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

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results, performance or achievements for 2021 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
on 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 one year 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-19 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 29th and terminated the State of Emergency
on June 15th. The local colleges and universities announced a return to campus
in the fall of 2021 and the rental market improved significantly as students
prepare to return to the area.



Vacancy rates for the Partnership's residential properties as of August 1, 2021
were 3.3% as compared with a vacancy rate of 6.3% as of August 1, 2020. The
vacancy rate for the Joint Venture properties as of August 1, 2021 is 2.8%, as
compared to 3.9% for the same period last year.



Residential tenants generally have lease terms of 12 months. The majority of
these leases will mature during the second and third quarters of the year.
Rental activity has been strong as we moved from spring to summer and all
indications are that we will have low vacancy rates for the balance of the year.
However, with the uncertainty that exists with the new variants of the Covid-19
virus, we are unable to project the financial performance of the portfolio.

In the second quarter of 2021, rents rose an average of 1.2% for renewals and fell an average of 4.0% for new leases.

For the second quarter of 2021, consolidated revenue decreased by 2.0%,
operating expenses decreased by 0.5% and Income before Other Income (Expense)
decreased by 5.8%. For the same reporting period, vacancy was 3.3% in 2021

vs
6.3% in 2020.



During the covid crisis, The Hamilton Company, the Partnership's property
manager, has taken steps to maintain the safety of its employees and tenants.
Hamilton is providing essential services to ensure all properties are kept open,
fully functioning and safe. Hamilton has implemented a work from home policy
with a skeleton staff present at all site offices to provide for property
management, maintenance, leasing and construction services. Leasing is limited
to unoccupied units unless permission is granted by the current tenant and a web
based video technology is being used to remotely show apartments. Hamilton and
the Partnership will continue to adjust their s business practices to comply
with Federal and State mandates for workplace and rental property operations.



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

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October 31, 2021. The Partnership paid an extension fee of approximately $37,500
in association with the extension. Management has a signed term sheet with the
lender and is working to close on a three year extension and modification of the
line of credit in August 2021. See Note 17. Subsequent Events for details.

On March 31, 2020, Nera Brookside Associates, LLC ("Brookside Apartments"),
entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the
principal amount of $6,175,000. Interest only payments on the Note are payable
on a monthly basis at a fixed interest rate of 3.53% per annum, and the
principal amount of the Note is due and payable on March 31, 2035. The Note is
secured by a mortgage on the Brookside apartment complex located at 5-12 Totman
Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and
Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the
Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside
Apartments used the proceeds of the loan to pay off an outstanding loan of
approximately $2,390,000, with the remaining portion of the proceeds were added
to cash reserves. In connection with this refinancing, there were closing costs
of approximately $132,000.

From the start of the Stock Repurchase Program in 2007 through March 31, 2021,
the Partnership has purchased 1,428,437 Depositary Receipts. During the three
months ended June 30, 2021, the Partnership did not purchase any Depositary
Receipts. In March of 2020, the Board of Advisors and Board of Directors
unanimously approved an extension of the Repurchase Program until March 31,
2025. Given the economic uncertainty caused by the coronavirus issue, as of
April 15, 2020, the Partnership has elected to temporarily suspend the
repurchase program.



At August 1, 2021, the Harold Brown related entities and Ronald Brown
collectively own approximately 30.9% of the Depositary Receipts representing the
Partnership Class A Units (including Depositary Receipts held by trusts for the
benefit of such persons' family members). The Estate of Harold Brown also
controls 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.





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 six months ended June 30,
2021, tenant renewals were approximately 67% with an average rental increase of
approximately 1.0%, new leases accounted for approximately 33% with rental rate
decreases of approximately 4.4%. During the six months ended June 30, 2021,
leasing commissions were approximately $308,000 compared to approximately
$159,000 for the six months ended June 30, 2020, an increase of approximately
$149,000 (94.2%). Tenant concessions were approximately $15,000 for the six
months ended June 30, 2021, compared to approximately $18,000 for the six months
ended June 30, 2020, a decrease of approximately $3,000 (15.7%). Tenant
improvements were approximately $746,000 for the six months ended June 30, 2021,
compared to approximately $897,000 for the six months ended June 30, 2020, a
decrease of approximately $151,000 (16.8%).



