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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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(Mark one)



| | x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ---------------------------------------------------------------------------------------

For the quarterly period ended March 31, 2006 or



| |  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ----------------------------------------------------------------------------------------

For the transition period from
 to

Commission file number 0-22039



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WELLS REAL ESTATE FUND IX, L.P.

(Exact name of registrant as specified in its
charter)



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|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Georgia                                                        |  | 58-2126622                             
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)
|                                                               | 
|6200 The Corners Pkwy., Norcross, Georgia                      |  | 30092-3365                             
|(Address of principal executive offices)                       |  | (Zip Code)                             
|                                                               | 
|Registrants telephone number, including area code             |  | (770) 449-7800                         

N/A

(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 ̈

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer ̈Accelerated filer ̈Non-accelerated filer  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



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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q of Wells Real Estate Fund IX, L.P. (the Partnership) other than historical facts may be considered
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, in particular, statements about our plans, strategies, and
prospects and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a
guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as may, will, expect, intend,
anticipate, estimate, believe, continue, or other similar words. Specifically, we consider, among others, statements concerning future operating results and cash flows, our ability to meet future
obligations, and the amount and timing of any future distributions to limited partners to be forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this
report is filed with the Securities and Exchange Commission. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this Form 10-Q, and we do not intend to publicly update
or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are
subject to unknown risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or
impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations, provide dividends to
stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in the Partnerships Annual Report on Form 10-K for the year ended December 31, 2005 for a discussion of some of the risks
and uncertainties, although not all risks and uncertainties, which could cause actual results to differ materially from those presented in our forward-looking statements.



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WELLS REAL ESTATE FUND IX, L.P.



TABLE OF CONTENTS



|         |  |                       |  |                                                                                                                            |  |         
|-------- |  | --------------------- |  | -------------------------------------------------------------------------------------------------------------------------- |  | --------
|         |  |                       |  |                                                                                                                            |  | Page No.
|         |  |                      
|PART I.  |  | FINANCIAL INFORMATION |  |                                                                                                                           
|         |  |                       | 
|         |  | Item 1.               |  | Financial Statements                                                                                                       |  |         
|         |  |                       | 
|         |  |                       |  | Balance SheetsMarch 31, 2006 (unaudited) and December 31, 2005                                                            |  | 5       
|         |  |                       | 
|         |  |                       |  | Statements of Operations for the Three Months Ended March 31, 2006 (unaudited) and 2005 (unaudited)                        |  | 6       
|         |  |                       | 
|         |  |                       |  | Statements of Partners Capital for the Year Ended December 31, 2005 and the Three Months Ended March 31, 2006 (unaudited) |  | 7       
|         |  |                       | 
|         |  |                       |  | Statements of Cash Flows for the Three Months Ended March 31, 2006 (unaudited) and 2005 (unaudited)                        |  | 8       
|         |  |                       | 
|         |  |                       |  | Condensed Notes to Financial Statements (unaudited)                                                                        |  | 9       
|         |  |                       | 
|         |  | Item 2.               |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                      |  | 16      
|         |  |                       | 
|         |  | Item 3.               |  | Quantitative and Qualitative Disclosures about Market Risk                                                                 |  | 21      
|         |  |                       | 
|         |  | Item 4.               |  | Controls and Procedures                                                                                                    |  | 21      
|         |  |                      
|PART II. |  | OTHER INFORMATION     |  |                                                                                                                           
|         |  |                       | 
|         |  | Item 1.               |  | Legal Proceedings                                                                                                          |  | 23      
|         |  |                       | 
|         |  | Item 1A.              |  | Risk Factors                                                                                                               |  | 23      
|         |  |                       | 
|         |  | Item 2.               |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                |  | 23      
|         |  |                       | 
|         |  | Item 3.               |  | Defaults Upon Senior Securities                                                                                            |  | 23      
|         |  |                       | 
|         |  | Item 4.               |  | Submission of Matters to a Vote of Security Holders                                                                        |  | 23      
|         |  |                       | 
|         |  | Item 5.               |  | Other Information                                                                                                          |  | 23      
|         |  |                       | 
|         |  | Item 6.               |  | Exhibits                                                                                                                   |  | 23      



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PART I.    FINANCIAL STATEMENTS

The information furnished in the Partnerships accompanying balance
sheets and consolidated statements of operations, partners capital, and cash flows reflects all adjustments that are, in managements opinion, necessary for a fair and consistent presentation of the aforementioned financial statements.

The accompanying financial statements should be read in conjunction with the notes to the Partnerships financial statements and Managements
Discussion and Analysis of Financial Condition and Results of Operations included both in this report on Form 10-Q and in the Partnerships Annual Report on Form 10-K for the year ended December 31, 2005. The Partnerships results of
operations for the three months ended March 31, 2006 are not necessarily indicative of the operating results expected for the full year.



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WELLS REAL ESTATE FUND IX, L.P.



BALANCE SHEETS

ASSETS



|                             |  |                            |            |                   |   |           
|---------------------------- |  | -------------------------- | ---------- | ----------------- | - | ----------
|                             |  | (Unaudited) March 31, 2006 |            | December 31, 2005
|Investment in joint ventures |  | $                          | 16,947,904 |                   | $ | 16,900,076
|Cash and cash equivalents    |  |                            | 1,318,738  |                   |   | 1,422,651 
|Due from joint ventures      |  |                            | 333,416    |                   |   | 247,721   
|Other assets                 |  |                            | 4,250      |                   |   | 0         
|                             |  |                            |            |                   |   |           
|Total assets                 |  | $                          | 18,604,308 |                   | $ | 18,570,448
|                             |  |                            |            |                   |   |           

LIABILITIES AND PARTNERS CAPITAL



|                                                 |  |   |            |  |   |           
|------------------------------------------------ |  | - | ---------- |  | - | ----------
|Liabilities:                                     |  |   |            |  |   |           
|Accounts payable and accrued expenses            |  | $ | 37,882     |  | $ | 55,427    
|Due to affiliates                                |  |   | 7,878      |  |   | 9,914     
|Partnership distributions payable                |  |   | 297,601    |  |   | 280,915   
|                                                 |  |   |            |  |   |           
|Total liabilities                                |  |   | 343,361    |  |   | 346,256   
|                                                 |  |  
|Partners capital:                               |  |   |            |  |   |           
|Limited partners:                                |  |   |            |  |   |           
|Class A  3,259,190 units issued and outstanding |  |   | 18,260,580 |  |   | 18,224,192
|Class B  240,810 units issued and outstanding   |  |   | 0          |  |   | 0         
|General partners                                 |  |   | 367        |  |   | 0         
|                                                 |  |   |            |  |   |           
|Total partners capital                          |  |   | 18,260,947 |  |   | 18,224,192
|                                                 |  |   |            |  |   |           
|Total liabilities and partners capital          |  | $ | 18,604,308 |  | $ | 18,570,448
|                                                 |  |   |            |  |   |           

See accompanying notes.



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WELLS REAL ESTATE FUND IX, L.P.



