-
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 10-K
[x] Annual Report Pursuant to Section 13 or 15 (d) of the Securities and Exchange Act of 1934
For the fiscal year ended December 31, 2009
[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ________________ to _______________
Commission File No. 0-15346.
DSI
REALTY INCOME FUND X
a
California Limited Partnership
California |
|
33-0195079 |
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
6700 E. Pacific Coast Hwy., Long Beach, California 90803
(Address of principal executive offices)
Registrant’s telephone number, including area code (562) 493-8881
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:
Units of Limited Partnership Interests
Indicate
by check mark if registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. Yes [ ] No [X]
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes [ ] No [X]
Indicate
by check mark whether the registrant (l) 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 [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [X]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]
Indicate
by check mark whether the
registrant is
a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]
Indicate
by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
Certain statements contained in this discussion or elsewhere in this report may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words and phrases such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “designed to achieve”, variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future – including statements relating to rent and occupancy growth, general conditions in the geographic areas where we operate – are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict.
Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Many of the factors that may affect outcomes and results are beyond our ability to control.
PART I
ITEM l. BUSINESS
DSI Realty Income Fund X (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 16, 1985 and restated to April 15, 1986. The General Partners are DSI Properties, Inc., a California corporation and Robert J. Conway and Joseph W. Conway, brothers. The General Partners are affiliates 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, Registrant sold thirty-one thousand seven hundred eighty-three (31,783) units of limited partnership interests aggregating Fifteen Million Eight Hundred Ninety One Thousand Five Hundred Dollars ($15,891,500). 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 is engaged in the business of investing in and operating mini-storage facilities with the primary objectives of generating, for its partners, cash flow, capital appreciation of its properties, and obtaining federal income tax deductions so that during the early years of operations, all or a portion of such distributable cash may not represent taxable income to its partners. Funds obtained by Registrant during the public offering period of its units were used to acquire mini-storage facilities. Registrant does not intend to sell additional limited partnership units. The term of the Partnership is fifty years, but it is anticipated that the Partnership will sell and/or refinance its properties prior to the termination of the Partnership. The Partnership is intended to be self-liquidating and it is not intended that proceeds from the sale or refinancing of its operating properties will be reinvested. Registrant has no full time employees but shares one or more employees with other limited partnerships sponsored by the General Partners.
The General Partners are vested with authority as to the general management and supervision of the business and affairs of the Partnership. Limited Partners have no right to participate in the management or conduct of such business and affairs. An independent management company has been retained to provide day-to-day management services with respect to all of the Partnership's investment properties.
Please refer to the discussion appearing elsewhere herein under the caption Management's Discussion and Analysis of Financial Condition and Results of Operations for a detailed analysis of the results of operations of the Partnership's properties.
The business in which the Partnership is engaged is highly competitive. Each of its mini-storage facilities is located in or near a major urban area, and accordingly, competes with a significant number of individuals and organizations with respect to both the purchase and sale of its properties and for rentals. Generally, the Partnership's business is not affected by the change in seasons.
ITEM 1A. RISK FACTORS
Not required.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The
Partnership owns a fee interest in the
following
mini-storage
facilities, none of which are subject to long-term indebtedness.
Please refer to the discussion under “Business” for a
discussion of the average occupancy rate for each property owned by
the Partnership. The following table sets forth information regarding
properties owned by the Partnership.
|
|
|
2009 |
2008 |
||||
|
Parcel |
|
(Average) |
(Average) |
||||
|
Size |
Date |
Rentable |
Revenue |
|
Rentable |
Revenue |
|
Location |
(Acres) |
Opened |
Sq. Ft. |
Sq. Ft. |
Occ % |
Sq. Ft. |
Sq. Ft. |
Occ % |
Crestwood, IL |
2.96 |
Nov-87 |
49,322 |
8.53 |
76.3 |
49,322 |
9.69 |
79.8 |
Forestville, MD |
4.18 |
Aug-88 |
55,263 |
9.91 |
70.2 |
55,263 |
10.96 |
72.1 |
Troy, MI |
4.98 |
Jun-88 |
82,150 |
7.21 |
74.7 |
82,150 |
8.42 |
80.7 |
Warren, MI (Groesbeck) |
4.76 |
Jan-88 |
57,365 |
8.44 |
75.0 |
57,185 |
8.49 |
77.5 |
Warren, MI (Ryan Rd.) |
4.29 |
Sep-87 |
52,078 |
8.53 |
75.3 |
52,078 |
9.52 |
80.9 |
The Partnership is not a party to any material pending legal proceedings.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There
were no matters submitted to a vote of security holders during 2009.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market
Information
The
Partnership is a limited partnership and thus has no common stock.
There is no established trading market for limited partnership
interests in the Partnership and it is not anticipated that any such
public market will develop. The Limited Partnership Agreement
effectively prevents the transfer of Limited Partnership Interests
except under very limited circumstances. In order to transfer a
Limited Partnership Interest, a Limited Partner must obtain the
consent of the General Partners of the Partnership, which have the
absolute right to refuse any request for a transfer. In
addition, the proposed transferee must meet all applicable
suitability standards and agree to be bound by the Limited
Partnership Agreement.
