ITEM 1A. RISK FACTORS
Not required.
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ITEM 1B.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2.
ITEM 2. PROPERTIES
The Partnership owns a fee interest in the following mini-storage facilities, none of which are subject to long-term indebtedness. Please refer to the discussion under “Business” for a discussion of the average occupancy rate for each property owned by the Partnership. The following table sets forth information regarding properties owned by the Partnership.
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
The Partnership is not a party to any material pending legal proceedings.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted to a vote of security holders during 2008.
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PART II
ITEM 5.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
The Partnership is a limited partnership and thus has no common stock. There is no established trading market for limited partnership interests in the Partnership and it is not anticipated that any such public market will develop.
The Limited Partnership Agreement effectively prevents the transfer of Limited Partnership Interests except under very limited circumstances. In order to transfer a Limited Partner­ship Interest, a Limited Partner must obtain the consent of the General Partners of the Partnership, which have the absolute right to refuse any request for a transfer. In addition, the proposed transferee must meet all applicable suitability standards and agree to be bound by the Limited Partnership Agreement.
Approximate Number of Security Holders
As of December 31, 2008, there were approximately 1,117 holders of Limited Partnership Interests.
Distributions
Average cash distributions of $10.10 per Limited Partnership Unit were declared and paid each quarter for the year ended December 31, 2008 and $8.85 per Limited Partnership Unit were declared and paid each quarter for the year ended December 31, 2007. It is the Partnership’s expectation that distributions will continue to be paid in the future.
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
Not Required.
ITEM 7.
ITEM 7. 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
COMPARED TO 2007
Total revenues increased from $3,165,420 in 2007 to $3,251,287 in 2008, while total expenses increased from $1,821,206 to $1,853,721 and other income increased from $195 to $289 and minority interest in income of the real estate joint venture increased from $129,999 to $139,058. As a result of these fluctuations, net income increased from $1,214,215 to $1,258,508. The increase in rental revenues can be attributed to higher unit rental rates. Occupancy levels for the Partnership’s mini-storage facilities averaged 78.0% for the year ended December 31, 2008 and 79.5% for the year ended December 31, 2007. The Partnership continued its advertising campaign to attract and keep new tenants in its various mini-storage facilities. The $56,270 (5.1%) increase in operating expenses was due primarily to increases in advertising, salaries and wages, and real estate tax expenses partially offset by decreases in maintenance and repair, trash, purchase of locks and packing materials. The $6,275 (1.8%) increase in general and administrative expenses was due primarily to increases in legal and professional and equipment and computer lease expenses. General Partners’ incentive management fees, which are based on cash distributions to Limited Partners, increased as a result of an increase in these distributions. Property management fees, which are based on rental revenue, increased as a result of the increase in rental revenue.
Operating expenses consist mainly of expenses such as yellow pages and other advertising, utilities, and maintenance, real estate taxes, salaries and wages and their related expenses. General and administrative expenses consist mainly of expenses such as legal and professional, office supplies, accounting services and computer expenses.
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LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased by $150,794 (10.9%) in 2008 compared to 2007 primarily due to the increase in net income for continuing operations before depreciation, a decrease in other assets and an increase in incentive management fees.
Cash used in investing activities, consists of acquisition of property for the Partnership's mini storage facilities in 2008. The Partnership has no material commitments for capital expenditures.
Cash used in financing activities, as set forth in the statements of cash flows, has consisted solely of cash distributions to partners in 2008 and 2007 and payments on capital lease obligations. Special distributions of 2.0% and 1.0%, of capital contributed by Limited Partners, were declared and paid on December 15, 2008 and 2007, respectively.
Current economic conditions may have a significant impact on the self storage industry and our investment portfolio. A recession, more government intervention and higher taxes could all have a detrimental effect on the future performance of all properties. With the current crisis in the housing and lending markets, very few people are moving. Also, high gasoline prices are affecting people’s discretionary income and their ability to afford storage.
The advantage the Partnership has is that very few new facilities are being built. When the financial markets stabilize and the economy begins to grow, occupancies and income should rebound quickly.
The General Partners plan to continue their policy of funding the continuing improvement and maintenance of Partnership properties with cash generated from operations. The Partnership anticipates that cash flows generated from operations of the Partnership's rental real estate operations will be sufficient to cover operating expenses and distributions for the next twelve months and beyond.
