<PAGE>   1
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

(Mark One)

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

FOR THE QUARTERLY PERIOD ENDED           March 31, 2000
                               -------------------------------------------------

                                       OR

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

FOR THE TRANSITION PERIOD FROM            N/A
                              --------------------------------------------------

COMMISSION FILE NUMBER             0-15680
                      ----------------------------------------------------------

               JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
--------------------------------------------------------------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

      Massachusetts                                        04-2921566
-------------------------------             ------------------------------------
(STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)

                     200 Clarendon Street, Boston, MA 02116
--------------------------------------------------------------------------------
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
                                   (ZIP CODE)

                                 (800) 722-5457
--------------------------------------------------------------------------------
               REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:

                                       N/A
--------------------------------------------------------------------------------
              (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
                         IF CHANGED SINCE LAST REPORT)

INDICATE BY CHECK MARK 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  X      No
                                       --         ---


<PAGE>   2


               JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)

                                      INDEX



PART I:         FINANCIAL INFORMATION                                    PAGE

   Item 1   -     Financial Statements:

                  Balance Sheets at March 31, 2000 and
                  December 31, 1999                                        3

                  Statements of Operations for the Three
                  Months Ended March 31, 2000 and 1999                     4

                  Statements of Partners' Equity for the
                  Three Months Ended March 31, 2000 and
                  for the Year Ended December 31, 1999                     5

                  Statements of Cash Flows for the Three
                  Months Ended March 31, 2000 and 1999                     6

                  Notes to Financial Statements                         7-11

   Item 2   -     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations        12-15


PART II:        OTHER INFORMATION                                         16



                                       2

<PAGE>   3

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                          PART I: FINANCIAL INFORMATION

                          ITEM 1: FINANCIAL STATEMENTS

                                 BALANCE SHEETS
                                   (UNAUDITED)

                                     ASSETS


                                                   MARCH 31,        DECEMBER 31,
                                                     2000              1999
                                                     ----              ----

Cash and cash equivalents                         $ 2,205,230       $ 2,476,260
                                                  -----------       -----------


       Total assets                               $ 2,205,230       $ 2,476,260
                                                  ===========       ===========


                        LIABILITIES AND PARTNERS' EQUITY

Liabilities:

Accounts payable and accrued expenses             $   100,659       $   266,759
Accounts payable to affiliates                        430,131           480,542
                                                  -----------       -----------
       Total liabilities                              530,790           747,301

Partners' equity/(deficit):

   General Partner's deficit                         (240,536)         (239,991)
   Limited Partners' equity                         1,914,976         1,968,950
                                                  -----------       -----------

       Total partners' equity                       1,674,440         1,728,959
                                                  -----------       -----------

       Total liabilities and partners' equity     $ 2,205,230       $ 2,476,260
                                                  ===========       ===========




                        See Notes to Financial Statements



                                       3
<PAGE>   4

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


                                                     THREE MONTHS ENDED
                                                          MARCH 31,
                                                 2000                  1999
                                                 ----                  ----
Income:

     Rental income                            $        --          $   526,533
     Interest income                               34,059               40,857
     Gain on sale                                      --            1,667,428
                                              -----------          -----------
       Total income                                34,059            2,280,818

Expenses:

     General and administrative expenses           87,903              254,690
     Property operating expenses                      675               75,791
     Management fee                                    --                9,552
                                              -----------          -----------

       Total expenses                              88,578              340,033
                                              -----------          -----------

       Net income (loss)                      ($   54,519)         $ 1,940,785
                                              ===========          ===========


Allocation of net income (loss):

     General Partner                          ($      545)         $    19,408
     John Hancock Limited Partner                      --              229,056
     Investors                                    (53,974)           1,692,321
                                              -----------          -----------
                                              ($   54,519)         $ 1,940,785
                                              ===========          ===========

Net income (loss) per Unit                    ($     0.59)         $     18.47
                                              ===========          ===========





                        See Notes to Financial Statements



                                       4
<PAGE>   5

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                         STATEMENTS OF PARTNERS' EQUITY
                                   (UNAUDITED)

                      THREE MONTHS ENDED MARCH 31, 2000 AND
                          YEAR ENDED DECEMBER 31, 1999

<TABLE>
<CAPTION>

                                                                        GENERAL         LIMITED
                                                                        PARTNER         PARTNERS            TOTAL
                                                                        -------         --------            -----

<S>                                                                    <C>            <C>               <C>
Partners' equity/(deficit) at January 1, 1999
   (91,647 Units outstanding)                                          $(253,231)     $ 20,653,314      $ 20,400,083

Less:  Cash distributions                                                   (795)      (20,073,849)      (20,074,644)

Add:   Net income                                                         14,035         1,389,485         1,403,520
                                                                       ---------      ------------      ------------

