0000844048-12-000049.txt : 20120515 0000844048-12-000049.hdr.sgml : 20120515 20120515171756 ACCESSION NUMBER: 0000844048-12-000049 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20120331 FILED AS OF DATE: 20120515 DATE AS OF CHANGE: 20120515 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: 1934 Act SEC FILE NUMBER: 000-14186 FILM NUMBER: 12846045 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 dsi009q112.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities and Exchange Act of 1934

For the quarterly period ended March 31, 2012

[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ________________ to _______________

Commission File No. 2-96364.

DSI REALTY INCOME FUND IX
a California Limited Partnership

California   33-0103989
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)

6700 E. Pacific Coast Hwy., Long Beach, California 90803

(Address of principal executive offices)

Registrant’s telephone number, including area code (562) 493-8881

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceeding 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 [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer [ ] Accelerated filer [ ]  Non-accelerated filer [ ] Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

The issuer is a limited partnership. All 30,693 limited partnership units originally sold for $500.00 per unit. There is no trading market for the limited partnership units.

Certain statements contained in this discussion or elsewhere in this report may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words and phrases such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “designed to achieve”, variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future – including statements relating to rent and occupancy growth, general conditions in the geographic areas where we operate – are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict.


Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Many of the factors that may affect outcomes and results are beyond our ability to control.

 
 

PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

     
Consolidated Balance Sheets (Unaudited)    
  March 31, 2012 December 31, 2011
    (Audited)
ASSETS:    
    Cash & equivalents $531,521 $537,223
    Property, net 2,839,872 2,853,141
    Uncollected rental revenue 100,094 159,428
    Prepaid advertising 10,327 5,514
    Other assets 46,430 26,045
    TOTAL $3,528,244 $3,581,351
LIABILITIES AND PARTNERS' EQUITY    
    LIABILITIES:    
        Distribution due to partners $193,769 $193,769
        Incentive management fee payable 27,031 17,439
        Property management fee payable 10,680 10,208
        Deferred income 41,917 41,192
        Accrued expenses 22,948 38,287
        Other liabilities 120,192 147,440
        Total Liabilities 416,537 448,335
    PARTNERS' EQUITY:    
        General partners (108,264) (108,038)
        Limited partners 3,025,873 3,048,180
        Total Partners' Equity 2,917,606 2,940,142
        Noncontrolling interest in real estate joint venture 194,101 192,874
        Total Equity 3,111,707 3,133,016
    TOTAL $3,528,244 $3,581,351

The accompanying notes are an integral part of these unaudited consolidated financial statements. 

 
 

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
 

     
Consolidated Statements of Income (Unaudited) Three Months Ended
  March 31, 2012 March 31, 2011
     
REVENUES:    
    Self-storage rental income $551,476 $580,825
    Ancillary operating revenue 55,964 45,387
    Interest and other income 9 14
    TOTAL 607,449 626,226
EXPENSES:    
    Depreciation 13,269 3,623
    Operating 263,130 272,209
    General and administrative 94,877 117,208
    General partners' incentive management fee 17,439 20,927
    Property management fee 33,375 32,746
    TOTAL 422,090 446,713
NET INCOME $185,359 $179,513
LESS: net income attributable to the non-controlling interest (14,127) (17,074)
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP 171,232 162,439
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP ALLOCATED TO:    
    General partners 1,712 1,624
    Limited partners 169,520 160,815
    TOTAL $171,232 $162,439
     
Weighted average limited partnership units outstanding 30,693 30,693
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP PER LIMITED PARTNERSHIP UNIT $5.52 $5.24

The accompanying notes are an integral part of these unaudited consolidated financial statements. 


 
 

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

         

Consolidated Statements of Partners' Equity (Deficit) (Unaudited)

 

  General Partners Limited Partners Non-controlling Interest Total
         
         
BALANCE, December 31, 2011 (Audited) $(108,038) $3,048,180 $192,874 $3,133,016
Net Income Allocation 1,712 169,520 14,127 185,359
Distributions (1,938) (191,830) (12,900) (206,668)
BALANCE, March 31, 2012 $(108,264) $3,025,873 $194,101 $3,111,707
         
         
         

The accompanying notes are an integral part of these unaudited consolidated financial statements.


DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

     
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Three Months Ended
  March 31, 2012 March 31, 2011
     
CASH FLOWS FROM OPERATING ACTIVITIES:    
    Net income attributable to the Partnership $171,232 $162,439
    Adjustments to reconcile net income to net cash provided by operating activities:    
        Depreciation 13,269 3,623
        Net Income attributable to non-controlling interests 14,127 17,074
        Changes in assets and liabilities:    
            Other assets 34,136 1,590
            Incentive management fee payable to General Partners 9,592 10,464
            Property management fees payable 472 58
            Customer deposits and other liabilities (41,862) 4,142
    Net cash provided by operating activities 200,966 199,390
CASH FLOWS FROM INVESTING ACTIVITIES:    
    Additions to property 0 0
    Net cash used in investing activities 0 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
    Distributions to partners (193,768) (232,523)
    Distributions paid to non-controlling interests (12,900) (11,100)
    Net cash used in financing activities (206,668) (243,623)
    NET DECREASE IN CASH AND CASH EQUIVALENTS (5,702) (44,233)
    CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 537,223 703,774
    CASH AND CASH EQUIVALENTS AT END OF PERIOD $531,521 $659,541
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
    Cash paid for interest $0 $0
NON CASH INVESTING AND FINANCING ACTIVITIES:    
    Distributions due partners included in partners' equity $193,769 $232,523

The accompanying notes are an integral part of these unaudited consolidated financial statements. 

 
 

DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2012

1. GENERAL


DSI Realty Income Fund IX (the "Partnership") is a publicly-held limited partnership organized under the California Uniform Limited Partnership Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter referred to as "Agreement") dated March 6, 1985. The General Partners are DSI Properties, Inc., a California corporation and RJC Capital Management, LLC (“RJC”) and JWC Capital Management, LLC (“JWC”).

DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, Registrant sold thirty thousand six hundred ninety-three (30,693) units of limited partnership interests aggregating Fifteen Million Three Hundred Forty-Six Thousand Five Hundred Dollars ($15,346,500). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions) without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future.

The Partnership has acquired mini-storage facilities located in Monterey Park and Azusa, California; Everett, Washington; and Romeoville and Elgin, Illinois. The Partnership has also entered into a joint venture with DSI Realty Income Fund VIII through which the Partnership has a 70% interest in a mini-storage facility in Aurora, Colorado. A non-controlling interest in the real estate joint venture was recorded for the three-month period ended March 31, 2012 and 2011 in the amount of $14,127 and $17,074. The Partnership is a general partner in the joint venture. The facilities were acquired from Dahn Corporation ("Dahn"). Dahn is not affiliated with the Partnership. Dahn is affiliated with other partnerships in which DSI Properties, Inc., RJC and JWC are the general partners.

The accompanying unaudited interim consolidated financial statements have been prepared by the Partnership's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conjunction with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2011.


Significant Accounting Policies

The Partnership has adopted Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the three months ended March 31, 2012 and 2011 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of March 31, 2012 and December 31, 2011, accumulated other comprehensive income was $0.

ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. The Partnership considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

 

Recent Accounting Pronouncements

In May 2011, the FASB issued Accounting Standards Update 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The new guidance results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards. While many of the amendments to U.S. GAAP are not expected to have a significant effect on practice, the new guidance changes some fair value measurement principles and disclosure requirements. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. The adoption of the standard update does not have a significant impact on its financial position or results of operations.

2. PROPERTY

Properties owned by the Partnership are all mini-storage facilities. Depreciation is calculated using the straight-line method over the estimated useful life of 20 years. Property under capital leases is amortized over the lives of the respective leases. The total cost of property and accumulated depreciation at March 31, 2012 and December 31, 2011, were as follows:

  March 31, 2012 December 31, 2011
Land $ 2,729,790 $ 2,729,790
Buildings and improvements 11,289,984 11,185,008
Rental trucks under capital leases 210,138 210,138
Total 14,233,002 14,233,002
Less accumulated depreciation (11,393,130) (11,379,861)
Property, net $2,839,872 $2,853,141

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.