STATEMENTS OF OPERATIONS



|                                                      |  |                                         |           |      |   |          
|----------------------------------------------------- |  | --------------------------------------- | --------- | ---- | - | ---------
|                                                      |  | (Unaudited) Three Months EndedMarch 31,
|                                                      |  | 2006                                    |           | 2005
|EQUITY IN INCOME OF JOINT VENTURES                    |  | $                                       | 381,232   |      | $ | 2,385,008
|                                                      |  |                                        
|EXPENSES:                                             |  |                                         |           |      |   |          
|Partnership administration                            |  |                                         | 46,730    |      |   | 36,417   
|Legal and accounting                                  |  |                                         | 19,390    |      |   | 13,992   
|                                                      |  |                                         |           |      |   |          
|Total expenses                                        |  |                                         | 66,120    |      |   | 50,409   
|                                                      |  |                                        
|INTEREST AND OTHER INCOME                             |  |                                         | 19,244    |      |   | 14,513   
|                                                      |  |                                         |           |      |   |          
|NET INCOME                                            |  | $                                       | 334,356   |      | $ | 2,349,112
|                                                      |  |                                         |           |      |   |          
|                                                      |  |                                        
|NET INCOME ALLOCATED TO:                              |  |                                         |           |      |   |          
|CLASS A LIMITED PARTNERS                              |  | $                                       | 333,989   |      | $ | 1,177,210
|                                                      |  |                                         |           |      |   |          
|CLASS B LIMITED PARTNERS                              |  | $                                       | 0         |      | $ | 1,171,902
|                                                      |  |                                         |           |      |   |          
|GENERAL PARTNERS                                      |  | $                                       | 367       |      | $ | 0        
|                                                      |  |                                         |           |      |   |          
|                                                      |  |                                        
|NET INCOME PER WEIGHTED-AVERAGE LIMITED PARTNER UNIT: |  |                                         |           |      |   |          
|CLASS A                                               |  | $                                       | 0.10      |      | $ | 0.36     
|                                                      |  |                                         |           |      |   |          
|CLASS B                                               |  | $                                       | 0.00      |      | $ | 4.70     
|                                                      |  |                                         |           |      |   |          
|                                                      |  |                                        
|WEIGHTED-AVERAGE LIMITED PARTNER UNITS OUTSTANDING:   |  |                                         |           |      |   |          
|CLASS A                                               |  |                                         | 3,259,190 |      |   | 3,250,652
|                                                      |  |                                         |           |      |   |          
|CLASS B                                               |  |                                         | 240,810   |      |   | 249,348  
|                                                      |  |                                         |           |      |   |          

See accompanying notes.



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WELLS REAL ESTATE FUND IX, L.P.



STATEMENTS OF PARTNERS CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2005

AND THE THREE MONTHS ENDED MARCH 31, 2006 (UNAUDITED)



|                                                                                                                      |  |                  |   |  |                  |            |                         |       |         |   |        |   |            |   |  |   |     |  |   |            |  
|--------------------------------------------------------------------------------------------------------------------- |  | ---------------- | - |  | ---------------- | ---------- | ----------------------- | ----- | ------- | - | ------ | - | ---------- | - |  | - | --- |  | - | ---------- | -
|                                                                                                                      |  | Limited Partners |   |  | General Partners |            | Total Partners Capital |      
|                                                                                                                      |  | Class A          |   |  | Class B          |            |                         |      
|                                                                                                                      |  | Units            |   |  | Amount           |            |                         | Units |         |   | Amount |   |            |  
|BALANCE, DECEMBER 31, 2004                                                                                            |  | 3,241,093        |   |  | $                | 24,078,635 |                         |       | 258,907 |   |        | $ | 345,447    |   |  | $ | 0   |  | $ | 24,424,082 |  
|                                                                                                                      |  |                  |   |  |                  |           
|Class A conversion elections                                                                                          |  | (2,763           | ) |  |                  | (19,841    | )                       |       | 2,763   |   |        |   | 19,841     |   |  |   | 0   |  |   | 0          |  
|Class B conversion elections                                                                                          |  | 20,860           |   |  |                  | 63,080     |                         |       | (20,860 | ) |        |   | (63,080    | ) |  |   | 0   |  |   | 0          |  
|Net income                                                                                                            |  | 0                |   |  |                  | 1,247,584  |                         |       | 0       |   |        |   | 1,659,344  |   |  |   | 0   |  |   | 2,906,928  |  
|Distributions of operating cash flow ($0.31 per weighted-average Class A Unit)                                        |  | 0                |   |  |                  | (1,006,821 | )                       |       | 0       |   |        |   | 0          |   |  |   | 0   |  |   | (1,006,821 | )
|Distributions of net sale proceeds ($1.88 and $8.07 per weighted-average Class A Unit and Class B Unit,
respectively) |  | 0                |   |  |                  | (6,138,445 | )                       |       | 0       |   |        |   | (1,961,552 | ) |  |   | 0   |  |   | (8,099,997 | )
|                                                                                                                      |  |                  |   |  |                  |            |                         |       |         |   |        |   |            |   |  |   |     |  |   |            |  
|BALANCE, DECEMBER 31, 2005                                                                                            |  | 3,259,190        |   |  |                  | 18,224,192 |                         |       | 240,810 |   |        |   | 0          |   |  |   | 0   |  |   | 18,224,192 |  
|                                                                                                                      |  |                  |   |  |                  |           
|Net income                                                                                                            |  | 0                |   |  |                  | 333,989    |                         |       | 0       |   |        |   | 0          |   |  |   | 367 |  |   | 334,356    |  
|Distributions of operating cash flow ($0.09 per weighted-average Class A Unit)                                        |  | 0                |   |  |                  | (297,601   | )                       |       | 0       |   |        |   | 0          |   |  |   | 0   |  |   | (297,601   | )
|                                                                                                                      |  |                  |   |  |                  |            |                         |       |         |   |        |   |            |   |  |   |     |  |   |            |  
|BALANCE, MARCH 31, 2006                                                                                               |  | 3,259,190        |   |  | $                | 18,260,580 |                         |       | 240,810 |   |        | $ | 0          |   |  | $ | 367 |  | $ | 18,260,947 |  
|                                                                                                                      |  |                  |   |  |                  |            |                         |       |         |   |        |   |            |   |  |   |     |  |   |            |  

See accompanying notes.



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WELLS REAL ESTATE FUND IX, L.P.



STATEMENTS OF CASH FLOWS



|                                                                                  |  |                                          |           |   |      |   |            |  
|--------------------------------------------------------------------------------- |  | ---------------------------------------- | --------- | - | ---- | - | ---------- | -
|                                                                                  |  | (Unaudited) Three Months Ended March 31, |          
|                                                                                  |  | 2006                                     |           |   | 2005 |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                             |  |                                          |           |   |      |   |            |  
|Net income                                                                        |  | $                                        | 334,356   |   |      | $ | 2,349,112  |  
|Operating distributions received from joint ventures                              |  |                                          | 247,709   |   |      |   | 289,797    |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                                          |           |   |      |   |            |  
|Equity in income of joint ventures                                                |  |                                          | (381,232  | ) |      |   | (2,385,008 | )
|Operating changes in assets and liabilities:                                      |  |                                          |           |   |      |   |            |  
|Increase in other assets                                                          |  |                                          | (4,250    | ) |      |   | 0          |  
|Decrease in accounts payable and accrued expenses                                 |  |                                          | (17,545   | ) |      |   | (693       | )
|(Decrease) increase in due to affiliates                                          |  |                                          | (2,036    | ) |      |   | 1,220      |  
|                                                                                  |  |                                          |           |   |      |   |            |  
|Net cash provided by operating activities                                         |  |                                          | 177,002   |   |      |   | 254,428    |  
|                                                                                  |  |                                         
|CASH FLOWS FROM INVESTING ACTIVITIES:                                             |  |                                          |           |   |      |   |            |  
|Net sale proceeds received from joint ventures                                    |  |                                          | 0         |   |      |   | 4,561,930  |  
|Investment in joint ventures                                                      |  |                                          | 0         |   |      |   | (85,648    | )
|                                                                                  |  |                                          |           |   |      |   |            |  
|Net cash provided by investing activities                                         |  |                                          | 0         |   |      |   | 4,476,282  |  
|                                                                                  |  |                                         
|CASH FLOWS FROM FINANCING ACTIVITIES:                                             |  |                                          |           |   |      |   |            |  
|Operating distributions paid to limited partners                                  |  |                                          | (280,915  | ) |      |   | 0          |  
|                                                                                  |  |                                          |           |   |      |   |            |  
|Net cash used in financing activities                                             |  |                                          | (280,915  | ) |      |   | 0          |  
|                                                                                  |  |                                          |           |   |      |   |            |  
|NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                              |  |                                          | (103,913  | ) |      |   | 4,730,710  |  
|                                                                                  |  |                                         
|CASH AND CASH EQUIVALENTS, beginning of period                                    |  |                                          | 1,422,651 |   |      |   | 4,714,150  |  
|                                                                                  |  |                                          |           |   |      |   |            |  
|CASH AND CASH EQUIVALENTS, end of period                                          |  | $                                        | 1,318,738 |   |      | $ | 9,444,860  |  
|                                                                                  |  |                                          |           |   |      |   |            |  
|                                                                                  |  |                                         
|SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:           |  |                                          |           |   |      |   |            |  
|Partnership distributions payable                                                 |  | $                                        | 297,601   |   |      | $ | 406,332    |  
|                                                                                  |  |                                          |           |   |      |   |            |  

See accompanying notes.



