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, 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 June 30, 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 June 30, 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 June 30, 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: July 31, 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: July 31, 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
July 31, 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 June 30, 2001. The following is Management's
discussion and analysis of the Partnership's financial condition and
results of its operations.
For the three month period ended June 30, 2001, and 2000, total revenues
increased 10.0% from $584,337 to $642,992 and total expenses decreased 26.4%
from $398,031 to $293,122 and other income decreased from $2,065 to $1,194.
As a result, net income increased 86.4% from $188,371 for the three-month
period ended June 30, 2000, to $351,064 for the same period in 2001. Rental
revenue increased primarily as a result of higher occupancy and unit rental
rates. Occupancy levels for the Partnership's six mini-storage facilities
averaged 92.4% for the three-month period ended June 30, 2001 and 87.1% 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 decreased approximately $103,400 (30.2%) primarily as a
result of decreases in depreciation and maintenance and repair expenses,
partially off-set by increases property management fees and salaries and wage
expenses. Property management fees, which are based on rental income, increased
as a result of the increase in rental revenue. There was a substantial
decrease in depreciation expense, as the Partnership's properties are fully
depreciated. General and administrative expenses remained relatively constant.
For the six month periods ended June 30, 2001, and 2000, total revenues
increased 11.8% from $1,125,864 to $1,258,676 and total expenses decreased
25.7% from $790,475 to 587,466 and other income decreased from $3,773 to
$2,644. As a result, net income increased 98.7% from $339,162 for the six
months ended June 30, 2000, to $673,854 for the same period in 2001. Rental
revenue increased primarily as a result of higher occupancy and unit rental
rates. Operating expenses decreased approximately $200,900 (30.0%) primarily
due to decreases in yellow pages advertising costs, workers compensation
insurance expenses and depreciation, partially offset by increases in property
management fees, salaries and wage and security alarm services expenses. The
increase in property management fees and decrease in depreciation was discussed
above. General and administrative expenses remained relatively constant.
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.
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)
JUNE 30, 2001 AND DECEMBER 31, 2000
June 30, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $ 611,017 $ 468,842
PROPERTY, Net 2,089,800 2,089,800
OTHER ASSETS 52,588 44,588
TOTAL $2,753,405 $2,603,230
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 582,557 $ 621,388
PARTNERS' EQUITY (DEFICIT):
General Partners (86,059) (87,950)
Limited Partners 2,256,907 2,069,792
Total partners' equity 2,170,848 1,981,842
TOTAL $2,753,405 $2,603,230
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
June 30, June 30,
2001 2000
REVENUES:
Rental income $ 642,992 $ 584,337
EXPENSES:
Operating 238,910 342,332
General and administrative 54,212 55,699
Total expenses 293,122 398,031
OPERATING INCOME $ 349,870 $ 186,306
OTHER INCOME
Interest 1,194 2,065
NET INCOME $ 351,064 $ 188,371
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 347,553 $ 186,487
General Partners 3,511 1,884
TOTAL $ 351,064 $ 188,371
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 14.48 $ 7.77
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, 2001 AND 2000
June 30, June 30,
2001 2000
REVENUES:
Rental $1,258,676 $1,125,864
EXPENSES:
Operating 478,214 669,354
General and administrative 119,056 121,121
Total expenses 597,270 790,475
OPERATING INCOME $ 661,406 $ 335,389
OTHER INCOME
Interest 2,644 3,773
NET INCOME $ 664,050 $ 339,162
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 667,115 $ 335,770
General Partners 6,739 3,392
TOTAL $ 673,854 $ 339,162
NET INCOME PER LIMITED
PARTNERSHIP UNIT $27.80 $13.99
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 SIX MONTHS ENDED JUNE 30, 2001 AND 2000
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2000 ($86,270) $2,236,131 $2,149,861
NET INCOME 3,392 335,770 339,162
DISTRIBUTIONS (4,848) (480,000) (484,848)
BALANCE AT JUNE 30, 2000 ($87,726) $2,091,901 $2,004,175
BALANCE AT JANUARY 1, 2001 ($87,950) $2,069,792 $1,981,842
NET INCOME 6,739 667,115 673,854
DISTRIBUTIONS (4,848) (480,000) (484,848)
BALANCE AT JUNE 30, 2001 ($86,059) $2,256,907 $2,170,848
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
June 30, June 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 673,854 $ 339,162
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 0 254,653
Changes in assets and
liabilities:
Increase in other assets (8,000) 0
Decrease in liabilities (38,831) (19,956)
Net cash provided by
operating activities 619,219 573,859
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (484,848) (484,848)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 142,175 89,011
CASH AND CASH EQUIVALENTS:
At beginning of period 468,842 525,003
At end of period $ 611,017 $ 614,014
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 June 30, 2001, and for
the periods ended June 30, 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 June 30, 2001, is as follows:
Land $ 2,089,800
Buildings and equipment 7,685,522
Equipment 60,760
Total 9,836,082
Less: Accumulated Depreciation ( 7,746,282)
Property - Net $ 2,089,800
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.