10-Q 1 dsixi-301.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 March 31, 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 33-26038 DSI REALTY INCOME FUND XI, A California Limited Partnership (Exact name of registrant as specified in its charter) California_______________________________________33-0324161 (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 March 31, 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 March 31, 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 March 31, 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: April 27, 2001 DSI REALTY INCOME FUND XI 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: April 27, 2001 DSI REALTY INCOME FUND XI 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 April 27, 2001 QUARTERLY REPORT TO THE LIMITED PARTNERS OF DSI REALTY INCOME FUND XI DEAR LIMITED PARTNERS: We are pleased to enclose the Partnership's unaudited financial statements for the period ended March 31, 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 March 31, 2001 and 2000, total revenues increased 12.8% from $520,828 to $587,421, total expenses decreased 2.0% from $309,085 to $302,878 and other income decreased from $1,607 to $1,145. As a result, net income increased 33.9% to $285,688 for the three-month period ended March 31, 2001, from $213,350 for the same period in 2000. Rental revenue increased as a result of higher occupancy and unit rental rates. Occupancy levels for the Partnership's four mini-storage facilities averaged 85.6% for the three month period March 31, 2001 as compared to 80.6% for the same period in 2000. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses remained relatively constant as a decrease in yellow pages advertising costs was partially offset by an increase in property management fees. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. General and administrative expenses decreased approximately $3,800 (7.9%) as a result of relatively insignificant fluctuations in various expense accounts. The General Partners plan to continue their policy of funding the continuing improvement 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 XI, P.O. Box 357, Long Beach, California 90801. Very truly yours, DSI REALTY INCOME FUND XI By: DSI Properties, Inc., as General Partner By /s/ Robert J. Conway ____________________________ ROBERT J. CONWAY, President DSI REALTY INCOME FUND XI (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) MARCH 31, 2001 AND DECEMBER 31, 2000
March 31, December 31, 2001 2000 ASSETS CASH AND CASH EQUIVALENTS $ 557,532 $ 362,863 PROPERTY,NET 4,997,420 5,077,118 OTHER ASSETS 45,240 45,240 TOTAL $5,600,192 $5,485,221 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 376,257 $ 344,954 PARTNERS' EQUITY(DEFICIT): General Partners (37,427) (38,264) Limited Partners 5,261,362 5,178,531 Total partners' equity 5,223,935 5,140,267 TOTAL $5,600,192 $5,485,221 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000 March 31, March 31, 2001 2000 REVENUES: Rental Income $ 587,421 $ 520,828 EXPENSES: Operating 258,344 260,731 General and administrative 44,534 48,354 Total expenses 302,878 309,085 OPERATING INCOME 284,543 211,743 OTHER INCOME Interest 1,145 1,607 NET INCOME $ 285,688 $ 213,350 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 282,831 $ 211,217 General partners 2,857 2,133 TOTAL $ 285,688 $ 213,350 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 14.14 $ 10.56 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 20,000 20,000 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2000 ($34,409) $5,560,174 $5,525,765 NET INCOME 2,134 211,217 213,350 DISTRIBUTIONS (2,020) (200,000) (202,020) BALANCE AT MARCH 31, 2000 ($34,296) $5,571,391 $5,537,095 BALANCE AT JANUARY 1, 2001 ($38,264) $5,178,531 $5,140,267 NET INCOME 2,857 282,831 285,688 DISTRIBUTIONS (2,020) (200,000) (202,020) BALANCE AT MARCH 31, 2001 ($37,427) $5,261,362 $5,223,935 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
March 31, March 31, 2001 2000 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 285,688 $ 213,350 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 79,698 79,698 Changes in assets and liabilities: Increase in liabilities 31,303 12,569 Net cash provided by operating activities 396,689 305,617 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (202,020) (202,020) NET INCREASE CASH AND CASH EQUIVALENTS 194,669 103,597 CASH AND CASH EQUIVALENTS: At beginning of period 362,863 399,760 At end of period $ 557,532 $ 503,357 See accompanying notes to financial statements(unaudited).
DSI REALTY INCOME FUND XI (A California Real Estate Limited Partnership) NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. GENERAL DSI Realty Income Fund XI (the "Partnership"), a limited partnership, has three general partners (DSI Properties, Inc., Robert J. Conway and Joseph W. Conway) and limited partners owning 20,000 limited partnership units. The Partnership was formed under the California Uniform Limited Partnership Act for the primary purpose of acquiring and operating real estate. The accompanying financial information as of March 31, 2001, and for the periods ended March 31, 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 holds a 90% interest in a joint venture that owns a mini- storage facility in Whittier, California; an 85% interest in an operating mini-storage in Edgewater Park, New Jersey; a 90% interest in an operating mini-storage facility in Bloomingdale, Illinois; and a 75% interest in an operating mini-storage in Sterling Heights, Michigan. As of March 31, 2001, the total property cost and accumulated depreciation are as follows: Land $ 1,894,250 Buildings 6,493,204 Furniture and equipment 7,594 Total 8,395,048 Less: Accumulated Depreciation ( 3,397,628) Property - Net $ 4,997,420
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.