the Partnership's portfolio. Additionally, the Partnership has plans to invest approximately $41.2 million in capital improvements in 2025, which includes further development at the Mill Street site, anticipated to be completed in late 2025.
The Partnership's financial strategy includes maintaining a strong liquidity position, with cash and cash equivalents totaling approximately $17.6 million as of December 31, 2024. NERA also entered into a new $25 million revolving line of credit in November 2024, which is intended for acquisitions, refinancing, and property improvements. The Partnership's management expressed confidence in its ability to capitalize on future investment opportunities, supported by a solid cash flow from operations and a commitment to prudent financial management.
Looking ahead, NERA anticipates stable market conditions for 2025, with expectations of continued low vacancy rates and moderate rental growth. The Partnership's management remains focused on optimizing its property portfolio and enhancing operational efficiencies to sustain its financial performance in the competitive real estate market of Eastern Massachusetts and Southern New Hampshire.
About NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
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