<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended March 31, 2000 or
----------------------
[_] 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 0-22039
---------------------------------------------------------
Wells Real Estate Fund IX, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-2126622
- -------------------------------- ----------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification no.)
6200 The Corners Parkway, Suite 250, Norcross, Georgia 30092
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
--------------
________________________________________________________________________________
(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___
---
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund IX, L.P.
-------------------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - March 31, 2000
and December 31, 1999...................................... 3
Statements of Income for the Three Months
Ended March 31, 2000 and 1999.............................. 4
Statements of Partners' Capital for the Year Ended
December 31, 1999 and the Three Months
Ended March 31, 2000....................................... 5
Statements of Cash Flows for the Three Months
Ended March 31, 2000 and 1999.............................. 6
Condensed Notes to Financial Statements..................... 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations............... 8
PART II. OTHER INFORMATION ............................................. 19
</TABLE>
2
<PAGE>
WELLS REAL ESTATE FUND IX, L.P.
(a Georgia Public Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
Assets March 31, 2000 December 31, 1999
------ -------------- -----------------
<S> <C> <C>
Investment in joint venture (Note 2) $ 26,974,263 $ 27,196,918
Cash and Cash equivalents 51,940 102,194
Due from affiliates 730,645 639,956
Deferred project costs 3,721 5,485
------------ ------------
Total assets $ 27,760,569 $ 27,944,553
============ ============
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Partnership distributions payable 679,089 628,046
------------ ------------
Total liabilities 679,089 628,046
------------ ------------
Partners' capital:
Limited partners:
Class A-3,074,822 units outstanding as
of March 31, 2000 and 3,072,322
units as of December 31, 1999 26,178,277 26,114,657
Class B-425,178 units outstanding as
of March 31, 2000 and 427,678
units as of December 31, 1999 903,203 1,201,850
------------ ------------
Total partners' capital 27,081,480 27,316,507
------------ ------------
Total liabilities and partners' capital $ 27,760,569 $ 27,944,553
============ ============
</TABLE>
See accompanying condensed notes to financial statements.
3
<PAGE>
WELLS REAL ESTATE FUND IX, L.P.
(a Georgia Public Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Equity in income of joint ventures
(Note 2) $ 461,867 $ 409,083
--------- ---------
461,867 409,083
--------- ---------
Expenses:
Computer cost 3,067 2,435
Partnership administration 8,427 19,158
Legal and accounting fees 12,781 5,704
Amortization of organization costs 0 1,562
--------- ---------
24,275 28,859
--------- ---------
Net income $ 437,592 $ 380,224
========= =========
Net income allocated to Class A Limited Partners $ 729,214 $ 685,045
Net loss allocated to Class B Limited Partners $(291,622) $(304,821)
Net income per weighted average per Class A Limited
Partner Unit $ 0.24 $ 0.23
Net loss per weighted average Class B Limited
Partner Unit $ (0.69) $ (0.66)
Cash distribution per Class A Limited
Partner Unit $ 0.22 $ 0.23
</TABLE>
See accompanying condensed notes to financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND IX, L.P.
(a Georgia Public Limited Partnership)
STATEMENT OF PARTNERS' CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 2000
AND YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Limited Partners
------------------
Total
Class A Class B General Partners'
---------------------------- --------------------------
Units Amount Units Amount Partners Capital
----- ------ ----- ------ -------- -------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, December 31, 1998 2,989,875 $ 25,646,950 510,125 $ 2,879,510 $ 0 $ 28,526,460
Net income (loss) 0 2,713,636 0 (1,223,305) 0 1,490,331
Partnership distributions 0 (2,700,284) 0 0 0 (2,700,284)
Class B conversion elections 82,447 454,355 (82,447) (454,355) 0 0
---------- ------------ -------- ------------ ----- ------------
BALANCE, December 31, 1999 3,072,322 $ 26,114,657 427,678 $ 1,201,850 $ 0 $ 27,316,507
Net income (loss) 0 729,214 0 (291,622) 0 437,592
Partnership distributions 0 (672,619) 0 0 0 (672,619)
Class B conversion elections 2,500 7,025 (2,500) (7,025) 0 0
---------- ------------ -------- ------------ ----- ------------
BALANCE, March 31, 2000 3,074,822 $ 26,178,277 425,178 $ 903,203 $ 0 $ 27,081,480
========== ============ ======== ============ ===== ============
</TABLE>
See accompanying condensed notes to financial statements.
