-----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, Wo119eFkZxOfAYDzK4lCJlaTBRMqsk1jjr0Hwx+3pn0GufMhBJdysWE6JafYFNZa hf/5j7aS8AFrSbm+WcPJPw== 0000318835-98-000014.txt : 19980817 0000318835-98-000014.hdr.sgml : 19980817 ACCESSION NUMBER: 0000318835-98-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DSI REALTY INCOME FUND VII CENTRAL INDEX KEY: 0000719581 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953871044 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 002-83291 FILM NUMBER: 98688180 BUSINESS ADDRESS: STREET 1: 3701 LONG BEACH BLVD CITY: LONG BEACH STATE: CA ZIP: 90807 BUSINESS PHONE: 3105957711 MAIL ADDRESS: STREET 1: 3701 LONG BEACH BLVD CITY: LONG BEACH STATE: CA ZIP: 90807 10-Q 1 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, 1998 /___/ 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 June 30, 1998 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, 1998. 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, 1998. (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, 1998 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: July 31, 1998 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 EX-20 2 July 31, 1998 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 June 30, 1998. The following is Management's discussion and analysis of the Partnership's financial condition and results of its operations. For the three month period ended June 30, 1998, and 1997, total revenues increased 9.1% from $490,974 to $535,517 and total expenses decreased 5.5% from $398,393 to $376,519. As a result, net income increased 71.7% from $92,581 for the three month period ended June 30, 1997, to $158,998 for the same period in 1998. Rental revenue increased as a result of higher unit rental rates as occupancy levels remained relatively constant. Operating expenses decreased approximately $27,700 (7.8%) as a result of decreases in maintenance and repair and salaries and wage expenses, partially offset by increases real estate tax expenses and property management fees. Property management fees, which are based on rental income, increased as a result of the increase in rental revenue. General and administrative expenses increased approximately $5,800 (13.8%) primarily as a result of an increase in incentive management fees. Incentive management fees, which are based on cash available for distribution, increased as a result of the increase in net income. Occupancy levels for the Partnership's six mini-storage facilities averaged 89.2% for the three month period ended June 30, 1998, and 89.4% for the same period in 1997. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. For the six month periods ended June 30, 1998, and 1997, total revenues increased 10.2% from $962,290 to $1,059,947 and total expenses decreased 0.6% from $760,188 to $755,768. As a result, net income increased 50.5% from $202,102 for the six months ended June 30, 1997, to $304,179 for the same period in 1998. Rental revenue increased primarily as a result of higher unit rental rates during the six months of the period. Operating expenses decreased approximately $17,100 (2.6%) primarily due to the same reasons as discussed above. General and administrative expenses increased approximately $12,700 (12.2%) primarily as a result of an increase in incentive management fees, as discussed above. The General Partners will continue their policy of funding improvements 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 EX-20 3 DSI REALTY INCOME FUND VII (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) JUNE 30, 1998 AND DECEMBER 31, 1997
June 30, December 31, 1998 1997 ASSETS CASH AND CASH EQUIVALENTS $ 546,262 $ 500,294 PROPERTY 2,926,758 3,181,412 OTHER ASSETS 82,242 37,660 TOTAL $3,555,262 $3,719,366 LIABILITIES AND PARTNERS' EQUITY LIABILITIES $ 560,709 $ 544,144 PARTNERS' EQUITY: General Partners (77,821) (76,015) Limited Partners 3,072,374 3,251,237 Total partners' equity 2,994,553 3,175,222 TOTAL $3,555,262 $3,719,366 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997 June 30, June 30, 1998 1997 REVENUES: Rental Income $ 531,898 $ 488,690 Interest 3,619 2,284 Total revenues 535,517 490,974 EXPENSES: Operating Expenses 328,801 356,492 General and administrative 47,718 41,901 Total expenses 376,519 398,393 NET INCOME $ 158,998 $ 92,581 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 157,408 $ 91,655 General partners 1,590 926 TOTAL $ 158,998 $ 92,581 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 6.56 $ 3.82 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 24,000 24,000 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997 June 30, June 30, 1998 1997 REVENUES: Rental Income $1,053,622 $ 957,377 Interest 6,325 4,913 Total revenues 1,059,947 962,290 EXPENSES: Operating Expenses 638,714 655,862 General and administrative 117,054 104,326 Total expenses 755,768 760,188 NET INCOME $ 304,179 $ 202,102 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 301,137 $ 200,081 General partners 3,042 2,021 TOTAL $ 304,179 $ 202,102 NET INCOME PER LIMITED PARTNERSHIP UNIT $12.55 $8.34 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 (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
GENERAL LIMITED PARTNERS PARTNERS TOTAL EQUITY AT DECEMBER 31, 1996 ($71,568) $3,691,570 $3,620,002 NET INCOME 2,021 200,081 202,102 DISTRIBUTIONS (4,848) (480,000) (484,848) EQUITY AT JUNE 30, 1997 ($74,395) $3,411,651 $3,337,256 EQUITY AT DECEMBER 31, 1997 ($76,105) $3,251,237 $3,175,222 NET INCOME 3,042 301,137 304,179 DISTRIBUTIONS (4,848) (480,000) (484,848) EQUITY AT JUNE 30, 1998 ($77,821) $3,072,374 $2,994,553 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
June 30, June 30, 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 304,179 $ 202,102 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 254,654 254,654 Changes in assets and liabilities: Increase in other assets (44,582) (44,625) Increase(Decrease)in liabilities 16,565 (9,830) Net cash provided by operating activities 530,816 402,301 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (484,848) (484,848) NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 45,968 (82,547) CASH AND CASH EQUIVALENTS: At beginning of period 500,294 481,301 At end of period $ 546,262 $ 398,754 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 June 30, 1998, and for the periods ended June 30, 1998, and 1997, 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 June 30, 1998, is as follows: Land $ 2,089,800 Buildings and equipment 7,662,434 Equipment 55,058 Total 9,807,292 Less: Accumulated Depreciation ( 6,880,534) Property - Net $ 2,926,758
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. EX-27 4
5 3-MOS YEAR DEC-31-1998 DEC-31-1998 JUN-30-1998 DEC-31-1998 546262 0 0 0 0 0 0 0 0 0 0 0 9807292 0 6880534 0 3555262 0 0 0 0 0 0 0 0 0 0 0 0 0 3555262 0 1053622 0 1059947 0 0 0 0 0 0 0 0 0 0 0 304179 0 0 0 304179 0 0 0 0 0 0 0 304179 0 0 0 0 0
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