SB Partners 10-Q 12 Aug 19 2019 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jun. 30, 2019shares
Document Information [Line Items]
Entity Registrant Name	SB PARTNERS
Entity Central Index Key	0000087047
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
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Assets:
Land	$ 470,000	$ 470,000
Buildings, furnishings and improvements	5,247,109	5,239,859
Less - accumulated depreciation	(2,320,940)	(2,249,190)
Total real estate property	3,396,169	3,460,669
Investment in Sentinel Omaha, LLC, net of reserve for fair value of $9,270,695 and $10,709,724 at June 30, 2019 and December 31, 2018, respectively	37,082,754	42,838,890
Total investments	40,478,923	46,299,559
Other Assets -
Cash and cash equivalents	1,725,979	338,239
Other	1,140	7,789
Total assets	42,206,042	46,645,587
Liabilities:
Accounts payable	190,774	561,800
Tenant security deposit	105,611	104,212
Accrued expenses	91,235	3,408,317
Total liabilities	387,620	4,074,329
Partners' Equity (Deficit):
Limited partner - 7,753 units	41,831,464	42,584,203
General partner - 1 unit	(13,042)	(12,945)
Total partners' equity	41,818,422	42,571,258
Total liabilities and partners' equity	$ 42,206,042	$ 46,645,587

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Investment in Sentinel Omaha, LLC, reserve for fair value	$ 9,270,695	$ 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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Base rental income	$ 189,785	$ 184,203	$ 379,570	$ 368,406
Other rental income	88,532	87,041	177,064	174,082
Interest income	676	5,825	715	8,362
Total revenues	278,993	277,069	557,349	550,850
Expenses:
Real estate operating expenses	85,743	72,007	151,651	139,794
Amortization of deferred financing costs		1,820		7,279
Depreciation	35,875	39,765	71,750	79,530
Real estate taxes	32,765	30,466	64,724	60,934
Management fees	250,746	228,903	503,000	455,067
Other	31,460	30,734	61,524	61,209
Total expenses	436,589	403,695	852,649	803,813
Loss from operations	(157,596)	(126,626)	(295,300)	(252,963)
Equity in net income of investment	795,927	1,116,053	1,204,835	2,227,790
Decrease (increase) in reserve for value of investment	1,520,814	(223,210)	1,439,029	2,059,764
Net income	2,159,145	766,217	2,348,564	4,034,591
Income allocated to general partner	278	99	303	520
Income allocated to limited partners	$ 2,158,867	$ 766,118	$ 2,348,261	$ 4,034,071
Income per unit of limited partnership interest (basic and diluted)
Net income (in dollars per share)	$ 278.49	$ 98.83	$ 302.92	$ 520.39
Weighted Average Number of Units of Limited Partnership Interest Outstanding (in shares)	7,753	7,753	7,753	7,753

Consolidated Statements of Chan

Consolidated Statements of Changes in Partners' Equity (Deficit) (Unaudited) - 6 months ended Jun. 30, 2019 - USD ($)	General Partner [Member]Units of Partnership [Member]	General Partner [Member]Cumulative Cash Distributions [Member]	General Partner [Member]Retained Earnings [Member]	General Partner [Member]	Limited Partner [Member]Units of Partnership [Member]	Limited Partner [Member]Cumulative Cash Distributions [Member]	Limited Partner [Member]Retained Earnings [Member]	Limited Partner [Member]	Total
Balance (in shares) at Dec. 31, 2018	1				7,753
Balance at Dec. 31, 2018	$ 10,000	$ (26,364)	$ 3,419	$ (12,945)	$ 119,968,973	$ (111,721,586)	$ 34,336,816	$ 42,584,203	$ 42,571,258
Net income			303	303			2,348,261	2,348,261	2,348,564
Distribution paid		(400)		(400)		(3,101,000)		(3,101,000)
Balance (in shares) at Jun. 30, 2019	1				7,753
Balance at Jun. 30, 2019	$ 10,000	$ (26,764)	$ 3,722	$ (13,042)	$ 119,968,973	$ (114,822,586)	$ 36,685,077	$ 41,831,464	$ 41,818,422

