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, 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 2-90168
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, 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 September 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 September 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: October 29, 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: October 29, 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
October 29, 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 financial
statements for the period ended September 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 September 30, 1999 and 1998, total
revenues increased 1.0% from $720,419 to $727,838 and total expenses increased.
4.1% from $410,827 to $427,707. Minority interest in income of real estate
joint venture increased 2.2% from $31,688 to $32,377. As a result, net income
decreased 3.7% from $277,904 to $267,754 for the three-month period ended
September 30, 1999, as compared to the same period in 1998. Rental revenue
increased as a result of higher unit rental rates. Occupancy levels for the
Partnership's six mini-storage facilities averaged 82.3% for the three month
period ended September 30, 1999 as compared to 85.3% for the same period in
1998. The Partnership is continuing its marketing efforts to attract and keep
new tenants in its various mini-storage facilities. Operating expenses
increased approximately $11,500 (3.1%) due primarily to an increase in
maintenance and repair expense, partially offset by a decrease in yellow pages
advertising costs. General and administrative expenses increased approximately
$5,300 (13.7%) as a decrease in legal and professional expense was offset by
an increase in equipment and computer lease expenses and relatively
insignificant increases in various other expense accounts. Minority interest
in income of real estate joint venture remained relatively constant.
For the nine-month periods ended September 30, 1999, and 1998, total revenues
increased 5.4% from $2,060,579 to $2,171,466 and total expenses increased 9.2%
from $1,259,492 to $1,375,270. Minority interest in income of real estate
joint venture increased 4.9% from $83,512 to $87,602. As a result, net income
decreased 1.3% from $717,575 to $708,594 for the nine-month period ended
September 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 $113,300 (10.4%)
due primarily to increases in maintenance and repair, salaries and wages,
workers compensation, power and sweeping expenses and property management fees,
partially offset by a decrease in yellow pages advertising costs. Property
management fees, which are based on rental revenue, increased as a result of
the increase in rental revenue. 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 increased approximately $2,400 (1.4%) 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 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, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS $ 808,807 $ 633,690
PROPERTY, Net 5,804,350 6,245,163
OTHER ASSETS 58,614 45,536
TOTAL $6,671,771 $6,924,389
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 719,767 $ 727,790
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 239,492 262,591
PARTNERS' EQUITY(DEFICIT):
General Partners (80,315) (78,101)
Limited Partners 5,792,827 6,012,109
Total partners' equity 5,712,512 5,934,008
TOTAL $6,671,771 $6,924,389
See accompanying notes to financial statements(unaudited).
</TABLE>
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
REVENUES:
<S> <C> <C>
Rental Income $ 725,364 $ 717,422
Interest 2,474 2,997
Total revenues 727,838 720,419
EXPENSES:
Operating 383,475 371,937
General and administrative 44,232 38,890
Total expenses 427,707 410,827
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 300,131 309,592
EQUITY IN INCOME OF REAL ESTATE (32,377) (31,688)
NET INCOME $ 267,754 $ 277,904
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 265,076 $ 275,125
General partners 2,678 2,779
TOTAL $ 267,754 $ 277,904
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 8.64 $ 8.96
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, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Rental Income $2,163,941 $2,052,087
Interest 7,525 8,492
Total Revenues 2,171,466 2,060,579
EXPENSES:
Operating 1,199,359 1,086,030
General and Administrative 175,911 173,462
Total Expenses 1,375,270 1,259,492
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 796,196 801,087
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE (87,602) (83,512)
NET INCOME $708,594 $717,575
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 701,508 710,399
General Partners 7,086 7,176
TOTAL 708,594 717,575
NET INCOME PER LIMITED
PARTNERSHIP UNIT $22.86 $23.15
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 (DEFICIT)(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
<S> <C> <C> <C>
EQUITY AT JANUARY 1, 1998 ($73,905) $6,427,489 $6,353,584
NET INCOME 7,176 710,399 717,575
DISTRIBUTIONS (9,300) (920,790) (930,090)
EQUITY AT SEPTEMBER 30, 1998 ($76,029) $6,217,098 $6,141,069
BALANCE AT JANUARY 1, 1999 ($78,101) $6,012,109 $5,934,008
NET INCOME 7,086 701,508 708,594
DISTRIBUTIONS (9,300) (920,790) (930,000)
BALANCE AT SEPTEMBER 30, 1999 ($80,315) $5,792,827 $5,712,512
See accompanying notes to consolidated financial statements(unaudited).
</TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
September 30, September 30,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 708,594 $717,575
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 440,812 440,813
Loss on disposal of
property and equipment 0 149
Minority interest in income
of real estate joint venture 87,602 83,512
Changes in assets and
liabilities:
Increase in other assets (13,078) 7,361
(Decrease)increase in liabilities (8,023) 25,886
Net cash provided by
operating activities 1,215,907 1,275,296
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (930,090) (930,090)
Distributions paid to
minority interest in
real estate joint venture (110,700) (120,900)
Net cash used in financing activities (1,040,790) (1,050,990)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 175,117 224,306
CASH AND CASH EQUIVALENTS:
At beginning of period 633,690 496,565
At end of period $ 808,807 $720,871
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, 1999, and for
the periods ended September 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 September 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 improvements 10,975,901
Total 13,705,691
Less: Accumulated Depreciation ( 7,901,341)
Property - Net $ 5,804,350
</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> SEP-30-1999 DEC-31-1999
<CASH> 808807 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 13705691 0
<DEPRECIATION> 7901341 0
<TOTAL-ASSETS> 6671771 0
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
<COMMON> 0 0
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 6671771 0
<SALES> 2163941 0
<TOTAL-REVENUES> 2171466 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 708594 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 708594 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 708594 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
