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 June 30, 2004
/___/ Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934
for the transition period from ______________ to ________________.
Commission File Number 2-96364
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 June 30, 2004 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 June 30, 2004.
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 June 30, 2004.
(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: July 31, 2004 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: July 31, 2004 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
July 31, 2004
QUARTERLY REPORT TO THE LIMITED PARTNERS
OF DSI REALTY INCOME FUND IX
DEAR LIMITED PARTNERS:
We are pleased to enclose the Partnership's unaudited consolidated financial
statements for the period ended June 30, 2004. 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 June 30, 2004 and 2003, total revenues
decreased 9.6% from $714,842 to $646,417 and total expenses increased 7.1%
from $447,566 to $479,358 and other income increased from $111 to $130.
Minority interest in income of real estate joint venture decreased 13.4%
from $31,505 to $27,284. As a result, net income decreased 40.7% from
$235,882 to $139,905 for the three-month period ended June 30, 2004, as
compared to the same period in 2003. Rental revenue decreased as a result
of lower occupancy rates. Occupancy levels for the Partnership's six mini-
storage facilities averaged 73.8% for the three-month period ended June 30,
2004 as compared to 79.3% for the same period in 2003. The Partnership is
continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities. Operating expenses increased approximately
$24,600 (6.5%) due primarily to an increase in advertising, maintenance and
repair and office supplies expenses, partially offset by a decrease property
management fee expense. Property management fees, which are based on rental
revenue, decreased as a result of the decrease in rental revenue. General
and administrative expenses increased approximately $7,200 (10.6%) primarily
as a result of an increase in legal and professional expense. Minority
interest in income of real estate joint venture decreased as a result of
lower rental revenue at that facility.
For the six-months period ended June 30, 2004, and 2003, total revenues
decreased 8.6% from $1,478,155 to $1,350,449 and total expenses increased
3.0% from $896,586 to $923,068 and other income increased from $247 to $260.
Minority interest in income of real estate joint venture decreased 15.0% from
$69,689 to $59,225. As a result, net income decreased 28.1% from $512,127 to
$368,416 for the six-month period ended June 30, 2004, as compared to the
same period in 2003. Rental revenue decreased as a result of lower occupancy
rates. Operating expenses increased approximately $24,800 (3.3%) due primarily
to increases in advertising, maintenance and repair and office supplies,
partially offset by decreases in property management fee medical insurance
expenses. General and administrative expenses remained relatively constant.
Minority interest in income of real estate joint venture decreased as dis-
cussed above.
The General Partners plan to continue their policy of funding improvements
and maintenance of Partnership properties with cash generated from
operations. The Partnership's resources appear to be adequate to meet
its needs. The General Partners anticipate distributions to the 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)
CONSOLIDATED BALANCE SHEETS(UNAUDITED)
JUNE 30, 2004 AND DECEMBER 31, 2003
June 30, December 31,
2004 2003
ASSETS
CASH AND CASH EQUIVALENTS $ 504,132 $ 732,355
PROPERTY, NET 3,666,998 3,876,070
OTHER ASSETS 124,302 105,178
TOTAL $4,295,432 $4,713,603
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 593,183 $ 721,081
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 181,096 180,971
PARTNERS' EQUITY (DEFICIT):
General Partners (102,229) (99,325)
Limited Partners 3,623,382 3,910,876
Total partners' equity 3,521,153 3,811,551
TOTAL $4,295,432 $4,713,603
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2004 AND 2003
June 30, June 30,
2004 2003
REVENUES:
Rental $ 646,417 $ 714,842
EXPENSES:
Operating 404,224 379,640
General and administrative 75,134 67,926
Total expenses 479,358 447,566
OPERATING INCOME 167,059 267,276
OTHER INCOME
Interest 130 111
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 167,189 267,387
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (27,284) (31,505)
NET INCOME $ 139,905 $ 235,882
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 138,506 $ 233,523
General partners 1,399 2,359
TOTAL $ 139,905 $ 235,882
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 4.51 $ 7.61
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
June 30, June 30,
2004 2003
REVENUES
Rental $1,350,449 $1,478,155
EXPENSES:
Operating 777,389 752,633
General and admininstrative 145,679 143,953
Total expenses 923,068 896,586
OPERATING INCOME 427,381 581,569
OTHER INCOME
Interest 260 247
INTEREST BEFORE MINORITY
INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE 427,641 581,816
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (59,225) (69,689)
NET INCOME $ 368,416 $ 512,127
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 364,732 507,006
General Partners 3,684 5,121
TOTAL $ 368,416 $ 512,127
NET INCOME PER LIMITED
PARTNERSHIP UNIT 11.88 16.52
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to consolidated financial statements (unaudited).
