<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III, LP <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1995 <PERIOD-END> MAR-31-1995 <CASH> 2,824,772 <SECURITIES> 0 <RECEIVABLES> 257,430 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 3,037,628 <PP&E> 33,353,075 <DEPRECIATION> 3,197,122 <TOTAL-ASSETS> 42,046,190 <CURRENT-LIABILITIES> 280,582 <BONDS> 0 <COMMON> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 41,765,608 <TOTAL-LIABILITY-AND-EQUITY> 42,046,190 <SALES> 0 <TOTAL-REVENUES> 1,081,082 <CGS> 0 <TOTAL-COSTS> 64,206 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 708,378 <INCOME-TAX> 0 <INCOME-CONTINUING> 708,378 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 708,378 <EPS-PRIMARY> 0.27 <EPS-DILUTED> 0.27