10-Q 1 dvi301.txt 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, 2001. /___/ Transition report pursuant to Section 13 or 15(d) of the Securities Act of 1934 for the transition period from ______________ to ________________. Commission File Number 2-68926 DSI REALTY INCOME FUND VI, A California Limited Partnership (Exact name of registrant as specified in its charter) California_______________________________________95-3633566 (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, 2001 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, 2001. 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, 2001. (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 27, 2001 DSI REALTY INCOME FUND VI 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 27, 2001 DSI REALTY INCOME FUND VI 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 27, 2001 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 March 31, 2001. 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, 2001 and 2000, total revenues increased 5.0% from $753,692 to $791,400, total expenses decreased 2.6% from $430,140 to $418,921 and other icome decreased from $2,465 to $2,016. As a result, net income increased 14.9% from $326,017 for the three-month period ended March 31, 2000, to $374,495 for the same period in 2001. 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 Partner- ship's six mini-storage facilities averaged 86.5% for the three-month period ended March 31, 2001, compared to 84.6% for the same period in 2000. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses decreased approximately $10,600 (3.0%) primarily due to decreases in yellow pages advertising costs and maintenance and repair expense, partially offset by increases in salaries and wages and property management fee 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 relatively constant as an increase in incentive management fees was offset by decreases in legal and professional and equipment and computer lease expenses. Incentive management fees, which are based on cash available for distribution increased as a result of the increase in net income. 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 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 DSI REALTY INCOME FUND VI (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED), March 31, 2001 AND DECEMBER 31, 2000
March 31, December 31, 2001 2000 ASSETS CASH AND CASH EQUIVALENTS $ 748,366 $ 537,423 PROPERTY,NET 2,650,346 2,755,151 OTHER ASSETS 80,379 80,379 TOTAL $3,479,091 $3,372,953 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $401,701 $400,138 PARTNERS' EQUITY (DEFICIT): General Partners (62,511) (63,557) Limited Partners 3,139,901 3,036,372 Total partners' equity 3,077,390 2,972,815 TOTAL $3,479,091 $3,372,953 See accompanying notes to financial statements (unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED March 31, 2001 AND 2000 March 31, March 31, 2001 2000 REVENUES: Rental $791,400 $753,692 EXPENSES: Operating 339,357 349,953 General and administrative 79,564 80,187 Total expenses 418,921 430,140 OPERATING INCOME $372,479 $323,552 OTHER INCOME Interest 2,016 2,465 NET INCOME 374,495 326,017 AGGREGATE NET INCOME ALLOCATED TO : Limited partners $370,750 $322,757 General partners 3,745 3,260 TOTAL $374,495 $326,017 NET INCOME PER LIMITED PARTNERSHIP UNIT $15.61 $13.59 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 23,753 23,753 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED) FOR THE THREE MONTHS ENDED March 31, 2001 AND 2000
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2000 ($58,996) $3,488,022 $3,429,026 NET INCOME 3,260 322,757 326,017 DISTRIBUTIONS (2,699) (267,221) (269,920) BALANCE AT MARCH 31, 2000 ($58,435) $3,543,558 $3,485,123 BALANCE AT JANUARY 1, 2001 ($63,557) $3,036,372 $2,972,815 NET INCOME 3,745 370,750 374,495 DISTRIBUTIONS (2,699) (267,221) (269,920) BALANCE AT MARCH 31, 2001 ($62,511) $3,139,901 $3,077,390 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
March 31, March 31, 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 374,495 $ 326,017 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 104,805 104,805 Changes in assets and liabilities: Decrease in other assets 0 (2) Increase in liabilities 1,563 13,258 Net cash provided by operating activities 480,863 444,078 CASH FLOWS FROM FINANCING ACTIVITIES- Distributions to partners (269,920) (269,920) NET INCREASE IN CASH AND CASH EQUIVALENTS 210,943 174,158 CASH AND CASH EQUIVALENTS: At beginning of period 537,423 559,869 At end of period $ 748,366 $ 734,027 See accompanying notes to financial statements (unaudited).
DSI REALTY INCOME FUND VI (A California Real Estate Limited Partnership) NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. GENERAL DSI Realty Income Fund VI (the "Partnership"), a limited partnership, has two general partners (DSI Properties, Inc., and Diversified Investors Agency) and limited partners owning 23,753 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, 2001, and for the periods ended March 31, 2001 and 2000, 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 Properties owned by the Partnership are all mini-storage facilities. Depreciation is calculated using the straight line method over the estimated useful life of 20 years. The total cost of property and accumulated depreciation at March 31, 2001, is as follows: Land $ 1,759,000 Buildings 8,538,025 Furniture and Equipment 38,710 Total 10,335,735 Less: Accumulated Depreciation ( 7,685,389) Property - Net $ 2,650,346
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.