Hamilton accounted for approximately 2.5% of the repair and maintenance expenses
paid for by the Partnership during the six months ended June 30, 2021 and 2.5 %
during the six months ended June 30, 2020. 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.

The Hamilton Legal Department handles most of the Partnership’s eviction and collection matters. In addition, he prepares most long-term commercial leases and represents the limited partnership in certain purchases and sales.

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transactions. Overall, Hamilton provided approximately $ 59,000 (67.5%) and approximately $ 64,000 (65.9%) of legal services paid by the Company during the six months ended June 30, 2021 and 2020 respectively.

In addition, as described in note 3 to the consolidated financial statements, the Hamilton Company receives similar commissions from investment properties.

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 six months ended June 30, 2021, Hamilton provided the Partnership
approximately $302,000 in construction and architectural services, compared to
approximately $305,000 for the six months ended June 30, 2020.



Hamilton's accounting staff perform bookkeeping and accounting functions for the
Partnership. During the six months ended June 30, 2021 and 2020, Hamilton
charged the Partnership $62,500 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,

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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 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

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management’s assumptions, future cash flows estimated by management in its impairment analyzes 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 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 ended June 30, 2021 and June 30, 2020

The Partnership and its Subsidiary Partnerships earned income before interest
expense, income from investments in unconsolidated joint ventures, other expense
of approximately $4,187,000 during the three months ended June 30, 2021,
compared to approximately $4,444,000 for the three months ended June 30, 2020, a
decrease of approximately $257,000 (5.8%).

The rental activity is summarized as follows:

                              Occupancy Date
                     August 1, 2021    August 1, 2020
Residential
Units                         2,911             2,911
Vacancies                        97               182
Vacancy rate                    3.3 %             6.3 %
Commercial
Total square feet           108,043           108,043
Vacancy                      12,890             4,232
Vacancy rate                   11.9 %             3.9 %







                                          Rental Income (in thousands)
                                          Three Months Ended June 30,
                                      2021                            2020
                             Total         Continuing        Total         Continuing
                           Operations      Operations      Operations      Operations
Total rents               $     15,333    $     15,333    $     15,647    $     15,647
Residential percentage              94 %            94 %            95 %            95 %
Commercial percentage                6 %             6 %             5 %             5 %
Contingent rentals        $        290    $        290    $        251    $        251






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Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020:




                                                Three Months Ended June 30,        Dollar       Percent
                                                   2021             2020           Change        Change
Revenues
Rental income                                 $   15,333,216    $  15,646,814    $ (313,598)      (2.0)%
Laundry and sundry income                            114,128          112,292          1,836        1.6%
                                                  15,447,344       15,759,106      (311,762)      (2.0)%
Expenses
Administrative                                       559,818          512,195         47,623        9.3%
Depreciation and amortization                      3,943,664        4,601,617      (657,953)     (14.3)%
Management fee                                       616,348          615,541            807        0.1%
Operating                                          1,407,646        1,291,781        115,865        9.0%
Renting                                              221,275          128,608         92,667       72.1%
Repairs and maintenance                            2,334,403        2,049,174        285,229       13.9%
Taxes and insurance                                2,176,958        2,115,721         61,237        2.9%
                                                  11,260,112       11,314,637       (54,525)      (0.5)%
Income Before Other Income (Expense)               4,187,232        4,444,469      (257,237)      (5.8)%
Other Income (Expense)
Interest income                                           25               52           (27)     (51.9)%
Interest expense                                 (3,378,942)      (3,423,583)         44,641      (1.3)%
Income from investments in unconsolidated
joint ventures                                     (238,424)          444,113      (682,537)    (153.7)%
                                                 (3,617,341)      (2,979,418)      (637,923)       21.4%
Net Income                                    $      569,891    $   1,465,051    $ (895,160)     (61.1)%





