New England Realty Associates Limited Partnership (NEN) Bundle
An Overview of New England Realty Associates Limited Partnership (NEN)
General Summary of New England Realty Associates Limited Partnership (NEN)
New England Realty Associates Limited Partnership (NEN) was established to engage in the acquisition, development, and management of residential and commercial real estate properties. As of 2024, NEN operates primarily in the New England area, focusing on multifamily residential units and commercial properties. The company has a diverse portfolio that includes over 688 apartment units across various locations.
As of September 30, 2024, NEN reported rental income of approximately $59,573,125, which marks a 9.6% increase from $54,338,011 in the same period of 2023. The company continues to enhance its property offerings, including the Mill Street Development project, which is expected to contribute significantly to future revenues.
Company's Financial Performance in the Latest Financial Reports
In the latest financial reporting period for the nine months ended September 30, 2024, NEN achieved a net income of approximately $11,446,000, a remarkable increase of 86.0% from approximately $6,155,000 for the same period in 2023. This growth was driven by a substantial rise in rental income and efficient management of operating expenses, which totaled about $41,392,000, reflecting a modest increase of 1.8% year-over-year.
The breakdown of key financial metrics for the nine months ended September 30, 2024, includes:
| Financial Metric | 2024 Amount | 2023 Amount | Change ($) | Change (%) |
|---|---|---|---|---|
| Rental Income | $59,573,125 | $54,338,011 | $5,235,114 | 9.6% |
| Net Income | $11,446,000 | $6,155,000 | $5,291,000 | 86.0% |
| Operating Expenses | $41,392,000 | $40,665,000 | $727,000 | 1.8% |
| Interest Income | $3,414,000 | $3,350,000 | $64,000 | 1.9% |
| Interest Expense | $11,638,000 | $11,781,000 | ($143,000) | (1.2%) |
NEN's strong performance in 2024 is attributed to effective cost management strategies and an increase in market demand for rental properties, as evidenced by a rental growth of 5.4% for renewals and 4.6% for new leases during the third quarter of 2024.
Introduction to the Company as a Leader in the Industry
New England Realty Associates Limited Partnership is recognized as a leading player in the real estate industry, particularly in the New England region. The company has built a solid reputation for its commitment to quality property management and development, which has positioned it favorably in a competitive market. With a diverse portfolio and a strategic focus on growth, NEN continues to explore opportunities to expand its reach and enhance shareholder value.
For more in-depth insights into NEN's operations, financial strategies, and market positioning, further exploration is encouraged.
Mission Statement of New England Realty Associates Limited Partnership (NEN)
Mission Statement Overview
The mission statement of New England Realty Associates Limited Partnership (NEN) focuses on its commitment to providing high-quality residential and commercial properties, fostering strong relationships with stakeholders, and ensuring sustainable growth. This mission serves as a guiding framework for the company’s strategic objectives and operational decisions, reinforcing its dedication to excellence in the real estate sector.
Core Component 1: Quality of Service
NEN is dedicated to delivering exceptional service to its tenants and clients. This commitment is reflected in the company’s ongoing investments in property improvements and tenant satisfaction initiatives. For instance, during the nine months ended September 30, 2024, NEN reported an increase in rental income of approximately $59,573,000, which was a 9.6% rise from $54,338,000 in the same period in 2023. This growth can be attributed to the company’s focus on maintaining and enhancing property quality, as well as improving tenant engagement.
Core Component 2: Stakeholder Relationships
NEN emphasizes the importance of building strong relationships with its stakeholders, including tenants, investors, and community members. The company's strategic initiatives aim to enhance stakeholder engagement through transparent communication and responsive service. For example, NEN has maintained a low vacancy rate of 1.7% for residential properties as of November 1, 2024, compared to 0.9% the previous year, showcasing its ability to attract and retain tenants.
Core Component 3: Sustainable Growth
NEN's mission includes a focus on sustainable growth through prudent financial management and strategic investments. The company has successfully increased its cash reserves, amounting to approximately $15,069,693 as of September 30, 2024, down from $18,230,463 at the end of 2023. This decrease is attributed to ongoing investments in property improvements, including approximately $15,369,000 spent on various renovations across its properties. Moreover, NEN’s commitment to leveraging financial opportunities is evident as it raised approximately $130,000,000 through refinancing efforts over 2021 and 2022.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Rental Income | $59,573,000 | $54,338,000 | 9.6% |
| Net Income | $11,445,720 | $6,154,568 | 86.0% |
| Cash Reserves | $15,069,693 | $18,230,463 | -16.0% |
| Property Improvements | $15,369,000 | N/A | N/A |
Vision Statement of New England Realty Associates Limited Partnership (NEN)
Vision Statement Overview
The vision statement of New England Realty Associates Limited Partnership (NEN) is centered around a commitment to enhancing the value of their properties and improving the quality of life for their tenants. This involves a focus on sustainable growth, community engagement, and maintaining high standards in property management.
