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, 1996
/___/ Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934
for the transition period from ______________ to ________________.
Commission File Number 2-83291
DSI REALTY INCOME FUND VII, A California Limited Partnership
(Exact name of registrant as specified in its charter)
California_______________________________________95-3871044
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
3701 Long Beach Boulevard, Long Beach, California 90807
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code-(310)595-7711
_________________________________________________________________
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, 1996 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, 1996.
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, 1996.
(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, 1996 DSI REALTY INCOME FUND VII
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, 1996 DSI REALTY INCOME FUND VII
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, 1996
QUARTERLY REPORT TO THE LIMITED PARTNERS
OF DSI REALTY INCOME FUND VII
DEAR LIMITED PARTNERS:
We are pleased to enclose the Partnership's unaudited financial statements
for the period ended September 30, 1996. 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, 1996 and 1995, total revenues
decreased 1.4% from $477,305 to $470,810 and total expenses decreased
3.5% from $349,577 to $337,511. As a result, net income increased 4.4% from
$127,728 for the three month period ended September 30, 1995, to $133,299
for the same period in 1996. Occupancy levels for the Partnership's six
mini-storage facilities averaged 86.7% for the three month period ended
September 30, 1996, and 85.4% for the same period in 1995. Rental revenue
decreased slightly as unit rental rates were lowered in the current period in
order to remain competitive. The Partnership is continuing its marketing
effort to attract and keep new tenants in its various mini-storage
facilities. Operating expenses decreased approximately $12,700 (3.7%)
as a result of decreases in yellow pages advertising and maintenance and
repair expenses. General and administrative expenses remained constant.
For the nine month periods ended September 30, 1996, and 1995 total revenues
increased 1.4% from $1,392,146 to $1,411,981 and total expenses decreased
1.2% from $1,063,091 to $1,050,100. As a result, net income increased 10%
from $329,055 for the nine months ended September 30, 1995, to $361,881 for
the same period in 1996. Rental revenue increased as a result of higher unit
rental rates during the first six months of the period. Operating expenses
decreased approximately $10,200 (2.1%) primarily as a result of decreases
in yellow page advertising costs and office expenses partially offset by
increases in real estate expense. General and administrative expenses
increased approximately $6,200 (4.9%) primarily as a result of higher
management incentive fees, which are based on cash available for distribution.
The General Partners will continue their policy of funding improvements and
maintenance of Partnership properties with cash generated from operations.
The Partnership's financial 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 VII, P.O. Box 357,
Long Beach, California 90801.
Very truly yours,
DSI REALTY INCOME FUND VII
By: DSI Properties, Inc., as
General Partner
By /s/ Robert J. Conway
____________________________
ROBERT J. CONWAY, President
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
BALANCE SHEETS(UNAUDITED)
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 476,701 $ 470,517
PROPERTY 3,813,158 4,195,138
OTHER ASSETS 35,865 31,660
TOTAL $4,325,724 $4,697,315
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 553,408 $ 559,608
PARTNERS' EQUITY:
General Partners (70,044) (66,391)
Limited Partners 3,842,360 4,204,098
Total partners' equity 3,772,316 4,137,707
TOTAL $4,325,724 $4,697,315
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $ 467,923 $ 474,327
Interest 2,887 2,978
Total revenues 470,810 477,305
EXPENSES:
Operating Expenses 303,830 315,608
General and administrative 33,681 33,969
Total expenses 337,511 349,577
NET INCOME $ 133,299 $ 127,728
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 131,966 $ 126,451
General partners 1,333 1,277
TOTAL $ 133,299 $ 127,728
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 5.50 $ 5.27
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 24,000 24,000
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $1,403,190 $1,382,826
Interest 8,791 9,320
Total Revenues 1,411,981 1,392,146
EXPENSES:
Operating Expenses 916,933 936,113
General and administrative 133,167 126,978
Total expenses 1,050,100 1,063,091
NET INCOME $361,881 $329,055
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners 358,262 325,764
General partners 3,619 3,291
TOTAL 361,881 329,055
NET INCOME PER LIMITED
PARTNERSHIP UNIT $14.93 $13.57
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 24,000 24,000
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1994 ($ 61,293) $4,708,784 $4,647,491
NET INCOME 3,291 325,764 329,055
DISTRIBUTIONS (7,272) (720,000) (727,272)
EQUITY AT SEPTEMBER 30, 1995 ($65,274) $4,314,548 $4,249,274
EQUITY AT DECEMBER 31, 1995 ($66,391) $4,204,098 $4,137,707
NET INCOME 3,619 358,262 361,881
DISTRIBUTIONS (7,272) (720,000) (727,272)
EQUITY AT SEPTEMBER 30, 1996 ($70,044) $3,842,360 $3,772,316
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 361,881 $ 329,055
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 381,980 381,980
Changes in assets and
liabilities:
Increase in other assets (4,205) 0
Increase(Decrease) in
liabilities: (6,200) 27,378
Net cash provided by
operating activities 733,456 738,413
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment 0 (5,519)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (727,272) (727,272)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 6,184 5,622
CASH AND CASH EQUIVALENTS:
At beginning of period 470,517 486,497
At end of period $ 476,701 $ 492,119
See accompanying notes to financial statements(unaudited).
</TABLE>
DSI REALTY INCOME FUND VII
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
DSI Realty Income Fund VII (the "Partnership"), has two general partners
(DSI Properties, Inc., and Diversified Investors Agency) and limited
partners owning 24,000 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, 1996, and for
the periods ended September 30, 1996, and 1995 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 15 years. The total cost of property and
accumulated depreciation at September 30, 1996, is as follows:
<TABLE>
<S> <C>
Land $ 2,089,800
Buildings and equipment 7,663,809
Equipment 37,672
Total 9,791,281
Less: Accumulated Depreciation ( 5,978,123)
Property - Net $ 3,813,158
</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-31-1996 DEC-31-1996
<PERIOD-END> SEP-30-1996 DEC-31-1996
<CASH> 476701 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9791281 0
<DEPRECIATION> 5978123 0
<TOTAL-ASSETS> 4325724 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4325724 0
<SALES> 1403190 0
<TOTAL-REVENUES> 1411981 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 361881 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 361881 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 361881 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