5
<PAGE>
WELLS REAL ESTATE FUND IX, L.P.
(a Georgia Public Limited Partnership)
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 437,591 $ 380,224
Adjustments to reconcile net income to net
cash used in by operating activities:
Equity in income of joint venture (461,867) (409,083)
Amortization of organization costs 0 1,562
Changes in assets and liabilities:
Accounts payable 0 (3,500)
---------- ----------
Net cash (used in) operating activities (24,276) (30,797)
========== ==========
Cash flow from investing activities:
Distributions received from joint ventures 639,956 739,441
Investment in joint ventures (44,358) (76,205)
---------- ----------
Net cash provided by investing activities 595,598 663,236
---------- ----------
Cash flow from financing activities:
Distributions to partners from
accumulated earning (621,576) (681,204)
---------- ----------
Net cash used in financing activities (621,576) (681,204)
---------- ----------
Net (decrease) in cash and cash equivalents (50,254) (49,765)
Cash and cash equivalents, beginning of year 102,194 326,022
---------- ----------
Cash and cash equivalents, end of period $ 51,940 $ 276,257
========== ==========
Supplemental disclosure of noncash investing
activities: Deferred project costs applied to
joint venture activities $ 1,764 $ 3,361
========== ==========
</TABLE>
See accompanying condensed notes to financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND IX, L.P.
(A Georgia Public Limited Partnership)
Condensed Notes to Financial Statement
March 31, 2000
(1) Summary of Significant Accounting Policies
(a) General
-----------
Wells Real Estate Fund IX, L.P. (the "Partnership") is a Georgia public
limited partnership having Leo F. Wells, III and Wells Partners, L.P., as
General Partners. The Partnership was formed on August 15, 1994, for the
purpose of acquiring, developing, constructing, owning, operating,
improving, leasing, and otherwise managing for investment purposes income
producing commercial properties.
On January 5, 1996, the Partnership commenced a public offering of up to
$35,000,000 of limited partnership units ($10.00 per unit) pursuant to a
Registration Statement on Form S-11 filed under the Securities Act of 1933.
The Partnership commenced active operations on February 12, 1996, when it
received and accepted subscriptions for 125,000 units. An aggregate
requirement of $2,500,000 of offering proceeds was reached on February
26,1996, thus allowing for the admission of New York and Pennsylvania
investors in the Partnership. The offering was terminated on December 30,
1996, at which time the Partnership had sold 2,935,931 Class A Status
Units, and 564,069 Class B Status Units, held by a total of 1,841 and 257
Class A and Class B Limited Partners respectively, for total Limited
Partner capital contributions of $35,000,000. After payment of $1,400,000
in acquisition and advisory fees and expenses, payments of $5,254,603 in
selling commissions and organization and offering expenses, the investment
by the Partnership of $13,289,359 in the Fund VIII - Fund IX Joint Venture
and the investment by the Partnership of $14,982,434 in the Fund IX-X-XI-
REIT Joint Venture, as of March 31, 2000, the Partnership was holding net
offering proceeds of $73,604 available for investment in properties.
The Partnership owns interests in properties through equity ownership in
the following joint ventures: (i) Fund VIII and Fund IX Associates, a joint
venture between the Partnership and Wells Real Estate Fund VIII, L.P. (the
"Fund VIII -IX Joint Venture"), and (ii) Fund IX-X-XI-REIT Associates, a
joint venture among the Partnership, Wells Real Estate Fund X, L.P., Wells
Real Estate Fund XI, L.P. and Wells Operating Partnership, L.P. ("Wells
OP"), a Delaware limited partnership having Wells Real Estate Investment
Trust, Inc. (the Wells REIT"), as its general partner, (the "Fund IX-X-XI-
REIT Joint Venture").
