What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-08-08 compared with 2023-05-09 · 97 added, 56 removed, 231 unchanged (40% of the section changed)

9 unchanged sentences

With interest rates rising, and a threat of an economic slowdown, the Partnership increased the debt level and built cash reserves to acquire additional properties when opportunities become available.

Currently, $108,000,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 4.45% and 4.75% .

Currently, $68,000,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 4.4% and 5.0% and approximately $40,000,000 is in a Money Market mutual fund currently earning approximately 5.13%.

Since the Partnership’s long-term goals include the acquisition of additional properties, a portion of the proceeds from the refinancing and sale of properties is reserved for this purpose.

1 unchanged sentence

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 May 1, 2023 was 2.1% as compared with a vacancy rate of 2.0% as of May 1, 2022.

The vacancy rate for the Joint Venture properties as of May 1, 2023 was 2.5 %, as compared to 0.6% for the same period last year.

On July 14, 2023, the partnership purchased a 52 unit residential property in the South End neighborhood of Boston, MA comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, for a purchase price of approximately $27,500,000 with Partnership cash reserves.

The vacancy rate for the Partnership’s residential properties as of August 1, 2023 was 1.8% as compared with a vacancy rate of 2.0% as of August 1, 2022.

The vacancy rate for the Joint Venture properties as of August 1, 2023 was 1.3 %, as compared to 0.9% for the same period last year.

The current vacancy rates are in line with those experienced prior to the Pandemic.

1 unchanged sentence

The majority of these leases will mature during the second and third quarters of the year.

During the first quarter of 2023, rents increased on average of 6.3% for renewals and increased on average of 10.4% for new leases.

During the second quarter of 2023, rents increased an average of 6.8% for renewals and increased an average of 7.8% for new leases.

For the balance of 2023, management expects a strong rental market with continued rent growth.

For the first quarter of 2023, consolidated revenue increased by 6.7%, operating expenses increased by 3.4 % and Income before Other Income (Expense) increased by 17.9%, as compared to the first quarter of 2022.

For the second quarter of 2023, consolidated revenue increased by 6.9%, operating expenses increased by 8.5% and Income before Other Income (Expense) increased by 2.8%, as compared to the second quarter of 2022.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit.

8 unchanged sentences

The modification period was phased out by December 31, 2022.

During the modification period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a

ratio of 1.35 until September 30, 2022;

During the modification period, the loan covenants were modified from a minimum consolidated debt service ratio of 1.60 to a ratio of 1.35 until September 30, 2022;

from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022;

1 unchanged sentence

Once the financial performance of the Partnership meets the original covenant tests for the trailing 12-month period, the commitment amount will return to $25 million.

As of March 31, 2023, the portfolio’s debt yield fell below the minimum of 9.5% to 8.5%, thus the Partnership did not comply with the debt yield financial covenant.

As of June 30, 2023, the portfolio’s debt yield fell below the minimum of 9.5% to 8.5%, thus the Partnership did not comply with the debt yield financial covenant.

As such, the Partnership is unable to draw down any amount from the line of credit until the Partnership meets the required financial covenants.

From the start of the Stock Repurchase Program in 2007 through March 31, 2023, the Partnership has purchased 1,498,809 Depositary Receipts.

During the three months ended March 31, 2023, the Partnership purchased a total of 10,349 Depositary Receipts.

At May 1, 2023, the Harold Brown related entities and Ronald Brown collectively own approximately 31.8% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members).

From the start of the Stock Repurchase Program in 2007 through June 30, 2023, the Partnership has purchased 1,502,734 Depositary Receipts.

During the six months ended June 30, 2023, the Partnership purchased a total of 14,274 Depositary Receipts.

At August 1, 2023, the Harold Brown related entities and Ronald Brown collectively own approximately 31.8% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members).

Harold Brown related entities also control 75% of the Partnership’s Class B Units, and 75% of the capital stock of NewReal, Inc.

10 unchanged sentences

Residential tenants sign a one year lease.