Approximate Number of Security Holders
As of December 31, 2009, there were approximately 926 holders of Limited Partnership Interests.
Distributions
Average cash distributions of $6.71 per Limited Partnership Unit were declared and paid each quarter for the year ended December 31, 2009 and $7.63 per Limited Partnership Unit were declared and paid each quarter for the year ended December 31, 2008. It is the Partnership's expectation that distributions will continue to be paid in the future.
ITEM 6. SELECTED FINANCIAL DATA
Not Required.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Critical Accounting Policies
Revenue recognition - Revenue is recognized using the accrual method based on contractual amounts provided for in the lease agreements, which approximates recognition on a straight-line basis. The term of the lease agreements is usually less than one year.
RESULTS OF OPERATIONS
2009 COMPARED TO 2008
Total revenues decreased from $2,755,954 in 2008 to $2,490,168 in 2009, and total expenses decreased from $1,885,299 to $1,681,845, resulting in a decrease in income from operations from $870,655 to $808,323. Rental revenues decreased primarily as a result of decreased occupancy rates and poor economic conditions nationwide. Occupancy levels for the Partnership’s mini-storage facilities averaged 74.3% for the year 2009 as compared to 78.2% for 2008. The approximate $14,104 (1.2%) increase in operating expenses was due primarily to increase in truck lease payments, partially offset by advertising, salaries and wages expenses, and truck insurance expenses. General and administrative expenses decreased approximately $15,539 (5.2%) primarily as a result of lower office supplies and printing expense. The General Partners’ incentive management fee which is based on cash available for distribution, decreased as a result of the decrease in net cash provided by operating activities.
Operating expenses consist mainly of expenses such as yellow pages and other advertising, utilities, and maintenance, real estate taxes, salaries and wages and their related expenses. General and administrative expenses consist mainly of expenses such as legal and professional, office supplies, accounting services and computer expenses.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities decreased approximately $346,647 (32.5%) in 2009 compared to 2008 primarily due to decreases in net income and accrued management and incentive fees, and an increase in other assets.
Cash used
in investing activities, consists of acquisition of property or capital
improvements to the Partnership's mini storage facilities. There were no
material investing activities in either 2008 or 2009. The Partnership currently
has no material commitments for capital expenditures. Cash
used in financing activities, as set forth in the statements of cash
flows, has consisted solely of cash distributions to partners in 2009
and 2008 and payments on capital lease obligations in 2008.
Current
economic conditions continue to negatively impact the self storage
industry and our investment portfolio. The ongoing recession, increased government
intervention and higher taxes have all had a detrimental affect on
the performance
of all properties. Also, high unemployment rates are
affecting people’s discretionary income and their ability to
afford storage. With the
continuing crisis in the housing and lending markets, very few new facilities are being built.
We anticipate that when the
financial markets stabilize and the economy begins to grow again,
occupancies and income should rebound quickly. The
General Partners plan to continue to improve and maintain Partnership properties with
cash generated from operations. The Partnership anticipates that cash
flows generated from operations of the Partnership's rental real
estate operations will be sufficient to cover operating expenses and
distributions for the next twelve months and beyond. The
General Partners are not aware of any environmental problems
which could have a material adverse effect upon the financial
position of the Partnership. LONG-TERM
LIABILITIES, CONTRACTUAL OBLIGATIONS,
AND
OFF-BALANCE SHEET ARRANGEMENTS None. QUARTERLY
FINANCIAL INFORMATION (UNAUDITED) Summarized
quarterly financial data for the year ended December 31, 2009 was as
follows:
2009
Quarter Ended: March
31 June
30 September
30 December
31 589,535 673,561 636,501 590,571 161,874 242,202 160,374 243,873
$
5.04 $
5.00 Weighted
average number of
limited partnership 31,783 31,783 31,783 31,783 ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Not
Required. ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA DSI
REALTY INCOME FUND X INDEX
TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE FINANCIAL
STATEMENTS: Report
of Independent Registered Public Accounting Firm F-1 Balance
Sheets as of December 31, 2009 and 2008 F-2 Statements
of Income for the Years Ended December 31, 2009 and 2008 F-3
Statements
of Changes in Partners' Equity (Deficit) for the Years Ended December
31, 2009 and 2008 F-4 Statements
of Cash Flows for the Years Ended December 31, 2009 and 2008 F-5
Notes
to Financial Statements F-6
SUPPLEMENTAL
SCHEDULE: Schedule
III - Real Estate and Accumulated Depreciation as of December 31,
2009 F-9 ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
None. ITEM
9A. CONTROLS AND PROCEDURES No
response required ITEM
9A (T). CONTROLS AND PROCEDURES The
Partnership’s management, with the participation of the
principal executive officer and principal financial officer of DSI
Properties, Inc., its General Partner, who are the equivalent of the
Partnership’s principal executive officer and principal
financial officer, respectively, has evaluated the effectiveness of
the Partnership’s disclosure controls and procedures (as
defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”))
as of the end of the period covered by this report. Based on such
evaluation, the principal executive officer and principal financial
officer of the General Partner, who are the equivalent of the
Partnership’s principal executive officer and principal
financial officer, respectively, have concluded that, as of the end
of such period, the Partnership’s disclosure controls and
procedures are effective.
