<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> MAR-31-1998 <CASH> 2,801,270 <SECURITIES> 0 <RECEIVABLES> 260,974 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 3,062,244 <PP&E> 33,353,075 <DEPRECIATION> 5,686,115 <TOTAL-ASSETS> 39,397,374 <CURRENT-LIABILITIES> 386,071 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 39,011,303 <TOTAL-LIABILITY-AND-EQUITY> 39,397,374 <SALES> 0 <TOTAL-REVENUES> 1,131,551 <CGS> 0 <TOTAL-COSTS> 115,995 <OTHER-EXPENSES> 294,872 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 720,684 <INCOME-TAX> 0 <INCOME-CONTINUING> 720,684 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 720,684 <EPS-PRIMARY> 0.30 <EPS-DILUTED> 0.30