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 March 31, 2002
/___/ 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 March 31, 2002 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 March 31, 2002.
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 March 31, 2002.
(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: April 26, 2002 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: April 26, 2002 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
April 26, 2002
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 March 31, 2002. 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 March 31, 2002 and 2001, total revenues
increased 7.1% from $587,421 to $629,223, total expenses increased 9.8%
from $302,878 to $332,459 and other income decreased from $1,145 to $250.
As a result, net income increased 4.0% to $297,014 for the three-month
period ended March 31, 2002, from $285,688 for the same period in 2001.
Rental revenue increased as a result of higher occupancy and unit rental
rates. Occupancy levels for the Partnership's four mini-storage facilities
averaged 87.9% for the three month period ended March 31, 2002 as compared
to 85.6% for the same period in 2001. The Partnership is continuing its
marketing efforts to attract and keep new tenants in its various mini-storage
facilities. Operating expenses increased approximately $28,000 (10.8%)
primarily as a result of increases in maintenance and repair, property
management fees and workers compensation insurance expenses partially off-
set by decreases in advertising and power and sweeping expenses. Property
management fees, which are based on rental revenue, increased as a result
of the increase in rental revenue. General and administrative expenses
remained constant.
On April 5, 2002, the General Partners received a copy of a hostile tender
offer from MacKenzie Patterson, Inc. and associated corporations and limited
partnerships to purchase all of the units in the Partnership. The General
Partners have determined that the hostile tender offer is not in the best
interests of the Limited Partners, that the tender offer is grossly inadequate
given the performance history of the Limited Partnership and the inherent
value of the units, and recommend that the Limited Partners reject the hostile
tender offer and not tender their units pursuant thereto.
The General Partners plan to 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.
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)
MARCH 31, 2002 AND DECEMBER 31, 2001
March 31, December 31,
2002 2001
ASSETS
CASH AND CASH EQUIVALENTS $ 588,858 $ 451,762
PROPERTY,NET 4,727,346 4,790,794
OTHER ASSETS 51,241 51,241
TOTAL $5,367,445 $5,293,797
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 314,195 $ 335,541
PARTNERS' EQUITY(DEFICIT):
General Partners (39,134) (40,084)
Limited Partners 5,092,384 4,998,340
Total partners' equity 5,053,250 4,958,256
TOTAL $5,367,445 $5,293,797
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
March 31, March 31,
2002 2001
REVENUES:
Rental Income $ 629,223 $ 587,421
EXPENSES:
Operating 286,353 258,344
General and administrative 46,106 44,534
Total expenses 332,459 302,878
OPERATING INCOME 296,764 284,543
OTHER INCOME
Interest 250 1,145
INCOME BEFORE MINORITY
INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURE 297,014 285,688
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE 0 0
NET INCOME $ 297,014 $ 285,688
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 294,044 $ 282,831
General partners 2,970 2,857
TOTAL $ 297,014 $ 285,688
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 14.70 $ 14.14
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 (DEFICIT)(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2002
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2002 ($40,084) $4,998,340 $4,958,256
NET INCOME 2,970 294,044 297,014
DISTRIBUTIONS (2,020) (200,000) (202,020)
BALANCE AT MARCH 31, 2002 ($39,134) $5,092,384 $5,053,250
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
March 31, March 31,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 297,014 $ 285,688
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 79,698 79,698
Changes in assets and
liabilities:
(Decrease)increase in liabilities (21,346) 31,303
Net cash provided by
operating activities 355,366 396,689
CASH FLOWS FROM INVESTING ACTIVIIES
Additions to property (16,250)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (202,020) (202,020)
NET INCREASE CASH AND
CASH EQUIVALENTS 137,096 194,669
CASH AND CASH EQUIVALENTS:
At beginning of period 451,762 362,863
At end of period $ 588,858 $ 557,532
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 March 31, 2002, and for the
periods ended March 31, 2002, and 2001 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
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 Bloomingdale, Illinois; and a 75% interest in an
operating mini-storage in Sterling Heights, Michigan.
As of March 31, 2002, the total property cost and accumulated depreciation
are as follows:
Land $ 1,894,250
Buildings 6,541,922
Furniture and equipment 7,594
Total 8,443,766
Less: Accumulated Depreciation ( 3,716,420)
Property - Net $ 4,727,346
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.