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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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(Mark One)



|x |  | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- |  | ---------------------------------------------------------------------------------------



For the quarterly period ended June 30, 2003



OR



| ̈ |  | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- |  | ----------------------------------------------------------------------------------------



For the transition period
from to



Commission file number 0-27888



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WELLS REAL ESTATE FUND VIII, L.P.

(Exact name of registrant as specified in
its charter)



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|Georgia                                                        |  | 58-2126618                             
|-------------------------------------------------------------- |  | ---------------------------------------
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)
|                                                               | 
|6200 The Corners Pkwy.,Norcross, Georgia                       |  | 30092                                  
|(Address of principal executive offices)                       |  | (Zip Code)                             
|                                                               | 
|Registrants telephone number, including area code             |  | (770) 449-7800                         



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(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 ̈



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FORM 10-Q



WELLS REAL ESTATE FUND VIII,
L.P.

(A Georgia Public Limited Partnership)



TABLE OF CONTENTS



|         |  |                       |  |                                                                                                                         |  | Page No.
|-------- |  | --------------------- |  | ----------------------------------------------------------------------------------------------------------------------- |  | --------
|         |  |                      
|PART I.  |  | FINANCIAL INFORMATION |  |                                                                                                                        
|         |  |                       | 
|         |  | Item 1.               |  | Financial Statements                                                                                                    |  |         
|         |  |                       | 
|         |  |                       |  | Balance SheetsJune 30, 2003 (unaudited) and December 31, 2002                                                          |  | 3       
|         |  |                       | 
|         |  |                       |  | Statements of Income for the Three Months and Six Months Ended June 30, 2003 (unaudited) and 2002 (unaudited)           |  | 4       
|         |  |                       | 
|         |  |                       |  | Statements of Partners Capital for the Six Months Ended June 30, 2003 (unaudited) and the Year Ended December 31, 2002 |  | 5       
|         |  |                       | 
|         |  |                       |  | Statements of Cash Flows for the Six Months Ended June 30, 2003 (unaudited) and 2002 (unaudited)                        |  | 6       
|         |  |                       | 
|         |  |                       |  | Condensed Notes to Financial Statements (unaudited)                                                                     |  | 7       
|         |  |                       | 
|         |  | Item 2.               |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                   |  | 12      
|         |  |                       | 
|         |  | Item 3.               |  | Quantitative and Qualitative Disclosures about Market Risks                                                             |  | 16      
|         |  |                       | 
|         |  | Item 4.               |  | Controls and Procedures                                                                                                 |  | 16      
|         |  |                      
|PART II. |  | OTHER INFORMATION     |  | 17                                                                                                                     







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WELLS REAL ESTATE FUND VIII, L.P.

(A Georgia Public Limited Partnership)



BALANCE SHEETS



|                                                                                                    |  | (unaudited)   |            |                  
|--------------------------------------------------------------------------------------------------- |  | ------------- | ---------- | -----------------
|                                                                                                    |  | June 30, 2003 |            | December 31, 2002
|ASSETS:                                                                                             |  |               |            |                  
|Investments in Joint Ventures                                                                       |  | $             | 19,605,085 |                  
|Due from Joint Ventures                                                                             |  |               | 770,068    |                  
|Cash and cash equivalents                                                                           |  |               | 222,585    |                  
|                                                                                                    |  |               |            |                  
|Total assets                                                                                        |  | $             | 20,597,738 |                  
|                                                                                                    |  |               |            |                  
|LIABILITIES AND PARTNERS CAPITAL:                                                                  |  |               |            |                  
|Liabilities:                                                                                        |  |               |            |                  
|Partnership distributions payable                                                                   |  | $             | 682,317    |                  
|Accounts payable                                                                                    |  |               | 10,439     |                  
|                                                                                                    |  |               |            |                  
|Total liabilities                                                                                   |  |               | 692,756    |                  
|                                                                                                    |  |               |            |                  
|Partners capital:                                                                                  |  |               |            |                  
|Limited partners:                                                                                   |  |               |            |                  
|Class A2,872,915 units and 2,862,365 units as of June 30, 2003 and December 31, 2002, respectively |  |               | 19,904,982 |                  
|Class B330,354 units and 340,904 units as of June 30, 2003 and December 31, 2002, respectively     |  |               | 0          |                  
|                                                                                                    |  |               |            |                  
|Total partners capital                                                                             |  |               | 19,904,982 |                  
|                                                                                                    |  |               |            |                  
|Total liabilities and partners capital                                                             |  | $             | 20,597,738 |                  
|                                                                                                    |  |               |            |                  



See accompanying notes





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WELLS REAL ESTATE FUND VIII, L.P.

