-----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, BYv2RT9Vqcf65FJd5PDkVKB1ZFjVlOLv/bhH0uDMZ2DuKNAO7hkhJWD68SrieKab 9EJRUINzSUCxsCzkqF9Xlw== 0000764586-98-000007.txt : 19981118 0000764586-98-000007.hdr.sgml : 19981118 ACCESSION NUMBER: 0000764586-98-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 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: 98749495 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 September 30, 1998 /___/ 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 September 30, 1998, 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 September 30, 1998. 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 September 30, 1998. (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: October 31, 1998 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: October 31, 1998 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 October 31, 1998 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 September 30, 1998. 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 September 30, 1998 and 1997, total revenues increased 5.4% from $487,619 to $513,710 and total expenses decreased 1.3% from $268,533 to $265,090. Minority interest in income of real estate joint ventures increased 21.2% from $109,000 to $132,154. As a result, net income increased 5.8% from $110,086 for the three-month period ended September 30, 1997, to $116,466 for the same period in 1998. Rental revenue increased as a result of higher occupancy and unit rental rates. Occupancy levels for the Partnership's four mini-storage facilities averaged 90.6% for the three month period ended September 30, 1998 as compared to 85.7% for the same period in 1997. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses decreased approximately $4,800 (2.0%) primarily as a result of lower maintenance and repair expenses, partially offset by an increase in yellow pages advertising costs. General and administrative expenses increased approximately $1,300 (5.4%) primarily as a result of an increase in incentive management fees. As this fee is computed as a percentage of distributions made to the Limited Partners, the increase in distributions as discussed below, resulted in an increase in the incentive management fee. For the nine-month periods ended September 30, 1998, and 1997, total revenues increased 4.5% from $1,418,696 to $1,482,077 and total expenses increased 1.5% from $818,385 to $831,001. Minority interest in income of real estate joint ventures increased 21.2% from $109,000 to $132,154. As a result, net income increased 5.6% from $491,311 for the nine-month period ended September 30, 1997, to $518,922 for the same period in 1998. Rental revenue increased for the same reasons as discussed above. Operating expenses increased approximately $6,200 (0.9%) primarily as a result of higher yellow pages advertising costs and real estate tax expenses, partially offset by lower salaries and wages. General and administrative expenses increased approximately $6,400 (6.5%) for the same reason as discussed above. The General Partners determined that effective with the second 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) SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
September 30, December 31, 1998 1997 ASSETS CASH AND CASH EQUIVALENTS $ 663,595 $ 500,351 PROPERTY 5,764,097 5,986,304 OTHER ASSETS 46,473 30,926 TOTAL $6,474,165 $6,517,581 LIABILITIES AND PARTNERS' EQUITY LIABILITIES $ 301,388 $ 257,666 PARTNERS' EQUITY: General Partners (27,939) (27,068) Limited Partners 6,200,716 6,286,983 Total partners' equity 6,172,777 6,259,915 TOTAL $6,474,165 $6,517,581 See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 REVENUES: Rental Income $ 508,021 $ 482,853 Interest 5,689 4,766 Total revenues 513,710 487,619 EXPENSES: Operating Expenses 239,303 244,065 General and administrative 25,787 24,468 Total expenses 265,090 268,533 INCOME BEFORE MINORITY INTEREST IN INCOME OR REAL ESTATE JOINT VENTURES 248,620 219,086 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES (132,154) (109,000) NET INCOME $ 116,466 $ 110,086 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 115,301 $ 108,985 General partners 1,165 1,101 TOTAL $ 116,466 $ 110,086 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 5.77 $ 5.45 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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 REVENUES: Rental Income $1,468,059 $1,407,867 Interest 14,018 10,829 Total revenues 1,482,077 1,418,696 EXPENSES: Operating expenses 725,259 719,060 General and administrative 105,742 99,325 Total expenses 831,001 818,385 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 651,076 600,311 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES (132,154) (109,000) NET INCOME 518,922 491,311 AGGREGATE NET INCOME ALLOCATED TO: Limited partners 513,733 486,398 General partners 5,189 4,913 TOTAL 518,922 491,311 NET INCOME PER LIMITED PARTNERSHIP UNIT $25.69 $24.32 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 20,000 20,000 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
GENERAL LIMITED PARTNERS PARTNERS TOTAL EQUITY AT JANUARY 1, 1997 ($ 25,145) $6,477,469 $6,452,324 NET INCOME 4,913 486,398 491,311 DISTRIBUTIONS (5,304) (525,000) (530,304) EQUITY AT SEPTEMBER 30, 1997 ($25,536) $6,438,867 $6,413,331 EQUITY AT JANUARY 1, 1998 ($27,068) $6,286,983 $6,259,915 NET INCOME 5,189 513,733 518,922 DISTRIBUTIONS (6,060) (600,000) (606,060) EQUITY AT SEPTEMBER 30, 1998 ($27,939) $6,200,716 $6,172,777 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 518,922 $ 491,311 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 239,094 239,094 Changes in assets and liabilities: Increase in other assets (15,547) (39,538) Increase in liabilities 43,722 23,657 Net cash provided by operating activities 786,191 714,524 CASH FLOWS FROM INVESTING ACTIVITIES - Purchase of property and equipment (16,887) CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (606,060) (530,304) NET INCREASE CASH AND CASH EQUIVALENTS 163,244 184,220 CASH AND CASH EQUIVALENTS: At beginning of period 500,351 384,938 At end of period $ 663,595 $ 569,158 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 September 30, 1998, and for the periods ended September 30, 1998, and 1997 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 September 30, 1998, 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 Partnerships, of which Dahn Corporation is the General Partner. As of September 30, 1998, the total property cost and accumulated depreciation are as follows: Land $ 1,894,250 Buildings 6,437,441 Furniture and equipment 7,594 Total 8,339,285 Less: Accumulated Depreciation ( 2,575,188) Property - Net $ 5,764,097
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-31-1998 DEC-31-1998 SEP-30-1998 DEC-31-1998 663595 0 0 0 0 0 0 0 0 0 0 0 8339285 0 2575188 0 6474165 0 0 0 0 0 0 0 0 0 0 0 0 0 6474165 0 1468059 0 1482077 0 0 0 0 0 0 0 0 0 0 0 518922 0 0 0 518922 0 0 0 0 0 0 0 518922 0 0 0 0 0
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