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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, 2002
/___/ 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, 2002 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, 2002.
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, 2002.
(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, 2002 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, 2002 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
July 31, 2002
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, 2002. 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, 2002 and 2001, total revenues
decreased 4.7% from $807,977 to $770,436 and total expenses increased 6.1%
from $458,126 to $485,968 and other income decreased from $974 to $212.
Minority interest in income of real estate joint venture decreased 24.0%
from $43,090 to $32,739. As a result, net income decreased 18.1% from
$307,735 to $251,941 for the three-month period ended June 30, 2002, as
compared to the same period in 2001. Rental revenue decreased as a result
of lower occupancy rates. Occupancy levels for the Partnership's six mini-
storage facilities averaged 85.1% for the three-month period ended June 30,
2002 as compared to 88.6% for the same period in 2001. The Partnership is
continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities. Operating expenses increased approximately
$8,100 (2.1%) due primarily to increases in advertising, office supplies,
workers compensation insurance and depreciation expenses, partially offset
by a decrease in maintenance and repair expense. General and administrative
expenses increased approximately $19,800 (30.1%) primarily as a result of
increases in legal and professional and equipment and computer lease expenses.
Minority interest in income of real estate joint venture decreased as a result
of lower rental revenue and higher operating expenses at that facility.
For the six-months period ended June 30, 2002, and 2001, total revenues
decreased 0.9% from $1,586,061 to $1,571,645 and total expenses increased
9.1% from $873,810 to $952,926 and other income decreased from $2,182 to
$411. Minority interest in income of real estate joint venture decreased
19.1% from $86,484 to $69,927. As a result, net income decreased 12.5%
from $627,949 to $549,203 for the six-month period ended June 30, 2002, as
compared to the same period in 2001. Rental revenue increased as a result
of lower occupancy rates. Operating expenses increased approximately $55,400
(7.5%) due primarily to increases in legal and professional, maintenance and
repair, office supplies, salaries and wages, workers compensation insurance,
security alarm services and travel expenses, partially offset by decreases
in advertising and power and sweeping expenses. Power and sweeping expenses
decreased as the substantial snow removal costs, associated with heavy snow-
falls in area of Illinois and Michigan where Partnership facilities are
located, were not incurred in the current period. General and administrative
expenses increased approximately $23,800 (17.9%) for the reasons discussed
above. The decrease in minority interest in income of real estate joint
venture was discussed above.
On April 5, 2002, the General Partners received a copy of a hostile tender
offer from MacKenzie Patterson, Inc. and associated corporations and limited
partnerships to purchase all of the Units in the Partnership. This offer was
also filed with the Securities and Exchange Commission on the same date. The
General Partners have determined that the hostile tender offer was not in the
best interests of the Limited Partners, that the tender offer was grossly in-
adequate given the performance history of the Limited Partnership and the
inherent value of the Units, and recommended that the Limited Partners reject
the hostile tender offer and not tender their Units pursuant thereto. The
offer was subsequently increased and extended to June 30, 2002 and again to
July 22, 2002. The General Partners' initial determination regarding the
offer has not changed. Prior to the expiration date of the offer, Limited
Partners tendered 22 Units representing 0.072% of the outstanding Units of
the Partnership.
The General Partners plan to continue their policy of funding the continuing
improvements and maintenance of Partnership properties with cash generated
from operations. The Partnership's resources appear to be adequate to meet
its needs. The General Partners anticipate distributions to the Limited
Partners to remain at the current level for the foreseeable future.
We are not enclosing a copy of the Partnership Form 10-Q as filed with the
Securities and Exchange Commission since all the information set forth
therein is contained either in this letter or in the attached financial
statements. However, if you wish to receive a copy of said report, please
send a written request to DSI Realty Income Fund IX, P.O. Box 357, Long
Beach, California 90801.
