-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MoXXGrQvupqpuQLU4QBDn7SAjjJlWL521ozkReGu6Ig3eHSkVp+m5QkGMoAYfm77 ZxF3kcReRoBr4LBA8EUA/g== 0000719581-99-000017.txt : 19990817 0000719581-99-000017.hdr.sgml : 19990817 ACCESSION NUMBER: 0000719581-99-000017 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DSI REALTY INCOME FUND XI CENTRAL INDEX KEY: 0000844048 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330324161 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18286 FILM NUMBER: 99693264 BUSINESS ADDRESS: STREET 1: 3701 LONG BEACH BLVD CITY: LONG BEACH STATE: CA ZIP: 90807 BUSINESS PHONE: 2135957711 MAIL ADDRESS: STREET 1: 6700 E. PACIFIC COAST HWY. STREET 2: P.O. BOX 357 CITY: LONG BEACH STATE: CA ZIP: 90801 10-Q 1 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, 1999 /___/ 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 June 30, 1999 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, 1999. 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, 1999. (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, 1999 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: July 31, 1999 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 EX-20 2 July 31, 1999 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 June 30, 1999. 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, 1999, and 1998, total revenues increased 7.0% from $492,423 to $527,092 and total expenses increased 8.0% from $294,445 to $317,492. As a result, net income increased 5.9% from $197,978 for the three-month period ended June 30, 1998, to $209,600 for the same period in 1999. Rental revenue increased as a result of higher unit rental rates. Occupancy levels for the Partnership's four mini-storage facilities averaged 85.76% for the three month period ended June 30, 1999 as compared to 86.5% for the same period in 1998. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini- storage facilities. Operating expenses increased approximately $24,700 (9.4%) primarily as a result of higher maintenance and repair, salaries and wage expenses and property management fees. Property management fees, which are computed as a percentage of rental revenue, increased as a result of the increase in rental revenue as well as an increase in the percentage charged from 5% to 6% effective January 1, 1999. General and administrative expenses decreased approximately $1,600 (5.0%) primarily as a result of the decrease in legal and professional expenses. For the six month periods ended June 30, 1999, and 1998, total revenues increased 8.7% from $968,367 to $1,053,006 and total expenses increased 7.6% from $565,911 to $609,072. As a result, net income increased 10.3% from $402,456 for the six-month period ended June 30, 1998, to $443,934 for the same period in 1999. Rental revenue increased for the same reasons as discussed above. Operating expenses increased approximately $45,400 (9.3%) primarily as a result of higher maintenance and repair, real estate tax, salaries and wages, power and sweeping expenses and property management fees. The increase in property management fees was discussed above. Power and sweeping expenses increased as a result of the substantial snow removal costs associated with the blizzard that hit Illinois and Michigan where two of the Partnership's properties are located. General and administrative expenses decreased approximately $2,300 (2.8%) for the same reason as discussed above. The General Partners determined that effective with the first quarter 1998 distribution which was paid on April 15, 1998, distributions to the limited partners would be increased to an amount which yields an 8% annual return on the capital contributed by the limited partners from an annual return of 7% paid previously. The General Partners plan to 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. The Year 2000 issue refers to the inability of certain computer systems to recognize a date using "00" as the Year 2000. The Partnership has implemented a Year 2000 program, which has three phases: (1) identification; (2) remediation; and (3) testing and verification. The Partnership, as well as the property management company and the Partnership's warehouse facilities have completed those phases. Computer programs have been upgraded and tested to function properly with respect to the dates in the Year 2000 and thereafter. Year 2000 compliance costs are nominal and have been expensed in the regular course of business. The Partnership provides no assurance that third-party suppliers and customers will be compliant. Nevertheless, the Partnership does not believe that the Year 2000 issue will have a material adverse effect on its financial condition or results of operations. 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 EX-20 3 DSI REALTY INCOME FUND XI (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) JUNE 30, 1999 AND DECEMBER 31, 1998
