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, 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 June 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 June 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 June 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: July 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: July 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
July 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 June 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 June 30, 1997 and 1996, total
revenues increased 3.4% from $409,006 to $422,832 and total expenses
increased 11.8% from $283,141 to $316,487. Equity in income of the real
estate joint venture increased 5.6% from $20,615 to $21,764. As a result,
net income decreased 12.5% from $146,480 to $128,109 for the three month
period ended June 30, 1997, as compared to the same period in 1996. Rental
revenue increased as a result of higher unit rental rates. Operating
expenses increased approximately $31,400 (12.8%) primarily as a result of
higher yellow pages advertising costs, maintenance and repair and salaries
and wage expenses. General and administrative expenses remained constant.
Equity in income from the real estate joint venture increased as a result
of higher occupancy rates partially offset by lower unit rental rates
which resulted in increased rental revenue for the period. Occupancy
levels for the Partnership's five mini-storage facilities averaged 85.5%
for the three month periods ended June 30, 1997 and 1996. The Partnership
is continuing its advertising campaign to attract and keep new tenants in
its various mini-storage facilities.
For the six month periods ended June 30, 1997, and 1996, total revenues
increased 2.9% from $818,421 to $842,470 and total expenses increased 6.8%
from $596,856 to $637,720. Equity in income of the real estate joint
venture decreased 2.7% from $42,961 to $41,810. As a result, net income
decreased 6.8% from $264,526 to $246,560 for the six month period ended
June 30, 1997, as compared to the same period in 1996. Rental revenue
increased as a result of higher unit rental rates. Operating expenses
increased approximately $39,800 (8.1%) primarily as a result of increases
in yellow pages advertising costs, fire and liability insurance and salaries
and wage expenses. General and administrative expenses remained constant.
Equity in income from the real estate joint venture decreased as a result
of a non-recurring termination payment to the facility manager partially
offset by an increase in rental revenue 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 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 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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 352,066 $ 389,413
PROPERTY 3,621,746 3,856,310
INVESTMENT IN REAL ESTATE
JOINT VENTURE 343,756 364,645
OTHER ASSETS 21,684 21,684
TOTAL $4,339,252 $4,632,052
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 616,100 $ 610,006
PARTNERS' EQUITY:
General Partners (70,548) (67,560)
Limited Partners 3,793,700 4,089,606
Total partners' equity 3,723,152 4,022,046
TOTAL $4,339,252 $4,632,052
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
June 30, June 30,
1997 1996
REVENUES:
<S> <C> <C>
Rental Income $ 421,223 $ 406,006
Interest 1,609 3,000
Total revenues 422,832 409,006
EXPENSES:
Operating Expenses 276,397 245,044
General and administrative 40,090 38,097
Total expenses 316,487 283,141
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 106,345 125,865
EQUITY IN INCOME OF REAL ESTATE 21,764 20,615
NET INCOME $ 128,109 $ 146,480
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 126,828 $ 145,015
General partners 1,281 1,465
TOTAL $ 128,109 $ 146,480
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 5.28 $ 6.04
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 24,000 24,000
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
June 30, June 30,
1997 1996
REVENUES:
Rental Income $ 839,078 $ 813,065
Interest 3,392 5,356
Total Revenues 842,470 818,421
EXPENSES:
Operating Expenses 533,500 493,689
General and Administrative 104,220 103,167
Total Expenses 637,720 596,856
INCOME BEFORE EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 204,750 221,565
EQUITY IN INCOME OF REAL
ESTATE FOINT VENTURE 41,810 42,961
NET INCOME $ 246,560 $ 264,526
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 244,094 $ 261,881
General partners 2,466 2,645
TOTAL $ 246,560 $ 264,526
NET INCOME PER LIMITED PARTNERSHIP UNIT $10.17 $10.91
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, 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 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
EQUITY AT DECEMBER 31, 1996 ($67,560) $4,089,606 $4,022,046
NET INCOME 2,466 244,094 246,560
DISTRIBUTIONS (5,454) (540,000) (545,454)
EQUITY AT JUNE 30, 1997 ($70,548) $3,793,700 $3,723,152
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 246,560 $ 264,526
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 20,886 19,589
Changes in assets and
liabilities:
Decrease in other assets 0 27,839
Increase(Decrease)in liabilities 6,094 (5,956)
Net cash provided by
operating activities 508,107 540,565
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment 0 (19,800)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (545,454) (545,454)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (37,347) (24,689)
CASH AND CASH EQUIVALENTS:
At beginning of period 389,413 445,657
At end of period $ 352,066 $420,968
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, 1997, and for
the periods ended June 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 June 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 ( 5,777,892)
Property - Net $ 3,621,746
</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 three months
ended June 30, 1997, and 1996 is as follows:
<TABLE>
1997 1996
<S> <C> <C>
Revenue $320,774 $315,861
Operating Expenses 181,407 172,659
Net Income $139,367 $143,202
</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> JUN-30-1997 DEC-31-1997
<CASH> 352066 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9399638 0
<DEPRECIATION> 5777892 0
<TOTAL-ASSETS> 4339252 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4339252 0
<SALES> 839078 0
<TOTAL-REVENUES> 842470 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 246560 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 246560 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 246560 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