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WELLS REAL ESTATE FUND IX, L.P.



CONDENSED NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2006 (unaudited)



|1. | ORGANIZATION AND BUSINESS
|-- | -------------------------

Wells Real Estate Fund IX, L.P. (the
Partnership) is a Georgia public limited partnership with Leo F. Wells, III and Wells Partners, L.P. (Wells Partners), a Georgia nonpublic limited partnership, serving as its general partners (collectively, the General
Partners). Wells Capital, Inc. (Wells Capital) serves as the corporate general partner of Wells Partners. Wells Capital is a wholly owned subsidiary of Wells Real Estate Funds, Inc. Leo F. Wells, III is the president and sole
director of Wells Capital and the president, sole director, and sole owner of Wells Real Estate Funds, Inc. The Partnership was formed on August 15, 1994 for the purpose of acquiring, developing, constructing, owning, operating, improving,
leasing, and managing income-producing commercial properties for investment purposes. Upon subscription, limited partners elect to have their units treated as Class A Units or Class B Units. Limited partners shall have the right to change their
prior elections to have some or all of their units treated as Class A or Class B Units one time during each quarterly accounting period. Limited partners may vote to, among other things: (a) amend the partnership agreement, subject to
certain limitations; (b) change the business purpose or investment objectives of the Partnership; and (c) add or remove a general partner. A majority vote on any of the above-described matters will bind the Partnership without the
concurrence of the General Partners. Each limited partnership unit has equal voting rights regardless of class.

On January 5, 1996, the Partnership
commenced a public offering of its limited partnership units pursuant to a Registration Statement filed on Form S-11 under the Securities Act of 1933. The Partnership commenced active operations upon receiving and accepting subscriptions for 125,000
units on February 12, 1996. The offering was terminated on December 30, 1996, at which time the Partnership had sold approximately 2,935,931 Class A Units and 564,069 Class B Units representing capital contributions of $35,000,000.

The Partnership owns interests in all of its real estate assets through joint ventures with other entities affiliated with the General Partners. During
the periods presented, the Partnership owned interests in the following joint ventures (the Joint Ventures) and properties:



|                                                                 |  |                                                                         |  |                                                                                                                                                                                                                                                                  
|---------------------------------------------------------------- |  | ----------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Joint Venture                                                    |  | Joint Venture Partners                                                  |  | Properties                                                                                                                                                                                                                                                       
|Fund VIII and Fund IX Associates (Fund VIII-IX Associates)     |  |   Wells Real Estate Fund VIII, L.P.
  Wells Real Estate Fund IX, L.P. |  | 1. US Cellular Building A four-story office building located in Madison, Wisconsin  2. AT&T  Texas Building A one-story office building located in Farmers Branch, Texas  3. 305 Interlocken Parkway A two-story office building located in Broomfield, Colorado
|Fund VIII-IX-REIT Joint Venture (Fund VIII-IX-REIT Associates) |  |   Fund VIIIIX Associates   Wells Operating Partnership, L.P.(1)      |  | No properties owned during the periods presented                                                                                                                                                                                                                 



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|                                                                                     |  |                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Joint Venture                                                                        |  | Joint Venture Partners                                                                                                                          |  | Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                     |  |                                                                                                                                                
|The Fund IX, Fund X, Fund XI and REIT Joint Venture (Fund IX-X-XI-REIT Associates) |  |   Wells Real Estate Fund IX, L.P.   Wells Real Estate Fund X, L.P.   Wells Real Estate Fund XI, L.P.   Wells Operating Partnership, L.P.(1) |  | 4. Alstom Power  Knoxville Building(2) A
three-story office building located in Knoxville, Tennessee  5. 360 Interlocken Building A three-story office building located in Broomfield,
Colorado  6. Avaya Building
A one-story office building located in Oklahoma City, Oklahoma  7. Iomega Building A single-story warehouse and office building located in Ogden, Utah  8. 1315 West Century Drive A two-story office building located in Louisville, Colorado



| | (1) | Wells Operating Partnership, L.P. (Wells OP) is a Delaware limited partnership with Wells Real Estate Investment Trust, Inc. (Wells REIT)
serving as its general partner; Wells REIT is a Maryland corporation that qualifies as a real estate investment trust.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | This property was sold in March 2005.
| | --- | -------------------------------------

Wells Real Estate Fund VIII, L.P., Wells Real Estate Fund X, L.P, and Wells Real Estate Fund XI, L.P. are affiliated with the Partnership through common general
partners. Each of the properties described above was acquired on an all-cash basis. For further information regarding the Joint Ventures and foregoing properties, refer to the Partnerships Form 10-K for the year ended December 31, 2005.

On March 15, 2005, Fund IX-X-XI-REIT Associates sold the Alstom Power  Knoxville Building to an unrelated third party for a gross sales price
of $12,000,000. As a result of the sale, the Partnership received net sale proceeds of approximately $4,546,000 and was allocated a gain of approximately $1,964,000.



|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|-- | ------------------------------------------

Basis of
Presentation

The financial statements of the Partnership have been prepared in accordance with rules and regulations of the Securities and Exchange
Commission, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and in accordance with such rules and regulations, do not include all of the information and footnotes required by U.S. generally accepted accounting principles
(GAAP) for complete financial statements. In the opinion of the General Partners, the statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary to fairly and
consistently present the results for these periods. Results for interim periods are not necessarily indicative of full-year results. For further information, refer to the financial statements and footnotes included in the Partnerships
Form 10-K for the year ended December 31, 2005.

Investment in Joint Ventures

The Partnership has evaluated the Joint Ventures and concluded that none are variable interest entities under the provisions of Financial Accounting Standards Board
Interpretation No. (FIN) 46(R), Consolidation of Variable Interest Entities, which supersedes FIN 46 and is an interpretation of Accounting Research Bulletin (ARB) No. 51, Consolidated Financial Statements.
The Partnership does not have control over the operations of the



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Joint Ventures; however, it does exercise significant influence. Approval by the Partnership as well as the other joint venture partners is required for any
major decision or any action that would materially affect the Joint Ventures, or their real property investments. Accordingly, upon applying the provisions of Statement of Financial Accounting Standard (SFAS) No. 94,
Consolidation of All Majority-Owned Subsidiaries, ARB No. 51, and Statement of Position No. 78-9, Accounting for Investments In Real Estate Ventures, the Partnership accounts for its investments in the Joint Ventures using
the equity method of accounting, whereby original investments are recorded at cost and subsequently adjusted for contributions, distributions, and net income (loss) attributable to the Partnership. Pursuant to the terms of the joint venture
agreements, all income (loss) and distributions are allocated to joint venture partners in accordance with their respective ownership interests. Distributions of net cash from operations, if available, are generally distributed to the joint venture
partners on a quarterly basis.

Other Assets

As of
March 31, 2006, other assets is comprised of interest income receivable.

