FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
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
0-15666
CNL Income Fund, Ltd.
(Exact name of registrant as specified in its charter)
Florida 59-2666264
(State or other juris- (I.R.S. Employer
diction of incorporation Identification No.)
or organization)
400 E. South Street, #500
Orlando, Florida 32801
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number
(including area code) (407) 422-1574
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 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
<PAGE>
CONTENTS
Part I Page
Item 1. Financial Statements:
Condensed Balance Sheets 1
Condensed Statements of Income 2
Condensed Statements of Partners' Capital 3
Condensed Statements of Cash Flows 4
Notes to Condensed Financial Statements 5-7
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 8-12
Part II
Other Information 13
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
September 30, December 31,
ASSETS 1997 1996
------------- --------
Land and buildings on operating
leases, less accumulated
depreciation of $2,120,790
and $2,108,774 $7,374,452 $8,091,154
Investment in and due from joint
ventures 649,915 990,307
Cash and cash equivalents 692,093 159,379
Restricted cash 793,869 -
Receivables, less allowance for
doubtful accounts of $3,092 and
$1,413 1,908 180,248
Prepaid expenses 5,650 4,465
Lease costs, less accumulated
amortization of $21,250 and
$19,375 28,750 30,625
Accrued rental income 26,404 23,599
---------- ----------
$9,573,041 $9,479,777
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 945 $ 2,131
Accrued and escrowed real estate
taxes payable 6,983 525
Distributions payable 316,221 316,221
Due to related parties 105,944 95,012
Rents paid in advance and deposits 28,441 20,711
---------- ----------
Total liabilities 458,534 434,600
Partners' capital 9,114,507 9,045,177
---------- ----------
$9,573,041 $9,479,777
========== ==========
See accompanying notes to condensed financial statements.
1
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
-------- -------- ---------- -------
<S> <C>
Revenues:
Rental income from
operating leases $253,305 $270,279 $ 780,333 $ 810,930
Interest and other
income 6,517 7,752 14,314 24,045
-------- -------- ---------- ----------
259,822 278,031 794,647 834,975
-------- -------- ---------- ----------
Expenses:
General operating and
administrative 19,477 21,933 63,833 71,707
Professional services 3,227 2,250 9,136 8,795
Real estate taxes 1,101 1,133 3,305 3,398
State and other taxes - - 3,538 5,260
Depreciation and
amortization 50,958 52,553 156,060 157,655
-------- -------- ---------- ----------
74,763 77,869 235,872 246,815
-------- -------- ---------- ----------
Income Before Equity in
Earnings of Joint
Ventures and Gain on
Sale of Land and
Building 185,059 200,162 558,775 588,160
Equity in Earnings of
Joint Ventures 172,680 27,632 226,035 82,535
Gain on Sale of Land
and Building 233,183 - 233,183 19,000
-------- -------- ---------- ----------
Net Income $590,922 $227,794 $1,017,993 $ 689,695
======== ======== ========== ==========
Allocation of Net Income:
General partners $ 4,999 $ 2,278 $ 9,270 $ 6,707
Limited partners 585,923 225,516 1,008,723 682,988
-------- -------- ---------- ----------
$590,922 $227,794 $1,017,993 $ 689,695
======== ======== ========== ==========
Net Income Per Limited
Partner Unit $ 19.53 $ 7.52 $ 33.62 $ 22.77
======== ======== ========== ==========
Weighted Average Number
of Limited Partner
Units Outstanding 30,000 30,000 30,000 30,000
======== ======== ========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Nine Months Ended Year Ended
September 30, December 31,
1997 1996
----------------- -----------
General partners:
Beginning balance $ 310,182 $ 299,541
Net income 9,270 10,641
----------- -----------
319,452 310,182
----------- -----------
Limited partners:
Beginning balance 8,734,995 8,927,411
Net income 1,008,723 1,072,468
Distributions ($31.62
and $42.16 per limited
partner unit, respectively) (948,663) (1,264,884)
----------- -----------
8,795,055 8,734,995
----------- -----------
Total partners' capital $ 9,114,507 $ 9,045,177
=========== ===========
See accompanying notes to condensed financial statements.
