April 30, 1999 		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, 1999. 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, 1999 and 1998, total revenues increased 8.8% from $449,145 to $488,691 and total expenses increased 8.2% from $324,616 to $351,201. Equity in income of the real estate joint venture increased slightly from $24,789 to $25,649. As a result, net income increased from $149,318 to $163,139 for the three month period ended March 31, 1999, as compared to the same period in 1998. Rental revenue increased as a result of higher unit rental rates. Occupancy levels for the Partnership's five mini-storage facilities averaged 81.4% for the three month period ended March 31, 1999, and 82.8% for the same period in 1998. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses increased approximately $29,800 (11.7%) primarily as a result of higher maintenance and repair and real estate tax expenses. General and administrative expenses decreased approximately $3,200 (4.6%) primarily as a result of relatively insignificant fluctuations in various expense accounts. 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