SB Partners 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 12, 2019
Document Information [Line Items]
Entity Registrant Name	SB PARTNERS
Entity Central Index Key	0000087047
Trading Symbol	sbp
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		0
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Assets:
Land	$ 470,000	$ 470,000
Buildings, furnishings and improvements	5,239,859	5,239,859
Less - accumulated depreciation	(2,285,065)	(2,249,190)
Total real estate property	3,424,794	3,460,669
Investment in Sentinel Omaha, LLC, net of reserve for fair value of $10,791,509 and $10,709,724 at March 31, 2019 and December 31, 2018, respectively	43,166,013	42,838,890
Total investments	46,590,807	46,299,559
Other Assets -
Cash and cash equivalents	373,873	338,239
Other	4,465	7,789
Total assets	46,969,145	46,645,587
Liabilities:
Accounts payable	550,245	561,800
Tenant security deposit	104,212	104,212
Accrued expenses	3,554,011	3,408,317
Total liabilities	4,208,468	4,074,329
Partners' Equity (Deficit):
Limited partner - 7,753 units	42,773,598	42,584,203
General partner - 1 unit	(12,921)	(12,945)
Total partners' equity	42,760,677	42,571,258
Total liabilities and partners' equity	$ 46,969,145	$ 46,645,587

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Investment in Sentinel Omaha, LLC, reserve for fair value	$ 10,791,509	$ 10,709,724
Limited partner - units (in shares)	7,753	7,753
General partner - units (in shares)	1	1

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Base rental income	$ 189,785	$ 184,203
Other rental income	88,532	87,041
Interest income	39	2,537
Total revenues	278,356	273,781
Expenses:
Real estate operating expenses	65,908	67,786
Amortization of deferred financing costs		5,460
Depreciation	35,875	39,765
Real estate taxes	31,959	30,468
Management fees	252,254	226,164
Other	30,064	30,475
Total expenses	416,060	400,118
Loss from operations	(137,704)	(126,337)
Equity in net income of investment	408,908	1,111,737
(Increase) decrease in reserve for value of investment	(81,785)	2,282,974
Net income	189,419	3,268,374
Income allocated to general partner	24	422
Income allocated to limited partners	$ 189,395	$ 3,267,952
Income per unit of limited partnership interest (basic and diluted)
Net income (in dollars per share)	$ 24.43	$ 421.56
Weighted Average Number of Units of Limited Partnership Interest Outstanding (in shares)	7,753	7,753

Consolidated Statements of Chan

Consolidated Statements of Changes in Partners' Equity (Deficit) (Unaudited) - 3 months ended Mar. 31, 2019 - USD ($)	Limited Partner [Member]Units of Partnership [Member]	Limited Partner [Member]Cumulative Cash Distributions [Member]	Limited Partner [Member]Retained Earnings [Member]	Limited Partner [Member]	General Partner [Member]Units of Partnership [Member]	General Partner [Member]Cumulative Cash Distributions [Member]	General Partner [Member]Retained Earnings [Member]	General Partner [Member]	Total
Balance (in shares) at Dec. 31, 2018	7,753				1
Balance at Dec. 31, 2018	$ 119,968,973	$ (111,721,586)	$ 34,336,816	$ 42,584,203	$ 10,000	$ (26,364)	$ 3,419	$ (12,945)	$ 42,571,258
Net income			189,395	189,395			24	24	189,419
Balance (in shares) at Mar. 31, 2019	7,753				1
Balance at Mar. 31, 2019	$ 119,968,973	$ (111,721,586)	$ 34,526,211	$ 42,773,598	$ 10,000	$ (26,364)	$ 3,443	$ (12,921)	$ 42,760,677

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Cash Flows From Operating Activities:
Net income	$ 189,419	$ 3,268,374
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) of investment	(408,908)	(1,111,737)
Increase (decrease) in reserve for value of investment	81,785	(2,282,974)
Depreciation and amortization	35,875	45,225
Net decrease in operating assets	3,324	2,972
Net (decrease) increase in accounts payable	(11,555)	14,769
Net increase in accrued expenses	145,694	119,605
Net cash provided by operating activites and net change in cash and cash equivalents and cash in escrow	35,634	56,234
Cash and cash equivalents and cash in escrow at beginning of period	338,239	1,954,705	$ 1,954,705
Cash and cash equivalents and cash in escrow at end of period	$ 373,873	$ 2,010,939	$ 338,239

Note 1 - Organization and Signi

Note 1 - Organization and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	( 1 SB Partners, a New York limited partnership, and its subsidiaries (collectively, the "Partnership" or the “Registrant”), have been engaged since April 1971 The consolidated financial statements included herein are unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to a fair presentation of the financial position, results of operations and cash flows for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not 10 The results of operations for the three March 31, 2019 not For a discussion of the significant accounting and financial reporting policies of the Partnership, refer to the Annual Report on Form 10–K December 31, 2018.

