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 September 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_______________________________________33-0050204
(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 September 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 September 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 September 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: October 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 there unto duly authorized.
Dated: October 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
October 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 September 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 September 30, 2001 and 2000, total
revenues increased 17.7% from $565,527 to $665,379 and total expenses decreased
29.1% from $374,986 to $266,021 and other income decreased from $1,917 to
$1,107. Equity in income of the real estate joint venture increased 34.5%
from $29,487 to $39,652. As a result, net income increased 98.3% from
$221,945 to $440,117 for the three-month period ended September 30, 2001, as
compared to the same period in 2000. Rental revenue increased as a result
of higher unit rental rates. Occupancy levels for the Partnership's
five mini-storage facilities averaged 90.2% for the three-month period
ended September 30, 2001 as compared to 92.0% 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
decreased approximately $130,000 (39.1%) primarily as a result of lower
salaries and wages, security alarm services and depreciation expenses,
partially offset by increases in advertising, repairs and maintenance and
property management fees expenses. General and administrative expenses
increased approximately $21,000 (49.6%) primarily as a result of an increase
in incentive management fees. Incentive management fees, which are based
on cash available for distribution, increased as a result of the increase
in net income. 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 nine-month periods ended September 30, 2001, and 2000, total revenues
increased 19.2% from $1,607,293 to $1,915,657 and total expenses decreased
30.2% from $1,071,669 to $748,042 and other income decreased from $5,207
to $4,045. Equity in income of the real estate joint venture increased 43.6%
from $87,868 to $126,136. As a result, net income increased 106.4% from
$628,699 to $1,297,796 for the nine-month period ended September 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 $353,100 (39.1%) primarily as a result of decreases in repairs
and maintenance, workers compensation insurance, security alarm services and
depreciation expenses, partially offset by increases in advertising, 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
$29,400 (17.5%) primarily as a result of higher incentive management fees
partially offset by a a decrease in equipment and computer lease expenses.
The increase in incentive management fees was discussed above. The increase
in equity in income from the real estate joint venture was also 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 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)
SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
September 30, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $1,026,504 $ 514,497
PROPERTY, Net 2,287,427 2,287,427
INVESTMENT IN REAL ESTATE
JOINT VENTURE 181,710 176,774
OTHER ASSETS 66,938 60,938
TOTAL $3,562,579 $3,039,636
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 689,153 $ 645,825
PARTNERS' EQUITY (DEFICIT):
General Partners (79,047) (83,844)
Limited Partners 2,952,473 2,477,655
Total partners' equity 2,873,426 2,393,811
TOTAL $3,562,579 $3,039,636
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30,
2001 2000
REVENUES:
Rental $ 665,379 $ 565,527
EXPENSES:
Operating 202,564 332,560
General and administrative 63,457 42,426
Total expenses 266,021 374,986
OPERATING INCOME 399,358 190,541
OTHER INCOME
Interest 1,107 1,917
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 400,465 192,458
EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 39,652 29,487
NET INCOME $ 440,117 $ 221,945
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 435,716 $ 219,726
General partners 4,401 2,219
TOTAL $ 440,117 $ 221,945
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 18.15 $ 9.16
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30,
2001 2000
REVENUES:
Rental $1,915,657 $1,607,293
EXPENSES:
Operating 550,975 904,034
General and administrative 197,067 167,635
Total expenses 748,042 1,071,669
OPERATING INCOME 1,167,615 535,624
OTHER INCOME
Interest 4,045 5,207
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 1,171,660 540,831
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 126,136 87,868
NET INCOME $1,297,796 $628,699
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 1,284,818 622,412
General Partners 12,978 6,287
TOTAL 1,297,796 628,699
NET INCOME PER LIMITED
PARTNERSHIP UNIT $53.53 $25.93
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 NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2000 ($81,721) $2,687,867 $2,606,146
NET INCOME 6,287 622,412 628,699
DISTRIBUTIONS (8,181) (810,000) (818,181)
BALANCE AT SEPTEMBER 30, 2000 ($83,615) $2,500,279 $2,416,664
BALANCE AT JANUARY 1, 2001 ($83,844) $2,477,655 $2,393,811
NET INCOME 12,978 1,284,818 1,297,796
DISTRIBUTIONS (8,181) (810,000) (818,181)
BALANCE AT SEPTEMBER 30, 2001 ($79,047) $2,952,473 $2,873,426
See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,297,796 $628,699
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 0 351,850
Equity in earnings of
real estate joint venture (126,136) (87,868)
Distributions from
real estate joint venture 121,200 129,300
Changes in assets and
liabilities:
Increase in other assets (6,000) 0
(Decrease)increase in liabilities 43,328 34,238
Net cash provided by
operating activities 1,330,188 1,056,219
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (818,181) (818,181)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 512,007 238,038
CASH AND CASH EQUIVALENTS:
At beginning of period 514,497 483,308
At end of period $1,026,504 $ 721,346
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 September 30, 2001, and for
the periods ended September 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 September 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 nine months
ended September 30, 2001, and 2000 is as follows:
2001 2000
Revenue $590,984 $583,083
Operating Expenses 170,530 290,192
Net Income $420,454 $292,891
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.