-----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, Oq/6+9Nrm3mZXTURMeYW979IxatloP/Kd39gNAaZOP3LwnjBLwVEw7VclhBhjA1p DtZRzJSugLO3D0Y1J6gyBw== 0000764586-98-000005.txt : 19981118 0000764586-98-000005.hdr.sgml : 19981118 ACCESSION NUMBER: 0000764586-98-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 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: 98749481 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 September 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_______________________________________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, 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 September 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 September 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: October 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: October 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 October 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 September 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 September 30, 1998 and 1997, total revenues increased 11.6% from $430,542 to $480,504 and total expenses increased 7.7% from $285,306 to $307,377. Equity in income of the real estate joint venture increased 28.8% from $24,611 to $31,688. As a result, net income increased 20.6% from $169,847 to $204,815 for the three-month period ended September 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 85.3% for the three month period ended September 30, 1998 as compared to 86.8% for the same period in 1997. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage mini-storage facilities. Operating expenses increased approximately $18,200 (7.3%) primarily as a result of higher real estate tax expenses and property management fees, partially offset by lower yellow pages advertising costs. 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 $3,900 (10.4%) primarily as a result of higher incentive management. 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 nine-month periods ended September 30, 1998, and 1997, total revenues increased 12.6% from $1,273,012 to $1,433,539 and total expenses increased 2.3% from $923,026 to $944,571. Equity in income of the real estate joint venture increased 25.7% from $66,421 to $83,512. As a result, net income increased 37.5% from $416,407 to $572,480 for the nine-month period ended September 30, 1998, as compared to the same period in 1997. Rental revenue increased as a result of higher unit rental rates. Operating expenses increased approximately $3,100 (0.4%) primarily as a result of increases in real estate tax expenses and property management fees, partially offset by decreases yellow pages advertising costs and legal 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 $18,400 (13.0%) 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 yellow pages advertising costs and 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 disposition, neither cash flow from nor the value of the remaining 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 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 beiieve 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) SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
September 30, December 31, 1998 1997 ASSETS CASH AND CASH EQUIVALENTS $ 602,547 $ 399,704 PROPERTY 3,017,303 3,387,178 INVESTMENT IN REAL ESTATE JOINT VENTURE 276,261 313,650 OTHER ASSETS 31,604 31,604 TOTAL $3,927,715 $4,132,136 LIABILITIES AND PARTNERS' EQUITY LIABILITIES $ 653,730 $ 612,450 PARTNERS' EQUITY: General Partners (75,040) (72,584) Limited Partners 3,349,025 3,592,270 Total partners' equity 3,273,985 3,519,686 TOTAL $3,927,715 $4,132,136 See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 REVENUES: Rental Income $ 477,908 $ 428,743 Interest 2,596 1,799 Total revenues 480,504 430,542 EXPENSES: Operating Expenses 265,825 247,659 General and administrative 41,552 37,647 Total expenses 307,377 285,306 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 173,127 145,236 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 31,688 24,611 NET INCOME $ 204,815 $ 169,847 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 202,767 $ 168,149 General partners 2,048 1,698 TOTAL $ 204,815 $ 169,847 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 8.45 $ 7.01 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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 REVENUES: Rental Income $1,379,910 $1,267,821 Gain on sale of land 46,974 0 Interest 6,655 5,191 Total Revenues 1,433,539 1,273,012 EXPENSES: Operating Expenses 784,288 781,159 General and Administrative 160,283 141,867 Total Expenses 944,571 923,026 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 488,968 349,986 EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 83,512 66,421 NET INCOME $572,480 $416,407 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners 566,755 412,243 General Partners 5,725 4,164 TOTAL 572,480 416,407 NET INCOME PER LIMITED PARTNERSHIP UNIT $23.61 $17.18 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 24,000 24,000 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
GENERAL LIMITED PARTNERS PARTNERS TOTAL EQUITY AT JANUARY 1, 1997 ($ 67,560) $4,089,606 $4,022,046 NET INCOME 4,164 412,243 416,407 DISTRIBUTIONS (8,181) (810,000) (818,181) EQUITY AT SEPTEMBER 30, 1997 ($71,577) $3,691,849 $3,620,272 EQUITY AT JANUARY 1, 1998 ($72,584) $3,592,270 $3,519,686 NET INCOME 5,725 566,755 572,480 DISTRIBUTIONS (8,181) (810,000) (818,181) EQUITY AT SEPTEMBER 30, 1998 ($75,040) $3,349,025 $3,273,985 See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 572,480 $416,407 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 351,850 351,850 Gain on sale of land (46,974) 0 Distributions in excess of earnings in real estate joint venture 37,388 36,779 Changes in assets and liabilities: Increase in liabilities 41,280 50,168 Net cash provided by operating activities 956,024 855,204 CASH FLOWS FROM INVESTING ACTIVITIES - Proceeds from sale of land 65,000 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (818,181) (818,181) NET INCREASE IN CASH AND CASH EQUIVALENTS 202,843 37,023 CASH AND CASH EQUIVALENTS: At beginning of period 399,704 389,413 At end of period $ 602,547 $426,436 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, 1998, and for the periods ended September 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 September 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 ( 6,364,309) Property - Net $ 3,017,303
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, 1998, and 1997 is as follows: 1998 1997 Revenue $536,966 $489,546 Operating Expenses 258,593 268,143 Net Income $278,373 $221,403
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 SEP-30-1998 DEC-31-1998 602,547 0 0 0 0 0 0 0 0 0 0 0 9381612 0 6364309 0 3927715 0 0 0 0 0 0 0 0 0 0 0 0 0 3927715 0 1379910 0 1433539 0 0 0 0 0 0 0 0 0 0 0 572480 0 0 0 572480 0 0 0 0 0 0 0 572480 0 0 0 0 0
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