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 March 31, 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 2-83291
DSI REALTY INCOME FUND VII, A California Limited Partnership
(Exact name of registrant as specified in its charter)
California_______________________________________95-3871044
(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 March 31, 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 March 31, 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 March 31, 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: April 27, 2001 DSI REALTY INCOME FUND VII
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: April 27, 2001 DSI REALTY INCOME FUND VII
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
April 27, 2001
QUARTERLY REPORT TO THE LIMITED PARTNERS
OF DSI REALTY INCOME FUND VII
DEAR LIMITED PARTNERS:
We are pleased to enclose the Partnership's unaudited financial statements
for the period ended March 31, 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 March 31, 2001 and 2000, total revenues
increased 13.7% from $541,527 to $615,684, total expenses decreased 25.0% from
$392,444 to $294,344 and other income decreased from $1,708 to $1,450. As a
result, net income increased 214.1% from $150,791 for the three-month period
ended March 31, 2000, to $322,790 for the same period in 2001. Occupancy levels
for the Partnership's six mini-storage facilities averaged 90.7% for the three
month period ended March 31, 2001, and 80.1% for the period in 2000. Rental
revenue increased primarily as a result of higher occupancy and unit rental
rates. The Partnership is continuing its marketing effort to attract and keep
new tenants in its various mini-storage facilities. Operating expenses de-
creased approximately $97,500 (29.8%) primarily as a result of a decrease in
depreciation as the Partnership's property is fully depreciated. Other vari-
ations in operating expenses includes decreases in yellow pages advertising
costs and workers compensation insurance expenses and increases in repairs and
maintenance, property management fees, salary and wages and security alarm
services expenses. General and administrative expenses remained relatively
constant.
The General Partners will continue their policy of funding the continuing
improvement 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 VII, P.O. Box 357,
Long Beach, California 90801.
Very truly yours,
DSI REALTY INCOME FUND VII
By: DSI Properties, Inc., as
General Partner
By /s/ Robert J. Conway
____________________________
ROBERT J. CONWAY, President
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
BALANCE SHEETS(UNAUDITED)
MARCH 31, 2001 AND DECEMBER 31, 2000
March 31, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $ 562,970 $ 468,842
PROPERTY, NET 2,106,924 2,089,800
OTHER ASSETS 44,588 44,588
TOTAL $2,714,482 $2,603,230
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 652,274 $ 621,388
PARTNERS' EQUITY (DEFICIT):
General Partners (87,146) (87,950)
Limited Partners 2,149,354 2,069,792
Total partners' equity 2,062,208 1,981,842
TOTAL $2,714,482 $2,603,230
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
March 31, March 31,
2001 2000
REVENUES:
Rental Income $ 615,684 $ 541,527
EXPENSES:
Operating 229,500 327,022
General and administrative 64,844 65,422
Total expenses 294,344 392,444
OPERATING INCOME $ 321,340 $ 149,083
OTHER INCOME
Interest 1,450 1,708
NET INCOME 322,790 150,791
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 319,562 $ 149,283
General partners 3,228 1,508
TOTAL $ 322,790 $ 150,791
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 13.32 $ 6.22
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 THREE MONTHS ENDED MARCH 31, 2001 AND 2000
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2000 ($86,270) $2,236,131 $2,149,861
NET INCOME 1,508 149,283 150,791
DISTRIBUTIONS (2,424) (240,000) (242,424)
BALANCE AT MARCH 31, 2000 ($87,186) $2,145,414 $2,058,228
BALANCE AT JANUARY 1, 2001 ($87,950) $2,069,792 $1,981,842
NET INCOME 3,228 319,562 322,790
DISTRIBUTIONS (2,424) (240,000) (242,424)
BALANCE AT MARCH 31, 2001 ($87,146) $2,149,354 $2,062,208
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
March 31, March 31,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 322,790 $ 150,791
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 1,000 127,327
Changes in assets and
liabilities:
Increase(decrease) in
liabilities 30,886 (25,965)
Net cash provided by
operating activities 354,676 252,153
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property
and equipment (18,124) 0
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (242,424) (242,424)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 94,128 9,729
CASH AND CASH EQUIVALENTS:
At beginning of period 468,842 525,003
At end of period $ 562,970 $ 534,732
See accompanying notes to financial statements(unaudited).
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
DSI Realty Income Fund VII (the "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 March 31, 2001, and for
the periods ended March 31, 2001, and 2000 is unaudited. Such financial
information includes all adjustments which are considered necessary by the
Partnership's management for a fair presentation of the results for the
periods indicated.
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 15 years. The total cost of property and
accumulated depreciation at March 31, 2001, is as follows:
Land $ 2,089,800
Buildings and equipment 7,703,647
Equipment 60,760
Total 9,854,207
Less: Accumulated Depreciation ( 7,747,283)
Property - Net $ 2,106,924
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.