UNITED STATES
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 March 31, 1996
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 033-33504
AAA NET REALTY FUND IX, LTD.
NEBRASKA LIMITED PARTNERSHIP IRS IDENTIFICATION NO.
76-0318157
8 GREENWAY PLAZA, SUITE 824 HOUSTON, TX 77046
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. X Yes No
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL
INSTRUCTION H (1) (a) AND (b) OF FORM 10-Q AND IS, THEREFORE,
FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
MARCH 31, DECEMBER 31,
1996 1995
(Unaudited)
ASSETS
CASH & CASH EQUIVALENTS $ 193,940 $ 181,359
ACCOUNTS RECEIVABLE 1,050 1,050
PROPERTY:
Land 1,490,494 1,490,494
Building 2,946,375 2,946,375
4,436,869 4,436,869
Accumulated depreciation (382,877) (359,494)
TOTAL PROPERTY 4,053,992 4,077,375
OTHER ASSETS:
Organization costs, net of accumulated
amortization of $223,479 and $211,352,
respectively 19,096 31,223
Syndication costs, net of accumulated
amortization of $521,457 and $493,157,
respectively 44,545 72,845
TOTAL OTHER ASSETS 63,641 104,068
TOTAL ASSETS 4,312,623 4,363,852
LIABILITIES & PARTNERSHIP EQUITY
LIABILITIES
Accounts payable 34,344 20,487
TOTAL LIABILITIES 34,344 20,487
PARTNERSHIP EQUITY
General partners (4,836) (4,588)
Limited partners 4,283,115 4,347,953
TOTAL PARTNERSHIP EQUITY 4,278,279 4,343,365
TOTAL LIABILITIES & PARTNERSHIP EQUITY $ 4,312,623 $ 4,363,852
See Notes to Financial Statements.
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND MARCH 31, 1995
(Unaudited)
1996 1995
INCOME
Rental income $ 123,575 $ 123,575
TOTAL INCOME 123,575 123,575
EXPENSES
Administrative expenses 4,050 5,700
Accounting fees 4,893 3,550
Amortization 40,429 40,429
Depreciation 23,384 23,384
Filing fees 250 250
Legal and professional fees 1,610 1,754
Other 99 141
TOTAL EXPENSES 74,715 75,208
INCOME FROM OPERATIONS 48,860 48,367
OTHER INCOME
Interest income 1,352 2,061
TOTAL OTHER INCOME 1,352 2,061
NET INCOME $ 50,212 $ 50,428
ALLOCATION OF NET INCOME
General partners $ 502 $ 504
Limited partners 49,710 49,924
$ 50,212 $ 50,428
NET INCOME PER UNIT $ 9.31 $ 9.35
UNITS OUTSTANDING 5,390.5 5,390.5
See Notes to Financial Statements.
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
STATEMENT OF PARTNERSHIP EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(Unaudited)
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
PARTNERSHIP EQUITY (DEFICIT)
AT DECEMBER 31, 1995 $ (4,588) $ 4,347,953 $ 4,343,365
DISTRIBUTIONS (750) (114,548) (115,298)
NET INCOME 502 49,710 50,212
PARTNERSHIP EQUITY (DEFICIT)
AT MARCH 31, 1996 $ (4,836) $ 4,283,115 $ 4,278,279
See Notes to Financial Statements.
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND MARCH 31, 1995
(Unaudited)
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 50,212 $ 50,428
Adjustments to reconcile net income to
net cash from operating activities:
Amortization 40,429 40,429
Depreciation 23,384 23,384
Increase (decrease) in accounts payable 13,854 (4,204)
NET CASH FLOWS FROM
OPERATING ACTIVITIES 127,879 110,037
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions (115,298) (115,298)
NET CASH FLOWS FROM FINANCING
ACTIVITIES (115,298) (115,298)
NET INCREASE (DECREASE) IN CASH
and CASH EQUIVALENTS 12,581 (5,261)
CASH and CASH EQUIVALENTS
at Beginning of Period 181,359 177,311
CASH and CASH EQUIVALENTS
at End of Period $ 193,940 $ 172,050
See Notes to Financial Statements.
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND MARCH 31, 1995
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AAA Net Realty Fund IX, Ltd. ("the Partnership"), is a limited
partnership formed February 1, 1990 under the laws of the
State of Nebraska. American Asset Advisers Management
Corporation IX (a Nebraska corporation) is the managing
general partner and H. Kerr Taylor is the individual general
partner. The Partnership commenced operations as of June 6,
1990. The offering period for subscriptions terminated June
5, 1992 with a total of 5,390.5 units having been subscribed
at an offering price of $1,000 per unit.
The Partnership was formed to acquire commercial properties
for cash. The Partnership will own, lease, operate, manage
and eventually sell the properties. The supervision of the
operations of the properties is managed by American Asset
Advisers Realty Corporation, ("AAA"), a related party.
The financial records of the Partnership are maintained on the
accrual basis of accounting whereby revenues are recognized
when earned and expenses are reflected when incurred.
