SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 2O549
FORM 1O-K
(Mark One)
/ x /Annual Report Pursuant to Section 13 or 15 (d) of the Securities and
Exchange Act of 1934 [Fee Required] for the fiscal year ended December 31, 1995.
or / /Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required] for the transition period from
______________ to ________________.
Commission File No. 33-5327.
DSI REALTY INCOME FUND X, a California Limited Partnership
(Exact name of registrant as specified in governing instruments)
_________California___________________________33-0195079_____
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization identification
number
37O1 Long Beach Boulevard, Long Beach, California 9O8O7
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code-(213)595-7711
Securities registered pursuant to Section 12(b) of the Act: none.
Securities registered pursuant to Section 12(g) of the Act:
Units of Limited Partnership Interests
(Class of Securities Registered)
Indicate by check mark, whether the registrant (l) 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 9O days. Yes_X____. No______.
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. /x/
The Registrant is a limited partnership and there is no voting stock. All
units of limited partnership sold to date are owned by non-affiliates of the
registrant. All such units were sold at $5OO.OO per unit.
<PAGE>
DOCUMENTS INCORPORATED BY REFERENCE
Item 8. Registrant's Financial Statements for its fiscal year ended December 31,
1995, incorporated by reference to From 10-K, Part II.
Item 11. Registrant's Financial Statements for its fiscal year ended December
31, 1995, incorporated by reference to Form 10-K, Part III.
Item 12. Registration Statement on Form S-11, previously filed with the
Securities and Exchange Commission pursuant to Securities Act of 1933, as
amended, incorporated by reference to Form 10-K Part III.
Item 13. Registrant's Financial Statements for its fiscal year ended December
31, 1995, incorporated by reference to Form 10-K, Part III.
PART I
Item l. BUSINESS
Registrant, DSI Realty Income Fund X (the "Partnership") is a publicly-held
limited partnership organized under the California Uniform Limited Partnership
Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter
referred to as "Agreement") dated April 15, 1986. The General Partners are DSI
Properties, Inc., a California corporation, Robert J. Conway and Joseph W.
Conway, brothers. The General Partners are affiliates of Diversified Securities,
Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners
provide similar services to other partnerships. Through its public offering of
Limited Partnership Units, Registrant sold thirty-one thousand seven hundred
eighty-three (31,783) units of limited partnership interests aggregating Fifteen
Million Eight Hundred Ninety-One Thousand Five Hundred Dollars ($15,891,500).
The General Partners have retained a one percent (l%) interest in all profits,
losses and distributions (subject to certain conditions) without making any
capital contribution to the Partnership. The General Partners are not required
to make any capital contributions to the Partnership in the future. Registrant
is engaged in the business of investing in and operating mini-storage facilities
with the primary objectives of generating, for its partners, cash flow, capital
appreciation of its properties, and obtaining federal income tax deductions so
that during the early years of operations, all or a portion of such
distributable cash may not represent taxable income to its partners. Funds
obtained by Registrant during the public offering period of its units were used
to acquire five mini-storage facilities. Registrant does not intend to sell
additional limited partnership units. The term of the Partnership is fifty years
but it is anticipated that Registrant will sell and/or refinance its properties
prior to the termination of the Partnership. The Partnership is intended to be
self-liquidating and it is not intended that proceeds from the sale or
refinancing of its operating properties will be reinvested. Registrant has no
full time employees but shares one or more employees with other publicly-held
limited partnerships sponsored by the General Partners. The General Partners are
vested with authority as to the general management and supervision of the
business and affairs of Registrant. Limited Partners have no right to
participate in the management or conduct of such business and affairs. An
independent management company has been retained to provide day-to-day
management services with respect to all of the Partnership's investment
properties.
The average occupancy levels for each of the Partnership's five properties
for the years ended December 31, 1995 and December 31, 1994 were as follows:
Location of Property Average Occupancy Average Occupancy
Level for the Level for the
Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994
Ryan Road
Warren, MI 87% 92%
Crestwood, IL 83% 85%
Groesbeck Hwy
Warren, MI 93% 92%
Forrestville, MD 87% 87%
Troy, MI 87% 88%
The business in which the Partnership is engaged is highly competitive.
