NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP DISCUSSION AND MANAGEMENT’S ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

Forward-looking statements

Certain information contained herein includes forward looking statements, which
are made pursuant to the safe harbor provisions of the Private Securities
Liquidation Reform Act of 1995 (the "Act"). Forward looking statements in this
report, or which management may make orally or in written form from time to
time, reflect management's good faith belief when those statements are made, and
are based on information currently available to management. Caution should be
exercised in interpreting and relying on such forward looking statements, the
realization of which may be impacted by known and unknown risks and
uncertainties, events that may occur subsequent to the forward looking
statements, and other factors which may be beyond the Partnership's control and
which can materially affect the Partnership's actual results, performance or
achievements for 2022 and beyond. Should one or more of the risks or
uncertainties mentioned below materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those anticipated,
estimated or projected. We expressly disclaim any responsibility to update our
forward looking statements, whether as a result of new information, future
events or otherwise. Accordingly, investors should use caution in relying

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about past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

Since the Partnership's long-term goals include the acquisition of additional
properties, a portion of the proceeds from the refinancing and sale of
properties is reserved for this purpose. If available acquisitions do not meet
the Partnership's investment criteria, the Partnership may purchase additional
depositary receipts. The Partnership will consider refinancing existing
properties if the Partnership's cash reserves are insufficient to repay existing
mortgages or if the Partnership needs additional funds for future acquisitions.

More than two years has passed since we became aware of the current outbreak of
COVID- 19, a novel strain of coronavirus. The World Health Organization declared
a global pandemic on March 11, 2020. On March 10, 2020 the governor of
Massachusetts, Charlie Baker, declared a state of emergency and ordered all
non-essential businesses closed and prohibited the gathering of 10 or more
people. Additionally, March of 2020 saw the closure of local colleges and
universities for the balance of the academic year. Colleges in the City of
Boston and the surrounding communities conducted classes in the 2020/2021
academic year remotely, or using a hybrid model of remote and limited in class
learning. These educational models caused a large decrease in the student
population and resulted in significant vacancies in the Partnership's apartment
portfolio.

With the introduction and roll out of Covid vaccines in the spring of 2021, the
economy is opening back up. The Governor of Massachusetts rescinded the State's
Covid-19 restrictions on May 29, 2021 and terminated the State of Emergency on
June 15, 2021. The local colleges and universities returned to campus in
September 2021 and the rental market improved significantly as students returned
to the area.

On February 24, 2022, Russia began an invasion into Ukraine. In response,
nations from around the world have placed sanctions on Russia in an attempt to
cripple its economy. There is no way to predict how this conflict and the
Russian sanctions will affect both the global and local economies.  If there is
a downturn in the economy and significant inflation to the cost of energy, goods
and service, there may be material adverse effects to our business, results of
operations, cash flows, and financial condition.

Vacancy rates for the Partnership's residential properties as of May 1, 2022
were 2.0% as compared with a vacancy rate of 6.2% as of May 1, 2021. The vacancy
rate for the Joint Venture properties as of May 1, 2022 was 0.6%, as compared to
9.2% for the same period last year. The current vacancy rates are in line with
those experienced prior to the Pandemic.

Residential tenants typically have 12 month lease terms. The majority of these leases will expire during the second and third quarters of the year. Rental activity has been strong as we transitioned from spring to summer and all indications are that we will have low vacancy rates for the rest of the year.

During the first quarter of 2022, rents increased by an average of 4.9% for renewals and increased by an average of 11.2% for new leases. For the remainder of 2022, management expects a strong rental market with continued rental growth.

