<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1995 <PERIOD-END> SEP-30-1995 <CASH> 3,268,269 <SECURITIES> 0 <RECEIVABLES> 177,069 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 3,352,325 <PP&E> 33,353,075 <DEPRECIATION> 3,611,954 <TOTAL-ASSETS> 42,463,983 <CURRENT-LIABILITIES> 840,468 <BONDS> 0 <COMMON> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 41,623,515 <TOTAL-LIABILITY-AND-EQUITY> 42,623,515 <SALES> 0 <TOTAL-REVENUES> 3,094,888 <CGS> 0 <TOTAL-COSTS> 193,485 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 2,091,693 <INCOME-TAX> 0 <INCOME-CONTINUING> 2,091,693 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,091,693 <EPS-PRIMARY> 0.81 <EPS-DILUTED> 0.81