Each of its mini-storage facilities is located in or near a major urban area,
and accordingly, competes with a significant number of individuals and
organizations with respect to both the purchase and sale of its properties and
for rentals. Generally, Registrant's business is not affected by the change in
seasons.
<PAGE>
Item 2. PROPERTIES
Registrant owns a fee interest in five mini-storage facilities, none of
which are subject to long-term indebtedness. The following table sets forth
information as of December 31, 1995 regarding properties owned by the
Partnership.
Location Size of Net Rentable No. of Completion
Parcel Area Rental Units Date
Ryan Road,
Warren, MI 4.286 acres 53,779 494 9/30/87
Crestwood, IL 2.96 acres 51,055 463 11/25/87
Groesbeck Hwy,
Warren, MI 4.76 acres 59,281 493 l/23/88
Forrestville,
MD 4.18 acres 56,461 527 8/6/88
Troy, MI 4.98 acres 79,201 498 6/17/88
Item 3. LEGAL PROCEEDINGS
Registrant is not a party to any material pending legal proceedings.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
PART II
Item 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND
RELATED STOCKHOLDER MATTERS
Registrant, a publicly-held limited partnership, sold 31,783 limited
partnership units during its offering and currently has 1,079 limited partners
of record. There is no intention to sell additional limited partnership units
nor is there a market for these units.
Average cash distributions of $7.54 per Limited Partnership Unit were
declared and paid each quarter for the year ended December 31, 1995 and $6.73
per Limited Partnership Unit for each quarter for the year ended December 31,
1994. Due to adverse conditions in the local economies where certain of the
properties are located, it is Registrant's expectations that distributions will
continue to be paid in the future, however, at a reduced annualized return of
the Limited Partners' capital contributions.
Item 6. SELECTED FINANCIAL DATA
FOR THE PERIOD ENDED DECEMBER 31, 1995, 1994, 1993, 1992, and 1991.
-------------------------------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
TOTAL
REVENUES $2,529,555 $ 2,292,130 $ 1,926,999 $ 1,756,575 $ 1,644,327
TOTAL
EXPENSES 1,561,433 1,428,672 1,465,990 1,484,287 1,402,251
---------- ----------- ----------- ----------- -----------
NET
INCOME
(LOSS) $ 968,122 $ 863,458 $ 461,009 $ 272,288 $ 242,076
========== =========== =========== =========== ===========
TOTAL
ASSETS $9,890,145 $10,039,357 $10,059,109 $10,430,241 $11,092,798
========== =========== =========== =========== ===========
NET CASH
PROVIDED BY
OPERATING
ACTIVITIES $1,919,722 $ 1,319,398 $ 1,148,734 $ 987,669 $ 1,079,303
========== =========== =========== =========== ===========
NET INCOME
(LOSS)
PER LIMITED
PARTNERSHIP
UNIT $ 30.16 $ 26.90 $ 14.36 $ 8.48 $ 7.54
========== =========== =========== =========== ===========
CASH
DISTRIBUTIONS
PER $500
LIMITED
PARTNERSHIP
UNIT $ 40.00 $ 36.25 $ 31.25 $ 35.00 $ 35.00
========== =========== =========== =========== ===========
<PAGE>
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
1995 COMPARED TO 1994
Total revenues increased from $2,292,130 in 1994 to $2,529,555 in 1995,
while total expenses increased from $1,428,672 to $1,561,433 resulting in an
increase in net income from $863,458 to $968,122. The approximate $217,000
(9.5%) increase in rental revenues can be attributed higher unit rental rates.
Occupancy levels for the Partnership's five mini-storage facilities averaged
87.4% for the year ended December 31, 1995, compared to 88.8% for the year ended
December 31, 1994. The Partnership continued to increase rental rates where
market conditions made such increases feasible. The Partnership is continuing
its marketing efforts to attract and keep new tenants in its various
mini-storage facilities. Operating expenses increased by approximately $95,000
(15.9%) primarily due to increases in repairs and maintenance, real estate taxes
and salaries and wages. General and administrative expenses increased by
approximately $24,000 (12.2%) primarily due to increases in property management
fees and other taxes partially offset by lower professional fees. As property
management fees are computed as a percentage of rental income, increases in
rental income resulted in commensurate increases in property management fees.
