10-Q 1 dsivii-301.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 2-83291 DSI REALTY INCOME FUND VII, A California Limited Partnership (Exact name of registrant as specified in its charter) California_______________________________________95-3871044 (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 VII 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 VII 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 VII 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 13.7% from $541,527 to $615,684, total expenses decreased 25.0% from $392,444 to $294,344 and other income decreased from $1,708 to $1,450. As a result, net income increased 214.1% from $150,791 for the three-month period ended March 31, 2000, to $322,790 for the same period in 2001. Occupancy levels for the Partnership's six mini-storage facilities averaged 90.7% for the three month period ended March 31, 2001, and 80.1% for the period in 2000. Rental revenue increased primarily as a result of higher occupancy and unit rental rates. The Partnership is continuing its marketing effort to attract and keep new tenants in its various mini-storage facilities. Operating expenses de- creased approximately $97,500 (29.8%) primarily as a result of a decrease in depreciation as the Partnership's property is fully depreciated. Other vari- ations in operating expenses includes decreases in yellow pages advertising costs and workers compensation insurance expenses and increases in repairs and maintenance, property management fees, salary and wages and security alarm services expenses. General and administrative expenses remained relatively constant. The General Partners will continue their policy of funding the continuing improvement and maintenance of Partnership properties with cash generated from operations. The Partnership's financial 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 VII, P.O. Box 357, Long Beach, California 90801. Very truly yours, DSI REALTY INCOME FUND VII By: DSI Properties, Inc., as General Partner By /s/ Robert J. Conway ____________________________ ROBERT J. CONWAY, President DSI REALTY INCOME FUND VII (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 $ 562,970 $ 468,842 PROPERTY, NET 2,106,924 2,089,800 OTHER ASSETS 44,588 44,588 TOTAL $2,714,482 $2,603,230 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 652,274 $ 621,388 PARTNERS' EQUITY (DEFICIT): General Partners (87,146) (87,950) Limited Partners 2,149,354 2,069,792 Total partners' equity 2,062,208 1,981,842 TOTAL $2,714,482 $2,603,230 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 Income $ 615,684 $ 541,527 EXPENSES: Operating 229,500 327,022 General and administrative 64,844 65,422 Total expenses 294,344 392,444 OPERATING INCOME $ 321,340 $ 149,083 OTHER INCOME Interest 1,450 1,708 NET INCOME 322,790 150,791 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 319,562 $ 149,283 General partners 3,228 1,508 TOTAL $ 322,790 $ 150,791 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 13.32 $ 6.22 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 24,000 24,000 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 ($86,270) $2,236,131 $2,149,861 NET INCOME 1,508 149,283 150,791 DISTRIBUTIONS (2,424) (240,000) (242,424) BALANCE AT MARCH 31, 2000 ($87,186) $2,145,414 $2,058,228 BALANCE AT JANUARY 1, 2001 ($87,950) $2,069,792 $1,981,842 NET INCOME 3,228 319,562 322,790 DISTRIBUTIONS (2,424) (240,000) (242,424) BALANCE AT MARCH 31, 2001 ($87,146) $2,149,354 $2,062,208 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 $ 322,790 $ 150,791 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,000 127,327 Changes in assets and liabilities: Increase(decrease) in liabilities 30,886 (25,965) Net cash provided by operating activities 354,676 252,153 CASH FLOWS FROM INVESTING ACTIVITIES - Additions to property and equipment (18,124) 0 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (242,424) (242,424) NET INCREASE IN CASH AND CASH EQUIVALENTS 94,128 9,729 CASH AND CASH EQUIVALENTS: At beginning of period 468,842 525,003 At end of period $ 562,970 $ 534,732 See accompanying notes to financial statements(unaudited).
DSI REALTY INCOME FUND VII (A California Real Estate Limited Partnership) NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. GENERAL DSI Realty Income Fund VII (the "Partnership"), has two general partners (DSI Properties, Inc., and Diversified Investors Agency) and limited partners owning 24,000 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 15 years. The total cost of property and accumulated depreciation at March 31, 2001, is as follows: Land $ 2,089,800 Buildings and equipment 7,703,647 Equipment 60,760 Total 9,854,207 Less: Accumulated Depreciation ( 7,747,283) Property - Net $ 2,106,924
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.