What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-08 compared with 2025-11-07 · 63 added, 130 removed, 203 unchanged (49% of the section changed)

11 unchanged sentences

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 November 1, 2025 was 3.25% as compared with a vacancy rate of 1.7% as of November 1, 2024.

The vacancy rate for the Joint Venture properties as of November 1, 2025 was 0.7%, as compared to 2.8% for the same period last year.

The vacancy rate for the Partnership’s residential properties as of May 1, 2026 was 2.4% as compared with a vacancy rate of 1.6% as of May 1, 2025.

The vacancy rate for the Joint Venture properties as of May 1, 2026 was 1.3%, as compared to 2.0% for the same period last year.

The Boston area rental market is currently experiencing elevated vacancy rates, and NERA has responded aggressively to keep vacancy below the Boston area’s current availability rates.

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.

During the third quarter of 2025, rents increased an average of 5.7% for renewals and decreased an average of 0.1% for new leases.

During the first quarter of 2026, rents increased an average of 4.4% for renewals and decreased an average of 5.8% for new leases.

For the balance of 2026, management expects a rental market with slowing rent growth.

For the third quarter of 2025, consolidated revenue, excluding Hill Estates, increased by 2.6%, operating expenses increased by 5.1%, and Income before Other Income (Expense) decreased by 2.7%, as compared to the third quarter of 2024.

For the first quarter of 2026, consolidated revenue, excluding Hill Estates, two sold commercial properties, and Mill Street Heights (newly constructed property), increased by 1.8%, operating expenses increased by 17.3%, and Income before Other Income (Expense) decreased by 33.9%, as compared to the first quarter of 2025.

On November 21, 2024, the Partnership entered into an agreement with Brookline Bank for a new $25,000,000 revolving line of credit.

4 unchanged sentences

This fee will be waived for any period in which the Partnership maintains aggregate deposits of twenty million dollars with the Lender.

As of September 30, 2025, the Partnership was in compliance with the financial covenants except for the liquidity covenant, and did not incur an unused line fee.

From the start of the Stock Repurchase Program in 2007 through September 30, 2025, the Partnership has purchased 1,554,701 Depositary Receipts.

During the nine months ended September 30, 2025, the Partnership purchased a total of 4,343 Depositary Receipts.

As of March 31, 2026, the Partnership was in compliance with the financial covenants.

From the start of the Stock Repurchase Program in 2007 through March 31, 2026, the Partnership has purchased 1,561,062 Depositary Receipts.

During the three months ended March 31, 2026, the Partnership purchased a total of 1,653 Depositary Receipts.

In March of 2020, the Board of Advisors and Board of Directors unanimously approved an extension of the Repurchase Program until March 31, 2025.

3 unchanged sentences

The Repurchase Plan shall be made in accordance with the terms of Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and shall be made in accordance with all applicable laws and regulations in effect from time to time.

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 November 1, 2025, the Brown family related entities and Ronald Brown collectively own approximately 34.7% 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 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 is controlled by Jameson Brown and Harley Brown.

On March 11, 2026, the General Partner authorized the President and Treasurer to renew the Repurchase Plan for one year.

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 NewReal to charge the Partnership for the cost of employing professionals to assist with the administration of the Partnership’s properties.

2 unchanged sentences

Residential tenants sign a one year lease.

During the nine months ended September 30, 2025, tenant renewals were approximately 73% with an average rental increase of approximately 5.4%, new leases accounted for approximately 23% with a rental rate increase of approximately 0.2%.

During the nine months ended September 30, 2025, leasing commissions were approximately $686,000 compared to approximately $522,000 for the nine months ended September 30, 2024, an increase of approximately $164,000 (31.4%).

Tenant concessions were approximately $52,000 for the nine months ended September 30, 2025, compared to approximately $92,000 for the nine months ended September 30, 2024, a decrease of approximately $40,000 (43.5%).

Tenant improvements were approximately $2,675,000 for the nine months ended September 30, 2025, compared to approximately $2,503,000 for the nine months ended September 30, 2024, an increase of approximately $172,000 (6.9%).