Other taxes, which consist of Maryland Non-Resident Withholding Taxes, were paid
by the Partnership. The General Partners' incentive management fee increased by
approximately $11,000 (10.5%). As this fee is computed as a percentage of
distributions made to the Limited Partners, the 1995 increases in distributions
resulted in an increased general partners' incentive management fee.
1994 COMPARED TO 1993
Total revenues increased from $1,926,999 in 1993 to $2,292,130 in 1994,
while total expenses decreased from $1,465,990 to $1,428,672 resulting in an
increase in net income from $461,009 to $863,458. The approximate $354,000
(18.4%) increase in rental revenues can be attributed to a combination of higher
occupancy and unit rental rates. Occupancy levels for the Partnership's five
mini-storage facilities averaged 88.8% for the year ended December 31, 1994,
compared to 87.4% for the year ended December 31, 1993. The Partnership
continued to increase rental rates where market conditions made such increases
feasible. The Partnership is continuing its marketing efforts to attract and
keep new tenants in its various mini-storage facilities. Operating expenses
decreased by approximately $85,000 (12.5%) primarily due to decreases in yellow
page advertising costs, real estate taxes and repairs and maintenance expenses,
which were partially offset by an increase in salaries and wages. General and
administrative expenses increased by approximately $26,000 (15.3%) primarily due
to increased professional fees and property management fees. As property
management fees are computed as a percentage of rental income, increases in
rental income resulted in commensurate increases in property management fees.
The General Partners' incentive management fee increased by approximately
$18,000 (20.8%). As this fee is computed as a percentage of distributions made
to the Limited Partners, the 1994 increase in distributions resulted in an
increased general partners' incentive management fee.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased by approximately
$600,000 (45.5%) in 1995 compared to 1994 primarily as a result of the increase
in net income, repayment of incentive management fees (See Note 4 to Financial
Statements) and the deferral of payment of property management and incentive
management fees. Net cash provided by operating activities increased by
approximately $171,000 (14.9%) in 1994 compared to 1993 primarily as a result of
the increase in net income which was offset to some extent by a payment of
subordinated incentive management fees to the General Partners (See Note 4 to
Financial Statements).
Cash used in financing activities, as set forth in the statements of cash
flows, consists solely of cash distributions to partners. The General Partners
determined that effective with the second quarter 1994 distribution which was
paid on July 15, 1994, distributions to the limited partners would be increased
to an amount which yields a 7% annual return on the capital contributed by the
limited partners from an annual return of 6% paid in the prior year. Further,
the General Partners determined that effective with the third quarter 1994
distribution which was paid on October 15, 1994, distributions to limited
partners would be increased to an amount which yields an 8% annual return on the
capital contributed by the limited partners.
Cash used in investing activities, as set forth in the statement of cash
flows, consists of acquisitions of equipment for the Partnership's mini-storage
facilities in 1994 and 1995. The Partnership has no material commitments for
capital expenditures.
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 for the next twelve months.
The General Partners are not aware of any environmental problems which
might have a material adverse impact on the financial position of the
Partnership.
<PAGE>
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Attached hereto as Exhibit l is the information required to be set
forth as Item 8, Part II hereof.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT'S
GENERAL PARTNER
The General Partners of Registrant are the same as when the Partnership was
formed, i.e., DSI Properties, Inc., a California corporation, Robert J. Conway
and Joseph W. Conway, brothers. As of December 31, 1995, Messrs. Robert J.
Conway and Joseph W. Conway, each of whom own approximately 41.63% of the issued
and outstanding capital stock of DSI Financial, Inc., a California corporation,
together with Mr. Joseph W. Stok, currently comprise the entire Board of
Directors of DSI Properties, Inc.
Mr. Robert J. Conway is 62 years of age and is a licensed California real
estate broker, and since 1965 has been President and a member of the Board of
Directors of Diversified Securities, Inc., and since 1973 President, Chief
Financial Officer and a member of the Board of Directors of DSI Properties, Inc.