During the three months ended March 31, 2023, tenant renewals were approximately 85% with an average rental increase of approximately 6.3%, new leases accounted for approximately 15% with rental rate increases of approximately 10.4%.

During the three months ended March 31, 2023, leasing commissions were approximately $59,000 compared to approximately $81,000 for the three months ended March 31, 2022, a decrease of approximately $22,000 (27.9%).

Tenant concessions were approximately $20,000 for the three months ended March 31, 2023, compared to approximately $11,000 for the three months ended March 31, 2022, an increase of approximately $9,000 (81.8%).

Tenant improvements were approximately $650,000 for the three months ended March 31, 2023, compared to approximately $475,000 for the three months ended March 31, 2022, an increase of approximately $175,000 (36.8%).

Hamilton accounted for approximately 1.7% of the repair and maintenance expenses paid for by the Partnership during the three months ended March 31, 2023 and 3.2 % during the three months ended March 31, 2022.

During the six months ended June 30, 2023, tenant renewals were approximately 78% with an average rental increase of approximately 6.6%, new leases accounted for approximately 22% with rental rate increases of approximately 8.6%.

During the six months ended June 30, 2023, leasing commissions were approximately $197,000 compared to approximately $156,000 for the six months ended June 30, 2022, an increase of approximately $41,000 (26.3%).

Tenant concessions were approximately $39,000 for the six months ended June 30, 2023, compared to approximately $24,000 for the six months ended June 30, 2022, an increase of approximately $15,000 (62.5%).

Tenant improvements were approximately $4,866,000 for the six months ended June 30, 2023, compared to approximately $1,089,000 for the six months ended June 30, 2022, an increase of approximately $3,777,000 (346.8%).

Hamilton accounted for approximately 2.5% of the repair and maintenance expenses paid for by the Partnership during the six months ended June 30, 2023 and 2.8% during the six months ended June 30, 2022.

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.

3 unchanged sentences

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

Overall, Hamilton provided approximately $68,000 (82.6%) and approximately $54,000 (84.1%) of the legal services paid for by the Partnership during the three months ended March 31, 2023 and 2022 respectively.

Overall, Hamilton provided approximately $108,000 (97.1%) and approximately $107,000 (81.6%) of the legal services paid for by the Partnership during the six months ended June 30, 2023 and 2022 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 three months ended March 31, 2023, Hamilton provided the Partnership approximately $288,000 in construction and architectural services, compared to approximately $37,000 for the three months ended March 31, 2022.

During the six months ended June 30, 2023, Hamilton provided the Partnership approximately $521,000 in construction and architectural services, compared to approximately $42,000 for the six months ended June 30, 2022.

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

During the three months ended March 31, 2023 and 2022, Hamilton charged the Partnership $31,250 for bookkeeping and accounting services.

During the six months ended June 30, 2023 and 2022, Hamilton charged the Partnership $62,500 for bookkeeping and accounting services.

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

25 unchanged sentences

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.

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.

28 unchanged sentences

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.

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.

20 unchanged sentences

RESULTS OF OPERATIONS

Three Months Ended March 31, 2023 and March 31, 2022

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $4,451,000 during the three months ended March 31, 2023, compared to approximately $3,777,000 for the three months ended March 31, 2022, an increase of approximately $674,000 (17.9%).

Three Months Ended June 30, 2023 and June 30, 2022

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $4,738,000 during the three months ended June 30, 2023, compared to approximately $4,611,000 for the three months ended June 30, 2022, an increase of approximately $127,000 (2.8%).

The rental activity is summarized as follows:

Occupancy Date

August 1, 2023

August 1, 2022

Total square feet

Rental Income (in thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Residential percentage

1 unchanged sentence

Contingent rentals

Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022:

Three Months Ended March 31,

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022:

Three Months Ended June 30,

Rental income

10 unchanged sentences

Income from investments in unconsolidated joint ventures

Net Income (Loss)

Rental income for the three months ended March 31, 2023 was approximately $17,569,000, compared to approximately $16,460,000 for the three months ended March 31, 2022, an increase of approximately $1,109,000 (6.7%).

