The Hamilton Company (NEN) investor relations material

Executive summary

• Revenue for Q1 2026 rose 16.9% year-over-year to $24.2M, driven by new acquisitions and higher rents, but net income swung to a loss of $3.9M from a profit of $3.8M in Q1 2025 due to sharply higher expenses and interest costs.

• Operating expenses increased 56.8% year-over-year, with significant contributions from new property costs, higher administrative and legal expenses, and increased depreciation.

• The partnership completed major acquisitions and a new development, funded by debt and cash reserves, and sold two commercial properties at a loss.

Financial highlights

• Rental income grew to $23.96M from $20.50M, with 95% from residential units.

• Expenses rose to $22.67M from $14.46M, mainly due to new property costs and higher legal and public policy expenses.

• Interest expense increased 50.7% to $5.71M, reflecting new borrowings for acquisitions.

• Net loss per unit was $(33.61) versus earnings of $32.53 per unit in Q1 2025.

• Cash and cash equivalents at quarter-end were $25.6M.

Outlook and guidance

• Management expects slowing rent growth for the remainder of 2026 and is monitoring potential rent control legislation in Massachusetts.

• Cash from operations is expected to be sufficient for current operations, distributions, and debt payments.