Mr. Conway received a Bachelor of Science Degree from Marquette University with
majors in Corporate Finance and Real Estate.
Mr. Joseph W. Conway is age 66 and has been Executive Vice President,
Treasurer and a member of the Board of Directors of Diversified Securities, Inc.
since 1965 and since 1973 the Vice President, Treasurer and member of the Board
of Directors of DSI Properties, Inc. Mr. Conway received a Bachelor of Arts
Degree from Loras College with a major in Accounting.
Mr. Joseph W. Stok is age 72 and has been a member of the Board of
Directors of DSI Properties, Inc. since 1994, a Vice President of Diversified
Securities, Inc. since 1973, and an Account Executive with Diversified
Securities, Inc. since 1967.
Item 11. EXECUTIVE COMPENSATION (MANAGEMENT RENUMERATION AND
TRANSACTIONS)
The information required to be furnished in Item 11 of Part III is
contained in Registrant's Financial Statements for its fiscal year ended
December 31, 1995, which together with the report of its independent auditors,
Deloitte & Touche LLP, is attached hereto as Exhibit 1 and incorporated herein
by this reference. In addition to such information:
(a) No annuity, pension or retirement benefits are proposed to be paid by
Registrant to any of the General Partners or to any officer or
director of the corporate General Partner;
(b) No standard or other arrangement exists by which directors of the
Registrant are compensated;
(c) The Registrant has not granted any option to purchase any of its
securities; and
(d) The Registrant has no plan, nor does the Registrant presently propose
a plan, which will result in any remuneration being paid to any
officer or director upon termination of employment.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
As of December 31, 1995, no person of record owned more than 5% of the
limited partnership units of Registrant, nor was any person known by Registrant
to own of record and beneficially, or beneficially only, more than 5% thereof.
The balance of the information required to be furnished in Item 12 of Part III
is contained in Registrant's Registration Statement on Form S-11, previously
filed pursuant to the Securities Act of 1933, as amended, and which is
incorporated herein by this reference. Please see information contained in Item
10 hereinabove.
<PAGE>
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information required to be furnished in Item 13 of Part III is
contained in Registrant's Financial Statements for its fiscal year ended
December 31, 1995, attached hereto as Exhibit l and incorporated herein by this
reference.
PART IV
Item 14 EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
(a)(l) Attached hereto and incorporated herein by this reference as Exhibit
l are Registrant's Financial Statements and Supplemental Schedule for
its year ended December 31, 1995, together with the reports of its
independent auditors, Deloitte & Touche. See Index to Financial
Statements and Supplemental Schedule.
(a)(2) Attached hereto and incorporated herein by this reference as Exhibit
2 is Registrant's letter to its Limited Partners regarding its Annual
Report for its fiscal year ended December 31, 1995. (b) No reports on
Form 8K were filed during the fiscal year ended December 31, 1995.
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
DSI REALTY INCOME FUND X
by: DSI Properties, Inc., a
California corporation, as
General Partner
By_____________________________ Dated: March 28, 1996
ROBERT J. CONWAY, President
(Chief Executive Officer, Chief
Financial Officer, and Director)
By____________________________ Dated: March 28, 1996
JOSEPH W. CONWAY (Executive
Vice President and Director)
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the registrant and
in the capacities and on the date indicated.
DSI REALTY INCOME FUND X
by: DSI Properties, Inc., a
California corporation, as
General Partner
By:__________________________ Dated: March 28, 1996
ROBERT J. CONWAY, President,
Chief Executive Officer, Chief
Financial Officer, and Director
By___________________________ Dated: March 28, 1996
JOSEPH W. CONWAY
(Executive Vice President
and Director)
<PAGE>
DSI REALTY INCOME FUND X
CROSS REFERENCE SHEET
FORM 1O-K ITEMS TO ANNUAL REPORT
PART I, Item 3. There are no legal proceedings pending or threatened.
PART I, Item 4. Not applicable.
PART II, Item 5. Not applicable.
PART II, Item 6. The information required is contained in Registrant's Financial
Statements for its fiscal year ended December 31, 1995, attached as Exhibit l to
Form 10-K.
PART II, Item 8. See Exhibit l to Form 10-K filed herewith.