Partners' equity/(deficit) at December 31, 1999
   (91,647 Units outstanding)                                           (239,991)        1,968,950         1,728,959

Less:  Cash distributions                                                     --                --                --

Add:   Net loss                                                             (545)          (53,974)          (54,519)
                                                                       ---------      ------------      ------------
Partners' equity/(deficit) at March 31, 2000
    (91,647 Units outstanding)                                         $(240,536)     $  1,914,976      $  1,674,440
                                                                       =========      ============      ============
</TABLE>





                        See Notes to Financial Statements


                                       5
<PAGE>   6


                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                            THREE MONTHS ENDED
                                                                                 MARCH 31,
                                                                          2000              1999
                                                                          ----              ----

<S>                                                                   <C>               <C>
Operating activities:

   Net income (loss)                                                  $    (54,519)     $  1,940,785

   Adjustments to reconcile net income to
   net cash provided by operating activities:

      Depreciation                                                            --                --
      Amortization of deferred expenses                                       --                --
      Gain on sale of property                                                --          (1,677,428)
                                                                      ------------      ------------
                                                                           (54,519)          263,357

   Changes in operating assets and liabilities:
      Decrease/(increase) in restricted cash                                  --              27,102
      Decrease/(increase) in other assets                                     --             (10,500)
      Decrease in accounts payable and accrued
         expenses                                                         (166,100)         (157,553)
      Increase/(decrease) in accounts payable to affiliates                (50,411)          107,492
                                                                      ------------      ------------

           Net cash provided by (used in) operating activities            (271,030)          229,898

Investing activities:

   Proceeds from sales of properties                                          --          11,436,275
   Increase in deferred expenses                                              --             (12,934)
                                                                      ------------      ------------

           Net cash provided by investing activities                          --          11,423,341

Financing activities:

   Cash distributed to Partners                                               --          (4,586,811)
                                                                      ------------      ------------

           Net cash used in financing activities                              --          (4,586,811)
                                                                      ------------      ------------

           Net increase (decrease) in cash and
               cash equivalents                                           (271,030)        7,066,428

           Cash and cash equivalents at
               beginning of year                                         2,476,260         2,055,017
                                                                      ------------      ------------

           Cash and cash equivalents at
               end of period                                          $  2,205,230      $  9,121,445
                                                                      ============      ============

</TABLE>





                        See Notes to Financial Statements

                                       6
<PAGE>   7

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.     ORGANIZATION OF PARTNERSHIP

         John Hancock Realty Income Fund Limited Partnership (the "Partnership")
         was formed under the Massachusetts Uniform Limited Partnership Act on
         June 12, 1986. As of March 31, 2000, the Partnership consisted of John
         Hancock Realty Equities, Inc. (the "General Partner"), a wholly-owned,
         indirect subsidiary of John Hancock Mutual Life Insurance Company; John
         Hancock Realty Funding, Inc. (the "John Hancock Limited Partner"); and
         3,614 Investor Limited Partners (the "Investors"), owning 91,647 Units
         of Investor Limited Partnership Interests (the "Units"). The John
         Hancock Limited Partner and the Investors are collectively referred to
         as the Limited Partners. The initial capital of the Partnership was
         $2,000, representing capital contributions of $1,000 from the General
         Partner and $1,000 from the John Hancock Limited Partner. The Amended
         Agreement of Limited Partnership of the Partnership (the "Partnership
         Agreement") authorized the issuance of up to 100,000 Units of Limited
         Partnership Interests at $500 per unit. During the offering period,
         which terminated on September 9, 1987, 91,647 Units were sold and the
         John Hancock Limited Partner made additional capital contributions of
         $7,330,760. There have been no changes in the number of Units
         outstanding subsequent to the termination of the offering period.

         The Partnership is engaged in the business of acquiring, improving,
         holding for investment and disposing of existing, income-producing,
         commercial and industrial properties on an all-cash basis, free and
         clear of mortgage indebtedness. Although the Partnership's properties
         were acquired and are held free and clear of mortgage indebtedness, the
         Partnership may incur mortgage indebtedness on its properties under
         certain circumstances, as specified in the Partnership Agreement.

         The latest date on which the Partnership is due to terminate is
         December 31, 2016, unless it is sooner terminated in accordance with
         the terms of the Partnership Agreement. It is expected that in the
         ordinary course of the Partnership's business, the properties of the
         Partnership will be disposed of, and the Partnership terminated, before
         December 31, 2016.

         As initially stated in its Prospectus, it was expected that the
         Partnership would be dissolved upon the sale of its last remaining
         property, which at that time was expected to be within seven to ten
         years following the date such property was acquired by the Partnership.
         During 1999, the Partnership sold the last four properties in its
         portfolio resulting in the termination of the operations of the
         Partnership. The Partnership will be dissolved in accordance with the
         terms of the Partnership Agreement, as soon as reasonably practicable.

