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, 2001
/___/ 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, 2001, 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, 2001.
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, 2001.
(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 31, 2001 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 31, 2001 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 31, 2001
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, 2001. 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, 2001 and 2000, total
revenues increased 2.9% from $782,414 to $805,170 and total expenses de-
creased 8.9% from $494,737 to $450,307 and other income decreased from $1,891
to $783. Minority interest in income of real estate joint venture increased
34.5% from $29,487 to $39,652. As a result, net income increased 21.5% from
$260,081 to $315,994 for the three-month period ended September 30, 2001, as
compared to the same period in 2000. Rental revenue increased as a result
of higher unit rental rates. Occupancy levels for the Partnership's six
mini-storage facilities averaged 87.8% for the three-month period ended
September 30, 2001 as compared to 87.7% for the same period in 2000. The
Partnership is continuing its marketing efforts to attract and keep new
tenants in its various mini-storage facilities. Operating expenses decreased
approximately $50,700 (11.2%) due primarily to decreases in advertising,
salaries and wages, security alarm services and depreciation expenses,
partially offset by an increase in maintenance and repair expense. The de-
crease in depreciation is the result of one of the Partnership's properties
being fully depreciated. General and administrative expenses remained
relatively constant. Minority interest in income of real estate joint venture
increased as a result of lower operating expenses at that facility, primarily
as a result of a decrease in depreciation expense due to the property
being fully depreciated as of December 31, 2000.
For the nine-month periods ended September 30, 2001, and 2000, total revenues
increased 9.5% from $2,184,154 to $2,391,231 and total expenses decreased
7.5% from $1,430,763 to $1,324,117 and other income decreased from $5,456
to $2,965. Minority interest in income of real estate joint venture in-
creased 43.6% from $87,868 to $126,136. As a result, net income increased
40.7% from $670,979 to $943,943 for the nine-month period ended September 30,
2001, as compared to the same period in 2000. Rental revenue increased as a
result of higher occupancy and unit rental rates. Operating expenses de-
creased approximately $105,900 (8.5%) due primarily to decreases in advertis-
ing, legal and professional,workers compensation insurance, security alarm
services and depreciation expenses, partially offset by increases in mainten-
ance and repair, property management fees, salaries and wage and power and
sweeping expenses. Property management fees, which are based on rental
revenue, increased as a result of the increase in rental revenue. Power and
sweeping expenses increased as a result of above normal snow removal costs
associated with heavy snowfalls in Illinois where Partnership properties are
located. General and administrative expenses remained relatively constant.
The increase in minority interest in income of real estate joint venture was
discussed above.
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.
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, 2001 AND DECEMBER 31, 2000
September 30, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $ 826,935 $ 509,410
PROPERTY, Net 4,824,230 5,137,840
OTHER ASSETS 70,924 61,924
TOTAL $5,722,089 $5,709,174
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 748,187 $ 754,061
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 181,710 176,774
PARTNERS' EQUITY(DEFICIT):
General Partners (89,519) (89,657)
Limited Partners 4,881,711 4,867,996
Total partners' equity 4,792,192 4,778,339
TOTAL $5,722,089 $5,709,174
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30,
2001 2000
REVENUES:
Rental $ 805,170 $ 782,414
EXPENSES:
Operating 403,852 454,557
General and administrative 46,455 40,180
Total expenses 450,307 494,737
OPERATING INCOME 354,863 287,677
OTHER INCOME
Interest 783 1,891
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 355,646 289,568
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (39,652) (29,487)
NET INCOME $ 315,994 $ 260,081
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 312,834 $ 257,480
General partners 3,160 2,601
TOTAL $ 315,994 $ 260,081
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 10.19 $ 8.39
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30,
2001 2000
REVENUES:
Rental $2,391,231 $2,184,154
EXPENSES:
Operating 1,144,899 1,250,752
General and Administrative 179,218 180,011
Total Expenses 1,324,117 1,430,763
OPERATING INCOME 1,067,114 753,391
OTHER INCOME
Interest 2,965 5,456
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 1,070,079 758,847
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE (126,136) (87,868)
NET INCOME $943,943 $670,979
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 943,504 664,269
General Partners 9,439 6,710
TOTAL 943,943 670,979
NET INCOME PER LIMITED
PARTNERSHIP UNIT $30.45 $21.64
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2000 ($84,529) $5,375,693 $5,291,164
NET INCOME 6,710 664,269 670,979
DISTRIBUTIONS (9,300) (920,790) (930,090)
BALANCE AT SEPTEMBER 30, 2000 ($87,119) $5,119,172 $5,032,053
BALANCE AT JANUARY 1, 2001 ($89,657) $4,867,996 $4,778,339
NET INCOME 9,439 934,504 943,943
DISTRIBUTIONS (9,301) (920,789) (930,090)
BALANCE AT SEPTEMBER 30, 2001 ($89,519) $4,881,711 $4,792,192
See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
September 30, September 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 943,943 $670,979
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 313,610 440,813
Loss on disposal of
property and equipment 656
Minority interest in income
of real estate joint venture 126,136 87,868
Changes in assets and
liabilities:
(Increase)decrease in other assets (9,000) 2,199
(Decrease)increase in liabilities (5,874) 50,153
Net cash provided by
operating activities 1,368,815 1,252,668
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (930,090) (930,090)
Distributions paid to
minority interest in
real estate joint venture (121,200) (129,300)
Net cash used in financing activities (1,051,290) (1,059,390)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 317,525 193,278
CASH AND CASH EQUIVALENTS:
At beginning of period 509,410 503,249
At end of period $ 826,935 $696,527
See accompanying notes to financial statements(unaudited).
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 September 30,
2001, and for the periods ended September 30, 2001, and 2000 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, 2001, the total cost and accumulated
depreciation of the mini-storage facilities are as follows:
Land $ 2,729,790
Buildings and equipment 11,023,943
Total 13,753,733
Less: Accumulated Depreciation ( 8,929,503)
Property - Net $ 4,824,230
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.