##### Table of Contents









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 June 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










---



DEL TACO RESTAURANT PROPERTIES II
  
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at June 30, 2005 and
December 31, 2004 (Unaudited)
    
    3Condensed Statements of Income for the three and six months ended
June 30, 2005 and 2004 (Unaudited)
    
    4Condensed Statements of Cash Flows for the six months ended
June 30, 2005 and 2004 (Unaudited)
    
    5Notes to Condensed Financial Statements
    
    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
  -2-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED BALANCE SHEETS
 (Unaudited)
 June 30,
    
    December 31,2005
    
    2004ASSETSCURRENT
ASSETS:Cash
    
    $
    184,030
    
    
    $
    197,784Receivable from Del Taco, Inc.
    
    
    59,332
    
    
    
    56,537Deposits
    
    
    1,340
    
    
    
    1,780Total current assets
    
    
    244,702
    
    
    
    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
    
    
    1,896,621
    
    
    
    1,869,5312,047,214
    
    
    
    2,074,304$
    2,291,916
    
    
    $
    2,330,405LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    35,441
    
    
    $
    37,207Accounts payable
    
    
    13,749
    
    
    
    15,138Total current liabilities
    
    
    49,190
    
    
    
    52,345PARTNERS EQUITY:Limited partners; 27,006 units outstanding at June 30, 2005 and December 31, 2004
    
    
    2,269,348
    
    
    
    2,304,328General partner-Del Taco, Inc.
    
    
    (26,622
    )
    
    
    (26,268
    )2,242,726
    
    
    
    2,278,060$
    2,291,916
    
    
    $
    2,330,405
  -3-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months EndedJune 30,
    
    Six Months EndedJune 30,2005
    
    2004
    
    2005
    
    2004RENTAL REVENUES
    
    $
    179,368
    
    
    $
    168,159
    
    
    $
    346,711
    
    
    $
    325,037EXPENSES:General and administrative
    
    
    12,141
    
    
    
    12,380
    
    
    
    50,881
    
    
    
    48,925Depreciation
    
    
    13,545
    
    
    
    13,545
    
    
    
    27,090
    
    
    
    27,09025,686
    
    
    
    25,925
    
    
    
    77,971
    
    
    
    76,015Operating income
    
    
    153,682
    
    
    
    142,234
    
    
    
    268,740
    
    
    
    249,022OTHER INCOME:Interest
    
    
    676
    
    
    
    424
    
    
    
    1,284
    
    
    
    800Other
    
    
    500
    
    
    
    625
    
    
    
    1,200
    
    
    
    1,200Net income
    
    $
    154,858
    
    
    $
    143,283
    
    
    $
    271,224
    
    
    $
    251,022Net income per limited
partnership unit (note 2)
    
    $
    5.68
    
    
    $
    5.25
    
    
    $
    9.94
    
    
    $
    9.20Number of units used in computing
per unit amounts
    
    
    27,006
    
    
    
    27,006
    
    
    
    27,006
    
    
    
    27,006
  -4-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Six Months EndedJune 30,2005
    
    2004CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    271,224
    
    
    $
    251,022Adjustments to reconcile net income to net cash provided by operating activities:Depreciation
    
    
    27,090
    
    
    
    27,090Changes in operating assets and liabilities:Increase in receivable from Del Taco, Inc.
    
    
    (2,795
    )
    
    
    (2,154
    )Decrease (increase) in deposits
    
    
    440
    
    
    
    (264
    )(Decrease) increase in accounts payable and payable to limited partners

    
    
    (3,155
    )
    
    
    5,608Net cash provided by operating activities
    
    
    292,804
    
    
    
    281,302CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (306,558
    )
    
    
    (270,965
    )Net (decrease) increase in cash
    
    
    (13,754
    )
    
    
    10,337Beginning cash balance
    
    
    197,784
    
    
    
    182,997Ending cash balance
    
    $
    184,030
    
    
    $
    193,334
  -5-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES II
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2005
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   -6-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES II
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 JUNE 30, 2005
 NOTE 3  LEASING ACTIVITIES
    NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  -7-




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
   Results of Operations
   Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2005
    
    2004
    
    2005
    
    2004Bear Valley Rd., Victorville, CA
    
    $
    32,519
    
    
    $
    30,402
    
    
    $
    62,682
    
    
    $
    59,605West Valley Blvd., Colton, CA
    
    
    42,957
    
    
    
    38,790
    
    
    
    82,853
    
    
    
    74,855Palmdale Blvd., Palmdale, CA
    
    
    21,903
    
    
    
    21,379
    
    
    
    41,843
    
    
    
    41,424DeAnza Country Shopping Center, Pedley, CA
    
    
    34,139
    
    
    
    32,611
    
    
    
    65,943
    
    
    
    63,172Varner Road, Thousand Palms, CA
    
    
    47,850
    
    
    
    44,977
    
    
    
    93,390
    
    
    
    85,981Total
    
    $
    179,368
    
    
    $
    168,159
    
    
    $
    346,711
    
    
    $
    325,037
  -8-




---



##### Table of Contents



Item 2.
Managements Discussion and Analysis of Financial Condition and
Results of Operations 
continued
  Percentage of TotalGeneral & Administrative ExpenseThree Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2005
    
    2004
    
    2005
    
    2004Accounting fees
    
    
    46.08
    %
    
    
    35.40
    %
    
    
    72.88
    %
    
    
    69.81
    %Distribution
of information to Limited Partners

    
    
    53.92
    %
    
    
    64.60
    %
    
    
    27.12
    %
    
    
    30.19
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Recent Accounting Pronouncements
  -9-




---



##### Table of Contents



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-




---



##### Table of Contents



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




---



##### Table of Contents



PART II. OTHER INFORMATION
 
   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
   -12-




---



##### Table of Contents



SIGNATURE
  DEL TACO RESTAURANT PROPERTIES II(a California limited partnership)
RegistrantDel Taco, Inc.General PartnerDate: August 15, 2005
    
    /s/ Robert J. TerranoRobert J. TerranoExecutive Vice President,Chief Financial Officer
 -13-




---



##### Table of Contents



EXHIBIT INDEX
 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
 -14-