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, 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 September 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 September 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 September 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: October 29, 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: October 29, 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
October 29,1999
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 September 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 periods ended September 30, 1999 and 1998, total revenues
decreased 1.2% from $557,846 to $551,139 and total expenses decreased 3.0% from
$388,467 to $376,699. As a result, net income increased 3.0% from $169,379 for
the three-month period ended September 30, 1998, to $174,440 for the same period
in 1999. Rental revenue decreased primarily as a result of lower occupancy
levels. Occupancy levels for the Partnership's six mini-storage facilities
averaged 84.6% for the three-month period ended September 30, 1999 and 88.4%
for the same period in 1998. The Partnership is continuing its marketing
efforts to attract and keep new tenants in its various mini-storage facilities.
Operating expenses decreased approximately $16,900 (4.8%) primarily as a result
of a decrease in maintenance and repair expense, partially offset by an
increase in security and alarm service expenses. General and administrative
expenses increased approximately $5,200 (13.8%) primarily as a result of
relatively insignificant fluctuations in various expense accounts.
For the nine-month periods ended September 30, 1999, and 1998, total revenues
increased 2.7% from $1,617,793 to $1,660,684 and total expenses increased 1.7%
from $1,144,235 to $1,163,669. As a result, net income increased 5.0% from
$473,558 for the nine months ended September 30, 1998, to $497,015 for the
same period in 1999. Rental revenue increased primarily as a result of higher
unit rental rates during the nine-month period. Operating expenses increased
approximately $16,100 (1.6%) primarily due to increases in miscellaneous
advertising, salaries and wages, property management fees, workers compensation
and security and alarm service expenses, partially offset by a decrease in
maintenance and repair expenses. Property management fees, which are based
on rental income, increased as a result of the increase in rental revenue.
General and administrative expenses increased approximately $3,400 (2.2%) 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.
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 expensed 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)
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 608,086 $ 459,100
PROPERTY, Net 2,313,550 2,672,106
OTHER ASSETS 45,259 44,142
TOTAL $2,966,895 $3,175,348
LIABILITIES AND PARTNERS' EQUITY(DEFICIT)
LIABILITIES $ 568,025 $ 546,221
PARTNERS' EQUITY (DEFICIT):
General Partners (83,779) (81,477)
Limited Partners 2,482,649 2,710,604
Total partners' equity 2,398,870 2,629,127
TOTAL $2,966,895 $3,175,348
See accompanying notes to financial statements (unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental income $ 549,595 $ 554,104
Interest 1,544 3,742
Total revenues 551,139 557,846
EXPENSES:
Operating 333,939 350,881
General and administrative 42,760 37,586
Total expenses 376,699 388,467
NET INCOME $ 174,440 $ 169,379
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 172,696 $ 167,685
General partners 1,744 1,694
TOTAL $ 174,440 $ 169,379
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.20 $ 6.99
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, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental income $1,655,844 $1,607,726
Interest 4,840 10,067
Total revenues 1,660,684 1,617,793
EXPENSES:
Operating 1,005,654 989,595
General and administrative 158,015 154,640
Total expenses 1,163,669 1,144,235
NET INCOME $497,015 $473,558
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners 492,045 468,822
General partners 4,970 4,736
TOTAL 497,015 473,558
NET INCOME PER LIMITED
PARTNERSHIP UNIT $20.50 $19.53
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT JANUARY 1, 1998 ($76,015) $3,251,237 $3,175,222
NET INCOME 4,736 468,822 473,558
DISTRIBUTIONS (7,272) (720,000) (727,272)
EQUITY AT SEPTEMBER 30, 1998 ($78,551) $3,000,059 $2,921,508
BALANCE AT JANUARY 1, 1999 ($81,477) $2,710,604 $2,629,127
NET INCOME 4,970 492,045 497,015
DISTRIBUTIONS (7,272) (720,000) (727,272)
BALANCE AT SEPTEMBER 30, 1999 ($83,779) $2,482,649 $2,398,870
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 497,015 $ 473,558
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 381,980 381,981
Changes in assets and
liabilities:
Increase in other assets (1,117) (25,092)
Increase in liabilities: 21,804 35,029
Net cash provided by
operating activities 899,682 865,476
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to property and equipment (23,424) 0
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (727,272) (727,272)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 148,986 138,204
CASH AND CASH EQUIVALENTS:
At beginning of period 459,100 500,294
At end of period $ 608,086 $ 638,498
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, 1999, and for
the periods ended September 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 September 30, 1999, is as follows:
<TABLE>
<S> <C>
Land $ 2,089,800
Buildings and equipment 7,680,134
Equipment 60,760
Total 9,830,694
Less: Accumulated Depreciation ( 7,517,144)
Property - Net $ 2,313,550
</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> SEP-30-1999 DEC-31-1999
<CASH> 608086 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9830694 0
<DEPRECIATION> 7517144 0
<TOTAL-ASSETS> 2966895 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 2966895 0
<SALES> 1655844 0
<TOTAL-REVENUES> 1660684 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 497015 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 497015 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 497015 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
