TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES

5. TRANSACTIONS WITH GENERAL PARTNER AND ITS AFFILIATES:

Pursuant to the terms of the Permanent Manager Agreement (“PMA”) executed in 1993 and renewed for an additional two-year term as of January 1, 2023, the General Partner receives a base fee (the “Base Fee”) for managing the Partnership equal to four percent of gross receipts, subject initially to a minimum annual Base Fee. The PMA also provides that the Partnership is responsible for reimbursement of the General Partner for office rent and related office overhead (“Expenses”) up to an initial annual maximum of $13,250. Both the Base Fee and Expenses reimbursement are subject to annual Consumer Price Index based adjustments. Effective March 1, 2021, Management has elected to roll back the last five years of CPI increases to their 2016 level and suspend any future CPI adjustments for the base fee. Therefore, the minimum annual Base Fee for 2023 remains $272,316. The maximum annual Expenses reimbursement remained the same at $23,256 and any potential future CPI adjustments have been suspended.

For purposes of computing the four percent overall fee paid to the General Partner, gross receipts include amounts recovered in connection with the misappropriation of assets by the former general partners and their affiliates. The fee received by the General Partner from the Partnership on any amounts recovered reduce the four percent minimum fee by that same amount.

Amounts paid and/or accrued to the General Partner and its affiliates for the three and six month periods ended June 30, 2023 and 2022 are as follows:

	Incurred for the		Incurred for the		Incurred for the		Incurred for the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
General Partner
Management fees	$	68,079	$	68,079	$	136,158	$	136,158
Overhead allowance		5,814		5,814		11,628		11,628
Leasing commissions		31,013		-		31,013		-
Reimbursement for out-of-pocket expenses		-		-		2,500		2,500
Cash distribution		737		5,673		5,848		6,622
Amounts paid and/or accrued to the General Partner	$	105,643	$	79,566	$	187,147	$	156,908

At June 30, 2023 and December 31, 2022, $725 and $2,090, respectively, was payable to the General Partner.

DIVALL INSURED INCOME PROPERTIES 2 LIMITED PARTNERSHIP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

As of June 30, 2023, Jesse Small, an Advisory Board Member, beneficially owned greater than ten percent of the Partnership’s outstanding limited partnership interests. Amounts paid to Mr. Small for his services as a member of the Advisory Board for the three and six month periods ended June 30, 2023 and 2022 are as follows:

	Three Month Period ended June 30, 2023		Three Month Period ended June 30, 2022		Six Month Period ended June 30, 2023		Six Month Period ended June 30, 2022
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Advisory Board Fees paid	$	875	$	875	$	1,750	$	1,750

At June 30, 2023 and December 31, 2022 there were no outstanding Advisory Board fees accrued and payable to Jesse Small.