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, 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 2-90168
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 September 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 September 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 September 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: October 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: October 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
October 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 financial
statements for the period ended September 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 September 30, 1998 and 1997, total
revenues increased 6.2% from $678,489 to $720,419 and total expenses decreased
1.7% from $417,871 to $410,827. Minority interest in income of real estate
joint venture increased 28.8% from $24,611 to $31,688. As a result, net
income increased 17.8% from $236,007 to $277,904 for the three-month period
ended September 30, 1998, as compared to the same period in 1997. Rental
revenue increased as a result of higher occupancy and unit rental rates.
Occupancy levels for the Partnership's six mini-storage facilities averaged
86.7% for the three month period ended September 30, 1998, as compared to
85.9% 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 decreased approximately $6,000 (1.6%) due
primarily to a decrease in salaries and wages and yellow pages advertising
costs, partially offset by increases in maintenance and repair expenses and
property management fees. General and administrative expenses remained
constant. Minority interest in income of real estate joint venture increased
primarily as a result of higher rental revenue.
For the nine-month periods ended September 30, 1998, and 1997, total revenues
increased 4.5% from $1,971,737 to $2,060,579 and total expenses decreased 0.4%
from $1,263,967 to $1,259,492. Minority interest in income of real estate
joint venture increased 25.7% from $66,421 to $83,512. As a result, net income
increased 11.9% from $641,349 to $717,575 for the nine-month period ended
September 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 $9,300 (0.9%)
due primarily to decreases in yellow pages advertising costs and salaries and
wages, partially offset by an increase in real estate tax expense, maintenance
and repair expense and property management fees. 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 $4,800 (2.9%) 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
and lower yellow pages advertising costs and salaries and wage expense.
The General Partners will continue their policy of funding improvements
and maintenance of Partnership properties with cash generated from
operations. The Partnership's financial resources appear to be adequate
to meet its needs. The General Partners anticipate distributions to Limited
Partners to remain at the current level for the foreseeable future.
The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000. The Partnership has implemented
a Year 2000 program, which has three phases: (1) identification;
(2) remediation; and (3) testing and verification. The Partnership, as well
as the property management company and the Partnership's warehouse facilities
have completed those phases. Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expensed in the regular
course of business. The Partnership provides no assurance that third-party
suppliers and customers will be compliant. Nevertheless, the Partnership
does not believe that the Year 2000 issue will have a material advrse effect
on its financial condition or results of operations.
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)
BALANCE SHEETS(UNAUDITED)
SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 887,895 $ 496,565
PROPERTY 6,391,951 6,832,913
OTHER ASSETS 60,088 67,449
TOTAL $7,339,934 $7,396,927
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES $ 753,383 $ 727,497
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 278,458 315,846
PARTNERS' EQUITY:
General Partners (74,359) (73,905)
Limited Partners 6,382,452 6,427,489
Total partners' equity 6,308,093 6,353,584
TOTAL $7,339,934 $7,396,927
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
REVENUES:
<S> <C> <C>
Rental Income $ 717,422 $ 674,803
Interest 2,997 3,686
Total revenues 720,419 678,489
EXPENSES:
Operating Expenses 371,937 377,896
General and administrative 38,890 39,975
Total expenses 410,827 417,871
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 309,592 260,618
EQUITY IN INCOME OF REAL ESTATE (31,688) (24,611)
NET INCOME $ 341,280 $ 285,229
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 337,867 $ 282,377
General partners 3,413 2,852
TOTAL $ 341,280 $ 285,229
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 11.01 $ 9.20
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
REVENUES:
Rental Income $2,052,087 $1,961,832
Interest 8,492 9,905
Total Revenues 2,060,579 1,971,737
EXPENSES:
Operating Expenses 1,086,030 1,095,325
General and Administrative 173,462 168,642
Total Expenses 1,259,492 1,263,967
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 801,087 707,770
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE (83,512) (66,421)
NET INCOME $884,599 $774,191
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 875,753 766,449
General Partners 8,846 7,742
TOTAL 884,599 774,191
NET INCOME PER LIMITED
PARTNERSHIP UNIT $28.53 $24.97
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT JANUARY 1, 1997 ($ 68,439) $6,968,646 $6,900,207
NET INCOME 7,742 766,449 774,191
DISTRIBUTIONS (9,300) (920,790) (930,090)
EQUITY AT SEPTEMBER 30, 1997 ($69,997) $6,814,305 $6,744,308
EQUITY AT JANUARY 1, 1998 ($73,905) $6,427,489 $6,353,584
NET INCOME 8,846 875,753 884,599
DISTRIBUTIONS (9,300) (920,790) (930,090)
EQUITY AT SEPTEMBER 30, 1998 ($74,359) $6,382,452 $6,308,093
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
September 30, September 30,
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 884,599 $774,191
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 440,813 440,811
Loss on disposal of
property and equipment 149 0
Distributions paid to
minority interest in
real estate joint venture
in excess of earnings (37,388) (36,779)
Changes in assets and
liabilities:
Decrease(Increase)in other assets 7,361 (44,624)
Increase in liabilities 25,886 15,600
Net cash provided by
operating activities 1,321,420 1,149,199
CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of property
and equipment 0 (13,349)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (930,090) (930,090)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 391,330 205,760
CASH AND CASH EQUIVALENTS:
At beginning of period 496,565 549,578
At end of period $ 887,895 $755,338
See accompanying notes to 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 financial information as of September 30, 1998, and for
the periods ended September 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 September 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 improvements 10,975,750
Total 13,705,540
Less: Accumulated Depreciation ( 7,313,589)
Property - Net $ 6,391,951
</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> SEP-30-1998 DEC-31-1998
<CASH> 887895 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13705540 0
<DEPRECIATION> 7313589 0
<TOTAL-ASSETS> 7339934 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 7339934 0
<SALES> 2052087 0
<TOTAL-REVENUES> 2060579 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 884599 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 884599 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 884599 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
