Exhibit 99.1
SB PARTNERS | |||||||||||
(a New York limited partnership) | |||||||||||
PRO FORMA BALANCE SHEET | |||||||||||
As of June 30, 2022 | |||||||||||
(Unaudited) |
As | Pro Forma | Pro Forma | ||||||||||
originally | Adjustments | Balance | ||||||||||
reported | (See Note 2) | Sheet | ||||||||||
Assets: | ||||||||||||
Investments - | ||||||||||||
Real estate held for sale | $ | 3,856,778 | $ | (3,856,778 | ) | $ | - | |||||
Investment in Sentinel Omaha, LLC net | 3,354,346 | - | 3,354,346 | |||||||||
| 7,211,124 | (3,856,778 | ) | 3,354,346 | |||||||||
Other Assets - | ||||||||||||
Cash and cash equivalents | 2,809,150 | 12,453,687 | 15,262,837 | |||||||||
Other assets | 1,471 | - | 1,471 | |||||||||
Other asset in discontinued operations | 48,424 | (48,424 | ) | - | ||||||||
Total assets | $ | 10,070,169 | $ | 8,548,485 | $ | 18,618,654 | ||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 30,405 | $ | - | $ | 30,405 | ||||||
Other liabilities in discontinued operations | 709 | (709 | ) | - | ||||||||
Total liabilities | 31,114 | (709 | ) | 30,405 | ||||||||
Partners' Capital: | ||||||||||||
Limited partner - 7,753 units | 10,056,196 | 8,548,091 | 18,604,287 | |||||||||
General partner - 1 unit | (17,141 | ) | 1,103 | (16,038 | ) | |||||||
Total partners' capital | 10,039,055 | 8,549,194 | 18,588,249 | |||||||||
Total liabilities and partners' capital | $ | 10,070,169 | $ | 8,548,485 | $ | 18,618,654 | ||||||
See notes to pro forma consolidated financial statements
SB PARTNERS | |||||||||||
(a New York limited partnership) | |||||||||||
PRO FORMA STATEMENT OF OPERATIONS | |||||||||||
For the Six Months Ended June 30, 2022 | |||||||||||
(Unaudited) |
As | Pro Forma | Pro Forma | ||||||||||
originally | Adjustments | Income | ||||||||||
reported | (See Note 2) | Statement | ||||||||||
Equity in net (loss) of investment | $ | (32,223 | ) | $ | - | $ | (32,223 | ) | ||||
Partnership income and expenses: | ||||||||||||
Interest income | 13,331 | - | 13,331 | |||||||||
Partnership expenses | (332,627 | ) | 33,724 | (298,903 | ) | |||||||
Net (loss) from continuing operations | (351,519 | ) | 33,724 | (317,795 | ) | |||||||
Income from discontinued operation | 315,218 | (315,218 | ) | - | ||||||||
Net loss | (36,301 | ) | (281,494 | ) | (317,795 | ) | ||||||
Loss allocated to general partner | (5 | ) | (36 | ) | (41 | ) | ||||||
Loss allocated to limited partners | $ | (36,296 | ) | $ | (281,458 | ) | $ | (317,754 | ) | |||
Earnings per unit of limited partnership interest (basic and diluted): | ||||||||||||
Continuing operations | $ | (45.34 | ) | $ | - | $ | (45.34 | ) | ||||
Discontinued operation | $ | 40.66 | $ | (40.66 | ) | $ | - | |||||
Net Loss per unit of Limited Partnership Interest | $ | (4.68 | ) | $ | (40.66 | ) | $ | (45.34 | ) | |||
Weighted Average Number of Units of Limited Partnership Interest Outstanding | 7,753 | 7,753 | 7,753 | |||||||||
See notes to pro forma consolidated financial statements
SB PARTNERS | |||||||||||
(a New York limited partnership) | |||||||||||
PRO FORMA STATEMENT OF OPERATIONS | |||||||||||
For the Year Ended December 31, 2021 | |||||||||||
(Unaudited) |
As | Pro Forma | Pro Forma | ||||||||||
originally | Adjustments | Income | ||||||||||
reported | (See Note 2) | Statement | ||||||||||
Revenues: | ||||||||||||
Rental income | $ | 1,209,178 | $ | (1,209,178 | ) | $ | - | |||||
Interest on short-term investments and other | 12,385 | - | 12,385 | |||||||||
Total revenues | 1,221,563 | (1,209,178 | ) | 12,385 | ||||||||
Expenses: | ||||||||||||