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Cash Flows From Operating Activities:
Net income	$ 2,159,145	$ 766,217	$ 2,348,564	$ 4,034,591
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (income) of investment	(795,927)	(1,116,053)	(1,204,835)	(2,227,790)
(Decrease) in reserve for value of investment	(1,520,814)	223,210	(1,439,029)	(2,059,764)
Depreciation and amortization			71,750	86,810
Net decrease in operating assets			6,649	5,946
Net (decrease) in accounts payable			(371,026)	(30,297)
Net increase in tenant security deposit			1,399	1,399
Net (decrease) increase in accrued expenses			(3,317,082)	241,947
Distributions from investment in Sentinel Omaha, LLC			8,400,000
Net cash provided by operating activities			4,496,390	52,842
Cash Flows From Investing Activities:
Capital additions to real estate owned			(7,250)
Net cash used in investing activities			(7,250)
Cash Flows From Financing Activities:
Distribution paid to partners			(3,101,400)
Repayment of loan payable				(32,714)
Net cash used in financing activities			(3,101,400)	(32,714)
Net change in cash and cash equivalents and cash in escrow			1,387,740	20,128
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	$ 1,725,979	$ 1,974,833	$ 1,725,979	$ 1,974,833	$ 338,239

Note 1 - Organization and Signi

Note 1 - Organization and Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 six June 30, 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	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Real Estate Disclosure [Text Block]	( 2 As of June 30, 2019, June 30, 2019 December 31, 2018. No. of Year of Real Estate at Cost Type Prop. Acquisition Description 6/30/2019 12/31/2018 Industrial flex property 1 2002 60,345 sf $ 5,717,109 $ 5,709,859 Less: Accumulated depreciation (2,320,940 ) (2,249,190 ) Investment in real estate $ 3,396,169 $ 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	6 Months Ended
	Jun. 30, 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 June 30, 2019 December 31, 2018: Level 3: June 30, Significant 2019 Unobservable (Unaudited) Inputs Total Assets Investment in Sentinel Omaha, LLC ("Omaha") $ 46,353,449 $ 46,353,449 Reserve for fair value of investment (9,270,695 ) (9,270,695 ) Total assets $ 37,082,754 $ 37,082,754 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 June 30, 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 1,204,835 - 1,204,835 Distribution from investment (8,400,000 ) (8,400,000 ) Decrease in reserve - 1,439,029 1,439,029 Balance at June 30, 2019 $ 46,353,449 $ (9,270,695 ) $ 37,082,754

Note 4 - Investment in Sentinel

Note 4 - Investment in Sentinel Omaha, LLC	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	( 4 In 2007, $37,200,000 June 30, 2019 six three 30% The following are the condensed financial statements ( 000’s June 30, 2019 December 31, 2018 six June 30, 2019 2018. (Unaudited) (Audited) Balance Sheet June 30, 2019 December 31, 2018 Investment in real estate, net $ 215,700 $ 290,500 Other assets 15,417 13,960 Debt (74,155 ) (121,481 ) Other liabilities (2,450 ) (4,484 ) Members equity $ 154,512 $ 178,495 (Unaudited) (Unaudited) Statement of Operations June 30, 2019 June 30, 2018 Rent and other income $ 14,113 $ 17,514 Real estate operating expenses (6,705 ) (8,432 ) Other expenses (2,184 ) (2,876 ) Net realized gains 13,635 9,940 Net unrealized (losses) (14,842 ) (8,720 ) Net increase in net assets $ 4,017 $ 7,426 Omaha was precluded from making distributions to its investors until its unsecured loan was paid in full. During the first 2018, first October 16, 2018 $2,400,000. June 30, 2019, two $8,400,000

Note 5 - Accrued Expenses

Note 5 - Accrued Expenses	6 Months Ended
	Jun. 30, 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, June 30, 2019, June 30, 2019 December 31, 2018, $91,235 $3,408,317,

Note 6 - Distributions to Partn

Note 6 - Distributions to Partners	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Partners' Capital Notes Disclosure [Text Block]	( 6 On April 16, 2019, $400 May 31, 2019. June 4, 2019.

