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, 2002.
/___/ Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934
for the transition period from ______________ to ________________.
Commission File Number 2-68926
DSI REALTY INCOME FUND VI, A California Limited Partnership
(Exact name of registrant as specified in its charter)
California_______________________________________95-3633566
(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, 2002 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, 2002.
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, 2002.
(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 26, 2002 DSI REALTY INCOME FUND VI
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 26, 2002 DSI REALTY INCOME FUND VI
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 26, 2002
QUARTERLY REPORT TO THE LIMITED PARTNERS
OF DSI REALTY INCOME FUND VI
DEAR LIMITED PARTNERS:
We are pleased to enclose the Partnership's unaudited financial statements
for the period ended March 31, 2002. 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, 2002 and 2001, total revenues
decreased 7.1% from $791,400 to $735,362, total expenses increased 5.3% from
$418,921 to $441,175 and other income decreased from $2,016 to $337. As a
result, net income decreased 21.4% from $374,495 for the three-month period
ended March 31, 2001, to $294,524 for the same period in 2002. The revenue
decrease can be attributed to a decrease in rental income as a result of
lower occupancy and unit rental rates. Occupancy levels for the Partner-
ship's six mini-storage facilities averaged 84.7% for the three-month period
ended March 31, 2002, compared to 86.5% for the same period in 2001. The
Partnership is continuing its marketing efforts to attract and keep new
tenants in its various mini-storage facilities. Operating expenses increased
approximately $26,600 (7.8%) primarily due to increases in depreciation, office
supplies, salaries and wages and workers compensation insurance expenses,
partially offset by a decrease in property management fee expense. Property
management fees, which are based on rental revenue, decreased as a result of
the increase in rental revenue. General and administrative expenses decreased
approximately $4,400 (5.5%) as a decrease in incentive management fees was
partially offset by an increase in equipment and computer lease expense.
Incentive management fees, which are based on cash available for distribution,
decreased as a result of the decrease in net income.
On April 5, 2002, the General Partners received a copy of a hostile tender
offer from MacKenzie Patterson, Inc. and associated corporations and limited
partnerships to purchase all of the units in the Partnership. This offer was
also filed with the Securities and Exchange Commission on the same date. The
General Partners have determined that the hostile tender offer is not in the
best interests of the Limited Partners, that the tender offer is grossly in-
adequate given the performance history of the Limited Partnership and the
inherent value of the units, and recommend that the Limited Partners reject
the hostile tender offer and not tender their units pursuant thereto.
The General Partners plan to continue their policy of funding the 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 VI,
P.O. Box 357, Long Beach, California 90801.
Very truly yours,
DSI Realty Income Fund VI
By: DSI Properties, Inc., as
General Partner
By___\s\ Robert J. Conway_______
ROBERT J. CONWAY, President
DSI REALTY INCOME FUND VI
(A California Real Estate Limited Partnership)
BALANCE SHEETS(UNAUDITED), March 31, 2002 AND DECEMBER 31, 2001
March 31, December 31,
2002 2001
ASSETS
CASH AND CASH EQUIVALENTS $ 643,589 $ 537,427
PROPERTY,NET 2,209,556 2,319,749
OTHER ASSETS 113,949 113,949
TOTAL $2,967,094 $2,971,125
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $393,403 $422,038
PARTNERS' EQUITY (DEFICIT):
General Partners (67,548) (67,794)
Limited Partners 2,641,239 2,616,881
Total partners' equity 2,573,691 2,549,087
TOTAL $2,967,094 $2,971,125
See accompanying notes to financial statements (unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED March 31, 2002 AND 2001
March 31, March 31,
2002 2001
REVENUES:
Rental $735,362 $791,400
EXPENSES:
Operating 366,002 339,357
General and administrative 75,173 79,564
Total expenses 441,175 418,921
OPERATING INCOME $294,187 $372,479
OTHER INCOME
Interest 337 2,016
NET INCOME 294,524 374,495
AGGREGATE NET INCOME ALLOCATED TO :
Limited partners $291,579 $370,750
General partners 2,945 3,745
TOTAL $294,524 $374,495
NET INCOME PER
LIMITED PARTNERSHIP UNIT $12.28 $15.61
LIMITED PARTNERSHIP
UNITS USED IN PER
UNIT CALCULATION 23,753 23,753
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED)
FOR THE THREE MONTHS ENDED March 31, 2002
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2002 ($67,794) $2,616,881 $2,549,087
NET INCOME 2,945 291,579 294,524
DISTRIBUTIONS (2,699) (267,221) (269,920)
BALANCE AT MARCH 31, 2002 ($67,548) $2,641,239 $2,573,691
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
March 31, March 31,
2002 2001
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 294,524 $ 374,495
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 110,193 104,805
Changes in assets and liabilities:
Decrease(increase) in liabilies (28,635) 1,563
Net cash provided by operating
activities 376,082 480,863
CASH FLOWS FROM FINANCING ACTIVITIES-
Distributions to partners (269,920) (269,920)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 106,162 210,943
CASH AND CASH EQUIVALENTS:
At beginning of period 537,427 537,423
At end of period $ 643,589 $ 748,366
See accompanying notes to financial statements (unaudited).
DSI REALTY INCOME FUND VI
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
DSI Realty Income Fund VI (the "Partnership"), a limited partnership, has two
general partners (DSI Properties, Inc., and Diversified Investors Agency)
and limited partners owning 23,753 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, 2002, and for
the periods ended March 31, 2002 and 2001, 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 20 years. The total cost of property and accumulated
depreciation at March 31, 2002, is as follows:
Land $ 1,759,000
Buildings and improvements 8,579,426
Equipment 38,710
Total 10,377,136
Less: Accumulated Depreciation ( 8,167,580)
Property - Net $ 2,209,556
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.