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, 1999
/___/ 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, 1999 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, 1999.
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, 1999.
(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, 1999 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, 1999 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, 1999
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, 1999. 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, 1999 and 1998, total revenues
decreased 4.6% (see note below regarding gain on sale of land) from $503,890
to $480,549 and total expenses increased 4.4% from $312,578 to $326,419.
Equity in income of the real estate joint venture increased 9.4% from $27,035
to $29,576. As a result, net income decreased 15.7% from $218,347 to $183,706
for the three-month period ended June 30, 1999, as compared to the same period
in 1998. Rental revenue increased as a result of higher unit rental rates.
Occupancy levels for the Partnership's five mini-storage facilities averaged
82.7% for the three month period ended June 30, 1999 as compared to 84.4% for
the same period in 1998. The Partnership is continuing its marketing efforts
to attract and keep new tenants in its various mini-storage facilities.
Operating expenses increased approximately $16,400 (6.2%) primarily as a
result of higher yellow pages and miscellaneous advertising costs, repairs
and maintenance and security and alarm expenses, partially offset by lower
real estate tax expense. General and administrative expenses decreased
approximately $2,600 (5.4%) primarily as a result of lower legal and
professional expense. 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, 1999, and 1998, total revenues
increased 1.7% (see note below regarding gain on sale of land) from $953,035
to $969,240 and total expenses increased 6.3% from $637,194 to $677,620.
Equity in income of the real estate joint venture increased 6.6% from $51,824
to $55,225. As a result, net income decreased 5.7% from $367,665 to $346,845
for the six-month period ended June 30, 1999, as compared to the same period in
1999, as compared to the same period in 1998.. Rental revenue increased as a
result of higher unit rental rates. Operating expenses increased approximately
$46,200 (8.9%) primarily as a a result of increases in yellow pages and
miscellaneous advertising costs, repairs and maintenance, security and alarm
service expenses and 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 decreased approximately $5,800
(4.9%) primarily as a result of lower legal and professional expense. Equity
in income from the real estate joint venture increased as a result of higher
rental revenue, partially offset by an increase in maintenance and repair
expense.
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.
The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000. The Partnership has implemented
a Year 2000 program, which has three phases: (1) identification; (2)
remediation; and (3) testing and verification. The Partnership, as well as
the property management company and the Partnership's warehouse facilities
have completed those phases. Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expensed in the regular
course of business. The Partnership provides no assurance that third-party
suppliers and customers will be compliant. Nevertheless, the Partnership does
not believe that the Year 2000 issue will have a material adverse effect on
its financial condition or results of operations.
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, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 516,243 $ 458,025
PROPERTY, Net 2,694,656 2,914,449
INVESTMENT IN REAL ESTATE
JOINT VENTURE 255,115 262,590
OTHER ASSETS 33,513 33,442
TOTAL $3,499,527 $3,668,506
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 634,963 $ 605,333
PARTNERS' EQUITY (DEFICIT):
General Partners (79,136) (77,150)
Limited Partners 2,943,700 3,140,323
Total partners' equity 2,864,564 3,063,173
TOTAL $3,499,527 $3,668,506
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
June 30, June 30,
1999 1998
REVENUES:
<S> <C> <C>
Rental income $ 479,153 $ 454,693
Gain on sale of land 0 46,974
Interest 1,396 2,333
Total revenues 480,549 503,890
EXPENSES:
Operating 280,457 264,009
General and administrative 45,962 48,569
Total expenses 326,419 312,578
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 154,130 191,312
EQUITY IN INCOME OF REAL ESTATE
JOINT VENTURE 29,576 27,035
NET INCOME $ 183,706 $ 218,347
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 181,869 $ 216,164
General Partners 1,837 2,183
TOTAL $ 183,706 $ 218,347
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.58 $ 9.01
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, 1999 AND 1998
June 30, June 30,
1999 1998
REVENUES:
Rental Income $ 966,288 $ 902,002
Gain on sale of land 0 46,974
Interest 2,952 4,059
Total Revenues 969,240 953,035
EXPENSES:
Operating Expenses 564,702 518,463
General and Administrative 112,918 118,731
Total Expenses 677,620 637,194
INCOME BEFORE EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 291,620 315,841
EQUITY IN INCOME OF REAL
ESTATE FOINT VENTURE 55,225 51,824
NET INCOME $ 346,845 $ 367,665
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 343,377 $ 363,988
General Partners 3,468 3,677
TOTAL $ 346,845 $ 367,665
NET INCOME PER LIMITED PARTNERSHIP UNIT $14.31 $15.17
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 1998 ($72,584) $3,592,270 $3,519,686
NET INCOME 3,677 363,988 367,665
DISTRIBUTIONS (5,454) (540,000) (545,454)
BALANCE AT JUNE 30, 1998 ($74,361) $3,416,258 $3,341,897
BALANCE AT JANUARY 1, 1999 ($77,150) $3,140,323 $3,063,173
NET INCOME 3,468 343,377 346,845
DISTRIBUTIONS (5,454) (540,000) (545,454)
BALANCE AT JUNE 30, 1999 ($79,136) $2,943,700 $2,864,564
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 346,845 $ 367,665
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 234,567 234,566
Gain on sale of land (46,974)
Equity in earnings of
real estate joint venture (55,225) (51,824)
Distributions from real
estate joint venture 62,700 73,800
Changes in assets and
liabilities:
Increase in other assets (71) 0
Increase in liabilities 29,630 101
Net cash provided by
operating activities 618,446 577,334
CASH FLOWS FROM INVESTING ACTIVITIES -
Proceeds from Sale of land 65,000
Additions to property (14,774)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (545,454) (545,454)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 58,218 96,880
CASH AND CASH EQUIVALENTS:
At beginning of period 458,025 399,704
At end of period $ 516,243 $496,584
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, 1999, and for
the periods ended June 30, 1999, and 1998 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, 1999,
is as follows:
<TABLE>
<S> <C>
Land $ 2,287,427
Buildings and improvements 7,100,557
Equipment 22,831
Total 9,410,815
Less: Accumulated Depreciation ( 6,716,159)
Property - Net $ 2,694,656
</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 six months
ended June 30, 1999, and 1998 is as follows:
<TABLE>
1999 1998
<S> <C> <C>
Revenue $381,321 $345,427
Operating Expenses 197,236 172,681
Net Income $184,085 $172,746
</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-31-1999 DEC-31-1999
<PERIOD-END> JUN-30-1999 DEC-31-1999
<CASH> 516243 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9410815 0
<DEPRECIATION> 6716159 0
<TOTAL-ASSETS> 3499527 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 3499527 0
<SALES> 966288 0
<TOTAL-REVENUES> 969240 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 346845 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 346845 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 346845 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
