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, 1999
/___/ 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, 1999 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, 1999.
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, 1999.
(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, 1999 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, 1999 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, 1999
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, 1999. 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, 1999, and 1998, total revenues
increased 7.0% from $492,423 to $527,092 and total expenses increased 8.0%
from $294,445 to $317,492. As a result, net income increased 5.9% from
$197,978 for the three-month period ended June 30, 1998, to $209,600 for the
same period in 1999. Rental revenue increased as a result of higher unit
rental rates. Occupancy levels for the Partnership's four mini-storage
facilities averaged 85.76% for the three month period ended June 30, 1999 as
compared to 86.5% for the same period in 1998. The Partnership is continuing
its marketing efforts to attract and keep new tenants in its various mini-
storage facilities. Operating expenses increased approximately $24,700 (9.4%)
primarily as a result of higher maintenance and repair, salaries and wage
expenses and property management fees. Property management fees, which are
computed as a percentage of rental revenue, increased as a result of the
increase in rental revenue as well as an increase in the percentage charged
from 5% to 6% effective January 1, 1999. General and administrative expenses
decreased approximately $1,600 (5.0%) primarily as a result of the decrease
in legal and professional expenses.
For the six month periods ended June 30, 1999, and 1998, total revenues
increased 8.7% from $968,367 to $1,053,006 and total expenses increased 7.6%
from $565,911 to $609,072. As a result, net income increased 10.3% from
$402,456 for the six-month period ended June 30, 1998, to $443,934 for the
same period in 1999. Rental revenue increased for the same reasons as
discussed above. Operating expenses increased approximately $45,400 (9.3%)
primarily as a result of higher maintenance and repair, real estate tax,
salaries and wages, power and sweeping expenses and property management fees.
The increase in property management fees was discussed above. Power and
sweeping expenses increased as a result of the substantial snow removal
costs associated with the blizzard that hit Illinois and Michigan where two
of the Partnership's properties are located. General and administrative
expenses decreased approximately $2,300 (2.8%) for the same reason as
discussed above.
The General Partners determined that effective with the first 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)
JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 614,761 $ 393,912
PROPERTY, Net 5,561,452 5,720,848
OTHER ASSETS 39,290 37,854
TOTAL $6,215,503 $6,152,614
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 324,054 $ 301,059
PARTNERS' EQUITY (DEFICIT):
General Partners (30,752) (31,151)
Limited Partners 5,922,201 5,882,706
Total partners' equity 5,891,449 5,851,555
TOTAL $6,215,503 $6,152,614
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental income $ 525,569 $ 487,576
Interest 1,523 4,847
Total revenues 527,092 492,423
EXPENSES:
Operating 286,520 261,831
General and Administrative 30,972 32,614
Total expenses 317,492 294,445
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURES 209,600 197,978
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURES 0 0
NET INCOME 209,600 197,978
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 207,504 $ 195,998
General Partners 2,096 1,980
TOTAL $ 209,600 $ 197,978
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 10.38 $ 9.80
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, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental income $1,049,916 $ 960,038
Interest 3,090 8,329
Total revenues 1,053,006 968,367
EXPENSES:
Operating 531,391 485,956
General and administrative 77,681 79,955
Total expenses 609,072 565,911
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURES $ 443,934 $ 402,456
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURES 0 0
NET INCOME $ 443,934 $ 402,456
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 439,495 $ 398,431
General Partners 4,439 4,025
TOTAL $ 443,934 $ 402,456
NET INCOME PER LIMITED
PARTNERSHIP UNIT $21.97 $19.92
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 1998 ($27,068) $6,286,983 $6,259,915
NET INCOME 4,025 398,431 402,456
DISTRIBUTIONS (4,040) (400,000) (404,040)
BALANCE AT JUNE 30, 1998 ($27,083) $6,285,414 $6,258,331
BALANCE AT JANUARY 1, 1999 ($31,151) $5,882,706 $5,851,555
NET INCOME 4,439 439,495 443,934
DISTRIBUTIONS (4,040) (400,000) (404,040)
BALANCE AT JUNE 30, 1999 ($30,752) $5,922,201 $5,891,449
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 443,934 $ 402,456
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 (1,436) (10,293)
Increase in liabilities 22,995 35,549
Net cash provided by
operating activities 624,889 587,108
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property and equipment 0 (16,887)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (404,040) (404,040)
NET INCREASE CASH AND
CASH EQUIVALENTS 220,849 166,181
CASH AND CASH EQUIVALENTS:
At beginning of period 393,912 500,351
At end of period $ 614,761 $ 666,532
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, 1999, and for the
periods ended June 30, 1999, and 1998 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, 1999, 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, 1999, the total property cost and accumulated
depreciation are as follows:
<TABLE>
<S> <C>
Land $ 1,894,250
Buildings 6,474,340
Furniture and equipment 7,594
Total 8,376,184
Less: Accumulated Depreciation ( 2,814,732)
Property - Net $ 5,561,452
</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-31-1999 DEC-31-1999
<PERIOD-END> JUN-30-1999 DEC-31-1999
<CASH> 614761 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 8376184 0
<DEPRECIATION> 2814732 0
<TOTAL-ASSETS> 6215503 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6215503 0
<SALES> 1049916 0
<TOTAL-REVENUES> 1053006 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 443934 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 443934 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 443934 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
