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, 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 September 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 September 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 September 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: October 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: October 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
October 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 September 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 September 30, 1996, and 1995, total
revenues increased 4.9% from $646,673 to $678,489 and total expenses increased
9.8% from $380,551 to $417,871. Minority interest in income of real estate
joint venture increased 2.0% from $24,134 to $24,611. As a result, net income
decreased 2.5% from $241,988 to $236,007 for the three month period ended
September 30, 1997, as compared to the same period in 1996. Rental revenue
increased as a result of higher unit rental rates. Operating expenses
increased approximately $35,200 (10.3%) primarily as a result of higher yellow
pages advertising costs, maintenance and repair and salaries and wages expenses.
General and administrative expenses remained constant. Occupancy levels for
the Partnership's six mini-storage facilities averaged 85.9% for the three
month period ended September 30, 1997, as compared to 86.8% for the same period
in 1996. The Partnership is continuing its marketing efforts to attract and
keep new tenants in its various mini-storage facilities.
For the nine month periods ended September 30, 1997, and 1996, total revenues
increased 5.8% from $1,863,855 to $1,971,737 and total expenses increased 5.6%
from $1,197,043 to $1,263,967. Minority interest in income of real estate
joint venture decreased 1.0% from $67,095 to $66,421. As a result, net income
increased 6.9% from $599,717 to $641,349 for the nine month period ended
September 30, 1997, as compared to the same period in 1996. The increase in
revenue is primarily due to the increase in rental income as a result of higher
occupancy and unit rental rates. Operating expenses increased approximately
$57,000 (5.5%) due primarily to increases in yellow pages advertising costs,
salaries and wages, fire and liability insurance, property management fees and
maintenance and repair expenses. The increase in salaries and wages is
primarily due to a non-recurring termination payment to a facility manager.
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 $9,900 (6.2%) primarily as a result of Colorado State
Taxes, which were levied for the first time.
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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 622,496 $ 549,578
PROPERTY 6,993,201 7,420,663
OTHER ASSETS 86,081 41,457
TOTAL $7,701,778 $8,011,698
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 760,250 $ 744,650
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 330,062 366,841
PARTNERS' EQUITY:
General Partners (71,326) (68,439)
Limited Partners 6,682,792 6,968,646
Total partners' equity 6,611,466 6,900,207
TOTAL $7,701,778 $8,011,698
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $ 674,803 $ 642,768
Interest 3,686 3,905
Total revenues 678,489 646,673
EXPENSES:
Operating Expenses 377,896 342,650
General and administrative 39,975 37,901
Total expenses 417,871 380,551
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 260,618 266,122
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE 24,611 24,134
NET INCOME $ 236,007 $ 241,988
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 233,647 $ 239,568
General partners 2,360 2,420
TOTAL $ 236,007 $ 241,988
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.61 $ 7.81
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, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
REVENUES:
Rental Income $1,961,832 $1,851,556
Interest 9,905 12,299
Total revenues 1,971,737 1,863,855
EXPENSES:
Operating Expenses 1,095,325 1,038,281
General and administrative 168,642 158,762
Total expenses 1,263,967 1,197,043
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 707,770 666,812
MINORITY INTEREST IN INCOME OF
REAL ESTATE JOINT VENTURE 66,421 67,095
NET INCOME 641,349 599,717
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 634,936 593,720
General Partners 6,413 5,997
TOTAL 641,349 599,717
NET INCOME PER LIMITED PARTNERSHIP UNIT 20.69 19.34
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, 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 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
EQUITY AT DECEMBER 31, 1996 ($68,439) $6,968,646 $6,900,207
NET INCOME 6,413 634,936 641,349
DISTRIBUTIONS (9,300) (920,790) (930,090)
EQUITY AT SEPTEMBER 30, 1997 ($71,326) $6,682,792 $6,611,466
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 641,349 $ 599,717
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 440,811 440,814
Distributions paid to
minority interest
in real estate joint
venture in excess of
earnings (36,779) (33,256)
Changes in assets and
liabilities:
Increase in other assets (44,624) (27,113)
Increase in liabilities 15,600 430
Net cash provided by
operating activities 1,016,357 980,592
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment (13,349) (6,230)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (930,090) (930,090)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 72,918 44,272
CASH AND CASH EQUIVALENTS:
At beginning of period 549,578 617,951
At end of period $ 622,496 $ 662,223
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, 1997,
and for the periods ended September 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 September 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 10,989,249
Total 13,719,039
Less: Accumulated Depreciation ( 6,725,838)
Property - Net $ 6,993,201
</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> SEP-30-1997 DEC-31-1997
<CASH> 622496 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13719039 0
<DEPRECIATION> 6725838 0
<TOTAL-ASSETS> 7701778 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 7701778 0
<SALES> 1961832 0
<TOTAL-REVENUES> 1971737 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 641349 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 641349 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 641349 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