Distributions of Net Cash from Operations

Net cash from operations, if available, is generally distributed to limited partners quarterly. In accordance with the partnership agreement, such distributions are paid
first to the limited partners holding Class A Units until they have received a 10% per annum return on their respective net capital contributions, as defined. Then, such distributions are paid to the General Partners until they have
received 10% of the total amount distributed to date. Any remaining cash available for distribution is to be allocated between the limited partners holding Class A Units and the General Partners on a basis of 90% and 10%, respectively. No
distributions of net cash from operations will be made to the limited partners holding Class B Units.

Distribution of Sale Proceeds

Upon sales of properties, unless reserved, net sale proceeds will be distributed in the following order:



| |  |  | In the event that the particular property sold is sold for a price that is less than its original property purchase price, to the limited partners holding Class A Units until
they have received an amount equal to the excess of the original property purchase price over the price for which the property was sold, limited to the amount of depreciation, amortization, and cost recovery deductions taken by the limited partners
holding Class B Units with respect to such property;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners holding units, which at any time have been treated as Class B Units, until such limited partners have received an amount necessary to equal the net cash
available for distribution received by the limited partners holding Class A Units on a per-unit basis;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To all limited partners on a per-unit basis until the limited partners have received 100% of their respective net capital contribution, as defined;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To all limited partners on a per-unit basis until the limited partners have received a cumulative 10% per annum return on their respective net capital contribution, as defined;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners on a per-unit basis until the limited partners have received an amount equal to their respective preferential limited partner return (defined as the sum of a
10% per annum cumulative return on net capital contributions for all periods during which the units were treated as Class A Units and a 15% per annum cumulative return on net capital contributions for all periods during which the
units were treated as Class B Units);
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To all General Partners until they have received 100% of their capital contributions; in the event that limited partners have received aggregate cash distributions from the
Partnership over the life of their investment in excess of a return of their net capital contributions plus their preferential limited partner return, then the General Partners shall receive an additional sum equal to 25% of such excess; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Thereafter, 80% to the limited partners on a per-unit basis and 20% to the General Partners.
| | - |  | --------------------------------------------------------------------------------------------



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Allocations of Net Income, Net Loss, and Gain on Sale

For the purpose of determining allocations per the partnership agreement, net income is defined as net income recognized by the Partnership, excluding deductions for
depreciation and amortization and cost recovery and the gain on the sale of asset. Net income, as defined, of the Partnership will be allocated each year in the same proportions that net cash from operations is distributed to the partners holding
Class A Units and the General Partners. To the extent the Partnerships net income in any year exceeds net cash from operations, it will be allocated 99% to the limited partners holding Class A Units and 1% to the General Partners.

Net loss, depreciation, and amortization deductions for each fiscal year will be allocated as follows: (a) 99% to the limited partners holding Class
B Units and 1% to the General Partners until their capital accounts are reduced to zero; (b) then to any partner having a positive balance in his capital account in an amount not to exceed such positive balance; and (c) thereafter to the
General Partners.

Gain on the sale or exchange of the Partnerships properties will be allocated generally in the same manner that the net proceeds
from such sale are distributed to partners after the following allocations are made, if applicable: (i) allocations made pursuant to the qualified income offset provisions of the partnership agreement; (ii) allocations to partners having
negative capital accounts until all negative capital accounts have been restored to zero; and (iii) allocations to limited partners holding Class B Units in amounts equal to the deductions for depreciation and amortization previously allocated
to them with respect to the specific partnership property sold, but not in excess of the amount of gain on sale recognized by the Partnership with respect to the sale of such property.

Reclassifications

Certain prior year amounts have been reclassified to conform with the current year financial
statement presentation.

Recent Accounting Pronouncements

In June 2005, the Financial Accounting Standards Board (FASB) issued SFAS No. 154, Accounting Changes and Error Corrections, which replaces Accounting Principles Board Opinion No. 20, Accounting Changes,
and SFAS No. 3, Reporting Accounting Changes in Interim Financial Statements. SFAS No. 154 changes the method to account for and report changes in accounting principles and corrections of errors. Previously, most voluntary changes
in accounting principles required recognition as a cumulative effect adjustment to net income during the period in which the change was adopted. Conversely, in circumstances where applicable accounting guidance does not include specific transition
provisions, SFAS No. 154 requires retrospective application to prior periods financial statements unless it is impractical to determine either the period-specific effects or the cumulative effect of the change. SFAS No. 154 is
effective for fiscal years beginning after December 15, 2005; however, it does not change the transition provisions of any of the existing accounting pronouncements. The adoption of this statement is not expected to have a material effect on
the Partnerships financial statements.



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##### Table of Contents

|3. | INVESTMENT IN JOINT VENTURES
|-- | ----------------------------

Summary of Financial Information

Condensed financial information for the joint ventures in which the Partnership held direct interests for the three months ended March 31, 2006
and 2005, respectively, is presented below:



|                             |  |                              |           |                                  |   |                                    |  |                              |         |      |   |         |  |      |   |      |   |           |  |   |         |  |   |          
|---------------------------- |  | ---------------------------- | --------- | -------------------------------- | - | ---------------------------------- |  | ---------------------------- | ------- | ---- | - | ------- |  | ---- | - | ---- | - | --------- |  | - | ------- |  | - | ---------
|                             |  | Total Revenues               |           | Income FromContinuing Operations |   | Income FromDiscontinued Operations |  | Net Income                  
|                             |  | Three Months Ended March 31, |           | Three Months Ended March 31,     |   | Three Months Ended March 31,       |  | Three Months Ended March 31,
|                             |  | 2006                         |           | 2005                             |   | 2006                               |  | 2005                         |         | 2006 |   | 2005    |  | 2006 |   | 2005
|Fund VIII-IX Associates      |  | $                            | 1,168,378 |                                  | $ | 738,484                            |  | $                            | 733,613 |      | $ | 381,126 |  | $    | 0 |      | $ | 0         |  | $ | 733,613 |  | $ | 381,126  
|Fund IX-X-XI-REIT Associates |  |                              | 586,067   |                                  |   | 910,601                            |  |                              | 127,117 |      |   | 450,581 |  |      | 0 |      |   | 5,218,629 |  |   | 127,117 |  |   | 5,669,210
|                             |  |                              |           |                                  |   |                                    |  |                              |         |      |   |         |  |      |   |      |   |           |  |   |         |  |   |          
|                             |  | $                            | 1,754,445 |                                  | $ | 1,649,085                          |  | $                            | 860,730 |      | $ | 831,707 |  | $    | 0 |      | $ | 5,218,629 |  | $ | 860,730 |  | $ | 6,050,336
|                             |  |                              |           |                                  |   |                                    |  |                              |         |      |   |         |  |      |   |      |   |           |  |   |         |  |   |          

Condensed financial information for the joint venture in which the Partnership held an interest through its
interest in Fund VIII-IX Associates for the three months ended March 31, 2006 and 2005, respectively, is presented below:



|                             |  |                              |     |                                |   |      |                                    |   |                              |   |  |      |         |      |  |      |   |  |      |        |  |   |        |   |  |   |       
|---------------------------- |  | ---------------------------- | --- | ------------------------------ | - | ---- | ---------------------------------- | - | ---------------------------- | - |  | ---- | ------- | ---- |  | ---- | - |  | ---- | ------ |  | - | ------ | - |  | - | ------
|                             |  | Total Revenues               |     | Loss FromContinuing Operations |   |      | Income FromDiscontinued Operations |   | Net Income (Loss)           
|                             |  | Three Months Ended March 31, |     | Three Months Ended March 31,   |   |      | Three Months Ended March 31,       |   | Three Months Ended March 31,
|                             |  | 2006                         |     | 2005                           |   | 2006 |                                    |   | 2005                         |   |  | 2006 |         | 2005 |  | 2006 |   |  | 2005
|Fund VIII-IX-REIT Associates |  | $                            | 837 |                                | $ | 0    |                                    | $ | (4,399                       | ) |  | $    | (15,732 | )    |  | $    | 0 |  | $    | 38,658 |  | $ | (4,399 | ) |  | $ | 22,926
|                             |  |                              |     |                                |   |      |                                    |   |                              |   |  |      |         |      |  |      |   |  |      |        |  |   |        |   |  |   |       

