10-Q 1 dsix601.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, 2001 /___/ 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, 2001 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, 2001. 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, 2001. (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, 2001 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, 2001 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, 2001 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, 2001. 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, 2001, and 2000, total revenues increased 8.4% from $740,437 to $802,686 and total expenses increased 8.1% from $430,244 to $465,255 and other income decreased from $19,404 to $14,849. As a result, net income increased 6.9% from $329,597 to $352,280 for the three-month period ended June 30, 2001, as compared to the same period in 2000. The increase in revenues can be attributed to an increase in rental income due to higher occupancy and unit rental rates. Occupancy levels for the Partnership's five mini-storage facilities averaged 87.5% for the three- month period ended June 30, 2001, as compared to 85.4% for the same period in 2000. The Partnership is continuing its advertising campaign to attract and keep new tenants in its various mini-storage facilities. Operating expenses increased approximately $32,700 (8.9%) primarily as a result of increases in advertising, property management fees and salaries and wage expenses, partially offset by a decrease in workers compensation insurance expense. Property management fees, which are based on rental revenue in- creased as a result of the increase in rental revenue. General and admini- strative expenses remained relatively constant. For the six month periods ended June 30, 2001, and 2000, total revenues increased 11.4% from $1,472,989 to $1,640,403 and total expenses increased 5.8% from $861,194 to $911,321 and other income decreased from $35,463 to $31,678. As a result, net income increased 17.5% from $647,258 for the six- month period ended June 30, 2000, to $760,760 for the same period in 2001. The increase in revenues can be attributied to an increase in rental revenue due to higher occupancy and unit rental rates. Operating expenses increased approximately $53,300 (7.3%) from $730,435 to $783,731. The increase is primarily due to higher advertising, property management fees, salaries and wage and power and sweeping expenses, partially offset by a decrease in office supplies, workers compensation insurance and security alarm services expenses. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. Power and sweeping expenses increased as a result of above normal snow removal costs associated with heavy snow falls in the Detroit, Michigan area during the first quarter of 2001. General and administrative expenses decreased approximately $3,200 (2.4%) primarily as a result of decrease in equipment and computer lease expenses. The General Partners will continue their policy of funding 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, 2001 AND DECEMBER 31, 2000
June 30, December 31, 2001 2000 ASSETS CASH AND CASH EQUIVALENTS $3,138,885 $2,605,662 PROPERTY, Net 5,874,318 6,143,582 OTHER ASSETS 105,170 97,670 TOTAL $9,118,373 $8,846,914 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $3,216,204 $3,055,077 PARTNERS' EQUITY (DEFICIT): General Partners (83,006) (84,110) Limited Partners 5,985,175 5,875,947 Total partners' equity 5,902,169 5,791,837 TOTAL $9,118,373 $8,846,914 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000 June 30, June 30, 2001 2000 REVENUES: Rental $802,686 $740,437 EXPENSES: Operating Expenses 402,091 369,409 General and administrative 63,164 60,835 Total expenses 465,255 430,244 OPERATING INCOME 337,431 310,193 OTHER INCOME Interest 14,849 19,404 NET INCOME $352,280 $329,597 AGGREGATE NET INCOME ALLOCATED TO : Limited Partners $348,757 $326,301 General Partners 3,523 3,296 TOTAL $352,280 $329,597 NET INCOME PER LIMITED PARTNERSHIP UNIT $10.97 $10.27 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, 2001 AND 2000 June 30, June 30, 2001 2000 REVENUES: Rental $1,640,403 $1,472,989 EXPENSES: Operating 783,731 730,435 General and administrative 127,590 130,759 Total expenses 911,321 861,194 OPERATING INCOME 729,082 611,795 OTHER INCOME Interest 31,678 35,463 NET INCOME 760,760 647,258 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $753,152 $640,785 General Partners 7,608 6,473 TOTAL $760,760 $647,258 NET INCOME PER LIMITED PARTNERSHIP UNIT $23.70 $20.16 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 (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2000 ($81,123) $6,171,569 $6,090,446 NET INCOME 6,473 640,785 647,258 DISTRIBUTIONS (6,504) (643,924) (650,428) BALANCE AT JUNE 30, 2000 ($81,154) $6,168,430 $6,087,276 BALANCE AT JANUARY 1, 2001 ($84,110) $5,875,947 $5,791,837 NET INCOME 7,608 753,152 760,760 DISTRIBUTIONS (6,504) (643,924) (650,428) BALANCE AT JUNE 30, 2001 ($83,006) $5,985,175 $5,902,169 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
June 30, June 30, 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 760,760 $ 647,258 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 269,264 269,264 Changes in assets and liabilities: Increase in other assets (7,500) 0 Increase in liabilities 161,127 162,258 Net cash provided by operating activities 1,183,651 1,078,780 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (650,428) (650,428) NET INCREASE IN CASH AND CASH EQUIVALENTS 533,223 428,352 CASH AND CASH EQUIVALENTS: At beginning of period 2,605,662 2,027,853 At end of period $3,138,885 $2,456,205 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, 2001, and for the periods ended June 30, 2001 and 2000 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, 2001, 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 ( 7,055,848) Property - Net $ 5,874,318
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.