The Partnership properties with the largest increases in rental income include 62 Boylston, 1144 Commonwealth, 653 Worcester Road, Westgate Apartments, and Clovelly Apartments with increases of $362,000, $185,000, $147,000, $129,000 and $69,000 respectively.

Other Income (Expense)

Rental income for the three months ended June 30, 2023 was approximately $17,965,000, compared to approximately $16,826,000 for the three months ended June 30, 2022, an increase of approximately $1,139,000 (6.8%).

Excluding Walgreen’s revenue of approximately $202,000 at 653 Worcester Road, there was an increase of approximately $937,000 (5.6%).

The Partnership properties with the largest increases in rental income include 1144 Commonwealth, Westgate Apartments, Woodland Park, Hamilton Green, and 140 North Beacon, with increases of $218,000, $107,000, $92,000, $84,000 and $74,000 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.

Operating expenses for the three months ended June 30, 2023 were approximately $13,363,000 compared to approximately $12,321,000 for the three months ended June 30, 2022, an increase of approximately $1,042,000 (8.5%).

Excluding the increase in expenses at 653 Worcester Road of approximately $300,000, operating expenses increased approximately $742,000 (6.0%).

Operating expenses for the three months ended March 31, 2023 were approximately $13,240,000 compared to approximately $12,803,000 for the three months ended March 30, 2022, an increase of approximately $437,000 (3.4%), The factors contributing to the increase are an increase in repairs and maintenance of approximately $483,000 (21.2%), an increase in taxes and insurance of approximately $194,000 (8.5%), partially offset by a decrease in depreciation and amortization expenses of approximately $175,000 (4.3%) due to fully depreciated assets, and a decrease in operating expenses of approximately $142,000 (5.3%).

Interest expense for the three months ended March 31, 2023 was approximately $3,899,000 compared to approximately $3,455,000 for the three months ended March 31, 2022, an increase of approximately $444,000 (12.9 %).

The factors contributing to the increase are an increase in repairs and maintenance of approximately $504,000 (17.0%), an increase in administrative expenses of approximately $244,000 (39.1%), and an increase in operating costs of approximately $199,000 (13.1%), partially offset by a decrease in depreciation and amortization expenses of approximately $115,000 (2.8%) due to fully depreciated assets.

Interest expense for the three months ended June 30, 2023 was approximately $3,926,000 compared to approximately $3,624,000 for the three months ended June 30, 2022, an increase of approximately $302,000 (8.3%).

The increase is due to the refinancing of properties, increasing the amount of the debt, which increased the interest expense for the period.

Interest income for the three months ended March 31, 2023 was approximately $975,000 compared to approximately $0 for the three months ended March 31, 2022, an increase of approximately $975,000.

Interest income for the three months ended June 30, 2023 was approximately $1,200,000 compared to approximately $0 for the three months ended June 30, 2022, an increase of approximately $1,200,000.

The increase is due to investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 4.4% to 4.64%.

At March 31, 2023, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties.

At June 30, 2023, 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 $228,000 for the three months ended March 31, 2023, compared to net income of approximately $20,000 for the three months ended March 30, 2022, an increase in income of approximately $208,000 (1034.6%).

This increase is primarily due to an increase in rental revenue to approximately $2,686,000 from $2,430,000, an increase of approximately $256,000 (10.5 %) for the three months ended March 31, 2023 compared to the three months ended March 31, 2022.

Included in the income for the three months ended March 31, 2023 is depreciation and amortization expense of approximately $640,000.

As a result of the changes discussed above, net income for the three months ended March 31, 2023 was approximately $1,754,000 compared to net income of approximately $342,000 for the three months ended March 31, 2022, an increase in income of approximately $1,412,000 (412.3%).

