New England Realty Associates Reports $5.07 Million Net Loss for First Half of 2026

New England Realty Associates Limited Partnership (NERA) reported a significant decline in financial performance for the six months ending June 30, 2026, compared to the same period in 2025. The partnership recorded a net loss of approximately $5.07 million, a stark contrast to the net income of about $7.95 million reported in the previous year. This represents a decrease of approximately $13.01 million, or 163.8%. Total revenues for the first half of 2026 were approximately $48.56 million, up 15.8% from $41.93 million in the prior year, primarily driven by a 15.9% increase in rental income, which reached $48.14 million.

Operating expenses surged by 50.3% to approximately $43.03 million, compared to $28.63 million in the same period last year. This increase was attributed to higher costs in several areas, including administrative expenses, which rose by 77.3%, and depreciation and amortization expenses, which nearly doubled, reflecting the impact of recent property acquisitions. Interest expenses also increased by 44.4% to approximately $11.44 million, driven by additional borrowings related to property acquisitions and refinancing activities.

In terms of operational metrics, NERA's residential properties maintained a vacancy rate of 2.7% as of August 1, 2026, slightly higher than the 2.4% reported a year earlier. The partnership's rental strategy included an average rent increase of 2.9% for lease renewals, while new leases saw a decrease of 1.2%. The partnership's properties generated a total rental income of approximately $24.18 million for the second quarter of 2026, marking a 15% increase from $21.04 million in the same quarter of 2025.

Strategically, NERA has been active in property acquisitions and improvements. The partnership completed significant renovations and improvements to various properties, totaling approximately $6.94 million during the first half of 2026. Additionally, NERA has a 40% to 50% ownership interest in seven joint ventures, which contributed approximately $770,000 to the partnership's income for the first half of 2026, down from $847,000 in the previous year. The partnership's cash reserves at the end of June 2026 stood at approximately $24.75 million, a decrease from $26.67 million at the end of 2025.

Looking ahead, NERA anticipates that cash from operations, along with proceeds from loan refinancings and availability under its line of credit, will be sufficient to fund ongoing operations, pay distributions, and meet debt obligations. The partnership has also approved a quarterly distribution of $12.00 per unit, reflecting its commitment to returning value to its investors despite the recent financial challenges.