Hamilton accounted for approximately 1.5% of the repair and maintenance expenses paid for by the Partnership during the nine months ended September 30, 2025 and 1.0% during the nine months ended September 30, 2024.

During the three months ended March 31, 2026, tenant renewals were approximately 72% with an average rental increase of approximately 4.4%, new leases accounted for approximately 28% with a rental rate decrease of approximately 5.8%.

During the three months ended March 31, 2026, leasing commissions were approximately $316,000 compared to approximately $145,000 for the three months ended March 31, 2025, an increase of approximately $171,000 (118.3%).

Tenant concessions were approximately $21,000 for the three months ended March 31, 2026, compared to approximately $16,000 for the three months ended March 31, 2025, an increase of approximately $5,000 (31.3%).

Tenant improvements were approximately $1,507,000 for the three months ended March 31, 2026, compared to approximately $871,000 for the three months ended March 31, 2025, an increase of approximately $636,000 (73.0%).

We are actively monitoring proposed rent control ballot initiative for the Commonwealth of Massachusetts, and are taking actions to mitigate the potential risks associated with the proposal, including limiting future capital expenditures and addressing expense increases to the extent possible.

Hamilton accounted for approximately 1.6% of the repair and maintenance expenses paid for by the Partnership during the three months ended March 31, 2026 and 1.2% during the three months ended March 31, 2025.

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.

2 unchanged sentences

Hamilton’s legal department handles most of the Partnership’s eviction and collection matters.

Additionally, it prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale

transactions.

Overall, Hamilton provided approximately $85,000 (91.7%) and approximately $138,000 (46.4%) of the legal services paid for by the Partnership during the nine months ended September 30, 2025 and 2024, respectively.

Additionally, it prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale transactions.

Overall, Hamilton provided approximately $59,000 (15.3%) and approximately $32,000 (82.8%) of the legal services paid for by the Partnership during the three months ended March 31, 2026 and 2025, respectively.

Additionally, as described in Note 3 to the consolidated financial statements, The Hamilton Company receives similar fees from the Investment Properties.

3 unchanged sentences

Hamilton’s architectural department also provides services to the Partnership on an as-needed basis.

During the nine months ended September 30, 2025, Hamilton provided the Partnership approximately $1,075,000 in construction and architectural services, compared to approximately $420,000 for the nine months ended September 30, 2024.

During the three months ended March 31, 2026, Hamilton provided the Partnership approximately $255,000 in construction and architectural services, compared to approximately $96,000 for the three months ended March 31, 2025.

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership.

During the nine months ended September 30, 2025 and 2024, Hamilton charged the Partnership $93,750 for bookkeeping and accounting services.

During the three months ended March 31, 2026 and 2025, Hamilton charged the Partnership $31,250 for bookkeeping and accounting services.

For more information on related party transactions, see Note 3 to the Consolidated Financial Statements.

13 unchanged sentences

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.

Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement.

Revenue from commercial leases also includes reimbursements and recoveries 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.

5 unchanged sentences

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.

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.

30 unchanged sentences

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.

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.

Investments in Treasury Bills:

Investments in U.S.

Treasury bills had been recorded at amortized cost and classified as held to maturity as the Partnership had the intent and the ability to hold them until they mature.

The carrying value of the Treasury bills were 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.

Investments in Joint Ventures:

19 unchanged sentences

RESULTS OF OPERATIONS

Three Months Ended September 30, 2025 and September 30, 2024

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $4,744,000 during the three months ended September 30, 2025, compared to approximately $6,470,000 for the three months ended September 30, 2024, a decrease of approximately $1,726,000 (26.7%).

Three Months Ended March 31, 2026 and March 31, 2025

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, and other expense of approximately $1,496,000 during the three months ended March 31, 2026, compared to approximately $6,233,000 for the three months ended March 31, 2025, a decrease of approximately $4,737,000 (76.0%).

