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, 2004
/___/ 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, 2004, 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, 2004.
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, 2004.
(B) Registrant did not file any reports on Form 8-K for the
period reported upon.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Dated: October 29, 2004 DSI REALTY INCOME FUND IX
A California Limited Partnership
(Registrant)
By____\s\ Robert J. Conway_____
DSI Properties, Inc., as General
Partner by ROBERT J. CONWAY,
President and Chief Financial Officer
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Dated: October 29, 2004 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
October 29, 2004
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, 2004. 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, 2004 and 2003, total
revenues decreased 6.2% from $704,751 to $661,370 and total expenses decreased
9.3% from $488,141 to $442,657 and other income remained constant. Minority
interest in income of real estate joint venture decreased 4.7% from $30,124
to $28,698. As a result, net income increased 1.9% from $186,617 to $190,146
for the three-month period ended September 30, 2004, as compared to the same
period in 2003. Rental revenue decreased as a result of lower occupancy rates.
Occupancy levels for the Partnership's six mini-storage facilities averaged
73.5% for the three-month period ended September 30, 2004 as compared to 78.3%
for the same period in 2003. The Partnership is continuing its marketing
efforts to attract and keep new tenants in its various mini-storage facilities.
Operating expenses increased approximately $32,800 (8.9%) due primarily to an
increase in maintenance and repair, security and alarm services and bank and
credit card fee expenses, partially offset by a decrease in property manage-
ment fee expense. Property management fees, which are based on rental revenue
decreased as a result of the decrease in rental revenue. General and admin-
istrative expenses decreased approximately $78,300 (65.2%) primarily as a
result of a decrease in legal and professional expense. The decrease in legal
and professional expense is related to unsuccessful legal challenges by two
dissident Limited Partners to an amendment to the Partnership Agreement.
Minority interest in income of real estate joint venture decreased as a result
of lower rental revenue at that facility.
For the nine-month periods ended September 30, 2004, and 2003, total revenues
decreased 7.8% from $2,182,906 to $2,011,819 and total expenses decreased 1.4%
from $1,384,727 to $1,365,725 and other income increased from $378 to $391.
Minority interest in income of real estate joint venture decreased 11.9% from
$99,813 to $87,923. As a result, net income decreased 20.1% from $698,744 to
$558,562 for the nine-month period ended September 30, 2004, as compared to the
same period in 2003. Rental revenue decreased as a result of lower occupancy
rates. Operating expenses increased approximately $57,500 (5.1%) due primarily
to increases in advertising, maintenance and repair, office supplies, security
and alarm services and bank and credit card fee expenses, partially offset by
decreases in property management fee medical insurance expenses. The decrease
in property management fees was discussed above. General and administrative
expenses decreased approximately $76,500 (29.0%) primarily as result of a de-
crease in legal and professional expense. The decrease in legal and pro-
fessional expense was discussed above. Minority interest in income of real
estate joint venture decreased as discussed above.
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 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)
SEPTEMBER 30, 2004 AND DECEMBER 31, 2003
September 30, December 31,
2004 2003
ASSETS
CASH AND CASH EQUIVALENTS $ 497,468 $ 732,355
PROPERTY, Net 3,562,460 3,876,070
OTHER ASSETS 132,815 105,178
TOTAL $4,192,743 $4,713,603
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES $ 612,980 $ 721,081
MINORITY INTEREST IN
REAL ESTATE JOINT VENTURE 181,594 180,971
PARTNERS' EQUITY(DEFICIT):
General Partners (103,427) (99,325)
Limited Partners 3,501,596 3,910,876
Total partners' equity 3,398,169 3,811,551
TOTAL $4,192,743 $4,713,603
See accompanying notes to financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
September 30, September 30,
2004 2003
REVENUES:
Rental $ 661,370 $ 704,751
EXPENSES:
Operating 400,896 368,122
General and administrative 41,761 120,019
Total expenses 442,657 488,141
OPERATING INCOME 218,713 216,610
OTHER INCOME
Interest 131 131
INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE 218,844 216,741
MINORITY INTEREST IN INCOME
OF REAL ESTATE JOINT VENTURE (28,698) (30,124)
NET INCOME $ 190,146 $ 186,617
AGGREGATE NET INCOME ALLOCATED TO:
Limited partners $ 188,245 $ 184,751
General partners 1,901 1,866
TOTAL $ 190,146 $ 186,617
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 6.13 $ 6.02
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to financial statements(unaudited).
