July 31, 2000
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, 2000. 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, 2000 and 1999, total revenues
increased 10.6% from $480,549 to $531,676 and total expenses increased 6.9%
from $326,419 to $349,035. Equity in income of the real estate joint venture
decreased 11.5% from $29,576 to $26,189. As a result, net income increased
13.7% from $183,706 to $208,830 for the three-month period ended June 30,
2000 as compared to the same period in 1999. Rental revenue increased as a
result of higher unit rental rates. Occupancy levels for the Partnership's
five mini-storage facilities averaged 87.3% for the three-month period ended
June 30, 2000 as compared to 82.7% for the same period in 1999. The Partner-
ship is continuing its marketing efforts to attract and keep new tenants in
its various mini-storage facilities. Operating expenses increased approxi-
mately $15,000 (5.3%) primarily as a result of higher repairs and mainten-
ance expense and property management fees, partially offset by a decrease
of salary and wages expense. General and administrative expenses increased
approximately $7,600 (16.6%) primarily as a result of higher legal and
professional expense. Equity in income from the real estate joint venture
decreased as a result of a decrease in rental revenue at that facility.
For the six month periods ended June 30, 2000, and 1999, total revenues
increased 7.8% from $969,240 to $1,045,057 and total expenses increased 2.8%
from $677,620 to $696,683. Equity in income of the real estate joint venture
increased 5.7% from $55,225 to $58,378. As a result, net income increased
17.3% from $346,845 to $406,752 for the six-month period ended June 30, 2000,
as compared to the same period in 1999. Rental revenue increased as a result
of higher occupancy and unit rental rates. Operating expenses increased
approximately $6,800 (1.2%) primarily as a result of increases in repairs
and maintenance, security and alarm service expenses and property management
fees, partially offset by a decrease in miscellaneous advertising costs.
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 $12,300 (10.9%) primarily as a result of
higher incentive management fees, legal and professional and equipment and
computer lease expenses. Equity in income from the real estate joint
venture increased as a result of lower operating expenses at that facility.
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