(A Georgia Public Limited Partnership)



STATEMENTS OF INCOME



|                                                             |  | (unaudited) Three Months Ended |           | (unaudited) Six Months Ended
|------------------------------------------------------------ |  | ------------------------------ | --------- | ----------------------------
|                                                             |  | June 30, 2003                  |           | June 30, 2002               
|REVENUES:                                                    |  |                                |           |                             
|Equity earnings of Joint Ventures                            |  | $                              | 387,278   |                             
|Other income                                                 |  |                                | 425       |                             
|                                                             |  |                                |           |                             
|                                                             |  |                                | 387,703   |                             
|                                                             |  |                                |           |                             
|EXPENSES:                                                    |  |                                |           |                             
|Legal and accounting                                         |  |                                | 4,636     |                             
|Partnership administration                                   |  |                                | 24,878    |                             
|Other general and administrative                             |  |                                | 4,883     |                             
|                                                             |  |                                |           |                             
|                                                             |  |                                | 34,397    |                             
|                                                             |  |                                |           |                             
|NET INCOME                                                   |  | $                              | 353,306   |                             
|                                                             |  |                                |           |                             
|NET INCOME ALLOCATED TO CLASS A LIMITED PARTNERS             |  | $                              | 353,306   |                             
|                                                             |  |                                |           |                             
|NET LOSS ALLOCATED TO CLASS B LIMITED PARTNERS               |  | $                              | 0         |                             
|                                                             |  |                                |           |                             
|NET INCOME PER WEIGHTED AVERAGE CLASS A LIMITED PARTNER UNIT |  | $                              | 0.12      |                             
|                                                             |  |                                |           |                             
|NET LOSS PER WEIGHTED AVERAGE CLASS B LIMITED PARTNER UNIT   |  | $                              | 0.00      |                             
|                                                             |  |                                |           |                             
|CASH DISTRIBUTION PER CLASS A LIMITED PARTNER UNIT           |  | $                              | 0.24      |                             
|                                                             |  |                                |           |                             
|WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING:          |  |                                |           |                             
|CLASS A                                                      |  |                                | 2,872,915 |                             
|                                                             |  |                                |           |                             
|CLASS B                                                      |  |                                | 330,354   |                             
|                                                             |  |                                |           |                             



See accompanying notes





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WELLS REAL ESTATE FUND VIII, L.P.

(A Georgia Public Limited Partnership)



STATEMENTS OF PARTNERS CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2002

AND THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)



|                                   |  | Limited Partners |  | Total Partners Capital |           
|---------------------------------- |  | ---------------- |  | ----------------------- | ----------
|                                   |  | Class A          |  |                         | Class B   
|                                   |  | Units            |  | Amounts                 |           
|BALANCE, December 31, 2001         |  | 2,806,519        |  | $                       | 22,003,302
|Net income                         |  | 0                |  |                         | 1,265,197 
|Partnership distributions          |  | 0                |  |                         | (2,692,632
|Class B conversion elections       |  | 55,846           |  |                         | 0         
|                                   |  |                  |  |                         |           
|BALANCE, December 31, 2002         |  | 2,862,365        |  |                         | 20,575,867
|Net income                         |  | 0                |  |                         | 692,560   
|Partnership distributions          |  | 0                |  |                         | (1,363,445
|Class B conversion elections       |  | 10,550           |  |                         | 0         
|                                   |  |                  |  |                         |           
|BALANCE, June 30, 2003 (unaudited) |  | 2,872,915        |  | $                       | 19,904,982
|                                   |  |                  |  |                         |           



See accompanying notes





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WELLS REAL ESTATE FUND VIII, L.P.

(A Georgia Public Limited Partnership)



STATEMENTS OF CASH FLOWS



|                                                                              |  | (unaudited)      |           
|----------------------------------------------------------------------------- |  | ---------------- | ----------
|                                                                              |  | Six Months Ended |           
|                                                                              |  | June 30, 2003    |           
|CASH FLOWS FROM OPERATING ACTIVITIES:                                         |  |                  |           
|Net income                                                                    |  | $                | 692,560   
|Adjustments to reconcile net income to net cash used in operating activities: |  |                  |           
|Equity in income of Joint Ventures                                            |  |                  | (750,540  
|Change in assets and liabilities:                                             |  |                  |           
|Accounts payable                                                              |  |                  | (4,296    
|                                                                              |  |                  |           
|Net cash used in operating activities                                         |  |                  | (62,276   
|                                                                              |  |                  |           
|CASH FLOWS FROM INVESTING ACTIVITIES:                                         |  |                  |           
|Distributions received from Joint Ventures                                    |  |                  | 1,591,907 
|                                                                              |  |                  |           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                         |  |                  |           
|Distributions to partners from accumulated earnings                           |  |                  | (1,360,940
|                                                                              |  |                  |           
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                     |  |                  | 168,691   
|                                                                              |  |                 
|CASH AND CASH EQUIVALENTS, beginning of period                                |  |                  | 53,894    
|                                                                              |  |                  |           
|CASH AND CASH EQUIVALENTS, end of period                                      |  | $                | 222,585   
|                                                                              |  |                  |           
|SUPPLEMENTAL DISCLOSURES OF NONCASH ACTIVITIES:                               |  |                  |           
|Due from Joint Ventures                                                       |  | $                | 770,068   
|                                                                              |  |                  |           
|Partnership distributions payable                                             |  | $                | 682,317   
|                                                                              |  |                  |           



See accompanying notes





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WELLS REAL ESTATE FUND VIII, L.P.