PART II, Item 9. Not applicable.
<PAGE>
EXHIBIT l
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
SELECTED FINANCIAL DATA
FIVE YEARS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
TOTAL
REVENUES $2,529,555 $ 2,292,130 $ 1,926,999 $ 1,756,575 $ 1,644,327
TOTAL
EXPENSES 1,561,433 1,428,672 1,465,990 1,484,287 1,402,251
---------- ----------- ----------- ----------- -----------
NET
INCOME
(LOSS) $ 968,122 $ 863,458 $ 461,009 $ 272,288 $ 242,076
========== =========== =========== =========== ===========
TOTAL
ASSETS $9,890,145 $10,039,357 $10,059,109 $10,430,241 $11,092,798
========== =========== =========== =========== ===========
NET CASH
PROVIDED BY
OPERATING
ACTIVITIES $1,919,722 $ 1,319,398 $ 1,148,734 $ 987,669 $ 1,079,303
========== =========== =========== =========== ===========
NET INCOME
(LOSS)
PER LIMITED
PARTNERSHIP
UNIT $ 30.16 $ 26.90 $ 14.36 $ 8.48 $ 7.54
========== =========== =========== =========== ===========
CASH
DISTRIBUTIONS
PER $500
LIMITED
PARTNERSHIP
UNIT $ 40.00 $ 36.25 $ 31.25 $ 35.00 $ 35.00
========== =========== =========== =========== ===========
The following are reconciliations between the operating results and partners'
equity per the financial statements and the Partnership's income tax return for
the year ended December 31, 1995.
Operating Partners'
Results Equity
Per financial statements $ 968,122 $ 8,155,313
Excess financial statement depreciation 182,739 1,406,024
Capitalization of syndication costs 1,694,248
Accrued incentive management fee 115,576 881,742
Accrued partner distributions 321,042
Deferred rental revenues 18,575 74,734
Acquisition costs capitalized for
tax purposes 1,146,936
----------- -----------
Per Partnership income tax return $ 1,285,012 $13,680,039
=========== ===========
Net taxable income per $500 limited
partnership unit $ 40.43
===========
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
Page
FINANCIAL STATEMENTS:
Independent Auditors' Report F-1
Balance Sheets at December 31, 1995 and 1994 F-2
Statements of Income for the Three
Years Ended December 31, 1995 F-3
Statements of Changes in Partners' Equity for
the Three Years Ended December 31, 1995 F-4
Statements of Cash Flows for the Three Years
Ended December 31, 1995 F-5
Notes to Financial Statements F-6
SUPPLEMENTAL SCHEDULE:
Independent Auditors' Report F-8
Schedule XI - Real Estate and Accumulated Depreciation F-9
SCHEDULES OMITTED:
Financial statements and schedules not listed above are omitted because of the
absence of conditions under which they are required or because the
information is included in the financial statements named above, or in the
notes thereto.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Partners of
DSI Realty Income Fund X:
We have audited the accompanying balance sheets of DSI Realty Income Fund VI, a
California Real Estate Limited Partnership (the "Partnership") as of December
31, 1995 and 1994, and the related statements of income, changes in partners'
equity, and cash flows for each of the three years in the period ended December
31, 1995. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of DSI Realty Income Fund VI at December 31,
1995 and 1994, and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 1995 in conformity with
generally accepted accounting principles.
January 31, 1996
DELOITTE & TOUCHE
LONG BEACH, CALIFORNIA
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
- --------------------------------------------------------------------------------
ASSETS 1995 1994
CASH AND CASH EQUIVALENTS $ 1,132,783 $ 590,983
PROPERTY, At cost (net of accumulated
depreciation of $4,091,582
in 1995 and $3,558,693 in 1994)
(Notes 1, 2 and 3) 8,684,418 9,123,547
RECEIVABLE FROM GENERAL PARTNERS
(Note 4) 271,362
OTHER ASSETS 72,944 53,465
----------- -----------
TOTAL $ 9,890,145 $10,039,357
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Distribution due partners $ 321,040 $ 321,040
Incentive management fee payable to
general partners (Note 4) 881,742 766,166
Property management fees payable (Note 1) 422,265 386,178
Customer deposits and other liabilities 109,785 94,620
----------- -----------
Total liabilities 1,734,832 1,568,004
----------- -----------
PARTNERS' EQUITY (Notes 1 and 4):
General partners (60,475) (57,314)
Limited partners (31,783 limited
partnership units outstanding
at December 31, 1995 and 1994) 8,215,788 8,528,667
------------ -----------
Total partners' equity 8,155,313 8,471,353
------------ -----------
TOTAL $ 9,890,145 $10,039,357
============ ===========
See accompanying notes to financial statements.
