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, 2010
[ ] 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 (l) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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, 2010 |
|
December 31, 2009 |
|
ASSETS: |
|
|
|
|
|
Cash & Equivalents |
|
|
$ 757,750 |
|
$ 761,740 |
Property Net |
|
|
2,775,635 |
|
2,780,119 |
Uncollected Rental Revenue |
|
|
97,811 |
|
122,148 |
Prepaid Advertising |
|
|
24,250 |
|
33,949 |
Other Assets |
|
|
45,146 |
|
23,945 |
TOTAL |
|
|
$ 3,700,592 |
|
$ 3,721,901 |
LIABILITIES AND PARTNERS' EQUITY |
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Distribution due to Partners |
|
|
$ 232,523 |
|
$ 232,523 |
Incentive Management Fee Liability |
|
|
- |
|
- |
Property Management Fee Liability |
|
|
10,527 |
|
10,868 |
Deferred Income |
|
|
52,123 |
|
45,721 |
Accrued Expenses |
|
|
38,032 |
|
34,717 |
Other Liabilities |
|
|
87,435 |
|
53,498 |
Total Liabilities |
|
|
$ 420,640 |
|
$ 377,327 |
PARTNERS' EQUITY: |
|
|
|
|
|
General Partners |
|
|
(106,554) |
|
(105,903) |
Limited Partners |
|
|
3,195,274 |
|
3,259,649 |
Total Partners' Equity |
|
|
$ 3,088,720 |
|
$ 3,153,746 |
Noncontrolling Interest in Real Estate Joint Venture |
|
|
$ 191,232 |
|
$ 190,828 |
Total Equity |
|
|
$ 3,279,952 |
|
$ 3,344,574 |
TOTAL |
|
|
$ 3,700,592 |
|
$ 3,721,901 |
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 |
Three months ended |
||||
|
|
|
March 31, 2010 |
|
March 31, 2009 |
REVENUES: |
|
|
|
|
|
Self-storage rental income |
|
|
$ 604,933 |
|
$ 625,247 |
Ancillary operating revenue |
|
|
47,801 |
|
52,612 |
Interest and other income |
|
|
29 |
|
48 |
TOTAL |
|
|
$ 652,763 |
|
$ 677,907 |
EXPENSES: |
|
|
|
|
|
Depreciation |
|
|
4,484 |
|
3,845 |
Operating |
|
|
304,717 |
|
299,025 |
General and administrative |
|
|
114,276 |
|
109,941 |
Interest |
|
|
- |
|
- |
General partners' incentive management fee |
|
|
10,464 |
|
20,927 |
Property management fee |
|
|
32,321 |
|
38,048 |
TOTAL |
|
|
$ 466,262 |
|
$ 471,786 |
NET INCOME |
|
|
$ 186,501 |
|
$ 206,121 |
Less: Net income attributable to the |
|
|
|
|
|
noncontrolling interest |
|
|
(19,004) |
|
(25,741) |
NET INCOME ATTRIBUTABLE TO |
|
|
|
||
THE PARTNERSHIP |
|
|
$ 167,497 |
|
$ 180,380 |
NET INCOME ATTRIBUTABLE TO | |||||
THE PARTNERSHIP ALLOCATED TO: |
|
|
|
|
|
General partners |
|
|
1,674 |
|
1,804 |
Limited partners |
|
|
165,823 |
|
178,576 |
TOTAL |
|
|
$ 167,497 |
|
$ 180,380 |
Weighted average limited partnership units outstanding |
|
30,693 |
|
30,693 |
|
NET INCOME ATTRIBUTABLE TO THE PARTNERSHIP | |||||
PER LIMITED PARTNERSHIP UNIT |
$ 5.40 |
|
$ 5.82 |
||
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 CHANGES IN PARTNERS' EQUITY (DEFICIT) (UNAUDITED) |
|
|
||||
|
General Partners |
|
Limited Partners |
|
Noncontrolling |
Total |
BALANCE AT DECEMBER 31, 2009 |
$(105,903) |
|
$ 3,259,649 |
|
$ 190,828 |
$ 3,344,574 |
Net Income Allocation |
1,674 |
|
165,823 |
|
19,004 |
186,501 |
Distributions |
(2,325) |
|
(230,198) |
|
(18,600) |
(251,123) |
BALANCE AT MARCH 31, 2010 |
$(106,554) |
|
$ 3,195,274 |
|
$ 191,232 |
$ 3,279,952 |
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, 2010 |
|
March 31, 2009 |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
Net income attributable to the Partnership |
|
|
$ 167,497 |
|
$ 180,380 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|||
Depreciation |
|
|
4,484 |
|
3,845 |
Net income attributable to the non-controlling interest |
|
|
19,004 |
|
25,741 |
Changes in assets and liabilities: |
|
|
|
|
|
Other assets |
|
|
12,835 |
|
85,603 |
Incentive management fee payable to General Partners |
|
|
- |
|
(48,830) |
Property management fees payable |
|
|
(341) |
|
(187) |
Customer deposits and other liabilities |
|
|
43,654 |
|
93,002 |
Net cash provided by operating activities |
|
|
247,133 |
|
339,554 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Additions to property | - | - | |||
Net cash provided by investing activities | - | - | |||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
Distributions to partners |
|
|
(232,523) |
|
(232,523) |
Distributions paid to non-controlling interest |
|
|
(18,600) |
|
(13,500) |
Net cash used in financing activities |
|
|
(251,123) |
|
(246,023) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
$(3,990) |
|
$ 93,531 |
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
761,740 |
|
799,093 |
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ 757,750 |
|
$ 892,624 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|||
Cash paid for interest |
|
|
$ - |
|
$ - |
NON CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
Distributions due partners included in partners' equity |
|
|
$ 232,523 |
|
$ 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, 2010
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.