The General Partners are not aware of any environmental problems which could have a material adverse effect upon the financial position of the Partnership.
LONG-TERM LIABILITIES, CONTRACTUAL OBLIGATIONS, AND OFF-BALANCE SHEET ARRANGEMENTS
Long-Term Liabilities and Contractual Obligations.
None.
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Summarized quarterly financial data for the year ended December 31, 2008 was as follows:
ITEM 7A.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not Required.
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ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
FINANCIAL STATEMENTS:								Page
Report of Independent Registered Public Accounting Firm 		
Balance Sheet as of December 31, 2008 and 2007 	
Statements of Income for the Years Ended December 31, 2008 and 2007 	
Statements of Changes in Partners' Equity (Deficit) for
the Years Ended December 31, 2008 and 2007 		
Statements of Cash Flows for the Years Ended December 31, 2008 and 2007
Notes to Financial Statements 			
SUPPLEMENTAL SCHEDULE:
Schedule III - Real Estate and Accumulated Depreciation as of December 31, 2008
ITEM 9.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
ITEM 9A.
ITEM 9A. CONTROLS AND PROCEDURES
No response required
ITEM 9A (T). 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, have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures are effective.
Management’s Report on Internal Control Over Financial Reporting
The Partnership’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the principal executive and principal financial officers of the General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, and effected by the Partnership’s management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:
pertain 	to the maintenance of records that in reasonable detail accurately 	and fairly reflect the transactions and dispositions of assets;
provide 	reasonable assurance that transactions are recorded as necessary to 	permit preparation of consolidated financial statements in 	accordance with generally accepted accounting principles, and that 	receipts and expenditures are being made only in accordance with 	authorizations of the Partnership’s management; and
provide 	reasonable assurance regarding prevention or timely detection of 	unauthorized acquisition, use or disposition of assets that could 	have a material effect on the consolidated financial statements.
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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The Partnership’s management assessed the effectiveness of the Partnership’s internal control over financial reporting as of December 31, 2008. In making this assessment, the Partnership’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.
Based on their assessment, the Partnership’s management concluded that, as of December 31, 2008, the Partnership’s internal control over financial reporting is effective.
This annual report does not include an attestation report of the Partnership’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to the attestation by the Partnership’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Partnership to provide only management’s report in this annual report.
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 fourth quarter of 2008 that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.
ITEM 9B.
ITEM 9B. OTHER INFORMATION
None.
PART III
ITEM 10.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
The General Partners of Registrant are the same as when the Partnership was formed, i.e., DSI Properties, Inc., a California corporation, and Robert J. Conway and Joseph W. Conway, brothers. As of December 31, 2008, Messrs. Robert J. Conway and Joseph W. Conway, each of whom own approximately 48.4% of the issued and outstanding capital stock of DSI Financial, Inc., a California corporation. Messrs. Robert J. and Joseph W. Conway, together with Mr. Joseph W. Stok, currently comprise the entire Board of Directors of DSI Properties, Inc.
DSI Properties, Inc.
Robert J. Conway, 74, has been President, Chief Financial Officer and a member of the Board of Directors of DSI Properties, Inc. since 1973.He has also been President and a member of the Board of Directors of Diversified Securities, Inc., since 1965. Mr. Conway is also a licensed California real estate broker, and received a Bachelor of Science Degree from Marquette University with majors in Corporate Finance and Real Estate.
Joseph W. Conway, 79, has been Vice President, Treasurer and member of the Board of Directors of DSI Properties, Inc. since 1973. He has also been Executive Vice President, Treasurer and a member of the Board of Directors of Diversified Securities, Inc. since 1965. Mr. Conway received a Bachelor of Arts Degree from Loras College with a major in Accounting.
Joseph W. Stok, 85, has been a member of the Board of Directors of DSI Properties, Inc. since 1994, a Vice President of Diversified Securities, Inc. since 1973, and an Account Executive with Diversified Securities, Inc. since 1967.
As the Partnership has no directors or executive officers, it has no audit, nominating or other committees.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
None of the directors or officers of the General Partners received any direct remuneration from the Partnership during the years ended December 31, 2008 or 2007.
