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, 1997
/___/ 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-(562)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 June 30, 1997 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, 1997.
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, 1997.
(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, 1997 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: July 31, 1997 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
July 31, 1997
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 June 30, 1997. The following is Management's
discussion and analysis of the Partnership's financial condition and
results of its operations.
For the three month period ended June 30, 1997, and 1996, total revenues
increased 3.2% from $475,815 to $490,974 and total expenses increased 13.5%
from $351,030 to $398,393. As a result, net income decreased 25.8% from
$124,785 for the three month period ended June 30, 1996, to $92,581 for the
same period in 1997. Occupancy levels for the Partnership's six mini-storage
facilities averaged 89.4% for the three month period ended June 30, 1997,
and 87.6% for the same period in 1996. Rental revenue increased as a result
of higher occupancy and unit rental rates. The Partnership is continuing its
marketing effort to attract and keep new tenants in its various mini-storage
facilities. Operating expenses increased approximately $42,300 (13.5%) as a
result of increases in yellow pages advertising costs, maintenance and repair,
office and salaries and wage expenses. General and administrative expenses
increased approximately $5,100 (13.9%) primarily as a result of Colorado State
Taxes, which were levied for the first time, partially offset by a decrease in
incentive management fees. Incentive management fees which are based on cash
available for distribution, decreased as a result of the decrease in net
income.
For the six month periods ended June 30, 1997, and 1996, total revenues
increased 2.2% from $941,171 to $962,290 and total expenses increased 6.7%
from $712,589 to $760,188. As a result, net income decreased 11.6% from
$228,582 for the six months ended September 30, 1996, to $202,102 for the
same period in 1997. Rental revenue increased as a result of higher occupancy
and unit rental rates during the first six months of the period.
Operating expenses increased approximately $42,800 (7%) primarily due to the
same reasons as discussed above. General and administrative expenses
increased approximately $4,800 (4.9%) primarily due to the same reasons as
discussed above.
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)
JUNE 30, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 398,754 $ 481,301
PROPERTY 3,420,076 3,674,730
OTHER ASSETS 76,285 31,660
TOTAL $3,895,115 $4,187,691
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 577,859 $ 567,689
PARTNERS' EQUITY:
General Partners (74,395) (71,568)
Limited Partners 3,411,651 3,691,570
Total partners' equity 3,337,256 3,620,002
TOTAL $3,895,115 $4,187,691
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
June 30, June 30,
1997 1996
REVENUES:
Rental Income $ 488,690 $ 472,577
Interest 2,284 3,238
Total revenues 490,974 475,815
EXPENSES:
Operating Expenses 356,492 314,236
General and administrative 41,901 36,794
Total expenses 398,393 351,030
NET INCOME $ 92,581 $ 124,785
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 91,655 $ 123,537
General partners 926 1,248
TOTAL $ 92,581 $ 124,785
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 3.82 $ 5.15
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 24,000 24,000
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
June 30, June 30,
1997 1997
REVENUES:
Rental Income $ 957,377 $ 935,267
Interest 4,913 5,904
Total revenues 962,290 941,171
EXPENSES:
Operating Expenses 655,862 613,103
General and administrative 104,326 99,486
Total expenses 760,188 712,589
NET INCOME $ 202,102 $ 228,582
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 200,081 $ 226,296
General partners 2,021 2,286
TOTAL $ 202,102 $ 228,582
NET INCOME PER LIMITED
PARTNERSHIP UNIT $8.34 $9.43
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 THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1995 ($66,391) $4,204,098 $4,137,707
NET INCOME 2,286 226,296 228,582
DISTRIBUTIONS (4,848) (480,000) (484,848)
EQUITY AT JUNE 30, 1996 ($68,953) $3,950,394 $3,881,441
EQUITY AT DECEMBER 31, 1996 ($71,568) $3,691,570 $3,620,002
NET INCOME 2,021 200,081 202,102
DISTRIBUTIONS (4,848) (480,000) (484,848)
EQUITY AT JUNE 30, 1997 ($74,395) $3,411,651 $3,337,256
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 202,102 $ 228,582
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 254,654 254,654
Changes in assets and
liabilities:
Increase in other assets (44,625) (47,524)
Decrease in liabilities (9,830) (4,544)
Net cash provided by
operating activities 402,301 431,168
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (484,848) (484,848)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (82,547) (53,680)
CASH AND CASH EQUIVALENTS:
At beginning of period 481,301 470,517
At end of period $ 398,754 $ 416,837
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 June 30, 1997, and for
the periods ended June 30, 1997, and 1996, 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 June 30, 1997, is as follows:
<TABLE>
<S> <C>
Land $ 2,089,800
Buildings and equipment 7,662,434
Equipment 39,046
Total 9,791,280
Less: Accumulated Depreciation ( 6,371,204)
Property - Net $ 3,420,076
</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-31-1997 DEC-31-1997
<PERIOD-END> JUN-30-1997 DEC-31-1997
<CASH> 398754 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9791280 0
<DEPRECIATION> 6371204 0
<TOTAL-ASSETS> 3895115 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 3895115 0
<SALES> 957377 0
<TOTAL-REVENUES> 962290 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 202102 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 202102 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 202102 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
