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, 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 June 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 June 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 June 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: July 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: July 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
July 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 June 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 June 30, 1996 and 1995, total
revenues increased 2.1% from $400,533 to $409,006 and total expenses
decreased 2.3% from $289,733 to $283,141. Equity in income of the real
estate joint venture decreased 27.4% from $28,385 to $20,615. As a result,
net income increased 5.2% from $139,185 to $146,480 for the three month
period ended June 30, 1996, as compared to the same period in 1995.
Rental revenue increased as a result of higher unit rental rates. Occupancy
levels for the Partnership's five mini-storage facilities averaged
85.5% for the three month period ended June 30, 1996, and 85.8% 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 $5,700 (2.3%)
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 and higher
maintenance and repair expenses.
For the six month periods ended June 30, 1996, and 1995, total revenues
decreased slightly from $821,154 to $818,421 and total expenses increased
0.4% from $594,302 to $596,856. Equity in income of the real estate joint
venture decreased 21.1% from $54,475 to $42,961. As a result, net income
decreased 6% from $281,327 to $264,526 for the six month period ended June 30,
1996, as compared to the same period in 1995. The revenue decrease can be
attributed to a slight decrease in rental income. Operating and general and
administrative expenses remained relatively constant. The reason for the
decrease in equity in income from the real estate joint venture is the same
as discussed above.
The General Partners will continue their policy of funding continuing
improvement and maintenance of Partnership properties with cash generated
from operations. The Partnership's 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)
JUNE 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 420,968 $ 445,657
PROPERTY 4,103,441 4,318,209
INVESTMENT IN REAL ESTATE
JOINT VENTURE 398,078 417,666
OTHER ASSETS 36,487 64,326
TOTAL $4,958,974 $5,245,858
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 604,252 $ 610,208
PARTNERS' EQUITY:
General Partners (64,233) (61,424)
Limited Partners 4,418,955 4,697,074
Total partners' equity 4,354,722 4,635,650
TOTAL $4,958,974 $5,245,858
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30, June 30,
1996 1995
REVENUES:
<S> <C> <C>
Rental Income $ 406,006 $ 396,552
Interest 3,000 3,981
Total revenues 409,006 400,533
EXPENSES:
Operating Expenses 245,044 250,754
General and administrative 38,097 38,979
Total expenses 283,141 289,733
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 125,865 110,800
EQUITY IN INCOME OF REAL ESTATE 20,615 28,385
NET INCOME $ 146,480 $ 139,185
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 145,015 $ 137,793
General partners 1,465 1,392
TOTAL $ 146,480 $ 139,185
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.04 $ 5.74
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 SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30, June 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $813,065 $813,414
Interest 5,356 7,740
Total Revenues 818,421 821,154
EXPENSES:
Operating Expenses 493,689 492,427
General and Administrative 103,167 101,875
Total Expenses 596,856 594,302
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 221,565 226,852
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 42,961 54,475
NET INCOME $264,526 $281,327
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 261,881 278,514
General Partners 2,645 2,813
TOTAL 264,526 281,327
NET INCOME PER LIMITED
PARTNERSHIP UNIT $10.91 $11.60
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 24,000 24,000
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1994 ($ 56,080) $5,226,130 $5,170,050
NET INCOME 2,813 278,514 281,327
DISTRIBUTIONS (5,454) (540,000) (545,454)
EQUITY AT JUNE 30, 1995 ($58,721) $4,964,644 $4,905,923
EQUITY AT DECEMBER 31, 1995 ($61,424) $4,697,074 $4,635,650
NET INCOME 2,645 261,881 264,526
DISTRIBUTIONS (5,454) (540,000) (545,454)
EQUITY AT JUNE 30, 1996 ($64,233) $4,418,955 $4,354,722
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30, June 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 264,526 $281,327
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 234,567 234,567
Distributions in excess
of earnings in
real estate joint venture 19,589 26,225
Changes in assets and
liabilities:
Decrease in other assets 27,839 100,000
(Decrease)Increase in liabilities (5,956) 9,062
Net cash provided by
operating activities 540,565 651,181
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment (19,800) (6,060)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (545,454) (545,454)
NET INCREASE IN CASH AND
CASH EQUIVALENTS (24,689) 99,667
CASH AND CASH EQUIVALENTS:
At beginning of period 445,657 424,960
At end of period $ 420,968 $524,627
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 June 30, 1996, and for
the periods ended June 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 June 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 ( 5,296,197)
Property - Net $ 4,103,441
</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 six months
ended June 30, 1996, and 1995 is as follows:
<TABLE>
1996 1995
<S> <C> <C>
Revenue $315,861 $348,906
Operating Expenses 172,659 167,323
Net Income $143,202 $181,583
</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> JUN-30-1996 DEC-31-1996
<CASH> 420968 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9399638 0
<DEPRECIATION> 5296197 0
<TOTAL-ASSETS> 4958974 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4958974 0
<SALES> 813065 0
<TOTAL-REVENUES> 818421 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 264526 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 264526 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 264526 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>