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $119,000 for the three months ended June 30, 2023, compared to net income of approximately $90,000 for the three months ended June 30, 2022, an increase in income of approximately $29,000 (32.5%).

This increase is primarily due to an increase in rental revenue to approximately $2,711,000 from $2,471,000, an increase of approximately $240,000 (9.7%) for the three months ended June 30, 2023 compared to the three months ended June 30, 2022.

Included in the income for the three months ended June 30, 2023 is depreciation and amortization expense of approximately $645,000.

As a result of the changes discussed above, net income for the three months ended June 30, 2023 was approximately $2,225,000 compared to net income of approximately $243,000 for the three months ended June 30, 2022, an increase in income of approximately $1,982,000 (815.5%).

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022:

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, and other expense of approximately $9,190,000 during the six months ended June 30, 2023, compared to approximately $8,388,000 for the six months ended June 30, 2022, an increase of approximately $802,000 (9.6%).

Six Months Ended June 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

Other (Expense) Income

Rental income for the six months ended June 30, 2023 was approximately $35,533,000, compared to approximately $33,285,000 for the six months ended June 30, 2022, an increase of approximately $2,248,000 (6.8%).

Excluding revenues from 653 Worcester Road of approximately $350,000, revenue increases approximately $1,898,000(5.7%).

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

The Partnership properties with the largest increases in rental income include 62 Boylston, 1144 Commonwealth, Westgate Apartments, Woodland Park, and Hamilton Green, with increases of $413,000, $403,000, $236,000, $160,000 and $151,000 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.

Operating expenses for the six months ended June 30, 2023 were approximately $26,603,000 compared to approximately $25,124,000 for the six months ended June 30, 2022, an increase of approximately $1,478,000 (5.9%), Excluding operating costs for 653 Worcester Road of approximately $610,000, operating expenses increased approximately $868,000 (3.5%).The factors contributing to this net increase are an increase in repairs and maintenance expenses of approximately $987,000 (18.8%), an increase in taxes and insurance of approximately $318,000 (6.9%), and an increase in administrative expenses of approximately $273,000 (20.5%), partially offset by a decrease in depreciation and amortization of approximately $290,000 (3.6%).

Interest expense for the six months ended June 30, 2023 was approximately $7,825,000 compared to approximately $7,078,000 for the six months ended June 30, 2022, an increase of approximately $747,000 (10.5%).

The increase is due to the refinancing of properties, increasing the amount of debt, which increased the interest expense for the period.

At June 30, 2023, 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 $347,000 for the six months ended June 30, 2023, compared to net income of approximately $110,000 for the six months ended June 30, 2022, an increase in income of approximately $237,000 (214.8%).

This increase is primarily due to an increase in rental revenue of approximately $ 5,397,000 for the six months ended June 30, 2023 from approximately $4,901,000 for the six months ended June 30, 2022, an increase of approximately $496,000 (10.1%).

Included in the income for the six months ended June 30, 2023 is depreciation and amortization expense of approximately $1,285,000.

On November 30, 2021, 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 $156,000,000.

Interest only on the debt at a fixed interest rate of 2.97% is payable on a monthly basis through December 31, 2031.

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 $80,284,000, at a fixed interest rate of 4.33%.

The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings.

The Partnership used the proceeds to pay down approximately $37,065,000 of existing debt secured by four properties, along with approximately $854,000 in prepayment penalties, which are included in other expenses.

The remaining balance of approximately $42,384,000 will be used for general partnership purposes.

As a result of the changes discussed above, net income for the six months ended June 30, 2023 was approximately $3,979,000 compared to income of approximately $585,000 for the six months ended June 30, 2022, an increase in net income of approximately $3,394,000 (579.8%).

LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during the first three months of 2023 was the collection of rents and for 2022 was the proceeds from the refinancing of 5 properties for approximately $43,000,000, interest income generated from the purchase of Treasury Bills, and the collection of rents.

The Partnership’s principal use of cash during the first three months of 2023 was the purchase of Treasury Bills and the purchase of the commercial property at 653 Worcester Road for approximately $10,000,000.

