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, 1997
/___/ 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-(562)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, 1997, 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, 1997.
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, 1997.
(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, 1997 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, 1997 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, 1997
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, 1997. 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, 1997, and 1996, total
revenues increased 4.9% from $410,582 to $430,542 and total expenses decreased
0.9% from $287,857 to $285,306. Equity in income of the real estate joint
venture increased 2.0% from $24,134 to $24,611. As a result, net income
increased 15.7% from $146,859 to $169,847 for the three month period ended
September 30, 1997, as compared to the same period in 1996. Rental revenue
increased as a result of higher occupancy and unit rental rates. Operating
expenses decreased approximately $6,200 (2.4%) primarily as a result of lower
real estate tax expense partially offset by higher yellow pages advertising
costs and legal expenses. Real estate tax expense decreased as a result of
refunds received from prior year reassessments. General and administrative
expenses increased approximately $3,700 (10.9%) primarily as a result of
higher incentive management fees. Incentive management fees, which are based
on cash available for distribution, increased as a result of the increase in
net income. Equity in income from the real estate joint venture remained
constant. Occupancy levels for the Partnership's five mini-storage facilities
averaged 86.8% for the three month periods ended September 30, 1997 as compared
to 84.1% for the same period in 1996. The Partnership is continuing its
advertising campaign to attract and keep new tenants in its various mini-
storage facilities.
For the nine month periods ended September 30, 1997, and 1996, total revenues
increased 3.6% from $1,229,003 to $1,273,012 and total expenses increased 4.3%
from $884,713 to $923,026. Equity in income of the real estate joint venture
decreased 1.0% from $67,095 to $66,421. As a result, net income increased
1.2% from $411,385 to $416,407 for the nine month period ended September 30,
1997, as compared to the same period in 1996. Rental revenue increased as a
result of higher occupancy and unit rental rates. Operating expenses increased
approximately $33,600 (4.5%) primarily as a result of increases in yellow pages
advertising costs, legal, fire and liability insurance and salaries and wage
expenses partially offset by a decrease in real estate tax expense. The decrease
in real estate tax expense was discussed above. General and administrative
expenses increased approximately $4,700 (3.4%) primarily as a result of
Colorado State Taxes, which were levied for the first time. Equity in income
from the real estate joint venture 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 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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 426,436 $ 389,413
PROPERTY 3,504,462 3,856,310
INVESTMENT IN REAL ESTATE
JOINT VENTURE 327,864 364,645
OTHER ASSETS 21,684 21,684
TOTAL $4,280,446 $4,632,052
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 660,174 $ 610,006
PARTNERS' EQUITY:
General Partners (71,577) (67,560)
Limited Partners 3,691,849 4,089,606
Total partners' equity 3,620,272 4,022,046
TOTAL $4,280,446 $4,632,052
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
REVENUES:
<S> <C> <C>
Rental Income $ 428,743 $ 407,863
Interest 1,799 2,719
Total revenues 430,542 410,582
EXPENSES:
Operating Expenses 247,659 253,892
General and administrative 37,647 33,965
Total expenses 285,306 287,857
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 145,236 122,725
EQUITY IN INCOME OF REAL ESTATE 24,611 24,134
NET INCOME $ 169,847 $ 146,859
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 168,149 $ 145,390
General partners 1,698 1,469
TOTAL $ 169,847 $ 146,859
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.01 $ 6.06
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, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $1,267,821 $1,220,928
Interest 5,191 8,075
Total Revenues 1,273,012 1,229,003
EXPENSES:
Operating Expenses 781,159 747,581
General and Administrative 141,867 137,132
Total Expenses 923,026 884,713
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 349,986 344,290
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 66,421 67,095
NET INCOME $416,407 $411,385
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 412,243 407,271
General Partners 4,164 4,114
TOTAL 416,407 411,385
NET INCOME PER LIMITED
PARTNERSHIP UNIT $17.18 $16.97
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, 1997 AND 1996
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
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
EQUITY AT DECEMBER 31, 1996 ($67,560) $4,089,606 $4,022,046
NET INCOME 4,164 412,243 416,407
DISTRIBUTIONS (8,181) (810,000) (818,181)
EQUITY AT SEPTEMBER 30, 1997 ($71,577) $3,691,849 $3,620,272
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 416,407 $411,385
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 36,779 33,256
Changes in assets and
liabilities:
Decrease in other assets 0 39,012
Increase in liabilities 50,168 36,063
Net cash provided by
operating activities 855,204 871,566
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment 0 (19,800)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (818,181) (818,181)
NET DECREASE IN CASH AND
CASH EQUIVALENTS 37,023 33,585
CASH AND CASH EQUIVALENTS:
At beginning of period 389,413 445,657
At end of period $ 426,436 $479,242
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, 1997, and for
the periods ended September 30, 1997, and 1996 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, 1997,
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 ( 5,895,176)
Property - Net $ 3,504,462
</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, 1997, and 1996 is as follows:
<TABLE>
1997 1996
<S> <C> <C>
Revenue $489,546 $476,294
Operating Expenses 268,143 252,644
Net Income $221,403 $223,650
</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-31-1997 DEC-31-1997
<PERIOD-END> SEP-30-1997 DEC-31-1997
<CASH> 426436 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9399638 0
<DEPRECIATION> 5895176 0
<TOTAL-ASSETS> 4280446 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4280446 0
<SALES> 1267821 0
<TOTAL-REVENUES> 1273012 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 416407 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 416407 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 416407 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
