-----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, GpISTwhRuXcz6ZV/e2WlFJp6dLev1+LTx9drj2vKv1CjF1fHpDqyBCNxWVWoJxQb B364Tp6SWTbj6a7OefwCtQ== 0000719581-99-000014.txt : 19990817 0000719581-99-000014.hdr.sgml : 19990817 ACCESSION NUMBER: 0000719581-99-000014 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 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: 99693152 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, 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 2-90168 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, 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 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, 1999 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, 1999 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, 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 June 30, 1999 and 1998, total revenues decreased 4.6% (see note below regarding gain on sale of land) from $503,890 to $480,549 and total expenses increased 4.4% from $312,578 to $326,419. Equity in income of the real estate joint venture increased 9.4% from $27,035 to $29,576. As a result, net income decreased 15.7% from $218,347 to $183,706 for the three-month period ended June 30, 1999, as compared to the same period in 1998. Rental revenue increased as a result of higher unit rental rates. Occupancy levels for the Partnership's five mini-storage facilities averaged 82.7% for the three month period ended June 30, 1999 as compared to 84.4% 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 increased approximately $16,400 (6.2%) primarily as a result of higher yellow pages and miscellaneous advertising costs, repairs and maintenance and security and alarm expenses, partially offset by lower real estate tax expense. General and administrative expenses decreased approximately $2,600 (5.4%) primarily as a result of lower legal and professional expense. 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, 1999, and 1998, total revenues increased 1.7% (see note below regarding gain on sale of land) from $953,035 to $969,240 and total expenses increased 6.3% from $637,194 to $677,620. Equity in income of the real estate joint venture increased 6.6% from $51,824 to $55,225. As a result, net income decreased 5.7% from $367,665 to $346,845 for the six-month period ended June 30, 1999, as compared to the same period in 1999, as compared to the same period in 1998.. Rental revenue increased as a result of higher unit rental rates. Operating expenses increased approximately $46,200 (8.9%) primarily as a a result of increases in yellow pages and miscellaneous advertising costs, repairs and maintenance, security and alarm service expenses and 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 decreased approximately $5,800 (4.9%) primarily as a result of lower legal and professional expense. Equity in income from the real estate joint venture increased as a result of higher rental revenue, partially offset by an increase in maintenance and repair expense. 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. 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 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, 1999 AND DECEMBER 31, 1998
June 30, December 31, 1999 1998 ASSETS CASH AND CASH EQUIVALENTS $ 516,243 $ 458,025 PROPERTY, Net 2,694,656 2,914,449 INVESTMENT IN REAL ESTATE JOINT VENTURE 255,115 262,590 OTHER ASSETS 33,513 33,442 TOTAL $3,499,527 $3,668,506 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 634,963 $ 605,333 PARTNERS' EQUITY (DEFICIT): General Partners (79,136) (77,150) Limited Partners 2,943,700 3,140,323 Total partners' equity 2,864,564 3,063,173 TOTAL $3,499,527 $3,668,506 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 $ 479,153 $ 454,693 Gain on sale of land 0 46,974 Interest 1,396 2,333 Total revenues 480,549 503,890 EXPENSES: Operating 280,457 264,009 General and administrative 45,962 48,569 Total expenses 326,419 312,578 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 154,130 191,312 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 29,576 27,035 NET INCOME $ 183,706 $ 218,347 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 181,869 $ 216,164 General Partners 1,837 2,183 TOTAL $ 183,706 $ 218,347 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 7.58 $ 9.01 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 $ 966,288 $ 902,002 Gain on sale of land 0 46,974 Interest 2,952 4,059 Total Revenues 969,240 953,035 EXPENSES: Operating Expenses 564,702 518,463 General and Administrative 112,918 118,731 Total Expenses 677,620 637,194 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 291,620 315,841 EQUITY IN INCOME OF REAL ESTATE FOINT VENTURE 55,225 51,824 NET INCOME $ 346,845 $ 367,665 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 343,377 $ 363,988 General Partners 3,468 3,677 TOTAL $ 346,845 $ 367,665 NET INCOME PER LIMITED PARTNERSHIP UNIT $14.31 $15.17 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, 1999 AND 1998
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 1998 ($72,584) $3,592,270 $3,519,686 NET INCOME 3,677 363,988 367,665 DISTRIBUTIONS (5,454) (540,000) (545,454) BALANCE AT JUNE 30, 1998 ($74,361) $3,416,258 $3,341,897 BALANCE AT JANUARY 1, 1999 ($77,150) $3,140,323 $3,063,173 NET INCOME 3,468 343,377 346,845 DISTRIBUTIONS (5,454) (540,000) (545,454) BALANCE AT JUNE 30, 1999 ($79,136) $2,943,700 $2,864,564 See accompanying notes to consolidated 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 $ 346,845 $ 367,665 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 234,567 234,566 Gain on sale of land (46,974) Equity in earnings of real estate joint venture (55,225) (51,824) Distributions from real estate joint venture 62,700 73,800 Changes in assets and liabilities: Increase in other assets (71) 0 Increase in liabilities 29,630 101 Net cash provided by operating activities 618,446 577,334 CASH FLOWS FROM INVESTING ACTIVITIES - Proceeds from Sale of land 65,000 Additions to property (14,774) CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (545,454) (545,454) NET INCREASE IN CASH AND CASH EQUIVALENTS 58,218 96,880 CASH AND CASH EQUIVALENTS: At beginning of period 458,025 399,704 At end of period $ 516,243 $496,584 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, 1999, and for the periods ended June 30, 1999, and 1998 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, 1999, is as follows: Land $ 2,287,427 Buildings and improvements 7,100,557 Equipment 22,831 Total 9,410,815 Less: Accumulated Depreciation ( 6,716,159) Property - Net $ 2,694,656
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, 1999, and 1998 is as follows: 1999 1998 Revenue $381,321 $345,427 Operating Expenses 197,236 172,681 Net Income $184,085 $172,746
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-31-1999 DEC-31-1999 JUN-30-1999 DEC-31-1999 516243 0 0 0 0 0 0 0 0 0 0 0 9410815 0 6716159 0 3499527 0 0 0 0 0 0 0 0 0 0 0 0 0 3499527 0 966288 0 969240 0 0 0 0 0 0 0 0 0 0 0 346845 0 0 0 346845 0 0 0 0 0 0 0 346845 0 0 0 0 0
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