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 2-90168
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 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 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: April 27, 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
April 27, 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 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 20.7% from $511,891 to $617,806, total expenses decreased 31.1%
from $347,648 to $239,595, other income increased from $1,490 to $1,561
and equity in income of the real estate joint venture increased 34.8%
from $32,189 to $43,394. As a result, net income increased 113.8% from
$197,922 to $423,166 for the three-month period ended March 31, 2001, as
compared to the same period in 2000. Rental revenue increased as a result
of higher occupancy and unit rental rates. Occupancy levels for the Part-
nership's five mini-storage facilities averaged 93.3% for the three month
period ended March 31, 2001, and 84.0% 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 de-
creased approximately $112,500 (40.8%) primarily as a result of lower
maintenance and repair, workers compensation insurance and depreciation
expenses, partially offset by increases in yellow pages advertising costs,
salaries and wages and property management fees expenses. The decrease
in depreciation is the result of the Partnership's properties being fully
depreciated. Property management fees, which are based on rental revenue,
increased as a result of the increase in rental revenue. General and
administrative expenses increased approximately $4,500 (6.3%) primarily as
a result of higher incentive management fees, partially offset by a decrease
in legal and professional and equipment and computer lease expenses. Incentive
management fees, which are based on cash available for distribution, increased
as a result of the increase in net income. Equity in income of real estate
joint venture increased as a result of lower operating expenses, primarily
as a result of a decrease in depreciation expense due to the Partnership's
properties being fully depreciated as of December 31, 2000.
The General Partners will continue their policy of funding continuing
improvement and maintenance of Partnership properties with cash generated
from operations. The Partnership's 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 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)
MARCH 31, 2001 AND DECEMBER 31, 2000
March 31, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $ 659,886 $ 514,497
PROPERTY, NET 2,287,427 2,287,427
INVESTMENT IN REAL ESTATE
JOINT VENTURE 179,968 176,774
OTHER ASSETS 60,938 60,938
TOTAL $3,188,219 $3,039,636
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 643,969 $ 645,825
PARTNERS' EQUITY (DEFICIT):
General Partners (82,339) (83,844)
Limited Partners 2,626,589 2,477,655
Total partners' equity 2,544,250 2,393,811
TOTAL $3,188,219 $3,039,636
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 $ 617,806 $ 511,891
EXPENSES:
Operating 163,502 276,040
General and administrative 76,093 71,608
Total expenses 239,595 347,648
OPERATING INCOME 378,211 164,243
OTHER INCOME
Interest 1,561 1,490
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE $ 379,772 $ 165,733
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 43,394 32,189
NET INCOME $ 423,166 $ 197,922
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 418,934 $ 195,943
General partners 4,232 1,979
TOTAL $ 423,166 $ 197,922
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 17.46 $ 8.16
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 ($81,721) $2,687,867 $2,606,146
NET INCOME 1,979 195,943 197,922
DISTRIBUTIONS (2,727) (270,000) (272,727)
BALANCE AT MARCH 31, 2000 ($82,469) $2,613,810 $2,531,341
BALANCE AT JANUARY 1, 2001 ($83,844) $2,477,655 $2,393,811
NET INCOME 4,232 418,934 423,166
DISTRIBUTIONS (2,727) (270,000) (272,727)
BALANCE AT MARCH 31, 2001 ($82,339) $2,626,589 $2,544,250
See accompanying notes to consolidated 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 $ 423,166 $ 197,922
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 0 117,283
Equity in earnings of real
estate joint venture (43,394) (32,189)
Distributions from real
estate joint venture 40,200 40,800
Changes in assets and
liabilities:
Increase in other assets 0 (5,715)
Increase in liabilities (1,856) (4,127)
Net cash provided by
operating activities 418,116 313,974
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property 0
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (272,727) (272,727)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 145,389 41,247
CASH AND CASH EQUIVALENTS:
At beginning of period 514,497 483,308
At end of period $ 659,886 $524,555
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 March 31, 2001, and for
the periods ended March 31, 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 March 31, 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
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 three months
ended March 31, 2001, and 2000 is as follows:
2001 2000
Revenue $191,391 $199,079
Operating Expenses 46,744 91,784
Net Income $144,647 $107,295
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.