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, 1996
/___/ Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934
for the transition period from ______________ to ________________.
Commission File Number 2-90168
DSI REALTY INCOME FUND VIII, A California Limited Partnership
(Exact name of registrant as specified in its charter)
California_______________________________________95-0050204
(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-(310)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, 1996, 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, 1996.
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, 1996.
(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, 1996 DSI REALTY INCOME FUND VIII
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, 1996 DSI REALTY INCOME FUND VIII
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, 1996
QUARTERLY REPORT TO THE LIMITED PARTNERS
OF DSI REALTY INCOME FUND VIII
DEAR LIMITED PARTNERS:
We are pleased to enclose the Partnership's unaudited financial
statements for the period ended September 30, 1996. 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, 1996 and 1995, total
revenues decreased 1.0% from $414,675 to $410,582 and total expenses
decreased 4.6% from $301,664 to $287,857. Equity in income of the real
estate joint venture decreased 21.9% from $30,888 to $24,134. As a result,
net income increased 2.1% from $143,899 to $146,859 for the three month
period ended September 30, 1996, as compared to the same period in 1995.
Rental revenue remained constant as a result of higher unit rental rates,
even though average occupancy rates decreased. Occupancy levels for the
Partnership's five mini-storage facilities averaged 84.1% for the three
month period ended September 30, 1996, and 86.5% for the same period in 1995.
The Partnership is continuing its advertising campaign to attract and
keep new tenants in its various mini-storage facilities. Operating
expenses decreased approximately $14,400 (5.4%) primarily as a result of
lower maintenance and repair expenses. General and administrative expenses
remained constant. Equity in income from the real estate joint venture
decreased as a result of lower occupancy and unit rental rates which
resulted in decreased rental revenue for the period.
For the nine month periods ended September 30, 1996, and 1995, total revenues
decreased slightly from $1,235,829 to 1,229,003 and total expenses decreased
1.3% from $895,966 to $884,713. Equity in income of the real estate joint
venture decreased 21.4% from $85,363 to $67,095. As a result, net income
decreased 3.3% from $425,226 to $411,385 for the nine month period ended
September 30, 1996, as compared to the same period in 1995. The revenue
decrease can be attributed to a decrease in sale of abandoned goods partially
offset by a slight increase in rental income. Operating expenses decreased
approximately $13,100 (1.7%) primarily as a result of decreases in yellow
page advertising costs, maintenance and repair and real estate tax expenses,
partially offset by an increase in legal and professional fees. General
and administrative expenses remained relatively constant. Equity in
income from the real estate joint venture decreased as a result of lower
occupancy and unit rental rates which resulted in decreased rental revenue
for the period and higher maintenance and repair 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 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 VIII, P.O. Box 357, Long
Beach, California 90801.
Very truly yours,
DSI REALTY INCOME FUND VIII
By: DSI Properties, Inc., as
General Partner
By /s/ Robert J. Conway
____________________________
ROBERT J. CONWAY, President
DSI REALTY INCOME FUND VIII
(A California Real Estate Limited Partnership)
BALANCE SHEETS(UNAUDITED)
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 479,242 $ 445,657
PROPERTY 3,986,158 4,318,209
INVESTMENT IN REAL ESTATE
JOINT VENTURE 384,411 417,666
OTHER ASSETS 25,314 64,326
TOTAL $4,875,125 $5,245,858
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 646,271 $ 610,208
PARTNERS' EQUITY:
General Partners (65,491) (61,424)
Limited Partners 4,294,345 4,697,074
Total partners' equity 4,228,854 4,635,650
TOTAL $4,875,125 $5,245,858
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
REVENUES:
<S> <C> <C>
Rental Income $ 407,863 $ 410,758
Interest 2,719 3,917
Total revenues 410,582 414,675
EXPENSES:
Operating Expenses 253,892 268,245
General and administrative 33,965 33,419
Total expenses 287,857 301,664