The Partnership allocates operating income (loss) and gain (loss) on the sale of properties generated by the Joint
Ventures to its Class A and Class B limited partners pursuant to the respective partnership agreement provisions outlined in Note 2. The components of income (loss) from discontinued operations recognized by the Joint Ventures are provided
below:



|                             |  |                 |   |                |   |       |  |                 |   |              |   |         |  |   |           |  |   |          
|---------------------------- |  | --------------- | - | -------------- | - | ----- |  | --------------- | - | ------------ | - | ------- |  | - | --------- |  | - | ---------
|                             |  | March 31, 2006  |   | March 31, 2005
|                             |  | OperatingIncome |   | Gainon Sale    |   | Total |  | OperatingIncome |   | Gain on Sale |   | Total  
|Fund VIII-IX Associates      |  | $               | 0 |                | $ | 0     |  | $               | 0 |              | $ | 0       |  | $ | 0         |  | $ | 0        
|Fund VIII-IX-REIT Associates |  |                 | 0 |                |   | 0     |  |                 | 0 |              |   | 38,658  |  |   | 0         |  |   | 38,658   
|Fund IX-X-XI-REIT Associates |  |                 | 0 |                |   | 0     |  |                 | 0 |              |   | 146,030 |  |   | 5,072,599 |  |   | 5,218,629
|                             |  |                 |   |                |   |       |  |                 |   |              |   |         |  |   |           |  |   |          
|                             |  | $               | 0 |                | $ | 0     |  | $               | 0 |              | $ | 184,688 |  | $ | 5,072,599 |  | $ | 5,257,287
|                             |  |                 |   |                |   |       |  |                 |   |              |   |         |  |   |           |  |   |          

Due from Joint Ventures

As presented in the accompanying balance sheets, due from joint ventures as of March 31, 2006 and December 31, 2005 represents operating cash flow generated by the Joint Ventures for the three months ended
March 31, 2006 and December 31, 2005, respectively, which is attributable to the Partnership.



|4. | RELATED-PARTY TRANSACTIONS
|-- | --------------------------

Management and Leasing Fees

The Partnership entered into a property management and leasing agreement with Wells Management Company, Inc. (Wells Management), an
affiliate of the General Partners. In consideration for the management and leasing of the Partnerships properties, the Joint Ventures pay Wells Management management and leasing fees equal to: (a) of the gross revenues collected monthly,
3% for management services and 3% for leasing services, plus a separate fee for the one-time initial lease-up of newly constructed properties in an amount not to exceed the fee customarily charged in arms-length transactions



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by others rendering similar services in the same geographic area for similar properties or (b) in the case of commercial properties leased on a
long-term net basis (ten or more years), 1% of the gross revenues except for initial leasing fees equal to 3% of the gross revenues over the first five years of the lease term. Management and leasing fees are paid by the Joint Ventures and,
accordingly, included in equity in income (loss) of joint ventures in the accompanying statements of operations. The Partnerships share of management and leasing fees and lease acquisition costs incurred through the Joint Ventures is $28,285
and $37,094 for the three months ended March 31, 2006 and 2005, respectively.

Administration Reimbursements

Wells Capital, the corporate general partner of Wells Partners, one of our general partners, and Wells Management perform certain administrative services for the
Partnership, relating to accounting and other partnership administration, and incurs the related expenses. Such expenses are allocated among other entities affiliated with the General Partners based on estimates of the amount of time dedicated to
each fund by individual administrative personnel. In the opinion of the General Partners, this allocation is a reasonable estimation of such expenses. The Partnership reimbursed Wells Capital and Wells Management for administrative expenses of
$21,795 and $27,142 for the three months ended March 31, 2006 and 2005, respectively. In addition, Wells Capital pays for certain operating expenses of the Partnership (bill-backs) directly and invoices the Partnership for the
reimbursement thereof on a monthly basis. As of March 31, 2006 and December 31, 2005, due to affiliates balances represent administrative reimbursements and bill-backs due to Wells Capital and/or Wells Management.

Economic Dependency

We have engaged Wells Capital and Wells
Management to provide certain essential services, including supervision of the management and leasing of our properties, asset acquisition and disposition services, as well as other administrative responsibilities for us including accounting
services, investor communications and relations. These agreements are terminable by either party upon 60 days written notice. As a result of these relationships, we are dependent upon Wells Capital and Wells Management.

Wells Capital and Wells Management are all owned and controlled by Wells Real Estate Funds, Inc. (WREF). The operations of Wells Capital and Wells Management
represent substantially all of the business of WREF. Accordingly, we focus on the financial condition of WREF when assessing the financial condition of Wells Capital and Wells Management. In the event that WREF was to become unable to meet its
obligations as they become due, we might be required to find alternative service providers.

Future net income generated by WREF will be largely dependent
upon the amount of fees earned by Wells Capital and Wells Management based on, among other things, the level of investor proceeds raised from the sale of common stock for certain WREF-sponsored programs and the volume of future acquisitions and
dispositions of real estate assets by WREF-sponsored programs. As of March 31, 2006, the General Partners believe that WREF generates adequate cash flow from operations and has adequate liquidity available in the form of cash on hand and
current receivables necessary to meet its current and future obligations as they become due.

Litigation Against Related Parties

During early 2004, a putative class action complaint was filed against, among others, Leo. F. Wells, III, one of our General Partners, Wells Capital, the corporate
general partner of Wells Partners, our other general partner, and Wells Management (Hendry et al. v. Leo F. Wells, III et al., Superior Court of Gwinnett County, Georgia, Civil Action No. 04-A-2791-2). The Court granted the
plaintiffs motion to permit voluntary dismissal of this suit, and the case was subsequently dismissed without prejudice. In November 2004, the same plaintiffs filed a second putative class action complaint against, among others,
Mr. Wells, Wells Capital, and Wells Management (Hendry et al. v. Leo F. Wells, III et al., Superior Court of Gwinnett County, Georgia Civil Action No. 04A-13051-6). The second action alleges, among other things, that:
(i) Mr. Wells and Wells Capital breached



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their fiduciary duties to the limited partners of Wells Real Estate Fund I (Fund I), a previously syndicated real estate partnership having
common general partners, in connection with certain disclosures and prior actions relating to the distribution of net sale proceeds, (ii) the defendants breached an alleged contract arising out of a June 2000 consent solicitation to the limited
partners of Fund I relating to an alleged waiver of deferred management fees, and (iii) certain misrepresentations and omissions in an April 2002 consent solicitation to the limited partners of Fund I caused that consent solicitation to be
materially misleading. The plaintiffs seek, among other remedies, judgment against Mr. Wells and Wells Capital, jointly and severally, in an amount to be proven at trial; punitive damages; disgorgement of fees earned by the General Partners;
enforcement of the alleged contract relating to the alleged waiver of deferred management fees; and an award to the plaintiffs of their attorneys fees, costs, and expenses. On January 28, 2005, the defendants filed motions for summary
judgment and motions to dismiss the plaintiffs claims. Pursuant to orders entered July 1, 2005, the Court granted the defendants motions to dismiss and for summary judgment on all counts in the complaint. Thus, this action has now
been dismissed, subject to the plaintiffs right to file a notice of appeal within the required time period. On August 3, 2005, the plaintiffs filed a motion requesting the Court to vacate and re-enter the orders to give the plaintiffs an
opportunity to file a motion for reconsideration or notice of appeal. On February 15, 2006, the Court heard argument on the plaintiffs motion to vacate and to re-enter the judgments previously entered on July 1, 2005. Following the
argument, the Court stated orally from the bench that he would grant the motion, so the judgments could be re-entered to allow the plaintiffs thirty days within which to file a notice of appeal. The Court has not yet entered an order granting this
motion.