2.     SIGNIFICANT ACCOUNTING POLICIES

         The accompanying unaudited financial statements have been prepared in
         accordance with generally accepted accounting principles for interim
         financial information and with the instructions to Form 10-Q and Rule
         10-01 of Regulation S-X. Accordingly, they do not include all of the
         information and footnotes required by generally accepted accounting
         principles for complete financial statements. In the opinion of
         management, all adjustments (consisting of normal recurring accruals)
         considered necessary for a fair presentation have been included.
         Operating results for the three-month period ended March 31, 2000 are
         not necessarily indicative of the results that may be expected for the
         year ending December 31, 2000. For further information, refer to the
         financial statements and footnotes thereto included in the
         Partnership's Annual Report on Form 10-K for the year ended December
         31, 1999.

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         date of the financial statements and the reported amounts of revenue
         and expenses during the reporting period. Actual results may differ
         from those estimates.

         Cash equivalents are highly liquid investments with maturities of three
         months or less when purchased. These investments are recorded at cost
         plus accrued interest, which approximates market value. Restricted cash
         represents funds restricted for tenant security deposits and other
         escrows.


                                       7

<PAGE>   8
                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)

2.     SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Property held for sale is recorded at the lower of its carrying amount,
         at the time the property is listed for sale, or its fair value, less
         cost to sell. Carrying amount includes the property's cost as described
         below, less accumulated depreciation thereon and less any property
         write-downs for impairment in value and plus any related unamortized
         deferred expenses.

         Investments in property are recorded at cost less any property
         write-downs for permanent impairment in values. Cost includes the
         initial purchase price of the property plus acquisition and legal fees,
         other miscellaneous acquisition costs, and the cost of significant
         improvements.

         The Partnership measures impairment in value in accordance with
         Financial Accounting Standards Board Statement No. 121, "Accounting for
         the Impairment of Long-Lived Assets to Be Disposed Of" ("Statement
         121"). Statement 121 requires impairment losses to be recorded on
         long-lived assets used in operations where indicators of impairment are
         present and the undiscounted cash flows estimated to be generated by
         those assets are less than the assets' carrying amounts.

         Depreciation has been provided on a straight-line basis over the
         estimated useful lives of the various assets: thirty years for the
         buildings and five years for related improvements. Maintenance and
         repairs are charged to operations as incurred.

         Deferred expenses relating to tenant improvements and lease commissions
         are amortized on a straight-line basis over the terms of the leases to
         which they relate. During 1993, the Partnership reduced the period over
         which its remaining deferred acquisition fees are amortized from thirty
         years, the estimated useful life of the buildings owned by the
         Partnership, to four and one-half years, the then estimated remaining
         life of the Partnership.

         The net income per Unit for the periods hereof are computed by dividing
         the Investors' share of net income by the number of Units outstanding
         at the end of such periods.

         No provision for income taxes has been made in the financial statements
         as such taxes are the responsibility of the individual partners and not
         of the Partnership.

3.     THE PARTNERSHIP AGREEMENT

         Distributable Cash from Operations (defined in the Partnership
         Agreement) is distributed 99% to the Limited Partners and 1% to the
         General Partner. The Limited Partners' share of Distributable Cash from
         Operations is distributed as follows: first, to the Investors until
         they receive a 7% non-cumulative, non-compounded annual cash return on
         their Invested Capital (defined in the Partnership Agreement); second,
         to the John Hancock Limited Partner until it receives a 7%
         non-cumulative, non-compounded annual cash return on its Invested
         Capital; and third, to the Investors and the John Hancock Limited
         Partner in proportion to their respective Capital Contributions
         (defined in the Partnership Agreement). However, any Distributable Cash
         from Operations which is available as a result of the reduction of
         working capital reserves funded by Capital Contributions of the
         Investors will be distributed 100% to the Investors.

         Cash from Sales or Financings (defined in the Partnership Agreement) is
         first used to pay all debts and liabilities of the Partnership then due
         and is then used to fund any reserves for contingent liabilities. Cash
         from Sales or Financings is then distributed as follows: first, to the
         Limited Partners until they receive an amount equal to their Invested
         Capital with the distribution being made between the Investors and the
         John Hancock Limited Partner in proportion to their respective Capital
         Contributions; second, to the Investors until they have received, with
         respect to all previous distributions during the year, their Cumulative
         Return on Investment (defined in the Partnership Agreement); third, to
         the John Hancock Limited Partner until it has received, with respect to
         all previous distributions during the year, its Cumulative Return on
         Investment; fourth, to the General Partner to pay any Subordinated
         Disposition Fees (defined in the Partnership Agreement); and fifth, 99%
         to the Limited Partners and 1% to the General Partner, with the
         distribution being made between the Investors and the John Hancock
         Limited Partner in proportion to their respective Capital
         Contributions.




