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, 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-(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, 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 June 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
June 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: July 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: July 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
July 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 June 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 June 30, 1998, and 1997, total revenues
increased 9.9% from $630,789 to $693,141 and total expenses increased 7.5%
from $400,985 to $431,201. As a result, net income increased 14.0% from
$229,804 for the three month period ended June 30, 1997, to $261,940 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
87.7% for the three month period ended June 30, 1998, compared to 85.8% 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 increased approximately $23,400 (6.9%) primarily due to
increases in maintenance and repair, real estate tax, salaries and wage
expenses and property management fees. 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
(10.6%) 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. The Partnership is
continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities.
For the six month periods ended June 30, 1998, and 1997, total revenues
increased 8.3% from $1,247,285 to $1,350,230 and total expenses increased 3.5%
from $789,107 to $816,732. As a result, net income increased 16.5% from
$458,178 for the six months ended June 30, 1997, to $533,858 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 increased
approximately $16,500 (2.5%) primarily due to increases in property management
fees, real estate tax expenses and salaries and wages, partially offset by
decreases in repairs and maintenance expenses and yellow pages advertising
costs. The reason for the increase in property management fees was discussed
above. General and adminstrative expenses increased approximately $10,400
(8.0%) 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.
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), JUNE 30, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 682,525 $ 529,808
PROPERTY 3,691,303 3,900,913
OTHER ASSETS 99,636 38,842
TOTAL $4,473,464 $4,469,563
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $377,899 $368,015
PARTNERS' EQUITY:
General Partners (52,329) (52,270)
Limited Partners 4,147,894 4,153,818
Total partners' equity 4,095,565 4,101,548
TOTAL $4,473,464 $4,469,563
See accompanying notes to financial statements (unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
June 30, June 30,
1998 1997
REVENUES:
Rental Income $688,948 $627,006
Interest 4,193 3,783
Total revenue 693,141 630,789
EXPENSES:
Operating Expenses 360,204 336,810
General and Administrative 70,997 64,175
Total expenses 431,201 400,985
NET INCOME $261,940 $229,804
AGGREGATE NET INCOME ALLOCATED TO :
Limited partners $259,321 $227,506
General partners 2,619 2,298
TOTAL $261,940 $229,804
NET INCOME PER
LIMITED PARTNERSHIP UNIT $10.92 $ 9.58
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
June 30, June 30,
1998 1997
REVENUES:
Rental Income $1,343,051 $1,240,247
Interest 7,179 7,038
Total revenues 1,350,230 1,247,285
EXPENSES:
Operating Expenses 669,883 653,411
General and administrative 146,489 135,696
Total expenses 816,372 789,107
NET INCOME $533,858 $458,178
AGGREGATE NET INCOME
ALLOCATED TO:
Limited Partners $528,519 $453,596
General Partners 5,339 4,582
TOTAL $533,858 $458,178
NET INCOME PER LIMITED
PARTNERSHIP UNIT $22.25 $19.10
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1996 ($48,017) $4,574,918 $4,526,901
NET INCOME 4,582 453,596 458,178
DISTRIBUTIONS (5,398) (534,443) (539,841)
EQUITY AT JUNE 30, 1997 ($48,833) $4,494,071 $4,445,238
EQUITY AT DECEMBER 31, 1997 ($52,270) $4,153,818 $4,101,548
NET INCOME 5,339 528,519 533,858
DISTRIBUTIONS (5,398) (534,443) (539,841)
EQUITY AT JUNE 30, 1998 ($52,329) $4,147,894 $4,095,565
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 533,858 $ 458,178
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 209,611 209,610
Changes in assets and liabilities:
Increase in other assets (60,794) (62,727)
Increase(Decrease) in liabilities 9,883 (12,665)
Net cash provided by operating
activities 692,558 592,396
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (539,841) (539,841)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 152,717 52,555
CASH AND CASH EQUIVALENTS:
At beginning of period 529,808 560,121
At end of period $ 682,525 $ 612,676
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 June 30, 1998, and for
the periods ended June 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 June 30, 1998, is as follows:
<TABLE>
<S> <C>
Land $ 1,759,000
Buildings 8,379,267
Equipment 35,185
Total 10,173,452
Less: Accumulated Depreciation ( 6,482,149)
Property - Net $ 3,691,303
</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> JUN-30-1998 DEC-31-1998
<CASH> 682525 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 10173452 0
<DEPRECIATION> 6482149 0
<TOTAL-ASSETS> 4473464 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4473464 0
<SALES> 1343051 0
<TOTAL-REVENUES> 1350230 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 533858 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 533858 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 533858 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
