July 31, 2000
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, 2000. 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, 2000, and 1999, total revenues
increased 5.1% from $557,813 to $586,402 and total expenses increased 2.6%
from $388,033 to $398,031. As a result, net income increased 11.0% from
$169,780 for the three-month period ended June 30, 1999, to $188,371 for the
same period in 2000. Rental revenue increased primarily as a result of
higher occupancy and unit rental rates. Occupancy levels for the Partnership's
six mini-storage facilities averaged 87.1% for the three-month period ended
June 30, 2000 and 85.9% for the same period in 1999. The Partnership is
continuing its marketing efforts to attract and keep new tenants in its various
mini-storage facilities. Operating expenses increased approximately $4,400
(1.3%) primarily as a result of increases in yellow pages and miscellaneous
advertising costs, maintenance and repair and office supplies expenses,
partially offset by a decrease in salaries and wages. General and administra-
tive expenses increased approximately $5,600 (11.2%) primarily as a result
of an increase in legal and professional expense.
For the six month periods ended June 30, 2000, and 1999, total revenues
increased 1.8% from $1,109,545 to $1,129,637 and total expenses increased 0.4%
from $786,970 to $790,475. As a result, net income increased 5.1% from
$322,575 for the six months ended June 30, 1999, to $339,162 for the same
period in 2000. Rental revenue increased primarily as a result of higher
occupancy and unit rental rates. Operating expenses decreases approximately
$2,400 (0.4%) primarily due to decreases in miscellaneous advertising, main-
tenance and repair and salaries and wages expenses, partially offset by
increases in yellow pages advertising costs and office supplies expenses.
General and administrative expenses increased approximately $5,900 (5.1%)
primarily as a result of increases in legal and professional and equipment
and computer lease expenses.
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
