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, 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 September 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 September 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 September 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: October 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: October 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
October 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 September 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 periods ended September 30, 1997, and 1996, total revenues
increased 6.3% from $470,810 to $500,523 and total expenses increased 3.6% from
$337,511 to $349,716. As a result, net income increased 13.1% from $133,299
for the three month period ended September 30, 1996, to $150,807 for the same
period in 1997. Rental revenue increased as a result of higher occupancy and
unit rental rates. Operating expenses increased approximately $9,000 (3.0%)
as a result of increases in yellow pages advertising costs, maintenance and
repair and property mangagement fees. Property management fees, which are based
on rental income, increased as a result of the increase in rental revenue.
General and administrative expenses remained relatively constant. Occupancy
levels for the Partnership's six mini-storage facilities averaged 87.6% for the
same period in 1996. The Partnership is continuing its marketing efforts to
attract and keep new tenants in its various mini-storage facilities.
For the nine month periods ended September 30, 1997, and 1996, total revenues
increased 3.6% from $1,411,981 to $1,462,813 and total expenses increased 5.7%
from $1,050,100 to $1,109,904. As a result, net income decreased 2.5% from
$361,881 for the nine months ended September 30, 1996, to $352,909 for the same
period in 1997. Rental revenue increased as a result of higher occupancy and
unit rental rates during the nine months of the period. Operating expenses
increased approximately $51,800 (5.6%) primarily due to the same reasons as
discussed above. General and administrative expenses increased approximately
$8,000 (6.0%) primarily as a result of Colorado State Taxes, which were levied
for the first time.
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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 481,882 $ 481,301
PROPERTY 3,292,749 3,674,730
OTHER ASSETS 51,726 31,660
TOTAL $3,826,357 $4,187,691
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 580,718 $ 567,689
PARTNERS' EQUITY:
General Partners (75,311) (71,568)
Limited Partners 3,320,950 3,691,570
Total partners' equity 3,245,639 3,620,002
TOTAL $3,826,357 $4,187,691
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $ 498,008 $ 467,923
Interest 2,515 2,887
Total revenues 500,523 470,810
EXPENSES:
Operating Expenses 312,840 303,830
General and administrative 36,876 33,681
Total expenses 349,716 337,511
NET INCOME $ 150,807 $ 133,299
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 149,299 $ 131,966
General partners 1,508 1,333
TOTAL $ 150,807 $ 133,299
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.22 $ 5.50
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, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $1,455,385 $1,403,190
Interest 7,428 8,791
Total Revenues 1,462,813 1,411,981
EXPENSES:
Operating Expenses 968,702 916,933
General and administrative 141,202 133,167
Total expenses 1,109,904 1,050,100
NET INCOME $352,909 $361,881
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners 349,380 358,262
General partners 3,529 3,619
TOTAL 352,909 361,881
NET INCOME PER LIMITED
PARTNERSHIP UNIT $14.56 $14.93
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, 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 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
EQUITY AT DECEMBER 31, 1996 ($71,568) $3,691,570 $3,620,002
NET INCOME 3,529 349,380 352,909
DISTRIBUTIONS (7,272) (720,000) (727,272)
EQUITY AT SEPTEMBER 30, 1997 ($75,311) $3,320,950 $3,245,639
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 352,909 $ 361,881
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 381,981 381,980
Changes in assets and
liabilities:
Increase in other assets (20,066) (4,205)
Increase(Decrease) in
liabilities: 13,029 (6,200)
Net cash provided by
operating activities 727,853 733,456
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (727,272) (727,272)
NET DECREASE IN CASH AND
CASH EQUIVALENTS 581 6,184
CASH AND CASH EQUIVALENTS:
At beginning of period 481,301 470,517
At end of period $ 481,882 $ 476,701
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, 1997, and for
the periods ended September 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 September 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 ( 6,498,531)
Property - Net $ 3,292,749
</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> SEP-30-1997 DEC-31-1997
<CASH> 481882 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9791280 0
<DEPRECIATION> 6498531 0
<TOTAL-ASSETS> 3826357 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 3826357 0
<SALES> 1455385 0
<TOTAL-REVENUES> 1462813 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 352909 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 352909 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 352909 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