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2004
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2004 ($99,325) $3,910,876 $3,811,551
NET INCOME 3,684 364,732 368,416
DISTRIBUTIONS (6,588) (652,226) (658,814)
BALANCE AT JUNE 30, 2004 ($102,229) $3,623,382 $3,521,153
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
June 30, June 30,
2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 368,416 $ 512,127
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 209,072 209,072
Minority interest in income
real estate joint venture 59,225 69,689
Changes in assets and
liabilities:
Increase in other assets (19,124) (23,319)
(Decrease)increase in liabilities (127,898) 41,542
Net cash provided by
operating activities 489,691 809,111
CASH FLOWS FROM INVESTING -
Additions to property (6,500)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (658,814) (620,060)
Distributions paid to minority
interest in real estate
joint venture (59,100) (64,200)
Net cash used in
financing activities (717,914) (684,260)
NET (DECREASE)INCREASE IN CASH AND
CASH EQUIVALENTS (228,223) 118,351
CASH AND CASH EQUIVALENTS:
At beginning of period 732,355 631,709
At end of period $ 504,132 $ 750,060
See accompanying notes to consolidated 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 June 30, 2004,
and for the periods ended June 30, 2004 and 2003 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 June 30, 2004, the total cost and
accumulated depreciation of the mini-storage facilities are as follows:
Land $ 2,729,790
Buildings and equipment 11,069,318
Total 13,799,108
Less: Accumulated Depreciation (10,132,110)
Property - Net $ 3,666,998
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.
4. CONTROLS AND PROCEDURES
Within 90 days prior to the date this report, the Partnerhip evaluated the
effectiveness of its disclosure controls and procedures. This evaluation was
performed by the Partnership's Controller with the assistance of the Partner-
ship's President and Chief Executive Officer. These disclosure controls and
procedures are designed that the information required to be disclosed by the
Partnership in its periodic reports filed with the Securities and Exchange
Commission (the Commission) is recorded, processed, summarized and reported
within the time periods specified by the Commission's rules and forms, and
that the information is communicated to the certifying officers on a timely
basis. Based on this evaluation, the Partnership concluded that its dis-
closure controls and procedures were effective. There have been no signif-
icant changes in the Partnership's internal controls or in other factors that
could significantly affect the internal controls subsequent to the date of
their evaluation.
CERTIFICATIONS
I, Robert J. Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund IX;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period cover-
ed by this quarterly report.
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its con-
solidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effec-
tiveness of the disclosure controls and procedures based on our evalu-
ation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors:
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to re-
cord, process, summarize and report financial data and have identified
for the registrant's auditors any material weaknesses in internal
controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's in-
ternal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls sub-
sequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: July 31, 2004
Robert J. Conway
Chief Executive Officer
CERTIFICATIONS
I, Richard P. Conway, certify that:
1. I have reviewed this quarterly report on Form 10-Q of DSI Realty Income
Fund IX;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period cover-
ed by this quarterly report.
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its con-
solidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effec-
tiveness of the disclosure controls and procedures based on our evalu-
ation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors:
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to re-
cord, process, summarize and report financial data and have identified
for the registrant's auditors any material weaknesses in internal
controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's in-
ternal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls sub-
sequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: July 31, 2004
Richard P. Conway
Vice President
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund IX (the
"Partnership") on Form 10-Q for the period ending June 30, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Robert J. Conway, Chief Executive Officer of the Partnership, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
Robert J. Conway
Chief Executive Officer
July 31, 2004
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of DSI Realty Income Fund IX (the
"Partnership") on Form 10-Q for the period ending June 30, 2004 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Richard P. Conway, Chief Executive Officer of the Partnership, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
Richard P. Conway
Vice President
July 31, 2004