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
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
DSI REALTY INCOME FUND XI
(A California Real Estate Limited Partnership)
BALANCE SHEETS(UNAUDITED)
SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
<S> <C> <C>
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).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
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).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
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 $24.32
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 20,000 20,000
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT JANUARY 1, 1997 ($ 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).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
1995 1994
<S> <C> <C>
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).
</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, 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:
<TABLE>
<S> <C>
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
</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> SEP-30-1998 DEC-31-1998
<CASH> 663595 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 8339285 0
<DEPRECIATION> 2575188 0
<TOTAL-ASSETS> 6474165 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6474165 0
<SALES> 1468059 0
<TOTAL-REVENUES> 1482077 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 518922 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 518922 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 518922 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