Note 2 - Investments in Real _2

Note 2 - Investments in Real Estate (Tables)	6 Months Ended
	Jun. 30, 2019
Notes Tables
Schedule of Real Estate Properties [Table Text Block]	No. of Year of Real Estate at Cost Type Prop. Acquisition Description 6/30/2019 12/31/2018 Industrial flex property 1 2002 60,345 sf $ 5,717,109 $ 5,709,859 Less: Accumulated depreciation (2,320,940 ) (2,249,190 ) Investment in real estate $ 3,396,169 $ 3,460,669

Note 3 - Assets Measured at F_2

Note 3 - Assets Measured at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2019
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	Level 3: June 30, Significant 2019 Unobservable (Unaudited) Inputs Total Assets Investment in Sentinel Omaha, LLC ("Omaha") $ 46,353,449 $ 46,353,449 Reserve for fair value of investment (9,270,695 ) (9,270,695 ) Total assets $ 37,082,754 $ 37,082,754 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 1,204,835 - 1,204,835 Distribution from investment (8,400,000 ) (8,400,000 ) Decrease in reserve - 1,439,029 1,439,029 Balance at June 30, 2019 $ 46,353,449 $ (9,270,695 ) $ 37,082,754

Note 4 - Investment in Sentin_2

Note 4 - Investment in Sentinel Omaha, LLC (Tables)	6 Months Ended
	Jun. 30, 2019
Statement of Operations [Member]
Notes Tables
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	(Unaudited) (Unaudited) Statement of Operations June 30, 2019 June 30, 2018 Rent and other income $ 14,113 $ 17,514 Real estate operating expenses (6,705 ) (8,432 ) Other expenses (2,184 ) (2,876 ) Net realized gains 13,635 9,940 Net unrealized (losses) (14,842 ) (8,720 ) Net increase in net assets $ 4,017 $ 7,426
Balance Sheet [Member]
Notes Tables
Real Estate Investment Financial Statements, Disclosure [Table Text Block]	(Unaudited) (Audited) Balance Sheet June 30, 2019 December 31, 2018 Investment in real estate, net $ 215,700 $ 290,500 Other assets 15,417 13,960 Debt (74,155 ) (121,481 ) Other liabilities (2,450 ) (4,484 ) Members equity $ 154,512 $ 178,495

Note 2 - Investments in Real _3

Note 2 - Investments in Real Estate (Details Textual)	Jun. 30, 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)	6 Months Ended
	Jun. 30, 2019USD ($)ft²	Dec. 31, 2018USD ($)
Less: Accumulated depreciation	$ (2,320,940)	$ (2,249,190)
Investment in real estate	$ 3,396,169	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	$ 5,717,109	5,709,859
Less: Accumulated depreciation	(2,320,940)	(2,249,190)
Investment in real estate	$ 3,396,169	$ 3,460,669

Note 3 - Assets Measured at F_3

Note 3 - Assets Measured at Fair Value - Fair Value Measurement of Assets (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Reserve for fair value of investment	$ (9,270,695)	$ (10,709,724)
Total assets	37,082,754	42,838,890
Sentinel Omaha LLC [Member]
Investment in Sentinel Omaha, LLC ("Omaha")	46,353,449	53,548,614
Reserve for fair value of investment	(9,270,695)	(10,709,724)
Total assets	37,082,754	42,838,890
Fair Value, Inputs, Level 3 [Member] | Sentinel Omaha LLC [Member]
Investment in Sentinel Omaha, LLC ("Omaha")	46,353,449	53,548,614	$ 50,106,432
Reserve for fair value of investment	(9,270,695)	(10,709,724)
Total assets	$ 37,082,754	$ 42,838,890

