Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Document And Entity Information | ' |
Entity Registrant Name | 'DSI Realty Income Fund XI |
Entity Central Index Key | '0000844048 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Is Entity a Well-known Seasoned Issuer? | 'No |
Is Entity a Voluntary Filer? | 'No |
Is Entity's Reporting Status Current? | 'No |
Entity Filer Category | 'Smaller Reporting Company |
Entity Public Float | $10,000,000 |
Entity Common Stock, Shares Outstanding | 20,000 |
Document Fiscal Period Focus | 'Q3 |
Document Fiscal Year Focus | '2013 |
Condensed_Balance_Sheets_Unaud
Condensed Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS: | ' | ' |
Cash & Equivalents | $371,442 | $307,881 |
Property Net | 1,975,110 | 1,985,415 |
Uncollected Rent Receivable | 80,552 | 87,996 |
Prepaid Advertising | 5,998 | 3,298 |
Other Assets | 33,380 | 33,380 |
TOTAL | 2,466,482 | 2,417,970 |
LIABILITIES: | ' | ' |
Distribution due to Partners | 151,515 | 151,515 |
Incentive Management Fee Liability | 13,636 | 29,613 |
Property Management Fee Liability | 10,513 | 10,016 |
Deferred Income | 37,276 | 35,266 |
Accrued Expenses | 24,611 | 19,311 |
Other Liabilities | 91,868 | 93,374 |
Total Liabilities | 329,419 | 339,095 |
PARTNERS' EQUITY: | ' | ' |
General Partners | -68,296 | -68,878 |
Limited Partners | 2,205,359 | 2,147,753 |
Total Partners' Equity | 2,137,063 | 2,078,875 |
Noncontrolling interest in real estate joint venture | 0 | 0 |
Total Equity | 2,137,063 | 2,078,875 |
TOTAL | $2,466,482 | $2,417,970 |
Condensed_Statements_of_Income
Condensed Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
REVENUES: | ' | ' | ' | ' |
Self-storage rental income | $496,163 | $468,125 | $1,443,430 | $1,396,621 |
Ancillary operating revenue | 39,822 | 33,782 | 110,677 | 102,803 |
Interest and other income | 0 | 0 | 0 | 6 |
TOTAL | 535,985 | 501,907 | 1,554,107 | 1,499,430 |
EXPENSES: | ' | ' | ' | ' |
Depreciation | 3,413 | 3,198 | 10,305 | 11,229 |
Operating | 236,039 | 249,316 | 704,915 | 663,908 |
General and administrative | 56,354 | 54,017 | 192,527 | 175,834 |
General partners' incentive management fee | 13,637 | 13,637 | 40,908 | 40,909 |
Property management fee- related party | 30,548 | 30,512 | 92,719 | 90,681 |
Total | 339,991 | 350,680 | 1,041,374 | 982,561 |
NET INCOME | 195,994 | 151,227 | 512,733 | 516,869 |
LESS: net income attributable to the non-controlling interest | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP | 195,994 | 151,227 | 512,733 | 516,869 |
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP ALLOCATED TO: | ' | ' | ' | ' |
General partners | 1,960 | 1,512 | 5,127 | 5,169 |
Limited partners | 194,034 | 149,715 | 507,606 | 511,700 |
TOTAL | $195,994 | $151,227 | $512,733 | $516,869 |
Weighted average limited partnership units outstanding | 20,000 | 20,000 | 20,000 | 20,000 |
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP PER LIMITED PARTNERSHIP UNIT | 9.7 | 7.49 | 25.38 | 25.59 |
Condensed_Statements_of_Partne
Condensed Statements of Partners' Equity(Deficit) (Unaudited) (USD $) | General Partners | Limited Partners | Non-controlling Interest | Total |
BALANCE, Beginning at Dec. 31, 2012 | ($68,878) | $2,147,753 | ' | $2,078,875 |
Net Income Allocation | 5,127 | 507,606 | 0 | 512,733 |
Distributions | -4,545 | -450,000 | 0 | ' |
BALANCE, Ending at Sep. 30, 2013 | ($68,296) | $2,205,359 | $0 | $2,137,063 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income attributable to the Partnership | $512,733 | $516,869 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 10,305 | 11,229 |
Net income attributable to non-controlling interests | 0 | 0 |
Changes in assets and liabilities: | ' | ' |
Other assets | 4,744 | -1,689 |
Incentive management fee payable to General Partners | -15,977 | 4,546 |
Property management fees payable | 497 | 480 |
Customer deposits and other liabilities | 5,804 | 40 |
Net cash provided by operating activities | 518,106 | 531,475 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Additions to property | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Distributions to partners | -454,545 | -455,295 |
Distributions paid to non-controlling interests | 0 | 0 |
Net cash used in financing activities | -454,545 | -455,295 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 63,561 | 76,180 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 307,881 | 303,356 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 371,442 | 379,536 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest | 0 | 0 |
NON CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Distributions due partners included in partners' equity | $151,515 | $151,515 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
General | ' |
Registrant, DSI Realty Income Fund XI (the "Partnership") is a publicly-held limited partnership organized under the California Uniform Limited Partnership Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter referred to as "Agreement") dated December 7, 1988. The General Partners are DSI Properties, Inc., a California corporation, and RJC Capital Management, LLC and JWC Capital Management, LLC. | |
DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, the Partnership sold twenty thousand (20,000) units of limited partnership interests, aggregating Million Dollars ($10,000,000). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions), without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future. | |