The rental activity is summarized as follows:

Occupancy Date

November 1, 2025

November 1, 2024

Total square feet

Rental Income (in thousands)

Three Months Ended September 30,

Three Months Ended March 31,

Residential percentage

1 unchanged sentence

Contingent rentals

Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024:

Three Months Ended September 30,

Rental income

Laundry and sundry income

Administrative

Depreciation and amortization

Management fee

Repairs and maintenance

Taxes and insurance

Income Before Other Income (Expense)

Other Income (Expense)

Interest income

Interest expense

Income from investments in unconsolidated joint ventures

Net (Loss) Income

Rental income for the three months ended September 30, 2025 was approximately $23,491,000, compared to approximately $20,021,000 for the three months ended September 30 2024, an increase of approximately $3,470,000 (17.3%).

Excluding revenues from the Hill Estates, 26 Brighton Avenue, and 90 Concord properties rental income of approximately $2,944,000, revenue increased approximately $526,000 (2.6%).

The Partnership properties with the largest increases in rental income include 62 Boylston, Hamilton Oaks, Residence at Captain Parker, WCB Associates, Redwood Hills, and School Street, with increases of $76,000, $66,000, $51,000, $49,000, $43,000 and $43,000 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.

Expenses for the three months ended September 30, 2025 were approximately $18,942,000 compared to approximately $13,738,000 for the three months ended September 30, 2024, an increase of approximately $5,204,000 (37.9%).

Excluding expenses from the Hill Estates, 26 Brighton Avenue, and 90 Concord properties of approximately $4,506,000, operating expenses were approximately $14,436,000, an increase of approximately $698,000 (5.1%).The factors contributing to the increase other than from Hill Estates, 26 Brighton Avenue, and 90 Concord, are an increase in repairs and maintenance of approximately $633,000 (17.5%), an increase in taxes and insurance of approximately $146,000 (5.9%), offset by a decrease in depreciation and amortization expense of approximately $204,000 (4.8%).

Approximately $2,149,000 of the expenses associated with the recently purchased properties is attributable to depreciation expense.

Interest expense for the three months ended September 30, 2025 was approximately $5,450,000 compared to approximately $3,831,000 for the three months ended September 30, 2024, an increase of approximately $1,619,000 (42.3%).

Excluding interest expense for the Hill Estates of approximately $1,079,000, interest expense increased approximately $540,000 (14.1%).

The increase was due to the interest expense incurred when the Partnership borrowed an additional $40,000,000 in June, 2025 at an interest rate of 5.99% on the Master Credit Facility.

Interest and dividend income for the three months ended September 30, 2025 was approximately $37,000 compared to approximately $1,123,000 for the three months ended September 30, 2024, a decrease of approximately $1,086,000 (96.7%).

The decrease in the interest income is due to the use of the Investment in U.S.

Treasury bills to acquire the Hill Estates, 26 Brighton Avenue, and 90 Concord properties.

At September 30 2025, 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 15 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 $147,000 for the three months ended September 30, 2025, compared to net income of approximately $147,000 for the three months ended September 30, 2024, Included in the income for the three months ended September 30, 2025 is depreciation and amortization expense of approximately $665,000.

As a result of the changes discussed above, there was a net loss for the three months ended September 30, 2025 of approximately $522,000 compared to net income of approximately $3,909,000 for the three months ended September 30, 2024, a decrease in income of approximately $4,431,000 (113.3%).

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024:

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $18,041,000 during the nine months ended September 30, 2025, compared to approximately $18,760,000 for the nine months ended September 30, 2024, a decrease of approximately $719,000 (3.8%).

Nine Months Ended September 30,

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Three Months Ended March 31,

Rental income

10 unchanged sentences

Income from investments in unconsolidated joint ventures

Rental income for the nine months ended September 30, 2025 was approximately $65,025,000, compared to approximately $59,573,000 for the nine months ended September 30, 2024, an increase of approximately $5,452,000 (9.2%).

Excluding revenues from the Hill Estates, 26 Brighton Avenue, and 90 Concord properties of approximately $3,365,000, revenue increased approximately $2,087,000 (3.5%).

Included in rental income is contingent rentals collected on commercial properties.

