<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 September 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 SEPTEMBER 30, 1999

                                    PART I

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

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

BALANCE SHEETS

<TABLE>
<CAPTION>
                                        September 30, 1999   December 31, 1998
                                            (Unaudited)          (Audited)
                                        ------------------   -----------------
<S>                                     <C>                  <C>
ASSETS

Cash and cash equivalents                  $  515,395            $  820,108
Interest, rent and other receivables               --                 3,373
                                           ----------            ----------
                                           $  515,395            $  823,481
                                           ==========            ==========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                           $   32,181            $   32,492
                                           ----------            ----------
Total liabilities                              32,181                32,492
                                           ----------            ----------

Partners' capital (deficit):
 Limited partners ($0 per
  unit; 30,000 units authorized,
  issued and outstanding)                     404,907             1,019,890
 General partner                               78,307              (228,901)
                                           ----------            ----------
Total partners' capital                       483,214               790,989
                                           ----------            ----------
                                           $  515,395            $  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   Nine Months Ended    Three Months Ended  Nine Months Ended
                                             September 30, 1999   September 30, 1999   September 30, 1998  September 30, 1998
                                             ------------------   ------------------   ------------------  ------------------
<S>                                          <C>                  <C>                  <C>                 <C>
INVESTMENT ACTIVITY

Property rentals                             $               --   $               --   $               --  $          153,809
Property operating expenses                                  --                   --                   --             (68,653)
                                             ------------------   ------------------   ------------------  ------------------
   Total real estate operations                              --                   --                   --              85,156

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

Interest on cash equivalents
  and short term investments                              6,522               22,986              120,844             299,546
                                             ------------------   ------------------   ------------------  ------------------
   Total investment activity                              6,522               22,986              120,844           1,040,412
                                             ------------------   ------------------   ------------------  ------------------
Portfolio Expenses

General and administrative                               18,223               52,035               12,035              55,322
                                             ------------------   ------------------   ------------------  ------------------
                                                         18,223               52,035               12,035              55,322
                                             ------------------   ------------------   ------------------  ------------------
Net Income (loss)                            $          (11,701)  $          (29,049)  $          108,809  $          985,090
                                             ==================   ==================   ==================  ==================
</TABLE>

<PAGE>

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

<TABLE>
<S>                                            <C>                   <C>                  <C>                 <C>
Net income (loss) per limited partnership
  unit                                         $            (0.39)   $            (0.96)  $             3.59  $            32.51
                                               ==================     =================   ==================  ==================

Cash distributions per
  limited partnership unit                     $               --    $               --   $               --  $             5.91
                                               ==================     =================   ==================  ==================

Cash distributions per unit paid on
  certain limited partnership incentive units  $               --    $            14.40   $               --  $               --
                                               ==================     =================   ==================  ==================

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
(Unaudited)

<TABLE>
<CAPTION>
                              Three Months Ended   Nine Months Ended     Three Months Ended    Nine Months Ended
                              September 30, 1999   September 30, 1999    September 30, 1998    September 30, 1998
                              ------------------   ------------------    ------------------    ---------------------

                              General   Limited    General    Limited    General   Limited     General    Limited
                              Partner   Partners   Partner    Partners   Partner   Partners    Partner    Partners
                             --------- ---------- ---------  ---------- --------  ----------  ---------  -----------
<S>                           <C>       <C>        <C>        <C>        <C>       <C>         <C>        <C>
Balance at
beginning of
period                        $78,424   $416,491  $(228,901) $1,019,890  $72,984   $7,717,922  $66,012    $7,027,704

Cash
distributions                      --         --         --    (278,726)      --           --   (1,791)     (177,300)

Capital allocation
(See note 2)                       --         --    307,498    (307,498)      --           --       --            --
Net income (loss)                (117)   (11,584)      (290)    (28,759)   1,088      107,721    9,851       975,239
                              -------   --------  ---------  ----------  -------   ----------  --------   ----------

Balance at
end of period                 $78,307   $404,907  $  78,307  $  404,907  $74,072   $7,825,643  $74,072    $7,825,643
                              =======   ========  =========  ==========  =======   ==========  ========   ==========
</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)

<TABLE>
<CAPTION>
                                                   Nine Months Ended September 30,
                                                   -------------------------------
                                                       1999                1998
                                                   -------------       -----------
<S>                                                <C>                 <C>
Net cash provided by (unsed in) operating
   activities                                      $     (25,987)      $   312,003
                                                   -------------       -----------

Cash flows from investing activities:
   Net proceeds from sale of investment                       --         5,795,060
   Deferred disposition fee                                   --            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                             (304,713)        7,567,333

Cash and cash equivalents:
   Beginning of period                                   820,108         1,309,837
                                                   -------------       -----------

   End of period                                   $     515,395       $ 8,877,170
                                                   =============       ===========
</TABLE>

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

NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP

NOTES TO 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 September 30, 1999 and December 31, 1998 and the
results of its operations, its cash flows and partners' capital for the three
and nine months ended September 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 last
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 September 30, 1999. Additional capital
of $586,224 has been returned to certain incentive unit holders.

     At September 30, 1999, the Partnership had $515,395 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.

     .    AEW Capital Management successfully participated in industry-wide
          testing in August 1999.

     .    AEW Capital Management believes it is ready for Year 2000. AEW Capital
          Management has advised the Partnership that being ready means that AEW
          Capital Management has tested its internal mission critical systems
          and software applications, and based upon testing conducted, AEW
          Capital Management believes that such systems and applications are
          prepared to process dates correctly through the Year 2000.

     Based upon these assurances, the Partnership has determined that it is not
necessary for it to develop a Year 2000 contingency plan.

     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 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 nine month periods of 1998 and 1999 due
primarily to distributions of Corporate Rivers Park sale proceeds and operating
reserves in late 1998 and additional distributions of operating reserves during
the first quarter of 1999.

     Operating cash flow decreased $337,990 between the first nine 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
increased 51% and decreased 6% between the three and nine month periods of 1998
and 1999, respectively. The three month increase is primarily due to legal
expenses incurred related to a dispute involving a third-party vendor. The
overall nine month decrease is 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 SEPTEMBER 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 September 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)

November 11, 1999
                              /s/ Alison Husid Cutler
                              -------------------------------
                                Alison Husid Cutler
                                President, Chief Executive Officer
                                and Director of General Partner,
                                Copley Properties Company, Inc.

November 11, 1999
                              /s/ Karin J. Lagerlund
                              --------------------------------
                                Karin J. Lagerlund
                                Principal Financial and Accounting
                                Officer of General Partner,
                                Copley Properties Company, Inc.