Very truly yours,
DSI REALTY INCOME FUND IX
By: DSI Properties, Inc., as
General Partner
By /s/ Robert J. Conway
____________________________
ROBERT J. CONWAY, President
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
CONSOLIDATED BALANCE SHEETS(UNAUDITED)
JUNE 30, 2002 AND DECEMBER 31, 2001
June 30, December 31,
2002 2001
ASSETS
CASH AND CASH EQUIVALENTS $ 748,293 $ 633,503
PROPERTY, NET 4,531,043 4,745,825
OTHER ASSETS 90,597 93,384
TOTAL $5,369,933 $5,472,712
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 689,735 $ 724,084
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 184,087 181,660
PARTNERS' EQUITY (DEFICIT):
General Partners (92,479) (91,771)
Limited Partners 4,588,590 4,658,739
Total partners' equity 4,496,111 4,566,968
TOTAL $5,369,933 $5,472,712
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
June 30, June 30,
2002 2001
REVENUES:
Rental $ 770,436 $ 807,977
EXPENSES:
Operating 400,477 392,416
General and administrative 85,491 65,710
Total expenses 485,968 458,126
OPERATING INCOME 284,468 349,851
OTHER INCOME
Interest 212 974
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 284,680 350,825
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (32,739) (43,090)
NET INCOME $ 251,941 $ 307,735
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 249,422 $ 304,658
General partners 2,519 3,077
TOTAL $ 251,941 $ 307,735
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 8.13 $ 9.93
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, 2002 AND 2001
June 30, June 30,
2002 2001
REVENUES
Rental $1,571,645 $1,586,061
EXPENSES:
Operating 796,397 741,047
General and Admininstrative 156,529 132,763
Total expenses 952,926 873,810
OPERATING INCOME 618,719 712,251
OTHER INCOME
Interest 411 2,182
INTEREST BEFORE MINORITY
INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE 619,130 714,433
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (69,927) (86,484)
NET INCOME $ 549,203 $ 627,949
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 543,711 621,670
General Partners 5,492 6,279
TOTAL $ 549,203 $ 627,949
NET INCOME PER LIMITED
PARTNERSHIP UNIT 17.71 20.25
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to consolidated financial statements (unaudited).
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)(UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2002
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2002 ($91,771) $4,658,739 $4,566,968
NET INCOME 5,492 543,711 549,203
DISTRIBUTIONS (6,200) (613,860) (620,060)
BALANCE AT JUNE 30, 2002 ($92,479) $4,588,590 $4,496,111
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
June 30, June 30,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 549,203 $ 627,949
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 214,782 209,074
Minority interest in income
real estate joint venture 69,927 86,484
Changes in assets and
liabilities:
Decrease(increase)in other assets 2,787 (9,000)
Decrease in liabilities (34,349) (38,423)
Net cash provided by
operating activities 802,350 876,084
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (620,060) (620,060)
Distributions paid to minority
interest in real estate
joint venture (67,500) (80,400)
Net cash used in
financing activities (687,560) (700,460)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 114,790 175,624
CASH AND CASH EQUIVALENTS:
At beginning of period 633,503 509,410
At end of period $ 748,293 $ 685,034
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, 2002,
and for the periods ended June 30, 2002, and 2001 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, 2002, the total cost and
accumulated depreciation of the mini-storage facilities are as follows:
Land $ 2,729,790
Buildings and equipment 11,052,387
Total 13,782,177
Less: Accumulated Depreciation ( 9,251,134)
Property - Net $ 4,531,043
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.
DSI REALTY INCOME FUND IX
Form 10-Q
CERTIFICATION
Each of the undersigned hereby certifies in his capacity as an officer of
DSI Properties Inc. (corporate General Partner) of DSI REALTY INCOME FUND IX
(the "Partnership") that the Quarterly Report of the Partnership on Form 10-Q
for the periods ended June 30, 2002 fully complies with the requirements of
Section 13(a) of the Securities and Exchange Act of 1934 and that information
contained in such report fairly presents, in all material respects, the
financial condition of the Partnership at the end of such periods and the
results of operations of the Partnership for such periods.
ROBERT J. CONWAY, CEO RICHARD P. CONWAY, VP