UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities and Exchange Act of 1934
For the quarterly period ended March 31, 2014
[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ________________ to _______________
Commission File No. 2-83291.
DSI REALTY INCOME FUND VII
a California Limited Partnership
| California | 95-3871044 | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
6700 E. Pacific Coast Hwy., Long Beach, California 90803
(Address of principal executive offices)
Registrant’s telephone number, including area code (562) 493-8881
Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of theSecurities 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 [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
The issuer is a limited partnership. All 24,000 limited partnership units originally sold for $500.00 per unit. There is no trading market for the limited partnership units.
Certain statements contained in this discussion or elsewhere in this report may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words and phrases such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “designed to achieve”, variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future – including statements relating to rent and occupancy growth, general conditions in the geographic areas where we operate – are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict.
Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Many of the factors that may affect outcomes and results are beyond our ability to control.
PART I – FINANCIAL INFORMATION
ITEM 1. Financial Statements
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
| CONDENSED BALANCE SHEETS | ||
| As of | As of | |
March 30, 2014 | December 31, 2013 | |
| (Unaudited) | ||
| ASSETS: | ||
| Cash | $ 261,342 | $ 348,465 |
| Property Net | 1,752,918 | 1,735,052 |
| Uncollected Rental Revenue | 65,635 | 55,818 |
| Prepaid Advertising | 1,396 | 1,396 |
| Other Assets | 68,433 | 20,000 |
| TOTAL ASSETS | $2,149,724 | $2,160,731 |
| LIABILITIES AND PARTNERS' EQUITY | ||
| LIABILITIES: | ||
| Distribution due to Partners | $151,515 | $151,515 |
| Incentive Management Fee Liability | 9,028 | 32,955 |
| Property Management Fee Liability-related party | 8,986 | 7,739 |
| Deferred Income | 50,569 | 55,277 |
| Accrued Expenses | 58,523 | 58,086 |
| Other Liabilities | 24,912 | 11,692 |
| Total Liabilities | 303,533 | 317,264 |
| PARTNERS' EQUITY: | ||
| General Partners | (89,309) | (89,336) |
| Limited Partners | 1,935,500 | 1,932,803 |
| Total Partners' Equity | 1,846,191 | 1,843,467 |
| TOTAL LIABILITIES AND PARTNERS’ EQUITY | $ 2,149,724 | $ 2,160,731 |
The accompanying notes are an integral part of these unaudited condensed financial statements.
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
| Condensed Statements of Income (Unaudited) | Three Months Ended | |
| March 31, 2014 | March 31, 2013 | |
| REVENUES: | ||
| Self-storage rental income | $ 507,254 | $ 444,564 |
| Ancillary operating revenue | 24,868 | 34,029 |
| Interest and other income | 0 | 0 |
| TOTAL | 532,122 | 478,593 |
| EXPENSES: | ||
| Depreciation | 2,321 | 3,183 |
| Operating | 247,495 | 215,501 |
| General and administrative | 93,043 | 76,483 |
| General partners' incentive management fee | 9,028 | 11,837 |
| Property management fee | 25,996 | 24,471 |
| Total | 377,883 | 331,475 |
| NET INCOME | $ 154,239 | $ 147,117 |
| AGGREGATE INCOME ALLOCATED TO: | ||
| General partners | $ 1,542 | $ 1,471 |
| Limited partners | 152,697 | 145,646 |
| TOTAL | $ 154,239 | $ 147,117 |
| Weighted average limited partnership units outstanding | 24,000 | 24,000 |
| NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP PER LIMITED PARTNERSHIP UNIT | $ 6.36 | $ 6.07 |
The accompanying notes are an integral part of these unaudited condensed financial statements.
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
UNAUDITED CONDENSED STATEMENTS OF CHANGES IN PARTNERS’ EQUITY (DEFICIT)
| |||
General Partners | Limited Partners | Total | |
| BALANCE, December 31, 2013 (Audited) | $(89,336) | $1,932,803 | $1,843,467 |
| Net Income Allocation | 1,542 | 152,697 | 154,239 |
| Distributions | (1,515) | (150,000) | (151,515) |
| BALANCE, March 31, 2014 | $(89,309) | $1,935,500 | $1,846,191 |
The accompanying notes are an integral part of these unaudited condensed financial statements.
