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, 2006
/___/ Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934
for the transition period from ______________ to ________________.
Commission File Number 0-15346
DSI REALTY INCOME FUND X, A California Limited Partnership
(Exact name of registrant as specified in its charter)
California_______________________________________33-0195079
(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.
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
BALANCE SHEETS (UNAUDITED)
SEPTEMBER 30, 2006 AND DECEMBER 31, 2005
September 30, December 31,
2006 2005
ASSETS
CASH AND CASH EQUIVALENTS $ 538,410 $ 657,642
PROPERTY, NET 3,071,449 3,508,877
OTHER ASSETS 121,856 121,856
---------- ----------
TOTAL $3,731,715 $4,288,375
========== ==========
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES
Distribution to Partners $321,041 $321,041
Capital lease obligation 88,416 113,747
Other liabilities 775,512 700,697
-------- --------
Total liabilities 1,184,969 1,135,485
---------- ----------
PARTNERS' EQUITY (DEFICIT):
General Partners (116,559) (110,498)
Limited Partners 2,663,305 3,263,388
---------- ----------
Total partners' equity 2,546,746 3,152,890
---------- ----------
TOTAL $3,731,715 $4,288,375
========== ==========
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
September 30, September 30,
2006 2005
REVENUES:
Rental $708,222 $645,997
-------- --------
EXPENSES:
Operating 503,637 439,950
General and administrative 52,152 57,475
-------- --------
Total expenses 555,789 497,425
-------- --------
OPERATING INCOME 152,433 148,572
OTHER INCOME
Interest 186 486
-------- --------
NET INCOME $152,619 $149,058
======== ========
AGGREGATE NET INCOME ALLOCATED TO :
Limited partners $151,093 $147,567
General partners 1,526 1,491
-------- --------
TOTAL $152,619 $149,058
======== ========
NET INCOME PER
LIMITED PARTNERSHIP UNIT $ 4.75 $ 4.64
====== ======
LIMITED PARTNERSHIP
UNITS USED IN PER
UNIT CALCULATION 31,783 31,783
====== ======
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
September 30, September 30,
2006 2005
REVENUES:
Rental $2,020,812 $1,937,026
---------- ----------
EXPENSES:
Operating 1,465,909 1,333,898
General and administrative 198,625 203,530
---------- ----------
Total expenses 1,664,534 1,537,428
---------- ----------
OPERATING INCOME 356,278 399,598
OTHER INCOME
Interest 698 1,586
---------- ----------
NET INCOME $ 356,976 $ 401,184
========== ==========
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 353,406 $ 397,172
General Partners 3,570 4,012
---------- ----------
TOTAL $ 356,976 $ 401,184
========== ==========
NET INCOME PER
LIMITED PARTNERSHIP UNIT $11.12 $12.50
====== ======
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 31,783 31,783
====== ======
See accompanying notes to financial statements (unaudited).
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2006 ($110,498) $3,263,388 $3,152,890
NET INCOME 3,570 353,406 356,976
DISTRIBUTIONS (9,631) (953,489) (963,120)
--------- ---------- ----------
BALANCE AT SEPTEMBER 30, 2006 ($116,559) $2,663,305 $2,546,746
========= ========== ==========
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
September 30, September 30,
2006 2005
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 356,976 $ 401,184
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 437,428 427,536
Changes in assets and liabilities:
Increase(decrease) in
other liabilities 74,815 (79,389)
--------- ---------
Net cash provided by
operating activities 869,219 749,331
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (963,120) (975,642)
Payments on capital
lease obligations (25,331)
--------- ---------
Net cash used in
financing activities (988,451) (975,642)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (119,232) (226,311)
CASH AND CASH EQUIVALENTS:
At beginning of period 657,642 870,322
--------- ---------
At end of period $ 538,410 $ 644,011
========= =========
See accompanying notes to financial statements(unaudited).
DSI REALTY INCOME FUND X
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
DSI Realty Income Fund X (the "Partnership") has three general partners
(DSI Properties, Inc., Robert J. Conway and Joseph W. Conway) and limited
partners owning 31,783 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 Partnership has acquired five mini-storage properties, two of which
are located in Warren, Michigan; one in Crestwood, Illinois; one in Troy,
Michigan; and one in Forestville, Maryland. The facilities were acquired
from Dahn Corporation ("Dahn"). Dahn is not affiliated with the
Partnership. Dahn is affiliated with other partnerships in which DSI
Properties, Inc., Robert J. Conway and Joseph W. Conway are the general
partners. The mini-storage facilities are operated for the Partnership
by Dahn under various agreements which are subject to renewal annually.
Under the terms of the agreements, the Partnership is required to pay
Dahn a property management fee equal to 5% of gross revenue from oper-
ations, defined as the entire amount of all receipts for the renting or
leasing of storage compartments and sale of locks.
The accompanying financial information 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
Properties owned by the Partnership are all mini-storage facilities.
Depreciation is calculated using the straight line method over the estimated
useful life of 20 years. The total cost of property and accumulated
depreciation is as follows:
September 30, December 31,
2006 2005
Land $ 2,076,627 $ 2,076,627
Buildings and Improvements 10,884,935 10,884,935
Rental trucks
under capital leases 157,604 157,604
----------- -----------
Total 13,119,166 13,119,166
Less: Accumulated Depreciation (10,047,717) ( 9,610,289)
----------- -----------
Property - Net $ 3,071,449 $ 3,508,877
=========== ===========
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.