On or about August 8, 2005, the defendants filed a motion for attorneys fees and expenses of litigation. On or about August 12,
2005, the plaintiffs filed a motion for attorneys fees and expenses of litigation as to one defense asserted by the defendants. On April 20, 2006, the Court held a hearing addressing only the liability aspects of the defendants and
the plaintiffs motions for attorneys fees and expenses. The Court has not yet ruled on either partys motion.



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##### Table of Contents

|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATION
|------- | -------------------------------------------------------------------------------------

The following discussion and analysis should be read in conjunction with the accompanying financial statements and notes thereto. See also Cautionary Note Regarding Forward-Looking Statements preceding
Part I, as well as the notes to our financial statements and Managements Discussion and Analysis of Financial Condition and Results of Operations provided in our Annual Report on Form 10-K for the year ended December 31, 2005.

Overview

Management believes that the Partnership typically
operates through the following five key life cycle phases. The duration of each phase is dependent upon various economic, industry, market, and other internal/external factors. Some overlap naturally exists in the transition from one phase to the
next.



| |  |  | Fundraising phase
| | - |  | -----------------

The period during which the
Partnership is raising capital through the sale and issuance of limited partner units to the public;



| |  |  | Investing phase
| | - |  | ---------------

The period during which the
Partnership invests the capital raised during the fundraising phase, less upfront fees, into the acquisition of real estate assets;



| |  |  | Holding phase
| | - |  | -------------

The period during which the
Partnership owns and operates its real estate assets during the initial lease terms of the tenants;



| |  |  | Positioning-for-sale phase
| | - |  | --------------------------

The period
during which the leases in place at the time of acquisition expire and, thus, the Partnership expends time, effort, and funds to re-lease such space to existing and/or new tenants. Following the holding phase, the Partnership continues to own and
operate the real estate assets, evaluate various options for disposition, and market the real estate assets for sale; and



| |  |  | Disposition-and-liquidation phase
| | - |  | ---------------------------------

The period
during which the Partnership sells its real estate investments, distributes net sale proceeds to the partners, liquidates, and terminates the Partnership.

Portfolio Overview

We are in the holding phase of our life cycle. We own interests in seven assets, after the sales of 15253 Bake Parkway
and the Alstom Power  Knoxville Building. Our focus at this time involves increasing the occupancy level within the portfolio and concentrating on re-leasing and marketing efforts that we believe will deliver the best operating performance for
our limited partners.

With the completion of the Flextronics International USA, Inc. (Flextronics) lease at 305 Interlocken Parkway and the
completion of a lease after the close of the quarter for the remaining vacant space at the 360 Interlocken Building, six of the properties are now 100% leased. However, we are facing some near-term leasing issues that may negatively affect our
future operating performance since 1315 West Century Drive is currently vacant. We are aggressively working with prospective tenants in this market to minimize the negative financial impact, as evidenced by the execution of the aforementioned
leases.

The first quarter 2006 operating distributions to limited partners holding Class A Units increased slightly from the fourth quarter 2005. We
anticipate that operating distributions will remain low or be reserved in the near-term as we fund our share of the capital improvements anticipated for the AT&T  Texas Building and re-leasing costs anticipated for the US Cellular
Building, 1315 West Century Drive, and the 360 Interlocken Building. As we move into 2006 and the outcome of the leasing efforts become known, we will evaluate if distributions of the remaining net sale proceeds are appropriate.



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##### Table of Contents

Property Summary

As
we continue to operate in the holding phase, we will continue to focus on re-leasing vacant space and space that may become vacant upon the expiration of our current leases. In doing so, we will seek to maximize returns to the limited partners by
negotiating long-term leases at market rental rates while attempting to minimize down time, re-leasing expenditures, ongoing property level costs, and portfolio costs. As we move into the positioning-for-sale and disposition-and-liquidation phases,
our attention will shift to locating suitable buyers and negotiating purchase-sale contracts that will attempt to maximize the total return to the limited partners and minimize contingencies and our post-closing involvement with the buyer.

Information relating to the properties owned, or previously owned, by the Joint Ventures is provided below:



| |  |  | The 15253 Bake Parkway building sold on December 2, 2004.
| | - |  | ---------------------------------------------------------



| |  |  | The Alstom Power  Knoxville Building sold on March 15, 2005.
| | - |  | -------------------------------------------------------------



| |  |  | The US Cellular Building, located in Madison, Wisconsin, is 100% leased through May 2007.
| | - |  | -----------------------------------------------------------------------------------------



| |  |  | The AT&T  Texas Building, located in Farmers Branch, Texas, is 100% leased through July 2011.
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | The 305 Interlocken Parkway property is located in the Broomfield submarket of Denver, Colorado. During the fourth quarter of 2005, we signed a lease with Flextronics for the entire
building through August 2011.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The 360 Interlocken Building is located in the Broomfield submarket of Denver, Colorado. The majority of this building is leased to GAIAM, Inc. through May 2008. After the close of
the quarter, we signed a new lease increasing the building occupancy to 100%.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Avaya Building, located in Oklahoma City, Oklahoma, is 100% leased through January 2008.
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | The Iomega Building, located in Ogden, Utah, outside Salt Lake City, is 100% leased through April 2009.
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | The 1315 West Century Drive property is located in Louisville, Colorado, adjacent to the Broomfield submarket. The lease for this property expired in April 2005, and this property
is currently vacant. We are aggressively pursuing leasing opportunities for this property.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Liquidity and Capital Resources

Overview

Our operating strategy entails funding
expenditures related to the recurring operations of the Joint Ventures properties and the portfolio with operating cash flows, including current and prior period operating distributions received from the Joint Ventures, and assessing the
amount of remaining cash flows that will be required to fund known future re-leasing costs and other capital improvements. Any residual operating cash flows are generally considered available for distribution to the Class A limited partners
and, unless reserved, are generally paid quarterly. As a result, the ongoing monitoring of our cash position is critical to ensuring that adequate liquidity and capital resources are available. Economic downturns in one or more of our core markets
could adversely impact the ability of our tenants to honor lease payments and our ability to re-lease space on favorable terms as leases expire or space otherwise becomes vacant. In the event of either situation, cash flows and, consequently, our
ability to provide funding for capital needs could be adversely affected.

Short-Term Liquidity

During the three months ended March 31, 2006, we generated net operating cash flows, including operating distributions received from the Joint Ventures, of
approximately $177,000, as compared to approximately $254,000 for the three months ended March 31, 2005. The 2006 decline in net operating cash flows is primarily



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attributable to (i) the payment of accrued taxes in the first quarter of 2006, and (ii) the corresponding decline in operating distributions
received from joint ventures further described below. Distributions from the Joint Ventures are generally representative of rental revenues and tenant reimbursements, less property operating expenses, management fees, general administrative
expenses, and capital expenditures.

Operating distributions from the Joint Ventures have declined primarily as a result of (i) lost cash flows due to
the sale of the Alstom Power  Knoxville Building in March 2005, (ii) funding leasing costs and capital expenditures at the 360 Interlocken Building in 2005, and (iii) lost cash flows due to the expiration of the lease of the sole
tenant of 1315 West Century Drive in April 2005.

