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, 1997
/___/ 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-(562)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, 1997 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, 1997.
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, 1997.
(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, 1997 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, 1997 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, 1997
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, 1997. 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, 1997, and 1996, total
revenues increased 7.4% from $608,647 to $653,687 and total expenses
increased 6.4% from $403,379 to $429,341. Minority interest in income
of real estate joint venture increased 5.6% from $20,615 to $21,764. As
a result, net income increased 9.7% from $184,653 to $202,582 for the three
month period ended June 30, 1997, as compared to the same period in 1996.
Occupancy levels for the Partnership's six mini-storage facilities averaged
87.8% for the three month period ended June 30, 1997, as compared to 85%
for the same period in 1996. Rental revenue increased as a result of higher
occupancy and 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 $16,900 (4.7%)
primarily as a result of higher yellow pages advertising costs, fire and
liability insurance, salaries and wages and property management fee expenses
partially offset by lower maintenance and repair expenses. Property
management fees which are based on rental revenue, increased as a result of
the increase in rental revenue. General and administrative expenses
increased approximately $9,100 (19.61%) primarily as a result of Colorado
State Taxes, which were levied for the first time.
For the six month periods ended June 30, 1997, and 1996, total revenues
increased 6.3% from $1,217,182 to $1,293,248 and total expenses increased
3.6% from $816,492 to $846,096. Minority interest in income of real estate
joint venture decreased 2.7% from $42,961 to $41,810. As a result, net
income increased 13.3% from $357,729 to $405,342 for the six month period
ended June 30, 1997, as compared to the same period in 1996. The increase
in revenue is the result of an increase in rental income offset partially
by a decrease in income from U-Haul commissions. Rental income increased
as a result of higher occupancy and unit rental rates. Operating expenses
increased approximately $21,800 (3.1%) due primarily to increases in yellow
pages advertising costs, salaries and wages, fire and liability insurance
and property management fee expenses partially offset by a decrease in
maintenance and repair and real estate tax expenses. The increase in
salaries and wages is primarily due to a non-recurring termination payment
to a facility manager. The increase in property management fees was
discussed above. General and administrative expenses increased approximately
$7,800 (6.5%) for the same reason as discussed above.
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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 551,785 $ 549,578
PROPERTY 7,126,789 7,420,663
OTHER ASSETS 89,457 41,457
TOTAL $7,768,031 $8,011,698
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 736,591 $ 744,650
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 345,951 366,841
PARTNERS' EQUITY:
General Partners (70,586) (68,439)
Limited Partners 6,756,075 6,968,646
Total partners' equity 6,685,489 6,900,207
TOTAL $7,768,031 $8,011,698
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $ 650,511 $ 603,920
Interest 3,176 4,727
Total revenues 653,687 608,647
EXPENSES:
Operating Expenses 374,035 357,147
General and Administrative 55,306 46,232
Total expenses 429,341 403,379
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 224,346 205,268
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE 21,764 20,615
NET INCOME $ 202,582 $ 184,653
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 200,556 $ 182,806
General partners 2,026 1,847
TOTAL $ 202,582 $ 184,653
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.53 $ 5.96
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, 1997 AND 1996
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $1,287,029 $1,208,788
Interest 6,219 8,394
Total revenue 1,293,248 1,217,182
EXPENSES:
Operating Expenses 717,429 695,631
General and administrative 128,667 120,861
Total expenses 846,096 816,492
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 447,152 400,690
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE 41,810 42,961
NET INCOME $405,342 $357,729
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $401,289 $354,152
General partners 4,053 3,577
TOTAL $405,342 $357,729
NET INCOME PER LIMITED PARTNERSHIP UNIT $13.07 $11.54
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 THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
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
EQUITY AT DECEMBER 31, 1996 ($68,439) $6,968,646 $6,900,207
NET INCOME 4,053 401,289 405,342
DISTRIBUTIONS (6,200) (613,860) (620,060)
EQUITY AT JUNE 30, 1997 ($70,586) $6,756,075 $6,685,489
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 405,342 $ 357,729
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 293,875 293,876
Distributions paid to
minority interest
in real estate joint
venture in excess of
earnings (20,891) (19,589)
Changes in assets and
liabilities:
Increase in other assets (48,000) (53,525)
Decrease in liabilities (8,059) (1,090)
Net cash provided by
operating activities 622,267 577,401
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (620,060) (620,060)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 2,207 (42,659)
CASH AND CASH EQUIVALENTS:
At beginning of period 549,578 617,951
At end of period $ 551,785 $ 575,292
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, 1997
and for the periods ended June 30, 1997, and 1996 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, 1997, 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 ( 6,578,901)
Property - Net $ 7,126,789
</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-31-1997 DEC-31-1997
<PERIOD-END> JUN-30-1997 DEC-31-1997
<CASH> 551785 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13705690 0
<DEPRECIATION> 6578901 0
<TOTAL-ASSETS> 7768031 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 7768031 0
<SALES> 1287029 0
<TOTAL-REVENUES> 1293248 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 405342 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 405342 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 405342 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
