-----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, FcX42v4+HWMOgONcJEaVqbK9WLpVKB2A5Z6sEs8ElMUfYP3tn687YHctAlxSsIKM +A+eEw5yGs+LvTxDPP1fKg== 0000318835-99-000017.txt : 19991115 0000318835-99-000017.hdr.sgml : 19991115 ACCESSION NUMBER: 0000318835-99-000017 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991112 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: 99746640 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 September 30, 1999 /___/ 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 September 30, 1999 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 September 30, 1999. 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 September 30, 1999. (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: October 29, 1999 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: October 29, 1999 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 October 29,1999 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 September 30, 1999. 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 September 30, 1999 and 1998, total revenues decreased 1.2% from $557,846 to $551,139 and total expenses decreased 3.0% from $388,467 to $376,699. As a result, net income increased 3.0% from $169,379 for the three-month period ended September 30, 1998, to $174,440 for the same period in 1999. Rental revenue decreased primarily as a result of lower occupancy levels. Occupancy levels for the Partnership's six mini-storage facilities averaged 84.6% for the three-month period ended September 30, 1999 and 88.4% for the same period in 1998. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses decreased approximately $16,900 (4.8%) primarily as a result of a decrease in maintenance and repair expense, partially offset by an increase in security and alarm service expenses. General and administrative expenses increased approximately $5,200 (13.8%) primarily as a result of relatively insignificant fluctuations in various expense accounts. For the nine-month periods ended September 30, 1999, and 1998, total revenues increased 2.7% from $1,617,793 to $1,660,684 and total expenses increased 1.7% from $1,144,235 to $1,163,669. As a result, net income increased 5.0% from $473,558 for the nine months ended September 30, 1998, to $497,015 for the same period in 1999. Rental revenue increased primarily as a result of higher unit rental rates during the nine-month period. Operating expenses increased approximately $16,100 (1.6%) primarily due to increases in miscellaneous advertising, salaries and wages, property management fees, workers compensation and security and alarm service expenses, partially offset by a decrease in maintenance and repair expenses. 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 $3,400 (2.2%) 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. The Year 2000 issue refers to the inability of certain computer systems to recognize a date using "00" as the Year 2000. The Partnership has implemented a Year 2000 program, which has three phases: (1) identification; (2) remediation; and (3) testing and verification. The Partnership, as well as the property management company and the Partnership's warehouse facilities have completed those phases. Computer programs have been upgraded and tested to function properly with respect to the dates in the Year 2000 and thereafter. Year 2000 compliance costs are nominal and have been expensed in the regular course of business. The Partnership provides no assurance that third-party suppliers and customers will be compliant. Nevertheless, the Partnership does not believe that the Year 2000 issue will have a material adverse effect on its financial condition or results of operations. 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) SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
September 30, December 31, 1999 1998 ASSETS CASH AND CASH EQUIVALENTS $ 608,086 $ 459,100 PROPERTY, Net 2,313,550 2,672,106 OTHER ASSETS 45,259 44,142 TOTAL $2,966,895 $3,175,348 LIABILITIES AND PARTNERS' EQUITY(DEFICIT) LIABILITIES $ 568,025 $ 546,221 PARTNERS' EQUITY (DEFICIT): General Partners (83,779) (81,477) Limited Partners 2,482,649 2,710,604 Total partners' equity 2,398,870 2,629,127 TOTAL $2,966,895 $3,175,348 See accompanying notes to financial statements (unaudited).
STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
September 30, September 30, 1999 1998 REVENUES: Rental income $ 549,595 $ 554,104 Interest 1,544 3,742 Total revenues 551,139 557,846 EXPENSES: Operating 333,939 350,881 General and administrative 42,760 37,586 Total expenses 376,699 388,467 NET INCOME $ 174,440 $ 169,379 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 172,696 $ 167,685 General partners 1,744 1,694 TOTAL $ 174,440 $ 169,379 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 7.20 $ 6.99 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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
September 30, September 30, 1999 1998 REVENUES: Rental income $1,655,844 $1,607,726 Interest 4,840 10,067 Total revenues 1,660,684 1,617,793 EXPENSES: Operating 1,005,654 989,595 General and administrative 158,015 154,640 Total expenses 1,163,669 1,144,235 NET INCOME $497,015 $473,558 AGGREGATE NET INCOME ALLOCATED TO: Limited partners 492,045 468,822 General partners 4,970 4,736 TOTAL 497,015 473,558 NET INCOME PER LIMITED PARTNERSHIP UNIT $20.50 $19.53 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 NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
GENERAL LIMITED PARTNERS PARTNERS TOTAL EQUITY AT JANUARY 1, 1998 ($76,015) $3,251,237 $3,175,222 NET INCOME 4,736 468,822 473,558 DISTRIBUTIONS (7,272) (720,000) (727,272) EQUITY AT SEPTEMBER 30, 1998 ($78,551) $3,000,059 $2,921,508 BALANCE AT JANUARY 1, 1999 ($81,477) $2,710,604 $2,629,127 NET INCOME 4,970 492,045 497,015 DISTRIBUTIONS (7,272) (720,000) (727,272) BALANCE AT SEPTEMBER 30, 1999 ($83,779) $2,482,649 $2,398,870 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
September 30, September 30, 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 497,015 $ 473,558 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 381,980 381,981 Changes in assets and liabilities: Increase in other assets (1,117) (25,092) Increase in liabilities: 21,804 35,029 Net cash provided by operating activities 899,682 865,476 CASH FLOWS FROM INVESTING ACTIVITIES - Additions to property and equipment (23,424) 0 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (727,272) (727,272) NET INCREASE IN CASH AND CASH EQUIVALENTS 148,986 138,204 CASH AND CASH EQUIVALENTS: At beginning of period 459,100 500,294 At end of period $ 608,086 $ 638,498 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 September 30, 1999, and for the periods ended September 30, 1999, and 1998 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 September 30, 1999, is as follows: Land $ 2,089,800 Buildings and equipment 7,680,134 Equipment 60,760 Total 9,830,694 Less: Accumulated Depreciation ( 7,517,144) Property - Net $ 2,313,550
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-31-1999 DEC-31-1999 SEP-30-1999 DEC-31-1999 608086 0 0 0 0 0 0 0 0 0 0 0 9830694 0 7517144 0 2966895 0 0 0 0 0 0 0 0 0 0 0 0 0 2966895 0 1655844 0 1660684 0 0 0 0 0 0 0 0 0 0 0 497015 0 0 0 497015 0 0 0 0 0 0 0 497015 0 0 0 0 0
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