The majority of cash and cash equivalents of $24,654,625 at March 31, 2023 and $49,560,723 at December 31, 2022 were held in interest bearing accounts at creditworthy financial institutions.

The decrease in cash of $24,906,098 for the three months ended March 31, 2023 is summarized as follows:

Three Months Ended March 31,

The Partnership’s principal source of cash during the first six months of 2023 was the collection of rents and for 2022 was the proceeds from the refinancing of 5 properties for approximately $43,000,000, interest income generated from the purchase of Treasury Bills, and the collection of rents.

The Partnership’s principal use of cash during the first six months of 2023 was the purchase of Treasury Bills and the purchase of the commercial property at 653 Worcester Road for approximately $10,000,000.

The majority of cash and cash equivalents of $55,700,166 at June 30, 2023 and $49,560,723 at December 31, 2022 were held in interest bearing accounts at creditworthy financial institutions.

The increase in cash of $6,139,443 for the six months ended June 30, 2023 is summarized as follows:

Six Months Ended June 30,

Cash provided by operating activities

Cash (used in) investing activities

Cash (used in) financing activities

Cash provided by (used in) investing activities

Cash (used in) provided by financing activities

Repurchase of Depositary Receipts, Class B and General Partner Units

Distributions paid

Net (decrease) in cash and cash equivalents

Net (decrease) increase in cash and cash equivalents

The change 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.

9 unchanged sentences

Cash reserves have been adequate to fully fund improvements.

The most significant improvements were made at Hamilton Oaks, Lincoln Street, School Street, Woodland Park, Westgate Woburn, and Mill Street Development at a cost of approximately $809,000, $198,000, $184,000, $143,000, $125,000 and $117,000 respectively.

During the three months ended March 31, 2023, the Partnership received distributions of approximately $580,000 from the investment properties.

For the three months ended March 31, 2022, the Partnership received $440,000 in distributions from the investment properties.

Included in these net distributions is the amount from Dexter Park of approximately $400,000 and $240,000 for the three months ended March 31, 2023 and 2022, respectively.

In March 2023, the Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per Receipt), which was paid on March 31, 2023.

The most significant improvements were made at Hamilton Oaks, 1144 Commonwealth School Street, Hamilton Green, Lincoln Street, and 62 Boylston Street at a cost of approximately $1,203,000, $1,093,000, $395,000, $233,000, $208,000 and $202,000 respectively.

During the six months ended June 30, 2023, the Partnership received distributions of approximately $1,634,000 from the investment properties.

For the six months ended June 30, 2022, the Partnership received $1,208,000 in distributions from the investment properties.

Included in these net distributions is the amount from Dexter Park of approximately $920,000 and $840,000 for the six months ended June 30, 2023 and 2022, respectively.

In May 2023, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), which was paid on June 30, 2023.

In addition to the quarterly distribution, there was a special distribution of $38.40 per Class A unit ($1.28 per Receipt) payable on March 31, 2023.

8 unchanged sentences

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

The Partnership may also sell or refinance properties.

The Partnership may also

sell or refinance properties.

The Partnership’s net income and cash flow may fluctuate dramatically from year to year as a result of the sale or refinancing of properties, property improvements, increases or decreases in rental income or expenses, or the loss of significant tenants.

Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of March 31, 2023, the Partnership had a 40%-50% ownership interest in seven Joint Ventures, five of which have mortgage indebtedness.

As of June 30, 2023, 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.

At March 31, 2023, our proportionate share of the non-recourse debt related to these investments was approximately $70,778,000.

At June 30, 2023, our proportionate share of the non-recourse debt related to these investments was approximately $70,750,000.

See Note 15 to the Consolidated Financial Statements.

Contractual Obligations

As of March 31, 2023, we are subject to contractual payment obligations as described in the table below.

As of June 30, 2023, we are subject to contractual payment obligations as described in the table below.

Payments due by period

42 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