NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

Previous wording

Certain information contained herein includes forward looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Liquidation Reform Act of 1995 (the “Act”). Forward looking statements in this report, or which management may make orally or in written form from time to time, reflect management’s good faith belief when those statements are made, and are based on information currently available to management. Caution should be exercised in interpreting and relying on such forward looking statements, the realization of which may be impacted by known and unknown risks and uncertainties, events that may occur subsequent to the forward looking statements, and other factors which may be beyond the Partnership’s control and which can materially affect the Partnership’s actual results, performance or achievements for 2025 and beyond. Should one or more of the risks or uncertainties mentioned below materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update our forward looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends. For an additional discussion of factors that may affect the Partnership’s business and results of operations, see Item1A-Risk Factors in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Current wording

Certain information contained herein includes forward looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward looking statements in this report, or which management may make orally or in written form from time to time, reflect management’s good faith belief when those statements are made, and are based on information currently available to management. Caution should be exercised in interpreting and relying on such forward looking statements, the realization of which may be impacted by known and unknown risks and uncertainties, events that may occur subsequent to the forward looking statements, and other factors which may be beyond the Partnership’s control and which can materially affect the Partnership’s actual results, performance or achievements for 2025 and beyond. Should one or more of the risks or uncertainties mentioned below materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update our forward looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends. For an additional discussion of factors that may affect the Partnership’s business and results of operations, see Item1A-Risk Factors in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Previous wording

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. If available acquisitions do not meet the Partnership’s investment criteria, the Partnership may purchase additional depositary receipts. 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.

Current wording

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 may be reserved for this purpose. If available acquisitions do not meet the Partnership’s investment criteria, the Partnership may purchase additional depositary receipts. 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.

Previous wording

The vacancy rate for the Partnership’s residential properties as of May 1, 2025 was 1.6% as compared with a vacancy rate of 1.2% as of May 2, 2024. The vacancy rate for the Joint Venture properties as of May 1, 2025 was 2.0%, as compared to 1.3% for the same period last year.

Current wording

The vacancy rate for the Partnership’s residential properties as of August 1, 2025 was 2.4% as compared with a vacancy rate of 1.5% as of August 1, 2024. The vacancy rate for the Joint Venture properties as of August 1, 2025 was 1.9%, as compared to 2.8% for the same period last year.

Previous wording

During the first quarter of 2025, rents increased an average of 6.0% for renewals and decreased an average of 0.2% for new leases. For the balance of 2025, management expects a rental market with slowing rent growth.

Current wording

During the second quarter of 2025, rents increased an average of 4.6% for renewals and increased an average of 1.4% for new leases. For the balance of 2025, management expects a rental market with slowing rent growth.

Previous wording

For the first quarter of 2025, consolidated revenue increased by 4.0%, operating expenses increased by 2.2%, and Income before Other Income (Expense) increased by 8.4%, as compared to the first quarter of 2024.

Current wording

For the second quarter of 2025, consolidated revenue, excluding Hill Estates, increased by 3.9%, operating expenses increased by 0.3%, and Income before Other Income (Expense) increased by 12.3%, as compared to the second quarter of 2024.

Previous wording

On November 21, 2024, the Partnership entered into an agreement for a new $25,000,000 revolving line of credit. The term of the line is for three years with a floating interest rate equal to a base rate of the SOFR Rate for a period of one month plus the applicable margin of 2.5%. The loan covenants include a leverage ratio not to exceed 65%, a debt service coverage ratio of not less than 1.5 to 1.0, maximum usage of 1.5 times trailing 12 months EBITDA, minimum liquidity of $15 million, and a minimum debt yield of 8.5%. The Partnership incurred a commitment fee of $125,000. The Partnership will be charged annually an unused line fee, equal to seventy-five basis points (0.75%) between the difference of the maximum availability and the outstanding principal of the line of credit. This fee will be waived for any period in which the Partnership maintains aggregate deposits of twenty million dollars with the Lender. As of March 31,2025, the Partnership was in compliance with the financial covenants and did not incur an unused line fee.

