-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rockz/W7i3iqe/hAUpZ5G1pcZ4YjZNntUocgRgkBD27pSE62E2ORESubeWSkfMbS hRlDrsb7Yaw5nS5nY8YyTA== 0000318835-99-000020.txt : 19991115 0000318835-99-000020.hdr.sgml : 19991115 ACCESSION NUMBER: 0000318835-99-000020 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DSI REALTY INCOME FUND IX CENTRAL INDEX KEY: 0000764586 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330103989 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-14186 FILM NUMBER: 99746653 BUSINESS ADDRESS: STREET 1: 3701 LONG BEACH BLVD CITY: LONG BEACH STATE: CA ZIP: 90807 BUSINESS PHONE: 2135957711 MAIL ADDRESS: STREET 1: 3710 LONG BEACH BLVD STREET 2: P O BOX 357 CITY: LONG BEACH STATE: CA ZIP: 90807 10-Q 1 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, 1999 /___/ 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, 1999, 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, 1999. 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, 1999. (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 29, 1999 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 29, 1999 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 EX-20 2 October 29, 1999 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, 1999. 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, 1999 and 1998, total revenues increased 1.0% from $720,419 to $727,838 and total expenses increased. 4.1% from $410,827 to $427,707. Minority interest in income of real estate joint venture increased 2.2% from $31,688 to $32,377. As a result, net income decreased 3.7% from $277,904 to $267,754 for the three-month period ended September 30, 1999, as compared to the same period in 1998. Rental revenue increased as a result of higher unit rental rates. Occupancy levels for the Partnership's six mini-storage facilities averaged 82.3% for the three month period ended September 30, 1999 as compared to 85.3% for the same period in 1998. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses increased approximately $11,500 (3.1%) due primarily to an increase in maintenance and repair expense, partially offset by a decrease in yellow pages advertising costs. General and administrative expenses increased approximately $5,300 (13.7%) as a decrease in legal and professional expense was offset by an increase in equipment and computer lease expenses and relatively insignificant increases in various other expense accounts. Minority interest in income of real estate joint venture remained relatively constant. For the nine-month periods ended September 30, 1999, and 1998, total revenues increased 5.4% from $2,060,579 to $2,171,466 and total expenses increased 9.2% from $1,259,492 to $1,375,270. Minority interest in income of real estate joint venture increased 4.9% from $83,512 to $87,602. As a result, net income decreased 1.3% from $717,575 to $708,594 for the nine-month period ended September 30, 1999, as compared to the same period in 1998. The increase in revenue is primarily due to the increase in rental income as a result of higher occupancy and unit rental rates, partially offset by a decrease in U-Haul commission income. Operating expenses increased approximately $113,300 (10.4%) due primarily to increases in maintenance and repair, salaries and wages, workers compensation, power and sweeping expenses and property management fees, partially offset by a decrease in yellow pages advertising costs. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. Power and sweeping expense increased as a result of the substantial snow removal costs associated with the blizzard that hit Illinois, where two of the Partnership's properties are located. General and administrative expenses increased approximately $2,400 (1.4%) for the same reasons as discussed above. Minority interest in income of real estate joint venture increased primarily as a result of higher rental revenue partially offset by an increase in maintenance and repair expense. 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. The Year 2000 issue refers to the inability of certain computer systems to recognize a date using "00" as the Year 2000. The Partnership has implemented a Year 2000 program, which has three phases: (1) identification; (2) remediation; and (3) testing and verification. The Partnership, as well as the property management company and the Partnership's warehouse facilities have completed those phases. Computer programs have been upgraded and tested to function properly with respect to the dates in the Year 2000 and thereafter. Year 2000 compliance costs are nominal and have been expensed in the regular course of business. The Partnership provides no assurance that third-party suppliers and customers will be compliant. Nevertheless, the Partnership does not believe that the Year 2000 issue will have a material advrse effect on its financial condition or results of operations. 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 EX-20 3 DSI REALTY INCOME FUND IX (A California Real Estate Limited Partnership) BALANCE SHEETS(UNAUDITED) SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