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
September 30, September 30,
2004 2003
REVENUES:
Rental $2,011,819 $2,182,906
EXPENSES:
Operating 1,178,285 1,120,755
General and Administrative 187,440 263,972
Total Expenses 1,365,725 1,384,727
OPERATING INCOME 646,094 798,179
OTHER INCOME
Interest 391 378
INCOME BEFORE MINORITY INTEREST
IN INCOME OF REAL ESTATE
JOINT VENTURE 646,485 798,557
MINORITY INTEREST IN INCOME OF REAL
ESTATE JOINT VENTURE ( 87,923) (99,813)
NET INCOME $558,562 $698,744
AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners 552,976 691,757
General Partners 5,586 6,987
TOTAL 558,562 698,744
NET INCOME PER LIMITED
PARTNERSHIP UNIT $18.02 $22.54
LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION 30,693 30,693
See accompanying notes to financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS'
EQUITY (DEFICIT)(UNAUDITED) FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2004
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
BALANCE AT JANUARY 1, 2004 ($99,325) $3,910,876 $3,811,551
NET INCOME 5,586 552,976 558,562
DISTRIBUTIONS (9,688) (962,256) (971,944)
BALANCE AT SEPTEMBER 30, 2004 ($103,427) $3,501,596 $3,398,169
See accompanying notes to consolidated financial statements(unaudited).
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
September 30, September 30,
2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 558,562 $ 698,744
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 313,610 313,606
Minority interest in income
of real estate joint venture 87,923 99,813
Changes in assets and
liabilities:
Increase in other assets (27,637) (32,311)
(Decrease)increase in liabilities (108,101) 104,699
Net cash provided by
operating activities 824,357 1,184,551
CASH FLOWS FROM INVESTING -
Additions to property (6,500)
CASH FLOWS FROM FINANCING ACTIVITIES -
Distributions to partners (971,944) (930,090)
Distributions paid to
minority interest in
real estate joint venture (87,300) (94,200)
Net cash used in financing activities (1,059,244) (1,024,290)
NET (DECREASE)INCREASE IN CASH AND
CASH EQUIVALENTS (234,887) 153,761
CASH AND CASH EQUIVALENTS:
At beginning of period 732,355 631,709
At end of period $ 497,468 $785,470
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 consolidated financial information as of September 30,
2004, and for the periods ended September 30, 2004, and 2003 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, 2004, the total cost and accumulated
depreciation of the mini-storage facilities are as follows:
Land $ 2,729,790
Buildings and equipment 11,069,318
Total 13,799,108
Less: Accumulated Depreciation (10,236,648)
Property - Net $ 3,562,460
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. CONTROLS AND PROCEDURES
Within 90 days prior to the date of this report, the Partnership evaluated
the effectiveness of its disclosure controls and procedures. This evaluation
was performed by the Partnership's Controller with the assistance of the
Partnership's President and the Chief Executive Officer. These disclosure
controls and procedures are designed that the information required to be
disclosed by the Partnership in its periodic reports filed with the
Securities and Exchange Commission (the "Commission") is recorded, processed,
summarized and reported, within the time periods specified by the Commission's
rules and forms, and that the information is communicated to the certifying
officers on a timely basis. Based on this evaluation, the Partnership con-
cluded that its disclosure controls and procedures were effective. There have
been no significant changes in the Partnership's internal controls or in other
factors that could significantly affect the internal controls subsequent to
the date of their evaluation.
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 September 30, 2004 fully complies with the requirements
of Section 13(a) of the Securities and Exchange Act of 1934 and that inform-
ation 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
CERTIFICATIONS
I, Robert 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 quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly 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 quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consoli-
dated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effec-
tiveness of the disclosure controls and procedures based on our evalu-
ation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit com-
mitee of registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls sub-
sequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November, 2004
Robert Conway
President
CERTIFICATIONS
I, Richard 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 quarterly 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 quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly 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 quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consoli-
dated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effec-
tiveness of the disclosure controls and procedures based on our evalu-
ation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit com-
mitee of registrant's board of directors (or persons performing the equivalent
functions):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls;
and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls sub-
sequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November, 2004
Richard Conway
Vice President