For the first quarter of 2022, consolidated revenue increased by 9.9%, operating
expenses increased by 9.5% and Income before Other Income (Expense) increased by
11.3%, as compared to the first quarter of 2021.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000
revolving line of credit. The term of the line was for three years with a
floating interest rate equal to a base rate of the greater of (a) the Prime Rate
(b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the
LIBOR Rate for a period of one month plus 1% per annum, plus the applicable
margin of 2.5%. The agreement originally expired on July 31, 2017, and was
extended until October 31, 2020. The costs associated with the line of credit
extension were approximately $128,000. Prior to the line's expiration in 2020,
the Partnership exercised its option for a one-year extension until October 31,
2021. The Partnership paid an extension fee of approximately $37,500 in
association with the extension

On October 29, 2021, the Partnership closed on the modification of its existing
line of credit. The agreement extends the credit line for three years until
October 29, 2024. The commitment amount is for $25 million but is restricted to
$17 million during the modification period. The modification period covers the
current period and phases out by December 31, 2022. During this period, the loan
covenants are modified from a minimum consolidated debt service ratio of 1.60 to
a ratio of 1.35 until September 30, 2022; from a minimum tangible net worth
requirement of $200 million

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to a net worth of $175 million until September 30, 2022; from a maximum
consolidated leverage ratio of 65% to a ratio of 70% until September 30, 2022
and from a minimum debt yield of 9.5% to a yield of 8.5% until September 30,
2022 and a yield of 9.0% until December 31, 2022. Once the financial performance
of the Partnership meets the original covenant tests for the trailing 12-month
period, the commitment amount will return to $25 million. The portfolio's debt
yield fell below the minimum of 8.5% to 8.04%. As of March 31, 2022, the
Partnership did not comply with the debt yield financial covenant. As such, the
Partnership is unable to draw down any amount from the line of credit until the
Partnership meets the required financial covenants.

From the start of the Stock Repurchase Program in 2007 through March 31, 2022,
the Partnership has purchased 1,448,321 Depositary Receipts. During the three
months ended March 31, 2022, the Partnership purchased a total of 14,132
Depositary Receipts.

At May 1, 2022, the Harold Brown related entities and Ronald Brown collectively
own approximately 31.3% of the Depositary Receipts representing the Partnership
Class A Units (including Depositary Receipts held by trusts for the benefit of
such persons' family members). Harold Brown related entities also control 75% of
the Partnership's Class B Units, and 75% of the capital stock of NewReal, Inc.
("NewReal"), the Partnership's sole general partner. Ronald Brown also owns 25%
of the Partnership's Class B Units and 25% of NewReal's capital stock. In
addition, Ronald Brown is the President and director of NewReal and Jameson
Brown is NewReal's Treasurer and a director. The 75% of the issued and
outstanding Class B units of the Partnership, controlled by the Estate of Harold
Brown, are owned by HBC Holdings LLC, an entity of which Jameson Brown is the
manager. The outstanding stock of The Hamilton Company, Inc. is controlled by
Jameson Brown and Harley Brown. The 75% of the issued and outstanding capital
stock of NewReal, is owned by the Harold Brown 2013 Revocable Trust (the "2013
Trust"), an entity of which Sally Michaels and David Reier are the trustees.

In addition to the Management Fee, the Partnership Agreement further provides
for the employment of outside professionals to provide services to the
Partnership and allows NewReal to charge the Partnership for the cost of
employing professionals to assist with the administration of the Partnership's
properties. Additionally, from time to time, the Partnership pays Hamilton for
repairs and maintenance services, legal services, construction services and
accounting services. The costs charged by Hamilton for these services are at the
same hourly rate charged to all entities managed by Hamilton, and management
believes such rates are competitive in the marketplace.

Residential tenants sign a one year lease. During the three months ended March
31, 2022, tenant renewals were approximately 64% with an average rental increase
of approximately 4.9%, new leases accounted for approximately 36% with rental
rate increases of approximately 11.2%. During the three months ended March 31,
2022, leasing commissions were approximately $81,000 compared to approximately
$168,000 for the three months ended March 31, 2021, a decrease of approximately
$87,000 (51.8%). Tenant concessions were approximately $11,000 for the three
months ended March 31, 2022, compared to approximately $5,000 for the three
months ended March 31, 2021, an increase of approximately $6,000 (120.0%).
Tenant improvements were approximately $475,000 for the three months ended March
31, 2022, compared to approximately $320,000 for the three months ended March
31, 2021, a decrease of approximately $155,000 (48.4%).

