Company Overview
New England Realty Associates Limited Partnership operates within the real estate sector, specifically functioning in the real estate services industry by engaging in the acquisition, development, holding, operation, and sale of real estate properties across the United States. The company maintains a portfolio that includes various residential buildings as well as mixed-use properties encompassing residential, retail, and office spaces. In terms of scale, the entity holds a market capitalization of $213.06M and reports an annual revenue of $90.67M, while the employee count is listed as N/A. These valuation and revenue figures indicate that the company operates as a mid-sized entity within the real estate services landscape, possessing a substantial asset base but without the workforce scale of large public real estate investment trusts.
Financial Health
The company reported a revenue of $90.67M and a net income of $6.03M over the trailing twelve-month period, with an EBITDA of $46.49M, highlighting a significant gap between top-line revenue and bottom-line profit. This substantial difference between revenue and net income reveals a cost structure where non-operating expenses, interest payments on debt, or other significant deductions consume a large portion of earnings before tax. The firm generated free cash flow of $23.55M, which provides a critical indicator of its financial flexibility to fund capital expenditures, pay down debt, or return capital to stakeholders. Analyzing the profitability layers shows a gross margin of 67.6%, an operating margin of 17.4%, and a profit margin of 6.7%, indicating that while revenue generation is efficient, a significant portion of earnings is required to cover operating costs and interest obligations. The balance sheet presents a leveraged position with total debt of $527.60M against cash holdings of $26.88M, and the debt-to-equity ratio is listed as N/A, suggesting a capital structure heavily reliant on borrowed funds to finance its real estate portfolio. Liquidity analysis shows a current ratio of 0.86, which indicates that the company's short-term assets are insufficient to cover its short-term liabilities without relying on asset sales or refinancing. Return metrics include a return on assets of 3.2%, while the return on equity is listed as N/A, suggesting that management effectiveness in generating returns on the total asset base is moderate, though the lack of an ROE figure limits the assessment of equity-specific performance.
Valuation Assessment
Valuation multiples for New England Realty Associates Limited Partnership show a trailing P/E ratio of 35.67, while the forward P/E is listed as N/A, implying that market expectations for future earnings growth are either undefined or not reflected in a projected multiple. The price-to-book ratio stands at -2.90, which indicates a market valuation that is negative relative to book value, a common characteristic for real estate investment trusts where asset values are recorded at historical costs rather than current market prices. Alternative valuation metrics such as a price-to-sales ratio of 2.35 and an EV/EBITDA of 10.90 suggest that the market is pricing the company based on revenue multiples and enterprise value relative to cash flow, rather than traditional equity earnings. Price action over the last year has seen the stock trade between a 52-week high of $81.53 and a 52-week low of $61.00, meaning the current price sits within this historical range but the exact percentage deviation depends on the real-time share price not provided in the facts. The beta value of 0.16 indicates that the stock price exhibits very low volatility relative to the broader market, moving significantly less than the overall market index and offering a distinct risk profile for income-focused portfolios.
Growth & Income
Revenue growth for the trailing twelve months stands at 15.9%, while earnings growth is listed as N/A, preventing a direct comparison but suggesting that revenue expansion is the primary driver of recent activity. For dividend payers, the company offers a dividend yield of 2.6% with a payout ratio of 93.7%, which implies that the dividend payment consumes a very high percentage of reported earnings, raising questions regarding the sustainability of the payout given the high leverage and moderate profit margins. The high payout ratio suggests that the company is distributing a large share of its earnings to shareholders, which may be necessary to maintain the yield but leaves limited retained earnings for reinvestment. Overall, the growth and income profile is characterized by strong revenue expansion and a high-yield dividend, though the financial structure relies heavily on debt service and the sustainability of the payout ratio is contingent on maintaining current revenue levels.