Management’s
Report on Internal Control Over Financial Reporting The
Partnership’s management is responsible for establishing and
maintaining adequate internal control over financial reporting.
Internal control over financial reporting is defined in Rule
13a-15(f) and 15d-15(f) under the Exchange Act as a process designed
by, or under the supervision of, the principal executive and
principal financial officers of the General Partner, who are the
equivalent of the Partnership’s principal executive officer and
principal financial officer, respectively, and effected by the
Partnership’s management and other personnel to provide
reasonable assurance regarding the reliability of financial reporting
and the preparation of consolidated financial statements for external
purposes in accordance with generally accepted accounting principles
and includes those policies and procedures that: pertain
to the maintenance of records that in reasonable detail accurately
and fairly reflect the transactions and dispositions of assets; provide
reasonable assurance that transactions are recorded as necessary to
permit preparation of consolidated financial statements in
accordance with generally accepted accounting principles, and that
receipts and expenditures are being made only in accordance with
authorizations of the Partnership’s management; and provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of assets that could
have a material effect on the consolidated financial statements. Because
of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Projections of any
evaluation of effectiveness to future periods are subject to the
risks that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate. The
Partnership's management assessed the effectiveness of the Partnership's
internal control over financial reporting as of December 31, 2009. In making
this assessment, the Partnership's management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in
Internal Control-Integrated Framework. Based on
their assessment, the Partnership's management concluded that, as of December
31, 2009, the Partnership's internal control over financial reporting was
effective. This
annual report does not include an attestation report of the
Partnership’s registered public accounting firm regarding
internal control over financial reporting. Management’s report
was not subject to the attestation by the Partnership’s
registered public accounting firm pursuant to temporary rules of the
Securities and Exchange Commission that permit the Partnership to
provide only management’s report in this annual report. Changes
in Internal Control Over Financial Reporting. There
have been no significant changes in the Partnership’s internal
control over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act) during the fourth quarter of 2009
that have materially affected, or are reasonably likely to materially
affect, the Partnership’s internal control over financial
reporting. ITEM
9B. OTHER INFORMATION None. PART
III ITEM
10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. The
Partnership has no directors or executives officers of its own.
The following biographical information is presented for the officers
of DSI Properties, Inc., a General Partner of the Partnership, as
well as Robert J. Conway and Joseph W. Conway. The General Partners
have principal responsibility for the Partnership’s affairs. DSI
Properties, Inc.
Robert
J. Conway,
75, has
been President, Chief Financial Officer and a member of the Board of
Directors of DSI Properties, Inc. since 1973.He has also been
President and a member of the Board of Directors of Diversified
Securities, Inc., since 1965. Mr. Conway is also a licensed
California real estate broker, and received a Bachelor of Science
Degree from Marquette University with majors in Corporate Finance and
Real Estate.
Joseph
W. Conway,
80, has
been Vice President, Treasurer and member of the Board of Directors
of DSI Properties, Inc. since 1973. He has also been Executive Vice
President, Treasurer and a member of the Board of Directors of
Diversified Securities, Inc. since 1965. Mr. Conway received a
Bachelor of Arts Degree from Loras College with a major in
Accounting.
Joseph
W. Stok,
86, has
been a member of the Board of Directors of DSI Properties, Inc. since
1994, a Vice President of Diversified Securities, Inc. since 1973,
and an Account Executive with Diversified Securities, Inc. since
1967.
As
the Partnership has no directors or executive officers, it has no
audit, nominating or other committees.
ITEM
11. EXECUTIVE COMPENSATION
None
of the directors or officers of the General Partners received any
direct remuneration from the Partnership during the years ended
December 31, 2009 or 2008. ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS The
following table sets forth certain information regarding the
beneficial ownership of the Partnership's limited partnership units
as of December 31, 2009 by (i) each person known to beneficially own
more than 5% of the Partnership's limited partnership units, and (ii)
each officer of the General Partners of the Partnership. Title
of Class Name
of Beneficial Owner Number
of LP Units Beneficially Held (1) Percent
of Class Limited Partnership
Interest Robert J. Conway 1,396
- Direct 4.4 Limited Partnership
Interest Joseph W. Conway 97 -
Direct Less
than 1% (1)
Unless otherwise indicated, the address for each listed director or
officer is c/o 6700 E. Pacific Coast Hwy. #150, Long Beach, CA 90803.
As used in this table, "beneficial ownership" means the
sole or shared power to vote or direct the voting or to dispose or
direct the disposition of any security.
