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, 1999
/___/ 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, 1999 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, 1999.
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, 1999.
(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, 1999 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, 1999 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, 1999
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, 1999. 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, 1999, and 1998, total
revenues increased 8.1% from $680,298 to $735,285 and total expenses
increased 5.0% from $435,006 to $456,759. Minority interest in income of
real estate joint venture increased 9.4% from $27,036 to $29,576. As a result,
net income increased 14.1% from $218,256 to $248,950 for the three-month
period ended June 30, 1999, as compared to the same period in 1998. Rental
revenue increased as a result of higher unit rental rates as occupancy levels
for the Partnership's six mini-storage facilities averaged 83.6% for the three
month periods ended June 30, 1999 and 1998. The Partnership is continuing its
marketing efforts to attract and keep new tenants in its various mini-storage
facilities. Operating expenses increased approximately $22,100(5.9%) due
primarily to increases in salaries and wage expense and property management
fees. Property management fees, which are based on rental revenue, increased
as a result of the increase in rental revenue. General and adminstrative
expenses decreased slightly as a decrease in legal and professional expense
was offset by an increase in Colorado State taxes and relatively insignificant
increases in various other 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, 1999, and 1998, total revenues
increased 7.7% from $1,340,160 to $1,443,628 and total expenses increased
11.7% from $848,665 to $947,563. Minority interest in income of real estate
joint venture increased 6.6% from $51,824 to $55,225. As a result, net income
increased slightly by 0.3% from $439,671 to $440,840 for the six-month period
ended June 30, 1999, as compared to the same period in 1998. The increase
in revenue is primarily due to the increase in rental income as a result of
higher occupancy and unit rental rates, partially offset by a decrease in U-Haul
commission income. Operating expenses increased approximately $101,800
(14.3%) due primarily to increases in maintenance and repair, salaries and
wages, workers compensation, power and sweeping expenses and property manage-
ment fees. The increase in property management fees was discussed above.
Power and sweeping expense increased as a result of the substantial snow
removal costs associated with the blizzard that hit Illinois, where two of
the Partnership's properties are located. General and administrative expenses
decreased approximately $2,900 (2.2%) for the same reasons as discussed above.
Minority interest in income of real estate joint venture increased primarily
as a result of higher rental revenue partially offset by an increase in
maintenance and repair 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.
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 programs, 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 adverse 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)
CONSOLIDATED BALANCE SHEETS(UNAUDITED)
JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 695,648 $ 633,690
PROPERTY, Net 5,951,288 6,245,163
OTHER ASSETS 51,421 45,536
TOTAL $6,698,357 $6,924,389
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 688,453 $ 727,790
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 255,116 262,591
PARTNERS' EQUITY (DEFICIT):
General Partners (79,893) (78,101)
Limited Partners 5,834,681 6,012,109
Total partners' equity 5,754,788 5,934,008
TOTAL $6,698,357 $6,924,389
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental income $ 732,740 $ 677,137
Interest 2,545 3,161
Total revenues 735,285 680,298
EXPENSES:
Operating 397,432 375,288
General and Administrative 59,327 59,718
Total expenses 456,759 435,006
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 278,526 245,292
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (29,576) (27,036)
NET INCOME $ 248,950 $ 218,256
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 246,460 $ 216,073
General Partners 2,490 2,183
TOTAL $ 248,950 $ 218,256
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 8.03 $ 7.04
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, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental income $1,438,577 $1,334,665
Interest 5,051 5,495
Total revenue 1,443,628 1,340,160
EXPENSES:
Operating 815,884 714,093
General and administrative 131,679 134,572
Total expenses 947,563 848,665
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 496,065 491,495
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE (55,225) (51,824)
NET INCOME $440,840 $439,671
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $436,432 $435,274
General Partners 4,408 4,397
TOTAL $440,840 $439,671
NET INCOME PER LIMITED PARTNERSHIP UNIT $14.22 $14.18
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, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 1998 ($73,905) $6,427,489 $6,353,584
NET INCOME 4,397 435,274 439,671
DISTRIBUTIONS (6,200) (613,860) (620,060)
BALANCE AT JUNE 30, 1998 ($75,708) $6,248,903 $6,173,195
BALANCE AT JANUARY 1, 1999 ($78,101) $6,012,109 $5,934,008
NET INCOME 4,808 436,432 440,840
DISTRIBUTIONS (6,200) (613,860) (620,060)
BALANCE AT JUNE 30, 1999 ($79,893) $5,834,681 $5,754,788
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 440,840 $ 439,671
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 293,875 293,875
Loss on disposal of
Property and equipment 0 149
Minority interest in income
of real estate joint venture 55,225 51,824
Changes in assets and
liabilities:
Increase in other assets (5,885) (21,868)
Decrease(increase)in liabilities (39,337) 8,715
Net cash provided by
operating activities 744,718 772,366
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (620,060) (620,060)
Distributions paid to minority
interest in real estate
joint venture (62,700) (73,800)
Net cash used in
financing activities (682,760) (693,860)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 61,958 78,506
CASH AND CASH EQUIVALENTS:
At beginning of period 633,690 496,565
At end of period $ 695,648 $ 575,071
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, 1999
and for the periods ended June 30, 1999, and 1998 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, 1999, the total cost and
accumulated depreciation of the mini-storage facilities are as follows:
<TABLE>
<S> <C>
Land $ 2,729,790
Buildings and equipment 10,975,901
Total 13,705,691
Less: Accumulated Depreciation ( 7,754,403)
Property - Net $ 5,951,288
</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-31-1999 DEC-31-1999
<PERIOD-END> JUN-30-1999 DEC-31-1999
<CASH> 695648 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13705691 0
<DEPRECIATION> 7754403 0
<TOTAL-ASSETS> 6698357 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6698357 0
<SALES> 1438577 0
<TOTAL-REVENUES> 1443628 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 440840 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 440840 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 440840 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
