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, 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 June 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 June 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
June 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: July 31, 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: July 31, 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
July 31, 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 June 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 June 30, 1999, and 1998, total revenues
increased 2.3% from $693,141 to $708,947 and total expenses increased 2.0%
from $431,201 to $439,887. As a result, net income increased 2.7% from
$261,940 for the three-month period ended June 30, 1998, to $269,060 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 84.3% for the
three month period ended June 30, 1999, compared to 87.7% 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 $4,000 (1.1%) primarily due to an increase in main-
tenance and repair expense. General and administrative expenses increased
approximately $4,700 (6.6%) primarily as a result of an increase in Colorado
State Taxes, partially offset by a decrease in legal and professional expenses.
For the six month periods ended June 30, 1999, and 1998, total revenues
increased 4.4% from $1,350,230 to $1,409,915 and total expenses increased
4.1% from $816,372 to $850,248. As a result, net income increased 4.8% from
$533,858 for the six months ended June 30, 1998, to $559,667 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 $28,500 (4.3%) primarily due to increases in maintenance and
repair, real estate tax, security expenses and property management fees,
partially offset by a decrease in salaries and wages. 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
$5,400 (3.7%) for the same reasons 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), JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 701,942 $ 546,110
PROPERTY, Net 3,322,779 3,513,086
OTHER ASSETS 55,368 54,810
TOTAL $4,080,089 $4,114,006
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $311,038 $364,781
PARTNERS' EQUITY (DEFICIT):
General Partners (55,595) (55,794)
Limited Partners 3,824,646 3,805,019
Total partners' equity 3,769,051 3,749,225
TOTAL $4,080,089 $4,114,006
See accompanying notes to financial statements (unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental income $706,590 $688,948
Interest 2,357 4,193
Total revenue 708,947 693,141
EXPENSES:
Operating Expenses 364,202 360,204
General and Administrative 75,685 70,997
Total expenses 439,887 431,201
NET INCOME $269,060 $261,940
AGGREGATE NET INCOME ALLOCATED TO :
Limited Partners $266,369 $259,321
General Partners 2,691 2,619
TOTAL $269,060 $261,940
NET INCOME PER
LIMITED PARTNERSHIP UNIT $ 11.21 $ 10.92
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, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental income $1,405,180 $1,343,051
Interest 4,735 7,179
Total revenues 1,409,915 1,350,230
EXPENSES:
Operating 698,358 669,883
General and administrative 151,890 146,489
Total expenses 850,248 816,372
NET INCOME $559,667 $533,858
AGGREGATE NET INCOME
ALLOCATED TO:
Limited Partners $554,070 $528,519
General Partners 5,597 5,339
TOTAL $559,667 $533,858
NET INCOME PER LIMITED
PARTNERSHIP UNIT $23.33 $22.25
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 1998 ($52,270) $4,153,818 $4,101,548
NET INCOME 5,339 528,519 533,858
DISTRIBUTIONS (5,398) (534,443) (539,841)
BALANCE AT JUNE 30, 1998 ($52,329) $4,147,894 $4,095,565
BALANCE AT JANUARY 1, 1999 ($55,794) $3,805,019 $3,749,225
NET INCOME 5,597 554,070 559,667
DISTRIBUTIONS (5,398) (534,443) (539,841)
BALANCE AT JUNE 30, 1999 ($55,595) $3,824,646 $3,769,051
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 559,667 $ 533,858
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 209,610 209,611
Changes in assets and liabilities:
Increase in other assets (558) (60,794)
(Decrease)increase in liabilities (53,743) 9,883
Net cash provided by operating
activities 714,976 692,558
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property (19,303)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (539,841) (539,841)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 155,832 152,717
CASH AND CASH EQUIVALENTS:
At beginning of period 546,110 529,808
At end of period $ 701,942 $ 682,525
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, 1999, and for
the periods ended June 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 June 30, 1999, is as follows:
<TABLE>
<S> <C>
Land $ 1,759,000
Buildings 8,429,963
Equipment 35,185
Total 10,224,148
Less: Accumulated Depreciation ( 6,901,369)
Property - Net $ 3,322,779
</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> JUN-30-1999 DEC-31-1999
<CASH> 682525 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 10224148 0
<DEPRECIATION> 6901369 0
<TOTAL-ASSETS> 4080089 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4080089 0
<SALES> 1405180 0
<TOTAL-REVENUES> 1409915 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 559667 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 559667 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 559667 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