(2)
As of December 31, 2009, no person owned more than 5% of the limited
partnership units of record, nor was any person known by the
Partnership to beneficially own more than 5% thereof. ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE The
Partnership has no employees and depends on the General Partners and
their affiliates for the management and administration of all
Partnership activities. The Partnership Agreement provides for
certain payments to affiliates for services and reimbursement of
certain expenses incurred by affiliates on behalf of the Partnership.
Under the Agreement of Limited Partnership, the General Partners are allocated
1% of the net profits or losses from operations of the Partnership. During 2009,
an aggregate of $125,280 was allocated to
the General Partners, and during 2008 an aggregate of $124,746 was
allocated to the General Partners.
In addition, under the Limited Partnership Agreement the General
Partners are entitled to receive a percentage, of any cash
distribution from the sale, other disposition, or refinancing of
properties of the Partnership, based on a formula set forth in the
Limited Partnership Agreement. As
there were no sales or refinancing of Partnership properties during
2009 or 2008, no such fees were paid during these periods. In
addition, the general partners are entitled to receive an incentive
management fee for supervising the operations of the Partnership,
equal to 9% per annum of the cash available for distribution on a
cumulative basis, calculated as cash generated from operations less
capital expenditures. During 2009 the Partnership paid the General
Partners an incentive management fee of
$75,845,
and during 2008 the Partnership paid the General Partners an
incentive management fee of
$88,195. All
of the Partnership’s properties were purchased from Dahn
Corporation ("Dahn"). Dahn is not affiliated
with the
Partnership, but is affiliated with other partnerships in which DSI
Properties, Inc. is a general partner The Partnership has entered
into management agreements with Dahn to operate its mini-storage
facilities. Each agreement provides for a management fee equal to 5%
of gross revenue from operations, defined as the entire amount of all
receipts from the renting or leasing of storage compartments and sale
of locks. The management agreements are renewable annually. During
2009 and 2008 the Partnership paid Dahn management fees of $124,731
and $137,764,
respectively. Amounts payable to Dahn at December 31, 2009 and 2008,
were $311,971 and $410,198,
respectively. None
of the General Partner's directors is “independent” under
the independence standards established by the Securities and Exchange
Commission, as all directors are employed by a General Partner. ITEM
14. PRINCIPAL ACCOUNTING FEES AND SERVICES Audit
Fees The
aggregate fees for professional services rendered by Cacciamatta
Accountancy Corporation for the audit of the Partnership's annual
financial statements and for reviews of the financial statements
included in the Partnership's Quarterly Reports on Form 10-Q for 2009
were $39,700
and
for 2008 were $49,400. Other
Fees The
Partnership did not pay Cacciamatta Accountancy Corporation any
Non-Audit-Related Fees, Tax Fees, or other fees during 2009 and 2008.
PART
IV ITEM
15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES (1)
Financial Statements See
Index to Financial Statements and Supplemental Schedule in Item 7. (2)
Financial Statement Schedules See
Index to Financial Statements and Supplemental Schedule in Item 7. (3)
Exhibits
13 Annual Report Letter
to Limited Partners
31.1 Rule
13a-14(a)/15d-14(a) Certification: Principal Executive Officer
31.2 Rule
13a-14(a)/15d-14(a) Certification: Principal Financial Officer
32.1 Section 1350
Certification: Principal Executive Officer
32.2 Section 1350
Certification: Principal Financial Officer
SIGNATURES Pursuant
to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized. DSI
REALTY INCOME FUND X,
a
California Limited Partnership /s/
ROBERT J. CONWAY By_____________________________
Dated:
March 31, 2010 ROBERT
J. CONWAY, President /s/
JOSEPH W. CONWAY By_____________________________
Dated:
March 31, 2010 JOSEPH
W. CONWAY, (Executive
Vice
President and Director) Pursuant
to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the
registrant and in the capacities and on the date indicated. DSI
REALTY INCOME FUND X,
a
California Limited Partnership /s/
ROBERT J. CONWAY By_____________________________
Dated:
March 31, 2010 ROBERT
J. CONWAY, President /s/
JOSEPH W. CONWAY By_____________________________
Dated:
March 31, 2010 JOSEPH
W. CONWAY, (Executive Vice
President and Director) Page
11 ITEM
15(1)
2009
ANNUAL REPORT TO LIMITED PARTNERS OF DSI
REALTY INCOME FUND X
Financial Statements for its fiscal year ended December 31, 2009 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To
the Partners of DSI Realty Income Fund X: We
have audited the accompanying balance sheets of DSI Realty Income
Fund X, a California Limited Partnership (the "Partnership")
as of December 31, 2009 and 2008 and the related statements of
