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, 1997.
/___/ 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.)
3701 Long Beach Boulevard, Long Beach, California 90807
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code-(562)595-7711
_________________________________________________________________
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, 1997, 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, 1997.
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, 1997.
(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, 1997 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, 1997 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, 1997
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, 1997. 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, 1997 and 1996, total revenues
decreased 0.6% from $656,747 to $652,761 and total expenses increased 15.6%
from $348,105 to $402,431. As a result, net income decreased 18.9% from
$308,642 for the three month period ended September 30, 1996, to $250,330 for
the same period in 1997. The slight revenue decrease can be primarily attributed
to a decrease in rental income as a result of lower unit rental rates
partially offset by higher occupancy rates. Operating expenses increased
approximately $58,600 (19.5%) primarily due to increases in maintenance and
repair expenses and salaries and wages. General and administrative expenses
decreased approximately $4,300 (8.9%) primarily as a result of 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. Occupancy levels for the Partnership's six mini-storage facilities
averaged 86.7% for the three month period ended September 30, 1997, compared
to 85.1% for the same period in 1996. The Partnership is continuing its
marketing efforts to attract and keep new tenants in its various mini-
storage facilities.
For the nine month periods ended September 30, 1997, and 1996, total revenues
decreased 0.4% from $1,907,844 to $1,900,046 and total expenses increased
10.9% from $1,073,952 to $1,191,538. As a result, net income decreased 15.0%
from $833,892 for the nine months ended September 30, 1996, to $708,508 for
the same period in 1997. The reason for the decrease in revenues can be
primarily attributed to a decrease in late fees as rental income remained
constant. Operating expenses increased approximately $109,100 (12.1%)
primarily due to increases in yellow pages advertising costs, maintenance and
repair expenses and salaries and wages. General and administrative expenses
increased approximately $8,500 (5.0%) primarily as a result of an increase in
Colorado State Taxes which were levied for the first time, 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.
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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 743,906 $ 560,121
PROPERTY 3,990,965 4,305,379
OTHER ASSETS 72,718 38,342
TOTAL $4,807,589 $4,903,842
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $381,940 $376,941
PARTNERS' EQUITY:
General Partners (49,029) (48,017)
Limited Partners 4,474,678 4,574,918
Total partners' equity 4,425,649 4,526,901
TOTAL $4,807,589 $4,903,842
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $647,974 $651,542
Interest 4,787 5,205
Total revenue 652,761 656,747
EXPENSES:
Operating Expenses 358,588 299,996
General and administrative 43,843 48,109
Total expenses 402,431 348,105
NET INCOME $250,330 $308,642
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $247,827 $305,556
General partners 2,503 3,086
TOTAL $250,330 $308,642
NET INCOME PER
LIMITED PARTNERSHIP UNIT $10.43 $12.86
LIMITED PARTNERSHIP
UNITS USED IN PER
UNIT CALCULATION 23,753 23,753
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $1,888,221 $1,894,939
Interest 11,825 12,905
Total Revenues 1,900,046 1,907,844
EXPENSES:
Operating Expenses 1,011,999 902,949
General and administrative 179,539 171,003
Total expenses 1,191,538 1,073,952
NET INCOME 708,508 833,892
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 701,423 825,553
General Partners 7,085 8,339
TOTAL 708,508 833,892
NET INCOME PER LIMITED
PARTNERSHIP UNIT 29.53 34.76
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 23,753 23,753
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1995 ($44,075) $4,965,085 $4,921,010
NET INCOME 8,339 825,553 833,892
DISTRIBUTIONS (8,097) (801,663) (809,760)
EQUITY AT SEPTEMBER 30, 1996 ($43,833) $4,988,975 $4,945,142
EQUITY AT DECEMBER 31, 1996 ($48,017) $4,574,918 $4,526,901
NET INCOME 7,085 701,423 708,508
DISTRIBUTIONS (8,097) (801,663) (809,760)
EQUITY AT SEPTEMBER 30, 1997 ($49,029) $4,474,678 $4,425,649
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 708,508 $ 833,892
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 314,415 311,094
Changes in assets and liabilities:
Increase in other assets (34,376) (39,253)
Increase in liabilities 4,998 1,644
Net cash provided by operating
activities 993,545 1,107,377
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (809,760) (809,760)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 183,785 297,617
CASH AND CASH EQUIVALENTS:
At beginning of period 560,121 506,933
At end of period $ 743,906 $ 804,550
See accompanying notes to financial statements (unaudited).
</TABLE>
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, 1997, and for
the periods ended September 30, 1997 and 1996, 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, 1997, is as follows:
<TABLE>
<S> <C>
Land $ 1,759,000
Buildings 8,364,514
Furniture and Equipment 35,185
Total 10,158,699
Less: Accumulated Depreciation ( 6,167,734)
Property - Net $ 3,990,965
</TABLE>
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.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-END> SEP-30-1997 DEC-31-1997
<CASH> 743906 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 10158699 0
<DEPRECIATION> 6167734 0
<TOTAL-ASSETS> 4807589 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4807589 0
<SALES> 1888221 0
<TOTAL-REVENUES> 1900046 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 708508 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 708508 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 708508 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