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 noncontrolling interest in the real estate joint venture was recorded for the three months ended March 31,2010 and 2009 in the amount of $19,004 and $25,741. 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., Robert J. Conway and Joseph W. Conway 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, 2010. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2009`.
Recent Accounting Pronouncements
In April
2009, the FASB issued ASC 825-10 (formerly FASB Staff Position No. FAS 107-1 and
APB 28-1, Interim Disclosures about Fair Value of Financial Instruments) ("ASC
825-10"), which requires that the fair value disclosures required for all
financial instruments within the scope of SFAS 107, "Disclosures about Fair
Value of Financial Instruments," be included in interim financial statements.
This FSP also requires entities to disclose the method and significant
assumptions used to estimate the fair value of financial instruments on an
interim and annual basis and to highlight any changes from prior periods. ASC
825-10 was effective for interim periods ending after June 15, 2009, with early
adoption permitted. The adoption of ASC 825-10 did not have a material impact on
the Partnership's interim unaudited consolidated financial statements.
In May 2009, the FASB issued ASC 855-10 (formerly Statement No. 165, Subsequent
Events) ("ASC 855-10"). ASC 855-10 establishes general standards of accounting
for and disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. In accordance
with this Statement, entities should apply the requirements to interim or annual
financial periods ending after June 15, 2009. The adoption of this statement
did not have a material impact on the Partnership's interim unaudited
consolidated financial statements.
In June 2009, the FASB approved its Accounting Standards Codification, or
Codification, as the single source of authoritative United States accounting and
reporting standards applicable for all non-governmental entities, with the
exception of the SEC and its staff. The Codification, which changes the
referencing of financial standards, is effective for interim or annual financial
periods ending after September 15, 2009. Therefore, starting from the third
quarter of fiscal year 2009, all references made to US GAAP will use the new
Codification numbering system prescribed by the FASB. As the Codification is
not intended to change or alter existing US GAAP, it did not have any impact on
the Partnership's interim unaudited consolidated financial statements.
As a result of the Partnership's implementation of the Codification during the
quarter ended March31, 2010, previous references to new accounting standards and
literature are no longer applicable. In the current quarter financial
statements, the Partnership will provide reference to both new and old guidance
to assist in understanding the impact of recently adopted accounting literature,
particularly for guidance adopted prior to the Codification.
In August 2009, the FASB issued Accounting Standards Update No. 2009-05 ("ASU
2009-05"), "Fair Value Measurements and Disclosures (Topic 820) - Measuring
Liabilities at Fair Value." ASU 2009-05 amends Subtopic 820-10, "Fair Value
Measurements and Disclosures - Overall," and provides clarification for the fair
value measurement of liabilities. ASU 2009-05 is effective for the first
reporting period including interim period beginning after issuance. The
Partnership does not expect the adoption of ASU 2009-05 to have a material
impact on its interim unaudited consolidated financial statements.
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, 2010, were as
follows:
|
March 31, 2010 |
December 31, 2009 |
Land |
$ 2,729,790 |
$ 2,729,790 |
Buildings and improvements |
11,182,530 |
11,182,530 |
Rental trucks under capital leases |
210,138 |
210,138 |
Total |
14,122,458 |
14,122,458 |
Less accumulated depreciation |
(11,346,823) |
(11,342,339) |
Property – net |
$ 2,775,635 |
$ 2,780,119 |
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 $32,321 and $38,048 for the three month periods ended March 31, 2010 and 2009, respectively. Amounts payable to Dahn at March 31, 2010 and December 31, 2009 were $10,527and $10,868 respectively.
6. SUBSEQUENT EVENTS
Events subsequent to March 31, 2010, 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 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
2010 COMPARED TO 2009
For the three-month periods ended March 31, 2010 and 2009, revenues decreased 3.7% to $652,763 from $677,907 and total expenses decreased 1.2% to $466,262 from $471,786, resulting in a decrease in net income of 7.1% to $167,497 from $180,380. Rental revenues decreased primarily as a result of lower unit rental rates. Occupancy levels for the Partnership's mini-storage facilities averaged 70.0% for the three-month period ended March 31, 2010, compared to 69.0% for the same period in 2009. Operating expenses increased $5,692 or 1.9% primarily due to increases in advertising, repairs and maintenance and real estate tax expenses. General and administrative expenses increased $4,335 or 3.9% primarily as a result of an increase in postage expenses partially offset by a decrease in office supplies 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. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
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
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
/s/ ROBERT J. CONWAY
By_____________________________
Dated: May 14, 2010
ROBERT
J. CONWAY, President
(Chief
Executive Officer, Chief Financial
Officer and Director)
/s/ JOSEPH W. CONWAY
By_____________________________
Dated: May 14, 2010
JOSEPH W. CONWAY, (Executive Vice President 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 14, 2010
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
Senior
Vice President of DSI Properties, Inc.,
General
Partner (chief financial officer)
May 14, 2010
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, 2010 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 14, 2010
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, 2010 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
Senior
Vice President of DSI Properties, Inc.,
General
Partner (chief financial officer)
May 14, 2010