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
| UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | ||
Three months ended March 31, | ||
| 2014 | 2013 | |
| OPERATING ACTIVITIES: | ||
| Net income attributable to the Partnership | $ 154,239 | $ 147,117 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation | 2,321 | 3,183 |
| Changes in assets and liabilities: | ||
| Other assets | (58,250) | (33,040) |
| Incentive management fee payable to General Partners | (23,927) | 11,837 |
| Property management fees payable | 1,247 | 390 |
| Customer deposits and other liabilities | 8,949 | (62,142) |
| Net cash provided by operating activities | 84,579 | 67,345 |
| INVESTING ACTIVITIES: | ||
| Additions to property | (20,187) | - |
| Net cash used in investing activities | (20,187) | - |
| FINANCING ACTIVITIES: | ||
| Distributions to partners | (151,515) | (151,515) |
| Net cash used in financing activities | (151,515) | (151,515) |
| NET DECREASE IN CASH | (87,123) | (84,170) |
| CASH AT BEGINNING OF PERIOD | 348,465 | 412,303 |
| CASH AT END OF PERIOD | $ 261,342 | $ 328,133 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
| Cash paid for interest | $0 | $0 |
| NON CASH INVESTING AND FINANCING ACTIVITIES: | ||
| Distributions due partners included in partners’ equity | $151,515 | $151,515 |
The accompanying notes are an integral part of these unaudited condensed financial statements.
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
March 31, 2014
1. GENERAL
Registrant, DSI Realty Income Fund VII (the “Partnership”) is a publicly-held limited partnership organized under the California Uniform Limited Partnership Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter referred to as “Agreement”) dated August 1, 1983. The General Partners are DSI Properties, Inc., a California corporation, and RJC Capital Management, LLC and JWC Capital Management, LLC.
DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, Registrant sold twenty-four thousand (24,000) units of limited partnership interests aggregating Twelve Million Dollars ($12,000,000). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions) without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future.
The Partnership has acquired mini-storage facilities located in Chico, Fairfield, La Verne, and Riverside, California and Littleton, Colorado. All facilities were purchased from Dahn Corporation (“Dahn”). Dahn is not affiliated with the Partnership. Dahn is affiliated with other partnerships in which DSI Properties, Inc. is a general partner.
The accompanying unaudited interim financial statements have been prepared by the Partnership’s management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited interim financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These unaudited interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013.
Significant Accounting Policies
The Partnership has adoptedAccounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the three months ended March 31, 2014 and 2013 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of March 31, 2014 and December 31, 2013, accumulated other comprehensive income was $0.
ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. The Partnership considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.
Recent Accounting Pronouncements
In April 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-07 Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting, in order to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Partnership does not expect the adoption of the standard update to have a material impact on its financial position or results of operations.
In February 2013, the FASB issued ASU 2013-04 Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, in order to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Partnership does not expect the adoption of the standard update to have a material impact on its financial position or results of operations.
2. PROPERTY
Properties owned by the Partnership are all mini-storage facilities. Depreciation is calculated using the straight-line method over the estimated useful life of 20 years. Property under capital leases is amortized over the lives of the respective leases. The total cost of property and accumulated depreciation at March 31, 2014 and December 31, 2013, were as follows:
| March 31, 2014 | December 31, 2013 | |
| Land | $ 1,714,700 | $ 1,714,700 |
| Buildings and improvements | 6,476,310 | 6,456,123 |
| Rental trucks under capital leases | 140,093 | 140,093 |
| Total | $ 8,331,103 | $ 8,310,916 |
| Less accumulated depreciation | (6,578,185) | (6,575,864) |
| Property – net | $ 1,752,918 | $ 1,735,052 |
3. 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.
4. ALLOCATION OF PROFITS AND LOSSES AND GENERAL PARTNERS' INCENTIVE MANAGEMENT FEE
Under the Agreement of Limited Partnership, the general partners are to be allocated 1% of the net profits or losses from operations, and the limited partners are to be allocated the balance of the net profits or losses from operations in proportion to their limited partnership interests. The general partners are also entitled to receive a percentage, based on a predetermined formula, of any cash distribution from the sale, other disposition, or refinancing of the project.
In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership. The fee is to be paid in an amount equal to 9% per annum of the cash available for distribution on a cumulative basis, calculated as cash generated from operations less capital expenditures.
5. RELATED-PARTY TRANSACTIONS
The Partnership has entered into a management agreement with Dahn to operate its mini-storage facilities. The management agreement provides for a management fee equal to 5% of gross revenue from operations, which is defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreement is renewable annually. Dahn earned management fees equal to $25,996 and $24,471, for thethreemonth period ended March 31, 2014 and 2013, respectively. Amounts payable to Dahn at September 30, 2014 and December 31, 2013 were $8,986 and $7,739, respectively.
Beginning in July 2011, the General Partner, DSI Properties, Inc. performs all tax related work with respect to the Partnership. These services are paid monthly in theamount of $3,826. Tax fees paid to DSI Properties, Inc. for the three month period ended March 31, 2014 and 2013 were $11,478.