Current wording

On November 21, 2024, the Partnership entered into an agreement with Brookline Bank for a new $25,000,000 revolving line of credit. The term of the line is for three years with a floating interest rate equal to a base rate of the SOFR Rate for a period of one month plus the applicable margin of 2.5%. The loan covenants include a leverage ratio not to exceed 65%, a debt service coverage ratio of not less than 1.5 to 1.0, maximum usage of 1.5 times trailing 12 months EBITDA, minimum liquidity of $15 million, and a minimum debt yield of 8.5%. The Partnership incurred a commitment fee of $125,000. The Partnership will be charged annually an unused line fee, equal to seventy-five basis points (0.75%) between the difference of the maximum availability and the outstanding principal of the line of credit. This fee will be waived for any period in which the Partnership maintains aggregate deposits of twenty million dollars with the Lender. As of June 30,2025, the Partnership was in compliance with the financial covenants and did not incur an unused line fee.

Previous wording

From the start of the Stock Repurchase Program in 2007 through March 31, 2025, the Partnership has purchased 1,550,442 Depositary Receipts. During the three months ended March 31, 2025, the Partnership purchased a total of 84 Depositary Receipts.

Current wording

From the start of the Stock Repurchase Program in 2007 through June 30, 2025, the Partnership has purchased 1,553,365 Depositary Receipts. During the six months ended June 30, 2025, the Partnership purchased a total of 3,007 Depositary Receipts.

Previous wording

Residential tenants sign a one year lease. During the three months ended March 31, 2025, tenant renewals were approximately 69% with an average rental increase of approximately 6.0%, new leases accounted for approximately 31% with a rental rate decrease of approximately 0.2%. During the three months ended March 31, 2025, leasing commissions were approximately $145,000 compared to approximately $118,000 for the three months ended March 31, 2024, an increase of approximately $27,000 (22.9%). Tenant concessions were approximately $16,000 for the three months ended March 31, 2025, compared to approximately $76,000 for the three months ended March 31, 2024, a decrease of approximately $60,000 (78.9%). Tenant improvements were approximately $871,000 for the three months ended March 31, 2025, compared to** **approximately $765,000 for the three months ended March 31, 2024, an increase of approximately $106,000 (13.9%).

Current wording

Residential tenants sign a one year lease. During the six months ended June 30, 2025, tenant renewals were approximately 72% with an average rental increase of approximately 5.1%, new leases accounted for approximately 28% with a rental rate increase of approximately 0.7%. During the six months ended June 30, 2025, leasing commissions were approximately $316,000 compared to approximately $231,000 for the six months ended June 30, 2024, an increase of approximately $85,000 (36.8%). Tenant concessions were approximately $30,000 for the six months ended June 30, 2025, compared to approximately $78,000 for the six months ended June 30, 2024, a decrease of approximately $48,000 (61.5%). Tenant improvements were approximately $1,779,000 for the six months ended June 30, 2025, compared to** **approximately $1,682,000 for the six months ended June 30, 2024, an increase of approximately $97,000 (5.8%).

Previous wording

Hamilton accounted for approximately 1.2% of the repair and maintenance expenses paid for by the Partnership during the three months ended March 31, 2025 and 0.8% during the three months ended March 31, 2024. 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.

Current wording

Hamilton accounted for approximately 1.2% of the repair and maintenance expenses paid for by the Partnership during the six months ended June 30, 2025 and 0.5% during the six months ended June 30, 2024. 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 $32,000 (82.8%) and approximately $50,000 (61.6%) of the legal services paid for by the Partnership during the three months ended March 31, 2025 and 2024 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 $41,000 (100.0%) and approximately $89,000 (43.7%) of the legal services paid for by the Partnership during the six months ended June 30, 2025 and 2024, 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 three months ended March 31, 2025, Hamilton provided the Partnership approximately $96,000 in construction and architectural services, compared to approximately $105,000 for the three months ended March 31, 2024.

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 six months ended June 30, 2025, Hamilton provided the Partnership approximately $225,000 in construction and architectural services, compared to approximately $330,000 for the six months ended June 30, 2024.

Previous wording

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the three months ended March 31, 2025 and 2024, 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.

Current wording

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the six months ended June 30, 2025 and 2024, 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.

Previous wording

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

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.

Previous wording

Rental Property Held f*or Sale:*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. 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.

Current wording

Rental Property Held f*or Sale:*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. 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. As of June 30, 2025, the Partnership has designated two properties with a value of approximately $3,000,000 as properties held for sale.

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

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

Previous wording

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. Management has reclassified the Treasury Bills to “available for sale”, as they may be sold in conjunction with the upcoming purchase of the Hill Estate Properties. See subsequent events Note 19. The carrying* *value approximates fair value.

Current wording

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.

Previous wording

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $6,233,000 during the three months ended March 31, 2025, compared to approximately $5,751,000 for the three months ended March 31, 2024, an increase of approximately $482,000 (8.4%).

Current wording

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $7,063,000 during the three months ended June 30, 2025, compared to approximately $6,538,000 for the three months ended June 30, 2024, an increase of approximately $525,000 (8.0%).

Previous wording

The Partnership properties with the largest increases in rental income include Hamilton Oaks, Westgate Apartments, WCB Associates, Redwood Hills, Hamilton Green Apartments, and 62 Boylston Street, and with increases of $134,000, $96,000, $94,000, $83,000, $76,000 and $72,000 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, excluding the Hill Estates, 26 Brighton Avenue, and 90 Concord properties rental income of approximately $410,000 include Westgate Apartments, Hamilton Green Apartments, WCB Associates, Hamilton Oaks, Redwood Hills, and School Street, with increases of $102,000, $89,000, $75,000, $72,000, $58,000 and $54,000 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

Interest expense for the three months ended March 31, 2025 was approximately $3,791,000 compared to approximately $3,907,000 for the three months ended March 31, 2024, a decrease of approximately $116,000 (3.0%).

Current wording

Interest expense for the three months ended June 30, 2025 was approximately $4,136,000 compared to approximately $3,900,000 for the three months ended June 30, 2024, an increase of approximately $236,000 (6.1%). Excluding interest expense for the Hill Estates of approximately $149,000, interest expense increased approximately $87,000 (2.2%).

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 $362,000 for the three months ended March 31, 2025, compared to net income of approximately $441,000 for the three months ended March 31, 2024, a decrease in income of approximately $79,000 (17.8%). Included in the income for the three months ended March 31, 2025 is depreciation and amortization expense of approximately $651,000.

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 $485,000 for the three months ended June 30, 2025, compared to net income of approximately $321,000 for the three months ended June 30, 2024, an increase in income of approximately $164,000 (51%). Included in the income for the three months ended June 30, 2025 is depreciation and amortization expense of approximately $658,000.

Previous wording

As a result of the changes discussed above, net income for the three months ended March 31, 2025 was approximately $3,796,000 compared to net income of approximately $3,463,000 for the three months ended March 31, 2024, an increase in income of approximately $332,000 (9.6%).

Current wording

As a result of the changes discussed above, net income for the three months ended June 30, 2025 was approximately $4,150,000 compared to net income of approximately $4,073,000 for the three months ended June 30, 2024, an increase in income of approximately $77,000 (1.9%).

Previous wording

Expenses for the three months ended March 31, 2025 were approximately $14,455,000 compared to approximately $14,141,000 for the three months ended March 31, 2024, an increase of approximately $314,000 (2.2%). The factors contributing to the increase are an increase in operating expenses of approximately $633,000 (23.9%),which included an increase in snow removal $464,000 and heating expense $262,000 an increase in taxes and insurance of approximately $213,000 (8.6%), partially offset by a decrease in depreciation and amortization expense of approximately $323,000 (7.6%).

