10-Q 1 dsix-602.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q /_x_/ Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2002 /___/ Transition report pursuant to Section 13 or 15(d) of the Securities Act of 1934 for the transition period from ______________ to ________________. Commission File Number 0-15346 DSI REALTY INCOME FUND X, A California Limited Partnership (Exact name of registrant as specified in its charter) California_______________________________________33-0195079 (State or other jurisdiction of (I.R.S. Employer incorporation) Identification No.) 6700 E. Pacific Coast Hwy., Long Beach, California 90803 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code-(562)493-8881 _________________________________________________________________ Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _x_. No___. PART I - FINANCIAL INFORMATION Item 1. Financial Statements. The information required by Rule 10-01 of Regulation S-X is included in the Quarterly Report to the Limited Partners of Registrant for the period ended June 30, 2002, which is attached hereto as Exhibit "20" and incorporated herein by this reference. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Registrant incorporates by this reference its Quarterly Report to Limited Partners for the period ended June 30, 2002. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8K. (a) Attached hereto as Exhibit "20" is Registrant's Quarterly Report to Limited Partners for the period ended June 30, 2002. (B) Registrant did not file any reports on Form 8-K for the period reported upon. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: July 31, 2002 DSI REALTY INCOME FUND X A California Limited Partnership (Registrant) By__/s/ Robert J. Conway______ DSI Properties, Inc., as General Partner by ROBERT J. CONWAY, President and Chief Financial Officer SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: July 31, 2002 DSI REALTY INCOME FUND X A California Limited Partnership (Registrant) By___/s/ Robert J. Conway_____ DSI Properties, Inc., as General Partner by ROBERT J. CONWAY, President and Chief Financial Officer July 31, 2002 QUARTERLY REPORT TO THE LIMITED PARTNERS OF DSI REALTY INCOME FUND X DEAR LIMITED PARTNERS: We are pleased to enclose the Partnership's unaudited financial statements for the period ended June 30, 2002. The following is Management's discussion and analysis of the Partnership's financial condition and results of its operations. For the three month periods ended June 30, 2002 and 2001, revenues decreased 6.5% from $802,686 to $750,761 and total expenses decreased 7.0% from $465,255 to $432,745 and other income decreased from $14,849 to $1,193. As a result, net income decreased 9.4% from $352,280 to $319,209 for the three- month period ended June 30, 2002, as compared to the same period in 2001. The decrease in revenues can be attributed to a decrease in rental income due to lower occupancy and unit rental rates. Occupancy levels for the Partner- ship's five mini-storage facilities averaged 84.8% for the three-month period ended June 30, 2002, as compared to 87.5% for the same period in 2001. The Partnership is continuing its advertising campaign to attract and keep new tenants in its various mini-storage facilities. Operating expenses de- creased approximately $28,700 (7.1%) primarily as a result of a decrease in advertising, real estate tax and salaries and wages expenses, partially off- set by increases in office supplies and workers compensation insurance expenses. General and administrative expenses decreased approximately $3,800 (6.1%) as lower state tax payments were partially offset by increases in legal and professional and equipment and computer lease expenses. For the six-month periods ended June 30, 2002, and 2001, total revenues decreased 3.7% from $1,640,403 to $1,579,074 and total expenses decreased 0.8% from $911,321 to $904,269 and other income decreased from $31,678 to $3,261. As a result, net income decreased 10.9% from $760,760 for the six- month period ended June 30, 2001, to $678,066 for the same period in 2002. The decrease in revenues can be attributed to a decrease in rental revenue due to lower occupancy and unit rental rates. Operating expenses decreased approximately $10,200 (1.3%) from $783,731 to $773,539. The decrease is primarily due to lower advertising, property management fees, salaries and wages and power and sweeping expenses, partially offset by an increase in office supplies and bank and credit card fee expenses. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. Power and sweeping expenses decreased as the substantial snow removal costs associated with heavy snowfalls in the Detroit, Michigan area during the first quarter of 2001, were not incurred in the current period. General and administrative expenses increased approximately $3,100 (2.5%) for the same reasons as discussed above. The General Partners will continue their policy of funding the continuing improvements and maintenance of Partnership properties with cash generated from operations. The Partnership's financial resources appear to be adequate to meet its needs. We are not enclosing a copy of the Partnership Form 10-Q as filed with the Securities and Exchange Commission, since all the information set forth therein is contained either in this letter or in the attached financial statements. However, if you wish to receive a copy of said report, please send a written request to DSI Realty Income Fund X, P.O. Box 357, Long Beach, California 90801. Very truly yours, DSI Realty Income Fund X By: DSI Properties, Inc., as General Partner By___\s\ Robert J. Conway_______ ROBERT J. CONWAY, President DSI REALTY INCOME FUND X (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED), JUNE 30, 2002 AND DECEMBER 31, 2001 June 30, December 31, 2002 2001 ASSETS CASH AND CASH EQUIVALENTS $1,284,631 $1,446,960 PROPERTY, NET 5,335,790 5,605,054 OTHER ASSETS 139,532 142,031 TOTAL $6,759,953 $7,194,045 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $1,123,499 $1,585,229 PARTNERS' EQUITY (DEFICIT): General Partners (85,663) (85,940) Limited Partners 5,722,117 5,694,756 Total partners' equity 5,636,454 5,608,816 TOTAL $6,759,953 $7,194,045 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001 June 30, June 30, 2002 2001 REVENUES: Rental $750,761 $802,686 EXPENSES: Operating 373,409 402,091 General and administrative 59,336 63,164 Total expenses 432,745 465,255 OPERATING INCOME 318,016 337,431 OTHER INCOME Interest 1,193 14,849 NET INCOME $319,209 $352,280 AGGREGATE NET INCOME ALLOCATED TO : Limited partners $316,017 $348,757 General partners 3,192 3,523 TOTAL $319,209 $352,280 NET INCOME PER LIMITED PARTNERSHIP UNIT $9.94 $10.97 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 31,783 31,783 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001 June 30, June 30, 2002 2001 REVENUES: Rental $1,579,074 $1,640,403 EXPENSES: Operating 773,539 783,731 General and administrative 130,730 127,590 Total expenses 904,269 911,321 OPERATING INCOME $ 674,805 $ 729,082 OTHER INCOME Interest 3,261 31,678 NET INCOME $ 678,066 $ 760,760 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners 671,285 753,152 General Partners 6,781 7,608 TOTAL $ 678,066 $ 760,760 NET INCOME PER LIMITED PARTNERSHIP UNIT $21.12 $23.70 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 31,783 31,783 See accompanying notes to financial statements (unaudited). STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001 GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2002 ($85,940) $5,694,756 $5,608,816 NET INCOME 6,781 671,285 678,066 DISTRIBUTIONS (6,504) (643,924) (650,428) BALANCE AT JUNE 30, 2002 ($85,663) $5,722,117 $5,636,454 See accompanying notes to financial statements(unaudited). STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001 June 30, June 30, 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 678,066 $ 760,760 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 269,264 269,264 Changes in assets and liabilities: Decrease (increase)in other assets 2,499 (7,500) (Decrease)increase in liabilities (461,730) 161,127 Net cash(used in)provided by operating activities 488,099 1,183,651 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (650,428) (650,428) NET INCREASE IN CASH AND CASH EQUIVALENTS (162,329) 533,223 CASH AND CASH EQUIVALENTS: At beginning of period 1,446,960 2,605,662 At end of period $1,284,631 $3,138,885 See accompanying notes to financial statements(unaudited). DSI REALTY INCOME FUND X (A California Real Estate Limited Partnership) NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. GENERAL DSI Realty Income Fund X (the "Partnership") has three general partners (DSI Properties, Inc., Robert J. Conway and Joseph W. Conway) and limited partners owning 31,783 limited partnership units. The accompanying financial information as of June 30, 2002, and for the periods ended June 30, 2002 and 2001 is unaudited. Such financial information includes all adjustments which are considered necessary by the Partnership's management for a fair presentation of the results for the periods indicated. 2. PROPERTY The Partnership owns five mini-storage facilities. Two facilities are located in Warren, Michigan; one facility is located in Troy, Michigan; one facility is located in Crestwood, Illinois; and one facility is located in Forestville, Maryland. As of June 30, 2002, the total cost and accumulated depreciation of the mini-storage facilities is as follows: Land $ 2,089,882 Buildings 10,834,474 Furniture and Equipment 5,810 Total 12,930,166 Less: Accumulated Depreciation ( 7,594,376) Property - Net $ 5,355,790 3. NET INCOME PER LIMITED PARTNERSHIP UNIT Net income per limited partnership unit is calculated by dividing the net income allocated to the limited partners by the number of limited partnership units outstanding during the period. DSI REALTY INCOME FUND X Form 10-Q CERTIFICATION Each of the undersigned hereby certifies in his capacity as an officer of DSI Properties Inc. (corporate General Partner) of DSI REALTY INCOME FUND X (the "Partnership") that the Quarterly Report of the Partnership on Form 10-Q for the periods ended June 30, 2002 fully complies with the requirements of Section 13(a) of the Securities and Exchange Act of 1934 and that information contained in such report fairly presents, in all material respects, the financial condition of the Partnership at the end of such periods and the results of operations of the Partnership for such periods. ROBERT J. CONWAY, CEO RICHARD P. CONWAY, VP