EX-20 2 0002.txt July 31, 2000 QUARTERLY REPORT TO THE LIMITED PARTNERS OF DSI REALTY INCOME FUND VI DEAR LIMITED PARTNERS: We are pleased to enclose the Partnership's unaudited financial statements for the period ended June 30, 2000. 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 June 30, 2000, and 1999, total revenues increased 7.2% from $708,947 to $759,830 and total expenses increased 1.0% from $439,887 to $444,089. As a result, net income increased 17.3% from $269,060 for the three-month period ended June 30, 1999, to $315,741 for the same period in 2000. The revenue increase can be attributed to an increase in rental income as a result of higher occupancy and unit rental rates. Occupancy levels for the Partnership's six mini-storage facilities averaged 88.0% for the three-month period ended June 30, 2000, compared to 84.3% for the same period in 1999. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses decreased approximately $11,600 (3.2%) primarily due to a decrease in salaries and wages expense, partially offset by increases in yellow pages advertising costs and property management fees. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. General and administrative expenses increased approximately $15,800 (20.9%) primarily as a result of increases in incentive management fees, legal and professional and Colorado state tax expenses. Incentive management fees, which are based on cash available for distribution, increased as a result of the increase in net income. For the six month periods ended June 30, 2000, and 1999, total revenues increased 7.5% for $1,409,915 to $1,515,987 and total expenses increased 2.8% from $850,248 to $874,229. As a result, net income increased 14.7% from $559,667 for the six months ended June 30, 1999, to $641,758 for the same period in 2000. The reason for the increase in revenues is the same as discussed above for the three-month period. Operating expenses increased approximately $4,200 (0.6%) primarily due to increases in yellow pages advertising costs, maintenance and repair and property management fee expenses, partially offset by decreases in salaries and wages and security expenses. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. General and administrative expenses increased approximately $19,800 (13.0%) primarily as a result of increases in incentive management fees, legal and professional, Colorado state taxes and equipment and computer lease expenses. The reason for the increase in incentive management fees is the same as discussed above. The General Partners plan to continue their policy of funding improvements and maintenance of Partnership properties with cash generated from operations. The Partnership's resources appear to be adequate to meet its needs. The General Partners anticipate distributions to the Limited Partners to remain at the current level for the foreseeable future. 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 VI, P.O. Box 357, Long Beach, California 90801. Very truly yours, DSI Realty Income Fund VI By: DSI Properties, Inc., as General Partner By___\s\ Robert J. Conway_______ ROBERT J. CONWAY, President