3
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
1997 1996
---------- -------
Increase (Decrease) in Cash and Cash
Equivalents:
Net Cash Provided by Operating
Activities $1,009,004 $ 877,751
---------- ----------
Cash Flows from Investing Activities:
Proceeds from sale of land and
building 793,009 20,000
Return of capital from joint
venture 472,373 -
Increase in restricted cash (793,009) -
---------- --------
Net cash provided by investing
activities 472,373 20,000
---------- ---------
Cash Flows from Financing Activities:
Proceeds from loan from corporate
general partner 81,000 40,100
Repayment of loan from corporate
general partner (81,000) (40,100)
Distributions to limited partners (948,663) (948,663)
---------- ---------
Net cash used in financing
activities (948,663) (948,663)
---------- ---------
Net Increase (Decrease) in Cash and Cash
Equivalents 532,714 (50,912)
Cash and Cash Equivalents at Beginning
of Period 159,379 271,575
---------- ---------
Cash and Cash Equivalents at End of
Period $ 692,093 $ 220,663
========== =========
Supplemental Schedule of Non-Cash
Financing Activities:
Distributions declared and unpaid
at end of period $ 316,221 $ 316,221
========== =========
See accompanying notes to condensed financial statements.
4
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 1997 and 1996
1. Basis of Presentation:
The accompanying unaudited condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and note disclosures required by
generally accepted accounting principles. The financial statements
reflect all adjustments, consisting of normal recurring adjustments,
which are, in the opinion of management, necessary to a fair statement
of the results for the interim periods presented. Operating results for
the quarter and nine months ended September 30, 1997, may not be
indicative of the results that may be expected for the year ending
December 31, 1997. Amounts as of December 31, 1996, included in the
financial statements, have been derived from audited financial
statements as of that date.
These unaudited financial statements should be read in conjunction with
the financial statements and notes thereto included in Form 10-K of CNL
Income Fund, Ltd. (the "Partnership") for the year ended December 31,
1996.
Certain items in the prior years' financial statements have been
reclassified to conform to 1997 presentation. These reclassifications
had no effect on partners' capital or net income.
2. Land and Building on Operating Leases:
In August 1997, the Partnership sold its property in Casa Grande,
Arizona, to a third party for $840,000 and received net sales proceeds
(net of $2,691 which represents prorated rent returned to the tenant)
of $793,009, resulting in a gain of $233,183 for financial reporting
purposes. This property was originally acquired by the Partnership in
December 1986 and had a cost of approximately $667,300, excluding
acquisition fees and miscellaneous acquisition expenses; therefore, the
Partnership sold the property for approximately $128,400 in excess of
its original purchase price.
3. Investment in Joint Ventures:
In August 1997, Seventh Avenue Joint Venture, in which the Partnership
owns a 50 percent interest, sold its property to the tenant for
$950,000, and received net sales proceeds (net of $2,678 which
represents prorated rent returned to the tenant) of $944,747, resulting
in a gain to the joint venture of approximately $295,100 for financial
reporting purposes. The property was originally contributed to Seventh
Avenue
5
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
3. Investment in Joint Ventures - Continued:
Joint Venture in June 1986 and had a total cost of approximately
$770,000, excluding acquisition fees and miscellaneous acquisition
expenses; therefore, the joint venture sold the property for
approximately $177,400 in excess of its original purchase price. As of
September 30, 1997, the Partnership and the other joint venture partner
had each received approximately $472,400, representing a return of
capital from the net sales proceeds received by the joint venture. As
of September 30, 1997, the Partnership owned a 50 percent interest in
the profits and losses of the joint venture.