The Partnership properties with the largest increases in rental income include Westgate Apartments, Hamilton Oaks, WCB Associates, Hamilton Green Apartments, School Street, and Redwood Hills, with increases of $226,000, $200,000, $195,000, $183,000, $173,000 and $160,000 respectively.

(Loss) on Sale of Real Estate

Rental income for the three months ended March 31, 2026 was approximately $23,956,000, compared to approximately $20,496,000 for the three months ended March 31, 2025, an increase of approximately $3,460,000 (16.9%).

Excluding revenues from the Hill Estates, two sold commercial properties, and Mill Street Heights (newly constructed), of approximately $3,085,000, revenue increased approximately $375,000 (1.8%).

The Partnership properties with the largest increases in rental income include 62 Boylston, Hamilton Oaks, WCB Associates, and River Drive, with increases of $246,000, $72,000, $66,000, and $52,000, respectively, partially offset by a decrease at 1144 Commonwealth Apartments of approximately $132,000.

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.

Operating expenses for the nine months ended September 30, 2025 were approximately $47,574,000 compared to approximately $41,392,000 for the nine months ended September 30, 2024, an increase of approximately $6,182,000 (14.9%), Excluding operating costs for the Hill Estates, 26 Brighton Avenue and 90 Concord properties of approximately $5,208,000, operating expenses increased approximately $974,000 (2.4%).

The factors contributing to the increase are an increase in taxes and insurance expense of approximately $540,000 (7.2%), an increase in snow removal costs of approximately $432,000 (77.6%), partially offset by a decrease in depreciation and amortization expense of approximately $840,000 (6.6%).

Approximately $2,459,000 of the expenses associated with the recently purchased properties is attributable to depreciation expense.

Interest expense for the nine months ended September 30, 2025 was approximately $13,377,000 compared to approximately $11,638,000 for the nine months ended September 30, 2024, an increase of approximately $1,740,000 (14.9%).

Excluding interest expense for Hill Estates, 26 Brighton Avenue and 90 Concord properties of approximately

$1,228,000, interest expense increased approximately $512,000 (4.4%).

The increase was due to the interest expense incurred when the Partnership borrowed an additional $40,000,000 in May, 2025 at an interest rate of 5.99% on the Master Credit Facility.

Interest and dividend income for the nine months ended September 30, 2025 was approximately $1,765,000 compared to approximately $3,413,000 for the nine months ended September 30, 2024, a decrease of approximately $1,648,000 (48.3%).

The decrease in the interest income is due to the use of Investment in U.S.

Treasury bills to acquire the Hill Estates, 26 Brighton Avenue, and 90 Concord properties.

At September 30, 2025, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties.

Expenses for the three months ended March 31, 2026 were approximately $22,665,000 compared to approximately $14,455,000 for the three months ended March 31, 2025, an increase of approximately $8,210,000 (56.8%).

Excluding expenses from the Hill Estates, two sold commercial properties, and Mill Street Heights (newly constructed) properties of approximately $5,726,000, operating expenses were approximately $16,938,000, an increase of approximately $2,503,000 (17.3%).

The factors contributing to the increase are an increase in operating expenses of approximately $1,318,000 (40.2%), which included an increase in snow removal costs of approximately $870,000 over the three months ended March 31,2025, an increase in administrative expenses of approximately $696,000 ( 112.1%), including an increase in legal costs related to a tenant complaint ($240,000), and a public policy contribution related to a residential housing regulatory matter in the Greater Boston area ($360,000) and an increase in taxes and insurance of approximately $175,000 (6.5%).

Depreciation and amortization expense increased approximately $4,060,000, (104.0%) of which approximately $3,948,000 of the expenses are associated with the recently purchased properties.

Interest expense for the three months ended March 31, 2026 was approximately $5,712,000 compared to approximately $3,791,000 for the three months ended March 31, 2025, an increase of approximately $1,921,000 (50.7%).

The increase was due to the interest expense incurred when the Partnership borrowed an additional $40,000,000 in May, 2025 at an interest rate of 5.99% on the Master Credit Facility, the mortgages incurred upon the acquisition of Hill Estates, and the newly constructed property at Mill Street Heights.