Future operating distributions to limited partners are expected to remain low or be reserved in order to
fund our pro-rata share of anticipated capital improvements for the AT&T  Texas Building and anticipated re-leasing costs for the US Cellular Building, 1315 West Century, and the 360 Interlocken Building. At this time, we expect to
continue to generate cash flows from operations, including distributions from the Joint Ventures, sufficient to cover our estimated future operating expenses. Future operating distributions paid to limited partners will be largely dependent upon the
amount of cash generated from the Joint Ventures, our expectations of future cash flows, and determination of near-term cash needs for tenant re-leasing costs and other capital improvements for properties owned by the Joint Ventures.

We believe that the cash on hand and operating distributions due from the Joint Ventures are sufficient to cover our working capital needs, including liabilities of
approximately $343,000 as of March 31, 2006. Our General Partners anticipate using operating cash flow and net sale proceeds to fund our proportionate share of capital expenditures noted above over the next twelve months.

Long-Term Liquidity

We expect that our future sources of capital
will be primarily derived from operating cash flows generated from the Joint Ventures and net proceeds generated from the selective and strategic sale of properties. Our future long-term liquidity requirements will include, but not be limited to,
funding tenant improvements, renovations, expansions and other significant capital improvements necessary for properties owned through the Joint Ventures. We expect to continue to use substantially all future net cash flows from operations to
provide funding for such requirements. Future cash flows from operating activities will be primarily affected by distributions received from the Joint Ventures, which are dependent upon net operating income generated by the Joint Ventures
properties, less reserves, for known capital expenditures.

Capital Resources

The Partnership is an investment vehicle formed for the purpose of acquiring, owning, and operating income-producing real properties, or investing in joint ventures formed for the same purpose, and has invested all of
the partners original capital contributions. Thus, it is unlikely that we will acquire interests in any additional properties or joint ventures. Historically, our investment strategy has generally involved acquiring properties that are
pre-leased to creditworthy tenants on an all-cash basis through joint ventures with affiliated partnerships.

The Joint Ventures fund capital expenditures
primarily related to building improvements for the purpose of maintaining the quality of our properties, and tenant improvements for the purpose of readying its properties for re-leasing. As leases expire, we will work with the Joint Ventures to
attempt to re-lease space to an existing tenant or market the space to prospective new tenants. Generally, tenant improvements funded in connection with lease renewals require less capital than those funded in connection with new leases. However,
external conditions, such as the supply of and demand for comparable space available within a given market, drive capital costs as well as rental rates. Any capital or other expenditures not provided for by the operations of the Joint Ventures will
be required to be funded by the partnership and respective joint venture partners on a pro-rata basis.



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##### Table of Contents

Operating cash flows, if available, are generally distributed from the Joint Ventures to the Partnership approximately
one month following calendar quarter-ends. Our cash management policy typically includes first utilizing current period operating cash flow until depleted, at which point operating reserves are utilized to fund capital and other required
expenditures. In the event that current and prior period accumulated operating cash flows are insufficient to fund such costs, net property sale proceeds reserves, if available, would then be utilized.

As of March 31, 2006, we have received, used, distributed, and held net sale proceeds allocated to the Partnership from the sale of properties as presented below:



|                                                |  |                   |     |        |                                       |         |  |                                              |           |                          |   |                                                               |  |                                                      |  |   |           |  |   |          
|----------------------------------------------- |  | ----------------- | --- | ------ | ------------------------------------- | ------- |  | -------------------------------------------- | --------- | ------------------------ | - | ------------------------------------------------------------- |  | ---------------------------------------------------- |  | - | --------- |  | - | ---------
|Property                                        |  | Net
Sale Proceeds |     |        | Partnerships Approximate Ownership % |         |  | Net
SaleProceeds Allocated to thePartnership |           | Use of Net Sale Proceeds |   | Net Sale Proceeds Distributed toPartners as of March 31, 2006 |  | Undistributed Net Sale Proceeds as of March 31, 2006
|                                                |  |                   |     | Amount |                                       | Purpose |  |                                             
|                                                |  |                   |     |        |                                       |         | 
|305 Interlocken                                 |  | $    800,000      | (1) |        | 45.2                                  | %       |  | $                                            | 361,626   |                          | $ | 0                                                             |  |                                                     |  | $ | 361,626   |  | $ | 0        
|Parkway                                         |  |                   |     |        |                                       |         |  |                                              |           |                          |   |                                                               |  |                                                      |  |   |           |  |   |          
|                                                |  |                   |     |        |                                       |         | 
|15253 Bake Parkway(sold in 2004)                |  | 11,892,035        |     |        | 38.1                                  | %       |  |                                              | 4,526,770 |                          |   | 237,910                                                       |  | Re-leasing 15253 Bake Parkway (2004)                 |  |   | 4,288,860 |  |   | 0        
|                                                |  |                   |     |        |                                       |         | 
|Alstom Power  Knoxville Building(sold in 2005) |  | 11,646,089        |     |        | 39.0                                  | %       |  |                                              | 4,545,538 |                          |   | 0                                                             |  |                                                     |  |   | 3,449,511 |  |   | 1,096,027
|                                                |  |                   |     |        |                                       |         |  |                                              |           |                          |   |                                                               |  |                                                      |  |   |           |  |   |          
|                                                |  |                   |     |        |                                       |         | 
|                                                |  |                   |     |        |                                       |         |  | $                                            | 9,433,934 |                          | $ | 237,910                                                       |  |                                                      |  | $ | 8,099,997 |  | $ | 1,096,027
|                                                |  |                   |     |        |                                       |         |  |                                              |           |                          |   |                                                               |  |                                                      |  |   |           |  |   |          



| | (1) | Represents payment received for unamortized tenant improvements in connection with the
Cirrus Logic, Inc. lease termination.
| | --- | ----------------------------------------------------------------------------------------------------------------------------

Upon evaluating the capital needs of the properties in which we currently hold an interest, our
General Partners have estimated that reserves of net sale proceeds of approximately $1,096,000 will be required to fund the Partnerships pro-rata share of the anticipated costs in connection with capital improvements for the AT&T 
Texas Building and the anticipated re-leasing costs for the US Cellular Building, 1315 West Century Drive, and the 360 Interlocken Building.

Results of
Operations

Equity in Income of Joint Ventures

Equity in income of Joint Ventures was $381,232 and $2,385,008 for the three months ended March 31, 2006 and 2005, respectively. The decrease for the three months ended March 31, 2006, as compared to the three months ended
March 31, 2005, is primarily attributable to (i) the recognition of the gain on the sale of the Alstom Power  Knoxville Building in March 2005, (ii) a decline in operating income resulting from the sale of the Alstom Power
 Knoxville Building, and (iii) a decline in operating income resulting from the expiration of the lease for the sole tenant of 1315 West Century Drive in April 2005. We expect equity in income of Joint Ventures to increase going forward
as a result of increased occupancy at the 360 Interlocken Building.

Expenses

Our total expenses were $66,120 and $50,409 for the three months ended March 31, 2006 and 2005, respectively. The increase is primarily a result of an increase in legal fees and printing costs resulting from
additional reporting and regulatory requirements. We anticipate additional increases in our administrative expenses in future periods resulting from increased costs relating to compliance with reporting and regulatory requirements.



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Interest and Other Income

Interest and other income was $19,244 and $14,513 for the three months ended March 31, 2006 and 2005, respectively. The increase is primarily a result of an increase in the daily interest yield. Future levels of interest income will be
largely dependent upon the level of net sale proceeds held based on the timing of future dispositions and net sale proceeds distributions to the investors.

Inflation

We are exposed to inflation risk as income from long-term leases is the primary source of our cash flows from operations. There
are provisions in the majority of our tenant leases that would protect us from the impact of inflation. These provisions include rent steps, reimbursement billings for operating expense pass-through charges, real estate tax and insurance
reimbursements on a per-square-foot basis, or in some cases, annual reimbursement of operating expenses above a certain per-square-foot allowance. However, due to the long-term nature of our leases, the leases may not readjust their reimbursement
rates frequently enough to cover inflation.

