-----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, NyrHkv1zZgxYJrwgp7SIJbu60jk0VfZt3J7o/SNNf9mUu0sWDF9u8Tr+zdKFm2bf B4JbjJlUsP4mlqlySRWd4g== 0000318835-98-000015.txt : 19980817 0000318835-98-000015.hdr.sgml : 19980817 ACCESSION NUMBER: 0000318835-98-000015 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 VIII CENTRAL INDEX KEY: 0000743366 STANDARD INDUSTRIAL CLASSIFICATION: LESSORS OF REAL PROPERTY, NEC [6519] IRS NUMBER: 950050204 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 002-90168 FILM NUMBER: 98688183 BUSINESS ADDRESS: STREET 1: 3701 LONG BEACH BLVD STREET 2: C/O DSI PROPERTIES INC 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 2-90168 DSI REALTY INCOME FUND VIII, A California Limited Partnership (Exact name of registrant as specified in its charter) California_______________________________________95-0050204 (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 VIII 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 VIII 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 VIII 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 periods ended June 30, 1998 and 1997, total revenues increase 19.2% from $422,832 to $503,890 and total expenses decreased 1.2% from $316,487 to $312,578. Equity in income of the real estate joint venture increased 24.2% from $21,764 to $27,035. As a result, net income increased 70.4% from $128,109 to $218,347 for the three month period ended June 30, 1998, as compared to the same period in 1997. Rental revenue increased as a result of higher unit rental rates. Occupancy levels for the Partnership's five mini-storage facilities averaged 84.4% for the three month period ended June 30, 1998 as compared to 85.5% 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. Operating expenses decreased approximately $12,400 (4.5%) primarily as a result of lower yellow pages advertising costs, repairs and maintenance and salaries and wage expenses partially offset by higher real estate tax expenses. General and administrative expenses increased approximately $8,500 (21.2%) primarily as a result of higher incentive management fees. Incentive management fees, which are based on cash available for distribution, increased as a result of the increase in net income. Equity in income from the real estate joint venture increased primarily as a result of higher rental revenue. For the six month periods ended June 30, 1998, and 1997, total revenues increased 13.2% from $842,470 to $953,035 and total expenses decreased slightly from $637,720 to $637,194. Equity in income of the real estate joint venture increased 24.0% from $41,810 to $51,824. As a result, net income increased 49.1% from $246,560 to $367,665 for the six month period ended June 30, 1998, as compared to the same period in 1997. Rental revenue increased as a result of higher unit rental rates. Operating expenses decreased approximately $15,000 (2.8%) primarily as a result of decreases in yellow pages advertising costs, legal and repairs and maintenance expenses partially offset by an increase in 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 $14,500 (13.9%) primarily as a result of higher incentive management fees, which was discussed above. Equity in income from the real estate joint venture increased as a result of higher rental revenue and lower salaries and wage expenses. The City of Stockton acquired 6,089 square feet or 5.4% of the Stockton property in 1997. In April 1998 the Partnership received $65,000 as compensation for the acquisition. A gain on sale of land was recorded in the amount of $46,974, and the cost of land was reduced by $18,026. Based on operations since the acquisition, neither cash flow from nor the value of the property appears materially impaired. 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 VIII, P.O. Box 357, Long Beach, California 90801. Very truly yours, DSI REALTY INCOME FUND VIII By: DSI Properties, Inc., as General Partner By /s/ Robert J. Conway ____________________________ ROBERT J. CONWAY, President EX-20 3 DSI REALTY INCOME FUND VIII (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) JUNE 30, 1998 AND DECEMBER 31, 1997