4. ALLOCATION OF PROFITS AND LOSSES AND GENERAL PARTNERS' INCENTIVE MANAGEMENT FEE

Under the Agreement of Limited Partnership, the general partners are to be allocated 1% of the net profits or losses from operations, and the limited partners are to be allocated the balance of the net profits or losses from operations in proportion to their limited partnership interests. The general partners are also entitled to receive a percentage, based on a predetermined formula, of any cash distribution from the sale, other disposition, or refinancing of the project.

In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership. The fee is to be paid in an amount equal to 9% per annum of the cash distributions to limited partners in the fund.

5. RELATED-PARTY TRANSACTIONS

The Partnership has entered into a management agreement with Dahn to operate its mini-storage facilities. The management agreement provides for a management fee equal to 5% of gross revenue from operations, which is defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreement is renewable annually. Dahn earned management fees equal to $33,375 and $32,746 for the three month periods ended March 31, 2012 and 2011, respectively. Amounts payable to Dahn at March 31, 2012 and December 31, 2011 were $10,680 and $10,208, respectively.

Beginning in July 2011, the General Partner, DSI Properties, Inc. performs all tax related work with respect to the Partnership. These services are paid monthly in the amount of $4,949. Tax fees paid to DSI Properties, Inc. for the three month period ended March 31, 2012 were $14,847.

6. SUBSEQUENT EVENTS

Events subsequent to March 31, 2012, have been evaluated through the date these unaudited interim consolidated financial statements were issued to determine whether they should be disclosed to keep the unaudited interim consolidated financial statements from being misleading. Management found no subsequent events that should be disclosed.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Critical Accounting Policies

Revenue recognition - Revenue is recognized using the accrual method based on contractual amounts provided for in the lease agreements, which approximates recognition on a straight-line basis. The term of the lease agreements is usually less than one year.

 

 

RESULTS OF OPERATIONS

2012 COMPARED TO 2011  

For the three-month periods ended March 31, 2012 and 2011, revenues decreased 3.0% to $607,449 from $626,226 and total expenses decreased 5.5% to $422,090 from $446,713 resulting in a increase in net income of 5.4% to $171,232 from $162,439. Rental revenues decreased primarily as a result of lower unit rental rates. Occupancy levels for the Partnership's mini-storage facilities averaged 62.7% for the three-month period ended March 31, 2012, compared to 61.8% for the same period in 2011. Operating expenses decreased $9,079 or 3.3% primarily due to decreases in repair and maintenance, and salary and wages expenses, partially offset by an increase in promotional advertising expense. General and administrative expenses decreased $22,331 or 19.1% primarily as a result of decreases in legal and professional and credit card fee expenses, partially offset by increases in postage and administration expenses.

The General Partners plan to continue their policy of funding the continuing improvement and maintenance of Partnership properties with cash generated from operations. In addition, the Partnership is continuing its marketing efforts to attract and keep new tenants in its various mini-storage facilities.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Partnership’s management, with the participation of the principal executive officer and principal financial officer of DSI Properties, Inc., its General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the principal executive officer and principal financial officer of the General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures were effective.  

Changes in Internal Control over Financial Reporting.

There have been no significant changes in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the reporting period that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Registrant is not a party to any material pending legal proceedings.

ITEM 1A. RISK FACTORS

Not required.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. (REMOVED AND RESERVED)

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

(a) Exhibits

31.1 Rule 13a-14(a)/15d-14(a) Certification: Principal Executive Officer
31.2 Rule 13a-14(a)/15d-14(a) Certification: Principal Financial Officer
32.1 Section 1350 Certification: Principal Executive Officer
32.2 Section 1350 Certification: Principal Financial Officer
101 The unaudited consolidated financial statements and footnotes from the Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 formatted in Extensible Business Reporting Language (XBRL): (i) Unaudited Consolidated Balance Sheets; (ii) Unaudited Consolidated Statements of Income; (iii) Unaudited Consolidated Statements of Stockholders’ Equity; (iv) Unaudited Consolidated Statements of Cash Flows; and (v) the Notes to Unaudited Consolidated Financial Statements, tagged as blocks of text.*

 

*Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


          DSI REALTY INCOME FUND IX,
          
a California Limited Partnership
         by: DSI Properties, Inc., a California Corporation, as General Partner