The Partnership has entered into four joint venture arrangements with affiliates of Dahn Corporation (Dahn). The Partnership and its joint venture partners have acquired mini-storage properties located in Whittier, California; Edgewater, New Jersey; Bloomingdale, Illinois; and Sterling Heights, Michigan. The properties were acquired from Dahn. | |
Pursuant to the terms of each joint venture agreement, annual profits (before depreciation) of each joint venture will be allocated to the Joint Venture Partners on the basis of actual distributions received, while annual losses (before depreciation) are to be allocated in proportion to the ownership percentages as specified below. Cash distributions are to be made to each Joint Venture Partner based upon each Joint Venture Partner’s ownership percentage. However, the Joint Venture Partners have subordinated their rights to any distributions to the Partnership’s receipt of an annual, noncumulative, 8% return (7.75% for the Whittier Mini Property) from the operation of the joint ventures. A non-controlling interest in real estate joint venture is recorded to the extent of any distributions due to the Joint Venture Partners. As of September 30, 2013, no non-controlling interest in real estate joint venture was recorded as the requirements under the subordination agreement had not been met. The Joint Venture Partners are also entitled to receive a percentage, based upon a pre-determined formula, of the net proceeds from the sale of the properties. | |
The accompanying unaudited interim consolidated financial statements have been prepared by the Partnership's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conjunction with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2012. | |
Significant Accounting Policies | |
The Partnership has adopted Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the nine months ended September 30, 2013 and 2012 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of September 30, 2013 and December 31, 2012, accumulated other comprehensive income was $0. | |
ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. The Partnership considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. | |
Recent Accounting Pronouncements | |
In April 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-07 Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting in order to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Partnership does not expect the adoption of the standard update to have a material impact on its financial position or results of operations. | |
In February 2013 the FASB issued ASU 2013-04 Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, in order to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). The amendments in the Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Partnership does not expect the adoption of the standard update to have a material impact on its financial position or results of operations. | |
In February 2013, the FASB issued ASU 2013-02 Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, in order to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this Update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Partnership considers the adoption of the standard update will not impact its financial position or results of operations. | |
In July 2013, the FASB has issued ASU No. 2013-11, Income Taxes (Topic 740)--Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force), which finalizes Proposed ASU No. EITF-13C, and provides for explicit guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward asset exits. ASU No. 2013-11 applies prospectively to all entities that have unrecognized tax benefits when net operating loss carryforward, a similar tax loss, or a tax credit carryforward exits at the reporting date. Retrospective application is also permitted. Further, ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Partnership considers the adoption of the standard update will not impact its financial position or results of operations. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Subsequent Events | ' |
In November 2013 the Partnership began the process of obtaining an open market valuation of the self storage properties portfolio (the "Properties"). In this regard, the Partnership has retained Bancap Self Storage Group, Inc. ("Bancap") as their valuation consultant. Bancap is an industry leader in self storage property sales and marketing, and is uniquely positioned to obtain the best indication of potential market value. | |
Once the analysis has been completed, the General Partners will inform the Limited Partners as to the strategic options that may be available so that any recommendation can be presented to the Limited Partners. |
Property
Property | 9 Months Ended | ||
Sep. 30, 2013 | |||
Notes to Financial Statements | ' | ||
Properties | ' | ||
The Partnership holds a 90% interest in a joint venture that owns a mini-storage facility in Whittier, California; an 85% interest in an operating mini-storage in Edgewater Park, New Jersey; a 90% interest in an operating mini-storage facility in Bloomington, Illiniois; and a 75% interest in an operating mini-storage facility in Sterling Heights, Michigan. Depreciation is calculated using the straight-line method over the estimated useful life of 20 years. Property under capital leases is amortized over the lives of the respective leases. The total cost of property and accumulated depreciation at September 30, 2013 and December 31, 2012 were as follows: | |||
30-Sep-13 | 31-Dec-12 | ||
Land | $1,894,250 | $1,894,250 | |
Buildings and improvements | 6,725,753 | 6,725,753 | |
Rental trucks under capital leases | 163,382 | 163,382 | |
Total | 8,783,385 | 8,783,385 | |
