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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q


(Mark one)




|  |                                                                                      
|- | -------------------------------------------------------------------------------------
|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

For the quarterly period ended September 30,
2005.


OR




|  |                                                                                             
|- | --------------------------------------------------------------------------------------------
|o | 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. 0-16190


DEL TACO RESTAURANT PROPERTIES II


a California limited partnership


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|California                                                         |  | 33-0064245                                 
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification Number)
|                                                                  
|25521 Commercentre Drive, Lake Forest, California                  |  | 92630                                      
|(Address of principal executive offices)                           |  | (Zip Code)                                 

(949) 462-9300


(Registrants telephone number, including area code)


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 o


Indicate by check mark whether the registrant is an
accelerated filer (as defined in Rule 12b-2 of the Exchange
Act).  Yes o No x


Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange
Act).  Yes o No x










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DEL TACO RESTAURANT PROPERTIES II
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at September 30, 2005 (Unaudited) and December 31, 2004
    
    
    3Condensed Statements of Income for the three and nine months ended September 30, 2005 and 2004 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the nine months ended September 30, 2005 and 2004 (Unaudited)
    
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    8Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    10Item 4. Controls and Procedures
    
    
    11PART II. OTHER INFORMATIONItem 6. Exhibits and Reports on Form 8-K
    
    
    12SIGNATURE
    
    
    13EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED BALANCE SHEETS
 September 30,
    
    
    December 31,2005
    
    
    2004(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    206,662
    
    
    $
    197,784Receivable from Del Taco, Inc.
    
    
    55,975
    
    
    
    56,537Deposits
    
    
    1,120
    
    
    
    1,780Total current assets
    
    
    263,757
    
    
    
    256,101PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,806,006
    
    
    
    1,806,006Buildings and improvements
    
    
    1,238,879
    
    
    
    1,238,879Machinery and equipment
    
    
    898,950
    
    
    
    898,9503,943,835
    
    
    
    3,943,835Lessaccumulated depreciation
    
    
    1,910,166
    
    
    
    1,869,5312,033,669
    
    
    
    2,074,304$
    2,297,426
    
    
    $
    2,330,405LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    35,250
    
    
    $
    37,207Accounts payable
    
    
    11,104
    
    
    
    15,138Total current liabilities
    
    
    46,354
    
    
    
    52,345PARTNERS EQUITY:Limited partners; 27,006 units outstanding at September 30, 2005
    
    
    2,277,611
    
    
    
    2,304,328and December 31, 2004General partner-Del Taco, Inc.
    
    
    (26,539
    )
    
    
    (26,268
    )2,251,072
    
    
    
    2,278,060$
    2,297,426
    
    
    $
    2,330,405
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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004RENTAL REVENUES
    
    $
    175,543
    
    
    $
    173,189
    
    
    $
    522,254
    
    
    $
    498,226EXPENSES:General and administrative
    
    
    10,840
    
    
    
    10,745
    
    
    
    61,722
    
    
    
    59,670Depreciation
    
    
    13,545
    
    
    
    13,545
    
    
    
    40,635
    
    
    
    40,63524,385
    
    
    
    24,290
    
    
    
    102,357
    
    
    
    100,305Operating income
    
    
    151,158
    
    
    
    148,899
    
    
    
    419,897
    
    
    
    397,921OTHER INCOME:Interest
    
    
    575
    
    
    
    424
    
    
    
    1,861
    
    
    
    1,224Other
    
    
    200
    
    
    
    200
    
    
    
    1,400
    
    
    
    1,400Net income
    
    $
    151,933
    
    
    $
    149,523
    
    
    $
    423,158
    
    
    $
    400,545Net income per limited
partnership unit (note 2)
    
    $
    5.57
    
    
    $
    5.48
    
    
    $
    15.51
    
    
    $
    14.68Number of units used in computing
per unit amounts
    
    
    27,006
    
    
    
    27,006
    
    
    
    27,006
    
    
    
    27,006
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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2005
    
    
    2004CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    423,158
    
    
    $
    400,545Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    40,635
    
    
    
    40,635Changes in operating assets and liabilities:Decrease in receivable from Del Taco, Inc.
    
    
    562
    
    
    
    335Decrease (increase) in deposits
    
    
    660
    
    
    
    (145
    )(Decrease) increase in accounts payable and payable
to limited partners
    
    
    (5,991
    )
    
    
    11,090Net cash provided by operating activities
    
    
    459,024
    
    
    
    452,460CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (450,146
    )
    
    
    (423,928
    )Net increase in cash
    
    
    8,878
    
    
    
    28,532Beginning cash balance
    
    
    197,784
    
    
    
    182,997Ending cash balance
    
    $
    206,662
    
    
    $
    211,529
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DEL TACO RESTAURANT PROPERTIES II
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 SEPTEMBER 30, 2005
 (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  ALLOCATION OF NET INCOME OR LOSS PER LIMITED PARTNERSHIP UNIT
   -6-




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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 SEPTEMBER 30, 2005
 (Unaudited)
 NOTE 3  LEASING ACTIVITIES
    NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  NOTE 6  PAYABLE TO LIMITED PARTNERS
  -7-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
   Results of Operations
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Bear Valley Rd., Victorville, CA
    
    $
    32,414
    
    
    $
    32,261
    
    
    $
    95,095
    
    
    $
    91,865West Valley Blvd., Colton, CA
    
    
    39,862
    
    
    
    41,117
    
    
    
    122,716
    
    
    
    115,973Palmdale Blvd., Palmdale, CA
    
    
    22,034
    
    
    
    21,986
    
    
    
    63,877
    
    
    
    63,409DeAnza Country Shopping Center, Pedley, CA
    
    
    34,624
    
    
    
    33,260
    
    
    
    100,567
    
    
    
    96,433Varner Road, Thousand Palms, CA
    
    
    46,609
    
    
    
    44,565
    
    
    
    139,999
    
    
    
    130,546Total
    
    $
    175,543
    
    
    $
    173,189
    
    
    $
    522,254
    
    
    $
    498,226
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations -
continued
  Percentage of TotalGeneral & Administrative ExpenseThree Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Accounting fees
    
    
    54.38
    %
    
    
    57.66
    %
    
    
    69.63
    %
    
    
    67.63
    %Distribution of information
to Limited Partners
    
    
    45.62
    %
    
    
    42.34
    %
    
    
    30.37
    %
    
    
    32.37
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  -9-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
- continued
 Critical Accounting Policies and Estimates
  Property and Equipment:
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  -10-




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Item 4. Controls and Procedures
 (a)
    
    Evaluation of disclosure controls and procedures:
  (b)
    
    Changes in internal controls:
  (c)
    
    Asset-Backed issuers:
  -11-




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PART II. OTHER INFORMATION
 
  (a)
    
    Exhibits
 31.1
    
    Kevin K. Moriartys Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Robert J. Terranos Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
 (b)
    
    Reports
 None.
 -12-




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SIGNATURE
  DEL TACO RESTAURANT PROPERTIES II(a California limited partnership)RegistrantDel Taco, Inc.General PartnerDate: November 14, 2005
    
    /s/ Robert J. Terrano

Robert J. TerranoExecutive Vice President,Chief Financial Officer
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Exhibits
    
    Description31.1
    
    Kevin K. Moriartys Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Robert J. Terranos Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002