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, 1996
/___/ Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934
for the transition period from ______________ to ________________.
Commission File Number 2-96364
DSI REALTY INCOME FUND IX, A California Limited Partnership
(Exact name of registrant as specified in its charter)
California_______________________________________33-0103989
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
3701 Long Beach Boulevard, Long Beach, California 90807
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code-(310)595-7711
_________________________________________________________________
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, 1996 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, 1996.
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, 1996.
(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, 1996 DSI REALTY INCOME FUND IX
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, 1996 DSI REALTY INCOME FUND IX
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, 1996
QUARTERLY REPORT TO THE LIMITED PARTNERS
OF DSI REALTY INCOME FUND IX
DEAR LIMITED PARTNERS:
We are pleased to enclose the Partnership's unaudited consolidated financial
statements for the period ended June 30, 1996. 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, 1996 and 1995, total
revenues decreased 0.8% from $613,564 to $608,647 and total expenses
increased 1.3% from $398,212 to $403,379. Minority interest in income
of real estate joint venture decreased 27.4% from $28,385 to $20,615.
As a result, net income decreased 1.2% from $186,967 to $184,653 for the
three month period ended June 30, 1996, as compared to the same period
in 1995. The decrease in revenue can be attributed primarily to a decrease
in sale of abandoned goods and U-Haul commissions as rental income remained
constant. Occupancy levels for the Partnership's six mini-storage facilities
averaged 85% for the three month period ended June 30, 1996, as compared
to 86.2% for the same period in 1995. Decrease in rental income as a
result of lower occupancy levels for the three month period ended June 30, 1996
as compared to the same period in 1995, was partially offset by higher unit
rental rates. The Partnership is continuing its marketing efforts to
attract and keep new tenants in its various mini-storage facilities.
Operating expenses increased approximately $3,900 (1.1%) primarily as a
result of higher maintenance and repair expenses, partially offset by lower
office expenses. Office expense in the prior period included costs of some
modest renovations to some rental offices. General and administrative
expenses increased approximately $1,200 (2.7%) primarily as a result of
higher incentive management fees. Incentive management fees which are based
on cash distributions to limited partners, increased as a result of an
increase in these distributions.
For the six month periods ended June 30, 1996, and 1995, total revenues
increased 1.5% from $1,199,783 to $1,217,182 and total expenses increased
1.8% from $802,194 to $816,492. Minority interest in income of real estate
joint venture decreased 21.1% from $54,475 to $42,961. As a result, net
income increased 4.3% from $343,114 to $357,729 for the six month period
ended June 30, 1996, as compared to the same period in 1995. The increase
in revenue is the result of an increase in rental income offset partially by
a decrease in income from U-Haul commissions and sale of abandoned goods.
Rental income increased as a result of higher unit rental rates. Operating
expenses increased approximately $2,800 (0.4%) due primarily to increases in
yellow pages advertising costs, maintenance and repair and real estate tax
expenses, offset partially by lower office expense and legal and professional
fees. Office expenses decreased as the prior period included costs of some
modest modifications to some rental offices. General and administrative
expenses increased approximately $11,500 (10.5%) for the same reason as
discussed above.
Effective with the fourth quarter 1995 distribution, the General Partners
decided to increase distributions to an amount that yields an annualized
return of 8% of limited partners' capital contributions from the previous
7% level. This action was the result of the Partnership's increased cash
flow from the operations of its properties.
The General Partners plan to continue their policy of funding improvements
and maintenance of Partnership properties with cash generated from operations.
The Partnership's resources appear to be adequate to meet its needs. The
General Partners anticipate distributions to the Limited Partners to
remain at the current level for the foreseeable future.
We are not enclosing a copy of the Partnership Form 10-Q as filed with the
Securities and Exchange Commission since all the information set forth
therein is contained either in this letter or in the attached financial
statements. However, if you wish to receive a copy of said report, please
send a written request to DSI Realty Income Fund IX, P.O. Box 357, Long
Beach, California 90801.
