-----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, WGV9+0vM8Zrs0dBvbZS5vrHa8bsqPpFsbMsp2+/0oKNotds2tXWJ8lcs7+1IfChu SPaAlDDLefRjmhEHbpSzaw== 0000318835-01-500030.txt : 20020410 0000318835-01-500030.hdr.sgml : 20020410 ACCESSION NUMBER: 0000318835-01-500030 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011114 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: 1789026 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 dsi08901.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 September 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_______________________________________33-0050204 (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 September 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 September 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 September 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: October 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 there unto duly authorized. Dated: October 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 October 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 September 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 September 30, 2001 and 2000, total revenues increased 17.7% from $565,527 to $665,379 and total expenses decreased 29.1% from $374,986 to $266,021 and other income decreased from $1,917 to $1,107. Equity in income of the real estate joint venture increased 34.5% from $29,487 to $39,652. As a result, net income increased 98.3% from $221,945 to $440,117 for the three-month period ended September 30, 2001, as compared to the same period in 2000. Rental revenue increased as a result of higher unit rental rates. Occupancy levels for the Partnership's five mini-storage facilities averaged 90.2% for the three-month period ended September 30, 2001 as compared to 92.0% 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 $130,000 (39.1%) primarily as a result of lower salaries and wages, security alarm services and depreciation expenses, partially offset by increases in advertising, repairs and maintenance and property management fees expenses. General and administrative expenses increased approximately $21,000 (49.6%) 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. 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 nine-month periods ended September 30, 2001, and 2000, total revenues increased 19.2% from $1,607,293 to $1,915,657 and total expenses decreased 30.2% from $1,071,669 to $748,042 and other income decreased from $5,207 to $4,045. Equity in income of the real estate joint venture increased 43.6% from $87,868 to $126,136. As a result, net income increased 106.4% from $628,699 to $1,297,796 for the nine-month period ended September 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 $353,100 (39.1%) primarily as a result of decreases in repairs and maintenance, workers compensation insurance, security alarm services and depreciation expenses, partially offset by increases in advertising, 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 $29,400 (17.5%) primarily as a result of higher incentive management fees partially offset by a a decrease in equipment and computer lease expenses. The increase in incentive management fees was discussed above. The increase in equity in income from the real estate joint venture was also 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 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) SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
September 30, December 31, 2001 2000 ASSETS CASH AND CASH EQUIVALENTS $1,026,504 $ 514,497 PROPERTY, Net 2,287,427 2,287,427 INVESTMENT IN REAL ESTATE JOINT VENTURE 181,710 176,774 OTHER ASSETS 66,938 60,938 TOTAL $3,562,579 $3,039,636 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 689,153 $ 645,825 PARTNERS' EQUITY (DEFICIT): General Partners (79,047) (83,844) Limited Partners 2,952,473 2,477,655 Total partners' equity 2,873,426 2,393,811 TOTAL $3,562,579 $3,039,636 See accompanying notes to financial statements(unaudited). STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000 September 30, September 30, 2001 2000 REVENUES: Rental $ 665,379 $ 565,527 EXPENSES: Operating 202,564 332,560 General and administrative 63,457 42,426 Total expenses 266,021 374,986 OPERATING INCOME 399,358 190,541 OTHER INCOME Interest 1,107 1,917 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 400,465 192,458 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 39,652 29,487 NET INCOME $ 440,117 $ 221,945 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 435,716 $ 219,726 General partners 4,401 2,219 TOTAL $ 440,117 $ 221,945 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 18.15 $ 9.16 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, 2001 AND 2000 September 30, September 30, 2001 2000 REVENUES: Rental $1,915,657 $1,607,293 EXPENSES: Operating 550,975 904,034 General and administrative 197,067 167,635 Total expenses 748,042 1,071,669 OPERATING INCOME 1,167,615 535,624 OTHER INCOME Interest 4,045 5,207 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 1,171,660 540,831 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 126,136 87,868 NET INCOME $1,297,796 $628,699 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners 1,284,818 622,412 General Partners 12,978 6,287 TOTAL 1,297,796 628,699 NET INCOME PER LIMITED PARTNERSHIP UNIT $53.53 $25.93 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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2000 ($81,721) $2,687,867 $2,606,146 NET INCOME 6,287 622,412 628,699 DISTRIBUTIONS (8,181) (810,000) (818,181) BALANCE AT SEPTEMBER 30, 2000 ($83,615) $2,500,279 $2,416,664 BALANCE AT JANUARY 1, 2001 ($83,844) $2,477,655 $2,393,811 NET INCOME 12,978 1,284,818 1,297,796 DISTRIBUTIONS (8,181) (810,000) (818,181) BALANCE AT SEPTEMBER 30, 2001 ($79,047) $2,952,473 $2,873,426 See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30, 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,297,796 $628,699 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 0 351,850 Equity in earnings of real estate joint venture (126,136) (87,868) Distributions from real estate joint venture 121,200 129,300 Changes in assets and liabilities: Increase in other assets (6,000) 0 (Decrease)increase in liabilities 43,328 34,238 Net cash provided by operating activities 1,330,188 1,056,219 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (818,181) (818,181) NET INCREASE IN CASH AND CASH EQUIVALENTS 512,007 238,038 CASH AND CASH EQUIVALENTS: At beginning of period 514,497 483,308 At end of period $1,026,504 $ 721,346 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 September 30, 2001, and for the periods ended September 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 September 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 nine months ended September 30, 2001, and 2000 is as follows: 2001 2000 Revenue $590,984 $583,083 Operating Expenses 170,530 290,192 Net Income $420,454 $292,891
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-----