NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

Previous wording

Over a period of time both in 2021 and 2022, the Partnership took advantage of the low interest rate environment and refinanced fifteen properties, increased their loan balances, and raised approximately $130,000,000. 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, $83,636,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 5.08% and 5.27%.** **

Current wording

Over a period of time both in 2021 and 2022, the Partnership took advantage of the low interest rate environment and refinanced fifteen properties, increased their loan balances, and raised approximately $130,000,000. 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, $86,134,000 of these reserves are invested in short-term US Treasury bills maturing in 6 months or less with interest rates between 4.48% and 5.27%.** **

Previous wording

The vacancy rate for the Partnership’s residential properties as of August 1, 2024 was 1.5% as compared with a vacancy rate of 1.8% as of August 1, 2023. The vacancy rate for the Joint Venture properties as of August 1, 2024 was 2.8%, as compared to 1.3% for the same period last year.

Current wording

The vacancy rate for the Partnership’s residential properties as of November 1, 2024 was 1.7% as compared with a vacancy rate of 0.9% as of November 1, 2023. The vacancy rate for the Joint Venture properties as of November 1, 2024 was 2.8%, as compared to 0.7% for the same period last year.

Previous wording

During the second quarter of 2024, rents increased an average of 6.4% for renewals and increased an average of 7.6% for new leases. For the balance of 2024, management expects a rental market with continued rent growth.

Current wording

During the third quarter of 2024, rents increased an average of 5.4% for renewals and increased an average of 4.6% for new leases. For the balance of 2024, management expects a rental market with continued but moderating rent growth.

Previous wording

For the second quarter of 2024, consolidated revenue increased by10.8%, operating expenses increased by 1.1%, and Income before Other Income (Expense) increased by 38.0%, as compared to the second quarter of 2023.

Current wording

For the third quarter of 2024, consolidated revenue increased by 6.6%, operating expenses decreased by 2.3%, and Income before Other Income (Expense) increased by 32.1%, as compared to the third quarter of 2023.

Previous wording

Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the line’s expiration in 2020, the Partnership exercised its option for a one-year extension until October 31, 2021. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

Current wording

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. Prior to the

Previous wording

On October 29, 2021,** t**he Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. 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; from a minimum tangible net worth requirement of $200 million to a net worth of $175 million until September 30, 2022; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. 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 June 30, 2024, the portfolio’s debt yield fell below the minimum of 9.5% to 9.3%, thus the Partnership did not comply with the debt yield financial covenant. As such, the Partnership is restricted from drawing down any amount from the line of credit until the Partnership meets the required financial covenants. The Partnership is currently in discussions with a lender for a replacement line of credit.

Current wording

On October 29, 2021,** t**he Partnership closed on the modification of its existing line of credit. The agreement extends the credit line for three years until October 29, 2024. The commitment amount is for $25 million but is restricted to $17 million during the modification period. The modification period phased out as of December 31, 2022. During this 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; from a maximum consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022 and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30, 2022 and a yield of 9.0% until December 31, 2022. 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 September 30, 2024, the portfolio’s debt yield achieved the minimum of 9.5%, and the Partnership complied with all financial covenants. The line of credit expired on October 29,2024.The Partnership is currently in discussions with a lender for a replacement line of credit.

Previous wording

From the start of the Stock Repurchase Program in 2007 through June 30, 2024, the Partnership has purchased 1,542,344 Depositary Receipts. During the six months ended June 30, 2024, the Partnership purchased a total of 10,110 Depositary Receipts.

Current wording

From the start of the Stock Repurchase Program in 2007 through September 30, 2024, the Partnership has purchased 1,549,824 Depositary Receipts. During the nine months ended September 30, 2024, the Partnership purchased a total of 17,590 Depositary Receipts.

Previous wording

Residential tenants sign a one year lease. During the six months ended June 30, 2024, tenant renewals were approximately 71% with an average rental increase of approximately 6.2%, new leases accounted for approximately 29% with rental rate increases of approximately 6.7%. During the six months ended June 30, 2024, leasing commissions were approximately $231,000 compared to approximately $197,000 for the six months ended June 30, 2023, an increase of approximately $34,000 (17.2%). Tenant concessions were approximately $78,000 for the six months ended June 30, 2024, compared to approximately $39,000 for the six months ended June 30, 2023, an increase of approximately $39,000 (100.0%). Tenant improvements were approximately $1,682,000 for the six months ended June 30, 2024, compared to** **approximately $4,866,000 for the six months ended June 30, 2023, a decrease of approximately $3,184,000 (65.4%).

