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 March 31, 1998
/___/ 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.)
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 March 31, 1998 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 March 31, 1998.
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 March 31, 1998.
(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: April 30, 1998 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: April 30, 1998 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
April 30, 1998
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 March 31, 1998. 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 March 31, 1998 and 1997, total revenues
increased 11.3% from $471,316 to %524,430 and total expenses increased 4.0%
from $361,795 to $376,249. As a result, net income increased 35.3% from
$109,521 for the three month period ended March 31, 1997, to $148,181 for the
same period in 1998. Occupancy levels for the Partnership's six mini-storage
facilities averaged 84.6% for the three month period ended March 31, 1998, and
85.7% for the same period in 1997. Rental revenue increased primarily as a
result of higher 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 $10,500 (3.5%) primarily as a result
of increases in repairs and maintenance expense, management fees and 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 $3,900 (6.2%) primarily as a
result of an increase in incentive management fees. Incentive management fees,
which are based on cash available for distribution, increased as a result of the
increase in net income.
The General Partners will continue their policy of funding the continuing
improvement 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)
MARCH 31, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 504,304 $ 500,294
PROPERTY 3,054,084 3,181,412
OTHER ASSETS 51,437 37,660
TOTAL $3,609,825 $3,719,366
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 528,846 $ 544,144
PARTNERS' EQUITY:
General Partners (76,957) (76,015)
Limited Partners 3,157,936 3,251,237
Total partners' equity 3,080,979 3,175,222
TOTAL $3,609,825 $3,719,366
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
March 31, March 31,
1998 1997
REVENUES:
Rental Income $ 521,724 $ 468,687
Interest 2,706 2,629
Total revenues 524,430 471,316
EXPENSES:
Operating Expenses 309,913 299,370
General and administrative 64,336 62,425
Total expenses 376,249 361,795
NET INCOME $ 148,181 $ 105,521
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 146,699 $ 108,426
General partners 1,482 1,095
TOTAL $ 148,181 $ 109,521
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.11 $ 4.52
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 MARCH 31, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1996 ($ 71,568) $3,691,570 $3,620,002
NET INCOME 1,095 108,426 109,521
DISTRIBUTIONS (2,424) (240,000) (242,424)
EQUITY AT MARCH 31, 1997 ($72,897) $3,559,996 $3,487,099
EQUITY AT DECEMBER 31, 1997 ($76,015) $3,251,237 $3,175,222
NET INCOME 1,482 146,699 148,181
DISTRIBUTIONS (2,424) (240,000) (242,424)
EQUITY AT MARCH 31, 1998 ($76,957) $3,157,936 $3,080,979
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
<TABLE>
<CAPTION>
March 31, March 31,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 148,181 $ 109,521
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 127,328 127,328
Changes in assets and
liabilities:
Increase in other assets (13,777) (48,117)
(Decrease)Increase in
liabilities: (15,298) 10,043
Net cash provided by
operating activities 246,434 198,775
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (242,424) (242,424)
NET INCREASE(DECREASE) IN CASH AND
CASH EQUIVALENTS 4,010 (43,649)
CASH AND CASH EQUIVALENTS:
At beginning of period 500,294 481,301
At end of period $ 504,304 $ 437,652
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 March 31, 1998, and for
the periods ended March 31, 1998, and 1997 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 March 31, 1998, is as follows:
<TABLE>
<S> <C>
Land $ 2,089,800
Buildings and equipment 7,662,434
Equipment 55,058
Total 9,807,292
Less: Accumulated Depreciation ( 6,753,208)
Property - Net $ 3,054,084
============
</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-31-1998 DEC-31-1998
<PERIOD-END> MAR-31-1998 DEC-31-1998
<CASH> 504304 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 3609825 0
<PP&E> 9807292 0
<DEPRECIATION> 6753208 0
<TOTAL-ASSETS> 3609825 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 3609825 0
<SALES> 521724 0
<TOTAL-REVENUES> 524430 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 148181 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 148181 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 148181 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
