UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
________ 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
(713) 850-1400
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
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
BALANCE SHEET
MARCH 31, 1997
(Unaudited)
ASSETS
CASH & CASH EQUIVALENTS $ 173,195
ACCOUNTS RECEIVABLE 1,050
PROPERTY:
Land 1,490,494
Building 2,946,375
4,436,869
Accumulated depreciation (476,414)
TOTAL PROPERTY 3,960,455
TOTAL ASSETS $ 4,134,700
LIABILITIES & PARTNERSHIP EQUITY
LIABILITIES
Accounts payable $ 8,661
TOTAL LIABILITIES 8,661
PARTNERSHIP EQUITY (DEFICIT)
General partners (4,740)
Limited partners 4,130,779
TOTAL PARTNERSHIP EQUITY 4,126,039
TOTAL LIABILITIES & PARTNERSHIP EQUITY $ 4,134,700
LIMITED PARTNERSHIP UNITS OUTSTANDING 5,390.5
See Notes to Financial Statements.
2
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND MARCH 31, 1996
(Unaudited)
Year to Date
1997 1996
INCOME
Rental income $ 123,575 $ 123,575
TOTAL INCOME 123,575 123,575
EXPENSES
Administrative expenses 4,050 4,050
Accounting fees 5,650 4,893
Amortization - 40,429
Depreciation 23,384 23,384
Legal and professional fees 2,276 1,610
Other 34 349
TOTAL EXPENSES 35,394 74,715
INCOME FROM OPERATIONS 88,181 48,860
OTHER INCOME
Interest income 1,455 1,352
TOTAL OTHER INCOME 1,455 1,352
NET INCOME $ 89,636 $ 50,212
ALLOCATION OF NET INCOME
General partners $ 896 $ 502
Limited partners 88,740 49,710
$ 89,636 $ 50,212
NET INCOME PER UNIT $ 16.63 $ 9.31
UNITS OUTSTANDING 5,390.5 5,390.5
See Notes to Financial Statements.
3
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND MARCH 31, 1996
(Unaudited)
Year to Date
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 89,636 $ 50,212
Adjustments to reconcile net income to
net cash from operating activities:
Amortization - 40,429
Depreciation 23,384 23,384
Increase (decrease) in accounts payable (4,292) 13,854
NET CASH FLOWS FROM
OPERATING ACTIVITIES 108,728 127,879
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions (115,675) (115,298)
NET CASH FLOWS FROM FINANCING
ACTIVITIES (115,675) (115,298)
NET INCREASE (DECREASE) IN CASH
and CASH EQUIVALENTS (6,947) 12,581
CASH and CASH EQUIVALENTS
at Beginning of Period 180,142 181,359
CASH and CASH EQUIVALENTS
at End of Period $ 173,195 $ 193,940
See Notes to Financial Statements.
4
AAA NET REALTY FUND IX, LTD.
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31,1997 AND 1996
(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.
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 1997 or 1996.
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-QSB 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, 1997
and March 31, 1996.
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, 1996.
5
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 was incurred and paid to AAA for each of
the three month periods ended March 31, 1997 and March 31, 1996.
4. MAJOR LESSEES
The following schedule summarizes total rental income by lessee for the
three months ended March 31, 1997 and March 31, 1996:
Year to Date
1997 1996
Foodmaker, Inc. $15,934 $15,934
Tandy Corporation 41,211 41,211
Payless Shoe Source 18,500 18,500
Golden Corral Corporation 47,930 47,930
6
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.
RESULTS OF OPERATION
For the three months ended March 31, 1997, revenues totaled $125,030 which
was comprised of $123,575 of rental income and $1,455 of interest income.
Rental income remained unchanged from the rental income recorded in the
first quarter of 1996. Interest income remained essentially unchanged from
the interest income recorded in the first quarter of 1996. Expenses
declined by $39,321 primarily from a decrease in amortization as the
Partnership's organization and syndication costs were fully amortized in
late 1996. The Partnership recorded net income for the first quarter of
1997 of $89,636 as compared to net income of $50,212 for the first quarter
of 1996.
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.
7
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
8
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, 1997 /s/ H. Kerr Taylor
Date H. Kerr Taylor, President of General Partner
May 15, 1997 /s/ L. Larry Mangum
Date L. Larry Mangum (Principal Accounting Officer)
9
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
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