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
STATEMENTS OF INCOME
THREE YEARS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1995 1994 1993
REVENUES:
Rental revenues $2,495,544 $2,278,057 $1,924,108
Interest income 34,011 14,073 2,891
---------- ---------- ----------
Total revenues 2,529,555 2,292,130 1,926,999
---------- ---------- ----------
EXPENSES:
Depreciation (Note 2) 532,889 529,431 526,615
Operating expenses (Note 1) 692,615 598,094 682,682
General and administrative 220,353 196,407 170,013
General partners' incentive
management fee (Note 4) 115,576 104,740 86,680
---------- ---------- ----------
Total expenses 1,561,433 1,428,672 1,465,990
---------- ---------- ----------
NET INCOME $ 968,122 $ 863,458 $ 461,009
========== ========== ==========
AGGREGATE NET INCOME ALLOCATED
TO (Note 4):
Limited partners $ 958,441 $ 854,823 $ 456,399
General partners 9,681 8,635 4,610
---------- ---------- ----------
TOTAL $ 968,122 $ 863,458 $ 461,009
========== ========== ==========
NET INCOME PER LIMITED PARTNERSHIP
UNIT (Notes 2 and 4) $ 30.16 $ 26.90 $ 14.36
========== ========== ==========
See accompanying notes to financial statements.
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' EQUITY
THREE YEARS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
General Limited
Partners Partners Total
BALANCE AT JANUARY 1, 1993 ($49,290) $ 9,323,068 $ 9,273,778
Net income 4,610 456,399 461,009
Distributions (Note 4) (9,631) (953,490) (963,121)
------- ---------- ----------
BALANCE AT DECEMBER 31, 1993 (54,311) 8,825,977 8,771,666
Net income 8,635 854,823 863,458
Distributions (Note 4) (11,638) (1,152,133) (1,163,771)
------- ---------- -----------
BALANCE AT DECEMBER 31, 1994 (57,314) 8,528,667 8,471,353
Net income 9,681 958,441 968,122
Distributions (Note 4) (12,842) (1,271,320) (1,284,162)
------- ----------- -----------
BALANCE AT DECEMBER 31, 1995 ($60,475) $ 8,215,788 $ 8,155,313
======= =========== ===========
See accompanying notes to financial statements.
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
STATEMENTS OF CASH FLOWS
THREE YEARS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1995 1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 2,501,640 $ 2,278,057 $ 1,914,108
Interest and other income received 34,011 14,073 2,891
Cash paid to suppliers and employees (615,929) (972,732) (768,265)
----------- ----------- ------------
Net cash provided by operating
activities 1,919,722 1,319,398 1,148,734
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (1,284,162) (1,083,511) (1,003,251)
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property (93,760) (57,945)
----------- ----------- ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 541,800 177,942 145,483
CASH AND CASH EQUIVALENTS,
AT BEGINNING OF YEAR 590,983 413,041 267,558
----------- ----------- ------------
CASH AND CASH EQUIVALENTS,
AT END OF YEAR $ 1,132,783 $ 590,983 $ 413,041
=========== =========== ============
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net income $ 968,122 $ 863,458 $ 461,009
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 532,889 529,431 526,615
Changes in assets and liabilities:
Receivable from general partners 271,362 (271,362)
Other assets (19,479) (2,430) (10,000)
Incentive management fee payable to
general partners 115,576 104,740 86,680
Property management fee payable 36,087 88,881 95,705
Customer deposits and other
liabilities 15,165 6,680 (11,275)
----------- ----------- ------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 1,919,722 $ 1,319,398 $ 1,148,734
=========== =========== ============
See accompanying notes to financial statements.