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 122,725 113,011
EQUITY IN INCOME OF REAL ESTATE 24,134 30,888
NET INCOME $ 146,859 $ 143,899
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 145,390 $ 142,460
General partners 1,469 1,439
TOTAL $ 146,859 $ 143,899
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.06 $ 5.94
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, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $1,220,928 $1,224,172
Interest 8,075 11,657
Total Revenues 1,229,003 1,235,829
EXPENSES:
Operating Expenses 747,581 760,672
General and Administrative 137,132 135,294
Total Expenses 884,713 895,966
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 344,290 339,863
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 67,095 85,363
NET INCOME $411,385 $425,226
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 407,271 420,974
General Partners 4,114 4,252
TOTAL 411,385 425,226
NET INCOME PER LIMITED
PARTNERSHIP UNIT $16.97 $17.54
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 24,000 24,000
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1994 ($ 56,080) $5,226,130 $5,170,050
NET INCOME 4,252 420,974 425,226
DISTRIBUTIONS (8,181) (810,000) (818,181)
EQUITY AT SEPTEMBER 30, 1995 ($60,009) $4,837,104 $4,777,095
EQUITY AT DECEMBER 31, 1995 ($61,424) $4,697,074 $4,635,650
NET INCOME 4,114 407,271 411,385
DISTRIBUTIONS (8,181) (810,000) (818,181)
EQUITY AT SEPTEMBER 30, 1996 ($65,491) $4,294,345 $4,228,854
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 411,385 $425,226
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 351,850 351,850
Distributions in excess
of earnings in
real estate joint venture 33,256 41,537
Changes in assets and
liabilities:
Decrease in other assets 39,012 100,000
Increase in liabilities 36,063 43,444
Net cash provided by
operating activities 871,566 962,057
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment (19,800) (15,175)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (818,181) (818,181)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 33,585 128,701
CASH AND CASH EQUIVALENTS:
At beginning of period 445,657 424,960
At end of period $ 479,242 $553,661
See accompanying notes to financial statements(unaudited).
</TABLE>
DSI REALTY INCOME FUND VIII
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
DSI Realty Income Fund VIII (the "Partnership"), a limited 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, 1996, and for
the periods ended September 30, 1996, and 1995 is unaudited. Such financial
information includes all adjustments considered necessary by the
Partnership's management for a fair presentation of the results for the
periods indicated.
2. PROPERTY
The Partnership owns five mini-storage facilities located in Stockton,
Pittsburg, El Centro, Lompoc and Huntington Beach, California. The total
cost of property and accumulated depreciation at September 30, 1996,
is as follows:
<TABLE>
<S> <C>
Land $ 2,305,310
Buildings and improvements 7,071,497
Equipment 22,831
Total 9,399,638
Less: Accumulated Depreciation ( 5,413,480)
Property - Net $ 3,986,158
</TABLE>
3. INVESTMENT IN REAL ESTATE JOINT VENTURE
The Partnership is involved in a joint venture with DSI Realty Income
Fund IX through which the Partnership has a 30% interest in a mini-storage
facility in Aurora, Colorado. Under the terms of the joint venture
agreement, the Partnership is entitled to 30% of the profits and losses of
venture and owns 30% of the mini-storage facility as a tenant in common
with DSI Realty Income Fund IX, which has the remaining 70% interest in
the venture. Summarized income statement information for the nine months
ended September 30, 1996, and 1995 is as follows:
<TABLE>
1996 1995
<S> <C> <C>
Revenue $476,294 $530,834
Operating Expenses 252,644 246,291
Net Income $223,650 $284,543
</TABLE>
The Partnership accounts for its investment in the real estate joint
venture under the equity method of accounting.
4. 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-31-1996 DEC-31-1996
<PERIOD-END> SEP-30-1996 DEC-31-1996
<CASH> 479242 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9399638 0
<DEPRECIATION> 5413480 0
<TOTAL-ASSETS> 4875125 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4875125 0
<SALES> 1220928 0
<TOTAL-REVENUES> 1229003 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 411385 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 411385 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 411385 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