September 30, December 31, 1999 1998 ASSETS CASH AND CASH EQUIVALENTS $ 808,807 $ 633,690 PROPERTY, Net 5,804,350 6,245,163 OTHER ASSETS 58,614 45,536 TOTAL $6,671,771 $6,924,389 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 719,767 $ 727,790 MINORITY INTEREST IN REAL ESTATE JOINT VENTURE 239,492 262,591 PARTNERS' EQUITY(DEFICIT): General Partners (80,315) (78,101) Limited Partners 5,792,827 6,012,109 Total partners' equity 5,712,512 5,934,008 TOTAL $6,671,771 $6,924,389 See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
September 30, September 30, 1999 1998 REVENUES: Rental Income $ 725,364 $ 717,422 Interest 2,474 2,997 Total revenues 727,838 720,419 EXPENSES: Operating 383,475 371,937 General and administrative 44,232 38,890 Total expenses 427,707 410,827 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 300,131 309,592 EQUITY IN INCOME OF REAL ESTATE (32,377) (31,688) NET INCOME $ 267,754 $ 277,904 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 265,076 $ 275,125 General partners 2,678 2,779 TOTAL $ 267,754 $ 277,904 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 8.64 $ 8.96 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, 1999 AND 1998
September 30, September 30, 1999 1998 REVENUES: Rental Income $2,163,941 $2,052,087 Interest 7,525 8,492 Total Revenues 2,171,466 2,060,579 EXPENSES: Operating 1,199,359 1,086,030 General and Administrative 175,911 173,462 Total Expenses 1,375,270 1,259,492 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE 796,196 801,087 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE (87,602) (83,512) NET INCOME $708,594 $717,575 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners 701,508 710,399 General Partners 7,086 7,176 TOTAL 708,594 717,575 NET INCOME PER LIMITED PARTNERSHIP UNIT $22.86 $23.15 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, 1999 AND 1998
GENERAL LIMITED PARTNERS PARTNERS TOTAL EQUITY AT JANUARY 1, 1998 ($73,905) $6,427,489 $6,353,584 NET INCOME 7,176 710,399 717,575 DISTRIBUTIONS (9,300) (920,790) (930,090) EQUITY AT SEPTEMBER 30, 1998 ($76,029) $6,217,098 $6,141,069 BALANCE AT JANUARY 1, 1999 ($78,101) $6,012,109 $5,934,008 NET INCOME 7,086 701,508 708,594 DISTRIBUTIONS (9,300) (920,790) (930,000) BALANCE AT SEPTEMBER 30, 1999 ($80,315) $5,792,827 $5,712,512 See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
September 30, September 30, 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 708,594 $717,575 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 440,812 440,813 Loss on disposal of property and equipment 0 149 Minority interest in income of real estate joint venture 87,602 83,512 Changes in assets and liabilities: Increase in other assets (13,078) 7,361 (Decrease)increase in liabilities (8,023) 25,886 Net cash provided by operating activities 1,215,907 1,275,296 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (930,090) (930,090) Distributions paid to minority interest in real estate joint venture (110,700) (120,900) Net cash used in financing activities (1,040,790) (1,050,990) NET INCREASE IN CASH AND CASH EQUIVALENTS 175,117 224,306 CASH AND CASH EQUIVALENTS: At beginning of period 633,690 496,565 At end of period $ 808,807 $720,871 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 financial information as of September 30, 1999, and for the periods ended September 30, 1999, and 1998 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, 1999, the total cost and accumulated depreciation of the mini-storage facilities are as follows: Land $ 2,729,790 Buildings and improvements 10,975,901 Total 13,705,691 Less: Accumulated Depreciation ( 7,901,341) Property - Net $ 5,804,350
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. EX-27 4
5 3-MOS YEAR DEC-31-1999 DEC-31-1999 SEP-30-1999 DEC-31-1999 808807 0 0 0 0 0 0 0 0 0 0 0 13705691 0 7901341 0 6671771 0 0 0 0 0 0 0 0 0 0 0 0 0 6671771 0 2163941 0 2171466 0 0 0 0 0 0 0 0 0 0 0 708594 0 0 0 708594 0 0 0 0 0 0 0 708594 0 0 0 0 0
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