Interest and dividend income for the three months ended March 31, 2026 was approximately $116,000 compared to approximately $991,000 for the three months ended March 31, 2025, a decrease of approximately $875,000 (88.3%).

The decrease in the interest income was due to the use of the Investment in U.S.

Treasury bills to acquire the Hill Estates property in June of 2025.

At March 31, 2026, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties.

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $994,000 for the nine months ended September 30, 2025, compared to net income of approximately $909,000 for the nine months ended September 30, 2024, an increase in income of approximately $85,000 (9.4%).

Included in the income for the nine months ended September 30, 2025 is depreciation and amortization expense of approximately $1,973,000.

As a result of the changes discussed above, net income for the nine months ended September 30, 2025 was approximately $7,424,000 compared to income of approximately $11,446,000 for the nine months ended September 30, 2024, a decrease in net income of approximately $4,022,000 (35.1%).

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $343,000 for the three months ended March 31, 2026, compared to net income of approximately $362,000 for the three months ended March 31, 2025.

Included in the income for the three months ended March 31, 2026 is depreciation and amortization expense of approximately $675,000.

As a result of the changes discussed above, there was a net loss for the three months ended March 31, 2026 of approximately $3,907,000 compared to net income of approximately $3,796,000 for the three months ended March 31, 2025, a decrease in income of approximately $7,703,000 (202.9%).

LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during the first nine months of 2025 and 2024 was the proceeds from the increased in mortgage notes payable, the liquidation of U.S Treasury bills, and the collection of rents.

The Partnership’s principal use of cash during the first nine months of 2025 was the purchase of a new property, construction of the Mill Street Development, improvements to rental properties, mortgage principal payments, purchases of U.S.

Treasury bills, and distributions to partners.

The majority of cash and cash equivalents of $13,374,205 at September 30, 2025 and $17,615,940 at December 31, 2024 were held in interest bearing accounts at creditworthy financial institutions.

The decrease in cash of $4,241,735 for the nine months ended September 30, 2025 is summarized as follows:

Nine Months Ended September 30,

The Partnership’s principal source of cash during the first three months of 2026 and 2025 was the collection of rents.

The Partnership’s principal use of cash during the first three months of 2026 was improvements to rental properties, mortgage principal payments, and distributions to partners.

The majority of cash and cash equivalents of $25,559,751 at March 31, 2026 and $26,668,978 at December 31, 2025 was held in interest bearing accounts at creditworthy financial institutions.

The decrease in cash of $1,109,227 for the three months ended March 31, 2026 is summarized as follows:

Three Months Ended March 31,

Cash provided by operating activities

Cash (used in) investing activities

Proceeds from mortgage notes payable

Cash (used in) provided by investing activities

Principal payments of mortgage notes payable

3 unchanged sentences

The net increase 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 net decrease in cash used in investing activities is primarily for the purchase of the Hill Estates, 26 Brighton Avenue and 90 Concord properties, improvement of rental properties, including the Mill Street Development project, offset by the proceeds of U.S.

Treasury bills.

Financing activities include proceeds from the mortgage notes payable, mortgage principal payments and distributions to partners, and repurchase of depositary receipts.

The net decrease in cash used in investing activities is primarily for the improvement of rental properties, offset by the sale of two commercial properties.

Financing activities include mortgage principal payments and distributions to partners, and repurchase of depositary receipts.

During 2026, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $3,823,000.

1 unchanged sentence

Cash reserves have been adequate to fully fund improvements.

Cash reserves used for the Mill Street Development Project were approximately $16,053,000 for the nine months ended September 30, 2025.

Beyond the Mill Street Development Project, the most significant improvements were made at Commonwealth 1137, Boylston Street, Residences at Captain Parker, Executive Apartments, Staples Plaza, and Hamilton Oaks, at a cost of approximately $1,299,000, $1,163,000, $748,000, $663,000, $655,000 and $616,000, respectively.

During the nine months ended September 30, 2025, the Partnership received distributions of approximately $1,078,000 from the investment properties.