 

By: /s/ ROBERT J. CONWAY

Dated: May 15, 2012

ROBERT J. CONWAY, President
(Chief Executive Officer and Director)

 

By: /s/ RICHARD P. CONWAY

Dated: May 15, 2012

RICHARD P. CONWAY, Executive Vice President
(Chief Financial Officer and Director)

 
 

EXHIBIT 31.1
Rule 13a-14(a)/15d-14(a) Certification

I, Robert J. Conway, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DSI Realty Income Fund IX;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


/s/ ROBERT J. CONWAY



Robert J. Conway
President of DSI Properties, Inc.,
General Partner (chief executive officer)
May 15, 2012

 
 

EXHIBIT 31.2
Rule 13a-14(a)/15d-14(a) Certification


I, Richard P. Conway, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of DSI Realty Income Fund IX;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


/s/ RICHARD P. CONWAY

 


Richard P. Conway
Executive Vice President of DSI Properties, Inc.,
General Partner (chief financial officer)
May 15, 2012

 
 

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of DSI Realty Income Fund IX (the "Partnership") on Form 10-Q for the period ending March 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert J. Conway, President of DSI Properties, Inc., General Partner of the Partnership, and performing the functions of chief executive officer of the Partnership, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.


/s/ ROBERT J. CONWAY

 


Robert J. Conway
President of DSI Properties, Inc.,
General Partner (chief executive officer)
May 15, 2012

 
 

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of DSI Realty Income Fund IX (the "Partnership") on Form 10-Q for the period ending March 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard P. Conway, Senior Vice President of DSI Properties, Inc., General Partner of

the Partnership, and performing the functions of chief financial officer of the Partnership, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.


/s/ RICHARD P. CONWAY

 


Richard P. Conway
Executive Vice President of DSI Properties, Inc.,
General Partner (chief financial officer)
May 15, 2012