                                       8
<PAGE>   9
                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)

3.     THE PARTNERSHIP AGREEMENT (CONTINUED)

         Cash from the sale of the last of the Partnership's properties is to be
         distributed in the same manner as Cash from Sales or Financings, except
         that before any other distribution is made to the Partners, each
         Partner shall first receive from such cash, an amount equal to the then
         positive balance, if any, in such Partner's Capital Account after
         crediting or charging to such account the profits or losses for tax
         purposes from such sale. To the extent, if any, that a Partner is
         entitled to receive a distribution of cash based upon a positive
         balance in its capital account prior to such distribution, such
         distribution will be credited against the amount of such cash the
         Partner would have been entitled to receive based upon the manner of
         distribution of Cash from Sales or Financings, as specified in the
         previous paragraph.

         Profits from the normal operations of the Partnership for each fiscal
         year are allocated to the Limited Partners and General Partner in the
         same amounts as Distributable Cash from Operations for that year. If
         such profits are less than Distributable Cash from Operations for any
         year, they are allocated in proportion to the amounts of Distributable
         Cash from Operations for that year. If such profits are greater than
         Distributable Cash from Operations for any year, they are allocated 99%
         to the Limited Partners and 1% to the General Partner, with the
         allocation made between the John Hancock Limited Partner and the
         Investors in proportion to their respective Capital Contributions.
         Losses from the normal operations of the Partnership are allocated 99%
         to the Limited Partners and 1% to the General Partner, with the
         allocation made between the John Hancock Limited Partner and the
         Investors in proportion to their respective Capital Contributions.
         Depreciation deductions are allocated 1% to the General Partner and 99%
         to the Investors, and not to the John Hancock Limited Partner.

         Profits and Losses from Sales or Financings are generally allocated 99%
         to the Limited Partners and 1% to the General Partners. In connection
         with the sale of the last of the Partnership's properties, and
         therefore the dissolution of the Partnership, profits will be allocated
         to any Partners having a deficit balance in their Capital Account in an
         amount equal to the deficit balance. Any remaining profits will be
         allocated in the same order as cash from the sale would be distributed.

         Neither the General Partner nor any Affiliate (as defined in the
         Partnership Agreement) of the General Partner shall be liable,
         responsible or accountable in damages to any of the Partners or the
         Partnership for any act or omission of the General Partner in good
         faith on behalf of the Partnership within the scope of the authority
         granted to the General Partner by the Partnership Agreement and in the
         best interest of the Partnership, except for acts or omissions
         constituting fraud, negligence, misconduct or breach of fiduciary duty.
         The General Partner and its Affiliates performing services on behalf of
         the Partnership shall be entitled to indemnity from the Partnership for
         any loss, damage, or claim by reason of any act performed or omitted to
         be performed by the General Partner in good faith on behalf of the
         Partnership and in a manner within the scope of the authority granted
         to the General Partner by the Partnership Agreement and in the best
         interest of the Partnership, except that they shall not be entitled to
         be indemnified in respect of any loss, damage, or claim incurred by
         reason of fraud, negligence, misconduct, or breach of fiduciary duty.
         Any indemnity shall be provided out of and to the extent of Partnership
         assets only. The Partnership shall not advance any funds to the General
         Partner or its Affiliates for legal expenses and other costs incurred
         as a result of any legal action initiated against the General Partner
         or its Affiliates by a Limited Partner in the Partnership, except under
         certain specified circumstances.



                                       9

<PAGE>   10

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)


4.     TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES

         Fees and expenses incurred or paid by the General Partner or its
         Affiliates on behalf of the Partnership and to which the General
         Partner or its Affiliates are entitled to reimbursement from the
         Partnership were as follows:

                                                           Three Months Ended
                                                               March 31,
                                                          2000           1999
                                                          ----           ----

         Reimbursement for operating expenses            $14,570        $48,628
         Partnership management fee expense                    -          9,552
                                                         -------        -------
                                                         $14,570        $58,180
                                                         =======        =======

         These expenses are included in expenses on the Statements of
         Operations.

         The Partnership provides indemnification to the General Partner and its
         Affiliates for any acts or omissions of the General Partner in good
         faith on behalf of the Partnership, except for acts or omissions
         constituting fraud, negligence, misconduct or breach of fiduciary duty.
         The General Partner believes that this indemnification applies to the
         legal proceedings described in Note 6. Accordingly, included in the
         Statements of Operations for the three months ended March 31, 2000 and
         1999 is $0 and $101,396, respectively, representing the Partnership's
         share of costs incurred by the General Partner and its Affiliates
         relating to such legal proceedings. Through March 31, 2000, the
         Partnership has accrued a total of $534,861 as its share of the costs
         incurred by the General Partner and its Affiliates resulting from this
         matter.

