-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, URrF5RaHyi6r0guo8RzXDEP/edSTlZYuOz8gxfSPxENC1FvbLzp8iasR3HiyVAYl uFYkbanGKIZqGVNeOBhb9g== 0000318835-02-000014.txt : 20020515 0000318835-02-000014.hdr.sgml : 20020515 20020515163629 ACCESSION NUMBER: 0000318835-02-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DSI REALTY INCOME FUND VI CENTRAL INDEX KEY: 0000318835 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953633566 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-68926 FILM NUMBER: 02653047 BUSINESS ADDRESS: STREET 1: 6700 E. PACIFIC COAST HWY STREET 2: SUITE 150 CITY: LONG BEACH STATE: CA ZIP: 90803 BUSINESS PHONE: 562 493-8881 MAIL ADDRESS: STREET 1: P.O. BOX 357 CITY: LONG BEACH STATE: CA ZIP: 90801 FORMER COMPANY: FORMER CONFORMED NAME: DSI REALTY INCOME FUND 81-I DATE OF NAME CHANGE: 19870812 10-Q 1 dvi302.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, 2002. /___/ 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, 2002 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, 2002. 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, 2002. (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 26, 2002 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 26, 2002 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 26, 2002 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, 2002. 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, 2002 and 2001, total revenues decreased 7.1% from $791,400 to $735,362, total expenses increased 5.3% from $418,921 to $441,175 and other income decreased from $2,016 to $337. As a result, net income decreased 21.4% from $374,495 for the three-month period ended March 31, 2001, to $294,524 for the same period in 2002. The revenue decrease can be attributed to a decrease in rental income as a result of lower occupancy and unit rental rates. Occupancy levels for the Partner- ship's six mini-storage facilities averaged 84.7% for the three-month period ended March 31, 2002, compared to 86.5% for the same period in 2001. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses increased approximately $26,600 (7.8%) primarily due to increases in depreciation, office supplies, salaries and wages and workers compensation insurance expenses, partially offset by a decrease in property management fee expense. Property management fees, which are based on rental revenue, decreased as a result of the increase in rental revenue. General and administrative expenses decreased approximately $4,400 (5.5%) as a decrease in incentive management fees was partially offset by an increase in equipment and computer lease expense. Incentive management fees, which are based on cash available for distribution, decreased as a result of the decrease in net income. On April 5, 2002, the General Partners received a copy of a hostile tender offer from MacKenzie Patterson, Inc. and associated corporations and limited partnerships to purchase all of the units in the Partnership. This offer was also filed with the Securities and Exchange Commission on the same date. The General Partners have determined that the hostile tender offer is not in the best interests of the Limited Partners, that the tender offer is grossly in- adequate given the performance history of the Limited Partnership and the inherent value of the units, and recommend that the Limited Partners reject the hostile tender offer and not tender their units pursuant thereto. 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, 2002 AND DECEMBER 31, 2001 March 31, December 31, 2002 2001 ASSETS CASH AND CASH EQUIVALENTS $ 643,589 $ 537,427 PROPERTY,NET 2,209,556 2,319,749 OTHER ASSETS 113,949 113,949 TOTAL $2,967,094 $2,971,125 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $393,403 $422,038 PARTNERS' EQUITY (DEFICIT): General Partners (67,548) (67,794) Limited Partners 2,641,239 2,616,881 Total partners' equity 2,573,691 2,549,087 TOTAL $2,967,094 $2,971,125 See accompanying notes to financial statements (unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED March 31, 2002 AND 2001 March 31, March 31, 2002 2001 REVENUES: Rental $735,362 $791,400 EXPENSES: Operating 366,002 339,357 General and administrative 75,173 79,564 Total expenses 441,175 418,921 OPERATING INCOME $294,187 $372,479 OTHER INCOME Interest 337 2,016 NET INCOME 294,524 374,495 AGGREGATE NET INCOME ALLOCATED TO : Limited partners $291,579 $370,750 General partners 2,945 3,745 TOTAL $294,524 $374,495 NET INCOME PER LIMITED PARTNERSHIP UNIT $12.28 $15.61 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, 2002 GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2002 ($67,794) $2,616,881 $2,549,087 NET INCOME 2,945 291,579 294,524 DISTRIBUTIONS (2,699) (267,221) (269,920) BALANCE AT MARCH 31, 2002 ($67,548) $2,641,239 $2,573,691 See accompanying notes to financial statements(unaudited). STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001 March 31, March 31, 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 294,524 $ 374,495 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 110,193 104,805 Changes in assets and liabilities: Decrease(increase) in liabilies (28,635) 1,563 Net cash provided by operating activities 376,082 480,863 CASH FLOWS FROM FINANCING ACTIVITIES- Distributions to partners (269,920) (269,920) NET INCREASE IN CASH AND CASH EQUIVALENTS 106,162 210,943 CASH AND CASH EQUIVALENTS: At beginning of period 537,427 537,423 At end of period $ 643,589 $ 748,366 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, 2002, and for the periods ended March 31, 2002 and 2001, 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, 2002, is as follows: Land $ 1,759,000 Buildings and improvements 8,579,426 Equipment 38,710 Total 10,377,136 Less: Accumulated Depreciation ( 8,167,580) Property - Net $ 2,209,556
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. -----END PRIVACY-ENHANCED MESSAGE-----