<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                 _____________

                                   FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

--------------------------------------------------------------------------------

For Quarter Ended June 30, 1999                   Commission File Number 0-11884


                     NEW ENGLAND LIFE PENSION PROPERTIES;
                       A REAL ESTATE LIMITED PARTNERSHIP
            (Exact name of registrant as specified in its charter)



         Massachusetts                                    04-2774875
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

         225 Franklin Street, 25th Fl.
         Boston, Massachusetts                                    02110
(Address of principal executive offices)                        (Zip Code)

              Registrant's telephone number, including area code:
                                (617) 261-9000

--------------------------------------------------------------------------------
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 twelve (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>

                     NEW ENGLAND LIFE PENSION PROPERTIES;
                       A REAL ESTATE LIMITED PARTNERSHIP

                                   FORM 10-Q

                        FOR QUARTER ENDED JUNE 30, 1999

                                    PART I

                             FINANCIAL INFORMATION
                             ---------------------
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

BALANCE SHEETS

<TABLE>
<CAPTION>
                                                         June 30, 1999            December 31, 1998
                                                          (unaudited)                (audited)
                                                         -------------            -----------------
<S>                                                      <C>                      <C>
ASSETS

Cash and cash equivalents                                $     514,428                $     820,108
Interest, rent and other receivables                                -                         3,373
                                                         -------------                -------------

                                                         $     514,428                $     823,481
                                                         =============                =============

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                         $      19,513                $      32,492
                                                         -------------                -------------
Total liabilities                                               19,513                       32,492
                                                         -------------                -------------

Partners' capital (deficit):
     Limited partners ($0 per
       unit; 30,000 units authorized,
       issued and outstanding)                                 416,491                    1,019,890
     General partner                                            78,424                     (228,901)
                                                         -------------                -------------
Total partners' capital                                        494,915                      790,989
                                                         -------------                -------------

                                                         $     514,428                $     823,481
                                                         =============                =============
</TABLE>

          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

STATEMENTS OF OPERATIONS
(Unaudited)

<TABLE>
<CAPTION>
                                                Three Months Ended    Six Months Ended    Three Months Ended    Six Months Ended
                                                   June 30, 1999       June 30, 1999        June 30, 1998         June 30, 1998
                                                   -------------       --------------       -------------         -------------
<S>                                             <C>                   <C>                 <C>                   <C>
INVESTMENT ACTIVITY

Property rentals                                   $           -       $            -       $      15,394         $     153,809
Property operating expenses                                    -                    -              (1,415)              (68,653)
                                                   -------------       --------------       --------------        -------------
     Total real estate operations                                                                  13,979                85,156

Gain on sale of investment                                     -                    -                   -               655,710
                                                   -------------       --------------       -------------         -------------
     Total real estate activity                                -                    -              13,979               740,866

Interest on cash equivalents
     and short term investments                            6,216               16,464             118,034               178,702
                                                   -------------       --------------       -------------         -------------
     Total investment activity                             6,216               16,464             132,013               919,568
                                                   -------------       --------------       -------------         -------------
Portfolio Expenses

General and administrative                                13,747               33,812              18,921                43,287
                                                   -------------       --------------       -------------         -------------
                                                          13,747               33,812              18,921                43,287
                                                   -------------       --------------       -------------         -------------
Net Income (loss)                                  $      (7,531)      $      (17,348)      $     113,092         $     876,281
                                                   =============       ==============       =============         =============
Net income (loss) per limited
     partnership unit                              $       (0.25)      $        (0.57)      $        3.73         $       28.92
                                                   =============       ==============       =============         =============
Cash distributions per
     limited partnership unit                      $           -       $            -       $           -         $        5.91
                                                   =============       ==============       =============         =============
Cash distributions per unit paid on
     certain limited partnership incentive
     units                                         $           -       $        14.40       $           -         $           -
                                                   =============       ==============       =============         =============
</TABLE>
<PAGE>

<TABLE>
<S>                                                <C>                 <C>                  <C>                   <C>
Number of limited partnership
     units outstanding during the
     period                                               30,000               30,000              30,000                30,000
                                                   =============       ==============       =============         =============
</TABLE>

          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
(Unaudited)

<TABLE>
<CAPTION>
                                    Three Months Ended                 Six Months Ended                     Three Months Ended
                                       June 30, 1999                     June 30, 1999                         June 30, 1998
                                    ------------------                 ----------------                     ------------------

                                 General           Limited          General            Limited          General          Limited
                                 Partner          Partners          Partner            Partners         Partner          Partners
                                ---------        ----------        ---------          ----------       ---------        ----------
<S>                            <C>               <C>               <C>               <C>               <C>              <C>
Balance at
beginning of
period                         $ (228,999)       $  731,445        $ (228,901)       $ 1,019,890       $  71,853        $ 7,605,961

