-----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, PYfO+sG5Kw5my26S8uWcgsX3JKRmF2PqCKiWcIbejWpxmlDhzWqyMXoSmsWcX2JT HR1CxskHiEy4oxEJZEhUnQ== 0000719581-99-000015.txt : 19990817 0000719581-99-000015.hdr.sgml : 19990817 ACCESSION NUMBER: 0000719581-99-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990816 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: 99693195 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 June 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 2-96364 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, 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 June 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 June 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: July 31, 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: July 31, 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 July 31, 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 consolidated financial statements for the period ended June 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 June 30, 1999, and 1998, total revenues increased 8.1% from $680,298 to $735,285 and total expenses increased 5.0% from $435,006 to $456,759. Minority interest in income of real estate joint venture increased 9.4% from $27,036 to $29,576. As a result, net income increased 14.1% from $218,256 to $248,950 for the three-month period ended June 30, 1999, as compared to the same period in 1998. Rental revenue increased as a result of higher unit rental rates as occupancy levels for the Partnership's six mini-storage facilities averaged 83.6% for the three month periods ended June 30, 1999 and 1998. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses increased approximately $22,100(5.9%) due primarily to increases in salaries and wage expense and property management fees. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue. General and adminstrative expenses decreased slightly as a decrease in legal and professional expense was offset by an increase in Colorado State taxes and relatively insignificant increases in various other expense accounts. Minority interest in income of real estate joint venture increased primarily as a result of higher rental revenue. For the six month periods ended June 30, 1999, and 1998, total revenues increased 7.7% from $1,340,160 to $1,443,628 and total expenses increased 11.7% from $848,665 to $947,563. Minority interest in income of real estate joint venture increased 6.6% from $51,824 to $55,225. As a result, net income increased slightly by 0.3% from $439,671 to $440,840 for the six-month period ended June 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 $101,800 (14.3%) due primarily to increases in maintenance and repair, salaries and wages, workers compensation, power and sweeping expenses and property manage- ment fees. The increase in property management fees was discussed above. 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 decreased approximately $2,900 (2.2%) 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 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. 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 programs, 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 adverse 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) CONSOLIDATED BALANCE SHEETS(UNAUDITED) JUNE 30, 1999 AND DECEMBER 31, 1998
June 30, December 31, 1999 1998 ASSETS CASH AND CASH EQUIVALENTS $ 695,648 $ 633,690 PROPERTY, Net 5,951,288 6,245,163 OTHER ASSETS 51,421 45,536 TOTAL $6,698,357 $6,924,389 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) LIABILITIES $ 688,453 $ 727,790 MINORITY INTEREST IN REAL ESTATE JOINT VENTURE 255,116 262,591 PARTNERS' EQUITY (DEFICIT): General Partners (79,893) (78,101) Limited Partners 5,834,681 6,012,109 Total partners' equity 5,754,788 5,934,008 TOTAL $6,698,357 $6,924,389 See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30, 1999 1998 REVENUES: Rental income $ 732,740 $ 677,137 Interest 2,545 3,161 Total revenues 735,285 680,298 EXPENSES: Operating 397,432 375,288 General and Administrative 59,327 59,718 Total expenses 456,759 435,006 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE 278,526 245,292 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE (29,576) (27,036) NET INCOME $ 248,950 $ 218,256 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $ 246,460 $ 216,073 General Partners 2,490 2,183 TOTAL $ 248,950 $ 218,256 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 8.03 $ 7.04 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, 1999 AND 1998
June 30, June 30, 1999 1998 REVENUES: Rental income $1,438,577 $1,334,665 Interest 5,051 5,495 Total revenue 1,443,628 1,340,160 EXPENSES: Operating 815,884 714,093 General and administrative 131,679 134,572 Total expenses 947,563 848,665 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE 496,065 491,495 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE (55,225) (51,824) NET INCOME $440,840 $439,671 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners $436,432 $435,274 General Partners 4,408 4,397 TOTAL $440,840 $439,671 NET INCOME PER LIMITED PARTNERSHIP UNIT $14.22 $14.18 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, 1999 AND 1998
GENERAL LIMITED PARTNERS PARTNERS TOTAL BALANCE AT JANUARY 1, 1998 ($73,905) $6,427,489 $6,353,584 NET INCOME 4,397 435,274 439,671 DISTRIBUTIONS (6,200) (613,860) (620,060) BALANCE AT JUNE 30, 1998 ($75,708) $6,248,903 $6,173,195 BALANCE AT JANUARY 1, 1999 ($78,101) $6,012,109 $5,934,008 NET INCOME 4,808 436,432 440,840 DISTRIBUTIONS (6,200) (613,860) (620,060) BALANCE AT JUNE 30, 1999 ($79,893) $5,834,681 $5,754,788 See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
June 30, June 30, 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 440,840 $ 439,671 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 293,875 293,875 Loss on disposal of Property and equipment 0 149 Minority interest in income of real estate joint venture 55,225 51,824 Changes in assets and liabilities: Increase in other assets (5,885) (21,868) Decrease(increase)in liabilities (39,337) 8,715 Net cash provided by operating activities 744,718 772,366 CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (620,060) (620,060) Distributions paid to minority interest in real estate joint venture (62,700) (73,800) Net cash used in financing activities (682,760) (693,860) NET INCREASE IN CASH AND CASH EQUIVALENTS 61,958 78,506 CASH AND CASH EQUIVALENTS: At beginning of period 633,690 496,565 At end of period $ 695,648 $ 575,071 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, 1999 and for the periods ended June 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 June 30, 1999, the total cost and accumulated depreciation of the mini-storage facilities are as follows: Land $ 2,729,790 Buildings and equipment 10,975,901 Total 13,705,691 Less: Accumulated Depreciation ( 7,754,403) Property - Net $ 5,951,288
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 JUN-30-1999 DEC-31-1999 695648 0 0 0 0 0 0 0 0 0 0 0 13705691 0 7754403 0 6698357 0 0 0 0 0 0 0 0 0 0 0 0 0 6698357 0 1438577 0 1443628 0 0 0 0 0 0 0 0 0 0 0 440840 0 0 0 440840 0 0 0 0 0 0 0 440840 0 0 0 0 0
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