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, 1998
/___/ 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.)
6700 E. Pacific Coast Hwy., Long Beach, California 90803
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code-(562)493-8881
_________________________________________________________________
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, 1998 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, 1998.
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, 1998.
(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, 1998 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, 1998 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, 1998
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, 1998. 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, 1998 and 1997, total revenues
increase 19.2% from $422,832 to $503,890 and total expenses decreased 1.2%
from $316,487 to $312,578. Equity in income of the real estate joint venture
increased 24.2% from $21,764 to $27,035. As a result, net income increased
70.4% from $128,109 to $218,347 for the three month period ended June 30, 1998,
as compared to the same period in 1997. Rental revenue increased as a result
of higher unit rental rates. Occupancy levels for the Partnership's five
mini-storage facilities averaged 84.4% for the three month period ended
June 30, 1998 as compared to 85.5% for the same period in 1997. The Partnership
is continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities. Operating expenses decreased approximately
$12,400 (4.5%) primarily as a result of lower yellow pages advertising costs,
repairs and maintenance and salaries and wage expenses partially offset by
higher real estate tax expenses. General and administrative expenses increased
approximately $8,500 (21.2%) 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 increased primarily as a result
of higher rental revenue.
For the six month periods ended June 30, 1998, and 1997, total revenues
increased 13.2% from $842,470 to $953,035 and total expenses decreased slightly
from $637,720 to $637,194. Equity in income of the real estate joint venture
increased 24.0% from $41,810 to $51,824. As a result, net income increased
49.1% from $246,560 to $367,665 for the six month period ended June 30, 1998,
as compared to the same period in 1997. Rental revenue increased as a result
of higher unit rental rates. Operating expenses decreased approximately $15,000
(2.8%) primarily as a result of decreases in yellow pages advertising costs,
legal and repairs and maintenance expenses partially offset by an increase in
property management fees. Property management fees, which are based on rental
income, increased as a result of the increase in rental revenue. General and
administrative expenses increased approximately $14,500 (13.9%) primarily as
a result of higher incentive management fees, which was discussed above. Equity
in income from the real estate joint venture increased as a result of higher
rental revenue and lower salaries and wage expenses.
The City of Stockton acquired 6,089 square feet or 5.4% of the Stockton
property in 1997. In April 1998 the Partnership received $65,000 as
compensation for the acquisition. A gain on sale of land was recorded in the
amount of $46,974, and the cost of land was reduced by $18,026. Based on
operations since the acquisition, neither cash flow from nor the value of
the property appears materially impaired.
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 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, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
June 30, December 31,
1998 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 496,584 $ 399,704
PROPERTY 3,134,586 3,387,178
INVESTMENT IN REAL ESTATE
JOINT VENTURE 291,674 313,650
OTHER ASSETS 31,604 31,604
TOTAL $3,954,448 $4,132,136
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 612,551 $ 612,450
PARTNERS' EQUITY:
General Partners (74,361) (72,584)
Limited Partners 3,416,258 3,592,270
Total partners' equity 3,341,897 3,519,686
TOTAL $3,954,448 $4,132,136
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
June 30, June 30,
1998 1997
REVENUES:
<S> <C> <C>
Rental Income $ 454,693 $ 421,223
Gain on sale of land 46,974 0
Interest 2,223 1,609
Total revenues 503,890 422,832
EXPENSES:
Operating Expenses 264,009 276,397
General and administrative 48,569 40,090
Total expenses 312,578 316,487
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 191,312 106,345
EQUITY IN INCOME OF REAL ESTATE
JOINT VENTURE 27,035 21,764
NET INCOME $ 218,347 $ 128,109
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 216,164 $ 126,828
General partners 2,183 1,281
TOTAL $ 218,347 $ 128,109
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 9.01 $ 5.28
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, 1998 AND 1997
June 30, June 30,
1998 1997
REVENUES:
Rental Income $ 902,002 $ 839,078
Gain on sale of land 46,974 0
Interest 4,059 3,392
Total Revenues 953,035 842,470
EXPENSES:
Operating Expenses 518,463 533,500
General and Administrative 118,731 104,220
Total Expenses 637,194 637,720
INCOME BEFORE EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 315,841 204,750
EQUITY IN INCOME OF REAL
ESTATE FOINT VENTURE 51,824 41,810
NET INCOME $ 367,665 $ 246,560
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 363,988 $ 244,094
General partners 3,677 2,466
TOTAL $ 367,665 $ 246,560
NET INCOME PER LIMITED PARTNERSHIP UNIT $15.17 $10.17
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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
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
EQUITY AT DECEMBER 31, 1997 ($72,584) $3,592,270 $3,519,686
NET INCOME 3,677 363,988 367,665
DISTRIBUTIONS (5,454) (540,000) (545,454)
EQUITY AT JUNE 30, 1998 ($74,361) $3,416,258 $3,341,897
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 367,665 $ 264,560
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 234,566 234,567
Gain on sale of land (46,974) 0
Distributions in excess
of earnings in
real estate joint venture 21,976 20,886
Changes in assets and
liabilities:
Increase in liabilities 101 6,094
Net cash provided by
operating activities 577,334 508,107
CASH FLOWS FROM INVESTING ACTIVITIES -
Proceeds from Sale of land 18,026 0
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (545,454) (545,454)
NET INCREASE(DECREASE) IN CASH AND
CASH EQUIVALENTS 96,880 (37,347)
CASH AND CASH EQUIVALENTS:
At beginning of period 399,704 389,413
At end of period $ 496,584 $352,066
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, 1998, and for
the periods ended June 30, 1998, and 1997 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, 1998,
is as follows:
<TABLE>
<S> <C>
Land $ 2,287,284
Buildings and improvements 7,071,497
Equipment 22,831
Total 9,381,612
Less: Accumulated Depreciation ( 6,247,026)
Property - Net $ 3,134,586
</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
the 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, 1998, and 1997 is as follows:
<TABLE>
1998 1997
<S> <C> <C>
Revenue $345,427 $320,774
Operating Expenses 172,681 181,407
Net Income $172,746 $139,367
</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-31-1998 DEC-31-1998
<PERIOD-END> JUN-30-1998 DEC-31-1998
<CASH> 496584 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9381612 0
<DEPRECIATION> 6247026 0
<TOTAL-ASSETS> 3954448 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 3954448 0
<SALES> 902002 0
<TOTAL-REVENUES> 953035 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 367665 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 367665 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 367655 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
