<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> JUN-30-1998 <CASH> 3,133,756 <SECURITIES> 270,750 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 3,404,506 <PP&E> 33,353,075 <DEPRECIATION> 5,893,581 <TOTAL-ASSETS> 39,362,644 <CURRENT-LIABILITIES> 678,463 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 38,684,181 <TOTAL-LIABILITY-AND-EQUITY> 39,362,644 <SALES> 0 <TOTAL-REVENUES> 2,283,977 <CGS> 0 <TOTAL-COSTS> 330,683 <OTHER-EXPENSES> 598,726 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,354,568 <INCOME-TAX> 0 <INCOME-CONTINUING> 1,354,568 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,354,568 <EPS-PRIMARY> 0.46 <EPS-DILUTED> 0.46