Cash
distributions                           -                 -                 -           (278,726)              -                  -

Capital allocation
  (See Note 2)                    307,498          (307,498)          307,498           (307,498)              -                  -

Net income (loss)                     (75)           (7,456)             (173)           (17,175)          1,131            111,961
                               ----------        ----------        ----------        -----------       ---------        -----------

Balance at
end of period                  $   78,424        $  416,491        $   78,424        $   416,491       $  72,984        $ 7,717,922
                               ==========        ==========        ==========        ===========       =========        ===========

<CAPTION>
                                      Six Months Ended
                                        June 30, 1998
                                      ----------------
                               General              Limited
                               Partner              Partners
                              --------             ----------
<S>                           <C>                  <C>
Balance at
beginning of
period                        $ 66,012             $ 7,027,704

Cash
distributions                   (1,791)               (177,300)

Capital allocation
  (See Note 2)                       -                       -

Net income (loss)                8,763                 867,518
                              --------             -----------

Balance at
end of period                 $ 72,984             $ 7,717,922
                              ========             ===========
</TABLE>

          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

SUMMARIZED STATEMENTS OF CASH FLOWS
(Unaudited)


                                                   Six Months Ended June 30,
                                                 ----------------------------
                                                   1999              1998
                                                 ----------       ----------

Net cash provided by (used in) operating
     activities                                  $  (26,954)      $    204,431
                                                 ----------       ------------
Cash flows from investing activities:
     Net proceeds from sale of property                   -          5,795,060
     Deferred disposition fees                            -             95,625
     Decrease in short-term
         investments, net                                 -          1,543,736
                                                 ----------       ------------
              Net cash provided by
              investing activities                        -          7,434,421
                                                 ----------       ------------

Cash flows from financing activity:
     Distributions to partners                     (278,726)          (179,091)
                                                 ----------       ------------

              Net increase (decrease) in
              cash and cash equivalents            (305,680)         7,459,761

Cash and cash equivalents:
     Beginning of period                            820,108          1,309,837
                                                 ----------       ------------
     End of period                               $  514,428       $  8,769,598
                                                 ==========       ============




          (See accompanying notes to unaudited financial statements)
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

NOTES TO UNAUDITED FINANCIAL STATEMENTS (Unaudited)

     In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the Partnership's
financial position as of June 30, 1999 and December 31, 1998 and the results of
its operations, its cash flows and partners' capital for the three and six
months ended June 30, 1999 and 1998. These adjustments are of a normal recurring
nature.

     See notes to financial statements included in the Partnership's 1998 Annual
Report on Form 10-K for additional information relating to the Partnership's
financial statements.

NOTE 1 - ORGANIZATION AND BUSINESS
----------------------------------

     New England Life Pension Properties; A Real Estate Limited Partnership (the
"Partnership") is a Massachusetts limited partnership organized for the purpose
of investing primarily in newly constructed and existing income producing real
properties. It primarily serves as an investment for qualified pension and
profit sharing plans and other entities intended to be exempt from Federal
income tax. The Partnership commenced operations in June, 1983 and acquired six
real estate investments prior to the end of 1985. The Partnership sold its
remaining investment in March 1998 and therefore intends to liquidate and
dissolve in 1999.

NOTE 2 - CAPITAL ALLOCATION
----------------------------

     In accordance with the Partnership Agreement, $307,498 was distributed to
the General Partner during the fourth quarter of 1998 based on the Partnership's
historical performance. Upon liquidation of the Partnership, the General Partner
is not required to refund the Partnership for any negative capital balance
related to such distribution. As the Partnership intends to liquidate and
dissolve in 1999, $307,498 was allocated from the Limited Partners' capital
balance to the General Partner's capital balance during the second quarter of
1999.
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

Management's Discussion and Analysis of Financial Condition
-----------------------------------------------------------
and Results of Operations
-------------------------

Liquidity and Capital Resources

     The Partnership completed its offering of units of limited partnership
interest in June, 1983. A total of 30,000 units were sold. The Partnership
received proceeds of $27,253,251, net of selling commissions and other offering
costs, which were invested in real estate and the payment of related acquisition
costs, or retained as working capital reserves. The Partnership made six real
estate investments, all of which have been sold: one in each of 1985, 1991,
1994, 1996, 1997 and 1998. As a result of these sales and similar transactions,
capital of $33,485,100 ($1,116.17 per limited partnership unit) has been
returned to the limited partners through June 30, 1999. Additional capital of
$586,224 has been returned to certain incentive unit holders.

