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, 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 June 30, 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 June 30, 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
June 30, 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: July 31, 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: July 31, 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
July 31, 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 June 30, 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 June 30, 2002, and 2001, total revenues
decreased 12.1% from $789,397 to $693,646 and total expenses increased 9.1%
from $436,787 to $476,466 and other income decreased from $1,652 to $359.
As a result, net income decreased 38.6% from 354,262 for the three-month
period ended June 30, 2001, to $217,539 for the same period in 2002. The
revenue decrease can be attributed to a decrease in rental income as a re-
sult of lower occupancy and unit rental rates. Occupancy levels for the
Partnership's six mini-storage facilities averaged 84.4% for the three-
month ended June 30, 2002, compared to 87.6% 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 $27,500 (7.8%) primarily due to increases in de-
preciation, advertising, maintenance and repair, 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 decrease in rental revenue.
General and administrative expenses increased approximately $12,200 (14.2%)
as a result increases in legal and professional and equipment and computer
lease expenses, partially offset by a decrease in incentive management fees.
Incentive management fees, which are based on cash available for distribution,
decreased as a result of the decrease in net income.
For the six-month periods ended June 30, 2002, and 2001, total revenues
decreased 9.6% from $1,580,797 to $1,429,008, total expenses increased 7.2%
from $855,708 to $917,641 and other income decreased from $3,668 to $696.
As a result, net income decreased 29.7% from $728,757 for the six months
ended June 30, 2001, to $512,063 for the same period in 2002. The revenue
decrease can be attributed to a decrease in rental revenue as a result of
lower occupancy and unit rental rates. Operating expenses increased approx-
imately $54,100 (7.8%) primarily due to increases in depreciation, main-
tenance and repair, office supplies, salaries and wages, workers compensation
insurance and bank and credit card fee expenses, partially offset by decreases
in advertising and property management fee expenses. The decrease in property
management fees was discussed above. General and administrative expenses
increased approximately $7,800 (4.7%) as a result increases in legal and
professional and equipment and computer lease expenses, partially offset by
a decrease in incentive management fees. The decrease in incentive manage-
ment fees was discussed above.
On April 5, 2002, the General Partners received a copy of a hostile tender
offer from MacKenzie Patterson, Inc. and associated corporation 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 was not in
the best interests of the Limited Partners, that the tender offer was grossly
inadequate given the performance history of the Limited Partnership and the
inherent value of the Units, and recommendedthat the Limited Partners reject
the hostile tender offer and not tender their Units pursuant thereto. The
offer was subsequently increased and extended to June 30, 2002 and again to
July 22, 2002. The General Partners' initial determination regarding the
offer has not changed. Prior to the expiration date of the offer, Limited
Partners tendered 85 Units representing 0.358% of the outstanding Units of
the Partnership.
The General Partners plan to continue their policy of funding improvements
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), JUNE 30, 2002 AND DECEMBER 31, 2001
June 30, December 31,
2002 2001
ASSETS
CASH AND CASH EQUIVALENTS $ 696,464 $ 537,427
PROPERTY, Net 2,099,363 2,319,749
OTHER ASSETS 112,538 113,949
TOTAL $2,908,365 $2,971,125
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $387,056 $422,038
PARTNERS' EQUITY (DEFICIT):
General Partners (68,071) (67,794)
Limited Partners 2,589,380 2,616,881
Total partners' equity 2,521,309 2,549,087
TOTAL $2,908,365 $2,971,125
See accompanying notes to financial statements (unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
June 30, June 30,
2002 2001
REVENUES:
Rental income $693,646 $789,397
EXPENSES:
Operating Expenses 378,290 350,794
General and Administrative 98,176 85,993
Total expenses 476,466 436,787
OPERATING INCOME $217,180 $352,610
OTHER INCOME
Interest 359 1,652
NET INCOME $217,539 $354,262
AGGREGATE NET INCOME ALLOCATED TO :
Limited Partners $215,364 $350,719
General Partners 2,175 3,543
TOTAL $217,539 $354,262
NET INCOME PER
LIMITED PARTNERSHIP UNIT $ 9.07 $ 14.77
LIMITED PARTNERSHIP
UNITS USED IN PER
UNIT CALCULATION 23,753 23,753
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
June 30, June 30,
2002 2001
REVENUES:
Rental $1,429,008 $1,580,797
EXPENSES:
Operating 744,292 690,151
General and administrative 173,349 165,557
Total expenses 917,641 855,708
OPERATING INCOME $511,367 $725,089
OTHER INCOME
Interest 696 3,668
NET INCOME $512,063 $728,757
AGGREGATE NET INCOME
ALLOCATED TO:
Limited Partners $506,942 $721,469
General Partners 5,121 7,288
TOTAL $512,063 $728,757
NET INCOME PER LIMITED
PARTNERSHIP UNIT $21.34 $30.37
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 (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2002
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2002 ($67,794) $2,616,881 $2,549,087
NET INCOME 5,121 506,942 512,063
DISTRIBUTIONS (5,398) (534,443) (539,841)
BALANCE AT JUNE 30, 2002 ($68,071) $2,589,380 $2,521,309
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
June 30, June 30,
2002 2001
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 512,063 $ 728,757
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 220,386 203,283
Changes in assets and liabilities:
Decrease(increase) in other assets 1,411 (6,500)
Decrease in liabilities (34,982) (75,465)
Net cash provided by operating
activities 698,878 850,075
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (539,841) (539,841)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 159,037 310,234
CASH AND CASH EQUIVALENTS:
At beginning of period 537,427 537,423
At end of period $ 696,464 $ 847,657
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 June 30, 2002, and for
the periods ended June 30, 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 June 30, 2002, is as follows:
Land $ 1,759,000
Buildings 8,579,426
Equipment 38,710
Total 10,377,136
Less: Accumulated Depreciation ( 8,277,773)
Property - Net $ 2,099,363
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.
DSI REALTY INCOME FUND VI
Form 10-Q
CERTIFICATION
Each of the undersigned hereby certifies in his capacity as an officer of
DSI Properties Inc. (corporate General Partner) of DSI REALTY INCOME FUND VI
(the "Partnership") that the Quarterly Report of the Partnership on Form 10-Q
for the periods ended June 30, 2002 fully complies with the requirements of
Section 13(a) of the Securities and Exchange Act of 1934 and that information
contained in such report fairly presents, in all material respects, the
financial condition of the Partnership at the end of such periods and the
results of operations of the Partnership for such periods.
ROBERT J. CONWAY, CEO RICHARD P. CONWAY, VP