income, changes in partners' equity (deficit), and cash flows for
each of the years in the two year period ended December 31, 2009. Our
audits also included the supplemental schedule listed in the Index at
Item 15(2). These financial statements and the supplemental schedule
are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements
and supplemental schedule based on our audits. We
conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. The Partnership is not required to have, nor were we
engaged to perform, an audit of its internal control over financial
reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's
internal control over financial reporting. Accordingly, we express no
such opinion. An
audit also includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion. In our
opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of DSI Realty Income Fund X at December 31, 2009 and 2008,
and the results of its operations and its cash flows for each of the years in
the two year
period ended December 31, 2009, in conformity with accounting principles
generally accepted in the United States of America. Also, in our opinion, the
supplemental schedule referred to above, when considered in relation to the basic financial
statements taken as a whole, presents fairly, in all material respects, the
information set forth therein. /s/
Cacciamatta Accountancy Corporation Santa
Ana, California March 31,
2009 Page
F-1 DSI
REALTY INCOME FUND X BALANCE SHEETS AS OF DECEMBER 31 2009 2008 ASSETS Cash and cash
equivalents $ 508,792 $ 656,274 Property, Net
2,085,339 2,096,342 Uncollected rental
revenue 131,559 154,591 Prepaid advertising 11,542 50,422 Other assets 56,624 56,523 TOTAL $
2,793,856 $
3,014,152 LIABILITIES AND
PARTNERS' EQUITY LIABILITIES: Distribution due to
partners (Note 4) $ 200,650 $ 240,780 Incentive
management fee liability 340,800 369,129 Property
management fee liability 311,971 410,198 Capital leases - - Deferred income 42,974 40,875 Accrued expenses 14,633 21,925 Other liabilities 208,094 203,174 Total
liabilities 1,119,122 1,286,070 PARTNERS' EQUITY
(DEFICIT) (Note 4): General partners (125,280) (124,746) Limited partners 1,800,014 1,852,816 Total partners'
equity 1,674,734 1,728,070 TOTAL $
2,793,856 $
3,014,152 The
accompanying notes are an integral part of these Financial Statements Page
F-2 DSI
REALTY INCOME FUND X STATEMENTS OF
INCOME FOR THE YEARS ENDED DECEMBER 31 2009 2008
REVENUES: Self-storage rental
income
$ 2,259,846 $ 2,517,015 Ancillary operating
revenue 229,845 238,420 Interest and other
income 477 519 Total Revenues $ 2,490,168 $ 2,755,954 EXPENSES: Depreciation 15,622 197,513 Operating 1,010,790 1,160,514 General and
administrative 285,872 301,411 Interest 5,157 (99) General
partners' incentive management fee (Note 4) 75,845 88,195 Property management
fee (Note 6) 124,731 137,764 Total Expenses
1,681,845
1,885,299 NET INCOME $
808,323 $
870,655 AGGREGATE NET
INCOME ALLOCATED TO (Note 4): Limited partners
$ 800,240
$ 861,948 General partners
8,083
8,707 TOTAL
$ 808,323
$ 870,655 Weighted
average limited partnership Units outstanding 31,783 31,873 NET INCOME PER
LIMITED PARTNERSHIP UNIT (Notes 2 and 4)
$25.18
$27.12 The
accompanying notes are an integral part of these Financial Statements Page
F-3 DSI
REALTY INCOME FUND X STATEMENTS OF
CHANGES IN PARTNERS' EQUITY (DEFICIT) General Limited Partners Partners Total BALANCE DECEMBER
31, 2007 $(123,654) $1,961,011 $1,837,357 Net income
allocation 8,707 861,948 870,655 Distributions (9,799)
(970,143)
(979,942)
BALANCE DECEMBER 31, 2008 $(124,746) $1,852,816 $1,728,070 Net income
allocation 8,083 800,240 808,323 Distributions (8,617)
(853,042)
(861,659) BALANCE DECEMBER
31, 2009
$(125,280)
$1,800,014
$1,674,734 The
accompanying notes are an integral part of these Financial Statements Page
F-4 DSI
REALTY INCOME FUND X STATEMENTS OF
CASH FLOWS 2009 2008
CASH FLOWS FROM
OPERATING ACTIVITIES: Net income
$ 808,323
$ 870,655 Adjustments to
reconcile net income to net cash provided by operating
activities: Depreciation
15,622
197,513 Changes in assets
and liabilities: Other assets
61,811
(4,064) Incentive
management fee payable to General Partners (28,329) 88,195 Property management
fees payable
(98,227)
1,124 Customer deposits
and other liabilities
(40,404)
(87,979) Net cash provided
by operating activities
718,796
1,065,443 CASH FLOWS FROM
INVESTING ACTIVITIES - Additions to
property
(4,619)
- CASH FLOWS FROM
FINANCING ACTIVITIES - Distributions to
partners
(861,659)
(979,942) Payments on capital
lease obligations - (45,099) Net cash used in
financing activities
(861,659)
(1,025,041) NET
INCREASE IN
CASH AND CASH EQUIVALENTS (147,482) 40,403 CASH AND CASH
EQUIVALENTS, BEGINNING OF YEAR 656,274 615,871 CASH AND CASH
EQUIVALENTS, END OF YEAR $ 508,792 $ 656,274 SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
- Cash paid for
interest
$ 5,157
$(99) NON
CASH INVESTING AND FINANCING
ACTIVITIES: Distribution due
partners included in partners' equity $ 200,650 $ 240,780 The
accompanying notes are an integral part of these Financial Statements Page
F-5 DSI
REALTY INCOME FUND X NOTES
TO FINANCIAL STATEMENTS 1.