4. ALLOCATION OF PROFITS AND LOSSES AND GENERAL PARTNERS' INCENTIVE
MANAGEMENT FEE
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 Partnership
distributions made from cash available for distribution, calculated as
cash generated from operations less capital expenditures, and the payment
of such fee is subordinated to a cumulative return to the limited partners
for 8.1% of the offering proceeds.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
We are pleased to enclose the Partnership's unaudited financial statements
for the period ended September 30, 2006. 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, 2006 and 2005, total revenues
increased 9.6% from $645,997 to $708,222 and total expenses increased 11.7%
from $497,425 to $555,789 and other income decreased from $486 to $186. As
a result, net income increased 2.4% from $149,058 to $152,619 for the three-
month period ended September 30, 2006, as compared to the same period in 2005.
The increase in revenues can be attributed to an increase in rental income
due to higher occupancy rates. Occupancy levels for the Partnership's five
mini-storage facilities averaged 81.9% for the three-month period ended
September 30, 2006, as compared to 76.6% for the same period in 2005. The
Partnership is continuing its advertising campaign to attract and keep new
tenants in it various mini-storage facilities. Operating expenses increased
approximately $63,700 (14.5%) primarily as a result of an increase in adver-
tising, legal, maintenance and repair, real estate tax and salaries and wages
expenses, partially offset by a decrease in office supplies and travel expenses.
General and administrative expenses decreased approximately $5,300 (9.3%) pri-
marily as a result of decreases in equipment and computer lease expense and
state tax payments, partially offset by an increase in legal and professional
expense.
For the nine-month periods ended September 30, 2006 and 2005, total revenues
increased 4.3% from $1,937,026 to $2,020,812 and total expenses increased
8.3% from $1,537,428 to $1,664,534 and other income decreased from $1,586
to $698. As a result, net income decreased 11.0% from $401,184 for the nine-
month period ended September 30, 2005, to $356,976 for the same period in
2006. The increase in revenues was discussed above. Operating expenses in-
creased approximately $132,000 (9.9%) primarily due to higher advertising,
legal, repairs and maintenance, real estate tax, salaries and wages and de-
preciation expenses, partially offset by decreases in office supplies and
power and sweeping expenses. General and administrative expenses decreased
approximately $4,900 (2.4%) for the reasons discussed above.
The General Partners will continue their policy of funding the continuing
improvement and maintenance of Partnership properties with cash generated
from operations. The Partnership's financial resources appear to be adequate
to meet its needs.
Item 3. Quantative and Qualitive Disclosures About Market Risk
NONE
Item 4. CONTROLS AND PROCEDURES
The Partnership evaluated the effectiveness of its disclosure controls and
procedures. This evaluation was performed by the Partnership's Controller
with the assistance of the Partnership's President and the Chief Executive
Officer. These disclosure controls and procedures are designed to ensure
that the information required to be disclosed by the Partnership in its
periodic reports filed with the Securities and Exchange Commission (the
Commission) is recorded, processed, summarized and reported, within the time
periods specified by the Commission's rules and forms, and that the inform-
ation is communicated to the certifying officers on a timely basis. Based on
this evaluation, the Partnership concluded that its disclosure controls and
procedures were effective. There have been no significant changes in the
Partnership's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Registrant is not a party to any material pending legal proceedings.
Item 1A. Risk Factors
Please refer to the risk factors disclosed by the partnership in
response to Item 1A, part I of the Form 10-K filed on March 27,
2006. There has been no material change to the risk factors
disclosed therein.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
NONE
Item 3. Defaults Upon Senior Securities
NONE
Item 4. Submission of Matters to a Vote of Security Holders
NONE
Item 5. Other Information
NONE
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, 2006.
(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, 2006 DSI REALTY INCOME FUND X
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, 2006 DSI REALTY INCOME FUND X
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
CERTIFICATIONS
I, Robert J. Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund X;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period cover-
ed by this quarterly report.
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15e and 15d-15e) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our super-
vision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this
annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures as of the end
of the period covered by this report based on such evaluation; and
c) disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of our annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation of internal control over financial reporting,
to the registrant's auditors and general partners (or persons performing
the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to affect the registrant's ability to record, pro-
cess, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's in-
ternal controls over financial reporting.
Date: October 31, 2006
Robert J. Conway
Chief Executive Officer
CERTIFICATIONS
I, Richard P. Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund X;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period cover-
ed by this quarterly report.
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15e and 15d-15e) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our super-
vision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this
annual report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures as of the end
of the period covered by this report based on such evaluation; and
c) disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of our annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation of internal control over financial reporting,
to the registrant's auditors and general partners (or persons performing
the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to affect the registrant's ability to record, pro-
cess, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's in-
ternal controls over financial reporting.
Date: October 31, 2006
Richard P. Conway
Vice President
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund X (the
"Partnership") on Form 10-Q for the period ending September 30, 2006 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Robert J. Conway, Chief Executive Officer of the Partnership, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
Robert J. Conway
Chief Executive Officer
October 31, 2006
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund X (the
"Partnership") on Form 10-Q for the period ending Septenber 30, 2006 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Richard P. Conway, Vice President of the Corporate General Partner, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
Richard P. Conway
Vice President
October 31, 2006