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 2-90168
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, 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 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 26, 2002 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 26, 2002
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, 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
increased 3.4% from $617,806 to $638,942, total expenses increased 9.5%
from $239,595 to $262,313, other income decreased from $1,561 to $282
and equity in income of the real estate joint venture decreased 14.3%
from $43,394 to $37,188. As a result, net income decreased 2.1% from
$423,166 to $414,099 for the three-month period ended March 31, 2002, as
compared to the same period in 2001. 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 86.4% for the three month
period ended March 31, 2002, and 93.3% 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 in-
creased approximately $20,500 (12.5%) primarily as a result of higher
maintenance and repair and workers compensation insurance expenses. General
and administrative expenses increased approximately $2,200 (2.9%) primarily
as a result of higher equipment and computer lease expenses. Equity in
income of real estate joint venture decreased as a result of lower rental
revenue at the joint venture property.
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. 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 inadequate
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 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, 2002 AND DECEMBER 31, 2001
March 31, December 31,
2002 2001
ASSETS
CASH AND CASH EQUIVALENTS $ 781,181 $ 619,194
PROPERTY, NET 2,287,427 2,287,427
INVESTMENT IN REAL ESTATE
JOINT VENTURE 182,548 181,660
OTHER ASSETS 71,264 71,264
TOTAL $3,322,420 $3,159,545
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 657,126 $ 635,623
PARTNERS' EQUITY (DEFICIT):
General Partners (81,129) (82,543)
Limited Partners 2,746,423 2,606,465
Total partners' equity 2,665,294 2,523,922
TOTAL $3,322,420 $3,159,545
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 Income $ 638,942 $ 617,806
EXPENSES:
Operating 183,985 163,502
General and administrative 78,328 76,093
Total expenses 262,313 239,595
OPERATING INCOME 376,629 378,211
OTHER INCOME
Interest 282 1,561
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE $ 376,911 $ 379,772
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 37,188 43,394
NET INCOME $ 414,099 $ 423,166
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 409,958 $ 418,934
General partners 4,141 4,232
TOTAL $ 414,099 $ 423,166
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 17.08 $ 17.46
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, 2002
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2002 ($82,543) $2,606,465 $2,523,922
NET INCOME 4,141 409,958 414,099
DISTRIBUTIONS (2,727) (270,000) (272,727)
BALANCE AT MARCH 31, 2002 ($81,129) $2,746,423 $2,665,294
See accompanying notes to consolidated 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 $ 414,099 $ 423,166
Adjustments to reconcile net
income to net cash provided
by operating activities:
Equity in earnings of real
estate joint venture (37,188) (43,394)
Distributions from real
estate joint venture 36,300 40,200
Changes in assets and
liabilities:
Increase(decrease)in liabilities 21,503 (1,856)
Net cash provided by
operating activities 434,714 418,116
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (272,727) (272,727)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 161,987 145,389
CASH AND CASH EQUIVALENTS:
At beginning of period 619,194 514,497
At end of period $ 781,181 $659,886
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, 2002, and for
the periods ended March 31, 2002, and 2001 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, 2002, 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 three months
ended March 31, 2002, and 2001 is as follows:
2002 2001
Revenue $176,796 $191,391
Operating Expenses 52,837 46,744
Net Income $123,959 $144,647
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.