10-Q 1 dsiix-301.txt 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, 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 March 31, 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 March 31, 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 March 31, 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: April 27, 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: April 27, 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 April 27, 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 March 31, 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 March 31, 2001 and 2000, total revenues increased 11.0% from $700,729 to $778,084, total expenses decreased 12.1% from $472,822 to $415,684, other income decreased from $1,785 to $1,208 and minority interest in income of real estate joint venture increased 34.8% from $32,189 to $43,394. As a result, net income increased 62.1% from $197,503 to $320,214 for the three-month period ended March 31, 2001, as compared to the same period in 2000. The increase in revenue can be attributed to an increase in rental income due to higher occupancy levels. Occupancy levels for the Partnership's six mini-storage facilities averaged 85.8% for the three month period ended March 31, 2001 as compared to 79.4% 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 by approximately $48,500 (12.2%) primarily as a result of decreases in depreciation, yellow pages advertising costs, maintenance and repair and workers compensation insurance expenses, partially offset by increases in property management fees, salaries and wages and power and sweeping 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. Power and sweeping expenses increased as a result of above normal snow removal costs associated with heavy snow falls in areas of Illinois and Michigan where Partnership facilities are located. General and administrative expenses decreased approximately $8,600 (11.4%) primarily as a result of decreases in legal and professional and equipment and computer lease expenses. 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, 2001 AND DECEMBER 31, 2000
March 31, December 31, 2001 2000 ASSETS CASH AND CASH EQUIVALENTS $ 648,139 $ 509,410 PROPERTY, NET 5,033,303 5,137,840 OTHER ASSETS 61,924 61,924 TOTAL $5,743,366 $5,709,174 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 774,875 $ 754,061 MINORITY INTEREST IN REAL ESTATE JOINT VENTURE 179,968 176,774 PARTNERS' EQUITY (DEFICIT): General Partners (89,555) (89,657) Limited Partners 4,878,078 4,867,996 Total partners' equity 4,788,523 4,778,339 TOTAL $5,743,366 $5,709,174 See accompanying notes to consolidated financial statements(unaudited). CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000 March 31, March 31, 2001 2000 REVENUES: Rental $ 778,084 $ 700,729 EXPENSES: Operating 348,631 397,175 General and administrative 67,053 75,647 Total expenses 415,684 472,822 OPERATING INCOME 362,400 227,907 OTHER INCOME Interest 1,208 1,785 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE 363,608 229,692 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE (43,394) (32,189) NET INCOME $ 320,214 $ 197,503 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 317,012 $ 195,528 General partners 3,202 1,975 TOTAL $ 320,214 $ 197,503 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 10.33 $ 6.37 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, 2001 AND 2000
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 2000 ($84,529) $5,375,693 $5,291,164 NET INCOME 1,975 195,528 197,503 DISTRIBUTIONS (3,100) (306,930) (310,030) BALANCE AT MARCH 31, 2000 ($85,654) $5,264,291 $5,178,637 BALANCE AT JANUARY 1, 2001 ($89,657) $4,867,996 $4,778,339 NET INCOME 3,202 317,012 320,214 DISTRIBUTIONS (3,100) (306,930) (310,030) BALANCE AT MARCH 31, 2001 ($89,555) $4,878,078 $4,788,523 See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
March 31, March 31, 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 320,214 $ 197,503 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 104,537 146,938 Minority interest in income real estate joint venture 43,394 32,189 Changes in assets and liabilities: Increase in other assets 0 (9,248) Increase(decrease)in liabilities 20,814 (2,423) Net cash provided by operating activities 488,959 364,959 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (310,030) (310,030) Distributions paid to minority interest in real estate joint venture (40,200) (40,800) Net cash used in financing activities (350,230) (350,830) NET INCREASE IN CASH AND CASH EQUIVALENTS 138,729 14,129 CASH AND CASH EQUIVALENTS: At beginning of period 509,410 503,249 At end of period $ 648,139 $ 517,378 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, 2001 and for the periods ended March 31, 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 March 31, 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 ( 8,720,430) Property - Net $ 5,033,303
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.