<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1995 <PERIOD-END> JUN-30-1995 <CASH> 3,220,863 <SECURITIES> 0 <RECEIVABLES> 176,062 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 3,352,351 <PP&E> 33,353,075 <DEPRECIATION> 3,404,538 <TOTAL-ASSETS> 42,157,654 <CURRENT-LIABILITIES> 441,670 <BONDS> 0 <COMMON> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 41,715,984 <TOTAL-LIABILITY-AND-EQUITY> 42,157,654 <SALES> 0 <TOTAL-REVENUES> 2,158,684 <CGS> 0 <TOTAL-COSTS> 113,427 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,421,458 <INCOME-TAX> 0 <INCOME-CONTINUING> 1,421,458 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,421,458 <EPS-PRIMARY> .55 <EPS-DILUTED> .55