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 2-90168
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 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 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: July 31, 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
July 31, 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 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 periods ended June 30, 2001 and 2000, total revenues
increased 19.4% from $529,876 to $632,472 and total expenses decreased 30.5%
from $349,035 to $242,426 and other income decreased from $1,800 to $1,377.
Equity in income of the real estate joint venture increased 64.5% from
$26,189 to $43,090. As a result, net income increased 108.1% from 208,830
to $434,513 for the three-month period ended June 30, 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 Partnership's five
mini-storage facilities averaged 92.5% for the three-month period ended
June 30, 2001 as compared to 87.3% 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 $110,500 (37.4%) primarily as a result of lower maintenance and
repair, workers compensation insurance and depreciation expenses, partially
offset by increases in advertising costs, property management fees and salary
and wage expenses. General and administrative expenses increased approxi-
mately $3,900 (7.3%) primarily as a result of relatively insignificant
fluctuations in various expense accounts. Equity in income from the real
estate joint venture increased as a result of lower operating expenses at
that facility, primarily as a result of a decrease in depreciation expense
due to the property being fully depreciated as of December 31, 2000.
For the six month periods ended June 30, 2001, and 2000, total revenues
increased 20.0% from $1,041,767 to $1,250,278 and total expenses decreased
30.9% from $696,683 to $482,021 and other income decreased from $3,290 to
$2,938. Equity in income of the real estate joint venture increased 48.1%
from $58,380 to $86,484. As a result, net income increased 110.9% from
$406,754 to $857,679 for the six-month period June 30, 2001, as compared
to the same period in 2000. Rental revenue increased as a result of higher
occupancy and unit rental rates. Operating expenses decreased approximately
$223,100 (39.0%) primarily as a result of decreases in repairs and mainten-
ance, workers compensation insurance and depreciation expenses, partially off-
set by increases in advertising costs, property management fees and salaries
and wages 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 $8,400 (6.7%) primarily as
a result of higher incentive management fees partially offset by a decrease
in equipment and computer lease expenses. The increase in equity in income
from the real estate joint venture was discussed above.
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 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)
JUNE 30, 2001 AND DECEMBER 31, 2000
June 30, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $ 811,241 $ 514,497
PROPERTY, Net 2,287,427 2,287,427
INVESTMENT IN REAL ESTATE
JOINT VENTURE 182,858 176,774
OTHER ASSETS 66,938 60,938
TOTAL $3,348,464 $3,039,636
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 642,428 $ 645,825
PARTNERS' EQUITY (DEFICIT):
General Partners (80,722) (83,844)
Limited Partners 2,786,758 2,477,655
Total partners' equity 2,706,036 2,393,811
TOTAL $3,348,464 $3,039,636
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 $ 632,472 $ 529,876
EXPENSES:
Operating 184,909 295,434
General and administrative 57,517 53,601
Total expenses 242,426 349,035
OPERATING INCOME 390,046 180,841
OTHER INCOME
Interest 1,377 1,800
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 391,423 182,641
EQUITY IN INCOME OF REAL ESTATE
JOINT VENTURE 43,090 26,189
NET INCOME $ 434,513 $ 208,830
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 430,168 $ 206,742
General Partners 4,345 2,088
TOTAL $ 434,513 $ 208,830
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 17.92 $ 8.61
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 $1,250,278 $1,041,767
EXPENSES:
Operating 348,411 571,474
General and Administrative 133,610 125,209
Total Expenses 482,021 696,683
OPERATING INCOME 768,257 345,084
OTHER INCOME 2,938 3,290
INCOME BEFORE EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 771,195 348,374
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 86,484 58,380
NET INCOME $ 857,679 $ 406,754
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 849,102 $ 402,686
General Partners 8,577 4,068
TOTAL $ 857,679 $ 406,754
NET INCOME PER LIMITED PARTNERSHIP UNIT $35.38 $16.78
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 SIX MONTHS ENDED JUNE 30, 2001 AND 2000
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2000 ($81,721) $2,687,867 $2,606,146
NET INCOME 4,068 402,686 406,754
DISTRIBUTIONS (5,454) (540,000) (545,454)
BALANCE AT JUNE 30, 2000 ($83,107) $2,550,553 $2,467,446
BALANCE AT JANUARY 1, 2001 ($83,844) $2,477,655 $2,393,811
NET INCOME 8,577 849,102 857,679
DISTRIBUTIONS (5,455) (539,999) (545,454)
BALANCE AT JUNE 30, 2001 ($80,722) $2,786,758 $2,706,036
See accompanying notes to consolidated 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 $ 857,679 $ 406,754
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 0 234,566
Equity in earnings of
real estate joint venture (86,484) (58,380)
Distributions from real
estate joint venture 80,400 77,400
Changes in assets and
liabilities:
Increase in other assets (6,000) 0
(Decrease)increase in liabilities (3,397) 19,890
Net cash provided by
operating activities 842,198 680,230
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (545,454) (545,454)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 296,744 134,776
CASH AND CASH EQUIVALENTS:
At beginning of period 514,497 483,308
At end of period $ 811,241 $618,084
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 June 30, 2001, and for
the periods ended June 30, 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 June 30, 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
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 six months
ended June 30, 2001, and 2000 is as follows:
2001 2000
Revenue $389,206 $382,920
Operating Expenses 100,926 188,326
Net Income $288,280 $194,594
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.