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, 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 September 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 September 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 September 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: October 29, 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: October 29, 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
October 29, 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 September 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 September 30, 1999 and 1998, total revenues
increased 2.0% from $513,710 to $524,165 and total expenses increased 3.5%
from $265,090 to $274,290. Minority interest in income of real estate joint
ventures increased 4.2% from $132,154 to $137,654. As a result, net income
decreased 3.6% from $116,466 for the three-month period ended September 30,
1998, to $112,221 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 85.5% for the three month period ended
September 30, 1999 as compared to 90.6% 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 $6,500 (2.7%) primarily as a result of higher salaries and wage
expenses and property management fees partially offset by a decrease in
maintenance and repair expenses. 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 increased
approximately $2,700 (10.3%) primarily as a result of relatively insignificant
fluctuations in various expense accounts.
For the nine-month periods ended September 30, 1999, and 1998, total revenues
increased 6.4% from $1,482,077 to $1,577,171 and total expenses increased 6.3%
from $831,001 to $883,362. Minority interest in income of real estate joint
ventures increased 4.2% from $132,154 to $137,654. As a result, net income
increased 7.2% from $518,922 for the nine-month period ended September 30,
1998, to $556,155 for the same period in 1999. Rental revenue increased for
the same reasons as discussed above. Operating expenses increased approxi-
mately $52,000 (7.2%) primarily as a result of higher 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 remained relatively constant.
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)
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 583,119 $ 393,912
PROPERTY, Net 5,481,754 5,720,848
OTHER ASSETS 39,289 37,854
TOTAL $6,104,162 $6,152,614
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 302,512 $ 301,059
PARTNERS' EQUITY:
General Partners (31,649) (31,151)
Limited Partners 5,833,299 5,882,706
Total partners' equity 5,801,650 5,851,555
TOTAL $6,104,162 $6,152,614
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental Income $ 522,629 $ 508,021
Interest 1,536 5,689
Total revenues 524,165 513,710
EXPENSES:
Operating 245,840 239,303
General and administrative 28,450 25,787
Total expenses 274,290 265,090
INCOME BEFORE MINORITY INTEREST IN
INCOME OR REAL ESTATE JOINT VENTURES 249,875 248,620
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURES (137,654) (132,154)
NET INCOME $ 112,221 $ 116,466
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 111,099 $ 115,301
General partners 1,122 1,165
TOTAL $ 112,221 $ 116,466
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 5.55 $ 5.77
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, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental Income $1,572,545 $1,468,059
Interest 4,626 14,018
Total revenues 1,577,171 1,482,077
EXPENSES:
Operating expenses 777,231 725,259
General and administrative 106,131 105,742
Total expenses 883,362 831,001
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURES 693,809 651,076
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURES (137,654) (132,154)
NET INCOME 556,155 518,922
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners 550,593 513,733
General partners 5,562 5,189
TOTAL 556,155 518,922
NET INCOME PER LIMITED
PARTNERSHIP UNIT $27.53 $25.69
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
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
BALANCE AT JANUARY 1, 1999 ($31,151) $5,882,706 $5,851,555
NET INCOME 5,562 550,593 556,155
DISTRIBUTIONS (6,060) (600,000) (606,060)
BALANCE AT SEPTEMBER 30, 1999 ($31,649) $5,833,299 $5,801,650
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 556,155 $ 518,922
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 239,094 239,094
Changes in assets and
liabilities:
Increase in other assets (1,435) (15,547)
Increase in liabilities 1,453 43,722
Net cash provided by
operating activities 795,267 786,191
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property and equipment 0 (16,887)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (606,060) (606,060)
NET INCREASE CASH AND
CASH EQUIVALENTS 189,207 163,244
CASH AND CASH EQUIVALENTS:
At beginning of period 393,912 500,351
At end of period $ 583,119 $ 663,595
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, 1999, and for the
periods ended September 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 September 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 Partnerships, of which Dahn Corporation is the
General Partner.
As of September 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 ( 2,894,430)
Property - Net $ 5,481,754
</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> SEP-30-1999 DEC-31-1999
<CASH> 583119 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 8376184 0
<DEPRECIATION> 2894430 0
<TOTAL-ASSETS> 6104162 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6104162 0
<SALES> 1572545 0
<TOTAL-REVENUES> 1577171 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 556155 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 556155 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 556155 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