Current wording

Residential tenants sign a one year lease. During the nine months ended September 30, 2024, tenant renewals were approximately 67% with an average rental increase of approximately5.8%, new leases accounted for approximately 33% with rental rate increases of approximately5.3%. During the nine months ended September 30, 2024, leasing commissions were approximately $522,000 compared to approximately $459,000 for the nine months ended September 30, 2023, an increase of approximately $63,000 (13.7%). Tenant concessions were approximately $92,000 for the nine months ended September 30, 2024, compared to approximately $66,000 for the nine months ended September 30, 2023, an increase of approximately $26,000 (39.4%). Tenant improvements were approximately $2,503,000 for the nine months ended September 30, 2024, compared to** **approximately $2,641,000 for the nine months ended September 30, 2023, a decrease of approximately $138,000 (5.2%).

Previous wording

Hamilton accounted for approximately 0.5% of the repair and maintenance expenses paid for by the Partnership during the six months ended June 30, 2024 and 2.5% during the six months ended June 30, 2023. 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

Current wording

Hamilton accounted for approximately 1.0% of the repair and maintenance expenses paid for by the Partnership during the nine months ended September 30, 2024 and 1.8% during the nine months ended September 30, 2023. 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. Several of the larger Partnership properties have their own maintenance staff. Those properties that do not have their own maintenance staff and are located more than a reasonable distance from Hamilton’s headquarters in Allston, Massachusetts are generally serviced by local, independent companies.

Previous wording

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 $89,000 (43.7%) and approximately $108,000 (79.4%) of the legal services paid for by the Partnership during the six months ended June 30, 2024 and 2023 respectively.

Current wording

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 $138,000 (46.4%) and approximately $199,000 (71.9%) of the legal services paid for by the Partnership during the nine months ended September 30, 2024 and 2023 respectively.

Previous wording

The Partnership requires that three bids be obtained for construction contracts in excess of $15,000. Hamilton may be one of the three bidders on a particular project and may be awarded the contract if its bid and its ability to successfully complete the project are deemed appropriate. For contracts that are not awarded to Hamilton, Hamilton charges the Partnership a construction supervision fee equal to 5% of the contract amount. Hamilton’s architectural department also provides services to the Partnership on an as-needed basis. During the six months ended June 30, 2024, Hamilton provided the Partnership approximately $330,000 in construction and architectural services, compared to approximately $521,000 for the six months ended June 30, 2023.

Current wording

The Partnership requires that three bids be obtained for construction contracts in excess of $15,000. Hamilton may be one of the three bidders on a particular project and may be awarded the contract if its bid and its ability to successfully complete the project are deemed appropriate. For contracts that are not awarded to Hamilton, Hamilton charges the Partnership a construction supervision fee equal to 5% of the contract amount. Hamilton’s architectural department also provides services to the Partnership on an as-needed basis. During the nine months ended September 30, 2024, Hamilton provided the Partnership approximately $420,000 in construction and architectural services, compared to approximately $563,000 for the nine months ended September 30, 2023.

Previous wording

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the six months ended June 30, 2024 and 2023, 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.

Current wording

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the nine months ended September 30, 2024 and 2023, Hamilton charged the Partnership $93,750 for bookkeeping and accounting services. For more information on related party transactions, see Note 3 to the Consolidated Financial Statements.

Previous wording

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.

Current wording

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.

Previous wording

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties may be impaired. 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.

Current wording

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.

Previous wording

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $6,538,000 during the three months ended June 30, 2024, compared to approximately $4,738,000 for the three months ended June 30, 2023, an increase of approximately $1,800,000 (38.0%).

Current wording

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $6,470,000 during the three months ended September 30, 2024, compared to approximately $4,899,000 for the three months ended September 30, 2023, an increase of approximately $1,571,000 (32.1%).