Very truly yours,
DSI REALTY INCOME FUND IX
By: DSI Properties, Inc., as
General Partner
By /s/ Robert J. Conway
____________________________
ROBERT J. CONWAY, President
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
CONSOLIDATED BALANCE SHEETS(UNAUDITED)
JUNE 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 575,292 $ 617,951
PROPERTY 7,724,615 8,018,490
OTHER ASSETS 94,982 41,457
TOTAL $8,394,889 $8,677,898
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 726,507 $ 727,597
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 400,273 419,861
PARTNERS' EQUITY:
General Partners (64,760) (62,137)
Limited Partners 7,332,869 7,592,577
Total partners' equity 7,268,109 7,530,440
TOTAL $8,394,889 $8,677,898
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30, June 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $ 603,920 $ 610,700
Interest 4,727 2,864
Total revenues 608,647 613,564
EXPENSES:
Operating Expenses 357,147 353,214
General and administrative 46,232 44,998
Total expenses 403,379 398,212
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 205,268 215,352
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE 20,615 28,385
NET INCOME $ 184,653 $ 186,967
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 182,806 $ 185,097
General partners 1,847 1,870
TOTAL $ 184,653 $ 186,967
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 5.96 $ 6.03
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30, June 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $1,208,788 $1,194,605
Interest 8,394 5,178
Total revenues 1,217,182 1,199,783
EXPENSES:
Operating Expenses 695,631 692,788
General and administrative 120,861 109,406
Total expenses 816,492 802,194
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 400,690 397,589
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURE 42,961 54,475
NET INCOME 357,729 343,114
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 354,152 339,683
General Partners 3,577 3,431
TOTAL 357,729 343,114
NET INCOME PER LIMITED PARTNERSHIP UNIT 11.54 11.07
LIMITED PARTNERSHIP UNITS USED
IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1994 ($ 58,938) $7,909,264 $7,850,326
NET INCOME 3,431 339,683 343,114
DISTRIBUTIONS (5,426) (537,128) (542,554)
EQUITY AT JUNE 30, 1995 ($60,933) $7,711,819 $7,650,886
EQUITY AT DECEMBER 31, 1995 ($62,137) $7,592,577 $7,530,440
NET INCOME 3,577 354,152 357,729
DISTRIBUTIONS (6,200) (613,860) (620,060)
EQUITY AT JUNE 30, 1996 ($64,760) $7,332,869 $7,268,109
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
<TABLE>
<CAPTION>
June 30, June 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 357,729 $ 343,114
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 293,876 293,876
Distributions paid to
minority interest
in real estate joint
venture in excess of
earnings (19,589) (26,225)
Changes in assets and
liabilities:
Increase in other assets (53,525) (26,353)
Increase in liabilities (1,090) 16,819
Net cash provided by
operating activities 577,401 601,231
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment 0 (22,127)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (620,060) (542,554)
NET INCREASE IN CASH AND
CASH EQUIVALENTS (42,659) 36,550
CASH AND CASH EQUIVALENTS:
At beginning of period 617,951 421,316
At end of period $ 575,292 $ 457,866
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
DSI Realty Income Fund IX (the "Partnership"), a limited partnership, has
three general partners (DSI Properties, Inc., Robert J. Conway and
Joseph W. Conway) and limited partners owning 30,693 limited partnership
units.
The accompanying consolidated financial information as of June 30, 1996
and for the periods ended June 30, 1996, and 1995 is unaudited. Such
financial information includes all adjustments which are 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 Monterey Park
and Azusa, California; Everett, Washington; and Romeoville and Elgin,
Illinois. The Partnership also owns a 70% interest in a mini-storage
facility in Aurora, Colorado. As of June 30, 1996, the total cost and
accumulated depreciation of the mini-storage facilities are as follows:
<TABLE>
<S> <C>
Land $ 2,729,790
Buildings and equipment 10,969,669
Total 13,699,459
Less: Accumulated Depreciation ( 5,974,844)
Property - Net $ 7,724,615
</TABLE>
3. 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-31-1996 DEC-31-1996
<PERIOD-END> JUN-30-1996 DEC-31-1996
<CASH> 575292 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13699459 0
<DEPRECIATION> 5974844 0
<TOTAL-ASSETS> 8394889 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 8394889 0
<SALES> 1208788 0
<TOTAL-REVENUES> 1217182 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 357729 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 357729 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 357729 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