Rental income for the three months ended June 30, 2021 was approximately
$15,333,000, compared to approximately $15,647,000 for the three months ended
June 30, 2020, a decrease of approximately $314,000 (2.0%). Although rental
income has increased at a number of properties, due to the effect of the
Pandemic, a number of properties incurred a decrease in their rental income. The
Partnership properties with the largest increases in rental income include
Hamilton Oaks, Hamilton Green and Hamilton Cypress with increases of $33,000,
$32,000, and $24,000 respectively. These are offset by certain properties with
the largest decreases in rental income, which include 62 Boylston, 1144
Commonwealth, and Lincoln Street, with decreases of approximately $610,000,
168,000, and $60,000, 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 June 30, 2021 were approximately
$11,260,000 compared to approximately $11,315,000 for the three months ended
June 30, 2020, a decrease of approximately $55,000 (0.5%). The factors
contributing to the decrease are a decrease in depreciation and amortization of
approximately $658,000 (14.3%), partially offset by an increase in repairs and
maintenance of approximately $285,000 (13.9%), an increase in operating costs of
approximately $116,000 ( 9.0%) and an increase in renting expense of
approximately $93,000 (72.1%).

Interest expense for the three months ended June 30, 2021 was approximately
$ 3,379,000 compared to approximately $ 3,424,000 for the three months ended
June 30, 2020, a decrease of about $ 45,000 (1.3%).

At June 30, 2021, 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 loss from the Investment Properties was
approximately $238,000 for the three months ended June 30, 2021, compared to the
net income of approximately $444,000 for the three months ended June 30, 2020, a
decrease in income of approximately $682,000 (153.7%). This decrease is
primarily due to the reduction in rental revenue from approximately $ 2,617,000
to $2,142,000, a decrease of approximately $475,000 (18.2 %) for the three
months ended June 30, 2021 compared to the three months ended June 30, 2020.
Included in the income for the three months ended June 30, 2021 is depreciation
and amortization expense of approximately $656,000.

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  Table of Contents



As a result of the changes discussed above, the net income for the three months
ended June 30, 2021 was approximately $570,000 compared to net income of
approximately $1,465,000 for the three months ended June 30, 2020, a decrease in
income of approximately $895,000 (61.1 %).

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020:



The Partnership and its Subsidiary Partnerships earned income before interest
expense, income from investments in unconsolidated joint ventures, and other
expense of approximately $7,582,000 during the six months ended June 30, 2021,
compared to approximately $8,789,000 for the six months ended June 30, 2020, a
decrease of approximately $1,207,000 (13.7%).






                                              Six Months Ended June 30,          Dollar        Percent
                                                2021             2020            Change         Change
Revenues
Rental income                               $  30,313,332    $  31,900,244    $ (1,586,912)      (5.0)%
Laundry and sundry income                         222,801          234,446         (11,645)      (5.0)%
                                               30,536,133       32,134,690      (1,598,557)      (5.0)%
Expenses
Administrative                                  1,212,004        1,096,853          115,151       10.5%
Depreciation and amortization                   7,849,582        9,167,084      (1,317,502)     (14.4)%
Management fee                                  1,221,739        1,264,534         (42,795)      (3.4)%
Operating                                       3,453,614        2,960,183          493,431       16.7%
Renting                                           483,241          325,479          157,762       48.5%
Repairs and maintenance                         4,304,490        4,135,392          169,098        4.1%
Taxes and insurance                             4,429,092        4,396,262           32,830        0.7%
                                               22,953,762       23,345,787        (392,025)      (1.7)%

Income Before Other Income (Expense)            7,582,371        8,788,903 

    (1,206,532)     (13.7)%
Other Income (Expense)
Interest income                                        46              159            (113)     (71.1)%
Interest (expense)                            (6,743,111)      (6,873,908)          130,797      (1.9)%
(Loss) from investments in
unconsolidated joint ventures                   (563,595)          918,680      (1,482,275)    (161.3)%
                                              (7,306,660)      (5,955,069)      (1,351,591)       22.7%
Net Income                                  $     275,711    $   2,833,834    $ (2,558,123)     (90.3)%