Application of Critical Accounting Policies

Summary

Our accounting policies have been established to conform with
GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If managements judgment or interpretation of the facts
and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus, resulting in a different presentation of the financial statements. Additionally, other companies
may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses.

Below is a
discussion of the accounting policies used by the Partnership and the Joint Ventures, which are considered to be critical in that they may require complex judgment in their application or require estimates about matters that are inherently
uncertain.

Investment in Real Estate Assets

We will
be required to make subjective assessments as to the useful lives of our depreciable assets. Management considers the period of future benefit of the asset to determine the appropriate useful lives. These assessments have a direct impact on net
income. We expect that the estimated useful lives of the Joint Ventures assets by class will be as follows:



|                      |  |                                       
|--------------------- |  | --------------------------------------
|Buildings             |  | 40 years                              
|Building improvements |  | 5-25 years                            
|Land improvements     |  | 20 years                              
|Tenant improvements   |  | Shorter of lease term or economic life

In the event that the Joint Ventures utilize inappropriate useful lives or methods of depreciation, our net income
would be misstated.

Valuation of Real Estate Assets

We continually monitor events and changes in circumstances that could indicate that the carrying amounts of the real estate assets in which we have an ownership interest, either directly or through investments in the Joint Ventures, may not
be recoverable. When indicators of potential impairment are present which indicate that the



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carrying amounts of real estate assets may not be recoverable, management assesses the recoverability of the real estate assets by determining whether the
carrying value of the real estate assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not
exceed the carrying value, management adjusts the real estate assets to the fair value, as defined by SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, and recognizes an impairment loss. Estimated fair values
are calculated based on the following information, dependent upon availability, in order of preference: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present value of undiscounted cash
flows, including estimated salvage value. We have determined that there has been no impairment in the carrying value of any of the real estate assets held as of March 31, 2006.

Projections of expected future cash flows require management to estimate future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, discount rates, the
number of months it takes to re-lease the property, and the number of years the property is held for investment. The use of inappropriate assumptions in the future cash flow analysis would result in an incorrect assessment of the propertys
future cash flows and fair value, and could result in the overstatement of the carrying value of real estate assets held by the Joint Ventures and net income of the Partnership.

Related-Party Transactions

We have entered into agreements with Wells Capital and Wells Management, affiliates of
our General Partners, and their affiliates, whereby we pay certain fees and expense reimbursements to Wells Capital, Wells Management, and their affiliates for asset management; the management and leasing of our properties; administrative services
relating to accounting, property management, and other partnership administration; and incur the related expenses. See Note 4 to our financial statements included in this report for a description of these fees and expense reimbursements we have
incurred.

Potential Tax Impact on Limited Partners Holding Class B Units  American Jobs Creation Act of 2004

The American Jobs Creation Act of 2004 added Section 470 to the Internal Revenue Code, which provides certain limitations on the utilization of losses by investors
that are allocable to leased property owned by a partnership having both taxable and tax-exempt partners such as the Partnership. In March 2005, the Internal Revenue Service (IRS) issued IRS Notice 2005-29, which announced that
the IRS would not apply Section 470 to partnerships for the taxable year 2004 based solely on the fact that a partnership had both taxable and tax-exempt partners. In December 2005, the IRS issued IRS Notice 2006-2 extending the period for
transitional relief through the 2005 tax year; however, it is important to note that IRS Notices 2005-29 and 2006-2 provide relief for partnerships only for tax years 2004 and 2005. Although the IRS has indicated that it is continuing to study the
application of Section 470 to partnerships, such as the Partnership, unless further legislation is enacted to address this issue, or some other form of relief from the provisions of Section 470 of the American Jobs Creation Act of 2004 is
granted, beginning in tax year 2006, and thereafter, passive losses allocable to limited partners holding Class B Units may only be used to offset passive income generated from the same property or within the same fund.



|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------

Since
we do not borrow any money, make any foreign investments, or invest in any market risk-sensitive instruments, we are not subject to risks relating to interest rates, foreign current exchange rate fluctuations, or the other market risks contemplated
by Item 305 of Regulation S-K.



|ITEM 4. | CONTROLS AND PROCEDURES
|------- | -----------------------

We carried out an evaluation, under the
supervision and with the participation of management of Wells Capital, the corporate general partner of one of our General Partners, including the Principal Executive Officer and



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Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rule 13a-15(e) of the
Securities Exchange Act of 1934 as of the end of the period covered by this report. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as
of the end of the period covered by this quarterly report in providing a reasonable level of assurance that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed,
summarized, and reported within the time periods specified in applicable SEC rules and forms, including providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our
management, including our Principal Executive Officer and our Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There were no significant changes in our internal control over financial reporting during the quarter ended March 31, 2006 that have materially affected, or are likely to materially affect, our internal control over financial
reporting.



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PART II.    OTHER INFORMATION



|ITEM 1. | LEGAL PROCEEDINGS
|------- | -----------------

We are from time to time a party to other legal
proceedings, which arise in the ordinary course of our business. We are not currently involved in any litigation the outcome of which would, in managements judgment based on information currently available, have a material adverse effect on
our results of operations or financial condition, nor is management aware of any such litigation threatened against us during the quarter ended March 31, 2006, requiring disclosure under Item 103 of Regulation S-K.



|ITEM 1A. | RISK FACTORS
|-------- | ------------

There have been no material changes from the risk
factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2005.



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



|(a) | We did not sell any equity securities that were not registered under the Securities Act of 1933 during the quarter ended March 31, 2006.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------



|(b) | Not applicable.
|--- | ---------------



|(c) | We did not redeem any securities during the quarter ended March 31, 2006.
|--- | -------------------------------------------------------------------------



|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES
|------- | -------------------------------



|(a) | We were not subject to any indebtedness and, therefore, did not default with respect to any indebtedness during the quarter ended March 31, 2006.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Not applicable.
|--- | ---------------



|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|------- | ---------------------------------------------------

No matters
were submitted to a vote of our limited partners during the quarter ended March 31, 2006.



|ITEM 5. | OTHER INFORMATION
|------- | -----------------



|(a) | During the quarter ended March 31, 2006, there was no information required to be disclosed in a report on Form 8-K which was not disclosed in a report on Form 8-K.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Not applicable.
|--- | ---------------



|ITEM 6. | EXHIBITS
|------- | --------

The Exhibits to this report are set forth on Exhibit
Index to First Quarter Form 10-Q attached hereto.



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SIGNATURES

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



|             |  |  |  |                                                                                                    |  |                            
|------------ |  |  |  | -------------------------------------------------------------------------------------------------- |  | ---------------------------
|             |  |  |  | WELLS REAL ESTATE FUND IX, L.P. (Registrant)                                                      
|             |  |  | 
|             |  |  |  | By:                                                                                                |  | WELLS PARTNERS, L.P.       
|             |  |  |  |                                                                                                    |  | (General Partner)          
|             |  |  | 
|             |  |  |  | By:                                                                                                |  | WELLS CAPITAL, INC.        
|             |  |  |  |                                                                                                    |  | (Corporate General Partner)
|             |  | 
|May 11, 2006 |  |  |  | /S/    LEO F. WELLS,
III                                                                          
|             |  |  |  | Leo F. Wells, III President, Principal
Executive Officer, and Sole Director of Wells Capital, Inc.
|             |  | 
|May 11, 2006 |  |  |  | /S/    DOUGLAS P.
WILLIAMS                                                                        
|             |  |  |  | Douglas P. Williams Principal Financial
Officer of Wells Capital, Inc.                            



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EXHIBIT INDEX

TO

FIRST QUARTER FORM 10-Q

OF

WELLS REAL ESTATE FUND IX, L.P.



|            |  |                                                                                                                               
|----------- |  | ------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                   
|            | 
|31.1        |  | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                        
|            | 
|31.2        |  | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                        
|            | 
|32.1        |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002