New England Realty Associates LP (NEN, Financial) filed Quarterly Report for the period ended 2011-09-30.
New England Realty Associates L.p. Un has a market cap of $68.99 million; its shares were traded at around $65.58 with and P/S ratio of 2.08. The dividend yield of New England Realty Associates L.p. Un stocks is 4.27%.
The Partnerships properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of collected rental revenue and other income on the majority of the Partnerships properties and 3% on Linewt. Total fees paid were approximately $1,047,000 and $1,022,000 during the nine months ended September 30, 2011 and 2010, respectively. On the Partnerships
The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.
The general real estate market in the Greater Boston area has stabilized and multifamily housing is enjoying strong demand. Supply side growth is limited as local building permits for multifamily housing are at or are near a seven year low. Lower demand for home ownership and positive local employment growth continue to point to positive trends in the Greater Boston rental housing market. Vacancies at the majority of the Partnerships properties continue to be at historic lows. The Partnership has experienced modest revenue increases across all sectors of the portfolio. As anticipated, higher occupancy levels and fewer turnovers of tenants resulted in improved revenue growth. The limited supply of housing has helped eliminate rental concessions and has resulted in decreased leasing commissions. The Greater Boston Metro area has a reported average vacancy rate of 4.3% (as reported by ARA Research) which is above the Partnerships vacancy rate of 2.2% . Management anticipates that the upward pressure on rental rates will continue for the next 18-36 months. Additionally, operating expense increases are expected to be outpaced by revenue growth. Management is confident that its present cash reserves as well as anticipated rental revenue will be sufficient to fund its current operations, finance current planned improvements to its properties, and continue distribution payments in the foreseeable future. Management believes that the continued improvement in the local unemployment rate, 6.3% vs. 9% at the national level as of October 2011, general stabilization of housing prices and stability in Massachusettss major industries will support a stronger multifamily market for the foreseeable future.
The Partnerships revenues are forecasted to exceed core 2010 revenues by over $1,000,000 or 4%. For 2011, Management expects net operating income before depreciation and amortization for the year to be $17.5 million or 7% higher than 2010. These results reflect nine months of performance where total revenue exceeded 2010 by 5% and total operating expenses grew by only 3% despite the extraordinary increases in snow removal costs. Improved collections and a steady decline in free rent, approximately $74,000 in 2011 and rental commissions, approximately $160,000 in 2011, assisted in keeping 2011 operating expenses in line. The majority of leases signed, approximately 58%, during the nine months ended September 30, 2011 were for renewals of existing leases. Tenant improvements were approximately $750,000 for the nine months ended September 30, 2011. As in previous quarters, occupancy continues to remain above the competition. Management is satisfied with staff efforts to balance tenant retention, improve curb appeal and monitor the profitability of the properties while mitigating growth in the other expense categories.
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New England Realty Associates L.p. Un has a market cap of $68.99 million; its shares were traded at around $65.58 with and P/S ratio of 2.08. The dividend yield of New England Realty Associates L.p. Un stocks is 4.27%.
Highlight of Business Operations:
Concentration of Credit Risks and Financial Instruments: The Partnerships properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnerships revenues in 2011or 2010. The Partnership makes its temporary cash investments with high-credit-quality financial institutions. At September 30, 2011and December 31, 2010, substantially all of the Partnerships cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates 0.05% to 0.75%. At September 30, 2011 and December 31, 2010, respectively, approximately $5,235,000, and $4,349,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.The Partnerships properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of collected rental revenue and other income on the majority of the Partnerships properties and 3% on Linewt. Total fees paid were approximately $1,047,000 and $1,022,000 during the nine months ended September 30, 2011 and 2010, respectively. On the Partnerships
The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.
The general real estate market in the Greater Boston area has stabilized and multifamily housing is enjoying strong demand. Supply side growth is limited as local building permits for multifamily housing are at or are near a seven year low. Lower demand for home ownership and positive local employment growth continue to point to positive trends in the Greater Boston rental housing market. Vacancies at the majority of the Partnerships properties continue to be at historic lows. The Partnership has experienced modest revenue increases across all sectors of the portfolio. As anticipated, higher occupancy levels and fewer turnovers of tenants resulted in improved revenue growth. The limited supply of housing has helped eliminate rental concessions and has resulted in decreased leasing commissions. The Greater Boston Metro area has a reported average vacancy rate of 4.3% (as reported by ARA Research) which is above the Partnerships vacancy rate of 2.2% . Management anticipates that the upward pressure on rental rates will continue for the next 18-36 months. Additionally, operating expense increases are expected to be outpaced by revenue growth. Management is confident that its present cash reserves as well as anticipated rental revenue will be sufficient to fund its current operations, finance current planned improvements to its properties, and continue distribution payments in the foreseeable future. Management believes that the continued improvement in the local unemployment rate, 6.3% vs. 9% at the national level as of October 2011, general stabilization of housing prices and stability in Massachusettss major industries will support a stronger multifamily market for the foreseeable future.
The Partnerships revenues are forecasted to exceed core 2010 revenues by over $1,000,000 or 4%. For 2011, Management expects net operating income before depreciation and amortization for the year to be $17.5 million or 7% higher than 2010. These results reflect nine months of performance where total revenue exceeded 2010 by 5% and total operating expenses grew by only 3% despite the extraordinary increases in snow removal costs. Improved collections and a steady decline in free rent, approximately $74,000 in 2011 and rental commissions, approximately $160,000 in 2011, assisted in keeping 2011 operating expenses in line. The majority of leases signed, approximately 58%, during the nine months ended September 30, 2011 were for renewals of existing leases. Tenant improvements were approximately $750,000 for the nine months ended September 30, 2011. As in previous quarters, occupancy continues to remain above the competition. Management is satisfied with staff efforts to balance tenant retention, improve curb appeal and monitor the profitability of the properties while mitigating growth in the other expense categories.
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