New England Realty's Third-Quarter Loss Widens

The Tip Desk · November 7, 2026 · 2 min read

The Boston-area landlord posted a net loss of $843,000 in the three months ended September 30, 2026, as renting costs rose and joint-venture occupancy deteriorated.

New England Realty Associates Limited Partnership (NEN) reported a net loss of $843,000 for the three months ended September 30, 2026, compared with a net loss of $522,000 a year earlier.

The Boston-area landlord earned $4,698,000 of income before other income (expense), down 1.0% from $4,744,000 in the year-ago quarter. Rental income was $24,038,000, and total revenues were $24,241,000, both up 2.3% from a year earlier.

Excluding Hill Estates, two sold commercial properties, and newly constructed Mill Street Heights, the company said consolidated revenue increased 0.1%, operating expenses increased 5.0%, and income before other income (expense) decreased 11.1% versus the third quarter of 2025.

Operating expenses of $2,038,000 rose 27.3% from $1,601,000 a year earlier. Renting expenses were $841,000, up 72.2% from $488,000. Interest expense was $5,742,000, up 5.4% from $5,450,000. Income from investments in unconsolidated joint ventures was $111,000, down 24.3% from $147,000.

Residential vacancy was 2.4% as of November 1, 2026, versus 3.2% a year earlier. Commercial vacancy was 5.14%, versus 6.80%. Joint Venture property vacancy was 9.01%, versus 0.7% a year earlier. The company said the Boston area rental market is experiencing elevated vacancy rates and that it has responded aggressively to keep vacancy below the area’s current availability rates.

During the third quarter of 2026, rents increased an average of 2.8% for renewals and decreased an average of 5.1% for new leases. For the balance of 2026, management expects a rental market with slowing rent growth. Residential tenants generally have 12-month leases, with the majority maturing in the second and third quarters, the company said.

For the nine months ended September 30, 2026, tenant renewals were approximately 72% with an average rental increase of approximately 3.1%, and new leases accounted for approximately 28% with a rental rate decrease of approximately 4.2%. Leasing commissions were approximately $1,382,000, compared with approximately $686,000 for the nine months ended September 30, 2025. Tenant improvements were approximately $3,411,000, compared with approximately $2,675,000 a year earlier.

The Partnership purchased 18,783 Depositary Receipts in the nine months ended September 30, 2026. From the start of the Stock Repurchase Program in 2007 through September 30, 2026, it had purchased 1,578,192 Depositary Receipts. On March 11, 2026, the General Partner authorized the President and Treasurer to renew the Repurchase Plan for one year.

The company said it was in compliance with applicable financial covenants under its loan agreements as of September 30, 2026, and that the lender confirmed no breach of the loan-to-value covenant.