Note 2 - Investments in Real Es

Note 2 - Investments in Real Estate	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Real Estate Disclosure [Text Block]	( 2 As of March 31, 2019, March 31, 2019 December 31, 2018. No. of Year of Real Estate at Cost Type Prop. Acquisition Description 3/31/2019 12/31/2018 Industrial flex property 1 2002 60,345 sf $ 5,709,859 $ 5,709,859 Less: Accumulated depreciation (2,285,065 ) (2,249,190 ) Investment in real estate $ 3,424,794 $ 3,460,669 The Partnership’s wholly owned property located in Maple Grove, Minnesota is 100% October 31, 2024. 3%

Note 3 - Assets Measured at Fai

Note 3 - Assets Measured at Fair Value	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	( 3 The accounting guidance for Fair Value Measurements establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in determining fair value. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on the assumptions that market participants would use in pricing the asset or liability, not The three ● Level 1 ● Level 2 ● Level 3 The following major categories of assets were measured at fair value as of March 31, 2019 December 31, 2018: Level 3: March 31, Significant 2019 Unobservable (Unaudited) Inputs Total Assets Investment in Sentinel Omaha, LLC ("Omaha") $ 53,957,522 $ 53,957,522 Reserve for fair value of investment (10,791,509 ) (10,791,509 ) Total assets $ 43,166,013 $ 43,166,013 Level 3: December 31, Significant 2018 Unobservable (Audited) Inputs Total Assets Investment in Sentinel Omaha, LLC $ 53,548,614 $ 53,548,614 Reserve for fair value of investment (10,709,724 ) (10,709,724 ) Total assets $ 42,838,890 $ 42,838,890 The following is a reconciliation of the beginning and ending balances for assets measured at fair value using significant unobservable inputs (Level 3 March 31, 2019 December 31, 2018: Investment in Reserve for Sentinel fair value Omaha, LLC of investment Total Balance at January 1, 2018 $ 50,106,432 $ (12,526,608 ) $ 37,579,824 Equity in net income of investment 5,842,182 - 5,842,182 Distribution from investment (2,400,000 ) - (2,400,000 ) Decrease in reserve - 1,816,884 1,816,884 Balance at December 31, 2018 53,548,614 (10,709,724 ) 42,838,890 Equity in net income of investment 408,908 - 408,908 (Increase) in reserve - (81,785 ) (81,785 ) Balance at March 31, 2019 $ 53,957,522 $ (10,791,509 ) $ 43,166,013 Omaha was precluded from making distributions to its investors until its unsecured loan was paid in full. During the first 2018, first March 31, 2018 20%. October 16, 2018 $2,400,000.

Note 4 - Investment in Sentinel

Note 4 - Investment in Sentinel Omaha, LLC	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	( 4 In 2007, $37,200,000 March 31, 2019 eight five 30% The following are the condensed financial statements ( 000’s March 31, 2019 December 31, 2018 three March 31, 2019 2018. (Unaudited) (Audited) Balance Sheet March 31, 2019 December 31, 2018 Investment in real estate, net $ 289,349 $ 290,500 Other assets 14,522 13,960 Debt (121,110 ) (121,481 ) Other liabilities (2,903 ) (4,484 ) Members equity $ 179,858 $ 178,495 (Unaudited) (Unaudited) Statement of Operations March 31, 2019 March 31, 2018 Rent and other income $ 7,829 $ 9,341 Real estate operating expenses (3,777 ) (4,761 ) Other expenses (1,115 ) (1,649 ) Net realized gains - 9,919 Net unrealized (losses) (1,574 ) (9,145 ) Net increase in net assets $ 1,363 $ 3,705

Note 5 - Accrued Expenses

Note 5 - Accrued Expenses	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	( 5 The Partnership, its general partner and the holder of the unsecured loan had entered into a Management Subordination Agreement accruing a portion of the investment management fee payable by the Partnership to its general partner so long as the unsecured loan remained outstanding. On October 4, 2018, March 31, 2019 December 31, 2018, $3,554,011 $3,408,317,

Note 6 - Subsequent Event

Note 6 - Subsequent Event	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	( 6 On April 11, 2019, $5,100,000. April 16, 2019, $400 May 31, 2019. June 2019.