GENERAL DSI
Realty Income Fund X, a California Limited Partnership (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, which were purchased for
$500 per unit. The general partners have made no capital
contributions to the Partnership and are not required to make any
capital contributions in the future. The Partnership has a maximum
life of 50 years and was formed on April 15, 1986, under the
California Uniform Limited Partnership Act for the primary purpose of
acquiring and operating real estate. The
Partnership owns five mini-storage facilities located in Ryan Road
and Groesbeck Highway, Michigan; Crestwood, Illinois; Forestville,
Maryland and Troy, Michigan. All facilities were purchased from Dahn
Corporation ("Dahn"). Dahn is not affiliated with the
Partnership. Dahn is affiliated with other partnerships in which DSI
Properties, Inc. is a general partner (see Note 6). 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash
and Cash Equivalents - The Partnership classifies its short-term
investments purchased with an original maturity of three months or
less as cash equivalents. Property
and Depreciation - Property is recorded at cost and is composed
primarily of mini-storage facilities. Depreciation is provided using
the straight-line method over an estimated useful life of 20 years
for the facilities. Building improvements are depreciated over a five
year period. Property under capital leases is amortized over the
lesser of the lives of the respective leases or the estimated useful
lives of the assets.
Income
Taxes - No provision has been made for income taxes in the
accompanying financial statements. The taxable income or loss of the
Partnership is allocated to each partner in accordance with the terms
of the Agreement of Limited Partnership. Each partner's tax status,
in turn, determines the appropriate income tax for its allocated
share of the Partnership's taxable income or loss. The net difference
between the basis of the Partnership's assets and liabilities for
federal income tax purposes and as reported for financial statement
purposes for the year ended December 31, 2009 and 2008 is $341,886
and $244,397, respectively. Revenues
- Rental revenue is recognized using the accrual method based on
contractual amounts provided for in the lease agreements, which
approximates recognition on a straight-line basis. The term of the
lease agreements is usually less than one year.
Advertising Expense - Costs related to advertising in Yellow Pages are
capitalized and amortized over 12 months. All other advertising costs are
expensed as incurred. Advertising expense for the years ended December 31, 2009
and 2008 are $104,128 and $124,967 respectively. Net
Income per Limited Partnership Unit - Net income per limited
partnership unit is computed by dividing net income allocated to the
limited partners by the weighted average number of limited
partnership units outstanding during each year. Estimates
- The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires the Partnership to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ
from those estimates. Impairment
of Long-Lived Assets - The Partnership regularly reviews long-lived
assets for impairment whenever events or changes in circumstances
indicate that the carrying amount of the asset may not be
recoverable. If the sum of the expected undiscounted future cash flow
is less than the carrying amount of the asset, the Partnership would
recognize an impairment loss to the extent the carrying value
exceeded the fair value of the property. No impairment losses were
required in 2009 or 2008. Fair
Value of Financial Instruments - For all financial instruments,
including cash and cash equivalents, other assets, distributions due
to partners, incentive management fee payable to general partners,
property management
fee payable, and customer deposits and other liabilities, carrying
values approximate fair values because of the short maturity of those
instruments. The carrying value of the capital lease obligations
approximates fair value because the terms of the instrument are
similar to terms available to the Partnership for similar types of
leasing agreements. Page
F-6 Concentrations
of Credit Risk - Financial instruments that potentially subject the
Partnership to concentrations of credit risk consist primarily of
cash and cash equivalents and rent receivables. The Partnership
places its cash and cash equivalents with high credit quality
institutions.
Recent Accounting Pronouncements In April
2009, the FASB issued ASC 825-10 (formerly FASB Staff Position No. FAS 107-1 and
APB 28-1, Interim Disclosures about Fair Value of Financial Instruments) ("ASC
825-10"), which requires that the fair value disclosures required for all financial
instruments within the scope of SFAS 107, "Disclosures about Fair Value of
Financial Instruments," be included in interim financial statements. This FSP
also requires entities to disclose the method and significant assumptions used
to estimate the fair value of financial instruments on an interim and annual
basis and to highlight any changes from prior periods. ASC 825-10 was effective
for interim periods ending after June 15, 2009, with early adoption permitted.
The adoption of ASC 825-10 did not have a material impact on the Partnership's
financial statements. 3.
PROPERTY The
total cost of property and accumulated depreciation were as follows as
of December 31:
2009
2008
Land $
2,076,627
$
2,076,627
Buildings and
improvements
10,903,101 10,898,481
Rental trucks under
capital leases 157,604
157,604
Total
13,137,332 13,132,712
Less accumulated
depreciation
(11,051,993)
(11,036,370) Property –
net
$2,085,339
$2,096,342 Depreciation
expense of $0 and $39,402 was recorded on the rental trucks
under capital leases in 2009 and 2008. 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. Page
F-7 5.