(A Georgia Public Limited Partnership)



CONDENSED NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2003 (UNAUDITED)



|1. |  | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|-- |  | ------------------------------------------





(a) Organization and Business





Wells Real Estate Fund VIII, L.P. (the Partnership) is a public limited partnership organized on August 15, 1994 under the laws of the state of Georgia. The general partners are Leo F. Wells, III and Wells Partners L.P.
(Wells Partners), a Georgia nonpublic limited partnership (the General Partners). Upon subscription, limited partners elect to have their units treated as either Class A units or Class B units. Limited partners have the right
to change their prior elections to have some or all of their units treated as Class A units or Class B units one time during each quarterly accounting period. Limited partners may vote to, among other things, (a) amend the partnership agreement,
subject to certain limitations, (b) change the business purpose or investment objectives of the Partnership, and (c) remove a general partner. A majority vote on any of the above-described matters will bind the Partnership without the concurrence of
the General Partners. Each limited partnership unit has equal voting rights, regardless of class.





On January 6, 1995, the Partnership commenced a public offering of up to $35,000,000 of Class A or Class B limited
partnership units pursuant to a Registration Statement filed on Form S-11 under the Securities Act of 1933. The Partnership commenced active operations on February 24, 1995 upon receiving and accepting subscriptions for 125,000 units. The
Partnership terminated this offering on January 4, 1996 upon receiving gross proceeds of $32,042,689, representing subscriptions for approximately 2,613,534 Class A units and 590,735 Class B units held by 1,939 and 302 limited partners,
respectively. In March 1997, the Partnership repurchased 1,000 limited partners units.



The Partnership owns interests in all of its real estate assets through joint ventures with other Wells Real Estate Funds. As of June 30, 2003, the Partnership owned interests in the following eight properties through
the affiliated joint ventures (the Joint Ventures) listed below:



|Joint Venture                                                              |  | Joint Venture Partners                                                                                      |  | Properties                                                                                                                                                 
|-------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                          
|Fund VI, Fund VII and Fund VIII Associates (Fund VI-VII-VIII Associates) |  |   Wells Real Estate Fund VI, L.P.   Wells Real Estate Fund VII, L.P.   Wells Real Estate Fund VIII, L.P. |  | 1. BellSouth Building A four-story office building located in Jacksonville, Florida  2. Tanglewood Commons A retail center in Clemmons, North Carolina     
|                                                                          
|Fund VII and Fund VIII Associates (Fund VII-Fund VIII Associates)        |  |   Wells Real Estate Fund VII, L.P.   Wells Real Estate Fund VIII, L.P.                                    |  | 3. Hannover Center A retail center located in Stockbridge, Georgia  4. CH2M Hill at Gainesville Property An office building located in Gainesville, Florida
|                                                                          



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|Joint Venture                                                     |  | Joint Venture Partners                                                     |  | Properties                                                                                                                                                                                                                                                       
|----------------------------------------------------------------- |  | -------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                 
|Fund VIII and Fund IX Associates (Fund VIII-Fund IX Associates) |  |   Wells Real Estate Fund VIII, L.P.   Wells Real Estate Fund IX, L.P.    |  | 5. US Cellular Building A four-story office building located in Madison, Wisconsin  6.
AT&T-TX Building A one-story office building located in Boulder County, Colorado  7. Cirrus Logic Building A two-story office building located in Boulder County, Colorado
|                                                                 
|Fund VIII-IX-REIT Joint Venture (Fund VIII-IX-REIT Associates)  |  |   Fund VIII and Fund IX Associates.   Wells Operating Partnership, L.P.* |  | 8. Quest Building A two-story office building located in Orange County, California**                                                                                                                                                                             
|                                                                 

|* |  | Wells Operating Partnership, L.P. is a Delaware limited partnership with Wells Real Estate Investment Trust, Inc. (Wells REIT) serving as its General Partner; Wells
REIT is a Maryland corporation that qualifies as a real estate investment trust.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|** |  | The Quest Building was owned by Fund VIII-Fund IX Associates through June 30, 2000 and transferred to Fund VIII-IX-REIT Associates on July 1, 2001.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------



Each of the aforementioned properties was acquired on an all cash basis.
For further information regarding the foregoing joint ventures and properties, refer to the report filed for the Partnership on Form 10-K for the year ended December 31, 2002.



On October 7, 2002, Fund VI-VII-VIII Associates sold an outparcel of land at Tanglewood Commons to Truliant Federal Credit
Union, an unrelated third party, for a gross sales price of $558,570. As a result of this sale, Fund VI-VII-VIII Associates recognized a gain of approximately $18,000, of which approximately $6,000 was allocated to the Partnership.