Note 2 - Investments in Real _2

Note 2 - Investments in Real Estate (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Real Estate Properties [Table Text Block]	No. of Year of Real Estate at Cost Type Prop. Acquisition Description 3/31/2019 12/31/2018 Industrial flex property 1 2002 60,345 sf $ 5,709,859 $ 5,709,859 Less: Accumulated depreciation (2,285,065 ) (2,249,190 ) Investment in real estate $ 3,424,794 $ 3,460,669

Note 3 - Assets Measured at F_2

Note 3 - Assets Measured at Fair Value (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	Level 3: March 31, Significant 2019 Unobservable (Unaudited) Inputs Total Assets Investment in Sentinel Omaha, LLC ("Omaha") $ 53,957,522 $ 53,957,522 Reserve for fair value of investment (10,791,509 ) (10,791,509 ) Total assets $ 43,166,013 $ 43,166,013 Level 3: December 31, Significant 2018 Unobservable (Audited) Inputs Total Assets Investment in Sentinel Omaha, LLC $ 53,548,614 $ 53,548,614 Reserve for fair value of investment (10,709,724 ) (10,709,724 ) Total assets $ 42,838,890 $ 42,838,890
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Investment in Reserve for Sentinel fair value Omaha, LLC of investment Total Balance at January 1, 2018 $ 50,106,432 $ (12,526,608 ) $ 37,579,824 Equity in net income of investment 5,842,182 - 5,842,182 Distribution from investment (2,400,000 ) - (2,400,000 ) Decrease in reserve - 1,816,884 1,816,884 Balance at December 31, 2018 53,548,614 (10,709,724 ) 42,838,890 Equity in net income of investment 408,908 - 408,908 (Increase) in reserve - (81,785 ) (81,785 ) Balance at March 31, 2019 $ 53,957,522 $ (10,791,509 ) $ 43,166,013

Note 4 - Investment in Sentin_2

Note 4 - Investment in Sentinel Omaha, LLC (Tables)	3 Months Ended
	Mar. 31, 2019
Statement of Operations [Member]
Notes Tables
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	(Unaudited) (Unaudited) Statement of Operations March 31, 2019 March 31, 2018 Rent and other income $ 7,829 $ 9,341 Real estate operating expenses (3,777 ) (4,761 ) Other expenses (1,115 ) (1,649 ) Net realized gains - 9,919 Net unrealized (losses) (1,574 ) (9,145 ) Net increase in net assets $ 1,363 $ 3,705
Balance Sheet [Member]
Notes Tables
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	(Unaudited) (Audited) Balance Sheet March 31, 2019 December 31, 2018 Investment in real estate, net $ 289,349 $ 290,500 Other assets 14,522 13,960 Debt (121,110 ) (121,481 ) Other liabilities (2,903 ) (4,484 ) Members equity $ 179,858 $ 178,495

Note 2 - Investments in Real _3

Note 2 - Investments in Real Estate (Details Textual)	Mar. 31, 2019
Rent Increase, Yearly, Percentage	3.00%

Note 2 - Investments in Real _4

Note 2 - Investments in Real Estate - Summary of Investments in Real Estate (Details)	3 Months Ended
	Mar. 31, 2019USD ($)ft²	Dec. 31, 2018USD ($)
Less: Accumulated depreciation	$ (2,285,065)	$ (2,249,190)
Investment in real estate	$ 3,424,794	3,460,669
Industrial Flex Property [Member]
No. of Prop.	1
Year of Acquisition	2002
Description (Square Foot) | ft²	60,345
Investment in real estate, at cost	$ 5,709,859	5,709,859
Less: Accumulated depreciation	(2,285,065)	(2,249,190)
Investment in real estate	$ 3,424,794	$ 3,460,669

Note 3 - Assets Measured at F_3

Note 3 - Assets Measured at Fair Value (Details Textual) - Sentinel Omaha LLC [Member] - USD ($)	Oct. 16, 2018	Mar. 31, 2018
Equity Method Investment, Fair Value, Reserve, Percent		20.00%
Payoff Agreement [Member]
Proceeds from Equity Method Investment, Distribution	$ 2,400,000