BUSINESS SEGMENT INFORMATION The
following disclosure about segment reporting of the Partnership is made in
accordance with the requirements of ASC 280-10 (formerly SFAS No. 131,
"Disclosures About Segments of an Enterprise and Related Information") The
Partnership operates in a single segment; storage facility operations, under
which the Partnership rents its storage facilities to its customers on a need
basis and charges rent on a predetermined rate. 6.
RELATED-PARTY TRANSACTIONS The
partnership has entered into management agreements with Dahn to
operate its mini-storage facilities. The management agreements
provide 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 $124,731 and $137,764 for the years ended
December 31, 2009 and 2008, respectively. Amounts payable to Dahn at
December 31, 2009 and 2008, were $311,971 and $410,198, respectively. In
2004, the Partnership entered into truck lease agreements with KMD
Trucks, LLC ("KMD"). The president of Dahn, Brian Dahn, is
also a member of KMD. The truck lease agreements expired as of
December 31, 2008. Page
F-8 ITEM
15(2) DSI
REALTY INCOME FUND X SCHEDULE
III REAL
ESTATE AND ACCUMULATED DEPRECIATION Initial
Cost Gross
Carrying Amount at Description Acqui-sition
Date Land
Buildings
and Improve-ments
Costs
Subse-quent to Acqui-sition Land Buildings
and Improve-ments Total Accumulated
Depreciation Ryan
Rd, Warren, MI 02/87 $264,544 $1,715,183 $11,230 $264,544 $1,726,413 $1,990,957 (1,726,395) Crestwood,
IL 04/87 205,960 1,631,179 13,656 205,960 1,644,835 1,850,795 (1,645,342) Groesbeck
Hwy., Warren, MI 04/87 314,517 1,760,657
88,470 314,517 1,849,127 2,163,644 (1,848,894) Forestville,
MD 08/87 755,000 2,278,110 20,083 755,000 2,298,193 3,053,193 (2,298,965) Troy,
MI 06/88 536,606 3,152,736
231,798 536,606 3,384,534 3,921,140 (3,374,793) $2,076,627 $10,537,865 $365,236 $2,076,627 10,903,101 12,979,728 (10,894,389) Notes:
Depreciation
expense is computed using the straight-line method over an estimated
useful life of 20 years for the buildings. There
are no encumbrances.
Page
F-9 EXHIBIT
13
2009
ANNUAL REPORT TO LIMITED PARTNERS OF DSI
REALTY INCOME FUND X Dear
Limited Partner: This
report contains the Partnership's balance sheets as of December 31,
2009, and the related statements of income, changes in partners'
equity (deficit) and cash flows for each of the two years ended
December 31, 2009 accompanied by a report of Independent Registered
Public Accounting firm. The Partnership's properties were each
purchased for all cash and funded solely from subscriptions for
limited partnership interests without the use of mortgage financing. Your
attention is directed to the section entitled Management's Discussion
and Analysis of Financial Condition and Results of Operations for the
General Partners' discussion and analysis of the financial statements
and operations of the Partnership. Average
occupancy levels and revenue per square foot for each of the
Partnership's properties for the years ended December 31, 2009 and
2008 were as follows: 2009 2008 Parcel (Average) (Average) Size Date
Rentable
Revenue
Rentable
Revenue (Acres) Opened
Sq.
Ft.
Sq.
Ft.
Occ
%
Sq.
Ft.
Sq.
Ft.
Occ
% 2.96 Nov-87 49,322
8.53
76.3 49,322 9.69 79.8 4.18 Aug-88 55,263
9.91 70.2 55,263 10.96 72.1 4.98 Jun-88 82,150
7.21
74.7 82,150 8.42 80.7 4.76 Jan-88 57,365 8.44 75.0 57,185 8.49 77.5 4.29 Sep-87 52,078
8.53
75.3 52,078 9.52 80.9
Very
truly yours, DSI
REALTY INCOME FUND X By:
DSI Properties, Inc. /s/
ROBERT J. CONWAY By_______________________________ ROBERT
J. CONWAY, President
EXHIBIT
31.1 I,
Robert J. Conway, certify that: 1.
I have reviewed this annual report on Form 10-K of DSI Realty Income
Fund X; 2.
Based on my knowledge, this 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
covered by this report. 3.
Based on my knowledge, the financial statements, and other financial
information included in this 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
report. 4.
The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)), for the registrant and have: a)
designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, 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 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;
c)
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
d)
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 an annual report) that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting. 5.
The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of
the registrant's board of directors (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 adversely affect the registrant's ability to
record, process, 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 internal
control over financial reporting. Date:
March 31, 2010 /s/
ROBERT J. CONWAY _______________________________
Robert
J. Conway
EXHIBIT
31.2 I,
Richard P. Conway, certify that: 1.
I have reviewed this annual report on Form 10-K of DSI Realty Income
Fund XI; 2.
Based on my knowledge, this 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
covered by this report. 3.