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ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table sets forth certain information regarding the beneficial ownership of the Partnership's limited partnership units as of December 31, 2008 by (i) each person known to beneficially own more than 5% of the Partnership's limited partnership units, and (ii) each officer of the General Partners of the Partnership.
Title 				of Class
Name 				of Beneficial Owner
Number 				of LP Units Beneficially Held (1)
Percent 				of Class
Limited 				Partnership Interest
Robert J. Conway
1,082 				- Direct
3.5
Limited 				Partnership Interest
Joseph W. Conway
				- Direct
Less 				than 1%
(1) Unless otherwise indicated, the address for each listed director or officer is c/o 6700 E. Pacific Coast Hwy. #150, Long Beach, CA 90803. As used in this table, "beneficial ownership" means the sole or shared power to vote or direct the voting or to dispose or direct the disposition of any security.
(2) As of December 31, 2008, no person owned more than 5% of the limited partnership units of record, nor was any person known by the Partnership to beneficially own more than 5% thereof
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The Partnership has no employees and depends on the General Partners and their affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services and reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.
Under the Agreement of Limited Partnership, the General Partners are allocated 1% of the net profits or losses from operations of the Partnership. During 2008 an aggregate of $12,585 was allocated to the General Partners, and during 2007 an aggregate of $12,142 was allocated to the General Partners. In addition, under the Limited Partnership Agreement the General Partners are entitled to receive a percentage of any cash distribution from the sale, other disposition, or refinancing of properties of the Partnership, based on a formula set forth in the Limited Partnership Agreement. As there were no sales or refinancings of Partnership properties during 2008 or 2007, no such fees were paid during these periods.
In addition, the general partners are entitled to receive an incentive management fee for supervising the operations of the Partnership, equal to 9% per annum of the cash available for distribution on a cumulative basis, calculated as cash generated from operations less capital expenditures. During 2008 the Partnership paid the General Partners an incentive management fee of $111,611, and during 2007 the Partnership paid the General Partners an incentive management fee of $98,739.
All of the Partnership’s properties were purchased from Dahn Corporation ("Dahn"). Dahn is not affiliated with the Partnership, but is affiliated with other partnerships in which DSI Properties, Inc. is a general partner The Partnership has entered into management agreements with Dahn to operate its mini-storage facilities. Each agreement provides for a management fee equal to 5% of gross revenue from operations, defined as the entire amount of all receipts from the renting or leasing of storage compartments and sale of locks. The management agreements are renewable annually. During 2008 and 2007 the Partnership paid Dahn management fees of $162,277 and $159,708, respectively. Amounts payable to Dahn at December 31, 2008 and 2007, were $12,403 and $12,871, respectively.
None of the General Partner's directors is “independent” under the independence standards established by the Securities and Exchange Commission, as all directors are employed by a General Partner.
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ITEM 14.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Audit Fees
The aggregate fees for professional services rendered by Cacciamatta Accountancy Corporation for the audit of the Partnership's annual financial statements and for reviews of the financial statements included in the Partnership's Quarterly Reports on Form 10-Q for 2008 were $49,400 and for 2007 were $29,600.
Other Fees
The Partnership did not pay Cacciamatta Accountancy Corporation any Non-Audit-Related Fees, Tax Fees, or other fees during 2008 and 2007.
PART IV
ITEM 15.
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
(1) Financial Statements
See Index to Financial Statements and Supplemental Schedule in Item 7.
(2) Financial Statement Schedules
See Index to Financial Statements and Supplemental Schedule in Item 7.
(3) Exhibits
13 Annual Report Letter to Limited Partners
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
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SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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: April 14, 2009
ROBERT J. CONWAY, President
(Chief Executive Officer, Chief
Financial Officer, and Director)
/s/ JOSEPH W. CONWAY
By_____________________________
Dated: April 14, 2009
JOSEPH W. CONWAY, (Executive Vice President and Director)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the date indicated.