Previous wording

The Partnership properties with the largest increases in rental income include 62 Boylston Street, Hamilton Oaks, 1144 Commonwealth, Mill Street Gardens, Woodland Park and Westgate Apartments, with increases of $210,000, $150,000, $112,000, $76,000, $64,000 and $63,000 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.

Current wording

The Partnership properties with the largest increases in rental income include 659 Worcester Road, Shawmut Place, Hamilton Oaks, Mill Street Gardens, 62 Boylston Street, and Westgate Apartments, with increases of $156,000, $120,000, $100,000, $100,000, $97,000 and $92,000 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.

Previous wording

Operating expenses for the six months ended June 30, 2024 were approximately $27,654,000 compared to approximately $26,603,000 for the six months ended June 30, 2023, an increase of approximately $1,051,000 (4.0%), Excluding operating costs for Shawmut Apartments of approximately $1,151,000, operating expenses decreased approximately $99,000 (0.4%). The factors contributing to the decrease are a decrease in administrative expenses of approximately $197,000 (12.3%), a decrease in depreciation and amortization expense of approximately $184,000 (2,4%), partially offset by an increase in management fees of approximately $170,000 (12.4%).

Current wording

Operating expenses for the three months ended September 30, 2024 were approximately $13,738,000 compared to approximately $14,062,000 for the three months ended September 30, 2023, a decrease of approximately $324,000 (2.3%). The factors contributing to the decrease are a decrease in depreciation and amortization expense of approximately $202,000 (4.6%), a decrease in operating expenses of approximately $100,000 (6.2%), and a decrease in taxes and insurance of approximately $74,000 (2.9%).

Previous wording

Interest expense for the three months ended June 30, 2024 was approximately $3,900,000 compared to approximately $3,926,000 for the three months ended June 30, 2023, a decrease of approximately $26,000 (0.7%).

Current wording

Interest expense for the three months ended September 30, 2024 was approximately $3,831,000 compared to approximately $3,956,000 for the three months ended September 30, 2023, a decrease of approximately $125,000 (3.2%).

Previous wording

Interest and dividend income for the three months ended June 30, 2024 was approximately $1,113,000 compared to approximately $1,292,000 for the three months ended June 30, 2023, a decrease of approximately $179,000 (13.9%). Interest income is from investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 5.08% to 5.27%.** **

Current wording

Interest and dividend income for the three months ended September 30, 2024 was approximately $1,123,000 compared to approximately $1,083,000 for the three months ended September 30, 2023, an increase of approximately $40,000 (3.7%). Interest income is from investments in Treasury Bills which mature over a period less than 180 days, with interest rates between 4.48% to 5.27%.** **

Previous wording

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $762,000 for the six months ended June 30, 2024, compared to net income of approximately $347,000 for the six months ended June 30, 2023, an increase in income of approximately

Current wording

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, 2024, compared to net income of approximately $149,000 for the three months ended September 30, 2023, a decrease in income of approximately $2,000 (1.3%). Included in the income for the three months ended September 30, 2024 is depreciation and amortization expense of approximately $657,000.

Previous wording

As a result of the changes discussed above, net income for the three months ended June 30, 2024 was approximately $4,073,000 compared to net income of approximately $2,225,000 for the three months ended June 30, 2023, an increase in income of approximately $1,848,000 (83.1%).

Current wording

As a result of the changes discussed above, net income for the three months ended September 30, 2024 was approximately $3,909,000 compared to net income of approximately $2,175,000 for the three months ended September 30, 2023, an increase in income of approximately $1,734,000 (79.7%).

Previous wording

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, and other expense of approximately $12,290,000 during the six months ended June 30, 2024, compared to approximately $9,190,000 for the six months ended June 30, 2023, an increase of approximately $3,100,000 (33.7%).

Current wording

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, and other expense of approximately $18,760,000 during the nine months ended September 30, 2024, compared to approximately $14,089,000 for the nine months ended September 30, 2023, an increase of approximately $4,671,000 (33.2%).

Previous wording

Rental income for the six months ended June 30, 2024 was approximately $39,551,000, compared to approximately $35,533,000 for the six months ended June 30, 2023, an increase of approximately $4,018,000 (11.3%). Excluding revenues from Shawmut Apartments of approximately $1,197,000, revenue increased approximately $2,821,000 (7.9%). Included in rental income is contingent rentals collected on commercial properties. The Partnership properties with the largest increases in rental income include Hamilton Oaks, 62 Boylston, 1144 Commonwealth, Mill Street Gardens, Westgate Apartments, and Hamilton Green, with increases of $319,000, $298,000, $294,000, $206,000, $141,000 and $141,000 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.

