Company: NEN
Filing Date: 2025-09-03
Form Type: 8-K/A
Source: 0001104659-25-087096
Chunk: 9

Company: NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
Filing Date: 2025-09-03
Form: 8-K/A
Chunk 9
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 statements are not necessarily
indicative of the results that actually would have been achieved if the acquisition and financing had occurred as assumed. They
should be read in conjunction with the historical financial statements of the Partnership, included in its Form 10-K for the year ended
December 31, 2024, its Form 10-Q for the three months ended March 31, 2025, and the historical operating summary of
Hill Estates et al elsewhere herein.

As previously mentioned, on June 18, 2025,
wholly owned subsidiaries of the Partnership closed on the Hill Estates properties pursuant to a purchase agreement dated April
15, 2025, pursuant to which wholly owned subsidiaries of the Partnership acquired the mixed use property comprising 396 residential
units, three commercial properties, and two non-contiguous commercial properties in Belmont, Massachusetts for an aggregate purchase
price of $175,000,000. The purchase was funded through cash proceeds from the sale of the Partnership’s U.S. Treasury bills,
additional borrowings on the Partnership’s Master Credit Facility of $40,000,000 and the proceeds of an interim mortgage loan
of $67,500,000 due December 17, 2025, described in items 2.03 and filed as exhibits 10.1,10.2,10.3 and 10.4 to the
Partnership’s Form 8-K filed with the SEC on June 25, 2025. The purchase agreement was filed as Exhibit 1.01 to the
Partnership’s Form 8-K filed with the Securities and Exchange Commission on April 17, 2025.

The Partnership’s management considered
many factors in assessing the acquisition of the Hill Estates properties. These factors included the level of rental income of the property,
the availability of rental units among Hill Estates competitors in the Belmont market place and its occupancy level. Management also
considered potential changes in expenses due to economies of scale expected to be obtained via Hill Estates’ proximity to other properties
of the Partnership, and expense reductions expected from planned changes, as well as other matters.

The Partnership does not have a material relationship
or significant business activities with the seller of the Purchased Property and the acquisition is not an affiliated transaction.

Pro forma information is intended to provide investors
with information about the impact of transactions by showing how specific transactions might have affected historical financial statements,
illustrating the scope of the change in the historical financial position and results of operations. The adjustments made to historical