As of March 31, 2000, the Partnership owned interests in the following
properties through its ownership of the foregoing joint ventures: (i) a
four-story office building in Madison, Wisconsin (the "US Cellular Office
Building"), which is owned by the Fund VIII - IX Joint Venture; (ii) a one-
story office building in Farmer's Branch, Texas (the "TCI Building"), which
is owned by the Fund VIII - IX
7
<PAGE>
Joint Venture; (iii) a three-story office building in Knoxville, Tennessee
(the "ABB Building"), which is owned by the Fund IX-X-XI-REIT Joint
Venture; (iv) a two-story office building in Irvine, California (the
"Matsushita Building"), which is owned by the Fund VIII - IX Joint Venture;
(v) a two-story office building in Boulder County, Colorado (the "Cirrus
Logic Building"), which is owned by the Fund VIII - IX Joint Venture; (vi)
a two-story office building in Boulder County, Colorado (the "Ohmeda
Building"), which is owned by the Fund IX-X-XI-REIT Joint Venture; (vii) a
three-story office building located in Boulder County, Colorado (the "360
Interlocken Building"), which is owned by the Fund IX-X-XI-REIT Joint
Venture; (viii) a one-story office building located in Oklahoma City,
Oklahoma (the "Lucent Technologies Building"), which is owned by the Fund
IX-X-XI-REIT Joint Venture; and (ix) a single-story warehouse and office
building located in Ogden, Weber County, Utah (the "Iomega Building"),
which is owned by the Fund IX-X-XI-REIT Joint Venture.
(b) Basis of Presentation
--------------------------
The financial statements of Wells Real Estate Fund IX, L.P. (the
"Partnership") have been prepared in accordance with instructions to Form
10-Q and do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
These quarterly statements have not been examined by independent
accountants, but in the opinion of the General Partners, the statements for
the unaudited interim periods presented include all adjustments, which are
of a normal and recurring nature, necessary to present a fair presentation
of the results for such periods. For further information, refer to the
financial statements and footnotes included in the Partnership's Form 10-K
for the year ended December 31, 1999.
2) Investment in Joint Ventures
--------------------------------
The Partnership owns interests in several properties as of March 31, 2000,
through its ownership in joint ventures. The Partnership does not have
control over the operations of the joint ventures; however, it does
exercise significant influence. Accordingly, investment in joint ventures
is recorded on the equity method. For further information on investments in
joint ventures, see Form 10-K for the Partnership for the year ended
December 31, 1999.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
-------------------------------------------------------------------------
RESULTS OF OPERATION.
---------------------
The following discussion and analysis should be read in conjunction with
the accompanying financial statements of the Partnership and notes thereto.
This Report contains forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933 and 21E of the Securities
Exchange Act of 1934, including discussion and analysis of the financial
condition of the Partnership, anticipated capital expenditures required to
complete certain projects, amounts of cash distributions anticipated to be
distributed to Limited Partners in the future and certain other matters.
Readers of this Report should be aware that there are various factors that
could cause actual results to differ materially from any forward-looking
statement made in this report, which include construction costs which may
exceed estimates, construction delays, lease-up risks, inability to obtain
new tenants upon expiration of existing leases, and the potential need to
fund tenant improvements or other capital expenditures out of operating
cash flow.
8
<PAGE>
Results of Operations and Changes in Financial Conditions
---------------------------------------------------------
(a) General
-----------
As of March 31, 2000, the developed properties owned by the Partnership
were 100% occupied, whereas they were 99.8% occupied at March 31, 1999.
Gross revenues of the Partnership were $461,867 for the three months ended
March 31, 2000, as compared to $409,083 for the three months ended March
31, 1999. The increase was attributable primarily to the equity in income
of joint venture due to the increase in gross revenues at the ABB property
which is now 100% occupied and income from the parking lot expansion at the
Iomega property. Expenses of the Partnership decreased to $24,276 for the
three months ended March 31, 2000, as compared to $28,859 for the same
period in 1999, as a result of decreased activity primarily in
administrative salaries. As a result, net income of the Partnership was
$437,591 for the three months ended March 31, 2000, as compared to a net
income of $380,224 for the three months ended March 31, 1999.