For the nine months ended September 30, 2024, the Partnership received $3,972,000 in distributions from the investment properties.

Included in these net distributions is the amount from Dexter Park of approximately $600,000 and $1,340,000 for the nine months ended September 30, 2025 and 2024 , respectively.

The most significant improvements were made at Hill Estates, Hamilton Green, Hamilton Battlegreen, Hamilton Oaks, Mill Street Heights, and Executive Apartments, at a cost of approximately $1,219,000, $791,000, $309,000, $236,000, $218,000 and $217,000, respectively.

During the three months ended March 31, 2026, the Partnership received distributions of approximately $345,000 from the investment properties.

For the three months ended March 31, 2025, the Partnership received $482,000 in distributions from the investment properties.

Included in these net distributions is the amount from Dexter Park of approximately $100,000 and $200,000 for the three months ended March 31, 2026 and 2025 , respectively.

In March 2026, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 31, 2026.

In addition to the quarterly distribution, there was a special distribution of $96.00 per Class A unit ($3.20 per Receipt) payable on March 31, 2025.

In May 2025, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on May 30, 2025 .

On August 7, 2025, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on September 30, 2025.

In May 2026, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 30, 2026 .

The Partnership anticipates that cash from operations will be sufficient to fund its current operations, pay distributions, and make required debt payments.

The Partnership anticipates that the Mill Street Development project will require approximately $30 million to be spent over the two year period, with approximately $15 million spent in 2024 and approximately $15 million to be spent in 2025.

The Partnership is using cash reserves to fund this construction but will finance a portion of construction costs upon completion of the project.

Construction is expected to be completed during the fourth quarter of 2025 .

Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of September 30, 2025, the Partnership had a 40%-50% ownership interest in seven Joint Ventures, five of which have mortgage indebtedness.

As of March 31, 2026, the Partnership had a 40%-50% ownership interest in seven Joint Ventures, five of which have mortgage indebtedness.

We do not have control of these partnerships and therefore we account for them using the equity method of consolidation.

As of September 30, 2025, our proportionate share of the non-recourse debt related to these investments was approximately $74,930,000.

As of March 31, 2026, our proportionate share of the non-recourse debt related to these investments was approximately $74,867,000.

See Note 15 to the Consolidated Financial Statements.

Contractual Obligations

As of September 30, 2025, we are subject to debt obligations as described in the table below.

As of March 31, 2026, we are subject to debt obligations as described in the table below.

Payments due by period

4 unchanged sentences

* Excluding unamortized deferred financing costs

As of September 30, 2025, the Partnership has one property under construction located at 57 Mill Street in Woburn, MA.

The project includes 72 residential units comprising approximately 93,000 square feet, and is estimated to be completed during the fourth quarter of 2025.

Total investment to date is approximately $31 million, and the total investment upon completion is anticipated to be approximately $33 million.

The partnership is using cash reserves to fund this construction, but will finance a portion of construction costs upon completion of the project.

In connection with the Mill Street development project, the Partnership has entered into a contract with a general contractor with a current contract value of approximately $ 30.9 million.

We have various standing or renewable service contracts with vendors related to our property management.

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● Ongoing compliance with Sarbanes-Oxley Act of 2002 may require additional personnel or systems changes.

● Revenue associated with residential properties may be limited in the future if current rent restriction proposals are adopted by the State of Massachusetts.

On August 6, 2025, a citizen’s petition was filed by a coalition of housing advocacy organizations with the Massachusetts’ State’s Attorney General, to put a ballot initiative in front of voters.

If approved, the petition would limit annual rent increases in

Massachusetts to cost of living increases, with a 5% annual cap.

● Revenue associated with residential properties may be limited in the future if current rent restriction proposals are adopted by the Commonwealth of Massachusetts.

If approved, the petition would limit annual rent increases in Massachusetts to cost of living increases, with a 5% annual cap.

If such a ballot measure were to be passed by voters, our financial condition, results of operations, and cash flows, as well as our ability to pay dividends, could be adversely affected over time.

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis