NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2003 OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-12138

New England Realty Associates Limited Partnership

(Exact Name of Registrant as Specified in Its Charter)

Massachusetts		04-2619298
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

39 Brighton Avenue, Allston, Massachusetts		02134
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code (617) 783-0039

Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check ý whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

INDEX

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements.

	Consolidated Balance Sheets as of June 30, 2003 (unaudited) and December 31, 2002 (audited)	3

	Consolidated Statements of Income for the Three Months Ended June 30, 2003 and June 30, 2002, and the Six Months Ended June 30, 2003 and June 30, 2002 (all unaudited)	4

	Consolidated Statement of Changes in Partners’ Capital for the Six Months Ended June 30, 2003 And June 30, 2002 (all unaudited)	5

	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2003 and June 30, 2002 (all unaudited)	6

	Notes to Financial Statements	7

	Independent Accountant’s Review Report	17

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	28

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	29

Item 2.	Changes in Securities and Use of Proceeds	29

Item 3.	Defaults Upon Senior Securities	29

Item 4.	Submission of Matters to a Vote of Security Holders	29

Item 5.	Other Information	29

Item 6.	Exhibits and Reports on Form 8-K	29

SIGNATURES

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30, 2003		December 31, 2002
	(Unaudited)
Assets
Rental Properties	$	103,806,017	$	79,172,450
Cash and Cash Equivalents	10,200,343		18,974,446
Rents Receivable	631,094		475,906
Real Estate Tax Escrows	536,672		391,253
Prepaid Expenses and Other Assets	3,200,039		2,556,572
Investment in Partnership	1,349,231		1,430,269
Financing and Leasing Fees	683,243		684,322

Total Assets	$	120,406,639	$	103,685,218

Liabilities and Partners’ Capital
Mortgage Notes Payable	$	99,423,296	$	82,871,406
Accounts Payable and Accrued Expenses	1,414,222		1,676,628
Advance Rental Payments and Security Deposits	3,605,503		3,258,958

Total Liabilities	104,443,021		87,806,992

Commitments and Contingent Liabilities (Notes 9 and 16)

Partners’ Capital 173,252 units outstanding in 2003 and 2002	15,963,618		15,878,226

Total Liabilities and Partners’ Capital	$	120,406,639	$	103,685,218

See notes to consolidated financial statements.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Three Months Ended June 30				Six Months Ended June 30
	2003		2002		2003		2002

Revenue
Rental income	$	7,773,317	$	7,181,361	$	15,234,609	$	14,398,440
Laundry and sundry income	80,266		61,029		151,066		123,189

	7,853,583		7,242,390		15,385,675		14,521,629
Expense
Administrative	356,740		302,525		720,556		671,934
Depreciation and amortization	1,261,480		1,152,291		2,374,343		2,190,672
Interest	1,839,294		1,606,222		3,498,461		3,190,878
Management fees	324,020		294,719		620,358		590,634
Operating	628,211		534,542		1,619,027		1,242,747
Renting	142,356		80,065		205,321		145,030
Repairs and maintenance	1,045,828		852,262		1,858,939		1,528,222
Taxes and insurance	858,913		737,289		1,654,122		1,466,599
	6,456,842		5,559,915		12,551,127		11,026,716

Income from Operations	1,396,741		1,682,475		2,834,548		3,494,913

Other Income (Loss)