-----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, NYXCeEgPV47z+xDSsITq3XrAf72YIYy2uORvtPBhOfD5FjKqDId1WjSt0rlXvMv5 byRraJLHMBDqeHhhvMFIWQ== 0000318835-01-500026.txt : 20010816 0000318835-01-500026.hdr.sgml : 20010816 ACCESSION NUMBER: 0000318835-01-500026 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010815 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: 1934 Act SEC FILE NUMBER: 002-90168 FILM NUMBER: 1715582 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 dsiviii601.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 June 30, 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 2-90168 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, 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 June 30, 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 June 30, 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: July 31, 2001 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, 2001 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 July 31, 2001 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, 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 June 30, 2001 and 2000, total revenues increased 19.4% from $529,876 to $632,472 and total expenses decreased 30.5% from $349,035 to $242,426 and other income decreased from $1,800 to $1,377. Equity in income of the real estate joint venture increased 64.5% from $26,189 to $43,090. As a result, net income increased 108.1% from 208,830 to $434,513 for the three-month period ended June 30, 2001, as compared to the same period in 2000. Rental revenue increased as a result of higher occupancy and unit rental rates. Occupancy levels for the Partnership's five mini-storage facilities averaged 92.5% for the three-month period ended June 30, 2001 as compared to 87.3% for the same period in 2000. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses decreased approximately $110,500 (37.4%) primarily as a result of lower maintenance and repair, workers compensation insurance and depreciation expenses, partially offset by increases in advertising costs, property management fees and salary and wage expenses. General and administrative expenses increased approxi- mately $3,900 (7.3%) primarily as a result of relatively insignificant fluctuations in various expense accounts. Equity in income from the real estate joint venture increased as a result of lower operating expenses at that facility, primarily as a result of a decrease in depreciation expense due to the property being fully depreciated as of December 31, 2000. For the six month periods ended June 30, 2001, and 2000, total revenues increased 20.0% from $1,041,767 to $1,250,278 and total expenses decreased 30.9% from $696,683 to $482,021 and other income decreased from $3,290 to $2,938. Equity in income of the real estate joint venture increased 48.1% from $58,380 to $86,484. As a result, net income increased 110.9% from $406,754 to $857,679 for the six-month period June 30, 2001, as compared to the same period in 2000. Rental revenue increased as a result of higher occupancy and unit rental rates. Operating expenses decreased approximately $223,100 (39.0%) primarily as a result of decreases in repairs and mainten- ance, workers compensation insurance and depreciation expenses, partially off- set by increases in advertising costs, property management fees and salaries and wages 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 $8,400 (6.7%) primarily as a result of higher incentive management fees partially offset by a decrease in equipment and computer lease expenses. The increase in equity in income from the real estate joint venture was 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 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 DSI REALTY INCOME FUND VIII (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) JUNE 30, 2001 AND DECEMBER 31, 2000
June 30, December 31, 2001 2000 ASSETS CASH AND CASH EQUIVALENTS $ 811,241 $ 514,497 PROPERTY, Net 2,287,427 2,287,427 INVESTMENT IN REAL ESTATE JOINT VENTURE 182,858 176,774 OTHER ASSETS 66,938 60,938 TOTAL $3,348,464 $3,039,636 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 642,428 $ 645,825 PARTNERS' EQUITY (DEFICIT): General Partners (80,722) (83,844) Limited Partners 2,786,758 2,477,655 Total partners' equity 2,706,036 2,393,811 TOTAL $3,348,464 $3,039,636 See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000 June 30, June 30, 2001 2000 REVENUES: Rental $ 632,472 $ 529,876 EXPENSES: Operating 184,909 295,434 General and administrative 57,517 53,601 Total expenses 242,426 349,035 OPERATING INCOME 390,046 180,841 OTHER INCOME Interest 1,377 1,800 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 391,423 182,641 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 43,090 26,189 NET INCOME $ 434,513 $ 208,830 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 430,168 $ 206,742 General Partners 4,345 2,088 TOTAL $ 434,513 $ 208,830 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 17.92 $ 8.61 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, 2001 AND 2000 June 30, June 30, 2001 2000 REVENUES: Rental $1,250,278 $1,041,767 EXPENSES: Operating 348,411 571,474 General and Administrative 133,610 125,209 Total Expenses 482,021 696,683 OPERATING INCOME 768,257 345,084 OTHER INCOME 2,938 3,290 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 771,195 348,374 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 86,484 58,380 NET INCOME $ 857,679 $ 406,754 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 849,102 $ 402,686 General Partners 8,577 4,068 TOTAL $ 857,679 $ 406,754 NET INCOME PER LIMITED PARTNERSHIP UNIT $35.38 $16.78 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, 2001 AND 2000
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2000 ($81,721) $2,687,867 $2,606,146 NET INCOME 4,068 402,686 406,754 DISTRIBUTIONS (5,454) (540,000) (545,454) BALANCE AT JUNE 30, 2000 ($83,107) $2,550,553 $2,467,446 BALANCE AT JANUARY 1, 2001 ($83,844) $2,477,655 $2,393,811 NET INCOME 8,577 849,102 857,679 DISTRIBUTIONS (5,455) (539,999) (545,454) BALANCE AT JUNE 30, 2001 ($80,722) $2,786,758 $2,706,036 See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
June 30, June 30, 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 857,679 $ 406,754 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 0 234,566 Equity in earnings of real estate joint venture (86,484) (58,380) Distributions from real estate joint venture 80,400 77,400 Changes in assets and liabilities: Increase in other assets (6,000) 0 (Decrease)increase in liabilities (3,397) 19,890 Net cash provided by operating activities 842,198 680,230 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (545,454) (545,454) NET INCREASE IN CASH AND CASH EQUIVALENTS 296,744 134,776 CASH AND CASH EQUIVALENTS: At beginning of period 514,497 483,308 At end of period $ 811,241 $618,084 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, 2001, and for the periods ended June 30, 2001, and 2000 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, 2001, is as follows: Land $ 2,287,427 Buildings and improvements 7,126,997 Equipment 22,831 Total 9,437,255 Less: Accumulated Depreciation ( 7,149,828) Property - Net $ 2,287,427
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 six months ended June 30, 2001, and 2000 is as follows: 2001 2000 Revenue $389,206 $382,920 Operating Expenses 100,926 188,326 Net Income $288,280 $194,594
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. -----END PRIVACY-ENHANCED MESSAGE-----