July 31, 2000
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, 2000. 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, 2000, and 1999, total revenues
increased 7.2% from $708,947 to $759,830 and total expenses increased 1.0%
from $439,887 to $444,089. As a result, net income increased 17.3% from
$269,060 for the three-month period ended June 30, 1999, to $315,741 for the
same period in 2000. 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
88.0% for the three-month period ended June 30, 2000, compared to 84.3% for
the same period in 1999. The Partnership is continuing its marketing efforts
to attract and keep new tenants in its various mini-storage facilities.
Operating expenses decreased approximately $11,600 (3.2%) primarily due to
a decrease in salaries and wages expense, partially offset by increases in
yellow pages advertising costs 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 $15,800 (20.9%) primarily as a result of increases
in incentive management fees, legal and professional and Colorado state tax
expenses. Incentive management fees, which are based on cash available for
distribution, increased as a result of the increase in net income.
For the six month periods ended June 30, 2000, and 1999, total revenues
increased 7.5% for $1,409,915 to $1,515,987 and total expenses increased 2.8%
from $850,248 to $874,229. As a result, net income increased 14.7% from
$559,667 for the six months ended June 30, 1999, to $641,758 for the same
period in 2000. The reason for the increase in revenues is the same as
discussed above for the three-month period. Operating expenses increased
approximately $4,200 (0.6%) primarily due to increases in yellow pages
advertising costs, maintenance and repair and property management fee expenses,
partially offset by decreases in salaries and wages and security expenses.
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 $19,800 (13.0%) primarily as a result of
increases in incentive management fees, legal and professional, Colorado
state taxes and equipment and computer lease expenses. The reason for the
increase in incentive management fees is the same as discussed 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.
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
