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 March 31, 2002
/___/ 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 March 31, 2002 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 March 31, 2002.
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 March 31, 2002.
(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: April 26, 2002 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: April 26, 2002 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
April 26, 2002
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 March 31, 2002. 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 March 31, 2002 and 2001, total revenues
increased 3.0% from $778,084 to $801,209, total expenses increased 12.3%
from $415,684 to $466,958, other income decreased from $1,208 to $199 and
minority interest in income of real estate joint venture decreased 14.3% from
$43,394 to $37,188. As a result, net income decreased 7.2% from $320,214 to
$297,262 for the three-month period ended March 31, 2002, as compared to the
same period in 2001. The increase in revenue can be atributed to an increase
in rental income due to higher unit rental rates. Occupancy levels for the
Partnership's six mini-storage facilities averaged 83.9% for the three month
period ended March 31, 2002 as compared to 85.8% for the same period in 2001.
The Partnership is continuing its marketing efforts to attract and keep new
tenants in its various mini-storage facilities. Operating expenses increased
approximately $47,300 (13.6%) primarily as a result of increases in legal
and professional, maintenance and repair, office supplies, salaries and wages,
travel and workers compensation insurance expenses, partially offset by a
decrease in power and sweeping expense. Power and sweeping expenses decreased
as the substantial snow removal costs, associated with heavy snowfalls in
areas of Illinois and Michigan where Partnership facilities are located, were
not incurred in the current period. General and administrative expenses in-
creased approximately $4,000 (6.0%) primarily as a result of an increase in
equipment and computer lease expense.
On April 5, 2002, the General Partners received a copy of a hostile tender
offer from MacKenzie Patterson, Inc. and associated corporations and limited
partnerships to purchase all of the units in the Partnership. The General
Partners have determined that the hostile tender offer is not in the best
interests of the Limited Partners, that the tender offer is grossly inadequate
given the performance history of the Limited Partnership and the inherent
value of the units, and recommend that the Limited Partners reject the hostile
tender offer and not tender their units pursuant therein.
The General Partners plan to continue their policy of funding the continuing
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)
MARCH 31, 2002 AND DECEMBER 31, 2001
March 31, December 31,
2002 2001
ASSETS
CASH AND CASH EQUIVALENTS $ 721,584 $ 633,503
PROPERTY, NET 4,637,927 4,745,825
OTHER ASSETS 93,384 93,384
TOTAL $5,452,895 $5,472,712
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 716,147 $ 724,084
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 182,548 181,660
PARTNERS' EQUITY (DEFICIT):
General Partners (91,898) (91,771)
Limited Partners 4,645,098 4,658,739
Total partners' equity 4,554,200 4,566,968
TOTAL $5,452,895 $5,472,712
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
March 31, March 31,
2002 2001
REVENUES:
Rental $ 801,209 $ 778,084
EXPENSES:
Operating 395,920 348,631
General and administrative 71,038 67,053
Total expenses 466,958 415,684
OPERATING INCOME 334,251 362,400
OTHER INCOME
Interest 199 1,208
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 334,450 363,608
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (37,188) (43,394)
NET INCOME $ 297,262 $ 320,214
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 294,289 $ 317,012
General partners 2,973 3,202
TOTAL $ 297,262 $ 320,214
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 9.59 $ 10.33
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 THREE MONTHS ENDED MARCH 31, 2002
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2002 ($91,771) $4,658,739 $4,566,968
NET INCOME 2,973 294,289 297,262
DISTRIBUTIONS (3,100) (306,930) (310,030)
BALANCE AT MARCH 31, 2002 ($91,898) $4,646,098 $4,554,200
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
March 31, March 31,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 297,262 $ 320,214
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 107,898 104,537
Minority interest in income
real estate joint venture 37,188 43,394
Changes in assets and
liabilities:
(Decrease)increase in liabilities (7,937) 20,814
Net cash provided by
operating activities 434,411 488,959
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (310,030) (310,030)
Distributions paid to minority
interest in real estate
joint venture (36,300) (40,200)
Net cash used in
financing activities (346,330) (350,230)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 88,081 138,729
CASH AND CASH EQUIVALENTS:
At beginning of period 633,503 509,410
At end of period $ 721,584 $ 648,139
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 March 31, 2002
and for the periods ended March 31, 2002, and 2001 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 March 31, 2002, the total cost and
accumulated depreciation of the mini-storage facilities are as follows:
Land $ 2,729,790
Buildings and equipment 11,052,387
Total 13,782,177
Less: Accumulated Depreciation ( 9,144,250)
Property - Net $ 4,637,927
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.