Rental income for the six months ended June 30, 2021 was approximately
$30,313,000, compared to approximately $31,900,000 for the six months ended June
30, 2020, a decrease of approximately $1,587,000 (5.0%). Although rental income
has increased at a number of properties, due to the effect of the Pandemic, a
number of properties incurred a decrease in their rental income.The Partnership
properties with the largest increases in rental income include Hamilton Oaks,
Hamilton Green and Dean Street Associates with increases of $92,000, $59,000,
and $44,000 respectively. These are offset by certain properties with the
largest decreases in rental income, which include 62 Boylston, 1144
Commonwealth, and Lincoln Street, with decreases of approximately $1,369,000,
306,000, and $116,000, 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 six months ended June 30, 2021 were approximately
$22,953,000 compared to approximately $23,345,000 for the six months ended June
30, 2020, a decrease of approximately $392,000 (1.7%). The factors contributing
to this net decrease are a decrease in depreciation and amortization of
approximately $ 1,318,000 (14.4%) due to fully depreciated assets, partially
offset by an increase in operating costs of approximately $493,000 (16.7%), an
increase in repairs and maintenance expenses of approximately $169,000 (4.1%),
and an increase in renting expense of approximately $158,000 (48.5%).



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Interest expense for the six months ended June 30, 2021 was approximately
$6,743,000 compared to approximately $6,874,000 for the six months ended June
30, 2020, a decrease of approximately $131,000 (1.9%). The decrease is primarily
due to a decrease in interest expense on the line of credit of approximately
$82,000.



At June 30, 2021, 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 loss from the Investment Properties was
approximately $564,000 for the six months ended June 30, 2021, compared to net
income of approximately $919,000 for the six months ended June 30, 2020, a
decrease in income of approximately $1,482,000 (161.4%). This decrease is
primarily due to the reduction in rental revenue from approximately $ 5,372,000
for the six months ended June 30, 2020 to approximately $4,215,000 for the six
months ended June 30, 2021, a decrease of approximately $1,157,000 (21.5 %).
Included in the income for the six months ended June 30, 2021 is depreciation
and amortization expense of approximately $1,308,000. The proportional loss for
the six months ended June 30, 2021 from the investment in Dexter Park is
approximately $459,000.



As a result of the changes discussed above, net income for the six months ended
June 30, 2021 was approximately $276,000 compared to income of approximately
$2,834,000 for the six months ended June 30, 2020, a decrease in net income of
approximately $2,558,000 (90.3%).







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LIQUIDITY AND CAPITAL RESOURCES

The Partnership's principal source of cash during the first six months of 2021
was the collection of rents. The Partnership's principal source of cash during
the first six months of 2020 was the collection of rents and the proceeds from
the refinancing of Brookside Apartments. The majority of cash and cash
equivalents of $23,367,387 at June 30, 2021 and $18,646,972 at December 31, 2020
were held in interest bearing accounts at creditworthy financial institutions.

The increase in cash of $4,720,415 for the six months ended June 30, 2021 is
summarized as follows:




                                                                Six Months Ended June 30,
                                                                  2021             2020

Cash provided by operating activities                         $   9,168,975    $   9,524,873
Cash (used in) investing activities                               (985,258)

(454,059)

Cash (used in) provided by financing activities                 (1,125,589)

1,510,950

Repurchase of Depositary Receipts, Class B and General
Partner Units                                                             -

(394,031)

Distributions paid                                              (2,337,721)

(2 338 034)

Net increase in cash and cash equivalents                     $   4,720,407

   $   7,849,699




The change in cash provided by operating activities is due to various factors,
including a change in depreciation expense due to recent acquisitions, 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,

During 2021, the Partnership and its Subsidiary Partnerships have completed
improvements to certain of the Properties at a total cost of approximately
$1,385,000. These improvements were funded from cash reserves. Cash reserves
have been adequate to fully fund improvements. The most significant improvements
were made at 62 Boylston Street, Hamilton Oaks, Redwood Hills, Dean Street
Associates, Hamilton Green and 1144 Commonwealth, at a cost of approximately
$355,000, 145,000, $123,000, $95,000, $95,000 and $84,000 respectively.



On March 31, 2020, Nera Brookside Associates, LLC ("Brookside Apartments"),
entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the
principal amount of $6,175,000. Interest only payments on the Note are payable
on a monthly basis at a fixed interest rate of 3.53% per annum, and the
principal amount of the Note is due and payable on March 31, 2035. The Note is
secured by a mortgage on the Brookside apartment complex located at 5-12 Totman
Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and
Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the
Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside
Apartments used the proceeds of the loan to pay off an outstanding loan of
approximately $2,390,000, with the remaining portion of the proceeds added to
cash reserves. In connection with this refinancing, there were closing costs of
approximately $136,000.