Note 3 - Assets Measured at F_4

Note 3 - Assets Measured at Fair Value - Reconciliation of Assets Measured at Fair Value (Details) - USD ($)	Oct. 16, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Distribution from investment		$ (8,400,000)
Distribution from investment		(8,400,000)
Sentinel Omaha LLC [Member]
Balance, Investment in Sentinel Omaha, LLC		53,548,614
Distribution from investment	$ (2,400,000)	(8,400,000)
Balance, Investment in Sentinel Omaha, LLC		46,353,449		$ 53,548,614
Distribution from investment	$ (2,400,000)	(8,400,000)
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		1,204,835		5,842,182
Distribution from investment		(8,400,000)		(2,400,000)
Balance, Investment in Sentinel Omaha, LLC		46,353,449		53,548,614
Balance, Reserve for fair value of investment		(10,709,724)	(12,526,608)	(12,526,608)
Decrease in reserve		1,439,029		1,816,884
Balance, Reserve for fair value of investment		(9,270,695)		(10,709,724)
Balance		42,838,890	$ 37,579,824	37,579,824
Equity in net income of investment		1,204,835		5,842,182
Distribution from investment		(8,400,000)		(2,400,000)
Decrease in reserve		1,439,029		1,816,884
Balance		$ 37,082,754		$ 42,838,890

Note 4 - Investment in Sentin_3

Note 4 - Investment in Sentinel Omaha, LLC (Details Textual) - USD ($)	Oct. 16, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2007
Proceeds from Equity Method Investment, Distribution		$ 8,400,000
Sentinel Omaha LLC [Member]
Investment Owned, at Cost				$ 37,200,000
Equity Method Investment, Ownership Percentage		30.00%
Proceeds from Equity Method Investment, Distribution	$ 2,400,000	$ 8,400,000

Note 4 - Investment in Sentin_4

Note 4 - Investment in Sentinel Omaha, LLC - Balance Sheet (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Other assets	$ 1,140	$ 7,789
Sentinel Omaha LLC [Member]
Investment in real estate, net	215,700,000	290,500,000
Other assets	15,417,000	13,960,000
Debt	(74,155,000)	(121,481,000)
Other liabilities	(2,450,000)	(4,484,000)
Members equity	$ 154,512,000	$ 178,495,000

Note 4 - Investment in Sentin_5

Note 4 - Investment in Sentinel Omaha, LLC - Statement of Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Rent and other income	$ 278,993	$ 277,069	$ 557,349	$ 550,850
Real estate operating expenses	(85,743)	(72,007)	(151,651)	(139,794)
Other expenses	(31,460)	(30,734)	(61,524)	(61,209)
Net increase in net assets	$ 2,159,145	$ 766,217	2,348,564	4,034,591
Sentinel Omaha LLC [Member]
Rent and other income			14,113,000	17,514,000
Real estate operating expenses			(6,705,000)	(8,432,000)
Other expenses			(2,184,000)	(2,876,000)
Net realized gains			13,635,000	9,940,000
Net unrealized (losses)			(14,842,000)	(8,720,000)
Net increase in net assets			$ 4,017,000	$ 7,426,000

Note 5 - Accrued Expenses (Deta

Note 5 - Accrued Expenses (Details Textual) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Sentinel Omaha LLC [Member] | Investment Advisory, Management and Administrative Service [Member] | Accounts Payable and Accrued Liabilities [Member]
Management Fee Payable	$ 91,235	$ 3,408,317

Note 6 - Distributions to Par_2

Note 6 - Distributions to Partners (Details Textual)	Apr. 16, 2019$ / shares
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 400