Rental income is recorded ratably over the life of the lease.
For purposes of the statement of cash flows the Partnership
considers all highly liquid debt instruments purchased with
a maturity of three months or less to be cash equivalents.
There has been no cash paid for income taxes or interest
during 1996 or 1995.
Land and buildings are stated at cost. Buildings are
depreciated on a straight-line basis over an estimated useful
life of 31.5 years.
Organization costs and syndication costs are amortized on a
straight line basis over five years.
All income and expense items flow through to the partners for
tax purposes. Consequently, no provision for federal or
state income taxes is provided in the accompanying financial
statements.
The accompanying unaudited financial statements have been
prepared in accordance with the instructions to Form 10-Q and
do not include all of the disclosures required by generally
accepted accounting principles. The financial statements
reflect all normal and recurring adjustments which are, in
the opinion of management, necessary to present a fair
statement of results for the three month periods ended March
31, 1996 and March 31, 1995.
The financial statements of AAA Net Realty Fund IX, Ltd.
contained herein should be read in conjunction with the
financial statements included in the Partnership's annual
report on Form 10-K for the year ended December 31, 1995.
2. PARTNERSHIP EQUITY
The managing general partner, American Asset Advisers
Management Corporation IX, and the individual general
partner, H. Kerr Taylor, have made capital contributions in
the amounts of $990 and $10, respectively. The general
partners shall not be obligated to make any other
contributions to the Partnership, except that, in the event
that the general partners have negative balances in their
capital accounts after dissolution and winding up of, or
withdrawal from, the Partnership, the general partners will
contribute to the Partnership an amount equal to the lesser
of the deficit balances in their capital accounts or 1.01% of
the total capital contributions of the limited partners' over
the amount previously contributed by the general partners.
3. RELATED PARTY TRANSACTIONS
The Partnership Agreement provides for the reimbursement for
administrative services necessary for the prudent operation
of the Partnership and its assets with the exception that no
reimbursement is permitted for rent, utilities, capital
equipment, salaries, fringe benefits or travel expenses
allocated to the individual general partner or to any
controlling persons of the managing general partner. In
connection therewith, $4,050 and $5,700 was incurred and paid
to AAA during the first three months of 1996 and 1995,
respectively.
4. MAJOR LESSEES
The following schedule summarizes total rental income by
lessee for the three months ended March 31, 1996:
Foodmaker, Inc. $15,934
Tandy Corporation $41,211
Payless Shoe Source $18,500
Golden Corral Corporation $47,930
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
AAA Net Realty Fund IX, Ltd., a Nebraska limited partnership, was
formed February 1, 1990 to acquire on a debt-free basis, existing
and newly constructed commercial properties located in the
continental United States and particularly in the Southwest, to
lease these properties to tenants under generally "triple net"
leases, to hold the properties with the expectation of equity
appreciation and eventually to resell the properties. The Offering
for 15,000 limited partnership units was effective June 6, 1990 and
terminated June 5, 1992 with 5,390.5 units ($5,390,500) having been
subscribed. In addition, the general partners had previously made
$1,000 of contributions.
For the three months ended March 31, 1996, revenues totaled
$124,927 which was comprised of $123,575 of rental income and
$1,352 of interest income. Rental income remained unchanged from
the rental income recorded in the first quarter of 1995. Interest
income declined slightly as a result of the decline in interest
rates over those of the first quarter of 1995. Expenses declined
by $493 primarily from a reduction in administrative fees paid to
an affiliate of the general partner. The Partnership recorded net
income for the first quarter of 1996 of $50,212 as compared to net
income of $50,428 for the first quarter of 1995.
For the three months ended March 31, 1995, revenues totaled
$125,636 which was comprised of $123,575 of rental income and
$2,061 of interest income. The Partnership's total revenue
increased $2,365 over the three months ended March 31, 1994 as a
result of an increase in the rental income from one property and an
increase in interest income. The Partnership also recorded a
corresponding increase in net income for this period from $47,124
to $50,428.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
NONE
Item 5. Other Information
NONE
Item 6. Exhibits and Reports on Form 8-K
Exhibit 27 - Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
AAA Net Realty Fund IX, Ltd.
(Registrant)
May 15, 1996
Date H. Kerr Taylor, President of General Partner
May 15, 1996
Date H. Kerr Taylor, Chief Financial Officer of
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 193940
<SECURITIES> 0
<RECEIVABLES> 1050
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 194990
<PP&E> 4436869
<DEPRECIATION> 382877
<TOTAL-ASSETS> 4312623
<CURRENT-LIABILITIES> 34344
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4278279
<TOTAL-LIABILITY-AND-EQUITY> 4312623
<SALES> 123575
<TOTAL-REVENUES> 124927
<CGS> 0
<TOTAL-COSTS> 74715
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 50212
<INCOME-TAX> 0
<INCOME-CONTINUING> 50212
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 50212
<EPS-PRIMARY> 9.31
<EPS-DILUTED> 0
</TABLE>