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
THREE YEARS ENDED DECEMBER 31, 1995
1. GENERAL
DSI Realty Income Fund X, a California Real Estate Limited Partnership
(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, which were purchased for $500 a unit. The
general partners have made no capital contribution to the Partnership and
are not required to make any capital contribution in the future. The
Partnership as a maximum life of 50 years and was formed on March 27, 1981
under the California Uniform Limited Partnership Act for the primary
purpose of acquiring and operating real estate.
The Partnership owns five mini-storage properties, two of which are located
in Warren, Michigan; one in Crestwood, Illinois; one in Troy, Michigan; and
one in Forestville, Maryland. The facilities were acquired from Dahn
Corporation ("Dahn"). Dahn is not affiliated with the Partnership. Dahn
is affiliated with other partnerships in which DSI Properties, Inc.
is a general partner. The mini-storage facilities are operated for the
Partnership by Dahn under various agreements which are subject to
renewal annually. Under the terms of the agreements, the Partnership
is required to pay Dahn a property management fee equal to 5% of gross
revenue from operations, as defined.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents - The Partnership classifies its short-term
investments purchased with an original maturity of three months or less as
cash equivalents.
Net Income per Limited Partnership Unit - Net income per limited
partnership unit is computed by dividing net income allocated to the
limited partners by the weighted average number of limited partnership
units outstanding during each year (31,783 in 1995, 1994 and 1993).
Income Taxes - No provision has been made for income taxes in the
accompanying financial statements. The taxable income or loss of the
Partnership is allocated to each partner in accordance with the terms of
the Agreement of Limited Partnership. Each partner's tax status, in turn,
determines the appropriate income tax for its allocated share of the
Partnership taxable income or loss.
Property and Depreciation - Property is recorded at cost and is comprised
primarily of mini-storage facilities. Depreciation is provided for using
the straight-line method over an estimated useful life of 20 years for the
facilities.
Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires the Partnership to make
estimates and assumptions that affect the reported amount of assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
3. PROPERTY
As of December 31, 1995 and 1994, the total cost of property and
accumulated depreciation are as follows:
1995 1994
Land $ 2,089,882 $ 2,089,882
Buildings and improvements 10,686,118 10,592,358
----------- -----------
Total 12,776,000 12,682,240
Less accumulated depreciation (4,091,582) (3,558,693)
----------- ----------
Property, net $ 8,684,418 $ 9,123,547
=========== ===========
4. ALLOCATION OF PROFITS AND LOSSES
Under the Agreement of Limited Partnership, the general partners are to be
allocated 1% of the net profits or losses from operations and the limited
partners are to be allocated the balance of the net profits or losses from
operations in proportion to their limited partnership interests. The
general partners are also entitled to receive a percentage, based on a
predetermined formula, of any cash distribution from the sale, other
disposition, or refinancing of the project.
The general partners are entitled to receive an incentive management fee
for supervising the operations of the Partnership. The fee is to be paid in
an amount equal to 9% per annum of the cash available for distribution on a
cumulative basis. Incentive management fee payable to general partners at
December 31, 1995 and 1994 is $881,742 and $766,166, respectively.
In December 1994, subordinated incentive management fees in the amount of
$271,362 were distributed to the general partners in error. The amount,
which is reflected as receivable from general partners in the 1994
financial statements, was repaid in full on February 27,1995, with interest
at a rate of aproximately 5%.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Partners of
DSI Realty Income Fund X:
We have audited the financial statements of DSI Realty Income Fund X (the
"Partnership") as of December 31, 1995 and 1994, and for each of the three years
in the period ended December 31, 1995, and have issued our report thereon dated
January 31, 1996; such report is included elsewhere in this Form 10-K. Our
audits also included the financial statements schedule of DSI Realty Income Fund
X, listed in Item 14. This financial statement schedule is the responsibility
of the Partnership's management. Our responsibility is to express an opinion
based on our audits. In our opinion, such financial statements schedule, when
considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects, the information set forth therein.