Hamilton accounted for approximately 3.2% of the repair and maintenance expenses
paid for by the Partnership during the three months ended March 31, 2022 and 2.3
% during the three months ended March 31, 2021. Of the funds paid to Hamilton
for this purpose, the great majority was to cover the cost of services provided
by the Hamilton maintenance department, including plumbing, electrical,
carpentry services, and snow removal for those properties close to Hamilton's
headquarters. Several of the larger Partnership properties have their own
maintenance staff. Those properties that do not have their own maintenance staff
and are located more than a reasonable distance from Hamilton's headquarters in
Allston, Massachusetts are generally serviced by local, independent companies.

Hamilton's legal department handles most of the Partnership's eviction and
collection matters. Additionally, it prepares most long-term commercial lease
agreements and represents the Partnership in selected purchase and sale
transactions. Overall, Hamilton provided approximately $54,000 (84.1%) and
approximately $24,000 (52.9%) of the legal services paid for by the Partnership
during the three months ended March 31, 2022 and 2021 respectively.

In addition, as described in Note 3 to the consolidated financial statements, the Hamilton Company receives similar fees from Investment Properties.

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The Partnership requires that three bids be obtained for construction contracts
in excess of $15,000. Hamilton may be one of the three bidders on a particular
project and may be awarded the contract if its bid and its ability to
successfully complete the project are deemed appropriate. For contracts that are
not awarded to Hamilton, Hamilton charges the Partnership a construction
supervision fee equal to 5% of the contract amount. Hamilton's architectural
department also provides services to the Partnership on an as-needed basis.
During the three months ended March 31, 2022, Hamilton provided the Partnership
approximately $37,000 in construction and architectural services, compared to
approximately $155,000 for the three months ended March 31, 2021.

Hamilton's accounting staff perform bookkeeping and accounting functions for the
Partnership. During the three months ended March 31, 2022 and 2021, Hamilton
charged the Partnership $31,250 for bookkeeping and accounting services. For
more information on related party transactions, see Note 3 to the Consolidated
Financial Statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of the consolidated financial statements, in accordance with
accounting principles generally accepted in the United States of America,
requires the Partnership to make estimates and judgments that affect the
reported amounts of assets, liabilities, revenues and expenses and related
disclosures of contingent assets and liabilities. The Partnership regularly and
continually evaluates its estimates, including those related to acquiring,
developing and assessing the carrying values of its real estate properties and
its investments in and advances to joint ventures. The Partnership bases its
estimates on historical experience, current market conditions, and on various
other assumptions that are believed to be reasonable under the circumstances.
However, because future events and their effects cannot be determined with
certainty, the determination of estimates requires the exercise of judgment. The
Partnership's critical accounting policies are those which require assumptions
to be made about such matters that are highly uncertain. Different estimates
could have a material effect on the Partnership's financial results. Judgments
and uncertainties affecting the application of these policies and estimates may
result in materially different amounts being reported under different conditions
and circumstances. See Note 1 to the Consolidated Financial Statements,
Principles of Consolidation.

Revenue Recognition: Rental income from residential and commercial properties is
recognized over the term of the related lease. For residential tenants, amounts
60 days in arrears are charged against income. The commercial tenants are
evaluated on a case by case basis. Certain leases of the commercial properties
provide for increasing stepped minimum rents, which are accounted for on a
straight-line basis over the term of the lease. Revenue from commercial leases
also include reimbursements and recoveries received from tenants for certain
costs as provided in the lease agreement. The costs generally include real
estate taxes, utilities, insurance, common area maintenance and recoverable
costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially
recorded based on the present value (using a discount rate which reflects the
risks associated with the leases acquired) of the differences between (i) the
contractual amounts to be paid pursuant to each in-place lease and
(ii) management's estimate of fair market lease rates for each corresponding
in-place lease, measured over a period equal to the remaining term of the lease
for above-market leases and the initial term plus the term of any below-market
fixed-rate renewal options for below-market leases. The capitalized above-market
lease amounts are accounted for as a reduction of base rental revenue over the
remaining term of the respective leases, and the capitalized below-market lease
values are amortized as an increase to base rental revenue over the remaining
initial terms plus the terms of any below-market fixed-rate renewal options of
the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that
include common area maintenance services) with related lease components (lease
revenues). If both the timing and pattern of transfer are the same for the
non-lease component and related lease component, the lease component is the
predominant component. The Partnership elected an allowed practical expedient.
For (i) operating lease arrangements involving real estate that include common
area maintenance services and (ii) all real estate arrangements that include
real estate taxes and insurance costs, we present these amounts within lease
revenues in our consolidated statements of income. We record amounts reimbursed
by the lessee in the period in which the applicable expenses are incurred.