During the six months ended June 30, 2021, the Partnership received distributions of approximately $ 419,000 investment properties. For the past six months June 30, 2020, the limited partnership received $ 1,066,000 in the distributions of investment properties. These net distributions include the amount of Dexter Park about $ 80,000 and
$ 700,000 for the six months ended June 30, 2021 and 2020, respectively.

In January 2021, the Partnership approved a quarterly distribution of $9.60 per
Unit ($0.32 per Receipt), which was paid on March 31, 2021. In April 2021, the
Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per
Receipt), which was paid on June 30, 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 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.

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Management has a signed term sheet with the lender and is working to close on a
three year extension and modification of the line of credit in August 2021. See
Note 17. Subsequent Events for details.

On December 19, 2019, the Partnership drew down on the line of credit in the
amount of $20,000,000, used in conjunction with the purchase of Mill Street
Apartments. On December 20, 2019, the Partnership paid down $2,000,000. On
January 22, 2020, the Partnership paid down the line by $1,000,000. As of June
30, 2021, the line of credit had an outstanding balance of $17,000,000.

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.

Off-Balance Sheet Arrangements – Joint Venture Debt

As of June 30, 2021 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 June 30, 2021, our proportionate share of the non-recourse
debt related to these investments was approximately $70,972,000. See Note 14 to
the Consolidated Financial Statements.



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Contractual Obligations

From June 30, 2021, we are subject to contractual payment obligations as described in the table below.

                                       Payments due by period

                          2022           2023           2024           2025           2026        Thereafter         Total

Contractual
Obligations

Long-term debt Mortgage debt $ 2,549,482 $ 79,940,669 $ 25,419,180 $ 11,269,194 $ 21,708,763 $ 142,776,836 $ 283,664,124

Other obligations       17,000,000              -              -              -              -               -      17,000,000
Total Contractual
Obligations           $ 19,549,482   $ 79,940,669   $ 25,419,180   $ 

11,269,194 $ 21,708,763 $ 142,776,836 $ 300,664,124

* 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 the mortgage notes payable. Limited partnerships have no other material contractual obligations to disclose.

Factors that may affect future results

Along with risks detailed in Item 1A and from time to time in the Partnership's
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 limited partnership is dependent on the real estate markets where its properties are

? located, mainly in Eastern Massachusetts, and these markets may be unfavorably

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

The limited partnership is subject to general economic risks affecting the

? the real estate industry, such as 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 impacted by changing economic conditions making

alternative housing methods that are more or less attractive to the Partnership

? tenants, such as mortgage interest rates on single-family homes 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 lead to a

   reduction in revenues from a property.

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

? arise due to economic and market conditions and fluctuations in

seasonal weather conditions.

? Civil unrest, earthquakes and other natural disasters can lead to

uninsured or underinsured losses.

? Real or threatened terrorist attacks can affect our ability to

generate income 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.

Partnership properties face competition from similar properties in the same

? Marlet. This competition may affect the ability of the limited partnership to attract and

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

Given the nature of the real estate activity, the limited partnership is subject to

potential environmental liabilities. These include environmental contamination

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

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

subject property, and the presence of hazardous materials in the limited partnership

such as asbestos, lead, mold and radon. Management is not aware

   of any material environmental liabilities at this time.

Insurance coverage for and relating to commercial properties is increasingly

expensive and difficult to obtain. In addition, insurance companies have excluded

some specific elements of standard insurance policies, which have resulted in

? increased risk exposure to the Partnership. These include insurance coverage

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

conditions. Coverage for these items is not available or is prohibitively expensive

   expensive.

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

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

Changes in income tax laws and regulations may affect taxable income to

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

   future distributions.

The limited partnership may not identify, acquire, construct or develop other

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

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

otherwise undesirable properties quickly; or may fail to integrate effectively

acquisitions of buildings or portfolios of buildings.

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

? Competition for acquisitions can cause property prices to increase.

Any weakness identified in the Company’s internal controls within the framework of the

? the current assessment could have a negative effect on

   business.

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

   personnel or systems 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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