Current wording

Operating expenses for the six months ended June 30, 2025 were approximately $28,632,000 compared to approximately $27,654,000 for the six months ended June 30, 2024, an increase of approximately $978,000 (3.5%), Excluding operating costs for Hill Estates of approximately $701,000, operating expenses increased approximately $277,000 (1.0%). The factors contributing to the increase are an increase in taxes and insurance expense of approximately $394,000 (7.9%), an increase in snow removal costs of approximately $432,000 (96.7%), partially offset by a decrease in depreciation and amortization expense of approximately $636,000 (7.5%).

Previous wording

The Partnership’s principal source of cash during the first three months of 2025 and 2024 was the collection of rents. The Partnership’s principal use of cash during the first three months of 2025 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.

Current wording

The Partnership’s principal source of cash during the first six 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 six 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.

Previous wording

The majority of cash and cash equivalents of $30,863,737 at March 31, 2025 and $17,615,940 at December 31, 2024 were held in interest bearing accounts at creditworthy financial institutions.

Current wording

The majority of cash and cash equivalents of $16,677,504 at June 30, 2025 and $17,615,940 at December 31, 2024 were held in interest bearing accounts at creditworthy financial institutions.

Previous wording

The increase in cash of $13,247,797 for the three months ended March 31, 2025 is summarized as follows:

Current wording

The decrease in cash of $938,436 for the six months ended June 30, 2025 is summarized as follows:

Previous wording

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 increase in cash used in investing activities is primarily for the improvement of rental properties, including the Mill Street Development project, offset by the proceeds of U.S. Treasury bills. Financing activities include mortgage principal payments and distributions to partners, and repurchase of depositary receipts.

Current wording

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, 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.

Previous wording

During 2025, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $8,345,000. 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 $6,233,000 for the three months ended March 31,2025. Beyond the Mill Street Development Project, the most significant improvements were made at Residences at Captain Parker, North Beacon apartments, Redwood Hills, Hamilton Oaks, Commonwealth 1144, and School Street at a cost of approximately $589,000, $246,000, $239,000, $181,000, $129,000 and $98,000 respectively.

Current wording

During 2025, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $5,214,000. 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 $12,346,000 for the six months ended June 30,2025. Beyond the Mill Street Development Project, the most significant improvements were made at Residences at Captain Parker, Staples Plaza, 62 Boylston Street, Hamilton Oaks, Courtyard at North Beacon, and Redwood Hills, at a cost of approximately $664,000, $655,000, $527,000, $419,000, $416,000 and 352,000, respectively.

Previous wording

During the three months ended March 31, 2025, the Partnership received distributions of approximately $482,000 from the investment properties. For the three months ended March 31, 2024, the Partnership received $577,000 in distributions from the investment properties. Included in these net distributions is the amount from Dexter Park of approximately $200,000**.**The decrease in distributions from the investment properties relates to the refinancing of Hamilton on Main in September of 2024,which increased quarterly mortgage interest expense.

Current wording

During the six months ended June 30, 2025, the Partnership received distributions of approximately $837,000 from the investment properties. For the six months ended June 30, 2024, the Partnership received $1,523,000 in distributions from the investment properties. Included in these net distributions is the amount from Dexter Park of approximately $400,000** and $1,100,000 for the six months ended June 30, 2025 and 2024,respectively. **

Previous wording

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 $30.3 million to be spent over the two year period, with approximately $15 million spent in 2024 and approximately $15.3 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**.**

Current wording

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**.**

Previous wording

As of March 31, 2025, 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 March 31, 2025,our proportionate share of the non-recourse debt related to these investments was approximately $73,885,000. See Note 15 to the Consolidated Financial Statements.

Current wording

As of June 30, 2025, 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 June 30, 2025, our proportionate share of the non-recourse debt related to these investments was approximately $73,854,000. See Note 15 to the Consolidated Financial Statements.

Previous wording

As of March 31, 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 $23 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 $30.3 million.

Current wording

As of June 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 $28 million, and the total investment upon completion is anticipated to be approximately $33 million. The partnership is using cash reserves to fund this construction, but will finance a portion of construction costs upon completion of the project. In connection with the Mill Street development project, the Partnership has entered into a contract with a general contractor with a current contract value of approximately**$**30.7 million.