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, 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_______________________________________33-0050204
(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 September 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 September 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 September 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: October 29, 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: October 29, 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
October 29, 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 September 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 September 30, 1999 and 1998, total
revenues increased 5.0% (see note below regarding gain on sale of land) from
$480,504 to $504,635 and total expenses increased 4.7% from $307,377 to
$321,936. Equity in income of the real estate joint venture increased 2.2%
from $31,688 to $32,377. As a result, net income increased 5.0% from $204,815
to $215,076 for the three-month period ended September 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 84.7% for the three month period ended September 30, 1999
as compared to 85.3% 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 $11,100
(4.2%) primarily as a result of higher salary and wages expense. General and
administrative expenses increased approximately $3,400 (8.3%) primarily as a
result of higher equipment and computer lease expense. Equity in income from
real estate joint venture remained relatively constant.
For the nine-month periods ended September 30, 1999, and 1998, total revenues
increased 2.8% (see note below regarding gain on sale of land) from $1,433,539
to $1,473,875 and total expenses increased 5.8% from $944,571 to $999,556.
Equity in income of the real estate joint venture increased 4.9% from $83,512
to $87,602. As a result, net income decreased 1.8% from $572,480 to $561,921
for the nine-month period ended September 30, 1999, as compared to the same
in 1998. Rental revenue increased as a result of higher unit rental rates.
Operating expenses increased approximately $57,400 (7.3%) primarily as a result
of increases in yellow pages and miscellaneous advertising costs, repairs and
maintenance, salary and wages, 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 admini-
strative expenses decreased approximately $2,400 (1.5%) primarily as a result
of lower legal and professional expense, partially offset by an increase in
equipment and computer lease 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 disposition, neither cash flow from nor the value
of the remaining 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 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 beiieve 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)
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 624,655 $ 458,025
PROPERTY, Net 2,577,372 2,914,449
INVESTMENT IN REAL ESTATE
JOINT VENTURE 239,493 262,590
OTHER ASSETS 35,101 33,442
TOTAL $3,476,621 $3,668,506
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 669,708 $ 605,333
PARTNERS' EQUITY (DEFICIT):
General Partners (79,712) (77,150)
Limited Partners 2,886,625 3,140,323
Total partners' equity 2,806,913 3,063,173
TOTAL $3,476,621 $3,668,506
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
REVENUES:
<S> <C> <C>
Rental income $ 503,289 $ 477,908
Interest 1,346 2,596
Total revenues 504,635 480,504
EXPENSES:
Operating 276,936 265,825
General and administrative 45,000 41,552
Total expenses 321,936 307,377
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 182,699 173,127
EQUITY IN INCOME OF
REAL ESTATE JOINT VENTURE 32,377 31,688
NET INCOME $ 215,076 $ 204,815
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 212,925 $ 202,767
General partners 2,151 2,048
TOTAL $ 215,076 $ 204,815
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 8.87 $ 8.45
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, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental income $1,469,577 $1,379,910
Gain on sale of land 0 46,974
Interest 4,298 6,655
Total revenues 1,473,875 1,433,539
EXPENSES:
Operating 841,638 784,288
General and administrative 157,918 160,283
Total expenses 999,556 944,571
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 474,319 488,968
EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE 87,602 83,512
NET INCOME $561,921 $572,480
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 556,302 566,755
General Partners 5,619 5,725
TOTAL 561,921 572,480
NET INCOME PER LIMITED
PARTNERSHIP UNIT $23.18 $23.61
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT JANUARY 1, 1998 ($72,584) $3,592,270 $3,519,686
NET INCOME 5,725 566,755 572,480
DISTRIBUTIONS (8,181) (810,000) (818,181)
EQUITY AT SEPTEMBER 30, 1998 ($75,040) $3,349,025 $3,273,985
BALANCE AT JANUARY 1, 1999 ($77,150) $3,140,323 $3,063,173
NET INCOME 5,619 556,302 561,921
DISTRIBUTIONS (8,181) (810,000) (818,181)
BALANCE AT SEPTEMBER 30, 1999 ($79,712) $2,886,625 $2,806,913
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 561,921 $572,480
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 351,850 351,850
Gain on sale of land (46,974)
Equity in earnings of
real estate joint venture (87,602) (83,512)
Distributions from
real estate joint venture 110,700 120,900
Changes in assets and
liabilities:
Increase in other assets (1,659) 0
Increase in liabilities 64,375 41,280
Net cash provided by
operating activities 999,585 956,024
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 (818,181) (818,181)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 166,630 202,843
CASH AND CASH EQUIVALENTS:
At beginning of period 458,025 399,704
At end of period $ 624,655 $ 602,547
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, 1999, and for
the periods ended September 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 September 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 ( 6,833,443)
Property - Net $ 2,577,372
</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 nine months
ended September 30, 1999, and 1998 is as follows:
<TABLE>
1999 1998
<S> <C> <C>
Revenue $575,192 $536,966
Operating Expenses 283,186 258,593
Net Income $292,006 $278,373
</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> SEP-30-1999 DEC-31-1999
<CASH> 624655 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 9410815 0
<DEPRECIATION> 6833443 0
<TOTAL-ASSETS> 3476621 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 3476621 0
<SALES> 1469577 0
<TOTAL-REVENUES> 1473875 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 561921 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 561921 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 561921 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