EX-101.PRE 2 dsi009-20120331_pre.xml XBRL PRESENTATION FILE EX-101.INS 3 dsi009-20120331.xml XBRL INSTANCE FILE 0000764586 2012-03-31 0000764586 2011-12-31 0000764586 2012-01-01 2012-03-31 0000764586 2011-01-01 2011-03-31 0000764586 2010-12-31 0000764586 2011-03-31 0000764586 us-gaap:GeneralPartnersCapitalAccount 2012-01-01 2012-03-31 0000764586 us-gaap:GeneralPartnersCapitalAccount 2011-12-31 0000764586 us-gaap:GeneralPartnersCapitalAccount 2012-03-31 0000764586 us-gaap:LimitedPartnersCapitalAccount 2012-01-01 2012-03-31 0000764586 us-gaap:LimitedPartnersCapitalAccount 2011-12-31 0000764586 us-gaap:LimitedPartnersCapitalAccount 2012-03-31 0000764586 us-gaap:NoncontrollingInterestMember 2012-01-01 2012-03-31 0000764586 us-gaap:NoncontrollingInterestMember 2011-12-31 0000764586 us-gaap:NoncontrollingInterestMember 2012-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares DSI Realty Income Fund IX 10-Q 2012-03-31 531521 537223 703774 659541 2839872 2853141 100094 159428 10327 5514 46430 26045 3528244 3581351 193769 193769 27031 17439 10680 10208 41917 41192 22948 38287 120192 147440 416537 448335 -108264 -108038 3025870 3048180 2917606 2940142 -108038 3048180 192874 194101 192874 3528244 3581351 551476 580825 55964 45387 9 14 607449 626226 13269 3623 263130 272209 94877 117208 17439 20927 422090 446713 185359 179513 1712 169520 17127 14127 17074 171232 162439 1712 1624 169520 160815 171232 162439 30693 30693 5.52 5.24 171232 162439 14127 17074 34136 1590 9592 10464 472 58 -41862 4142 200966 199390 0 0 0 0 193768 232523 12900 11100 -206668 -243623 -5702 -44233 0 0 193,769 232,523 0000764586 false --12-31 No No Yes Smaller Reporting Company 30693 Q1 2012 <p style="margin: 0; font: x-small Arial, Helvetica, Sans-Serif"></p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin: 0"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin: 0">DSI Realty Income Fund IX (the &#34;Partnership&#34;) is a publicly-held limited partnership organized under the California Uniform Limited Partnership Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter referred to as &#34;Agreement&#34;) dated March 6, 1985. The General Partners are DSI Properties, Inc., a California corporation and RJC Capital Management, LLC (&#147;RJC&#148;) and JWC Capital Management, LLC (&#147;JWC&#148;).<br /> <br /> DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, Registrant sold thirty thousand six hundred ninety-three (30,693) units of limited partnership interests aggregating Fifteen Million Three Hundred Forty-Six Thousand Five Hundred Dollars ($15,346,500). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions) without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future.</p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Partnership has acquired mini-storage facilities located in Monterey Park and Azusa, California; Everett, Washington; and Romeoville and Elgin, Illinois. The Partnership has also entered into a joint venture with DSI Realty Income Fund VIII through which the Partnership has a 70% interest in a mini-storage facility in Aurora, Colorado. A non-controlling interest in the real estate joint venture was recorded for the three-month period ended March 31, 2012 and 2011 in the amount of $14,127 and $17,074. The Partnership is a general partner in the joint venture. The facilities were acquired from Dahn Corporation (&#34;Dahn&#34;). Dahn is not affiliated with the Partnership. <font style="color: windowtext">Dahn is affiliated with other partnerships in which DSI Properties, Inc., RJC and JWC are the general partners.</font></p> <p style="margin: 0">&#160;</p> <p style="margin: 0">The accompanying unaudited interim consolidated financial statements have been prepared by the Partnership's management in accordance with accounting principles generally accepted in the United States of America (&#34;GAAP&#34;) and in conjunction with the rules and regulations of the Securities and Exchange Commission (&#34;SEC&#34;). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2011.<br style="mso-special-character: line-break" /> </p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin: 0"></p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin: 0"><b>Significant Accounting Policies</b></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Partnership has adopted <font style="color: windowtext">Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the three months ended March 31, 2012 and 2011 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of March 31, 2012 and December 31, 2011, accumulated other comprehensive income was $0.</font></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">ASC 825-10 (formerly SFAS 107, &#147;Disclosures about Fair Value of Financial Instruments&#148;) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. The Partnership considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.</p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">&#160;</p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="font: 12pt Tahoma, Helvetica, Sans-Serif; margin: 0"><font style="font-size: 10pt"><b>Recent Accounting Pronouncements</b></font></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin: 9pt 0 0; text-align: justify">In May 2011, the FASB issued Accounting Standards Update 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The new guidance results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards. While many of the amendments to U.S. GAAP are not expected to have a significant effect on practice, the new guidance changes some fair value measurement principles and disclosure requirements. This new guidance is effective for fiscal years and interim periods beginning after December&#160;15, 2011. The adoption of the standard update does not have a significant impact on its financial position or results of operations.