Real estate operating expenses | 328,407 | (173,245 | ) | 155,162 | ||||||||
Depreciation | 164,491 | (164,491 | ) | - | ||||||||
Real estate taxes | 146,833 | (146,833 | ) | - | ||||||||
Management fees | 996,741 | (67,447 | ) | 929,294 | ||||||||
Other | 145,845 | - | 145,845 | |||||||||
Total expenses | 1,782,317 | (552,016 | ) | 1,230,301 | ||||||||
Loss from operations | (560,754 | ) | (657,162 | ) | (1,217,916 | ) | ||||||
Equity in net income of investment | 19,251,430 | - | 19,251,430 | |||||||||
Decrease in reserve for value of investment | 11,923,033 | - | 11,923,033 | |||||||||
Net income | 30,613,709 | (657,162 | ) | 29,956,547 | ||||||||
Income allocated to general partner | 3,949 | (85 | ) | 3,864 | ||||||||
Income allocated to limited partners | $ | 30,609,760 | $ | (657,077 | ) | $ | 29,952,683 | |||||
Earnings per unit of limited partnership interest (basic and diluted): | ||||||||||||
Net income per unit of Limited Partnership Interest | $ | 3,948.63 | $ | (84.76 | ) | $ | 3,863.87 | |||||
Weighted Average Number of Units of Limited Partnership Interest Outstanding | 7,753 | 7,753 | 7,753 | |||||||||
See notes to pro forma consolidated financial statements
SB PARTNERS
(a New York limited partnership)
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) | Accounting and Financial Reporting |
The consolidated financial statements included herein are unaudited; however, the information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to a fair presentation of the financial position and results of operations for the year presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Registrant's latest annual report on Form 10-K, filed March 31, 2022 and Form 10-Q filed August 15, 2022.
(2) | Pro Forma Adjustments |
The consolidated balance sheet as of the last filing date, June 30, 2022, has been restated to reflect the sale of Eagle IV as if the transaction had occurred on such date. Accordingly, the assets and liabilities of Eagle IV have been removed from the historical balance sheet to reflect the sale of the property. Assets removed included real estate held for sale of $3,856,778 and other assets in discontinued operation totaling $48,424. Liabilities removed include other liabilities in discontinued operation totaling $709. In addition, the balance of cash has been increased by $12,453,687 to reflect the net proceeds from the sale of Eagle IV retained.
The accompanying pro forma consolidated statement of operations for the six months ended June 30, 2022 has been adjusted to reflect the results of operations of the Registrant as if the sale of Eagle IV had been consummated at the beginning of the period.
The income from discontinuing operation of Eagle IV has been removed from the consolidated statement of operations for the six months ended June 30, 2022. In accordance with the rules and regulations regarding the filing of Form 8-K, no gain from the sale of the investment in real estate property is reflected in the pro forma statement of operations.
The accompanying pro forma consolidated statement of operations for the year ended December 31, 2021 has been adjusted to reflect the results of operations of the Registrant as if the sale of Eagle IV had been consummated at the beginning of the period.
The income and expenses of Eagle IV has been removed from the consolidated statement of operations for the year ended December 31, 2021. In accordance with the rules and regulations regarding the filing of Form 8-K, no gain from the sale of the investment in real estate property is reflected in the pro forma statement of operations.