         Accounts payable to affiliates represents amounts due to the General
         Partner or its Affiliates for various services provided to the
         Partnership, including amounts to indemnify the General Partner or its
         Affiliates for claims incurred by them in connection with their actions
         as General Partner of the Partnership. All amounts accrued by the
         Partnership to indemnify the General Partner or its Affiliates for
         legal fees incurred by them shall not be paid unless or until all
         conditions set forth in the Partnership Agreement for such payment have
         been fulfilled.

         The General Partner serves in a similar capacity for two other
         affiliated real estate limited partnerships.

5.     FEDERAL INCOME TAXES

         A reconciliation of the net income reported on the Statements of
         Operations to the net income reported for federal income tax purposes
         is as follows:
<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                                        March 31,
                                                                 2000             1999
                                                                 ----             ----

<S>                                                           <C>              <C>
         Net income/(loss) per Statements of Operations       ($54,519)        $1,940,785

         Add/(deduct):     Excess of tax depreciation
                             over book depreciation                  -            (96,401)
                           Excess of tax amortization
                             over book amortization                  -             (2,507)
                                                              --------         ----------

         Net income/(loss) for federal income tax purposes    ($54,519)        $1,841,877
                                                              ========         ==========
</TABLE>


                                       10

<PAGE>   11

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)

6.     CONTINGENCIES

         In February 1996, a putative class action complaint was filed in the
         Superior Court in Essex County, New Jersey by a single investor in a
         limited partnership affiliated with the Partnership. The complaint
         named as defendants the Partnership, the General Partner, certain other
         Affiliates of the General Partner, and certain unnamed officers,
         directors, employees and agents of the named defendants. The plaintiff
         sought unspecified damages stemming from alleged misrepresentations and
         omissions in the marketing and offering materials associated with the
         Partnership and two limited partnerships affiliated with the
         Partnership. On March 18, 1997, the court certified a class of
         investors who were original purchasers in the Partnership.

         A settlement agreement was approved by the court on December 22, 1999.
         Under the terms of the settlement, the defendants have guaranteed
         certain minimum returns to class members on their investments and paid
         fees and expenses to class counsel in an amount determined by the court
         to be $1.5 million. These terms of the settlement will have no
         financial impact on the Partnership.

         In September 1997, a complaint for damages was filed in the Superior
         Court of the State of California for the County of Los Angeles by an
         investor in John Hancock Realty Income Fund-II Limited Partnership
         ("RIF-II"), a limited partnership affiliated with the Partnership. The
         complaint named the General Partner as a defendant. The plaintiff
         sought unspecified damages that allegedly arose from the General
         Partner's refusal to provide, without reasonable precautions on
         plaintiffs use of, a list of investors in the Partnership and in
         RIF-II. Plaintiff alleges that the General Partner's refusal
         unconditionally to provide a list was a breach of contract and a breach
         of the General Partner's' fiduciary duty.

         A settlement agreement was reached on February 18, 2000 terminating all
         litigation between the parties. The settlement will not have a material
         adverse impact on the Partnership's financial position.

         The Partnership provides indemnification to the General Partner and its
         Affiliates for acts or omissions of the General Partner in good faith
         on behalf of the Partnership, except for acts or omissions constituting
         fraud, negligence, misconduct or breach of fiduciary duty. The General
         Partner believes that this indemnification applies to the class action
         complaint described above.

         The Partnership has incurred an aggregate of approximately $1,429,031
         in legal expenses in connection with these legal proceedings. Of this
         amount, approximately $894,170 relates to the Partnership's own defense
         and approximately $534,861 relates to the indemnification of the
         General Partner and its Affiliates for their defense. These expenses
         are funded from the operations of the Partnership.

         During August 1998, the General Partner became aware that the
         Crossroads Square Shopping Center was environmentally contaminated with
         certain hazardous materials. The General Partner then sought to
         determine the scope of the contamination and to determine the impact on
         the future operating costs, repair and maintenance expenses and market
         value of the property. The General Partner estimated that to remediate
         the contamination would cost approximately $450,000. The Partnership
         sold the property on July 13, 1999 to a non-affiliated buyer for a net
         sales price of $8,733,420 after deductions for commissions and selling
         expenses incurred in connection with the sale of the property. The sale
         was not contingent upon the environmental issues, the costs of which
         were factored into the purchase price by the buyer. The General Partner
         has no reason to believe, as of the date of this report, that the
         Partnership will be held responsible for any further environmental
         costs associated with this property. No assurances can be given that no
         environmental liabilities will arise in the future.