</p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="margin: 0"></p> <p style="margin: 0; font: x-small Arial, Helvetica, Sans-Serif"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 12pt; margin-left: 0"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 12pt; margin-left: 0">Properties owned by the Partnership are all mini-storage facilities. Depreciation is calculated using the straight-line method over the estimated useful life of 20 years. Property under capital leases is amortized over the lives of the respective leases. The total cost of property and accumulated depreciation at March 31, 2012 and December 31, 2011, were as follows:</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Tahoma, Helvetica, Sans-Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 49%; padding: 5.25pt">&#160;</td> <td style="width: 26%; padding: 5.25pt; font-weight: bold; text-align: right">March 31, 2012</td> <td style="width: 25%; padding: 5.25pt; font-weight: bold; text-align: right">December 31, 2011</td></tr> <tr style="vertical-align: top"> <td style="padding: 5.25pt">Land</td> <td style="padding: 5.25pt; text-align: right">$ 2,729,790</td> <td style="padding: 5.25pt; text-align: right">$ 2,729,790</td></tr> <tr style="vertical-align: top"> <td style="padding: 5.25pt">Buildings and improvements</td> <td style="padding: 5.25pt; text-align: right">11,289,984</td> <td style="padding: 5.25pt; text-align: right">11,185,008</td></tr> <tr style="vertical-align: top"> <td style="padding: 5.25pt">Rental trucks under capital leases</td> <td style="padding: 5.25pt; text-align: right">210,138</td> <td style="padding: 5.25pt; text-align: right">210,138</td></tr> <tr style="vertical-align: top"> <td style="padding: 5.25pt; font-weight: bold">Total</td> <td style="padding: 5.25pt; font-weight: bold; text-decoration: underline; text-align: right">14,233,002</td> <td style="padding: 5.25pt; font-weight: bold; text-decoration: underline; text-align: right">14,233,002</td></tr> <tr style="vertical-align: top"> <td style="padding: 5.25pt">Less accumulated depreciation</td> <td style="padding: 5.25pt; text-align: right">(11,393,130)</td> <td style="padding: 5.25pt; text-align: right">(11,379,861)</td></tr> <tr style="vertical-align: top"> <td style="padding: 5.25pt; font-weight: bold">Property, net</td> <td style="padding: 5.25pt; font-weight: bold; text-decoration: underline; text-align: right">$2,839,872</td> <td style="padding: 5.25pt; font-weight: bold; text-decoration: underline; text-align: right">$2,853,141</td></tr> </table> <p style="margin: 0"></p> <p style="margin: 0; font: x-small Arial, Helvetica, Sans-Serif">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.<br style="mso-special-character: line-break" /> <br style="mso-special-character: line-break" /> </p> <p style="margin: 0; font: x-small Arial, Helvetica, Sans-Serif"></p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">Under the Agreement of Limited Partnership, the general partners are to be allocated 1% of the net profits or losses from operations, and the limited partners are to be allocated the balance of the net profits or losses from operations in proportion to their limited partnership interests. The general partners are also entitled to receive a percentage, based on a predetermined formula, of any cash distribution from the sale, other disposition, or refinancing of the project.</p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership. The fee is to be paid in an amount equal to 9% per annum of the cash distributions to limited partners in the fund.</p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="margin: 0"></p> <p style="margin: 0; font: x-small Arial, Helvetica, Sans-Serif"></p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">The Partnership has entered into a management agreement with Dahn to operate its mini-storage facilities. The management agreement provides for a management fee equal to 5% of gross revenue from operations, which is defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreement is renewable annually. Dahn earned management fees equal to $33,375 and $32,746 for the three month periods ended March 31, 2012 and 2011, respectively. Amounts payable to Dahn at March 31, 2012 and December 31, 2011 were $10,680 and $10,208, respectively.</p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">&#160;</p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">Beginning in July 2011, the General Partner, DSI Properties, Inc. performs all tax related work with respect to the Partnership. These services are paid monthly in the amount of $4,949. Tax fees paid to DSI Properties, Inc. for the three month period ended March 31, 2012 were $14,847.</p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="margin: 0"></p> <p style="margin: 0pt"></p> <p style="font: 10pt Tahoma, Halvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0"></p> <p style="font: 10pt Tahoma, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 0; margin-left: 0">Events subsequent to March 31, 2012, have been evaluated through the date these unaudited interim consolidated financial statements were issued to determine whether they should be disclosed to keep the unaudited interim consolidated financial statements from being misleading. 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Allocation of Profits and Losses
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Allocation of Profits and Losses

