<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-END> MAR-31-1999 <CASH> 4,837,767 <SECURITIES> 0 <RECEIVABLES> 267,395 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 5,105,162 <PP&E> 25,424,815 <DEPRECIATION> 4,938,222 <TOTAL-ASSETS> 36,810,792 <CURRENT-LIABILITIES> 543,253 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 36,267,539 <TOTAL-LIABILITY-AND-EQUITY> 36,810,792 <SALES> 0 <TOTAL-REVENUES> 1,630,855 <CGS> 0 <TOTAL-COSTS> 153,601 <OTHER-EXPENSES> 246,616 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,230,638 <INCOME-TAX> 0 <INCOME-CONTINUING> 1,230,638 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,230,638 <EPS-PRIMARY> .49 <EPS-DILUTED> .49