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, 1998
/___/ 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.)
6700 E. Pacific Coast Hwy., Long Beach, California 90803
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code-(562)493-8881
_________________________________________________________________
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, 1998 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, 1998.
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, 1998.
(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, 1998 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, 1998 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, 1998
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, 1998. 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, 1998, and 1997, total
revenues increased 4.1% from $653,687 to $680,298 and total expenses increased
1.3% from $429,341 to $435,006. Minority interest in income of real estate
joint venture increased 24.2% from $21,764 to $27,036. As a result, net income
increased 7.7% from $202,582 to $218,256 for the three month period ended
June 30, 1998, as compared to the same period in 1997. Rental revenue increased
as a result of higher unit rental rates. Occupancy levels for the Partnership's
six mini-storage facilities averaged 83.6% for the three month period ended
June 30, 1998, as compared to 87.8% for the same period in 1997. The Partnership
is continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities. Operating expenses remained constant. General
and administrative expenses increased approximately $4,400 (8.0%) as a result
of relatively insignificant fluctuations in various expense accounts. Minority
interest in income of real estate joint venture increased primarily as a result
of higher rental revenue.
For the six month periods ended June 30, 1998, and 1997, total revenues
increased 3.6% from $1,293,248 to $1,340,160 and total expenses increased 0.3%
from $846,096 to $848,665. Minority interest in income of real estate joint
venture increased 24% from $41,810 to $51,824. As a result, net income
increased 8.5% from $405,342 to $439,671 for the six month period ended June 30,
1998, as compared to the same period in 1997. The increase in revenue is
primarily due to the increase in rental income as a result of higher unit rental
rates. Operating expenses decreased approximately $3,300 (0.5%) due primarily
to a decrease in salaries and wages partially offset by an increase in real
estate tax expense. The decrease in salaries and wages is primarily due to a
non-recurring termination payment to a facility manager in the prior year.
General and administrative expenses increased approximately $5,900 (4.6%) for
the same reason as discussed above. Minority interest in income of real estate
joint venture increased primarily as a result of higher rental revenue and
lower salaries and wage expense.
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, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 575,071 $ 496,565
PROPERTY 6,538,889 6,832,913
OTHER ASSETS 89,317 67,449
TOTAL $7,203,277 $7,396,927
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 736,212 $ 727,497
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 293,870 315,846
PARTNERS' EQUITY:
General Partners (75,708) (73,905)
Limited Partners 6,248,903 6,427,489
Total partners' equity 6,173,195 6,353,584
TOTAL $7,203,277 $7,396,927
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
<S> <C> <C>
REVENUES:
Rental Income $ 677,137 $ 650,511
Interest 3,161 3,176
Total revenues 680,298 653,687
EXPENSES:
Operating Expenses 375,288 374,035
General and Administrative 59,718 55,306
Total expenses 435,006 429,341
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 245,292 224,346
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE 27,036 21,764
NET INCOME $ 218,256 $ 202,582
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 216,073 $ 200,556
General partners 2,183 2,026
TOTAL $ 218,256 $ 202,582
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 7.04 $ 6.53
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, 1998 AND 1997
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
<S> <C> <C>
REVENUES:
Rental Income $1,334,665 $1,287,029
Interest 5,495 6,219
Total revenue 1,340,160 1,293,248
EXPENSES:
Operating Expenses 714,093 717,429
General and administrative 134,572 128,667
Total expenses 848,665 846,096
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 491,495 447,152
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE 51,824 41,810
NET INCOME $439,671 $405,342
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $435,274 $401,289
General partners 4,397 4,053
TOTAL $439,671 $405,342
NET INCOME PER LIMITED PARTNERSHIP UNIT $14.18 $13.07
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, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
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
EQUITY AT DECEMBER 31, 1997 ($73,905) $6,427,489 $6,353,584
NET INCOME 4,397 435,274 439,671
DISTRIBUTIONS (6,200) (613,860) (620,060)
EQUITY AT JUNE 30, 1998 ($75,708) $6,248,903 $6,173,195
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
<TABLE>
<CAPTION>
June 30, June 30,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 439,671 $ 405,342
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 293,875 293,875
Distributions paid to
minority interest
in real estate joint
venture in excess of
earnings (21,976) (20,891)
Changes in assets and
liabilities:
Increase in other assets (21,868) (48,000)
Increase(Decrease)in liabilities 8,715 (8,059)
Net cash provided by
operating activities 698,417 622,267
CASH FLOWS FROM INVESTING ACTIVITIES -
Disposal of property and equipment 149 0
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (620,060) (620,060)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 78,506 2,207
CASH AND CASH EQUIVALENTS:
At beginning of period 496,565 549,578
At end of period $ 575,071 $ 551,785
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, 1998
and for the periods ended June 30, 1998, and 1997 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, 1998, the total cost and
accumulated depreciation of the mini-storage facilities are as follows:
<TABLE>
<S> <C>
Land $ 2,729,790
Buildings and equipment 10,975,750
Total 13,705,540
Less: Accumulated Depreciation ( 7,166,651)
Property - Net $ 6,538,889
</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-31-1998 DEC-31-1998
<PERIOD-END> JUN-30-1998 DEC-31-1998
<CASH> 575071 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13705540 0
<DEPRECIATION> 7166651 0
<TOTAL-ASSETS> 7203277 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 7203277 0
<SALES> 1334665 0
<TOTAL-REVENUES> 1340160 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 439671 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 439671 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 439671 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