Rental Property Held for Sale: When assets are identified by management as held
for sale, the Partnership discontinues depreciating the assets and estimates the
sales price, net of selling costs, of such assets. The Partnership

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generally considers assets to be held for sale when the transaction has received
appropriate corporate authority, and there are no significant contingencies
relating to the sale. If, in management's opinion, the estimated net sales
price, net of selling costs, of the assets which have been identified as held
for sale is less than the carrying value of the assets, a valuation allowance is
established.

If circumstances arise that previously were considered unlikely and, as a
result, the Partnership decides not to sell a property previously classified as
held for sale, the property is reclassified as held and used. A property that is
reclassified is measured and recorded individually at the lower of (a) its
carrying value before the property was classified as held for sale, adjusted for
any depreciation (amortization) expense that would have been recognized had the
property been continuously classified as held and used, or (b) the fair value at
the date of the subsequent decision not to sell.

Rental Properties: Rental properties are stated at cost less accumulated
depreciation. Maintenance and repairs are charged to expense as incurred;
improvements and additions are capitalized. When assets are retired or otherwise
disposed of, the cost of the asset and related accumulated depreciation is
eliminated from the accounts, and any gain or loss on such disposition is
included in income. Fully depreciated assets are removed from the accounts.
Rental properties are depreciated by both straight-line and accelerated methods
over their estimated useful lives. Upon acquisition of rental property, the
Partnership estimates the fair value of acquired tangible assets, consisting of
land, building and improvements, and identified intangible assets and
liabilities assumed, generally consisting of the fair value of (i) above and
below market leases, (ii) in-place leases and (iii) tenant relationships. The
Partnership allocated the purchase price to the assets acquired and liabilities
assumed based on their fair values. The Partnership records goodwill or a gain
on bargain purchase (if any) if the net assets acquired/liabilities assumed
exceed the purchase consideration of a transaction. In estimating the fair value
of the tangible and intangible assets acquired, the Partnership considers
information obtained about each property as a result of its due diligence and
marketing and leasing activities, and utilizes various valuation methods, such
as estimated cash flow projections utilizing appropriate discount and
capitalization rates, estimates of replacement costs net of depreciation, and
available market information. The fair value of the tangible assets of an
acquired property considers the value of the property as if it were vacant.

Intangible assets acquired include amounts for in-place lease values above and
below market leases and tenant relationship values, which are based on
management's evaluation of the specific characteristics of each tenant's lease
and the Partnership's overall relationship with the respective tenant. Factors
to be considered by management in its analysis of in-place lease values include
an estimate of carrying costs during hypothetical expected lease-up periods
considering current market conditions, and costs to execute similar leases at
market rates during the expected lease-up periods, depending on local market
conditions. In estimating costs to execute similar leases, management considers
leasing commissions, legal and other related expenses. Characteristics
considered by management in valuing tenant relationships include the nature and
extent of the Partnership's existing business relationships with the tenant,
growth prospects for developing new business with the tenant, the tenant's
credit quality and expectations of lease renewals. The value of in-place leases
are amortized to expense over the remaining initial terms of the respective
leases. The value of tenant relationship intangibles are amortized to expense
over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a
rental property may be impaired, an analysis of the value is prepared. The
estimated future undiscounted cash flows are compared to the asset's carrying
value to determine if a write-down to fair value is required.

Impairment: On an annual basis management assesses whether there are any
indicators that the value of the Partnership's rental properties may be
impaired. A property's value is impaired only if management's estimate of the
aggregate future cash flows (undiscounted and without interest charges) to be
generated by the property is less than the carrying value of the property. To
the extent impairment has occurred, the loss shall be measured as the excess of
the carrying amount of the property over the fair value of the property. The
Partnership's estimates of aggregate future cash flows expected to be generated
by each property are based on a number of assumptions that are subject to
economic and market uncertainties including, among others, demand for space,
competition for tenants, changes in market rental rates, and costs to operate
each property. As these factors are difficult to predict and are subject to
future events that may alter management's assumptions, the future cash flows
estimated by management in its impairment analyses may not be achieved.

