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, 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 June 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 June 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 June 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: July 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: July 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
July 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 June 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 June 30, 1998, and 1997, total revenues
increased 5.9% from $464,979 to $492,423 and total expenses increased 5.2%
from $279,874 to $294,445. As a result, net income increased 7.0% from
$185,105 for the three month period ended June 30, 1997, to $197,978 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 86.5% for the three month period ended June 30,
1998 as compared to 85.3% 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 increased approximately $11,800
(4.7%) primarily as a result of higher maintenance and repair expenses.
General and administrative expenses increased approximately $2,800 (9.4%)
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 six month periods ended June 30, 1998, and 1997, total revenues
increased 4.0% from $931,077 to $968,367 and total expenses increased 2.9%
from $549,852 to $565,911. As a result, net income increased 5.6% from
$381,225 for the six month period ended June 30, 1997, to $402,456 for the
same period in 1998. Rental revenue increased for the same reasons as
discussed above. Operating expenses increased approximately 11,000 (2.3%)
primarily as a result of higher yellow pages advertising costs, maintenance
and repair and office expenses partially offset by lower salaries and wages.
General and administrative expenses increased approximately $5,100 (6.8%)
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.
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)
JUNE 30, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 666,532 $ 500,351
PROPERTY 5,843,795 5,986,304
OTHER ASSETS 41,219 30,926
TOTAL $6,551,546 $6,517,581
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 293,215 $ 257,666
PARTNERS' EQUITY:
General Partners (27,083) (27,068)
Limited Partners 6,285,414 6,286,983
Total partners' equity 6,258,331 6,259,915
TOTAL $6,551,546 $6,517,581
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
June 30, June 30,
1998 1997
REVENUES:
Rental Income $ 487,576 $ 461,442
Interest 4,847 3,537
Total revenues 492,423 464,979
EXPENSES:
Operating Expenses 261,831 250,053
General and Administrative 32,614 29,821
Total expenses 294,445 279,874
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURES 197,978 185,105
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURES 0 0
NET INCOME 197,978 185,105
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 195,998 $ 183,254
General partners 1,980 1,851
TOTAL $ 197,978 $ 185,105
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 9.80 $ 9.16
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, 1998 AND 1997
June 30, June 30,
1998 1997
REVENUES:
Rental Income $ 960,038 $ 925,014
Interest 8,329 6,063
Total revenues 968,367 931,077
EXPENSES:
Operating Expenses 485,956 474,995
General and administrative 79,955 74,857
Total expenses 565,911 549,852
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURES $ 402,456 $ 381,225
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURES 0 0
NET INCOME $ 402,456 $ 402,456
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 398,431 $ 377,413
General partners 4,025 3,812
TOTAL $ 402,456 $ 381,225
NET INCOME PER LIMITED
PARTNERSHIP UNIT $19.92 $18.87
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1996 ($25,145) $6,477,469 $6,452,324
NET INCOME 3,812 377,413 381,225
DISTRIBUTIONS (3,536) (350,000) (353,536)
EQUITY AT JUNE 30, 1997 ($24,869) $6,504,882 $6,480,013
EQUITY AT DECEMBER 31, 1997 ($27,068) $6,286,983 $6,259,915
NET INCOME 4,025 398,431 402,456
DISTRIBUTIONS (4,040) (400,000) (404,040)
EQUITY AT JUNE 30, 1998 ($27,083) $6,285,414 $6,258,331
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 402,456 $ 381,225
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 (10,293) (19,676)
Increase in liabilities 35,549 3,263
Net cash provided by
operating activities 587,108 524,208
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property and equipment (16,887)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (404,040) (353,536)
NET INCREASE CASH AND
CASH EQUIVALENTS 166,181 170,672
CASH AND CASH EQUIVALENTS:
At beginning of period 500,351 384,938
At end of period $ 666,532 $ 555,610
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 June 30, 1998, and for the
periods ended June 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 June 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 Parnterships, of which Dahn Corporation is the
General Partner.
As of June 30, 1998, the total property cost and accumulated
depreciation are as follows:
<TABLE>
<S> <C>
Land $ 1,894,250
Buildings 6,437,441
Furniture and equipment 7,594
Total 8,339,285
Less: Accumulated Depreciation ( 2,495,490)
Property - Net $ 5,843,795
</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-31-1998 DEC-31-1998
<PERIOD-END> JUN-30-1998 DEC-31-1998
<CASH> 666532 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 8339285 0
<DEPRECIATION> 2495490 0
<TOTAL-ASSETS> 6551546 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6551546 0
<SALES> 960038 0
<TOTAL-REVENUES> 968367 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 402456 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 402456 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 402456 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
