July 31, 2000
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, 2000. 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, 2000, and 1999, total revenues
increased 4.1% from $729,606 to $759,841 and total expenses increased 6.0%
from $405,922 to $430,244. As a result, net income increased 1.8% from
$323,684 to $329,597 for the three-month period ended June 30, 2000, as
compared to the same period in 1999. The increase in revenues can be
attributed to an increase in rental income due to higher unit rental rates.
Occupancy levels for the Partnership's five mini-storage facilities averaged
85.4% for the three-month period ended June 30, 2000, as compared to 84.7%
for the same period in 1999. The Partnership is continuing its advertising
campaign to attract and keep new tenants in its various mini-storage facilities.
Operating expenses increased approximately $17,000 (4.8%) primarily as a
result of increases in yellow pages advertising and maintenance and repair
expenses, partially offset by a decrease in salaries and wages expnese.
General and administrative expenses increased approximately $7,300 (13.7%)
primarily as a result of higher Maryland state taxes.
For the six month periods ended June 30, 2000, and 1999, total revenues
increased 7.4% from $1,404,158 to $1,508,452 and total expenses increased
5.0% from $820,306 to $861,194. As a result, net income increased 10.9%
from $583,852 for the six-month period ended June 30, 1999, to $647,258
for the same period in 2000. The increase in revenues can be attributed to
an increase in rental revenue due to higher unit rental rates. Operating
expenses increased approximately $31,100 (4.5%) from $699,341 to $730,435.
The increase is primarily due to higher advertising costs, maintenance and
repair, property management fees and security alarm services, partially offset
by decreases in real estate tax, salaries and wages and power and sweeping
expenses. Property management fees, which are based on rental revenue,
increased as a result of the increase in rental revenue. Power and sweeping
expenses decreased as the substantial snow removal costs in the prior year
associated with the blizzard, which hit the Detroit, Michigan area, did not
materialize in the current year. General and administrative expenses in-
creased approximately $9,800 (8.1%) primarily as a result of increases in
Maryland state tax payments and 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
