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, 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 September 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 September 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 September 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: October 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: October 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
October 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 September 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 September 30, 1996, and 1995, total
revenues decreased slightly from $648,948 to $646,673 and total expenses
decreased 1.8% from $387,712 to $380,551. Minority interest in income
of real estate joint venture decreased 21.9% from $30,888 to $24,134.
As a result, net income increased 5.1% from $230,348 to $241,988 for the
three month period ended September 30, 1996, as compared to the same period
in 1995. Occupancy levels for the Partnership's six mini-storage facilities
averaged 86.8% for the three month period ended September 30, 1996, as
compared to 87.8% for the same period in 1995. The Partnership is
continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities. Operating expenses decreased approximately
$9,600 (2.7%) primarily as a result of lower maintenance and repair expenses,
partially offset by higher yellow pages advertising costs. General and
administrative expenses increased approximately $2,500 (7.1%) 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 nine month periods ended September 30, 1996, and 1995, total revenues
increased 0.8% from $1,848,731 to $1,863,855 and total expenses increased
0.6% from $1,189,906 to $1,197,043. Minority interest in income of real estate
joint venture decreased 21.4% from $85,363 to $67,095. As a result, net
income increased 4.6% from $573,462 to $599,717 for the nine month period
ended September 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 decreased approximately $6,800 (0.4%) due primarily to decreases
in maintenance and repair, office expense and legal and professional fees,
partially offset by increases in yellow pages advertising costs, real estate
tax expense and salaries and wages. Office expenses decreased as the
prior period included costs of some modest modifications to some rental
offices. General and administrative expenses increased approximately $13,900
(9.6%) 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)
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 662,223 $ 617,951
PROPERTY 7,583,909 8,018,490
OTHER ASSETS 68,570 41,457
TOTAL $8,314,702 $8,677,898
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 728,027 $ 727,597
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 386,608 419,861
PARTNERS' EQUITY:
General Partners (65,440) (62,137)
Limited Partners 7,265,507 7,592,577
Total partners' equity 7,200,067 7,530,440
TOTAL $8,314,702 $8,677,898
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $ 642,768 $ 645,681
Interest 3,905 3,267
Total revenues 646,673 648,948
EXPENSES:
Operating Expenses 342,650 352,276
General and administrative 37,901 35,436
Total expenses 380,551 387,712
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 266,122 261,236
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE 24,134 30,888
NET INCOME $ 241,988 $ 230,348
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 239,568 $ 228,045
General partners 2,420 2,303
TOTAL $ 241,988 $ 230,348
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.81 $ 7.43
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 NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
REVENUES:
Rental Income $1,851,556 $1,840,286
Interest 12,299 8,445
Total revenues 1,863,855 1,848,731
EXPENSES:
Operating Expenses 1,038,281 1,045,064
General and administrative 158,762 144,842
Total expenses 1,197,043 1,189,906
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 666,812 658,825
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURE 67,095 85,363
NET INCOME 599,717 573,462
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 593,720 567,727
General Partners 5,997 5,735
TOTAL 599,717 573,462
NET INCOME PER LIMITED PARTNERSHIP UNIT 19.34 18.50
LIMITED PARTNERSHIP UNITS USED
IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT DECEMBER 31, 1994 ($ 58,938) $7,909,264 $7,850,326
NET INCOME 5,735 567,727 573,462
DISTRIBUTIONS (8,139) (805,692) (813,831)
EQUITY AT SEPTEMBER 30, 1995 ($61,342) $7,671,299 $7,609,957
EQUITY AT DECEMBER 31, 1995 ($62,137) $7,592,577 $7,530,440
NET INCOME 5,997 593,720 599,717
DISTRIBUTIONS (9,300) (920,790) (930,090)
EQUITY AT SEPTEMBER 30, 1996 ($65,440) $7,265,507 $7,200,067
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
<TABLE>
<CAPTION>
September 30, September 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 599,717 $ 573,462
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 440,814 440,812
Distributions paid to
minority interest
in real estate joint
venture in excess of
earnings (33,256) (41,537)
Changes in assets and
liabilities:
Increase in other assets (27,113) (27,223)
Increase in liabilities 430 17,446
Net cash provided by
operating activities 980,592 962,960
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment (6,230) (12,545)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (930,090) (813,831)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 44,272 136,584
CASH AND CASH EQUIVALENTS:
At beginning of period 617,951 421,316
At end of period $ 662,223 $ 557,900
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 September 30, 1996,
and for the periods ended September 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 September 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 10,975,900
Total 13,705,690
Less: Accumulated Depreciation ( 6,121,781)
Property - Net $ 7,583,909
</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> SEP-30-1996 DEC-31-1996
<CASH> 662223 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13705690 0
<DEPRECIATION> 6121781 0
<TOTAL-ASSETS> 8314702 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 8314702 0
<SALES> 1851556 0
<TOTAL-REVENUES> 1863855 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 599717 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 599717 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 599717 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