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: April 14, 2009
ROBERT J. CONWAY, President
(Chief Executive Officer, Chief Financial Officer, and Director)
	/s/ JOSEPH W. CONWAY
By_____________________________
Dated: April 14, 2009
JOSEPH W. CONWAY, (Executive Vice President and Director)
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ITEM 15(1)
ANNUAL REPORT TO LIMITED PARTNERS OF DSI REALTY INCOME FUND IX
Financial Statements for its fiscal year ended December 31, 2008
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Partners of DSI Realty Income Fund IX:
We have audited the accompanying balance sheets of DSI Realty Income Fund IX, a California Limited Partnership (the "Partnership") as of December 31, 2008 and 2007 and the related statements of income, changes in partners' equity (deficit), and cash flows for each of the two years in the period ended December 31, 2008. Our audits also included the supplemental schedule listed in the Index at Item 15(2). These financial statements and the supplemental schedule are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements and supplemental schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the financial position of DSI Realty Income Fund IX at December 31, 2008 and 2007, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such supplemental schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
/s/ Cacciamatta Accountancy Corporation
Santa Ana, California
March 31, 2009
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DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
BALANCE SHEET
DECEMBER 31
ASSETS
Cash and cash 				equivalents
$ 				 799,093
$ 				 740,841
Property, 				Net (Note 3)
2,768,543
2,815,442
Uncollected rental 				revenue
127,499
126,898
Prepaid 				advertising
73,361
47,247
Other assets
24,150
64,383
TOTAL
$ 				3,792,646
$ 				3,794,811
LIABILITIES AND 				PARTNERS' EQUITY
LIABILITIES:
Distribution due 				to partners (Note 4)
$ 				 232,523
$ 				 232,523
Incentive 				management fee payable to
general partners 				(Note 4)
48,830
1,080
Capital leases
56,506
Deferred income
40,561
51,840
Accrued expenses
37,553
33,668
Property 				management fees payable (Note 6)
12,403
12,871
Customer deposits 				and other liabilities
55,067
41,833
Total 				liabilities
426,937
430,321
MINORITY 				INTEREST IN REAL ESTATE JOINT VENTURE
189,659
194,302
PARTNERS' 				EQUITY
General partners
(105,680)
(105,739)
Limited partners
3,281,730
3,275,927
Total partners' 				equity
3,176,050
3,170,188
TOTAL
$ 				3,792,646
$ 				3,794,811
The accompanying notes are an integral part of these Financial Statements
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DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
The accompanying notes are an integral part of these Financial Statements
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DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
The accompanying notes are an integral part of these Financial Statements
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DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
STATEMENTS OF 				CASH FLOWS
CASH FLOWS FROM 				OPERATING ACTIVITIES:
Net income
$ 				 1,258,508
$ 				1,214,215
Adjustments 				to reconcile net income to net cash provided
by 				operating activities:
Depreciation
65,070
103,037
Minority interest 				in income of real estate joint venture
139,058
129,999
Changes in assets 				and liabilities:
Other assets
13,518
(63,569)
Distributions due 				to partners
Incentive 				management fee payable
to 				general partners
47,750
1,080
Property 				management fees payable
(468)
(447)
Customer deposits 				and other liabilities
5,840
(6,782)
Net 				cash provided by operating activities
1,529,276
1,378,482
CASH FLOWS FROM 				INVESTING ACTIVITIES -
Additions to 				property
(18,172)
CASH FLOWS FROM 				FINANCING ACTIVITIES -
Distributions to 				partners
(1,252,646)
(1,097,104)
Distributions paid 				to minority interest in real estate joint venture
(143,700)
(127,200)
Payments on 				capital
lease 				obligations
(56,506)
(49,004)
Net cash used in 				financing activities
(1,452,852)
(1,273,308)
NET 				INCREASE IN CASH AND
CASH 				EQUIVALENTS
(58,252)
(105,174)
CASH AND CASH 				EQUIVALENTS,
AT BEGINNING OF 				YEAR
740,841
635,667
CASH AND CASH 				EQUIVALENTS,
AT END OF YEAR
799,093
$ 				 740,841
SUPPLEMENTAL 				DISCLOSURE OF CASH
FLOW 				INFORMATION -
Cash paid for 				interest
(2,506)
$ 				 4,998
NON CASH 				INVESTING AND FINANCING ACTIVITIES:
Distribution 				due partners included in partners' equity
$ 				 232,523
$ 				 232,523
The accompanying notes are an integral part of these Financial Statements
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DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2008
1. GENERAL
DSI Realty Income Fund IX, a California Limited Partnership (the "Partnership"), has three general partners (DSI Properties, Inc., Robert J. Conway and Joseph W. Conway) and limited partners owning 30,693 limited partnership units, which were purchased for $500 per unit. The general partners have made no capital contributions to the Partnership and are not required to make any capital contributions in the future. The Partnership has a maximum life of 50 years and was formed on March 6, 1985, under the California Uniform Limited Partnership Act for the primary purpose of acquiring and operating real estate.