Under the Agreement of Limited Partnership, the general partners are to be allocated 1% of the net profits or losses from operations, and the limited partners are to be allocated the balance of the net profits or losses from operations in proportion to their limited partnership interests. The general partners are also entitled to receive a percentage, based on a predetermined formula, of any cash distribution from the sale, other disposition, or refinancing of the project.

In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership. The fee is to be paid in an amount equal to 9% per annum of the cash distributions to limited partners in the fund.

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Net Income Per Limited Partnership Unit
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
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.

XML 12 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (Unaudited) (USD $)
Mar. 31, 2012
Dec. 31, 2011
ASSETS:    
Cash & Equivalents $ 531,521 $ 537,223
Property Net 2,839,872 2,853,141
Uncollected Rental Revenue 100,094 159,428
Prepaid Advertising 10,327 5,514
Other Assets 46,430 26,045
TOTAL 3,528,244 3,581,351
LIABILITIES:    
Distribution due to Partners 193,769 193,769
Incentive Management Fee Liability 27,031 17,439
Property Management Fee Liability 10,680 10,208
Deferred Income 41,917 41,192
Accrued Expenses 22,948 38,287
Other Liabilities 120,192 147,440
Total Liabilities 416,537 448,335
PARTNERS' EQUITY:    
General Partners (108,264) (108,038)
Limited Partners 3,025,870 3,048,180
Total Partners' Equity 2,917,606 2,940,142
Noncontrolling Interest in Real Estate Joint Venture 194,101 192,874
Total Equity 3,111,707 3,133,016
TOTAL $ 3,528,244 $ 3,581,351
XML 13 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
General
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
General

DSI Realty Income Fund IX (the "Partnership") is a publicly-held limited partnership organized under the California Uniform Limited Partnership Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter referred to as "Agreement") dated March 6, 1985. The General Partners are DSI Properties, Inc., a California corporation and RJC Capital Management, LLC (“RJC”) and JWC Capital Management, LLC (“JWC”).

DSI Properties, Inc. is an affiliate of Diversified Securities, Inc., a wholly-owned subsidiary of DSI Financial, Inc. The General Partners provide similar services to other partnerships. Through its public offering of Limited Partnership Units, Registrant sold thirty thousand six hundred ninety-three (30,693) units of limited partnership interests aggregating Fifteen Million Three Hundred Forty-Six Thousand Five Hundred Dollars ($15,346,500). The General Partners have retained a one percent (1%) interest in all profits, losses and distributions (subject to certain conditions) without making any capital contribution to the Partnership. The General Partners are not required to make any capital contributions to the Partnership in the future.

The Partnership has acquired mini-storage facilities located in Monterey Park and Azusa, California; Everett, Washington; and Romeoville and Elgin, Illinois. The Partnership has also entered into a joint venture with DSI Realty Income Fund VIII through which the Partnership has a 70% interest in a mini-storage facility in Aurora, Colorado. A non-controlling interest in the real estate joint venture was recorded for the three-month period ended March 31, 2012 and 2011 in the amount of $14,127 and $17,074. The Partnership is a general partner in the joint venture. The facilities were acquired from Dahn Corporation ("Dahn"). Dahn is not affiliated with the Partnership. Dahn is affiliated with other partnerships in which DSI Properties, Inc., RJC and JWC are the general partners.

 

The accompanying unaudited interim consolidated financial statements have been prepared by the Partnership's management in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conjunction with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the results for the interim periods presented. However, the results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 2011.

 

Significant Accounting Policies

The Partnership has adopted Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. For the three months ended March 31, 2012 and 2011 comprehensive income equaled net income, as the Partnership had no other comprehensive income. As of March 31, 2012 and December 31, 2011, accumulated other comprehensive income was $0.

ASC 825-10 (formerly SFAS 107, “Disclosures about Fair Value of Financial Instruments”) defines financial instruments and requires disclosure of the fair value of financial instruments held by the Partnership. The Partnership considers the carrying amount of cash, accounts receivable, other receivables, accounts payable and accrued liabilities, to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization.

 

Recent Accounting Pronouncements

In May 2011, the FASB issued Accounting Standards Update 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The new guidance results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards. While many of the amendments to U.S. GAAP are not expected to have a significant effect on practice, the new guidance changes some fair value measurement principles and disclosure requirements. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. The adoption of the standard update does not have a significant impact on its financial position or results of operations.

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XML 16 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Property
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Property

Properties owned by the Partnership are all mini-storage facilities. Depreciation is calculated using the straight-line method over the estimated useful life of 20 years. Property under capital leases is amortized over the lives of the respective leases. The total cost of property and accumulated depreciation at March 31, 2012 and December 31, 2011, were as follows:

  March 31, 2012 December 31, 2011
Land $ 2,729,790 $ 2,729,790
Buildings and improvements 11,289,984 11,185,008
Rental trucks under capital leases 210,138 210,138
Total 14,233,002 14,233,002
Less accumulated depreciation (11,393,130) (11,379,861)
Property, net $2,839,872 $2,853,141