                                       11

<PAGE>   12
                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

GENERAL

During the offering period from September 9, 1986 to September 9, 1987, the
Partnership sold 91,647 Units representing gross proceeds (exclusive of the John
Hancock Limited Partner's contribution which was used to pay sales commissions,
acquisition fees and organizational and offering expenses) of $45,823,500. The
proceeds of the offering were used to acquire investment properties and fund
reserves. The Partnership's properties are described more fully in Note 4 to the
Financial Statements included in Item 1 of this Report.

IMPACT OF YEAR 2000

The Partnership participated in the Year 2000 remediation project of its parent,
John Hancock Life Insurance Company (John Hancock). By late 1999, John Hancock
and the Partnership completed their Year 2000 readiness plan to address issues
that could result from computer programs written using two digits to define the
applicable year rather than four to define the applicable year and century. As a
result, John Hancock and the Partnership were prepared for the transition to the
Year 2000 and did not experience any significant Year 2000 problems with respect
to mission critical information technology ("IT") or non-IT systems,
applications or infrastructure. During the date rollover to the year 2000, John
Hancock and the Partnership implemented and monitored their millennium rollover
plan and conducted business as usual on Monday, January 3, 2000.

Since January 3, 2000, the information systems, including mission critical
systems which in the event of a Year 2000 failure would have the greatest impact
on operations, have functioned properly. In addition, neither John Hancock nor
the Partnership experienced any significant Year 2000 issues related to
interactions with material business partners. No disruptions have occurred which
impact John Hancock or the Partnership's ability to process claims, update
customer accounts, process financial transactions, report accurate data to
management and no business interruptions due to Year 2000 issues have been
experienced. While John Hancock and the Partnership continue to monitor their
systems, and those of material business partners, closely to ensure that no
unexpected Year 2000 issues develop, as of the date of this report neither John
Hancock nor the Partnership have reason to expect any such issues.

FORWARD-LOOKING STATEMENTS

In addition to historical information, certain statements contained herein
contain forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Those statements appear in a number of places in this
Report and include statements regarding the intent, belief or expectations of
the General Partner with respect to, among other things, the prospective sale of
Partnership properties, actions that would be taken in the event of lack of
liquidity, unanticipated leasing costs, repair and maintenance expenses,
distributions to the General Partner and to Investors, the possible effects of
tenants vacating space at Partnership properties, the absorption of existing
retail space in certain geographical areas, possible liability for the costs of
remediation of hazardous substances, and the impact of inflation.

Forward-looking statements involve numerous known and unknown risks and
uncertainties, and they are not guarantees of future performance. The following
factors, among others, could cause actual results or performance of the
Partnership and future events to differ materially from those expressed or
implied in the forward-looking statements: general economic and business
conditions; any and all general risks of real estate ownership, including
without limitation adverse changes in general economic conditions and adverse
local conditions, the fluctuation of rental income from properties, changes in
property taxes, utility costs or maintenance costs and insurance, fluctuations
of real estate values, competition for tenants, uncertainties about whether real
estate sales under contract will close; the ability of the Partnership to sell
its properties; and other factors detailed from time to time in the filings with
the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on forward-looking statements,
which reflect the General Partner's analysis only as of the date hereof. The
Partnership assumes no obligation to update forward-looking statements. See also
the Partnership's reports to be filed from time to time with the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.




                                       12
<PAGE>   13
                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)

ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

LIQUIDITY AND CAPITAL RESOURCES

As initially stated in its Prospectus, it was expected that the Partnership
would be dissolved upon the sale of its last remaining property, which at that
time was expected to be within seven to ten years following the date such
property was acquired by the Partnership. The Partnership sold the last property
in its portfolio, Crossroads Square Shopping Center, on July 13, 1999. The sale
of this last remaining property resulted in the termination of the operations of
the Partnership, and the Partnership will be dissolved, in accordance with the
terms of the Partnership Agreement, as soon as reasonably practicable. At such
time as all liabilities with respect to the Partnership are resolved, the
General Partner will make a final distribution of net assets to the Limited
Partners, as soon as practicable. No assurances can be given as to whether any
distribution can be made after all liabilities of the Partnership are resolved.
Such final distribution, if any, will result in the liquidation and termination
of the Partnership. At such time of such final distribution, the outstanding
Units will be canceled, and, in accordance with federal securities laws, they
will be de-registered with the Securities and Exchange Commission, after which
time the Partnership will no longer be required to file periodic reports with
the Commission.

At March 31, 2000, the Partnership had $2,205,230 in cash and cash equivalents.