The following presents the combined, condensed financial information
for all of the Partnership's investments in joint ventures at:
September 30, December 31,
1997 1996
Land and buildings on
operating leases, less
accumulated depreciation $1,081,492 $1,750,065
Cash 4,791 11,934
Receivables 5,382 18,456
Accrued rental income - 16,620
Liabilities 5,606 30,232
Partners' capital 1,086,059 1,766,843
Revenues 190,278 277,652
Gain on sale 295,080 -
Net income 452,069 232,152
The Partnership recognized income totalling $226,035 and $82,535 for
the nine months ended September 30, 1997 and 1996, respectively, from
these joint ventures, $172,680 and $27,632 of which was recorded for
the quarters ended September 30, 1997 and 1996, respectively.
4. Restricted Cash:
As of September 30, 1997, net sales proceeds of $793,009 from the sale
of the property in Casa Grande, Arizona, plus accrued interest of $860,
were being held in an interest-bearing escrow account pending the
release of funds by the escrow agent to acquire an additional property
on behalf of the Partnership.
6
<PAGE>
CNL INCOME FUND, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
5. Subsequent Event:
In October 1997, the Partnership entered into a promissory note with
the corporate general partner for a loan in the amount of $52,000 in
connection with the operations of the Partnership. The loan is
uncollateralized, non-interest bearing and due on demand.
In October 1997, the Partnership reinvested approximately $667,000 of
the net sales proceeds received from the sale in August 1997, of the
property in Casa Grande, Arizona, and approximately $196,700 of the
return of capital it received from the sale of the property held by
Seventh Avenue Joint Venture in North Miami, Florida, in a Ground Round
property located in Camp Hill, Pennsylvania.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CNL Income Fund, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on November 26, 1985, to acquire for cash, either
directly or through joint venture arrangements, both newly constructed and
existing restaurant properties, as well as land upon which restaurants were to
be constructed, which are leased primarily to operators of national and regional
fast-food restaurant chains (collectively, the "Properties"). The leases
generally are triple-net leases, with the lessees responsible for all repairs
and maintenance, property taxes, insurance and utilities. As of September 30,
1997, the Partnership owned 16 Properties, including interests in two Properties
owned by joint ventures in which the Partnership is a co-venturer.
Liquidity and Capital Resources
The Partnership's primary source of capital for the nine months ended
September 30, 1997 and 1996, was cash from operations (which includes cash
received from tenants, distributions from joint ventures, and interest and other
income received, less cash paid for expenses). Cash from operations was
$1,009,004 and $877,751 for the nine months ended September 30, 1997 and 1996,
respectively. The increase in cash from operations for the nine months ended
September 30, 1997, is primarily a result of changes in income and expenses as
discussed in "Results of Operations" below and changes in the Partnership's
working capital.
In March 1996, the Partnership accepted a promissory note from the
tenant of the Property in Mesquite, Texas, in the amount of $156,308, for past
due rental and other amounts, and real estate taxes previously paid by the
Partnership on behalf of the tenant. Payments were due in 60 monthly
installments of $3,492, including interest at a rate of 11 percent per annum,
and collections commenced on June 1, 1996. During January 1997, the Partnership
collected the full amount of the promissory note.
Other sources and uses of capital included the following during the
nine months ended September 30, 1997.
In January 1997, the Partnership entered into a promissory note with
the corporate general partner for a loan in the amount of $81,000 in connection
with the operations of the Partnership. The loan was uncollateralized,
non-interest bearing and due on demand. As of September 30, 1997, the
Partnership had repaid the loan in full to the corporate general partner. In
addition, in October 1997, the Partnership entered into a promissory note with
the corporate general partner for a loan in the amount of $52,000 in connection
with the operations of the Partnership. The loan is uncollateralized,
non-interest bearing and due on demand.