June 30, December 31, 1998 1998 ASSETS CASH AND CASH EQUIVALENTS $ 496,584 $ 399,704 PROPERTY 3,134,586 3,387,178 INVESTMENT IN REAL ESTATE JOINT VENTURE 291,674 313,650 OTHER ASSETS 31,604 31,604 TOTAL $3,954,448 $4,132,136 LIABILITIES AND PARTNERS' EQUITY LIABILITIES $ 612,551 $ 612,450 PARTNERS' EQUITY: General Partners (74,361) (72,584) Limited Partners 3,416,258 3,592,270 Total partners' equity 3,341,897 3,519,686 TOTAL $3,954,448 $4,132,136 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 $ 454,693 $ 421,223 Gain on sale of land 46,974 0 Interest 2,223 1,609 Total revenues 503,890 422,832 EXPENSES: Operating Expenses 264,009 276,397 General and administrative 48,569 40,090 Total expenses 312,578 316,487 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 191,312 106,345 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 27,035 21,764 NET INCOME $ 218,347 $ 128,109 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 216,164 $ 126,828 General partners 2,183 1,281 TOTAL $ 218,347 $ 128,109 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 9.01 $ 5.28 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 $ 902,002 $ 839,078 Gain on sale of land 46,974 0 Interest 4,059 3,392 Total Revenues 953,035 842,470 EXPENSES: Operating Expenses 518,463 533,500 General and Administrative 118,731 104,220 Total Expenses 637,194 637,720 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 315,841 204,750 EQUITY IN INCOME OF REAL ESTATE FOINT VENTURE 51,824 41,810 NET INCOME $ 367,665 $ 246,560 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 363,988 $ 244,094 General partners 3,677 2,466 TOTAL $ 367,665 $ 246,560 NET INCOME PER LIMITED PARTNERSHIP UNIT $15.17 $10.17 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 ($67,560) $4,089,606 $4,022,046 NET INCOME 2,466 244,094 246,560 DISTRIBUTIONS (5,454) (540,000) (545,454) EQUITY AT JUNE 30, 1997 ($70,548) $3,793,700 $3,723,152 EQUITY AT DECEMBER 31, 1997 ($72,584) $3,592,270 $3,519,686 NET INCOME 3,677 363,988 367,665 DISTRIBUTIONS (5,454) (540,000) (545,454) EQUITY AT JUNE 30, 1998 ($74,361) $3,416,258 $3,341,897 See accompanying notes to consolidated 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 $ 367,665 $ 264,560 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 234,566 234,567 Gain on sale of land (46,974) 0 Distributions in excess of earnings in real estate joint venture 21,976 20,886 Changes in assets and liabilities: Increase in liabilities 101 6,094 Net cash provided by operating activities 577,334 508,107 CASH FLOWS FROM INVESTING ACTIVITIES - Proceeds from Sale of land 18,026 0 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (545,454) (545,454) NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS 96,880 (37,347) CASH AND CASH EQUIVALENTS: At beginning of period 399,704 389,413 At end of period $ 496,584 $352,066 See accompanying notes to financial statements(unaudited).
DSI REALTY INCOME FUND VIII (A California Real Estate Limited Partnership) NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. GENERAL DSI Realty Income Fund VIII (the "Partnership"), a limited 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 considered necessary by the Partnership's management for a fair presentation of the results for the periods indicated. 2. PROPERTY The Partnership owns five mini-storage facilities located in Stockton, Pittsburg, El Centro, Lompoc and Huntington Beach, California. The total cost of property and accumulated depreciation at June 30, 1998, is as follows: Land $ 2,287,284 Buildings and improvements 7,071,497 Equipment 22,831 Total 9,381,612 Less: Accumulated Depreciation ( 6,247,026) Property - Net $ 3,134,586
3. INVESTMENT IN REAL ESTATE JOINT VENTURE The Partnership is involved in a joint venture with DSI Realty Income Fund IX through which the Partnership has a 30% interest in a mini-storage facility in Aurora, Colorado. Under the terms of the joint venture agreement, the Partnership is entitled to 30% of the profits and losses of the venture and owns 30% of the mini-storage facility as a tenant in common with DSI Realty Income Fund IX, which has the remaining 70% interest in the venture. Summarized income statement information for the three months ended June 30, 1998, and 1997 is as follows: 1998 1997 Revenue $345,427 $320,774 Operating Expenses 172,681 181,407 Net Income $172,746 $139,367
The Partnership accounts for its investment in the real estate joint venture under the equity method of accounting. 4. 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 496584 0 0 0 0 0 0 0 0 0 0 0 9381612 0 6247026 0 3954448 0 0 0 0 0 0 0 0 0 0 0 0 0 3954448 0 902002 0 953035 0 0 0 0 0 0 0 0 0 0 0 367665 0 0 0 367665 0 0 0 0 0 0 0 367655 0 0 0 0 0
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