Based on my knowledge, the financial statements, and other financial
information included in this 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
report. 4.
The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)), for the registrant and have: a)
designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, 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 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;
c)
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
d)
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 an annual report) that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting. 5.
The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of
the registrant's board of directors (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 adversely affect the registrant's ability to
record, process, 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 internal
control over financial reporting. Date:
March 31, 2010 /s/
RICHARD P. CONWAY __________________________________
Richard
P. Conway
EXHIBIT
32.1 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 Annual Report of DSI REALTY INCOME FUND X (the
"Partnership") on Form 10-K for the period ending December
31, 2009 as filed with the Securities and Exchange Commission on the
date hereof (the "Report"), I, Robert J. Conway, President
of DSI Properties, Inc., General Partner of the Partnership, and
performing the functions of 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. /s/
ROBERT J. CONWAY ___________________________________
Robert
J. Conway
March 31, 2010
EXHIBIT
32.2 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 Annual Report of DSI
REALTY INCOME FUND X (the
"Partnership") on Form 10-K for the period ending December
31, 2009 as filed with the Securities and Exchange Commission on the
date hereof (the "Report"), I, Richard P. Conway, Senior
Vice President of DSI Properties, Inc., General Partner of the
Partnership, and performing the functions of chief financial 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. /s/
RICHARD P. CONWAY __________________________________
Richard
P. Conway
March 31, 2010
Total revenues
Net income
Net
income per limited partnership unit
$
7.54
$
7.85
units outstanding
(A
California Real Estate Limited Partnership)
by:
DSI Properties, Inc., a California Corporation,
as
General Partner
(Chief
Executive Officer, Chief Financial Officer, and Director)
by:
DSI Properties, Inc., a California corporation,
as General
Partner
(Chief
Executive Officer, Chief Financial Officer, and Director)
(A
California Real Estate Limited Partnership)
(A
California Real Estate Limited Partnership)
(A
California Real Estate Limited Partnership)
(A
California Real Estate Limited Partnership)
FOR THE YEARS ENDED
DECEMBER 31
(A
California Real Estate Limited Partnership)
DECEMBER 31, 2009
In May 2009, the FASB issued ASC 855-10 (formerly Statement No. 165, Subsequent
Events) ("ASC 855-10"). ASC 855-10 establishes general standards of accounting for and
disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. In accordance
with this Statement, entities should apply the requirements to interim or annual
financial periods ending after June 15, 2009. The adoption of this statement
did not have a material impact on the Partnership's financial statements.
In June 2009, the FASB approved its Accounting Standards Codification, or
Codification, as the single source of authoritative United States accounting and
reporting standards applicable for all non-governmental entities, with the
exception of the SEC and its staff. The Codification, which changes the
referencing of financial standards, is effective for interim or annual financial
periods ending after September 15, 2009. Therefore, starting from the third
quarter of fiscal year 2009, all references made to US GAAP will use the new
Codification numbering system prescribed by the FASB. As the Codification is
not intended to change or alter existing US GAAP, it did not have any impact on
the Partnership's financial statements.
As a result of the Partnership's implementation of the Codification during the
year ended December 31, 2009, previous references to new accounting
standards and literature are no longer applicable. In the current
financial statements, the Partnership will provide reference to both new and old
guidance to assist in understanding the impact of recently adopted accounting
literature, particularly for guidance adopted since the beginning of the current
fiscal year but prior to the Codification.
In August 2009, the FASB issued Accounting Standards Update No. 2009-05 ("ASU
2009-05"), "Fair Value Measurements and Disclosures (Topic 820) - Measuring
Liabilities at Fair Value." ASU 2009-05 amends Subtopic 820-10, "Fair Value
Measurements and Disclosures - Overall," and provides clarification for the fair
value measurement of liabilities. ASU 2009-05 is effective for the first
reporting period including interim period beginning after issuance. The
Partnership does not expect the adoption of ASU 2009-05 to have a material
impact on its financial statements.
(A
California Real Estate Limited Partnership)
As of December 31, 2009
December 31, 2009
Location
Crestwood,
IL
Forestville,
MD
Troy, MI
Warren, MI
(Groesbeck)
Warren, MI
(Ryan Rd.)
We
will keep you informed of the activities of your Fund as they
develop. If you have any questions, please contact us at your
convenience at (562) 493-3022. If you would like a copy of the
Partnership's Annual Report on Form 10-K for the year ended December
31, 2009, which was filed with the Securities and Exchange Commission
(which report includes the enclosed Financial Statements), we will
forward a copy of the report to you upon written request.
Rule
13a-14(a)/15d-14(a) Certification
President
of DSI Properties, Inc., General Partner (chief executive officer)
Rule
13a-14(a)/15d-14(a) Certification
Senior
Vice President of DSI Properties, Inc., General Partner (chief
financial officer)
President
of DSI Properties, Inc., General Partner (chief executive officer)
Senior
Vice President of DSI Properties, Inc., General Partner (chief
financial officer)