January 31, 1996
DELOITTE & TOUCHE LLP
LONG BEACH, CALIFORNIA
<PAGE>
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
REAL ESTATE AND ACCUMULATED DEPRECIATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Costs Capitalized
Initial Cost to Subsequent to Gross Amount at Which Carried
Partnership Acquisition at Close of Period
------------------- ----------------- -----------------------------
Buildings Buildings Date
and Improve- Carrying and Accum. of Date
Description Encumbrances Land Improvements ments Costs Land Improvements Total Deprec. Const. Acq. Life
MINI-U-STORAGE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ryan Road, Warren,
Michigan None $277,799 $1,715,183 $277,799 $1,715,183 $1,992,982 $693,429 12/87 02/87 20 Yrs
Crestwood, Illinois None 205,960 1,631,179 205,960 1,631,179 1,837,139 659,471 12/87 04/87 20 Yrs
Grosebeck Highway,
Warren, Michigan None 314,517 1,760,657 59,165 314,517 1,819,822 2,134,339 711,392 01/88 04/87 20 Yrs
Forestville, Maryland None 755,000 2,278,110 7,980 755,000 2,286,090 3,041,090 846,241 07/88 08/87 20 Yrs
Troy, Michigan None 536,606 3,148,119 85,725 536,606 3,233,844 3,770,450 1,181,049 06/88 06/88 20 Yrs
-------- ---------- ------- -------- ---------- ---------- ----------
$2,089,882 $10,533,248 $152,870 $2,089,882 $10,686,118 $12,776,000*$4,091,582
========== ========== ======== ========== ========== =========== ==========
</TABLE>
Real Estate Accumulated
at Cost Depreciation
Balance at January 1, 1993 $12,624,295 $2,502,647
Additions 526,615
----------- ----------
Balance at December 31, 1993 12,624,295 3,029,262
Additions 57,945 529,431
----------- ----------
Balance at December 31, 1994 12,682,240 3,558,693
Additions 93,760 532,889
----------- ----------
Balance at December 31, 1995 $12,776,000 $4,091,582
=========== ==========
The total cost at the end of the period for Federal income tax purposes was
approximately $13,829,000.
<PAGE>
EXHIBIT 2
March 28, 1996
ANNUAL REPORT TO LIMITED PARTNERS OF
DSI REALTY INCOME FUND X
Dear Limited Partner:
This report contains the Partnership's balance sheets as of December 31,
1995 and 1994, and the related statements of income, changes in partners' equity
and cash flows for each of the three years in the period ended December 31, 1995
accompanied by an independent auditors' report. The Partnership owns five
mini-storage facilities, including two in Warren, MI. The Partnership's
properties were each purchased for all cash and funded solely from subscriptions
for limited partnership interests without the use of mortgage financing.
Your attention is directed to the section entitled Management's Discussion
and Analysis of Financial Condition and Results of Operations for the General
Partners' discussion and analysis of the financial statements and operations of
the Partnership.
Average occupancy levels for each of the Partnership's six properties for
the years ended December 31, 1995 and December 31, 1994 were as follows:
Location of Property Average Occupancy Average Occupancy
Level for the Level for the
Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994
Ryan Road,
Warren, MI 87% 92%
Crestwood, IL 83% 85%
Groesbeck Hwy,
Warren, MI 93% 92%
Forrestville, MD 87% 87%
Troy, MI 87% 88%
We will keep you informed of the activities of DSI Realty Income Fund X as
they develop. If you have any questions, please contact us at your convenience
at (310) 424-2655.
If you would like a copy of the Partnership's Annual Report on Form 10-K
for the year ended December 31, 1995 which was filed with the Securities and
Exchange Commission (which report includes the enclosed Financial Statements),
we will forward a copy of the report to you upon written request.
Very truly yours,
DSI REALTY INCOME FUND X
By: DSI Properties, Inc.
By___________________________
ROBERT J. CONWAY, President
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000792989
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 1132783
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 12776000
<DEPRECIATION> 4091582
<TOTAL-ASSETS> 9890145
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 9890145
<SALES> 2495544
<TOTAL-REVENUES> 2529555
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 968122
<INCOME-TAX> 0
<INCOME-CONTINUING> 968122
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 968122
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