Less accumulated depreciation | -6,808,275 | -6,797,970 | |
Properties - net | $1,975,110 | $1,985,415 |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Related Party Transactions | ' |
The Partnership has entered into a management agreement with Dahn to operate its mini-storage facilities. The management agreement provides for a management fee equal to 6% of gross revenue from operations, which is defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreement is renewable annually. Dahn earned management fees equal to $92,719 and $90,681, for the nine month periods ended September 30, 2013 and 2012, respectively. Amounts payable to Dahn at September 30, 2013 and December 31, 2012 were $10,513 and $10,016, respectively. | |
Beginning in July 2011, the General Partner, DSI Properties, Inc. performs all tax related work with respect to the Partnership. These services are paid monthly in the amount of $2,313. Tax fees paid to DSI Properties, Inc. for the nine month period ended September 30, 2013 and 2012 were $20,817. |
Allocations_of_Profits_and_Los
Allocations of Profits and Losses | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Allocations of Profits and Losses | ' |
Under the Agreement of Limited Partnership, the general partners are to be allocated 1% of the net profits or losses from operations, and the limited partners are to be allocated the balance of the net profits or losses from operations in proportion to their limited partnership interests. The general partners are also entitled to receive a percentage, based on a predetermined formula, of any cash distribution from the sale, other disposition, or refinancing of the project. | |
In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership. The fee is to be paid in an amount equal to 9% per annum of the cash distributions to limited partners in the fund. |
Net_Income_Per_Limited_Partnse
Net Income Per Limited Partnsership Unit | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Net Income Per Limited Partnsership 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. | |
General_Policies
General (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Nature of Operations | ' |
Registrant, DSI Realty Income Fund XI (the "Partnership") is a publicly-held limited partnership organized under the California Uniform Limited Partnership Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter referred to as "Agreement") dated December 7, 1988. The General Partners are DSI Properties, Inc., a California corporation, and RJC Capital Management, LLC and JWC Capital Management, LLC. | |
DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, the Partnership sold twenty thousand (20,000) units of limited partnership interests, aggregatingTen Million Dollars ($10,000,000). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions), without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future. | |
The Partnership has entered into four joint venture arrangements with affiliates of Dahn Corporation (Dahn). The Partnership and its joint venture partners have acquired mini-storage properties located in Whittier, Californai; Edgewater, New Jersey; Bloomingdale, Illinois; and Sterling Heights, Michigan. The properties were acquired from Dahn. | |
Comparability to Prior Year Data | ' |
The accompanying unaudited interim consolidated financial statements have been prepared by the Partnership's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conjunction with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2012. | |
Comprehensive Income | ' |
The Partnership has adopted Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the nine months ended September 30, 2013 and 2012 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of September 30, 2013 and December 31, 2012, accumulated other comprehensive income was $0. | |
Fair Value Disclosures | ' |
ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. The Partnership considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. |
Property_Tables
Property (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Notes to Financial Statements | ' | ||
Summary of Property and Equipment | ' | ||
30-Sep-13 | 31-Dec-12 | ||
Land | $1,894,250 | $1,894,250 | |
Buildings and improvements | 6,725,753 | 6,725,753 | |
Rental trucks under capital leases | 163,382 | 163,382 | |
Total | 8,783,385 | 8,783,385 | |
Less accumulated depreciation | -6,808,275 | -6,797,970 | |
Properties - net | $1,975,110 | $1,985,415 |
Allocations_of_Profits_and_Los1
Allocations of Profits and Losses (Details Narrative) | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
General Partner Percentage | 1.00% |
General_Details_Narrative
General (Details Narrative) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Limited Partnership Units Outstanding | 20,000 |
Public Float | $10,000,000 |
General Partner Percent Ownership Percentage | 1.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' | ' | ' |
Management Fee Percentage | ' | ' | ' | 6.00% | ' | ' |
Management Fee | ' | $30,548 | $30,512 | $92,719 | $90,681 | ' |
Payable To Dahn | 10,513 | 10,513 | ' | 10,513 | ' | 10,016 |
Monthly Tax Fee to General Partner | $2,313 | ' | ' | $20,817 | ' | ' |
Property_Summary_of_Property_a
Property - Summary of Property and Equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Properties, net | ' | ' |
Land | $1,894,250 | $1,894,250 |
Buildings and improvements | 6,725,753 | 6,725,753 |
Rental trucks under capital leases | 163,382 | 163,382 |
Total | 8,783,385 | 8,783,385 |
Less accumulated depreciation | 6,808,275 | 6,797,970 |
Properties - net | $1,975,110 | $1,985,415 |