June 30, December 31, 1999 1998 ASSETS CASH AND CASH EQUIVALENTS $ 614,761 $ 393,912 PROPERTY, Net 5,561,452 5,720,848 OTHER ASSETS 39,290 37,854 TOTAL $6,215,503 $6,152,614 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 324,054 $ 301,059 PARTNERS' EQUITY (DEFICIT): General Partners (30,752) (31,151) Limited Partners 5,922,201 5,882,706 Total partners' equity 5,891,449 5,851,555 TOTAL $6,215,503 $6,152,614 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998 June 30, June 30, 1999 1998 REVENUES: Rental income $ 525,569 $ 487,576 Interest 1,523 4,847 Total revenues 527,092 492,423 EXPENSES: Operating 286,520 261,831 General and Administrative 30,972 32,614 Total expenses 317,492 294,445 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 209,600 197,978 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 0 0 NET INCOME 209,600 197,978 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 207,504 $ 195,998 General Partners 2,096 1,980 TOTAL $ 209,600 $ 197,978 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 10.38 $ 9.80 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 20,000 20,000 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998 June 30, June 30, 1999 1998 REVENUES: Rental income $1,049,916 $ 960,038 Interest 3,090 8,329 Total revenues 1,053,006 968,367 EXPENSES: Operating 531,391 485,956 General and administrative 77,681 79,955 Total expenses 609,072 565,911 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES $ 443,934 $ 402,456 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 0 0 NET INCOME $ 443,934 $ 402,456 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 439,495 $ 398,431 General Partners 4,439 4,025 TOTAL $ 443,934 $ 402,456 NET INCOME PER LIMITED PARTNERSHIP UNIT $21.97 $19.92 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 (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 1998 ($27,068) $6,286,983 $6,259,915 NET INCOME 4,025 398,431 402,456 DISTRIBUTIONS (4,040) (400,000) (404,040) BALANCE AT JUNE 30, 1998 ($27,083) $6,285,414 $6,258,331 BALANCE AT JANUARY 1, 1999 ($31,151) $5,882,706 $5,851,555 NET INCOME 4,439 439,495 443,934 DISTRIBUTIONS (4,040) (400,000) (404,040) BALANCE AT JUNE 30, 1999 ($30,752) $5,922,201 $5,891,449 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30, 1999 1998 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 443,934 $ 402,456 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 159,396 159,396 Changes in assets and liabilities: Increase in other assets (1,436) (10,293) Increase in liabilities 22,995 35,549 Net cash provided by operating activities 624,889 587,108 CASH FLOWS FROM INVESTING ACTIVITIES - Purchase of property and equipment 0 (16,887) CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (404,040) (404,040) NET INCREASE CASH AND CASH EQUIVALENTS 220,849 166,181 CASH AND CASH EQUIVALENTS: At beginning of period 393,912 500,351 At end of period $ 614,761 $ 666,532 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 June 30, 1999, and for the periods ended June 30, 1999, and 1998 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 As of June 30, 1999, the Partnership has purchased a 90% interest in a mini-storage facility in Whittier, California; an 85% interest in an existing mini-storage in Edgewater Park, New Jersey; a 90% interest in an existing mini-storage facility in Bloomingdale, Illinois; and a 75% interest in an existing mini-storage in Sterling Heights, Michigan from Dahn Corporation. The remaining percentages are owned by four California Limited Parnterships, of which Dahn Corporation is the General Partner. As of June 30, 1999, the total property cost and accumulated depreciation are as follows: Land $ 1,894,250 Buildings 6,474,340 Furniture and equipment 7,594 Total 8,376,184 Less: Accumulated Depreciation ( 2,814,732) Property - Net $ 5,561,452
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. EX-27 4
5 3-MOS YEAR DEC-31-1999 DEC-31-1999 JUN-30-1999 DEC-31-1999 614761 0 0 0 0 0 0 0 0 0 0 0 8376184 0 2814732 0 6215503 0 0 0 0 0 0 0 0 0 0 0 0 0 6215503 0 1049916 0 1053006 0 0 0 0 0 0 0 0 0 0 0 443934 0 0 0 443934 0 0 0 0 0 0 0 443934 0 0 0 0 0
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