The Partnership's net cash used in operating activities decreased to
$(24,276) for 2000, as compared to $(30,797) for 1999, which is due
primarily the decrease in expenses. Net cash provided by investing
activities decreased to $595,598 from $663,236 because of the decreased
distributions received from joint ventures. Net cash used in financing
activities decreased from $681,204 to $621,576 due to the distribution to
partners from accumulated earnings. Cash and cash equivalents decreased
from $276,257 to $51,940 for the same period in 2000.
The Partnership's distributions from Net Cash from Operations accrued to
Class A Unit holders for the first quarter of 2000 was $0.22 per weighted
average unit compared to $0.23 for the same period in 1999.
The Partnership expects to continue to meet its short-term liquidity
requirements generally through net cash provided by operations which the
Partnership believes will continue to be adequate to meet both operating
requirements and distributions to limited partners.
The Partnership expects to make future real estate investments, directly or
through investments in joint ventures, from limited partners' capital
contributions. As of March 31, 2000, the Partnership was holding $73,604
available for investment in properties.
9
<PAGE>
Property Operations
- -------------------
As of March 31, 2000, the Partnership owned interests in the following
operational properties
The TCI Building/Fund VIII - IX Joint Venture
- ---------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $113,794 $113,794
Interest income 8,840 8,921
-------- --------
122,634 122,715
-------- --------
Expenses:
Depreciation 41,648 41,648
Management & leasing expenses 4,300 4,300
Other operating expenses 4,222 4,132
-------- --------
50,170 50,080
-------- --------
Net income $ 72,464 $ 72,635
======== ========
Occupied % 100% 100%
Partnership's Ownership % 45.2% 45.2%
Cash Distribution to Partnership $ 48,738 $ 48,815
Net income allocated to the
Partnership $ 32,756 $ 32,833
</TABLE>
Rental income, net income and cash distributions are stable for 2000, as
compared to 1999, due to the stable occupancy rate.
10
<PAGE>
The Matsushita Building/Fund VIII - IX Joint Venture
- ----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $164,379 $164,379
-------- --------
Expenses:
Depreciation 53,918 53,918
Management & leasing expenses 0 6,313
Other operating expenses (9,270) 4,043
-------- --------
44,648 64,274
-------- --------
Net income $119,731 $100,105
======== ========
Occupied % 100% 100%
Partnership's Ownership % 45.2% 45.2%
Cash Distribution to Partnership $ 86,542 $ 75,184
Net income allocated to the
Partnership $ 54,122 $ 45,251
</TABLE>
Matsushita Avionics and the Fund VIII - Fu nd IX Joint Venture entered into a
lease guaranty termination agreement dated February 18, 1999. Matsushita
Avionics vacated its current space in January 2000 and was relieved of any of
its obligations under the existing lease on the commencement date of the new
Matsushita lease in January 2000. In consideration for the Fund VIII - Fund IX
Joint Venture releasing Matsushita Avionics from its obligations under the
existing lease and thereby allowing Wells Operating Partnership, L.P. ("Wells
OP"), to enter into the Matsushita lease with Matsushita Avionics, Wells OP
entered into a rental income guaranty agreement dated as of February 18, 1999,
whereby Wells OP guaranteed the Fund VIII - Fund IX Joint Venture that it will
receive rental income on the existing building at least equal to the rent and
building expenses over the remaining term of the Matsushita lease.
Operating expenses are negative due to actual expenses being lower than Wells OP
operating expense reimbursements in 2000. Management and leasing expense will
not be paid until the building is re-leased.