6. SUBSEQUENT EVENTS
As part of our ongoing due-diligence process as General Partners, you are being advised that the various DSI Limited Partnerships in which you may be an investor (the “Partnerships”) are in the process of obtaining an open market valuation of their self storage properties portfolio (the “Properties”). In this regard, The Partnerships have retained Bancap Self Storage Group, Inc. (“Bancap”) as their valuation consultant. Bancap is an industry leader in self storage property sales and marketing, and is uniquely positioned to obtain the best indication of potential market value.
Once the analysis has been completed, your General Partners will inform you as to the strategic options that may be available so that any recommendation can be presented to Limited Partners of the respective Partnerships.
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Critical Accounting Policies
Revenue recognition - Revenue is recognized using the accrual method based on contractual amounts provided for in the lease agreements, which approximates recognition on a straight-line basis. The term of the lease agreements is usually less than one year.
RESULTS OF OPERATIONS
2014 COMPARED TO 2013
For the three-month periods ended March 31, 2014 and 2013, revenues increased 11.2% to $532,122 from $478,592 and total expenses increased 14.0% to $377,883 from $331,475 resulting in an increase in net income of 4.8% to $154,239 from $147,117. Rental revenues increased primarily as a result of higher unit rental rates. Occupancy levels for the Partnership's mini-storage facilities averaged 83.5% for the three-month period ended March 31, 2014,compared to67.3% for the same period in 2013.Operating expenses increased $31,994 or 14.8% primarily due to increases in advertising and repair and maintenance; partially offset by a decrease in ground maintenance expenses.General and administrative expenses increased $16,560 or 21.7% primarily as a result of a increase in legal and professional and office supplies expenses.
The General Partners plan to continue their policy of funding the continuing improvement and maintenance of Partnership properties with cash generated from operations. In addition, the Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities.
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
Not required.
ITEM 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The Partnership’s management, with the participation of the principal executive officer and principal financial officer of DSI Properties, Inc., its General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the principal executive officer and principal financial officer of the General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting.
There have been no significant changes in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the reporting period that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.
PART II – OTHER INFORMATION
ITEM 1. Legal Proceedings
Registrant is not a party to any material pending legal proceedings.
ITEM 1A. Risk Factors
Not required.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. (Removed and Reserved)
ITEM 5. Other Information
None.
ITEM 6. Exhibits
(a) Exhibits
31.1 Rule 13a-14(a)/15d-14(a) Certification: Principal Executive Officer
31.2 Rule 13a-14(a)/15d-14(a) Certification: Principal Financial Officer
32.1 Section 1350 Certification: Principal Executive Officer
32.2 Section 1350 Certification: Principal Financial Officer
101.INS XBRL Instance Document*
101.SCH XBRL Taxonomy Extension Schema Document*
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB XBRL Taxonomy Extension Label Linkbase Document*
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document*
*Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under
those sections.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DSI REALTY INCOME FUND VII,
a California Limited Partnership
by: DSI Properties, Inc., a California Corporation, as General Partner
By: /s/ ROBERT J. CONWAY
Dated: May 15, 2014
ROBERT J. CONWAY,President
(Chief Executive Officer and Director)
By: /s/ RICHARD P. CONWAY
Dated: May 15, 2014
RICHARD P. CONWAY,Executive Vice President
(Chief Financial Officer and Director)
EXHIBIT 31.1
Rule 13a-14(a)/15d-14(a) Certification
I, Robert J. Conway, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of DSI Realty Income Fund VII;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
/s/ ROBERT J. CONWAY
Robert J. Conway
President of DSI Properties, Inc.,
General Partner (chief executive officer)
May 15, 2014
EXHIBIT 31.2
Rule 13a-14(a)/15d-14(a) Certification
I, Richard P. Conway, certify that:
1. I have reviewed this Quarterly Report on Form 10-Q of DSI Realty Income Fund VII;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
/s/ RICHARD P. CONWAY
Richard P. Conway
Executive Vice President of DSI Properties, Inc.,
General Partner (chief financial officer)
May 15, 2014
EXHIBIT 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund VII (the "Partnership") on Form 10-Q for the period ending March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert J. Conway, President of DSI Properties, Inc., General Partner of the Partnership, and performing the functions of chief executive officer of the Partnership, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.
/s/ ROBERT J. CONWAY
Robert J. Conway
President of DSI Properties, Inc.,
General Partner (chief executive officer)
May 15, 2014
EXHIBIT 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund VII (the "Partnership") on Form 10-Q for the period ending March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard P. Conway, Executive Vice President of DSI Properties, Inc., General Partner of the Partnership, and performing the functions of chief financial officer of the Partnership, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.
/s/ RICHARD P. CONWAY
Richard P. Conway
Executive Vice President of DSI Properties, Inc.,
General Partner (chief financial officer)
May 15, 2014