(b) Basis of Presentation



The financial statements of the Partnership have been prepared in accordance
with the rules and regulations of the Securities and Exchange Commission, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and in accordance with such rules and regulations, do not include all of the information and
footnotes required by accounting principles generally accepted in the Unitd States (GAAP) for complete financial statements. The quarterly statements included herein have not been examined by independent auditors. However, in the opinion
of the General Partners, the statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary to fairly present the results for these periods. Results for interim periods are not
necessarily indicative of full year results. For further information, refer to the financial statements and footnotes included in the Partnerships Form 10-K for the year ended December 31, 2002.



(c) Allocations of Net Income, Net Loss, and Gain on Sale



For the purposes of determining allocations per the partnership
agreement, net income is defined as net income recognized by the Partnership, excluding deductions for depreciation and amortization. Net income, as





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defined, of the Partnership will be allocated each year in the same proportions that net cash from operations is distributed to the limited partners holding
Class A units and the General Partners. To the extent the Partnerships net income in any year exceeds net cash from operations, it will be allocated 99% to the limited partners and 1% to the General Partners.



Net loss, depreciation, and amortization deductions for each fiscal year will
be allocated as follows: (a) 99% to the limited partners holding Class B units and 1% to the General Partners until their capital accounts are reduced to zero, (b) then to any partner having a positive balance in his/her capital account in an amount
not to exceed such positive balance, and (c) thereafter to the General Partners.



Gain on the sale or exchange of the Partnerships properties will be allocated generally in the same manner that the net proceeds from such sale are distributed to partners after the following allocations are
made, if applicable: (a) allocations made pursuant to the qualified income offset provisions of the partnership agreement, (b) allocations to partners having negative capital accounts until all negative capital accounts have been restored to zero,
and (c) allocations to limited partners holding Class B units in amounts equal to the deductions for depreciation and amortization previously allocated to them with respect to the specific partnership property sold, but not in excess of the amount
of gain on sale recognized by the Partnership with respect to the sale of such property.



(d) Distributions of Net Cash From Operations



Cash available for distribution, as defined by the partnership agreement, is distributed to the limited partners quarterly. In accordance with the partnership agreement, such distributions are paid first to limited
partners holding Class A units until they have received a 10% per annum return on their net Capital Contributions, as defined. Then, such distributions are paid to the General Partners until they have received 10% of the total amount distributed to
date. Any remaining cash available for distribution is split between the limited partners holding Class A units and the General Partners on a basis of 90% and 10%, respectively. No cash distributions will be made to the limited partners holding
Class B units.



(e) Distribution of Sales Proceeds



Upon sales of properties, the net sales proceeds are
distributed in the following order:



| |  |  | To limited partners holding units, which at any time have been treated as Class B units, until they receive an amount necessary to equal the net cash available for distribution
received by the limited partners holding Class A units
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners on a per unit basis until each limited partner has received 100% of his/her net Capital Contributions, as defined
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners on a per unit basis until they receive a cumulative 10% per annum return on their net Capital Contributions, as defined
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners on a per unit basis until they receive an amount equal to their preferential limited partners return (defined as the sum of a 10% per annum cumulative return on
net Capital Contributions for all periods during which the units were treated as Class A units and a 15% per annum cumulative return on net Capital Contributions for all periods during which the units were treated as Class B units)
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To the General Partners until they have received 100% of their Capital Contributions; in the event that limited partners have received aggregate cash distributions from the
Partnership over the life of their investment in excess of a return of their net Capital Contributions plus their preferential limited partner return, then the General Partners shall receive an additional sum equal to 25% of such excess
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Thereafter, 80% to the limited partners on a per unit basis and 20% to the General Partners
| | - |  | -------------------------------------------------------------------------------------------





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|2. |  | INVESTMENT IN JOINT VENTURES
|-- |  | ----------------------------



(a) Basis of Presentation



The Partnership owned interests in eight properties as of June 30, 2003 through its ownership in the Joint Ventures. The Partnership does not have control
over the operations of these joint ventures; however, it does exercise significant influence. Accordingly, the Partnerships investments in the Joint Ventures are recorded using the equity method of accounting, whereby original investments are
recorded at cost and subsequently adjusted for contributions, distributions, and net income (loss) attributable to the Partnership. For further information on investments in joint ventures, see the report filed for the Partnership on Form 10-K for
the year ended December 31, 2002.



(b) Summary of Operations



The following information summarizes the operations of
the Joint Ventures for the three months and six months ended June 30, 2003 and 2002, respectively:



|                              |  | Total Revenues     |           |   | Net Income         |   | Partnerships Share of Net Income
|----------------------------- |  | ------------------ | --------- | - | ------------------ | - | ---------------------------------
|                              |  | Three Months Ended |           |   | Three Months Ended |   | Three Months Ended               
|                              |  | June 30, 2003      |           |   | June 30, 2002      |   |                                  
|Fund VII-Fund VIII Associates |  | $                  | 318,957   |   |                    | $ | 319,046                          
|Fund VI-VII-VIII Associates   |  |                    | 704,521   |   |                    |   | 676,933                          
|Fund VIII-Fund IX Associates  |  |                    | 941,792   | * |                    |   | 904,386                          
|                              |  |                    |           |   |                    |   |                                  
|                              |  | $                  | 1,965,270 |   |                    | $ | 1,900,365                        
|                              |  |                    |           |   |                    |   |                                  
|                              |  |                    |          
|                              |  | Total Revenues     |           |   | Net Income         |   | Partnerships Share of Net Income
|                              |  | Six Months Ended   |           |   | Six Months Ended   |   | Six Months Ended                 
|                              |  | June 30, 2003      |           |   | June 30, 2002      |   |                                  
|Fund VII-Fund VIII Associates |  | $                  | 654,974   |   |                    | $ | 661,262                          
|Fund VI-VII-VIII Associates   |  |                    | 1,419,101 |   |                    |   | 1,399,958                        
|Fund VIII-Fund IX Associates  |  |                    | 1,872,971 | * |                    |   | 1,774,630                        
|                              |  |                    |           |   |                    |   |                                  
|                              |  | $                  | 3,947,046 |   |                    | $ | 3,835,850                        
|                              |  |                    |           |   |                    |   |                                  



|* |  | The Partnerships share of income earned from its investment in Fund VIII-IX-REIT Associates is recorded by Fund VIII-IX Associates as equity in income of joint ventures,
which is classified as revenue.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(1) |  | Amounts have been restated to reflect tenant reimbursements of $497,360 as revenues for the three months ended June 30, 2002, which has no impact on net income.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) |  | Amounts have been restated to reflect tenant reimbursements of $1,000,538 as revenues for the six months ended June 30, 2002, which has no impact on net income.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



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The following information summarizes the operations of the joint venture in which Fund VIII-Fund IX
Associates held an ownership interest for the three months and six months ended June 30, 2003 and 2002, respectively:





|                             |  | Total Revenues     |         |               | Net Income         |         | Partnerships Share of Net Income | 
|---------------------------- |  | ------------------ | ------- | ------------- | ------------------ | ------- | --------------------------------- | 
|                             |  | Three Months Ended |         |               | Three Months Ended |         | Three Months Ended                | 
|                             |  | June 30, 2003      |         | June 30, 2002 |                    |         | June 30, 2003                     | 
|Fund VIII-IX-REIT Associates |  | $                  | 309,840 |               | $                  | 310,228 | (1)                               | 
|                             |  |                    |         |               |                    |         |                                   | 
|                             |  |                    |        
|                             |  | Total Revenues     |         |               | Net Income         |         | Partnerships Share of Net Income | 
|                             |  | Six Months Ended   |         |               | Six Months Ended   |         | Six Months Ended                  | 
|                             |  | June 30, 2003      |         | June 30, 2002 |                    |         | June 30, 2003                     | 
|Fund VIII-IX-REIT Associates |  | $                  | 621,780 |               | $                  | 634,908 | (2)                               | 
|                             |  |                    |         |               |                    |         |                                   | 



|* |  | The Partnerships share of income earned from its investment in Fund VIII-IX-REIT Associates is recorded by Fund VIII-IX Associates as equity in income of
joint ventures, which is classified as revenue.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(1) |  | Amounts have been restated to reflect tenant reimbursements of $7,605 as revenues for the three months ended June 30, 2002, which has no impact on net income.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) |  | Amounts have been restated to reflect tenant reimbursements of $29,351 as revenues for the six months ended June 30, 2002, which has no impact on net income.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------



3. RECENT ACCOUNTING PRONOUNCEMENTS



In January 2003, the Financial Accounting Standards Board issued
Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities, which clarifies the application of Accounting Research Bulletin (ARB) No. 51, Consolidated Financial Statements, relating to consolidation of
certain entities. FIN 46 requires the identification of the Partnerships participation in variable interest entities (VIEs), which are defined as entities with a level of invested equity that is not sufficient to fund future
activities to permit them to operate on a stand-alone basis, or whose equity holders lack certain characteristics of a controlling financial interest. For entities identified as VIEs, FIN 46 sets forth a model to evaluate potential consolidation
based on an assessment of which party to the VIE, if any, bears a majority of the exposure to its expected losses, or stands to gain from a majority of its expected returns. FIN 46 is effective for all new VIEs created or acquired after January 31,
2003. For VIEs created or acquired prior to February 1, 2003, the provisions of FIN 46 must be applied for the first interim or annual period beginning after June 15, 2003. FIN 46 also sets forth certain disclosures regarding interests in VIEs that
are deemed significant, even if consolidation is not required. As the Joint Ventures do not fall under the definition of VIEs provided above, the Partnership does not believe that the adoption of FIN 46 will result in the consolidation of any
previously unconsolidated entities.



In August 2001, SFAS No.
144, Accounting for the Impairment or Disposal of Long-Lived Assets (effective beginning January 1, 2002) was issued. SFAS No. 144 addresses financial accounting and reporting for the impairment of long-lived assets and for long-lived
assets to be disposed of and supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of. Among other factors, SFAS No. 144 establishes criteria beyond that previously specified
in SFAS No. 121 to determine when a long-lived asset is to be considered held for sale. We believe that the adoption of SFAS No. 144 will not have a significant impact on the Partnerships financial statements.





