New England Realty Associates Limited Partnership (NEN) risk factors, FY2024 10-K

Other

1. 01We are subject to risks inherent in the ownership of real estate
2. 02We are dependent on rental income from our multifamily apartment complexes and commercial properties
3. 03Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer
4. 04Our multifamily apartment complexes and commercial properties are subject to competition
5. 05The properties we own are concentrated in Eastern Massachusetts and Southern New Hampshire
6. 06Our insurance may not be adequate to cover certain risks
7. 07Debt financing could adversely affect our performance
8. 08We are obligated to comply with financial covenants in our indebtedness that could restrict our range of operating activities
9. 09Real estate investments are generally illiquid, and we may not be able to sell our properties when it is economically or strategically advantageous to do so
10. 10Our access to public debt markets is limited
11. 11Litigation may result in unfavorable outcomes
12. 12Our financial results may be adversely impacted if we are unable to sell properties and employ the proceeds in accordance with our strategic plan
13. 13The costs of complying with laws and regulations could adversely affect our cash flow and ability to make distributions to our shareholders
14. 14We are subject to the risks associated with investments through joint ventures
15. 15We are subject to risks associated with development, acquisition and expansion of multifamily apartment complexes and commercial properties
16. 16We are subject to control by our directors and officers
17. 17Competition for skilled personnel could increase our labor costs
18. 18We depend on our key personnel
19. 19Changes in market conditions could adversely affect the market price of our Depositary Receipts
20. 20We face possible risks associated with the physical effects of climate change
21. 21Risk of changes in the tax law applicable to real estate partnerships
22. 22Some of our costs, such as operating and general and administrative expenses, interest expense, and real estate acquisition and construction costs, are subject to inflation
23. 23Recent City of Boston regulations impose new energy performance standards and fines that may increase utilities and administrative costs in order to comply with disclosure and energy reduction requirements
24. 24Development project costs that exceed estimates