     At June 30, 1999, the Partnership had $514,428 in cash and cash
equivalents, which is being retained primarily as a reserve in connection with
the liquidation of the Partnership. The Partnership distributed $278,726 in the
first quarter of 1999 to certain incentive unit holders. The Partnership intends
to liquidate and dissolve in late 1999.

     Year 2000 Readiness Disclosure
     ------------------------------

     The Year 2000 Issue is a result of computer programs being written using
two digits rather than four to define the applicable year. Computer programs
that have date-sensitive software may recognize a date using "00" as the year
1900 rather than the year 2000. This could result in a system failure or
miscalculations causing disruptions of operations, including, among other
things, a temporary inability to process transactions or engage in normal
business operations.

     The Partnership relies on AEW Capital Management L.P. ("AEW Capital
Management"), the parent of AEW Real Estate Advisors, Inc., to generate
financial information and to provide other services which are dependent on the
use of computers. The Partnership has obtained assurances from AEW Capital
Management that:

     .    AEW Capital Management has developed a Year 2000 Plan (the "Plan")
          consisting of five phases: inventory, assessment, testing,
          remediation/repair and certification.

     .    As of September 30, 1998, AEW Capital Management had completed the
          inventory and assessment phases of this Plan and had commenced the
          testing and remediation/repair of internal systems.

     .    AEW Capital Management concluded the internal testing,
          remediation/repair and certifications of its Plan in June 1999.

     Because the Partnership has sold all of its real property investments, the
Partnership no longer relies on joint venture partners and/or property managers
to supply financial and other data with respect to its real properties.
Consequently, the Partnership does not have any material provider of data other
than AEW Capital Management.
<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES; A REAL ESTATE
LIMITED PARTNERSHIP


     The Partnership is developing a contingency plan in the event of a
particular provider or system not being Year 2000 compliant. The inability of
one of these providers to complete its Year 2000 resolution process could
materially impact the Partnership. In addition, the Partnership is also subject
to external forces that might generally affect industry and commerce, such as
utility or transportation company Year 2000 compliance failures and related
service interruptions. Given the nature of its operations, the Partnership will
not incur any costs associated with Year 2000 compliance. All such costs are
borne by AEW Capital Management and the property managers.

     Because the Partnership plans to liquidate and dissolve in 1999, the
Partnership does not believe its operations will be affected by the Year 2000
Issue.


Results of Operations

Operating Factors

     The Rivers Corporate Park was sold on March 4, 1998, and the Partnership
recognized a gain of $751,335. At the time of sale, this property was 29%
leased.

Investment Results

     Real estate operating activity in 1998 was solely from Rivers Corporate
Park, which was sold in March 1998, as discussed above.

     Interest on cash equivalents and short-term investments decreased
substantially between both the three and six month periods of 1998 and 1999 due
primarily to distributions of Corporate Rivers Park sale proceeds and operating
reserves in late 1998 and during the first quarter of 1999.

     Operating cash flow decreased $231,385 between the first six months of 1998
and 1999. This decrease is primarily due to the sale of Rivers Corporate Park in
March 1998.

Portfolio Expenses

     General and administrative expenses primarily consist of printing, legal,
accounting and investor servicing fees. General and administrative expenses
decreased 27% and 22% between the three and six month periods of 1998 and 1999,
respectively. These decreases are primarily due to lower overall expenses as a
result of the sale of the Partnership's remaining asset in March 1998.
<PAGE>

                     NEW ENGLAND LIFE PENSION PROPERTIES;
                       A REAL ESTATE LIMITED PARTNERSHIP

                                   FORM 10-Q

                        FOR QUARTER ENDED JUNE 30, 1999

                                    PART II

                               OTHER INFORMATION
                               -----------------



     Item 6. Exhibits and Reports on Form 8-K

                    a.        Exhibits:   (27) Financial Data Schedule

                    b.        Reports on Form 8-K: No Current
                              Reports on Form 8-K were filed during
                              the quarter ended June 30, 1999.
<PAGE>

                                  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.


                                            NEW ENGLAND LIFE PENSION PROPERTIES;
                                            A REAL ESTATE LIMITED PARTNERSHIP
                                               (Registrant)


August 6, 1999                              /s/ Alison Husid Cutler
                                            -------------------------------
                                            Alison Husid Cutler
                                            President, Chief Executive Officer
                                            and Director of General Partner
                                            Copley Properties Company, Inc.


August 6, 1999
                                            /s/ Karin J. Lagerlund
                                            --------------------------------
                                            Karin J. Lagerlund
                                            Principal Financial and Accounting
                                            Officer of General Partner,
                                            Copley Properties Company, Inc.