11
<PAGE>
The Cirrus Logic Building/Fund VIII - IX Joint Venture
- ------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $184,539 $184,539
-------- --------
Expenses:
Depreciation 72,765 72,765
Management & leasing expenses 10,314 8,839
Other operating expenses (299) 5,610
-------- --------
82,780 87,214
-------- --------
Net income $101,759 $ 97,325
======== ========
Occupied % 100% 100%
Partnership's Ownership 45.2% 45.2%
Cash distribution to Partnership $ 71,829 $ 69,825
Net income allocated to the
Partnership $ 45,998 $ 43,994
</TABLE>
Net income remains relatively stable, while expenses have decreased and
distributions have increased due primarily to increased common area maintenance
billings to the tenant. Tenants are billed an estimated amount for common area
maintenance, which is then reconciled the following year and the difference
billed to the tenant.
12
<PAGE>
The US Cellular One Building/Fund VIII - IX Joint Venture
- ---------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $320,519 $320,519
-------- --------
Expenses:
Depreciation 150,414 150,378
Management & leasing expenses 34,498 35,187
Other operating expenses (12,716) 4,925
-------- --------
172,196 190,490
-------- --------
Net income $148,323 $130,029
======== ========
Occupied % 100% 100%
Partnership's Ownership % 45.2% 45.2%
Cash Distribution to Partnership $132,572 $123,448
Net income allocated to the
Partnership $ 67,047 $ 58,777
</TABLE>
Net income increased in 2000, as compared to 1999, due to an increase in CAM
reimbursement billed in 2000 to the tenants. Tenants are billed an estimated
amount for common area maintenance which is then reconciled the following year
and the difference billed to the tenant.
13
<PAGE>
The ABB Building/Fund IX-X-XI-REIT Joint Venture
- ------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $315,165 $260,092
Interest income 17,728 15,060
-------- --------
332,893 275,152
-------- --------
Expenses:
Depreciation 98,454 134,100
Management & leasing expenses 25,253 21,386
Other operating expenses (6,063) (11,607)
-------- --------
117,644 143,879
-------- --------
Net income $215,249 $131,273
======== ========
Occupied % 100% 98%
Partnership's Ownership % 39.2% 38.9%
Cash distribution to Partnership $121,510 $100,085
Net income allocated to the
Partnership $ 84,368 $ 51,949
</TABLE>
Net income increased in 2000, over 1999, due primarily to the increased
occupancy level of the property. Total expenses decreased due to a decrease in
depreciation expense. Other operating expenses are negative due to an offset of
tenant reimbursements in operating costs, as well as management and leasing fee
reimbursements. Tenants are billed an estimated amount for the current year
common area maintenance which is then reconciled the following year and the
difference billed to the tenant. Cash distributions increased in 2000 over 1999
due to a combination of increased rental income and decreased expenses. The
Partnership's ownership percentage increased due to the contribution of
additional cash fundings to the IX-X-XI-REIT Joint Venture in the first quarter
of 2000.
It is currently anticipated that the total cost to complete the necessary tenant
improvements, estimated to be approximately $50,000, will be contributed by Fund
X. this tenant improvement relates to the 23,999 rentable square feet of
additional space leased by ABB after a former tenant, the Associates Housing
Finance, vacated the space.
14
<PAGE>
The Ohmeda Building/Fund IX-X-XI-REIT Joint Venture
- ---------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $256,829 $256,829
-------- --------
Expenses:
Depreciation 81,576 81,576
Management & leasing expenses 17,001 11,618
Other operating expenses, net of
reimbursements 27,594 363
-------- --------
126,171 93,557
-------- --------
Net income $130,658 $163,272
======== ========
Occupied % 100% 100%
Partnership's Ownership % 39.2% 38.9%
Cash distribution to Partnership $ 80,953 $ 94,648
Net income allocated to the
Partnership $ 51,213 $ 64,620
</TABLE>
Net income decreased in 2000, as compared to 1999, due to an overall increase in
expenses. Operating expenses increased significantly due to the rise in real
estate taxes, which stemmed from the revaluation of the property by Boulder
County authorities in 1999.
Cash distributions have decreased largely because of the decrease in net income.
The Partnership's ownership percentage increased due to additional fundings to
the IX-X-XI-REIT Joint Venture.
