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, 2004
/___/ 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 June 30, 2004 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, 2004.
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, 2004.
(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, 2004 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: July 31, 2004 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
July 31, 2004
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 June 30, 2004. 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, 2004 and 2003, total revenues
decreased 0.1% from $589,816 to $589,499 and total expenses increased 8.5%
from $265,108 to $287,666 and other income increased from $159 to $184.
Equity in income of the real estate joint venture decreased 13.4% from 31,505
to $27,284. As a result, net income decreased 7.6% from $356,372 to $329,301
for the three-month period ended June 30, 2004, as compared to the same period
in 2003. Rental revenue remained constant as higher unit rental rates was off-
set by lower occupancy rates. Occupancy levels for the Partnership's five
mini-storage facilities averaged 85.7% for the three-month period ended
June 30, 2004 as compared to 88.7% for the same period in 2003. The Partner-
ship is continuing its marketing efforts to attract and keep new tenants in
its various mini-storage facilities. Operating expenses increased approxi-
mately $18,400 (9.1%) primarily as a result of increases in advertising,
repairs and maintenance and office supplies expenses, partially offset by a
decrease in salaries and wages expense. General and administrative expenses
increased approximately $4,200 (6.8%) primarily as a result of an increase in
legal and professional and equipment and computer lease expenses partially
offset by a decrease in incentive management fees expense. Equity in income
from the real estate joint venture decreased as a result of lower rental
revenue at that facility.
For the six-month periods ended June 30, 2004, and 2003, total revenues
decreased 3.7% from $1,228,019 to $1,182,159 and total expenses increased 2.6%
from $554,683 to $569,049 and other income increased from $350 to $368. Equity
in income of the real estate joint venture decreased 15.0% from $69,689 to
$59,225. As a result, net income decreased 9.5% from $743,375 to $672,703
for the six-month period ended June 30, 2004, as compared to the same period
in 2003. Rental revenue decreased as a result of lower occupancy rates.
Operating expenses increased approximately $20,600 (5.0%) primarily as a
result of increases in advertising, office supplies and salaries and wages
expenses. General and administrative expense decreased approximately $6,200
(4.4%) primarily as a result of a decrease in incentive management fees
expense, partially offset by an increase in legal and professional expense.
Equity in income from the real estate joint venture decreased as a result of
lower rental revenue at that facility.
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 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)
JUNE 30, 2004 AND DECEMBER 31, 2003
June 30, December 31,
2004 2003
ASSETS
CASH AND CASH EQUIVALENTS $ 857,528 $ 713,429
PROPERTY, Net 2,288,638 2,288,638
INVESTMENT IN REAL ESTATE
JOINT VENTURE 181,093 180,968
OTHER ASSETS 97,709 97,680
TOTAL $3,424,968 $3,280,715
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 699,333 $ 682,329
PARTNERS' EQUITY (DEFICIT):
General Partners (80,525) (81,798)
Limited Partners 2,806,160 2,680,184
Total partners' equity 2,725,635 2,598,386
TOTAL $3,424,968 $3,280,715
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003
June 30, June 30,
2004 2003
REVENUES:
Rental $ 589,499 $ 589,816
EXPENSES:
Operating 221,689 203,314
General and administrative 65,977 61,794
Total expenses 287,666 265,108
OPERATING INCOME 301,833 324,708
OTHER INCOME
Interest 184 159
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 302,017 324,867
EQUITY IN INCOME OF REAL ESTATE
JOINT VENTURE 27,284 31,505
NET INCOME $ 329,301 $ 356,372
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 326,008 $ 352,808
General Partners 3,293 3,564
TOTAL $ 329,301 $ 356,372
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 13.58 $ 14.70
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 SIX MONTHS ENDED JUNE 30, 2004 AND 2003
June 30, June 30,
2004 2003
REVENUES:
Rental $1,182,159 $1,228,019
EXPENSES:
Operating 434,556 413,980
General and Administrative 134,493 140,703
Total Expenses 569,049 554,683
OPERATING INCOME 613,110 673,336
OTHER INCOME 368 350
INCOME BEFORE EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 613,478 673,686
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 59,225 69,689
NET INCOME $ 672,703 $ 743,375
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 665,976 $ 735,941
General Partners 6,727 7,434
TOTAL $ 672,703 $ 743,375
NET INCOME PER LIMITED PARTNERSHIP UNIT $27.75 $30.66
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 (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2004
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2004 ($81,798) $2,680,184 $2,598,386
NET INCOME 6,727 665,976 672,703
DISTRIBUTIONS (5,454) (540,000) (545,454)
BALANCE AT JUNE 30, 2004 ($80,525) $2,806,160 $2,725,635
See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
June 30, June 30,
2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 672,703 $ 743,375
Adjustments to reconcile net
income to net cash provided
by operating activities:
Equity in earnings of
real estate joint venture (59,225) (69,689)
Distributions from real
estate joint venture 59,100 64,200
Changes in assets and
liabilities:
Increase in other assets (29) 0
Increase in liabilities 17,004 30,624
Net cash provided by
operating activities 689,553 768,510
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (545,454) (545,454)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 144,099 223,056
CASH AND CASH EQUIVALENTS:
At beginning of period 713,429 502,070
At end of period $ 857,528 $725,126
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 June 30, 2004, and for
the periods ended June 30, 2004, and 2003 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 June 30, 2004,
is as follows:
Land $ 2,287,427
Buildings and improvements 7,126,999
Equipment 24,040
Total 9,438,466
Less: Accumulated Depreciation ( 7,149,828)
Property - Net $ 2,288,638
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 six months
ended June 30, 2004, and 2003 is as follows:
2004 2003
Revenue $308,594 $335,827
Operating Expenses 111,177 103,531
Net Income $197,417 $232,296
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.
5. 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
President and Chief Executive Officer. These disclosure controls and pro-
cedures are designed to ensure that the information required to be disclosed
by the Partnership in its periodic reports filed with the Securities and Ex-
change Commission (the Commission) is recorded, processed, summarized and
reported, within the time periods specified by the Commissions rules and forms
and that the information is communicated to the certifying officers on a timely
basis. Based on this evaluation, the Partnership concluded 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 signifi-
cantly affect the internal controls subsequent to the date of their
evaluation.
CERTIFICATIONS
I, Robert J. Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund VIII;
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 cover-
ed 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 con-
solidated 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:
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to re-
cord, 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 in-
ternal 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: July 31, 2004
Robert J. Conway
Chief Executive Officer
CERTIFICATIONS
I, Richard P. Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund VIII;
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 cover-
ed 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 con-
solidated 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:
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to re-
cord, 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 in-
ternal 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: July 31, 2004
Richard P. Conway
Vice President
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund VIII (the
"Partnership") on Form 10-Q for the period ending June 30, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Robert J. Conway, Chief Executive Officer of the Partnership, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
Robert J. Conway
Chief Executive Officer
July 31, 2004
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund VIII (the
"Partnership") on Form 10-Q for the period ending June 30, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Richard P. Conway, Chief Executive Officer of the Partnership, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
Richard P. Conway
Vice President
July 31, 2004