The Partnership's working capital reserve has a current balance of approximately
$1,674,000. The General Partner anticipates that such amount should be
sufficient to satisfy the Partnership's general liquidity requirements as the
Partnership business is wound down. Liquidity would, however, be materially
adversely affected by significant unanticipated operating and liquidation costs
(including but not limited to litigation expenses). If any or all of these
events were to occur, to the extent that the working capital reserve would be
insufficient to satisfy the cash requirements of the Partnership, it is
anticipated that additional funds would be obtained through a reduction of cash
distributions to Investors, bank loans, short-term loans from the General
Partner or its Affiliates.

There was no cash distribution to the General Partner and Investors during the
three months ended March 31, 2000. As a result of the disposition by the
Partnership of all of its remaining properties during 1999, the General Partner
has determined that it was in the best interests of the Partnership to retain,
rather than distribute to Investors, net cash provided by the Partnership's
normal operations in order to fund cash reserves for contingencies, as is
permitted by the Partnership Agreement. Accordingly, no cash distributions will
be made to Investors until the final distribution, if any, as discussed above.

The Partnership has incurred approximately $528,665 in legal expenses in
connection with the class action lawsuit (see Part II, Item 1 of this Report).
Of this amount, approximately $318,570 relates to the Partnership's own defense
and approximately $210,098 relates to the indemnification of the General Partner
and its Affiliates for their defense. These expenses are funded from the
operations of the Partnership. In addition, the Partnership incurred
approximately $900,365 in legal expenses in connection with the lawsuit filed in
the Superior Court of the State of California for the Count of Los Angeles by an
investor in the Partnership. Of this amount, approximately $575,603 relates to
the Partnership's own defense and approximately $324,762 relates to the
indemnification of the General Partner and its Affiliates for their defense.
These expenses are funded from the operations of the Partnership.




                                       13


<PAGE>   14
                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

RESULTS OF OPERATIONS

The Partnership generated a net loss of $54,519 for the three months ended March
31, 2000 as compared to net income of $1,940,785 for the same period in 1999.
Included in the results for the three months ended March 31, 1999 is a net
non-recurring gain of $1,667,428 resulting from the sales of the Carnegie
Center, Marlboro Square and Warner Plaza properties. Excluding the results of
this gain, net income decreased by $327,876, or 120%, for the three months ended
March 31, 2000 as compared to the prior period. This decrease is due to the
sales of these three properties during 1999.

Rental income for the three months ended March 31, 2000 decreased by $526,533,
or 100%, as compared to the same period in 1999. This decrease is due to the
sales of the Marlboro Square, Carnegie Center, Warner Plaza and Crossroads
Square properties during 1999.

Interest income for the three months ended March 31, 2000 decreased by $6,798,
or 17%, as compared to the same period in 1999. This decrease is primarily due
to a decrease in the balance of the Partnership's working capital reserves. The
Partnership's working capital reserves have decreased as a result of the sales
of the Partnerships properties and a need for fewer reserves as the Partnership
is liquidated.

General and administrative expenses for the three months ended March 31, 2000
decreased by $166,787, or 65%, as compared to the same period in 1999. This
decrease is primarily due to a decrease in legal fees incurred by the
Partnership in connection with the legal proceedings described in Item I of Part
II of this report and to a decrease in the time required by the General Partner
in managing the activities of the Partnership resulting from the sales of the
four remaining properties during 1999.

The Partnership's share of property operating expenses for the three months
ended March 31, 2000 decreased by $75,116, or 99%, as compared to the same
period in 1999. This decrease is due to the sales of the Carnegie Center, Warner
Plaza, Marlboro Square and Crossroads Square properties during 1999.

Management fee expense, which is equal to 3.5% of Cash from Operations (as
defined in the Partnership Agreement), decreased by $9,552, or 100%, for the
three months ended March 31, 2000 as compared to the same period in 1999. This
decrease is due to the decline in Cash from Operations between periods resulting
from the sales of the last four properties in the portfolio during 1999.

The General Partner believes that inflation has had no significant impact on the
Partnership's operations during the three months ended March 31, 2000, and the
General Partner anticipates that inflation will not have a significant impact
during the remainder of 2000.




                                       14
<PAGE>   15

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

CASH FLOW

The following table provides the calculations of Cash from Operations and
Distributable Cash from Operations which are calculated in accordance with
Section 17 of the Partnership Agreement:
<TABLE>
<CAPTION>

                                                                    Three Months Ended
                                                                          March 31,
                                                                   2000            1999
                                                                   ----            ----

<S>                                                             <C>              <C>
Net cash provided by (used in) operating activities (a)         $(271,030)       $ 229,898
Net change in operating assets and liabilities (a)                216,511           33,669
                                                                ---------        ---------
Cash provided by operations (a)                                   (54,519)         263,567
Increase in working capital reserves                                 --           (263,567)
Add:       Accrual basis Partnership
           management fee                                            --              9,552
                                                                ---------        ---------
Cash from operations (b)                                          (54,519)           9,552
Decrease in working capital reserves                               54,519
Less:      Accrual basis Partnership
           management fee                                            --             (9,552)
                                                                ---------        ---------
Distributable cash from operations (b)                          $       0        $       0
                                                                =========        =========

Allocation to General Partner                                   $    --          $    --
Allocation to John Hancock Limited Partner                           --               --
Allocation to Investors                                              --               --
                                                                ---------        ---------
Distributable cash from operations (b)                          $    --          $    --
                                                                =========        =========
</TABLE>


(a)    Net cash provided by operating activities, net change in operating assets
       and liabilities, and cash provided by operations are as calculated in the
       Statements of Cash Flows included in Item 1 of this Report.