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4.    RELATED-PARTY TRANSACTIONS



(a) Management and Leasing Fees



The Partnership entered into a property management and leasing agreement
with Wells Management, Inc. (Wells Management), an affiliate of the General Partners. In consideration for supervising the management of properties, such properties will generally pay Wells Management management and leasing fees equal to
(a) 3% of the gross revenues for management and 3% of the gross revenues for leasing (aggregate maximum of 6%) plus a separate fee for the one-time initial lease-up of newly constructed properties in an amount not to exceed the fee customarily
charged in arms-length transactions by others rendering similar services in the same geographic area for similar properties or (b) in the case of commercial properties which are leased on a long-term net basis (ten or more years), 1% of the
gross revenues, except for initial leasing fees equal to 3% of the gross revenues over the first five years of the lease term. The properties in which the Partnership owns interests paid management and leasing fees to Wells Management of $131,976
and $111,420 for the three months ended June 30, 2003 and 2002, respectively, and $241,106 and $233,785 for the six months ended June 30, 2003 and 2002, respectively.



(b) Administration Reimbursements



Wells Capital, Inc., an affiliate of the General Partners, perform certain administrative services for the Partnership, such
as accounting, property management, and other partnership administration, and incur the related expenses. Such expenses are allocated among the various Wells Real Estate Funds based on time spent on each fund by individual administrative personnel.
The Partnership reimbursed $13,158 and $9,284 for the three months ended June 30, 2003 and 2002, respectively, and $27,158 and $20,583 for the six months ended June 30, 2003 and 2002, respectively, to Wells Capital, Inc. and its affiliates for these
services. The Joint Ventures reimbursed $43,065 and $38,298 for the three months ended June 30, 2003 and 2002, respectively, and $76,751 and $68,665 for the six months ended June 30, 2003 and 2002, respectively, to Wells Capital, Inc. and its
affiliates for these services and expenses.



(c) Conflicts
of Interest



The General Partners of the Partnership are
also general partners of other Wells Real Estate Funds. As such, there may exist conflicts of interest where the General Partners in their capacity as general partners of other Wells Real Estate Funds may be in competition with the Partnership in
connection with property acquisitions or for tenants in similar geographic markets.



|ITEM 2. |  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
|------- |  | --------------------------------------------------------------------------------------



The following discussion and analysis should be read in conjunction with the accompanying financial statements and notes
thereto.



(a) Forward-Looking Statements



This report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934, including discussion and analysis of the financial condition of the Partnership, anticipated capital expenditures required to complete certain projects,
amounts of cash distributions anticipated to be distributed to limited partners in the future, and certain other matters. Readers of this Report should be aware that there are various factors that may cause actual results to differ materially from
any forward-looking statements made in this report, including construction costs which may exceed estimates, construction delays, lease-up risks, inability to obtain new tenants upon the expiration of existing leases, and the potential need to fund
tenant improvements or other capital expenditures out of operating cash flows.



(b) Results of Operations



Gross Revenues

Gross revenues of the Partnership were $387,703 and $303,792 for the three months ended June 30, 2003
and 2002, respectively, and $751,407 and $618,100 for the six months ended June 30, 2003 and 2002, respectively. The 2003 increase from 2002 resulted from the corresponding change in equity in income of Joint Ventures described below.



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Equity In Income of Joint Ventures



Gross Revenues of Joint Ventures

Gross revenues of the Joint Ventures increased in 2003, as compared to 2002, primarily due to (i) downward adjustments to 2001
operating expense reimbursement billings to tenants of the US Cellular and Cirrus Logic Buildings, which were recorded in the first quarter of 2002; (ii) downward adjustments to 2001 operating expense reimbursement billings to tenants of the
BellSouth Building, which were recorded in the second quarter of 2002; and (iii) an increase in operating expense reimbursement income in 2003, as compared to 2002, for the US Cellular Building. Tenants are billed for operating expense
reimbursements based on estimates, which are reconciled in the following calendar year based on actual costs incurred and the terms of the corresponding tenant leases.



Expenses of Joint Ventures

The expenses of the Joint Ventures decreased in 2003, as compared to 2002, primarily due to the following non-recurring items: (i)
reserving doubtful accounts receivable due from tenants at Hannover during the first quarter of 2002; (ii) HVAC and plumbing repair costs for the BellSouth Building incurred during the first half of 2002; (iii) a decrease in depreciation expense
recognized for the US Cellular Building, as the majority of tenant improvement costs became fully depreciated during the second half of 2002; and (iv) a decrease in depreciation expense recognized for Hannover Center as a result of classifying this
property as held for sale and ceasing depreciation effective March 18, 2003 (See Contracts Obligations and Commitments section for additional information).



