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, 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 2-96364
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, 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 June 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 June 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: July 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: July 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
July 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 consolidated financial
statements for the period ended June 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 June 30, 2001, and 2000, total
revenues increased 15.3% from $701,010 to $807,977 and total expenses
decreased 1.1% from $463,204 to $458,126 and other income decreased from
$1,778 to $974. Minority interest in income of real estate joint venture
increased 64.5% from $26,189 to $43,090. As a result, net income increased
44.2% from $213,395 to $307,735 for the three-month period ended June 30,
2001, as compared to the same period in 2000. Rental revenue increased as
a result of higher occupancy and unit rental rates. Occupancy levels for
the Partnership's six mii-storage facilities averaged 88.6% for the three-
month period ended June 30, 2001 as compared to 81.8% for the same period
in 2000. The Partnership is continuing its marketing efforts to attract
and keep new tenants in tis various mini-storage facilities. Operating
expenses decreased approximately $6,600 (1.7%) due primarily to decreases
in yellow pages advertising costs and depreciation, partially offset by
increases in maintenance and repair, property management fees and salaries
and wage expenses. The decrease in depreciation is the result of one of the
Partnership's properties being fully depreciated. Property management fees,
which are based on rental revenue, increased as a result of the increase in
rental revenue. 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 six month periods ended June 30, 2001, and 2000, total revenues
increased 13.1% from $1,401,739 to $1,586,061 and total expenses decreased
6.6% from $936,026 to $873,810 and other income decreased from $3,565 to
$2,182. Minority interest in income of real estate joint venture increased
48.1% from $58,380 to $86,484. As a result, net income increased 52.8% from
$410,898 to $627,949 for the six-month period ended June 30, 2001, as compared
to the same period in 2000. Rental revenue increased as a result of hiher
occupancy and unit rental rates. Operating expenses decreased approximately
$55,100 (6.9%) due primarily to decreases in yellow pages advertising costs,
legal and professional, workers compensation insurance and depreciation
expenses, partially offset by increases in property management fees, salaries
and wage and power and sweeping expenses. The increase in property management
fees was discussed above. 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
decreased approximately $7,100 (5.1%) primarily as a result of a decrease in
equipment and computer lease expenses. The increase in minority interest in
income of real estate joint venture was discussed 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, 2001 AND DECEMBER 31, 2000
June 30, December 31,
2001 2000
ASSETS
CASH AND CASH EQUIVALENTS $ 685,034 $ 509,410
PROPERTY, Net 4,928,766 5,137,840
OTHER ASSETS 70,924 61,924
TOTAL $5,684,724 $5,709,174
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 715,638 $ 754,061
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 182,858 176,774
PARTNERS' EQUITY (DEFICIT):
General Partners (89,579) (89,657)
Limited Partners 4,875,807 4,867,996
Total partners' equity 4,786,228 4,778,339
TOTAL $5,684,724 $5,709,174
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
June 30, June 30,
2001 2000
REVENUES:
Rental $ 807,977 $ 701,010
EXPENSES:
Operating 392,416 399,020
General and Administrative 65,710 64,184
Total expenses 458,126 463,204
OPERATING INCOME 349,851 237,806
OTHER INCOME
Interest 974 1,778
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 350,825 239,584
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (43,090) (26,189)
NET INCOME $ 307,735 $ 213,395
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $ 304,658 $ 211,261
General Partners 3,077 2,134
TOTAL $ 307,735 $ 213,395
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 9.93 $ 6.88
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, 2001 AND 2000
June 30, June 30,
2001 2000
REVENUES:
Rental $1,586,061 $1,401,739
EXPENSES:
Operating 741,047 796,195
General and administrative 132,763 139,831
Total expenses 873,810 936,026
OPERATING INCOME 712,251 465,713
OTHER INCOME
Interest 2,182 3,565
INCOME BEFORE MINORITY INTEREST IN
INCOME OF REAL ESTATE JOINT VENTURE 714,433 469,278
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE (86,484) (58,380)
NET INCOME $627,949 $410,898
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners $621,670 $406,789
General Partners 6,279 4,109
TOTAL $627,949 $410,898
NET INCOME PER LIMITED PARTNERSHIP UNIT $20.25 $13.25
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 (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2000 ($84,529) $5,375,693 $5,291,164
NET INCOME 4,109 406,789 410,898
DISTRIBUTIONS (6,200) (613,860) (620,060)
BALANCE AT JUNE 30, 2000 ($86,620) $5,168,622 $5,082,002
BALANCE AT JANUARY 1, 2001 ($89,657) $4,867,996 $4,778,339
NET INCOME 6,279 621,670 627,949
DISTRIBUTIONS (6,201) (613,859) (620,000)
BALANCE AT JUNE 30, 2001 ($89,579) $4,875,807 $4,786,228
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
June 30, June 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 627,949 $ 410,898
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 209,074 293,875
Minority interest in income
of real estate joint venture 86,484 58,380
Changes in assets and
liabilities:
Increase(decrease)in other assets (9,000) 2,199
Decrease in liabilities (38,423) (17,682)
Net cash provided by
operating activities 876,084 747,670
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (620,060) (620,060)
Distributions paid to minority
interest in real estate
joint venture (80,400) (74,400)
Net cash used in
financing activities (700,460) (697,460)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 175,624 50,210
CASH AND CASH EQUIVALENTS:
At beginning of period 509,410 503,249
At end of period $ 685,034 $ 553,459
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, 2001
and for the periods ended June 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 June 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 ( 8,824,967)
Property - Net $ 4,928,766
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.