-----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, T6TM79B5N+mfzhilOz1RtcrwANznju8Qz41KdgKI299eVwSK1OUPIQFUA5/71nGT SlV9VntWg+wCw9LDNUOjmw== 0000318835-02-000023.txt : 20020814 0000318835-02-000023.hdr.sgml : 20020814 20020814104804 ACCESSION NUMBER: 0000318835-02-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020814 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: 02732273 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 dsivi-602.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 June 30, 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 June 30, 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 June 30, 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 June 30, 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: July 31, 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: July 31, 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 July 31, 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 June 30, 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 June 30, 2002, and 2001, total revenues decreased 12.1% from $789,397 to $693,646 and total expenses increased 9.1% from $436,787 to $476,466 and other income decreased from $1,652 to $359. As a result, net income decreased 38.6% from 354,262 for the three-month period ended June 30, 2001, to $217,539 for the same period in 2002. The revenue decrease can be attributed to a decrease in rental income as a re- sult of lower occupancy and unit rental rates. Occupancy levels for the Partnership's six mini-storage facilities averaged 84.4% for the three- month ended June 30, 2002, compared to 87.6% 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 $27,500 (7.8%) primarily due to increases in de- preciation, advertising, maintenance and repair, 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 decrease in rental revenue. General and administrative expenses increased approximately $12,200 (14.2%) as a result increases in legal and professional and equipment and computer lease expenses, partially offset by a decrease in incentive management fees. Incentive management fees, which are based on cash available for distribution, decreased as a result of the decrease in net income. For the six-month periods ended June 30, 2002, and 2001, total revenues decreased 9.6% from $1,580,797 to $1,429,008, total expenses increased 7.2% from $855,708 to $917,641 and other income decreased from $3,668 to $696. As a result, net income decreased 29.7% from $728,757 for the six months ended June 30, 2001, to $512,063 for the same period in 2002. The revenue decrease can be attributed to a decrease in rental revenue as a result of lower occupancy and unit rental rates. Operating expenses increased approx- imately $54,100 (7.8%) primarily due to increases in depreciation, main- tenance and repair, office supplies, salaries and wages, workers compensation insurance and bank and credit card fee expenses, partially offset by decreases in advertising and property management fee expenses. The decrease in property management fees was discussed above. General and administrative expenses increased approximately $7,800 (4.7%) as a result increases in legal and professional and equipment and computer lease expenses, partially offset by a decrease in incentive management fees. The decrease in incentive manage- ment fees was discussed above. On April 5, 2002, the General Partners received a copy of a hostile tender offer from MacKenzie Patterson, Inc. and associated corporation 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 was not in the best interests of the Limited Partners, that the tender offer was grossly inadequate given the performance history of the Limited Partnership and the inherent value of the Units, and recommendedthat the Limited Partners reject the hostile tender offer and not tender their Units pursuant thereto. The offer was subsequently increased and extended to June 30, 2002 and again to July 22, 2002. The General Partners' initial determination regarding the offer has not changed. Prior to the expiration date of the offer, Limited Partners tendered 85 Units representing 0.358% of the outstanding Units of the Partnership. 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 DSI REALTY INCOME FUND VI (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED), JUNE 30, 2002 AND DECEMBER 31, 2001 June 30, December 31, 2002 2001 ASSETS CASH AND CASH EQUIVALENTS $ 696,464 $ 537,427 PROPERTY, Net 2,099,363 2,319,749 OTHER ASSETS 112,538 113,949 TOTAL $2,908,365 $2,971,125 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $387,056 $422,038 PARTNERS' EQUITY (DEFICIT): General Partners (68,071) (67,794) Limited Partners 2,589,380 2,616,881 Total partners' equity 2,521,309 2,549,087 TOTAL $2,908,365 $2,971,125 See accompanying notes to financial statements (unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001 June 30, June 30, 2002 2001 REVENUES: Rental income $693,646 $789,397 EXPENSES: Operating Expenses 378,290 350,794 General and Administrative 98,176 85,993 Total expenses 476,466 436,787 OPERATING INCOME $217,180 $352,610 OTHER INCOME Interest 359 1,652 NET INCOME $217,539 $354,262 AGGREGATE NET INCOME ALLOCATED TO : Limited Partners $215,364 $350,719 General Partners 2,175 3,543 TOTAL $217,539 $354,262 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 9.07 $ 14.77 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 23,753 23,753 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001 June 30, June 30, 2002 2001 REVENUES: Rental $1,429,008 $1,580,797 EXPENSES: Operating 744,292 690,151 General and administrative 173,349 165,557 Total expenses 917,641 855,708 OPERATING INCOME $511,367 $725,089 OTHER INCOME Interest 696 3,668 NET INCOME $512,063 $728,757 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $506,942 $721,469 General Partners 5,121 7,288 TOTAL $512,063 $728,757 NET INCOME PER LIMITED PARTNERSHIP UNIT $21.34 $30.37 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 (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2002 GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2002 ($67,794) $2,616,881 $2,549,087 NET INCOME 5,121 506,942 512,063 DISTRIBUTIONS (5,398) (534,443) (539,841) BALANCE AT JUNE 30, 2002 ($68,071) $2,589,380 $2,521,309 See accompanying notes to financial statements(unaudited). STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001 June 30, June 30, 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 512,063 $ 728,757 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 220,386 203,283 Changes in assets and liabilities: Decrease(increase) in other assets 1,411 (6,500) Decrease in liabilities (34,982) (75,465) Net cash provided by operating activities 698,878 850,075 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (539,841) (539,841) NET INCREASE IN CASH AND CASH EQUIVALENTS 159,037 310,234 CASH AND CASH EQUIVALENTS: At beginning of period 537,427 537,423 At end of period $ 696,464 $ 847,657 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 June 30, 2002, and for the periods ended June 30, 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 June 30, 2002, is as follows: Land $ 1,759,000 Buildings 8,579,426 Equipment 38,710 Total 10,377,136 Less: Accumulated Depreciation ( 8,277,773) Property - Net $ 2,099,363 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. DSI REALTY INCOME FUND VI Form 10-Q CERTIFICATION Each of the undersigned hereby certifies in his capacity as an officer of DSI Properties Inc. (corporate General Partner) of DSI REALTY INCOME FUND VI (the "Partnership") that the Quarterly Report of the Partnership on Form 10-Q for the periods ended June 30, 2002 fully complies with the requirements of Section 13(a) of the Securities and Exchange Act of 1934 and that information contained in such report fairly presents, in all material respects, the financial condition of the Partnership at the end of such periods and the results of operations of the Partnership for such periods. ROBERT J. CONWAY, CEO RICHARD P. CONWAY, VP -----END PRIVACY-ENHANCED MESSAGE-----