Expenses

Total expenses of the
Partnership were $34,397 and $23,110 for the three months ended June 30, 2003 and 2002, respectively, and $58,847 and $48,992 for the six months ended June 30, 2003 and 2002, respectively. These increases primarily resulted an increase in
administrative costs incurred partially in response to new regulatory requirements. We anticipate additional increases related to the implementation of the new reporting regulations during the second half of 2003. Increases in partnership
administration costs are also attributable to the evaluation of various re-leasing and liquidation strategies for the Partnerships portfolio of properties during the first six months of 2003.



Net Income

As a result, net income of the Partnership was $353,306 and $280,682 for the three months ended June 30, 2003 and 2002, respectively and $692,560 and
$569,108 for the six months ended June 30, 2003 and 2002, respectively.



(c) Liquidity and Capital Resources



Cash Flows From Operating Activities

Net cash flows from operating activities was $(62,276) and $(52,059) for the
six months ended June 30, 2003 and 2002, respectively. The 2003 increase in operating cash flows used is primarily attributable to the increase in partnership administration costs described in the previous section.



Cash Flows From Investing Activities

Net cash flows from investing activities was $1,591,907 and $1,445,436 for the six months ended June 30, 2003 and 2002, respectively. Cash provided by
investing activities increased in 2003 from 2002 primarily due to the receipt of net sales proceeds from Fund VI-VII-VIII Associates in January 2003 from the sale of an outparcel of land at Tanglewood Commons on October 7, 2002.



Cash Flows From Financing Activities

Net cash flows from financing activities remained relatively stable at $(1,360,940) for the six months ended June 30, 2003, as compared to $(1,351,835)
for the six months ended June 30, 2002.





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Distributions

The Partnership made distributions to the limited partners holding Class A units of $0.24 per unit for the quarters ended June 30, 2003 and 2002, respectively. Such distributions have been made from net cash from
operations and distributions received from investments in joint ventures. Distributions accrued for the second quarter of 2003 to the limited partners holding Class A Units were paid in August 2003. No cash distributions were made to the limited
partners holding Class B Units.



Sales Proceeds

Rather than distributing net sales proceeds to the limited partners, the Partnerships share of the net proceeds generated
from the sale of the outparcel of land at Tanglewood Commons will be held in reserve as the General Partners evaluate the projected capital needs of the Partnerships investments, as well as the impact to the limited partners of the potential
investment in an expansion of Tanglewood Commons. Upon completing such evaluation, the General Partners anticipate distributing the unused portion of the reserves to the partners in accordance with the terms of the partnership agreement during 2003.



Capital Resources

The Partnership is an investment vehicle formed for the purpose of acquiring, owning and operating income-producing real properties and has invested all
of its funds available for investment. Accordingly, it is unlikely that the Partnership will acquire interests in any additional properties. The Partnership is unaware of any material commitments for capital expenditures with respect to any of its
properties which would have a material effect on its capital resources.



Contract Obligations and Commitments

On March 18, 2003, four Wells affiliated joint ventures (collectively, the
Seller, defined below) entered into an agreement (the Agreement) to sell five real properties (the Sale Properties, defined below) located in Stockbridge, Georgia to an unrelated third-party (the
Purchaser) for a gross sales price of $23,750,000. Contemporaneously with the Purchasers execution and delivery of the Agreement to the Seller, the Purchaser paid a fully refundable earnest money deposit of $250,000 to the
designated escrow agent. This transaction is currently subject to an extended due diligence period of 150 days, during which the Purchaser has the right to terminate the Agreement. Accordingly, there are no assurances that this sale will close.



|(Collectively, the Seller) The Joint Ventures |  | Joint Venture Partners                                                   |  | Sale Properties                                                                                                                                                                       
|----------------------------------------------- |  | ------------------------------------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                               
|Fund III-IV Associates                          |  |   Wells Real Estate Fund III, L.P.   Wells Real Estate Fund IV, L.P.   |  | 1. Stockbridge Village Center A retail shopping center located in Stockbridge, Georgia                                                                                                
|                                               
|Fund V-VI Associates                            |  |   Wells Real Estate Fund V, L.P.   Wells Real Estate Fund VI, L.P.     |  | 2. Stockbridge Village II Two retail buildings located in Stockbridge, Georgia                                                                                                        
|                                               
|Fund VI-VII Associates                          |  |   Wells Real Estate Fund VI, L.P.   Wells Real Estate Fund VII, L.P.   |  | 3. Stockbridge Village I Expansion A retail shopping center expansion located in Stockbridge, Georgia  4. Stockbridge Village III Two retail buildings located in Stockbridge, Georgia
|                                               
|Fund VII-VIII Associates                        |  |   Wells Real Estate Fund VII, L.P.   Wells Real Estate Fund VIII, L.P. |  | 5. Hannover Center A retail center located in Stockbridge, Georgia                                                                                                                    
|                                               



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(d) Related Party Transactions



The Partnership and its joint ventures have entered into agreements with
Wells Capital, Inc., the General Partner of Wells Partners, L.P., and its affiliates, whereby the Partnership or its joint ventures pay certain fees or reimbursements to Wells Capital, Inc. or its affiliates for sales commissions, dealer manager
fees, property management and leasing fees, and reimbursement of operating costs. See Note 4 to the Partnerships financial statements included in this report for a discussion of the various related party transactions, agreements and fees.