Investments in Joint Ventures: The Partnership accounts for its 40%-50%
ownership in the Investment Properties under the equity method of accounting, as
it exercises significant influence over, but does not control these entities.
These investments are recorded initially at cost, as Investments in Joint
Ventures, and subsequently adjusted for the Partnership's share in earnings,
cash contributions and distributions. Under the equity method of accounting, our
net

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equity is reflected on the consolidated balance sheets, and our share of net
income or loss from the Partnership is included on the consolidated statements
of income. Generally, the Partnership would discontinue applying the equity
method when the investment (and any advances) is reduced to zero and would not
provide for additional losses unless the Partnership has guaranteed obligations
of the venture or is otherwise committed to providing further financial support
for the investee. If the venture subsequently generates income, the Partnership
only recognizes its share of such income to the extent it exceeds its share of
previously unrecognized losses. We intend to fund our share of the investments'
future operating deficits should the need arise. However, we have no legal
obligation to pay for any of the liabilities of such investments nor do we have
any legal obligation to fund operating deficits.

The authoritative guidance on consolidation provides guidance on the
identification of entities for which control is achieved through means other
than voting rights ("variable interest entities" or "VIEs") and the
determination of which business enterprise, if any, should consolidate the VIE
(the "primary beneficiary"). Generally, the consideration of whether an entity
is a VIE applies when either (1) the equity investors (if any) lack one or more
of the essential characteristics of a controlling financial interest, (2) the
equity investment at risk is insufficient to finance that equity's activities
without additional subordinated financial support or (3) the equity investors
have voting rights that are not proportionate to their economic interests and
the activities of the entity involve or are conducted on behalf of an investor
with a disproportionately small voting interest. The primary beneficiary is
defined by the entity having both of the following characteristics: (1) the
power to direct the activities that, when taken together, most significantly
impact the variable interest entity's performance; and (2) the obligation to
absorb losses and rights to receive the returns from VIE that would be
significant to the VIE.

With respect to investments in and advances to the Investment Properties, the
Partnership looks to the underlying properties to assess performance and the
recoverability of carrying amounts for those investments in a manner similar to
direct investments in real estate properties. An impairment charge is recorded
if management's estimate of the aggregate future cash flows (undiscounted and
without interest charges) to be generated by the property is less than the
carrying value of the property.

Legal Proceedings: The Partnership is subject to various legal proceedings and
claims that arise, from time to time, in the ordinary course of business. These
matters are frequently covered by insurance. If it is determined that a loss is
likely to occur, the estimated amount of the loss is recorded in the financial
statements. Both the amount of the loss and the point at which its occurrence is
considered likely can be difficult to determine.

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RESULTS OF OPERATIONS

Three months completed March 31, 2022 and March 31, 2021

The Partnership and its Subsidiary Partnerships earned income before interest
expense, income from investments in unconsolidated joint ventures, other expense
of approximately $3,777,000 during the three months ended March 31, 2022,
compared to approximately $3,395,000 for the three months ended March 31, 2021,
an increase of approximately $382,000 (11.2%).

The rental activity is summarized as follows:

                           Occupancy Date
                     May 1, 2022    May 1, 2021
Residential
Units                      2,911          2,911
Vacancies                     57            180
Vacancy rate                 2.0 %          6.2 %
Commercial
Total square feet        108,043        108,154
Vacancy                        -          4,844
Vacancy rate                 0.0 %          4.5 %


                                          Rental Income (in thousands)
                                          Three Months Ended March 31,
                                      2022                            2021
                             Total         Continuing        Total         Continuing
                           Operations      Operations      Operations      Operations
Total rents               $     16,460    $     16,460    $     14,980    $     14,980
Residential percentage              95 %            95 %            94 %            94 %
Commercial percentage                5 %             5 %             6 %             6 %
Contingent rentals        $        175    $        175    $        150    $        150