(b)    As defined in the Partnership Agreement. Distributable Cash from
       Operations should not be considered as an alternative to net income (i.e.
       not an indicator of performance) or to reflect cash flows or availability
       of discretionary funds.

The amount of future cash distributions will be dependent upon the need to draw
down working capital reserves. As of the date of this report, all of the
properties in the Partnership have been sold. In order to adequately provide for
all future contingencies, the General Partner has determined (as permitted by
the Partnership Agreement) to retain rather than distribute to the Limited
Partners, net cash provided by the Partnership's normal operations in order to
fund cash reserves for contingencies. Accordingly, no cash distributions with
respect to Distributable Cash from Operations will be made to the Limited
Partners. At such time as all liabilities with respect to the Partnership are
resolved, the General Partner will make a final distribution of net assets to
the Limited Partners, in accordance with the terms of the Partnership Agreement.
Such final distribution, if any, will result in the liquidation and termination
of the Partnership.


                                       15

<PAGE>   16
                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                           PART II: OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         In February 1996, a putative class action complaint was filed in the
         Superior Court in Essex County, New Jersey by a single investor in a
         limited partnership affiliated with the Partnership. The complaint
         named as defendants the Partnership, the General Partner, certain other
         affiliates of the General Partner, and certain unnamed officers,
         directors, employees and agents of the named defendants.

         The plaintiff sought unspecified damages stemming from alleged
         misrepresentations and omissions in the marketing and offering
         materials associated with the Partnership and two limited partnerships
         affiliated with the Partnership. The complaint alleged, among other
         things, that the marketing materials for the Partnership and the
         affiliated limited partnerships did not contain adequate risk
         disclosures.

         On March 18, 1997, the court certified a class of investors who were
         original purchasers in the Partnership.

         A settlement agreement was approved by the court on December 22, 1999.
         Under the terms of the settlement, the defendants guaranteed certain
         minimum returns to class members on their investments and paid fees and
         expenses to class counsel in an amount determined by the court to be
         $1.5 million. These terms of the settlement will have no financial
         impact on the Partnership.

         In September 1997, a complaint for damages was filed in the Superior
         Court of the State of California for the County of Los Angeles by an
         Investor in John Hancock Realty Income Fund-II Limited Partnership
         ("RIF-II"), a limited partnership affiliated with the Partnership. The
         complaint named the General Partner as a defendant.

         The plaintiff sought unspecified damages that allegedly arose from the
         General Partner's refusal to provide, without reasonable precautions on
         plaintiff's use of, a list of investors in the Partnership and in
         RIF-II. Plaintiff alleges that the General Partner's refusal
         unconditionally to provide a list was a breach of contract and a breach
         of the General Partner's fiduciary duty.

         A settlement agreement was reached on February 18, 2000 terminating all
         litigation between the parties. The settlement will not have a material
         adverse impact on the Partnership's financial position.

         There are no other material pending legal proceedings, other than
         ordinary routine litigation incidental to the business of the
         Partnership, to which the Partnership is a party or to which any of its
         properties is subject.

ITEM 2.  CHANGES IN SECURITIES
         There were no changes in securities during the first quarter of 2000.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
         There were no defaults upon senior securities during the first quarter
         of 2000.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         There were no matters submitted to a vote of security holders of the
         Partnership during the first quarter of 2000.

ITEM 5.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         (a)  Exhibit 27 Financial Data Schedule
         (b)  There were no reports on Form 8-K filed during the first
              quarter of 2000.



                                       16
<PAGE>   17

                JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                      (A MASSACHUSETTS LIMITED PARTNERSHIP)


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized, on the 15th day of May, 2000.


                                     John Hancock Realty Income Fund
                                     Limited Partnership


                                     By:    John Hancock Realty Equities, Inc.,
                                            General Partner



                                     By:    /s/ John M. Garrison
                                            ------------------------------------
                                            John M. Garrison, President



                                     By:    /s/ Virginia H. Lomasney
                                            ------------------------------------
                                            Virginia H. Lomasney, Treasurer
                                            (Chief Accounting Officer)












                                       17