<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-END> JUN-30-1999 <CASH> 7,606,398 <SECURITIES> 0 <RECEIVABLES> 241,281 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 7,847,679 <PP&E> 25,424,815 <DEPRECIATION> 5,090,514 <TOTAL-ASSETS> 35,980,281 <CURRENT-LIABILITIES> 622,571 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 35,357,710 <TOTAL-LIABILITY-AND-EQUITY> 35,980,281 <SALES> 0 <TOTAL-REVENUES> 4,060,169 <CGS> 0 <TOTAL-COSTS> 753,462 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 3,306,707 <INCOME-TAX> 0 <INCOME-CONTINUING> 3,306,707 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,306,707 <EPS-BASIC> 1.28 <EPS-DILUTED> 1.28