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Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021:

                                               Three Months Ended March 31,        Dollar       Percent
                                                  2022              2021           Change        Change
Revenues
Rental income                                $    16,460,006    $  14,980,116    $ 1,479,890        9.9%
Laundry and sundry income                            120,403          108,673         11,730       10.8%
                                                  16,580,409       15,088,789      1,491,620        9.9%
Expenses
Administrative                                       707,786          652,186         55,600        8.5%
Depreciation and amortization                      4,020,768        3,905,918        114,850        2.9%
Management fee                                       673,084          605,391         67,693       11.2%
Operating                                          2,676,208        2,045,968        630,240       30.8%
Renting                                              169,389          261,966       (92,577)     (35.3%)
Repairs and maintenance                            2,279,651        1,970,087        309,564       15.7%
Taxes and insurance                                2,276,573        2,252,134         24,439        1.1%
                                                  12,803,459       11,693,650      1,109,809        9.5%
Income Before Other Income (Expense)               3,776,950        3,395,139        381,811       11.2%
Other Income (Expense)
Interest income                                           34               21             13       61.9%
Interest expense                                 (3,454,635)      (3,364,170)       (90,465)        2.7%
Income from investments in unconsolidated
joint ventures                                        20,069        

(325,170) 345,239 (106.2%)

                                                 (3,434,532)      (3,689,319)        254,787      (6.9%)
Net Income (Loss)                            $       342,418    $   

(294,180) $636,598 (216.4%)


Rental income for the three months ended March 31, 2022 was approximately
$16,460,000, compared to approximately $14,980,000 for the three months ended
March 31, 2021, an increase of approximately $1,480,000 (9.9%). The Partnership
properties with the largest increases in rental income include 62 Boylston, 1144
Commonwealth, Mill Street Gardens, Hamilton Green, and Lincoln Street with
increases of $450,000, $97,000, $72,000, $71,000 and $69,000 respectively.
Included in rental income is contingent rentals collected on commercial
properties. Contingent rentals include such charges as bill backs of common area
maintenance charges, real estate taxes, and utility charges.

Operating expenses for the three months ended March 31, 2022 were approximately
$12,803,000 compared to approximately $11,694,000 for the three months ended
March 31, 2021, an increase of approximately $1,110,000 (9.5%), primarily due to
an increase in snow removal expense. The factors contributing to the increase
are an increase in operating expenses of approximately $630,000 (30.8%), an
increase in repairs and maintenance of approximately $310,000 (15.7%), and an
increase in depreciation and amortization of approximately $115,000 (2.9%).

Interest expense for the three months ended March 31, 2022 was approximately
$3,455,000 compared to approximately $3,364,000 for the three months ended
March 31, 2021an increase of approximately $90,000 (2.7%).

At March 31, 2022, the Partnership has between a 40% and 50% ownership interests
in seven different Investment Properties. See a description of these properties
included in the section titled Investment Properties as well as Note 14 to the
Consolidated Financial Statements for a detail of the financial information of
each Investment Property.

As described in Note 14 to the Consolidated Financial Statements, the
Partnership's share of the net income from the Investment Properties was
approximately $20,000 for the three months ended March 31, 2022, compared to a
net loss of approximately $325,000 for the three months ended March 31, 2021, an
increase in income of approximately $345,000 (106.2%). This increase is
primarily due to an increase in rental revenue to approximately $2,430,000 from
$2,073,000, an increase of approximately $357,000 (17.2 %) for the three months
ended March 31, 2022 compared to the three months ended March 31, 2021. Included
in the income for the three months ended March 31, 2022 is depreciation and
amortization expense of approximately $653,000.

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Due to the changes mentioned above, the net profit for the three months ended March 31, 2022 was approximately $342,000 compared to the net loss of approximately $294,000 for the three months ended March 31, 2021an increase in revenue of approximately $636,000 (216.4%).

CASH AND CAPITAL RESOURCES

The Partnership's principal source of cash during the first three months of 2022
and 2021 was the collection of rents. The majority of cash and cash equivalents
of $92,265,466 at March 31, 2022 and $96,083,508 at December 31, 2021 were held
in interest bearing accounts at creditworthy financial institutions.