The Partnership owns mini-storage facilities located in Azusa and Monterey Park, California; Elgin and Romeoville, Illinois; Everett, Washington and owns a 70% interest in a mini-storage facility located in Aurora, CO. All facilities were purchased from Dahn Corporation ("Dahn"). Dahn is not affiliated with the Partnership. Dahn is affiliated with other partnerships in which DSI Properties, Inc. is a general partner (see Note 6).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents - The Partnership classifies its short-term investments purchased with an original maturity of three months or less as cash equivalents.
Property and Depreciation - Property is recorded at cost and is composed primarily of mini-storage facilities. Depreciation is provided using the straight-line method over an estimated useful life of 20 years for the facilities. Building improvements are depreciated over a five year period. Property under capital leases is amortized over the lesser of the lives of the respective leases or the estimated useful lives of the assets.
Income Taxes - No provision has been made for income taxes in the accompanying financial statements. The taxable income or loss of the Partnership is allocated to each partner in accordance with the terms of the Agreement of Limited Partnership. Each partner's tax status, in turn, determines the appropriate income tax for its allocated share of the Partnership's taxable income or loss. The net difference between the basis of the Partnership's assets and liabilities for federal income tax purposes and as reported for financial statement purposes for the year ended December 31, 2008 and 2007 is $92,800 and $328,802, respectively.
Revenues - Rental 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.
Net Income per Limited Partnership Unit - Net income per limited partnership unit is computed by dividing net income allocated to the limited partners by the weighted average number of limited partnership units outstanding during each year.
Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Partnership to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Impairment of Long-Lived Assets - The Partnership regularly reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected undiscounted future cash flow is less than the carrying amount of the asset, the Partnership would recognize an impairment loss to the extent the carrying value exceeded the fair value of the property. No impairment losses were required in 2008 or 2007.
Fair Value of Financial Instruments - For all financial instruments, including cash and cash equivalents, other assets, distributions due to partners, incentive management fee payable to general partners, property
management fee payable, and customer deposits and other liabilities, carrying values approximate fair values because of the short maturity of those instruments. The carrying value of the capital lease obligations approximates fair value because the terms of the instrument are similar to terms available to the Partnership for similar types of leasing agreements.
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Concentrations of Credit Risk - Financial instruments that potentially subject the Partnership to concentrations of credit risk consist primarily of cash and cash equivalents and rent receivables. The Partnership places its cash and cash equivalents with high credit quality institutions.
Recent Accounting Pronouncement - In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business Combinations," or SFAS No.141R. SFAS No. 141R replaces SFAS No. 141, "Business Combinations." SFAS No. 141R establishes principles and requirements for how an acquiror recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree, and the goodwill acquired or a gain from a bargain purchase. SFAS No. 141R also determines disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. SFAS No. 141R applies prospectively to business combinations for which the acquisition date is on or after the beginning of a fiscal year that begins on or after December 15, 2008 and has implications for acquisitions that occur prior to this date. The Partnership does not expect the adoption of SFAS No. 141R will have a material, if any, impact on its current financial position, results of operations and cash flows.
In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements," or SFAS No. 160. SFAS No. 160 amends Accounting Research Bulletin 51, "Consolidated Financial Statements," or ARB 51, and requires all entities to report noncontrolling (minority) interests in subsidiaries within equity in the consolidated financial statements, but separate from the parent shareholders' equity. SFAS No. 160 also requires any acquisitions or dispositions of noncontrolling interests that do not result in a change of control to be accounted for as equity transactions. Further, SFAS No. 160 requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated. SFAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. The Partnership does not expect the adoption of SFAS No. 160 will have a material, if any, impact on its financial position, results of operations and cash flows.
