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, 1999
/___/ 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 September 30, 1999, 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, 1999.
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, 1999.
(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 29, 1999 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 29, 1999 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 29, 1999
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, 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 September 30, 1999 and 1998, total revenues
increased 5.0% from $708,070 to $743,657 and total expenses increased 13.8%
from $366,100 to $416,741. As a result, net income decreased 4.4% from $341,970
for the three-month period ended September 30, 1998, to $326,916 for the same
period in 1999. The revenue increase can be attributed to an increase in
rental income as a result of higher unit rental rates. Occupancy levels for
the Partnership's six mini-storage facilities averaged 87.0% for the three
month period ended September 30, 1999, compared to 87.6% 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 $46,500 (14.7%) primarily due to increases in mainten-
ance and repair expense, salaries and wages 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 $4,200 (8.3%) primarily as a result of an increase in
equipment and computer lease expense.
For the nine-month periods ended September 30, 1999, and 1998, total revenues
increased 4.6% from $2,058,300 to $2,153,572 and total expenses increased 7.1%
from $1,182,473 to $1,266,989. As a result, net income increased 1.2% from
$875,828 for the nine months ended September 30, 1998, to $886,583 for the same
period in 1999. The reason for the increase in revenues is the same as
discussed above for the three-month period. Operating expenses increased
approximately $74,900 (7.6%) primarily due to increases in maintenance and
repair, salaries and wages, security 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 $9,600 (4.9%) primarily as a result of increases in
Colorado state taxes and equipment and computer lease expenses, partially
offset by a decrease in legal and professional expenses.
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, 1999 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 908,262 $ 546,110
PROPERTY, Net 3,217,974 3,513,086
OTHER ASSETS 56,514 54,810
TOTAL $4,182,750 $4,114,006
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $356,702 $364,781
PARTNERS' EQUITY (DEFICIT):
General Partners (55,025) (55,794)
Limited Partners 3,881,073 3,805,019
Total partners' equity 3,826,048 3,749,225
TOTAL $4,182,750 $4,114,006
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental Income $741,280 $703,399
Interest 2,377 4,671
Total revenue 743,657 708,070
EXPENSES:
Operating 361,922 315,462
General and administrative 54,819 50,638
Total expenses 416,741 366,100
NET INCOME $326,916 $341,970
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $323,647 $338,550
General partners 3,269 3,420
TOTAL $326,916 $341,970
NET INCOME PER
LIMITED PARTNERSHIP UNIT $13.63 $14.25
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, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental income $2,146,460 $2,046,450
Interest 7,112 11,850
Total revenues 2,153,572 2,058,300
EXPENSES:
Operating 1,060,280 985,345
General and administrative 206,709 197,127
Total expenses 1,266,989 1,182,472
NET INCOME 886,583 875,828
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 877,717 867,070
General Partners 8,866 8,758
TOTAL 886,583 875,828
NET INCOME PER LIMITED
PARTNERSHIP UNIT 36.95 36.50
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
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
BALANCE AT JANUARY 1, 1999 ($55,794) $3,805,019 $3,749,225
NET INCOME 8,866 877,717 886,583
DISTRIBUTIONS (8,097) (801,663) (809,760)
BALANCE AT SEPTEMBER 30, 1999 ($55,025) $3,881,073 $3,826,048
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 886,583 $ 875,828
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 (1,704) (47,118)
(Decrease)increase in liabilities (8,079) 20,511
Net cash provided by operating
activities 1,191,215 1,163,636
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property (19,303) (12,413)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (809,760) (809,760)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 362,152 341,463
CASH AND CASH EQUIVALENTS:
At beginning of period 546,110 529,808
At end of period $ 908,262 $ 871,271
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, 1999, and for
the periods ended September 30, 1999 and 1998, 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, 1999, is as follows:
<TABLE>
<S> <C>
Land $ 1,759,000
Buildings 8,429,963
Furniture and Equipment 35,185
Total 10,224,148
Less: Accumulated Depreciation ( 7,006,174)
Property - Net $ 3,217,974
</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-31-1999 DEC-31-1999
<PERIOD-END> SEP-30-1999 DEC-31-1999
<CASH> 908262 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 10224148 0
<DEPRECIATION> 7006174 0
<TOTAL-ASSETS> 4182750 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4182750 0
<SALES> 2146460 0
<TOTAL-REVENUES> 2153572 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 886583 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 886583 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 886583 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
