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, 1998
/___/ 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-(310)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, 1998, 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, 1998.
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, 1998.
(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, 1998 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, 1998 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, 1998
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, 1998. 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, 1998 and 1997, total revenues
increased 8.5% from $652,761 to $708,070 and total expenses decreased 9.0%
from $402,431 to $366,100. As a result, net income increased to 6.6% from
$250,330 for the three-month period ended September 30, 1997, to $341,970 for
the same period in 1998. The revenue increase can be attributed to an increase
in rental income as a result of higher occupancy and unit rental rates.
Occupancy levels for the Partnership's six mini-storage facilities averaged
87.6% for the three month period ended September 30, 1998, compared to 86.7%
for the same period in 1997. The Partnership is continuing its marketing
efforts to attract and keep new tenants in its various mini-storage facilities.
Operating expenses decreased approximately $43,100 (12.0%) primarily due to
decreases in maintenance and repair and salaries and wage expenses, partially
offset by increases in property management fees and real estate tax expense.
Property management fees, which are based on rental revenue, increased as a
result of the increase in rental revenue. General and administrative expenses
increased approximately $6,800 (15.5%) primarily as a result of an increase in
incentive management fees. Incentive management fees, which are based on cash
available for distribution, increased as a result of the increase in net
income.
For the nine-month periods ended September 30, 1998, and 1997, total revenues
increased 8.3% from $1,900,046 to $2,058,300 and total expenses decreased 0.8%
from $1,191,538 to $1,182,472. As a result, net income increased 23.6% from
$708,508 for the nine months ended September 30, 1997, to $875,828 for the
same period in 1998. The reason for the increase in revenues is the same as
discussed above for the three-month period. Operating expenses decreased
approximately $26,700 (2.6%) primarily due to same reasons as discussed for
the three-month period above. General and administrative expenses increased
approximately $17,600 (9.8%) for the same reason as discussed for the three-
month period above.
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.
The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000. The Partnership has implemented
a Year 2000 program, which has three phases: (1) identification;
(2) remediation; and (3) testing and verification. The Partnership, as well
as the property management company and the Partnership's warehouse facilities
have completed those phases. Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expensed in the regular
course of business. The Partnership provides no assurance that third-party
suppliers and customers will be compliant. Nevertheless, the Partnership
does not believe that the Year 2000 issue will have a material adverse effect
on its financial condition or results of operations.
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, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 871,271 $ 529,808
PROPERTY 3,598,911 3,900,913
OTHER ASSETS 85,960 38,842
TOTAL $4,556,142 $4,469,563
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $388,526 $368,015
PARTNERS' EQUITY:
General Partners (51,609) (52,270)
Limited Partners 4,219,225 4,153,818
Total partners' equity 4,167,616 4,101,548
TOTAL $4,556,142 $4,469,563
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
REVENUES:
Rental Income $703,399 $647,974
Interest 4,671 4,787
Total revenue 708,070 652,761
EXPENSES:
Operating Expenses 315,462 358,588
General and administrative 50,638 43,843
Total expenses 366,100 402,431
NET INCOME $341,970 $250,330
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $338,550 $247,827
General partners 3,420 2,503
TOTAL $341,970 $250,330
NET INCOME PER
LIMITED PARTNERSHIP UNIT $14.25 $10.43
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, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
REVENUES:
Rental Income $2,046,450 $1,888,221
Interest 11,850 11,825
Total Revenues 2,058,300 1,900,046
EXPENSES:
Operating Expenses 985,345 1,011,999
General and administrative 197,127 179,539
Total expenses 1,182,472 1,191,538
NET INCOME 875,828 708,508
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 867,070 701,423
General Partners 8,758 7,085
TOTAL 875,828 708,508
NET INCOME PER LIMITED
PARTNERSHIP UNIT 36.50 29.53
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, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT JANUARY 1, 1997 ($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
EQUITY AT JANUARY 1, 1998 ($52,270) $4,153,818 $4,101,548
NET INCOME 8,758 867,070 875,828
DISTRIBUTIONS (8,097) (801,663) (809,760)
EQUITY AT SEPTEMBER 30, 1998 ($51,609) $4,219,225 $4,167,616
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 875,828 $ 708,508
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 314,415 314,415
Changes in assets and liabilities:
Increase in other assets (47,118) (34,376)
Increase in liabilities 20,511 4,998
Net cash provided by operating
activities 1,163,636 993,545
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property (12,413)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (809,760) (809,760)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 341,463 183,785
CASH AND CASH EQUIVALENTS:
At beginning of period 529,808 560,121
At end of period $ 871,271 $ 743,906
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, 1998, and for
the periods ended September 30, 1998 and 1997, 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, 1998, is as follows:
<TABLE>
<S> <C>
Land $ 1,759,000
Buildings 8,391,680
Furniture and Equipment 35,185
Total 10,185,865
Less: Accumulated Depreciation ( 6,586,954)
Property - Net $ 3,598,911
</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-31-1998 DEC-31-1998
<PERIOD-END> SEP-30-1998 DEC-31-1998
<CASH> 871271 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 10185865 0
<DEPRECIATION> 6586954 0
<TOTAL-ASSETS> 4556142 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4556142 0
<SALES> 2046450 0
<TOTAL-REVENUES> 2058300 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 875828 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 875828 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 875828 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
