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, 1999
/___/ 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 June 30, 1999 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, 1999.
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, 1999.
(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, 1999 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, 1999 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, 1999
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, 1999. 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, 1999, and 1998, total revenues
increased 4.2% from $535,517 to $557,813 and total expenses increased 3.1%
from $376,519 to $388,033. As a result, net income increased 6.8% from
$158,998 for the three-month period ended June 30, 1998, to $169,780 for the
same period in 1999. Rental revenue increased as a result of higher unit
rental rates. Operating expenses increased approximately $9,100 (2.8%)
primarily as a result of relatively insignificant fluctuations in various
expense accounts. General and administrative expneses remained constant.
Occupancy levels for the Partnership's six mini-storage facilities averaged
85.9% for the three-month period ended June 30, 1999, and 89.2% for the same
period in 1998. The Partnership is continuing its marketing efforts to attract
andk keep new tenants in its various mini-storage facilities.
For the six month periods ended June 30, 1999, and 1998, total revenues
increased 4.7% from $1,059,947 to $1,109,545 and total expenses increased 4.1%
from $755,768 to $786,970. As a result, net income increased 6.0% from
$304,179 for the six months ended June 30, 1998, to $322,575 for the same
period in 1999. Rental revenue increased primarily as a result of higher
unit rental rates during the six-month period. Operating expenses increased
approximately $33,000 (5.2%) primarily due to increases in maintenance and
repair, salaries and wage expenses and propterty management 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
constant.
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.
The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000. The Partnership has implemented
a Year 2000 program, which has three phases: (1) identification; (2)
remediation; and (3) testing and verification. The Partnership, as well as
the property management company and the Partnership's warehouse facilities
have completed those phases. Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expnesed in the regular
course of business. The Partnership provides no assurance that third-party
suppliers and customers will be compliant. Nevertheless, the Partnership
does not believe that the Year 2000 issue will have a material adverse effect
on its financial condition or results of operations.
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, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 526,400 $ 459,100
PROPERTY, Net 2,417,451 2,672,106
OTHER ASSETS 45,259 44,142
TOTAL $2,989,110 $3,175,348
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 522,256 $ 546,221
PARTNERS' EQUITY (DEFICIT):
General Partners (83,099) (81,477)
Limited Partners 2,549,953 2,710,604
Total partners' equity 2,466,854 2,629,127
TOTAL $2,989,110 $3,175,348
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental income $ 556,244 $ 531,898
Interest 1,569 3,619
Total revenues 557,813 535,517
EXPENSES:
Operating 337,950 328,801
General and administrative 50,083 47,718
Total expenses 388,033 376,519
NET INCOME $ 169,780 $ 158,998
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 168,082 $ 157,408
General Partners 1,698 1,590
TOTAL $ 169,780 $ 158,998
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.00 $ 6.56
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, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental income $1,106,249 $1,053,622
Interest 3,296 6,325
Total revenues 1,109,545 1,059,947
EXPENSES:
Operating 671,715 638,714
General and administrative 115,255 117,054
Total expenses 786,970 755,768
NET INCOME $ 322,575 $ 304,179
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 319,349 $ 301,137
General Partners 3,226 3,042
TOTAL $ 322,575 $ 304,179
NET INCOME PER LIMITED
PARTNERSHIP UNIT $13.31 $12.55
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 (DEFICIT)(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 1998 ($76,105) $3,251,237 $3,175,222
NET INCOME 3,042 301,137 304,179
DISTRIBUTIONS (4,848) (480,000) (484,848)
BALANCE AT JUNE 30, 1998 ($77,821) $3,072,374 $2,994,553
BALANCE AT JANUARY 1, 1999 ($81,477) $2,710,604 $2,629,127
NET INCOME 3,226 319,349 322,575
DISTRIBUTIONS (4,848) (480,000) (484,848)
BALANCE AT JUNE 30, 1999 ($83,099) $2,549,953 $2,466,854
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 322,575 $ 304,179
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 254,655 254,654
Changes in assets and
liabilities:
Increase in other assets (1,117) (44,582)
Decrease(increase)in liabilities (23,965) 16,565
Net cash provided by
operating activities 552,148 530,816
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (484,848) (484,848)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 67,300 45,968
CASH AND CASH EQUIVALENTS:
At beginning of period 459,100 500,294
At end of period $ 526,400 $ 546,262
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, 1999, and for
the periods ended June 30, 1999, and 1998, 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, 1999, is as follows:
<TABLE>
<S> <C>
Land $ 2,089,800
Buildings and equipment 7,662,434
Equipment 55,035
Total 9,807,269
Less: Accumulated Depreciation ( 7,389,818)
Property - Net $ 2,417,451
</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-31-1999 DEC-31-1999
<PERIOD-END> JUN-30-1999 DEC-31-1999
<CASH> 526400 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9807269 0
<DEPRECIATION> 7389818 0
<TOTAL-ASSETS> 2989110 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 2989110 0
<SALES> 1106249 0
<TOTAL-REVENUES> 1109545 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 322575 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 322575 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 322575 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