15
<PAGE>
The 360 Interlocken Building/Fund IX-X-XI-REIT Joint Venture
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $206,189 $206,522
-------- --------
Expenses:
Depreciation 71,670 71,670
Management & leasing expenses 20,907 17,864
Other operating expenses, net of
reimbursements (16,920) (2,250)
-------- --------
75,657 87,284
-------- --------
Net income $130,532 $119,238
======== ========
Occupied % 100% 100%
Partnership's Ownership % 39.2% 38.9%
Cash distribution to Partnership $ 79,784 $ 74,879
Net income allocated to the
Partnership $ 51,162 $ 47,107
</TABLE>
Net income increased in 2000, as compared to 1999, due to an increase in CAM
reimbursement billed in 2000 to the tenants. Other operating expenses are
negative due to an offset of tenant reimbursements in operating costs, as well
as management and leasing fee reimbursement. Tenants are billed an estimated
amount for current year common area maintenance which is then reconciled the
following year and the difference billed to the tenants.
Cash distributions and net income allocated to the Partnership for the quarter
increased in 2000 over 1999, due to an increase in net income . The
Partnership's ownership interest in the Fund IX-X-XI-REIT Joint Venture
increased due to additional fundings by the Partnership to the Joint Venture.
16
<PAGE>
The Lucent Technologies Building/Fund IX-X-XI-REIT Joint Venture
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $145,752 $145,752
-------- --------
Expenses:
Depreciation 45,801 45,801
Management & leasing expenses 5,370 5,370
Other operating expenses 3,481 3,014
-------- --------
54,652 54,185
-------- --------
Net income $ 91,100 $ 91,567
======== ========
Occupied % 100% 100%
Partnership's Ownership % 39.2% 38.9%
Cash distribution to Partnership $ 49,537 $ 49,822
Net income allocated to the
Partnership $ 35,707 $ 36,251
</TABLE>
Rental income, net income and distributions remained relatively stable as
compared to 1999, due to the stable occupancy rate. The Partnership's ownership
interest in the Fund IX-X-XI-REIT Joint Venture increased due to additional
fundings by the Partnership to the Joint Venture.
17
<PAGE>
The Iomega Building/Fund IX-X-XI-REIT Joint Venture
- ---------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 2000 March 31, 1999
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $168,250 $123,873
-------- --------
Expenses:
Depreciation 55,062 48,495
Management & leasing expenses 7,280 5,603
Other operating expenses 5,148 (1,713)
-------- --------
67,490 52,385
-------- --------
Net income $100,760 $ 71,488
======== ========
Occupied % 100% 100%
Partnership's Ownership % 39.2% 38.9%
Cash distribution to Partnership $ 59,180 $ 45,962
Net income allocated to the Partnership $ 39,494 $ 28,304
</TABLE>
Rental income increased in 2000, as compared to 1999, due to the completion of
the parking lot complex in the second quarter of 1999. Total expenses increased
in 2000, over 1999, due to an increase in depreciation and real estate tax
expenses relating to the new parking lot.
Cash distributions increased in 2000, over 1999, due primarily to the increase
in net income. The Partnership's ownership interest in the Fund IX-X-XI-REIT
Joint Venture increased due to additional funding by the Partnership to the
Joint Venture.
18
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6 (b). No reports were filed during the first quarter of 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
WELLS REAL ESTATE FUND IX, L.P.
(Registrant)
Dated: May 11, 2000 By: /s/ Leo F. Wells, III
---------------------
Leo F. Wells, III, as Individual
General Partner and as President,
Sole Director and Chief Financial
Officer of Wells Capital, Inc., the
General Partner of Wells Partners, L.P.
19
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 51,940
<SECURITIES> 26,974,263
<RECEIVABLES> 730,645
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
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0
0
<COMMON> 0
<OTHER-SE> 27,081,480
<TOTAL-LIABILITY-AND-EQUITY> 27,760,569
<SALES> 0
<TOTAL-REVENUES> 461,867
<CGS> 0
<TOTAL-COSTS> 24,275
<OTHER-EXPENSES> 0
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<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 437,592
<INCOME-TAX> 437,592
<INCOME-CONTINUING> 437,592
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 437,592
<EPS-BASIC> .24
<EPS-DILUTED> 0
</TABLE>
