-----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, Jy7qXHAKUSdmZo+IO2DoGaiin8wPIMJlzQ7hrVpr64qRLs6z46+NBCP8c5sWkZ02 SVEb3AtyoTy1Bwfs46Zc4A== 0000764586-98-000002.txt : 19981118 0000764586-98-000002.hdr.sgml : 19981118 ACCESSION NUMBER: 0000764586-98-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 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: 98749465 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, 1998 /___/ 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, 1998, 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, 1998. 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, 1998. (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 31, 1998 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 31, 1998 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 31, 1998 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, 1998. 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, 1998 and 1997, total revenues increased 6.2% from $678,489 to $720,419 and total expenses decreased 1.7% from $417,871 to $410,827. Minority interest in income of real estate joint venture increased 28.8% from $24,611 to $31,688. As a result, net income increased 17.8% from $236,007 to $277,904 for the three-month period ended September 30, 1998, as compared to the same period in 1997. Rental revenue increased as a result of higher occupancy and unit rental rates. Occupancy levels for the Partnership's six mini-storage facilities averaged 86.7% for the three month period ended September 30, 1998, as compared to 85.9% for the same period in 1997. The Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities. Operating expenses decreased approximately $6,000 (1.6%) due primarily to a decrease in salaries and wages and yellow pages advertising costs, partially offset by increases in maintenance and repair expenses and property management fees. General and administrative expenses remained constant. Minority interest in income of real estate joint venture increased primarily as a result of higher rental revenue. For the nine-month periods ended September 30, 1998, and 1997, total revenues increased 4.5% from $1,971,737 to $2,060,579 and total expenses decreased 0.4% from $1,263,967 to $1,259,492. Minority interest in income of real estate joint venture increased 25.7% from $66,421 to $83,512. As a result, net income increased 11.9% from $641,349 to $717,575 for the nine-month period ended September 30, 1998, as compared to the same period in 1997. The increase in revenue is primarily due to the increase in rental income as a result of higher unit rental rates. Operating expenses decreased approximately $9,300 (0.9%) due primarily to decreases in yellow pages advertising costs and salaries and wages, partially offset by an increase in real estate tax expense, maintenance and repair expense and property management fees. The decrease in salaries and wages is primarily due to a non-recurring termination payment to a facility manager in the prior year. General and administrative expenses increased approximately $4,800 (2.9%) as a result of relatively insignificant fluctuations in various expense accounts. Minority interest in income of real estate joint venture increased primarily as a result of higher rental revenue and lower yellow pages advertising costs and salaries and wage 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, 1998 AND DECEMBER 31, 1997
September 30, December 31, 1998 1997 ASSETS CASH AND CASH EQUIVALENTS $ 887,895 $ 496,565 PROPERTY 6,391,951 6,832,913 OTHER ASSETS 60,088 67,449 TOTAL $7,339,934 $7,396,927 LIABILITIES AND PARTNERS' EQUITY LIABILITIES $ 753,383 $ 727,497 MINORITY INTEREST IN REAL ESTATE JOINT VENTURE 278,458 315,846 PARTNERS' EQUITY: General Partners (74,359) (73,905) Limited Partners 6,382,452 6,427,489 Total partners' equity 6,308,093 6,353,584 TOTAL $7,339,934 $7,396,927 See accompanying notes to financial statements(unaudited).
STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 REVENUES: Rental Income $ 717,422 $ 674,803 Interest 2,997 3,686 Total revenues 720,419 678,489 EXPENSES: Operating Expenses 371,937 377,896 General and administrative 38,890 39,975 Total expenses 410,827 417,871 INCOME BEFORE EQUITY IN INCOME OF REAL ESTATE JOINT VENTURE 309,592 260,618 EQUITY IN INCOME OF REAL ESTATE (31,688) (24,611) NET INCOME $ 341,280 $ 285,229 AGGREGATE NET INCOME ALLOCATED TO: Limited partners $ 337,867 $ 282,377 General partners 3,413 2,852 TOTAL $ 341,280 $ 285,229 NET INCOME PER LIMITED PARTNERSHIP UNIT $ 11.01 $ 9.20 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, 1998 AND 1997
September 30, September 30, 1998 1997 REVENUES: Rental Income $2,052,087 $1,961,832 Interest 8,492 9,905 Total Revenues 2,060,579 1,971,737 EXPENSES: Operating Expenses 1,086,030 1,095,325 General and Administrative 173,462 168,642 Total Expenses 1,259,492 1,263,967 INCOME BEFORE MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE 801,087 707,770 MINORITY INTEREST IN INCOME OF REAL ESTATE JOINT VENTURE (83,512) (66,421) NET INCOME $884,599 $774,191 AGGREGATE NET INCOME ALLOCATED TO: Limited Partners 875,753 766,449 General Partners 8,846 7,742 TOTAL 884,599 774,191 NET INCOME PER LIMITED PARTNERSHIP UNIT $28.53 $24.97 LIMITED PARTNERSHIP UNITS USED IN PER UNIT CALCULATION 30,693 30,693 See accompanying notes to financial statements(unaudited).
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
GENERAL LIMITED PARTNERS PARTNERS TOTAL EQUITY AT JANUARY 1, 1997 ($ 68,439) $6,968,646 $6,900,207 NET INCOME 7,742 766,449 774,191 DISTRIBUTIONS (9,300) (920,790) (930,090) EQUITY AT SEPTEMBER 30, 1997 ($69,997) $6,814,305 $6,744,308 EQUITY AT JANUARY 1, 1998 ($73,905) $6,427,489 $6,353,584 NET INCOME 8,846 875,753 884,599 DISTRIBUTIONS (9,300) (920,790) (930,090) EQUITY AT SEPTEMBER 30, 1998 ($74,359) $6,382,452 $6,308,093 See accompanying notes to consolidated financial statements(unaudited).
STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
September 30, September 30, 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 884,599 $774,191 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 440,813 440,811 Loss on disposal of property and equipment 149 0 Distributions paid to minority interest in real estate joint venture in excess of earnings (37,388) (36,779) Changes in assets and liabilities: Decrease(Increase)in other assets 7,361 (44,624) Increase in liabilities 25,886 15,600 Net cash provided by operating activities 1,321,420 1,149,199 CASH FLOWS FROM INVESTING ACTIVITIES - Purchase of property and equipment 0 (13,349) CASH FLOWS FROM FINANCING ACTIVITIES - Distributions to partners (930,090) (930,090) NET INCREASE IN CASH AND CASH EQUIVALENTS 391,330 205,760 CASH AND CASH EQUIVALENTS: At beginning of period 496,565 549,578 At end of period $ 887,895 $755,338 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, 1998, and for the periods ended September 30, 1998, and 1997 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, 1998, the total cost and accumulated depreciation of the mini-storage facilities are as follows: Land $ 2,729,790 Buildings and improvements 10,975,750 Total 13,705,540 Less: Accumulated Depreciation ( 7,313,589) Property - Net $ 6,391,951
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-31-1998 DEC-31-1998 SEP-30-1998 DEC-31-1998 887895 0 0 0 0 0 0 0 0 0 0 0 13705540 0 7313589 0 7339934 0 0 0 0 0 0 0 0 0 0 0 0 0 7339934 0 2052087 0 2060579 0 0 0 0 0 0 0 0 0 0 0 884599 0 0 0 884599 0 0 0 0 0 0 0 884599 0 0 0 0 0
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