Current wording

Rental income for the nine months ended September 30, 2024 was approximately $59,573,000, compared to approximately $54,338,000 for the nine months ended September 30, 2023, an increase of approximately $5,235,000 (9.6%). Excluding revenues from Shawmut Apartments of approximately $1,305,000, revenue increased approximately $3,930,000 (7.2%).The Partnership properties with the largest increases in rental income include Hamilton Oaks, 62 Boylston, 1144 Commonwealth, Mill Street Gardens, 659 Worcester Road, and Westgate Apartments, with increases of $419,000, $395,000, $342,000, $306,000, $292,000 and $233,000, 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.

Previous wording

Operating expenses for the three months ended June 30, 2024 were approximately $13,512,000 compared to approximately $13,363,000 for the three months ended June 30, 2023, an increase of approximately $150,000 (1.1%). Excluding expenses from Shawmut Apartments of approximately $580,000, operating expenses were approximately $12,932,000, a decrease of approximately $431,000 (3.2%). The factors contributing to the decrease are a decrease in administrative expenses of approximately $221,000 (25.5%), a decrease in operating expenses of approximately $132,000 (7.7%), and a decrease in depreciation and amortization expense of approximately $125,000 (3.5%).

Current wording

Operating expenses for the nine months ended September 30, 2024 were approximately $41,392,000 compared to approximately $40,665,000 for the nine months ended September 30, 2023, an increase of approximately $727,000 (1.8%), Excluding operating costs for Shawmut Apartments of approximately $1,059,000, operating expenses decreased approximately $332,000 (0.8%). The factors contributing to the decrease are a decrease in depreciation and amortization expense of approximately $317,000 (2.7%), a decrease in administrative expenses of approximately $153,000 (6.8%), and a decrease in operating expenses of approximately $120,000 (2.1%).

Previous wording

Interest expense for the six months ended June 30, 2024 was approximately $7,807,000 compared to approximately $7,825,000 for the six months ended June 30, 2023, a decrease of approximately $18,000 (0.2%).

Current wording

Interest expense for the nine months ended September 30, 2024 was approximately $11,638,000 compared to approximately $11,781,000 for the nine months ended September 30, 2023, a decrease of approximately $144,000 (1.2%).

Previous wording

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $321,000 for the three months ended June 30, 2024, compared to net income of approximately $119,000 for the three months ended June 30, 2023, an increase in income of approximately $202,000 (168.5%). This increase is primarily due to an increase in rental revenue to approximately $2,869,000 from $2,711,000, an increase of approximately $158,000 (5.8%) for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Included in the income for the three months ended June 30, 2023 is depreciation and amortization expense of approximately $650,000.

Current wording

As described in Note 15 to the Consolidated Financial Statements, the Partnership’s share of the net income from the Investment Properties was approximately $909,000 for the nine months ended September 30, 2024, compared to net income of approximately $496,000 for the nine months ended September 30, 2023, an increase in income of approximately $413,000 (83.3%).This increase is primarily due to an increase in rental revenue of approximately $ 8,692,000 for the nine months ended September 30, 2024 from approximately $8,176,000 for the nine months ended September 30, 2023, an increase of approximately $516,000 (6.3%). Included in the income for the nine months ended September 30, 2024 is depreciation and amortization expense of approximately $1,948,000.

Previous wording

As a result of the changes discussed above, net income for the six months ended June 30, 2024 was approximately $7,536,000 compared to income of approximately $3,979,000 for the six months ended June 30, 2023, an increase in net income of approximately $3,557,000 (89.4%).

Current wording

As a result of the changes discussed above, net income for the nine months ended September 30, 2024 was approximately $11,446,000 compared to income of approximately $6,155,000 for the nine months ended September 30, 2023, an increase in net income of approximately $5,291,000 (86.0%).

