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, 2003
/___/ 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 September 30, 2003, 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, 2003.
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, 2003.
(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, 2003 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: October 31, 2003 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
October 31, 2003
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 September 30, 2003. 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, 2003, and 2002, total
revenues decreased 7.3% from $732,861 to $679,280 and total expenses
decreased 22.8% from $468,967 to $361,966 and other income decreased from
$379 to $211. As a result, net income increased 20.2% from $264,273 for the
three-month period ended September 30, 2002, to $317,525 for the same period
in 2003. The revenue decrease can be attributed to a decrease in rental in-
come as a result of lower unit rental rates. Occupancy levels for the Partner-
ship's six mini-storage facilities averaged 85.8% for the three-month period
ended September 30, 2003, compared to 84.5% for the same period in 2002. The
Partnership is continuing its marketing efforts to attract and keep new tenants
in its various mini-storage facilities. Operating expenses decreased approx-
imately $148,600 (35.7%) primarily due to decreases in depreciation, mainten-
ance and repair, property management fees and workers compensation insurance
expenses, partially offset by increases in real estate tax expense. Depreci-
ation decreased as the Partnership properties became fully depreciated during
the current period. 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 $41,600 (78.7%) as a result
of an increase in legal and professional expense, partially offset by a de-
crease in equipment and computer lease expense. Legal expenses increased as
a result of legal challenges by dissident Limited Partners to a proposed
amendment to the Partnership Agreement (see paragraph below).
For the nine-month periods ended September 30, 2003, and 2002, total revenues
increased 2.1% from $2,161,869 to $2,117,088, total expenses decreased 12.2%
from $1,386,608 to $1,217,003 and other income decreased from $1,075 to $609.
As a result, net income increased 16.0% from $776,336 for the nine months ended
September 30, 2002, to $900,694 for the same period in 2003. The revenue
decrease can be attributed to a decrease in rental revenue as a result of
lower occupancy and unit rental rates. Operating expenses decreased approxi-
mately $199,300 (17.2%) primarily due to decreases in depreciation, mainten-
ance and repair and workers compensation insurance expenses, partially offset
by increases in advertising, telephone, real estate tax, salaries and wages
and power and sweeping expenses. General and administrative expenses increased
approximately $29,700 (13.1%) primarily as a result of increases in legal and
professional expense, partially offset by decreases in incentive management
fees, equipment and computer lease expenses and state tax payments.
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 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 recommended that 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
did not change. Prior to the expiration date of the offer, Limited Partners
tendered 85 Units representing 0.358% of the outstanding Units of the Partner-
ship.
The Limited Partners have approved an amendment to the Partnership Agreement
granting the General Partners ten days to review certain types of transfers
during which the General Partners may match, exceed or approve the proposed
transfers. The Court has rejected all preliminary attempts to halt implement-
ation of the amendment. Subsequently, the dissident Limited Partners who
initiated the legal proceedings decided not to pursue the matter any further.
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), SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
September 30, December 31,
2003 2002
ASSETS
CASH AND CASH EQUIVALENTS $ 780,096 $ 526,418
PROPERTY, Net 1,759,000 1,926,139
OTHER ASSETS 95,265 74,910
TOTAL $2,634,361 $2,527,467
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $460,768 $444,808
PARTNERS' EQUITY (DEFICIT):
General Partners (71,549) (72,459)
Limited Partners 2,245,142 2,155,118
Total partners' equity 2,173,593 2,082,659
TOTAL $2,634,361 $2,527,467
See accompanying notes to financial statements (unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
September 30, September 30,
2003 2002
REVENUES:
Rental $679,280 $732,861
EXPENSES:
Operating 267,529 416,112
General and administrative 94,437 52,855
Total expenses 361,966 468,967
OPERATING INCOME 317,314 263,894
OTHER INCOME
Interest 211 379
NET INCOME 317,525 264,273
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $314,350 $261,630
General partners 3,175 2,643
TOTAL $317,525 $264,273
NET INCOME PER
LIMITED PARTNERSHIP UNIT $13.23 $11.01
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 NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
September 30, September 30,
2003 2002
REVENUES:
Rental $2,117,088 $2,161,869
EXPENSES:
Operating 961,114 1,160,404
General and administrative 255,889 226,204
Total expenses 1,217,003 1,386,608
OPERATING INCOME 900,085 775,261
OTHER INCOME
Interest 609 1,075
NET INCOME 900,694 776,336
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 891,687 768,573
General Partners 9,007 7,763
TOTAL 900,694 776,336
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 37.54 $ 32.36
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 NINE MONTHS ENDED SEPTEMBER 30, 2003
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2003 ($72,459) $2,155,118 $2,082,659
NET INCOME 9,007 891,687 900,694
DISTRIBUTIONS (8,097) (801,663) (809,760)
BALANCE AT SEPTEMBER 30, 2003 ($71,549) $2,245,142 $2,173,593
See accompanying notes to financial statements (unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
September 30, September 30,
2003 2002
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 900,694 $ 776,336
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 167,139 330,579
Changes in assets and liabilities:
Increase (decrease)in other assets (20,355) 1,411
Increase in liabilities 15,960 18,781
Net cash provided by operating
activities 1,063,438 1,127,107
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (809,760) (809,760)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 253,678 317,347
CASH AND CASH EQUIVALENTS:
At beginning of period 526,418 537,427
At end of period $ 780,096 $ 854,774
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 September 30, 2003, and for
the periods ended September 30, 2003 and 2002, 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 September 30, 2003, is as follows:
Land $ 1,759,000
Buildings and improvements 8,579,426
Equipment 38,710
Total 10,377,136
Less: Accumulated Depreciation ( 8,618,136)
Property - Net $ 1,759,000
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.
4. CONTROLS AND PROCEDURES
Within 90 days prior to the date of this report, the Partnership evaluated
the effectiveness of its disclosure controls and procedures. This evaluation
was performed by the Partnership's Controller with the assistance of the
Partnership's President and the Chief Executive Officer. These disclosure
controls and procedures are designed to ensure that the information required
to be disclosed by the Partnership in its periodic reports filed with the
Securities and Exchange Commission (the "Commission") is recorded, processed,
summarized and reported, within the time periods specified by the Commission's
rules and forms, and that the information is communicated to the certifying
officers on a timely basis. Based on this evaluation, the Partnership con-
cluded that its disclosure controls and procedures were effective. There have
been no significant changes in the Partnership's internal controls or in other
factors that could significantly affect the internal controls subsequent to
the date of their evaluation.
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 September 30, 2003 fully complies with the requirements
of Section 13(a) of the Securities and Exchange Act of 1934 and that inform-
ation 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
CERTIFICATIONS
I, Robert Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund VI;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consoli-
dated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effec-
tiveness of the disclosure controls and procedures based on our evalu-
ation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit com-
mitee of registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls sub-
sequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November, 2003
Robert Conway
President
CERTIFICATIONS
I, Richard Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund VI;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consoli-
dated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effec-
tiveness of the disclosure controls and procedures based on our evalu-
ation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit com-
mitee of registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls sub-
sequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November, 2003
Richard Conway
Vice President