Company: NEN
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001104659-25-108441
Chunk: 1

Company: NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 majority of these leases will mature during the second and third quarters of the year.

During the third quarter of 2025, rents increased an average of 5.7% for renewals and decreased an average of 0.1% for new leases. For the balance of 2025, management expects a rental market with slowing rent growth. 

For the third quarter of 2025, consolidated revenue, excluding Hill Estates, increased by 2.6%, operating expenses increased by 5.1%, and Income before Other Income (Expense) decreased by 2.7%, as compared to the third quarter of 2024.

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 September 30, 2025, the Partnership was in compliance with the financial covenants except for the liquidity covenant, and did not incur an unused line fee. 

From the start of the Stock Repurchase Program in 2007 through September 30, 2025, the Partnership has purchased 1,554,701 Depositary Receipts. During the nine months ended September 30, 2025, the Partnership purchased a total of 4,343 Depositary Receipts.