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 March 31, 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 March 31, 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 March 31, 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 March 31, 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: April 30, 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: April 30, 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
April 30, 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 March 31, 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 March 31, 1998 and 1997, total
revenues increased 7.0% from $419,638 to $449,145 and total expenses increased
1.1% from $321,233 to $324,616. Equity in income of the real estate joint
venture increased 23.7% from $20,046 to $24,789. As a result, net income
increased from $118,451 to $149,317 for the three month period ended March 31,
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 82.8% for the three month period ended
March 31, 1998, and 83.7% 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 $2,600
(1.0%) primarily as a result of lower yellow pages advertising costs, legal and
professional and real estate tax expenses, partially offset by higher salaries
and wage expenses. General and administrative expenses increased approximately
$6,000.00 (9.4%) primarily as a result of higher incentive management fees.
Such fees, which are based on cash available for distribution, increased as a
result of the increase in net income. Net income from the real estate joint
venture increased primarily as a result of higher rental revenue and lower
salaries and wage expense.
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 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)
MARCH 31, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 396,696 $ 399,704
PROPERTY 3,269,896 3,387,178
INVESTMENT IN REAL ESTATE
JOINT VENTURE 305,738 313,650
OTHER ASSETS 31,629 31,604
TOTAL $4,003,959 $4,132,136
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 607,683 $ 612,450
PARTNERS' EQUITY:
General Partners (73,818) (72,584)
Limited Partners 3,470,094 3,592,270
Total partners' equity 3,396,276 3,519,686
TOTAL $4,003,959 $4,132,136
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
<TABLE>
March 31, March 31,
1998 1997
REVENUES:
<S> <C> <C>
Rental Income $ 447,309 $ 417,855
Interest 1,836 1,783
Total revenues 449,145 419,638
EXPENSES:
Operating Expenses 254,454 257,103
General and administrative 70,162 64,130
Total expenses 324,616 321,233
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 124,528 98,405
EQUITY IN INCOME OF REAL ESTATE 24,789 20,046
NET INCOME $ 149,317 $ 118,451
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 147,824 $ 117,266
General partners 1,493 1,185
TOTAL $ 149,317 $ 118,451
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.16 $ 4.89
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 MARCH 31, 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 1,185 117,266 118,451
DISTRIBUTIONS (2,727) (270,000) (272,727)
EQUITY AT MARCH 31, 1997 ($69,102) $3,936,872 $3,867,770
EQUITY AT DECEMBER 31, 1997 ($72,584) $3,592,270 $3,519,686
NET INCOME 1,493 147,824 149,317
DISTRIBUTIONS (2,727) (270,000) (272,727)
EQUITY AT MARCH 31, 1998 ($73,818) $3,470,094 $3,396,276
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
<TABLE>
<CAPTION>
March 31, March 31,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 149,317 $118,451
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 117,283 117,283
Distributions in excess
of earnings in
real estate joint venture 7,911 10,852
Changes in assets and
liabilities:
Increase in other assets (25) (27,240)
(Decrease)Increase in liabilities (4,767) 34,267
Net cash provided by
operating activities 269,719 253,613
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (272,727) (272,727)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (3,008) (19,114)
CASH AND CASH EQUIVALENTS:
At beginning of period 399,704 389,413
At end of period $ 396,696 $370,299
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 March 31, 1998, and for
the periods ended March 31, 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 March 31, 1998,
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 ( 6,129,742)
Property - Net $ 3,269,896
</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 March 31, 1998, and 1997 is as follows:
<TABLE>
1998 1997
<S> <C> <C>
Revenue $166,906 $156,705
Operating Expenses 84,280 89,885
Net Income $ 82,626 $ 66,820
</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> MAR-31-1998 DEC-31-1998
<CASH> 396696 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9399638 0
<DEPRECIATION> 6129742 0
<TOTAL-ASSETS> 4003959 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 4003959 0
<SALES> 447309 0
<TOTAL-REVENUES> 449145 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 149317 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 149317 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 149317 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
