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, 2005
/___/ 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, 2005 AND DECEMBER 31, 2004
September 30, December 31,
2005 2004
ASSETS
CASH AND CASH EQUIVALENTS $ 644,011 $ 870,322
PROPERTY, NET 3,672,468 4,100,004
OTHER ASSETS 121,100 121,100
---------- ----------
TOTAL $4,437,579 $5,091,426
========== ==========
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES
Distribution to Partners $ 325,214 $ 325,214
Capital lease obligation 115,979 146,354
Other liabilities 574,292 623,306
---------- ----------
Total liabilities 1,015,485 1,094,874
---------- ----------
PARTNERS' EQUITY (DEFICIT):
General Partners (107,806) (102,062)
Limited Partners 3,529,900 4,098,614
---------- ----------
Total partners' equity 3,422,094 3,996,552
TOTAL $4,437,579 $5,091,426
========== ==========
See accompanying notes to financial statements.
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
September 30, September 30,
2005 2004
REVENUES:
Rental $645,997 $666,472
-------- --------
EXPENSES:
Operating 439,950 429,789
General and administrative 57,475 48,017
-------- --------
Total expenses 497,425 477,806
-------- --------
OPERATING INCOME 148,572 188,666
OTHER INCOME
Interest 486 607
-------- --------
NET INCOME $149,058 $189,273
======== ========
AGGREGATE NET INCOME ALLOCATED TO :
Limited partners $147,567 $187,380
General partners 1,491 1,893
-------- --------
TOTAL $149,058 $189,273
======== ========
NET INCOME PER
LIMITED PARTNERSHIP UNIT $4.64 $5.90
===== =====
LIMITED PARTNERSHIP
UNITS USED IN PER
UNIT CALCULATION 31,783 31,783
====== ======
See accompanying notes to financial statements.
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
September 30, September 30,
2005 2004
REVENUES:
Rental $1,937,026 $2,049,051
---------- ----------
EXPENSES:
Operating 1,333,898 1,238,392
General and adminstrative 203,530 193,896
---------- ----------
Total expenses 1,537,428 1,432,288
---------- ----------
OPERATING INCOME 399,598 616,763
OTHER INCOME
Interest 1,586 1,806
---------- ----------
NET INCOME $ 401,184 $ 618,569
========== ==========
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 397,172 $ 612,383
General Partners 4,012 6,186
---------- ----------
TOTAL $ 401,184 $ 618,569
========== ==========
NET INCOME PER
LIMITED PARTNERSHIP UNIT $12.50 $19.27
====== ======
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 31,783 31,783
====== ======
See accompanying notes to financial statements.
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2005 ($102,062) $4,098,614 $3,996,552
NET INCOME 4,012 397,172 401,184
DISTRIBUTIONS (9,756) (965,886) (975,642)
--------- ---------- ----------
BALANCE AT SEPTEMBER 30, 2005 ($107,806) $3,529,900 $3,422,094
========= ========== ==========
See accompanying notes to financial statements.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
September 30, September 30,
2005 2004
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 401,184 $ 618,569
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 427,536 403,896
Changes in assets and liabilities:
Decrease in liabilities (79,389) (21,529)
--------- ----------
Net cash provided by operating
activities 749,331 1,000,936
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (975,642) (975,642)
--------- ----------
NET (DECREASE)INCREASE IN CASH AND
CASH EQUIVALENTS (226,311) 25,294
CASH AND CASH EQUIVALENTS:
At beginning of period 870,322 921,565
---------- ----------
At end of period $ 644,011 $ 946,859
========== ==========
See accompanying notes to financial statements.
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 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 as of September 30, 2005, and for
the periods ended September 30, 2005 and 2004 is unaudited. Such financial
information includes all ad justments which are considered necessary by
the Partnership's management for a fair presentation of the results for
the periods indicated.
2. PROPERTY
The Partnership owns five mini-storage facilities. Two facilities are
located in Warren, Michigan; one facility is located in Troy, Michigan; one
facility is located in Crestwood, Illinois; and one facility is located
in Forestville, Maryland. The total cost and accumulated depreciation
of the mini-storage facilities is as follows:
September 30, 2005 December 31, 2004
Land $ 2,076,627 $ 2,076,627
Buildings 10,841,779 10,841,779
Furniture and Equipment 186,699 186,699
---------- -----------
Total 13,105,105 13,105,105
Less: Accumulated Depreciation ( 9,432,637) ( 9,005,101)
---------- -----------
Property - Net $ 3,672,468 $ 4,100,004
=========== ===========
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 cash available
for distribution on a cumulative basis, calculated as cash generated from
operations less capital expenditures.
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, 2005. The following is Management's
discussion and analysis of the Partnership's financial condition and results
of its operations.
For the three-month period ended September 30, 2005 and 2004, total revenues
decreased 3.1% from $666,472 to $645,997 and total expenses increased 4.1%
from $477,806 to $497,425 and other income decreased from $607 to $486. As
a result, net income decreased 21.2% from $189,273 to $149,058 for the three-
month period ended September 30, 2005, as compared to the same period in 2004.
The decrease in revenues can be attributed to a decrease in rental income due
to lower occupancy and unit rental rates, partially offset by an increase in
sale of locks and packing materials. Occupancy levels for the Partnership's
five mini-storage facilities averaged 76.6% for the three-month period ended
September 30, 2005, as compared to 78.4% for the same period in 2004. The
Partnership is continuing its advertising campaign to attract and keep new
tenants in its various mini-storage facilities. Operating expenses increased
approximately $10,200 (2.4%) primarily as a result of an increase in salaries
and wages, truck insurance and maintenance and depreciation expenses,
partially offset by decreases in advertising, maintenance and repair and
office supplies expenses. General and administrative expenses increased
approximately $9,500 (19.8%) primarily as a result of increase in equipment
and compute lease expense and state tax payments.
For the nine-month period ended September 30, 2005, and 2004, total revenues
decreased 5.5% from $2,049,051 to $1,937,026 and total expenses increased
7.3% from $1,432,288 to $1,537,428 and other income decreased from $1,806
to $1,586. As a result, net income decreased 35.1% from $618,569 for the
nine-month period ended September 30, 2004, to $401,184 for the same period
in 2005. The decrease in revenues was discussed above. Operating expenses
increased approximately $95,500 (7.7%) primarily due to higher legal and
professional, purchase of locks and packing materials, office supplies,
salaries and wages, truck insurance and maintenance, power and sweeping and
depreciation expenses, partially offset by a decrease in advertising and
property management fee expenses. Property management fee expense, which is
based on rental revenue, decreased as a result of the decrease in rental
revenue. General and administrative expenses increased approximately $9,600
(5.0%) primarily as a result of an increase in equipment and computer lease
expense.
The General Partners will continue their policy of funding the 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 General Partners anticipate distributions to the Limited Partners to re-
main at the current level for the foreseeable future.
Item 3. Quantative and Qualitative Disclosures About Market Risk
NONE
Item 4. CONTROLS AND PROCEDURES
Within 90 days prior to the date of this report, 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 information is communicated to the certifying
officers on a timely basis. Based on this evaluation, the Partnership con-
cluded 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 sub-
sequent 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 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, 2005.
(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, 2005 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, 2005 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
By___\s\ Robert J. Conway_______
ROBERT J. CONWAY, President
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
quarterly 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
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:
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, 2005
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
quarterly 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
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:
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, 2005
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, 2005 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, 2005
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, 2005 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, 2005