(e) Inflation



The real estate market has not been affected significantly by inflation in
the past three years due to the relatively low inflation rate. However, there are provisions in the majority of tenant leases, which would protect the Partnership from the impact of inflation. These provisions include reimbursement billings for
operating expense pass-through charges, real estate tax and insurance reimbursements on a per square foot basis, or in some cases, annual reimbursement of operating expenses above a certain per square foot allowance. There is no assurance, however,
that the Partnership would be able to replace existing leases with new leases at higher base rental rates.



(f) Application of Critical Accounting Policies



The Partnerships accounting policies have been established to conform with GAAP. The preparation of financial
statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If managements judgment or interpretation of the facts and circumstances relating to
various transactions had been different, it is possible that different accounting policies would have been applied; thus, resulting in a different presentation of the financial statements. Additionally, other companies may utilize different
estimates that may impact comparability of the Partnerships results of operations to those of companies in similar businesses.



Below is a discussion of the accounting policies that management considers to be critical in that they may require complex judgment in their application
or require estimates about matters that are inherently uncertain.



Investment in Real Estate Assets

Management is required to make subjective assessments as to the useful lives of its
depreciable assets. Management considers the period of future benefit of the asset to determine the appropriate useful lives. These assessments have a direct impact on net income. The estimated useful lives of the Joint Ventures assets by
class are as follows:



|Building              |  | 25 years   
|--------------------- |  | -----------
|Building improvements |  | 10-25 years
|Land improvements     |  | 20-25 years
|Tenant improvements   |  | Lease term 



In the event that
management uses inappropriate useful lives or methods for depreciation, the Partnerships net income would be misstated.



Valuation of Real Estate Assets

Management continually monitors events and changes in circumstances that could indicate that the carrying amounts of the real estate assets in which the Partnership has an ownership interest, either directly or through investments in joint
ventures, may not be recoverable. When indicators of potential impairment are present which indicate that the carrying amounts of real estate assets may not be recoverable, management assesses the recoverability of the real estate assets by
determining whether the carrying value of the real estate assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its



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eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, management adjusts the real estate
assets to the fair value and recognizes an impairment loss. Management has determined that there has been no impairment in the carrying value of real estate assets held by the Partnership to date.



Projections of expected future cash flows requires management to estimate
future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, discount rates, the number of months it takes to re-lease the property, and the number of years the property is held for
investment. The use of inappropriate assumptions in the future cash flow analysis would result in an incorrect assessment of the propertys future cash flows and fair value, and could result in the overstatement of the carrying value of real
estate assets held by the joint ventures and net income of the Partnership.



ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS



Since the Partnership does not borrow any money, make any foreign investments or invest in any market risk-sensitive instruments, it is not subject to
risks relating to interest rates, foreign current exchange rate fluctuations, or the other market risks contemplated by Item 305 of Regulation S-K.



ITEM 4.    CONTROLS AND PROCEDURES



The Partnership carried out an evaluation, under the supervision and with the participation of management of Wells Capital, Inc., the corporate general partner of one of the General Partners of the Partnership,
including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Partnerships disclosure controls and procedures as of the end of the period covered by this report pursuant to
the Securities Exchange Act of 1934. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the Partnerships disclosure controls and procedures were effective.



There were no significant changes in the Partnerships internal controls
over financial reporting that have materially affected, or are reasonably likely to materially affect, the Partnerships internal control over financial reporting.



(THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK)



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PART II.    OTHER INFORMATION



ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K



|(a) |  | The Exhibits to this report are set forth on Exhibit Index to Second Quarter Form 10-Q attached hereto.
|--- |  | -------------------------------------------------------------------------------------------------------



|(b) |  | No reports on Form 8-K were filed during the second quarter of 2003.
|--- |  | --------------------------------------------------------------------



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.



|               |  |  |  | WELLS REAL ESTATE FUND VIII, L.P. (Registrant)
|-------------- |  |  |  | ----------------------------------------------
|               |  |  | 
|               |  |  |  |                                               
|               |  |  |  |                                               
|               |  |  | 
|               |  |  |  |                                               
|               |  |  |  |                                               
|               |  | 
|August 8, 2003 |  |  |  | /s/    LEO F. WELLS,
III                      
|               |  |  |  |                                               
|               |  | 
|August 8, 2003 |  |  |  | /s/    DOUGLAS P.
WILLIAMS                    
|               |  |  |  |                                               



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EXHIBIT INDEX

TO SECOND QUARTER FORM 10-Q

OF

WELLS REAL ESTATE FUND VIII, L.P.



|Exhibit No. |  | Description                                                                                                                   
|----------- |  | ------------------------------------------------------------------------------------------------------------------------------
|            | 
|31.1        |  | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                        
|            | 
|31.2        |  | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                        
|            | 
|32.1        |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002



18