3. PROPERTY
The total cost of property and accumulated depreciation is as follows as of December 31:
				
				
Land
$ 				2,729,790
$ 				2,729,790
Buildings and 				improvements
11,142,297
				11,129,105 				
Rental trucks 				under capital leases
210,138 				
210,138 				
Total
14,082,225 				
14,069,033
Less accumulated 				depreciation
(11,313,682) 				
(11,253,591) 				
Property 				- net
$ 2,768,543
				$ 2,815,442
Depreciation expense of $43,780 and $51,413 was recorded on the rental trucks under capital leases in 2008 and 2007.
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 available for distribution on a cumulative basis, calculated as cash generated from operations less capital expenditures.
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5. BUSINESS SEGMENT INFORMATION
The following disclosure about segment reporting of the Partnership is made in accordance with the requirements of SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information." The Partnership operates in a single segment; storage facility operations, under which the Partnership rents its storage facilities to its customers on a need basis and charges rent on a predetermined rate.
6. RELATED-PARTY TRANSACTIONS
The Partnership has entered into management agreements with Dahn to operate its mini-storage facilities. The management agreements provide 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 $162,277 and $159,708, respectively. Amounts payable to Dahn at December 31, 2008 and 2007, were $12,403 and $12,871, respectively.
In 2004, the Partnership entered into truck lease agreements with KMD Trucks, LLC ("KMD"). The president of Dahn, Brian Dahn, is also a member of KMD. The truck lease agreements expired as of December 31, 2008.
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ITEM 15(2)
DSI REALTY INCOME FUND IX
(A California Real Estate Limited Partnership)
SCHEDULE III
REAL ESTATE AND ACCUMULATED DEPRECIATION
As of December 31, 2008
Notes:
Depreciation expense is 	computed using the straight-line method over an estimated useful 	life of 20 years for the buildings.
There 	are no encumbrances.
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EXHIBIT
ANNUAL REPORT TO LIMITED PARTNERS OF DSI REALTY INCOME FUND IX
Dear Limited Partner:
This report contains the Partnership's balance sheets as of December 31, 2008, and the related statements of income, changes in partners' equity (deficit) and cash flows for each of the two years ended December 31, 2008 accompanied by a report of Independent Registered Public Accounting firm. The Partnership's properties were each purchased for all cash and funded solely from subscriptions for limited partnership interests without the use of mortgage financing.
Your attention is directed to the section entitled Management's Discussion and Analysis of Financial Condition and Results of Operations for the General Partners' discussion and analysis of the financial statements and operations of the Partnership.
Average occupancy levels and revenue per square foot for each of the Partnership's properties for the years ended December 31, 2008 and 2007 were as follows:
We will keep you informed of the activities of your Fund as they develop. If you have any questions, please contact us at your convenience at (562) 493-3022. If you would like a copy of the Partnership's Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the Securities and Exchange Commission (which report includes the enclosed Financial Statements), we will forward a copy of the report to you upon written request.
			Very truly yours,
DSI REALTY INCOME FUND IX
			By: DSI Properties, Inc.
							/s/ ROBERT J. CONWAY
			By_______________________________
		ROBERT J. CONWAY, President
EXHIBIT 31.1
Rule 13a-14(a)/15d-14(a) Certification
I, Robert J. Conway, certify that:
1. I have reviewed this annual report on Form 10-K 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-15(e) and 15d-15(e) 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) 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;
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.
Date: April 14, 2009
/s/ ROBERT J. CONWAY _______________________________
Robert J. Conway
President of DSI Properties, Inc., General Partner (chief executive officer)
EXHIBIT 31.2
Rule 13a-14(a)/15d-14(a) Certification
I, Richard P. Conway, certify that:
1. I have reviewed this annual report on Form 10-K 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-15(e) and 15d-15(e) 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) 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;
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.
						Date: April 14, 2009
/s/ RICHARD P. CONWAY
__________________________________
Richard P. Conway
Senior Vice President of DSI Properties, Inc., General Partner (chief financial officer)
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 Annual Report of DSI Realty Income Fund IX (the "Partnership") on Form 10-K for the period ending December 31, 2008 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)
April 14, 2009
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 Annual Report of DSI Realty Income Fund IX (the "Partnership") on Form 10-K for the period ending December 31, 2008 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)
April 14, 2009