Commitment to Sustainable Growth
NEN aims to achieve sustainable growth through strategic acquisitions and developments. As of September 30, 2024, the Partnership has approximately $86,134,000 invested in short-term U.S. Treasury bills, earning interest rates between 4.48% and 5.27%. Additionally, the Partnership anticipates spending approximately $30 million on the Mill Street Development project over two years, with $10 million allocated for 2024.
| Year | Estimated Spending ($ million) | Project Completion Date |
|---|---|---|
| 2024 | 10 | Q4 2025 |
| 2025 | 20 | Q4 2025 |
Community Engagement and Tenant Satisfaction
NEN places a strong emphasis on community engagement and tenant satisfaction. For the nine months ended September 30, 2024, the tenant renewal rate was approximately 67% with an average rental increase of about 5.8%. The Partnership's properties have maintained a low vacancy rate of 1.7% as of November 1, 2024, indicating a strong demand for its rental offerings.
High Standards in Property Management
The Partnership is committed to maintaining high standards in property management, which is reflected in their operational metrics. For the third quarter of 2024, NEN reported a consolidated revenue increase of 6.6% and a significant 32.1% increase in income before other income (expense) compared to the same quarter in 2023. This performance highlights the effectiveness of their management practices and their ability to adapt to market conditions.
| Metric | Q3 2024 | Q3 2023 | Percentage Change |
|---|---|---|---|
| Consolidated Revenue ($ million) | 54.34 | 51.04 | +6.6% |
| Income Before Other Income (Expense) ($ million) | 12.34 | 9.34 | +32.1% |
Strategic Property Acquisitions
NEN continues to pursue strategic property acquisitions to enhance its portfolio. In July 2023, the Partnership acquired a mixed-use property in Boston for approximately $27.5 million, funded from cash reserves. This acquisition is part of their ongoing strategy to expand and improve their property offerings.
Financial Performance Metrics
As of September 30, 2024, NEN reported a net income of approximately $11.45 million, an increase of 86% compared to the same period in 2023. The Partnership's operational efficiency is demonstrated by a decrease in operating expenses by 1.8%, totaling approximately $41.39 million.
| Financial Metric | Q3 2024 | Q3 2023 | Percentage Change |
|---|---|---|---|
| Net Income ($ million) | 11.45 | 6.15 | +86% |
| Operating Expenses ($ million) | 41.39 | 40.67 | -1.8% |
Core Values of New England Realty Associates Limited Partnership (NEN)
Integrity
Integrity is a foundational core value at New England Realty Associates Limited Partnership (NEN). It emphasizes honesty, transparency, and accountability in all business dealings. NEN demonstrates its commitment to integrity through various initiatives, including adherence to ethical standards and compliance with regulations.
For instance, during the nine months ended September 30, 2024, NEN reported a net income of approximately $11,445,720, reflecting a significant increase of 86% from the prior year's income of $6,154,568 . This growth is attributed to the company's commitment to ethical practices and sound financial management, ensuring that all financial disclosures are accurate and reliable.
Community Engagement
Community Engagement reflects NEN's dedication to contributing positively to the communities in which it operates. The company actively participates in local initiatives and supports various charitable organizations.
In 2024, NEN allocated approximately $15,369,000 for property improvements, which included enhancements that benefit local neighborhoods . Additionally, the Mill Street Development project will include 17 affordable housing units, showcasing NEN's commitment to community welfare and social responsibility. This project is expected to cost around $30 million, with construction completion anticipated in late 2025 .
Excellence
Excellence is a core value that drives NEN to provide high-quality services and properties. The company strives for operational excellence in its property management and development activities.
As of September 30, 2024, NEN managed 2,943 residential apartment units across 27 complexes, maintaining a low vacancy rate of 1.7% . This is indicative of the company's focus on providing exceptional living experiences. Furthermore, during the third quarter of 2024, NEN reported a 6.6% increase in consolidated revenue, underscoring its commitment to operational excellence .
Innovation
Innovation is a key value for NEN, reflecting its commitment to adopting new technologies and practices that enhance property management and improve tenant satisfaction.
NEN has embraced modern construction techniques and sustainable practices in its new developments. The Mill Street Development project, for instance, is designed to meet contemporary living standards while incorporating sustainable practices. The total expected expenditure for this project is approximately $30 million .
Teamwork
Teamwork is integral to NEN's operations, promoting collaboration among employees, partners, and stakeholders to achieve common goals.
NEN's workforce is dedicated to fostering a collaborative environment, which is evident from the increased tenant retention rate of approximately 67% for lease renewals . The company also invests in employee development, offering competitive benefits and a 401(k) plan with a 50% match up to 6% of employee contributions .
| Core Value | Description | Examples |
|---|---|---|
| Integrity | Commitment to honesty and transparency | Net income increased to $11,445,720 in 2024 |
| Community Engagement | Contributions to local communities | $15,369,000 allocated for property improvements; 17 affordable housing units in Mill Street Development |
| Excellence | High-quality services and properties | 1.7% vacancy rate; 6.6% increase in consolidated revenue |
| Innovation | Adopting new technologies and practices | Modern construction techniques in Mill Street Development |
| Teamwork | Collaboration among employees and stakeholders | 67% tenant retention rate; 401(k) plan with company match |
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Resources:
- New England Realty Associates Limited Partnership (NEN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of New England Realty Associates Limited Partnership (NEN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View New England Realty Associates Limited Partnership (NEN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.