XML 17 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Income (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
REVENUES:    
Self-storage rental income $ 551,476 $ 580,825
Ancillary operating revenue 55,964 45,387
Interest and other income 9 14
TOTAL 607,449 626,226
EXPENSES:    
Depreciation 13,269 3,623
Operating 263,130 272,209
General and administrative 94,877 117,208
General partners' incentive management fee 17,439 20,927
Property management fee 33,375 32,746
TOTAL 422,090 446,713
NET INCOME 185,359 179,513
LESS: net income attributable to the non-controlling interest (14,127) (17,074)
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP 171,232 162,439
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP ALLOCATED TO:    
General partners 1,712 1,624
Limited partners 169,520 160,815
TOTAL 171,232 162,439
Weighted average limited partnership units outstanding 30,693 30,693
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP PER LIMITED PARTNERSHIP UNIT $ 5.52 $ 5.24
XML 18 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Mar. 31, 2012
Document And Entity Information  
Entity Registrant Name DSI Realty Income Fund IX
Entity Central Index Key 0000764586
Document Type 10-Q
Document Period End Date Mar. 31, 2012
Amendment Flag false
Current Fiscal Year End Date --12-31
Is Entity a Well-known Seasoned Issuer? No
Is Entity a Voluntary Filer? No
Is Entity's Reporting Status Current? Yes
Entity Filer Category Smaller Reporting Company
Entity Common Stock, Shares Outstanding 30,693
Document Fiscal Period Focus Q1
Document Fiscal Year Focus 2012
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Consolidated Statements of Partners' Equity (Unaudited) (USD $)
General Partners
Limited Partners
Non-controlling Interest
Total
BALANCE, Beginning at Dec. 31, 2011 $ (108,038) $ 3,048,180 $ 192,874 $ 2,940,142
Net Income Allocation 1,712 169,520 17,127 185,359
Distributions (1,938) (191,830) (12,900) (206,668)
Balance, Ending at Mar. 31, 2012 $ (108,264) $ 3,025,870 $ 194,101 $ 3,111,707
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Subsequent Events
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Subsequent Events

Events subsequent to March 31, 2012, have been evaluated through the date these unaudited interim consolidated financial statements were issued to determine whether they should be disclosed to keep the unaudited interim consolidated financial statements from being misleading. Management found no subsequent events that should be disclosed.

 

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Consolidated Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income attributable to the Partnership $ 171,232 $ 162,439
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 13,269 3,623
Net Income attributable to non-controlling interests 14,127 17,074
Changes in assets and liabilities:    
Other assets 34,136 1,590
Incentive management fee payable to General Partners 9,592 10,464
Property management fees payable 472 58
Customer deposits and other liabilities (41,862) 4,142
Net cash provided by operating activities 200,966 199,390
CASH FLOWS FROM INVESTING ACTIVITIES:    
Additions to property 0 0
Net cash used in investing activities 0 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
Distributions to partners (193,768) (232,523)
Distributions paid to non-controlling interests (12,900) (11,100)
Net cash used in financing activities (206,668) (243,623)
NET DECREASE IN CASH AND CASH EQUIVALENTS (5,702) (44,233)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 537,223 703,774
CASH AND CASH EQUIVALENTS AT END OF PERIOD 531,521 659,541
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid for interest $ 0 $ 0
NON CASH INVESTING AND FINANCING ACTIVITIES:    
Distributions due partners included in partners' equity 193,769 232,523
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Related Party Transactions
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Related Party Transactions

The Partnership has entered into a management agreement with Dahn to operate its mini-storage facilities. The management agreement provides for a management fee equal to 5% of gross revenue from operations, which is defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreement is renewable annually. Dahn earned management fees equal to $33,375 and $32,746 for the three month periods ended March 31, 2012 and 2011, respectively. Amounts payable to Dahn at March 31, 2012 and December 31, 2011 were $10,680 and $10,208, respectively.

 

Beginning in July 2011, the General Partner, DSI Properties, Inc. performs all tax related work with respect to the Partnership. These services are paid monthly in the amount of $4,949. Tax fees paid to DSI Properties, Inc. for the three month period ended March 31, 2012 were $14,847.

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