Note 3 - Assets Measured at F_4

Note 3 - Assets Measured at Fair Value - Fair Value Measurement of Assets (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reserve for fair value of investment	$ (10,791,509)	$ (10,709,724)
Total assets	43,166,013	42,838,890
Sentinel Omaha LLC [Member]
Investment in Sentinel Omaha, LLC ("Omaha")	53,957,522	53,548,614
Reserve for fair value of investment	(10,791,509)	(10,709,724)
Total assets	43,166,013	42,838,890
Fair Value, Inputs, Level 3 [Member] | Sentinel Omaha LLC [Member]
Investment in Sentinel Omaha, LLC ("Omaha")	53,957,522	53,548,614	$ 50,106,432
Reserve for fair value of investment	(10,791,509)	(10,709,724)
Total assets	$ 43,166,013	$ 42,838,890

Note 3 - Assets Measured at F_5

Note 3 - Assets Measured at Fair Value - Reconciliation of Assets Measured at Fair Value (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Increase (decrease) in reserve for value of investment	$ 81,785	$ (2,282,974)
Sentinel Omaha LLC [Member]
Balance, Investment in Sentinel Omaha, LLC	53,548,614
Balance, Investment in Sentinel Omaha, LLC	53,957,522		$ 53,548,614
Fair Value, Inputs, Level 3 [Member] | Sentinel Omaha LLC [Member]
Balance, Investment in Sentinel Omaha, LLC	53,548,614	50,106,432	50,106,432
Equity in net income of investment	408,908		5,842,182
Distribution from investment			(2,400,000)
Increase (decrease) in reserve for value of investment
Balance, Investment in Sentinel Omaha, LLC	53,957,522		53,548,614
Balance, Reserve for fair value of investment	(10,709,724)	(12,526,608)	(12,526,608)
Decrease in reserve	(81,785)		1,816,884
Balance, Reserve for fair value of investment	(10,791,509)		(10,709,724)
Balance	42,838,890	$ 37,579,824	37,579,824
Balance	$ 43,166,013		$ 42,838,890

Note 4 - Investment in Sentin_3

Note 4 - Investment in Sentinel Omaha, LLC (Details Textual) - Sentinel Omaha LLC [Member]	Mar. 31, 2019	Dec. 31, 2007USD ($)
Investment Owned, at Cost		$ 37,200,000
Number of Multifamily Properties	8
Number of Markets	5
Equity Method Investment, Ownership Percentage	30.00%

Note 4 - Investment in Sentin_4

Note 4 - Investment in Sentinel Omaha, LLC - Balance Sheet (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Other assets	$ 4,465	$ 7,789
Sentinel Omaha LLC [Member]
Investment in real estate, net	289,349	290,500
Other assets	14,522,000	13,960,000
Debt	(121,110,000)	(121,481,000)
Other liabilities	(2,903,000)	(4,484,000)
Members equity	$ 179,858,000	$ 178,495,000

Note 4 - Investment in Sentin_5

Note 4 - Investment in Sentinel Omaha, LLC - Statement of Operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Rent and other income	$ 278,356	$ 273,781
Real estate operating expenses	(65,908)	(67,786)
Other expenses	(30,064)	(30,475)
Net increase in net assets	189,419	3,268,374
Sentinel Omaha LLC [Member]
Rent and other income	7,829,000	9,341,000
Real estate operating expenses	(3,777,000)	(4,761,000)
Other expenses	(1,115,000)	(1,649,000)
Net realized gains		9,919,000
Net unrealized (losses)	(1,574,000)	(9,145,000)
Net increase in net assets	$ 1,363,000	$ 3,705,000

Note 5 - Accrued Expenses (Deta

Note 5 - Accrued Expenses (Details Textual) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Sentinel Omaha LLC [Member] | Investment Advisory, Management and Administrative Service [Member] | Accounts Payable and Accrued Liabilities [Member]
Management Fee Payable	$ 3,554,011	$ 3,408,317

Note 6 - Subsequent Event (Deta

Note 6 - Subsequent Event (Details Textual) - USD ($)	Apr. 16, 2019	Apr. 11, 2019	Jun. 30, 2019
Forecast [Member]
Distribution Made to Limited Partner, Distributions Paid, Per Unit			$ 400
Subsequent Event [Member]
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 400
Subsequent Event [Member] | Sentinel Omaha LLC [Member]
Proceeds from Equity Method Investment, Distribution		$ 5,100,000