The decrease in cash of $3,818,042 for the three months ended March 31, 2022 is
summarized as follows:

                                                               Three Months Ended March 31,
                                                                  2022              2021
Cash provided by operating activities                        $     4,581,407    $   4,343,410
Cash (used in) investing activities                                (640,311)        (446,603)
Cash (used in) financing activities                                

(600,190) (552,575) Redemption of certificates of deposit, category B and general partner shares

                                                    (1,337,814)                -
Distributions paid                                               

(5,821,134) (1,168,860) Net increase (decrease) in cash and cash equivalents $(3,818,042) $2,175,372


The change in cash provided by operating activities is due to various factors,
including a change in depreciation expense, a change in income and distribution
from joint ventures, and other factors. The increase in cash used in investing
activities is primarily due to improvements to rental properties. The change in
cash used in financing activities is due to the pay down of mortgages, the
repurchase of depositary receipts, and distributions paid.

During 2022, the Partnership and its Subsidiary Partnerships have completed
improvements to certain of the Properties at a total cost of approximately
$1,045,000. These improvements were funded from cash reserves. Cash reserves
have been adequate to fully fund improvements. The most significant improvements
were made at Westside Colonial, Old English Village, Hamilton Oaks, Mill Street
Gardens, 62 Boylston, and Hamilton Green at a cost of approximately $175,000,
$160,000, $95,000, $90,000, $84,000 and $70,000 respectively.

During the three months ended March 31, 2022, the Partnership received
distributions of approximately $440,000 from the investment properties. For the
three months ended March 31, 2021, the Partnership received $196,000 in
distributions from the investment properties. Included in these net
distributions is the amount from Dexter Park of approximately $240,000 and $0
for the three months ended March 31, 2022 and 2021, respectively.

In January 2022, the Partnership approved a quarterly distribution of $9.60 per
Unit ($0.32 per Receipt), which was paid on March 31, 2022. In addition to the
quarterly distribution, there was a special distribution of $38.40 per Class A
unit ($1.28 per Receipt) payable on March 31, 2022.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000
revolving line of credit. The term of the line was for three years with a
floating interest rate equal to a base rate of the greater of (a) the Prime Rate
(b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the
LIBOR Rate for a period of one month plus 1% per annum, plus the applicable
margin of 2.5%. The agreement originally expired on July 31, 2017 and was
extended until October 31, 2020. The costs associated with the line of credit
extension in 2017 were approximately $128,000. Prior to the line's expiration in
2020, the Partnership exercised its option for a one-year extension until
October 31, 2021. The Partnership paid an extension fee of approximately $37,500
in association with the extension. The Partnership agreed to terms with the
lender on October 29, 2021, to extend the line of credit until October 29, 2024.
On December 3,

2021, the Partnership paid the line.

The Partnership anticipates that cash from operations will be sufficient to fund
its current operations, pay distributions, make required debt payments and
finance current improvements to its properties. The Partnership may also sell or
refinance properties. The Partnership's net income and cash flow may fluctuate
dramatically from year to year as a result of the sale or refinancing of
properties, property improvements, increases or decreases in rental income or
expenses, or the loss of significant tenants.

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Off-Balance Sheet Arrangements – Joint Venture Indebtedness

As of March 31, 2022, the Partnership had a 40%-50% ownership interest in seven
Joint Ventures, five of which have mortgage indebtedness. We do not have control
of these partnerships and therefore we account for them using the equity method
of consolidation. At March 31, 2022, our proportionate share of the non-recourse
debt related to these investments was approximately $70,890,000. See Note 14 to
the Consolidated Financial Statements.

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Contractual Obligations

From March 31, 2022we are subject to contractual payment obligations as described in the table below.

                                          Payments due by period

                              2023           2024           2025           2026          2027        Thereafter         Total

Contractual
Obligations

Long -term debt
Mortgage debt             $ 8,719,140     31,306,301     11,093,452     21,904,169     6,507,098     293,059,974   $ 372,590,134
Total Contractual
Obligations               $ 8,719,140   $ 31,306,301   $ 11,093,452   $ 21,904,169   $ 6,507,098   $ 293,059,974   $ 372,590,134

*Excluding unamortized deferred financing costs

We have various standing or renewable service contracts with vendors related to
our property management. In addition, we have certain other contracts we enter
into in the ordinary course of business that may extend beyond one year. These
contracts are not included as part of our contractual obligations because they
include terms that provide for cancellation with insignificant or no
cancellation penalties.