Previous wording

The Partnership’s principal source of cash during the first six months of 2024 and 2023 was the collection of rents. The Partnership’s principal use of cash during the first six months of 2024 was the construction of the Mill Street Development, improvements to rental properties, mortgage principal payments, purchases of U.S. Treasury bills, and distributions to partners. The Partnership’s principal use of cash during the first six months of 2023 was the purchase of U.S. Treasury bills, and the purchase of a commercial property at 653 Worcester Road for approximately $10,000,000.

Current wording

The Partnership’s principal source of cash during the first nine months of 2024 and 2023 was the collection of rents. The Partnership’s principal use of cash during the first nine months of 2024 was the construction of the Mill Street Development, improvements to rental properties, mortgage principal payments, purchases of U.S. Treasury bills, and distributions to partners. The Partnership’s principal use of cash during the first nine months of 2023 was the purchase of Treasury Bills and the purchase of two properties: the commercial property at 653 Worcester Road for approximately $10,000,000, and the purchase of a mixed use property in the South End neighborhood of Boston, MA, for a purchase price of approximately $27,500,000.

Previous wording

The majority of cash and cash equivalents of $13,463,294 at June 30, 2024 and $18,230,463 at December 31, 2023 were held in interest bearing accounts at creditworthy financial institutions.

Current wording

The majority of cash and cash equivalents of $15,069,693 at September 30, 2024 and $18,230,463 at December 31, 2023 were held in interest bearing accounts at creditworthy financial institutions.

Previous wording

The decrease in cash of $4,767,169 for the six months ended June 30, 2024 is summarized as follows:

Current wording

The decrease in cash of $3,160,770 for the nine months ended September 30, 2024 is summarized as follows:

Previous wording

During 2024, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $4,943,000. These improvements were funded from cash reserves. Cash reserves have been adequate to fully fund improvements. Cash reserves used for the Mill Street Development Project were approximately $4,186,000. Beyond the Mill Street Development Project, the most significant improvements were made at Executive Apartments, River Drive Apartments, 1144 Commonwealth, Hamilton Oaks, Dean Street Associates, and Westgate Woburn at a cost of approximately $1,173,000, $858,000, $687,000, $422,000, $236,000 and $212,000 respectively.

Current wording

During 2024, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $15,369,000. These improvements were funded from cash reserves. Cash reserves have been adequate to fully fund improvements. Cash reserves used for the Mill Street Development Project were approximately $7,962,000. Beyond the Mill Street Development Project, the most significant improvements were made at Executive Apartments, 1144 Commonwealth, River Drive Apartments, Redwood Hills, Hamilton Oaks, and Westgate Woburn at a cost of approximately $1,339,000, $960,000, $871,000, $844,000, $656,000 and $322,000 respectively.

Previous wording

During the six months ended June 30, 2024, the Partnership received distributions of approximately $1,523,000 from the investment properties. For the six months ended June 30, 2023, the Partnership received $1,634,000 in distributions from the investment properties. Included in these net distributions is the amount from Dexter Park of approximately $1,100,000 and $920,000 for the six months ended June 30, 2024 and 2023, respectively.

Current wording

During the nine months ended September 30, 2024, the Partnership received distributions of approximately $3,972,500, from the investment properties. For the nine months ended September 30, 2023, the Partnership received $3,033,500 in distributions from the investment properties. Included in these net distributions is the amount from both Hamilton on Main of approximately $2,000,000 and $430,000 and Dexter Park of approximately $1,340,000 and $1,492,000 for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

In May 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 28, 2024. In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), which was paid on March 28, 2024. In addition to the quarterly distribution, there was a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024.

Current wording

In March 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on March 28, 2024. In addition to the quarterly distribution, there was a special distribution of $48.00 per Class A unit ($1.60 per Receipt) payable on March 28, 2024. In May 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on June 28, 2024. In August 2024, the Partnership approved a quarterly distribution of $12.00 per Unit ($0.40 per Receipt), payable on September 28, 2024.

Previous wording

As of June 30, 2024, 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

Current wording

As of September 30, 2024, 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 September 30, 2024, our proportionate share of the non-recourse debt related to these investments was approximately $73,946,000. See Note 15 to the Consolidated Financial Statements.

Previous wording

As of June 30, 2024, we are subject to contractual payment obligations as described in the table below.

Current wording

As of September 30, 2024, we are subject to debt obligations as described in the table below.