-----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, Mee9LpSFUp2/Z2XRO6llnXrJPpl1WmUFmoemTbebv8vQsnZSPER8c3pRXGWx95+b 07kzGKil6OT15jGed4hpOA== 0000719581-99-000012.txt : 19990817 0000719581-99-000012.hdr.sgml : 19990817 ACCESSION NUMBER: 0000719581-99-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990816 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: 99693073 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, 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 June 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 June 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 June 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: July 31, 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: July 31, 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 July 31, 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 June 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 period ended June 30, 1999, and 1998, total revenues increased 4.2% from $535,517 to $557,813 and total expenses increased 3.1% from $376,519 to $388,033. As a result, net income increased 6.8% from $158,998 for the three-month period ended June 30, 1998, to $169,780 for the same period in 1999. Rental revenue increased as a result of higher unit rental rates. Operating expenses increased approximately $9,100 (2.8%) primarily as a result of relatively insignificant fluctuations in various expense accounts. General and administrative expneses remained constant. Occupancy levels for the Partnership's six mini-storage facilities averaged 85.9% for the three-month period ended June 30, 1999, and 89.2% for the same period in 1998. The Partnership is continuing its marketing efforts to attract andk keep new tenants in its various mini-storage facilities. For the six month periods ended June 30, 1999, and 1998, total revenues increased 4.7% from $1,059,947 to $1,109,545 and total expenses increased 4.1% from $755,768 to $786,970. As a result, net income increased 6.0% from $304,179 for the six months ended June 30, 1998, to $322,575 for the same period in 1999. Rental revenue increased primarily as a result of higher unit rental rates during the six-month period. Operating expenses increased approximately $33,000 (5.2%) primarily due to increases in maintenance and repair, salaries and wage expenses and propterty 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 remained constant. 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 expnesed 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) JUNE 30, 1999 AND DECEMBER 31, 1998
June 30, December 31, 1999 1998 ASSETS CASH AND CASH EQUIVALENTS $ 526,400 $ 459,100 PROPERTY, Net 2,417,451 2,672,106 OTHER ASSETS 45,259 44,142 TOTAL $2,989,110 $3,175,348 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 522,256 $ 546,221 PARTNERS' EQUITY (DEFICIT): General Partners (83,099) (81,477) Limited Partners 2,549,953 2,710,604 Total partners' equity 2,466,854 2,629,127 TOTAL $2,989,110 $3,175,348 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998 June 30, June 30, 1999 1998 REVENUES: Rental income $ 556,244 $ 531,898 Interest 1,569 3,619 Total revenues 557,813 535,517 EXPENSES: Operating 337,950 328,801 General and administrative 50,083 47,718 Total expenses 388,033 376,519 NET INCOME $ 169,780 $ 158,998 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 168,082 $ 157,408 General Partners 1,698 1,590 TOTAL $ 169,780 $ 158,998 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 7.00 $ 6.56 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, 1999 AND 1998 June 30, June 30, 1999 1998 REVENUES: Rental income $1,106,249 $1,053,622 Interest 3,296 6,325 Total revenues 1,109,545 1,059,947 EXPENSES: Operating 671,715 638,714 General and administrative 115,255 117,054 Total expenses 786,970 755,768 NET INCOME $ 322,575 $ 304,179 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 319,349 $ 301,137 General Partners 3,226 3,042 TOTAL $ 322,575 $ 304,179 NET INCOME PER LIMITED PARTNERSHIP UNIT $13.31 $12.55 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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 1998 ($76,105) $3,251,237 $3,175,222 NET INCOME 3,042 301,137 304,179 DISTRIBUTIONS (4,848) (480,000) (484,848) BALANCE AT JUNE 30, 1998 ($77,821) $3,072,374 $2,994,553 BALANCE AT JANUARY 1, 1999 ($81,477) $2,710,604 $2,629,127 NET INCOME 3,226 319,349 322,575 DISTRIBUTIONS (4,848) (480,000) (484,848) BALANCE AT JUNE 30, 1999 ($83,099) $2,549,953 $2,466,854 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30, 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 322,575 $ 304,179 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 254,655 254,654 Changes in assets and liabilities: Increase in other assets (1,117) (44,582) Decrease(increase)in liabilities (23,965) 16,565 Net cash provided by operating activities 552,148 530,816 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (484,848) (484,848) NET INCREASE IN CASH AND CASH EQUIVALENTS 67,300 45,968 CASH AND CASH EQUIVALENTS: At beginning of period 459,100 500,294 At end of period $ 526,400 $ 546,262 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, 1999, and for the periods ended June 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 June 30, 1999, is as follows: Land $ 2,089,800 Buildings and equipment 7,662,434 Equipment 55,035 Total 9,807,269 Less: Accumulated Depreciation ( 7,389,818) Property - Net $ 2,417,451
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 JUN-30-1999 DEC-31-1999 526400 0 0 0 0 0 0 0 0 0 0 0 9807269 0 7389818 0 2989110 0 0 0 0 0 0 0 0 0 0 0 0 0 2989110 0 1106249 0 1109545 0 0 0 0 0 0 0 0 0 0 0 322575 0 0 0 322575 0 0 0 0 0 0 0 322575 0 0 0 0 0
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