See notes 5 and 14 to the consolidated financial statements for a description of mortgage notes payable. The Partnerships have no other material contractual obligations to disclose.

Factors That May Affect Future Results

Along with risks detailed in Item 1A of the Partnership's Form 10-K for the
fiscal year ended December 31, 2021 filed with the Securities and Exchange
Commission on March 11, 2022 and from time to time in the Partnership's other
filings with the Securities and Exchange Commission, some factors that could
cause the Partnership's actual results, performance or achievements to differ
materially from those expressed or implied by forward looking statements include
but are not limited to the following:

The Company is dependent on the real estate markets where its properties are

? located mainly in Eastern Massachusettsand these markets may be adversely

   affected by local economic market conditions, which are beyond the
   Partnership's control.

The Partnership is subject to general economic risks affecting the reality

? the real estate industry, such as the dependence on the financial situation of tenants, the need

enter into new leases or renew leases on terms favorable to tenants in order to

generate rental income and our ability to collect rent from our tenants.

The Partnership is also affected by changing economic conditions, which

more or less attractive alternative housing options for

? tenants, such as interest rates on single family home mortgages and

availability and purchase price of single-family homes in the Greater Boston

Metropolitan area.

The Partnership is subject to significant expenses associated with each

? investments, such as debt service payments, property taxes, insurance and

maintenance costs, which are generally not reduced when circumstances cause a

reduction in property income.

The Partnership is subject to increases in heating and utility costs which may

? occur due to economic and market conditions and fluctuations

seasonal weather conditions.

? Civil unrest, earthquakes and other natural disasters can cause

uninsured or underinsured losses.

? Actual or imminent terrorist attacks may impair our ability to

generate revenue and the value of our properties.

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? Financing or refinancing of Partnership properties may not be available for the

necessary or desirable, or may not be available on favorable terms.

The Partnership’s properties face competition from similar properties in the same

? market. This competition may affect the Partnership’s ability to attract and

retain tenants and can reduce the rents that can be charged.

Given the nature of the real estate business, the Partnership is subject to

potential environmental liabilities. These include environmental contamination

in the soil of the limited partnership or neighboring real estate, whether caused by

? the limited partnership, the former owners of the property in question or the neighbors of the

property in question, and the presence of hazardous materials in the

buildings, such as asbestos, lead, mold and radon. Management is unaware

of any significant environmental liability at the present time.

Insurance coverage for and relating to commercial properties is increasingly

expensive and difficult to obtain. In addition, insurers have excluded

certain specific elements of the standard insurance policies, which resulted in

? increased risk to the Partnership. These include insurance coverage

for acts of terrorism and war, and coverage for mold and other

terms. Coverage for these items is either unavailable or prohibitive

Dear.

? Market interest rates could adversely affect market prices for Class A

Limited partnership units and certificates of deposit as well as performance and cash flow.

Changes in income tax laws and regulations may affect taxable income

? Partnership owners. These changes may affect the after-tax value of

future distributions.

The Partnership may not identify, acquire, build or develop other

Properties; may develop or acquire properties that do not produce a desired result or

? the expected return on invested capital; may be unable to sell poorly performing products or

otherwise undesirable properties quickly; or fail to effectively integrate

acquisitions of buildings or portfolios of buildings.

? Risk related to the use of debt to finance acquisitions and developments.

? Competition for acquisitions can cause property prices to rise.

Any weaknesses identified in the Partnership’s internal controls as part of the

? the ongoing evaluation could have a negative effect on the

Business.

? Ongoing compliance with the Sarbanes-Oxley Act of 2002 may require

personnel or system changes.


The foregoing factors should not be construed as exhaustive or as an admission
regarding the adequacy of disclosures made by the Partnership prior to the date
hereof or the effectiveness of said Act. The Partnership expressly disclaims any
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.

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