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, 1996
/___/ 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.)
3701 Long Beach Boulevard, Long Beach, California 90807
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code-(310)595-7711
_________________________________________________________________
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, 1996, 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, 1996.
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, 1996.
(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, 1996 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, 1996 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
October 31, 1996
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, 1996. 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, 1996 and 1995, total revenues
increased 7.5% from $447,045 to $480,654 and total expenses decreased 3.8%
from $263,964 to $254,069. Minority interest in income of real estate joint
ventures increased $103,000. As a result, net income decreased 32.5% from
$183,081 for the three month period ended September 30, 1995, to $123,585
for the same period in 1996. Occupancy levels for the Partnership's four
mini-storage facilities averaged 88.7% for the three month period ended
September 30, 1996 as compared to 87.8% for the same period in 1995. Rental
revenue increased as a result of higher occupancy and unit rental rates.
The Partnership is continuing its marketing efforts to attract and keep new
tenants in its various mini-storage facilities. Operating expenses decreased
approximately $12,000 (5%) primarily as a result of lower maintenance and
repair, office supplies and worker's compensation insurance expenses partially
offset by an increase in real estate tax expense. General and administrative
expenses increased approximately $2,100 (9.2%) primarily as a result of
Michigan and Illinois partnership tax prepayments. Minority interest in
income of real estate joint ventures increased as a result of the Partnership
having reached the level of income in the current period where the minority
partners start participating in the distribution of said income.
For the nine month periods ended September 30, 1996, and 1995, total revenues
increased 7.3% from $1,283,200 to $1,376,256 and total expenses decreased
0.6% from $813,215 to $808,079. Minority interest in income of real estate
joint ventures increased $103,000. As a result, net income decreased 1% from
$469,985 for the nine month period ended September 30, 1995, to $465,177 for
the same period in 1996. Rental revenue increased for the same reasons as
discussed above. Operating expenses decreased approximately $10,700 (1.5%)
primarily as a result of lower yellow pages advertising, maintenance and
repair, office supplies and security expenses partially offset by higher
salaries and wages, real estate tax expense and property management fees.
Property management fees, which are based on rental income, increased as a
result of the increase in rental income. General and administrative expenses
increased approximately $5,500 (5.6%) for the same reasons as discussed
above. The reason for the increase in minority interest in income of real
estate joint ventures is the same as discussed above.
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.
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)
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 438,316 $ 277,455
PROPERTY 6,390,656 6,616,116
OTHER ASSETS 42,923 19,566
TOTAL $6,871,895 $6,913,137
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 269,390 $ 245,505
PARTNERS' EQUITY:
General Partners (23,644) (22,992)
Limited Partners 6,626,149 6,690,624
Total partners' equity 6,602,505 6,667,632
TOTAL $6,871,895 $6,913,137
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $ 477,218 $ 444,033
Interest 3,436 3,012
Total revenues 480,654 447,045
EXPENSES:
Operating Expenses 229,340 241,308
General and administrative 24,729 22,656
Total expenses 254,069 263,964
INCOME BEFORE MINORITY INTEREST IN
INCOME OR REAL ESTATE JOINT VENTURES 226,585 183,081
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURES 103,000
NET INCOME $ 123,585 $ 183,081
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 122,349 $ 181,250
General partners 1,236 1,831
TOTAL $ 123,585 $ 183,081
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.12 $ 9.06
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 20,000 20,000
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $1,368,607 $1,275,572
Interest 7,649 7,628
Total revenues 1,376,256 1,283,200
EXPENSES:
Operating expenses 704,929 715,607
General and administrative 103,150 97,608
Total expenses 808,079 813,215
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURES 568,177 469,985
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURES 103,000
NET INCOME 465,177 469,985
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners 460,525 465,285
General partners 4,652 4,700
TOTAL 465,177 469,985
NET INCOME PER LIMITED
PARTNERSHIP UNIT $23.03 $23.26
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 20,000 20,000
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1994 ($ 19,863) $7,000,382 $6,980,519
NET INCOME 4,700 465,285 469,985
DISTRIBUTIONS (5,304) (525,000) (530,304)
EQUITY AT SEPTEMBER 30, 1995 ($20,467) $6,940,667 $6,920,200
EQUITY AT DECEMBER 31, 1995 ($22,992) $6,690,624 $6,667,632
NET INCOME 4,652 460,525 465,177
DISTRIBUTIONS (5,304) (525,000) (530,304)
EQUITY AT SEPTEMBER 30, 1996 ($23,644) $6,626,149 $6,602,505
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 465,177 $ 469,985
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 (23,357) (13,420)
Decrease in liabilities 23,885 1,520
Net cash provided by
operating activities 704,799 697,179
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property and equipment (13,634) (14,432)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (530,304) (530,304)
NET INCREASE CASH AND
CASH EQUIVALENTS 160,861 152,443
CASH AND CASH EQUIVALENTS:
At beginning of period 277,455 299,707
At end of period $ 438,316 $ 452,150
See accompanying notes to financial statements(unaudited).
</TABLE>
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, 1996, and for the
periods ended September 30, 1996, and 1995 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, 1996, 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, 1996, the total property cost and accumulated
depreciation are as follows:
<TABLE>
<S> <C>
Land $ 1,894,250
Buildings 6,420,554
Furniture and equipment 7,594
Total 8,322,398
Less: Accumulated Depreciation ( 1,931,742)
Property - Net $ 6,390,656
</TABLE>
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.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-END> SEP-30-1996 DEC-31-1996
<CASH> 438316 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 8322398 0
<DEPRECIATION> 1931742 0
<TOTAL-ASSETS> 6871895 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6871895 0
<SALES> 1368607 0
<TOTAL-REVENUES> 1376256 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 465177 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 465177 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 465177 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
