DSI REALTY INCOME FUND XI (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) JUNE 30, 2000 AND DECEMBER 31, 1999 June 30, December 31, 2000 1999 ASSETS CASH AND CASH EQUIVALENTS $ 620,802 $ 399,760 PROPERTY, Net 5,242,660 5,402,056 OTHER ASSETS 39,290 39,290 TOTAL $5,902,752 $5,841,106 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 338,009 $ 315,341 PARTNERS' EQUITY (DEFICIT): General Partners (34,019) (34,409) Limited Partners 5,598,762 5,560,174 Total partners' equity 5,564,743 5,525,765 TOTAL $5,902,752 $5,841,106 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999 June 30, June 30, 2000 1999 REVENUES: Rental income $ 537,386 $ 525,569 Interest 1,908 1,523 Total revenues 539,294 527,092 EXPENSES: Operating 276,513 286,520 General and Administrative 33,113 30,972 Total expenses 309,626 317,492 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 229,668 209,600 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 0 0 NET INCOME 229,668 209,600 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 227,371 $ 207,504 General Partners 2,297 2,096 TOTAL $ 229,668 $ 209,600 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 11.37 $ 10.38 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, 2000 AND 1999 June 30, June 30, 2000 1999 REVENUES: Rental income $1,058,214 $1,049,916 Interest 3,515 3,090 Total revenues 1,061,729 1,053,006 EXPENSES: Operating 537,244 531,391 General and administrative 81,467 77,681 Total expenses 618,711 609,072 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES $ 443,018 $ 443,934 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURES 0 0 NET INCOME $ 443,018 $ 443,934 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 438,588 $ 439,495 General Partners 4,430 4,439 TOTAL $ 443,018 $ 443,934 NET INCOME PER LIMITED PARTNERSHIP UNIT $21.93 $21.97 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 20,000 20,000 See accompanying notes to financial statements (unaudited). STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 GENERAL LIMITED PARTNERS PARTNERS TOTAL 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 BALANCE AT JANUARY 1, 2000 ($34,409) $5,560,174 $5,525,765 NET INCOME 4,430 438,588 443,018 DISTRIBUTIONS (4,040) (400,000) (404,040) BALANCE AT JUNE 30, 2000 ($34,019) $5,598,762 $5,564,743 See accompanying notes to financial statements(unaudited). STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 June 30, June 30, 2000 1999 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 443,018 $ 443,934 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 159,396 159,396 Changes in assets and 	liabilities: Increase in other assets 0 (1,436) Increase in liabilities 22,668 22,995 Net cash provided by operating activities 625,082 624,889 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (404,040) (404,040) NET INCREASE IN CASH AND CASH EQUIVALENTS 221,042 220,849 CASH AND CASH EQUIVALENTS: At beginning of period 399,760 393,912 At end of period $ 620,802 $ 614,761 See accompanying notes to financial statements(unaudited). 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, 2000, and for the periods ended June 30, 2000, and 1999 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, 2000, 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, 2000, the total property cost and accumulated depreciation are as follows: Land $ 1,894,250 Buildings 6,474,340 Furniture and equipment 7,594 Total 8,376,184 Less: Accumulated Depreciation ( 3,133,524) Property - Net $ 5,242,660 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.