In August 1997, the Partnership sold its Property in Casa Grande,
Arizona, to a third party, for $840,000 and received net sales proceeds (net of
$2,691 which represents prorated rent returned to the tenant) of $793,009,
resulting in a gain of
8
<PAGE>
Liquidity and Capital Resources - Continued
$233,183 for financial reporting purposes. This Property was originally acquired
by the Partnership in December 1986 and had a cost of approximately $667,300,
excluding acquisition fees and miscellaneous acquisition expenses; therefore,
the Partnership sold the Property for approximately $128,400 in excess of its
original purchase price. As of September 30, 1997, the net sales proceeds of
$793,009, plus accrued interest of $860, were being held in an interest-bearing
escrow account pending the release of funds by the escrow agent to acquire an
additional Property or use them for other Partnership purposes. In October 1997,
the Partnership reinvested the majority of the net sales proceeds in a Ground
Round Property in Camp Hill, Pennsylvania, as discussed below. The Partnership
intends to use the remaining net sales proceeds for other Partnership purposes.
The general partners believe that the transaction, or a portion thereof,
relating to the sale of the Property in Casa Grande, Arizona, and the
reinvestment of the majority of the net sales proceeds in a Ground Round
Property in Camp Hill, Pennsylvania will qualify as a like-kind exchange
transaction for federal income tax purposes. However, the Partnership will
distribute amounts sufficient to enable the limited partners to pay federal and
state (at a level reasonably assumed by the general partners) income taxes, if
any, resulting from the sale.
In addition, in August 1997, Seventh Avenue Joint Venture, in which the
Partnership owns a 50 percent interest, sold its Property to the tenant for
$950,000, and received net sales proceeds (net of $2,678 which represents
prorated rent returned to the tenant) of $944,747, resulting in a gain to the
joint venture of approximately $295,100 for financial reporting purposes. The
Property was originally contributed to Seventh Avenue Joint Venture in June 1986
and had a total cost of approximately $770,000, excluding acquisition fees and
miscellaneous acquisition expenses; therefore, the joint venture sold the
Property for approximately $176,900 in excess of its original purchase price. As
of September 30, 1997, the Partnership and the other joint venture partner had
each received approximately $472,400 representing a return of capital from the
net sales proceeds received by the joint venture. In October 1997, the
Partnership reinvested a portion of the return of capital in a Ground Round
Property in Camp Hill, Pennsylvania, as discussed below. The Partnership
anticipates that it will distribute amounts sufficient to enable the limited
partners to pay federal and state income taxes, if any (at a level reasonably
assumed by the general partners), resulting from the sale. The Partnership
intends to reinvest the remaining net sales proceeds in a additional Property.
In October 1997, the Partnership reinvested approximately $667,000 of
the net sales proceeds received from the sale in August 1997, of the property in
Casa Grande, Arizona, and approximately $196,700 of the return of capital it
received from the sale of the property held by Seventh Avenue Joint Venture in
North Miami, Florida, in a Ground Round property located in Camp Hill,
Pennsylvania.
9
<PAGE>
Liquidity and Capital Resources - Continued
Currently, rental income from the Partnership's Properties is invested
in money market accounts or other short-term, highly liquid investments pending
the Partnership's use of such funds to pay Partnership expenses or to make
distributions to the partners. At September 30, 1997, the Partnership had
$692,093 invested in such short-term investments, as compared to $159,379 at
December 31, 1996. The increase in cash and cash equivalents during the nine
months ended September 30, 1997 is primarily the result of the Partnership
collecting the full amount of the promissory note from the tenant of the
Property in Mesquite, Texas, and receipt by the Partnership of a return of
capital from Seventh Avenue Joint Venture representing the net sales proceeds
from the sale of the Property held by Seventh Avenue Joint Venture as discussed
above. The funds remaining at September 30, 1997, will be used to reinvest in
additional Properties, as discussed above, and to pay distributions and other
liabilities.
Total liabilities of the Partnership, including distributions payable,
increased to $458,534 at September 30, 1997, from $434,600 at December 31, 1996,
primarily as a result of an increase in rents paid in advance and an increase in
amounts due to related parties during the nine months ended September 30, 1997.
Liabilities at September 30, 1997, to the extent they exceed cash and cash
equivalents at September 30, 1997, less amounts received as a return of capital
to be reinvested in additional Properties, as described above, will be paid from
future cash from operations, from the loan received from the corporate general
partner in October 1997 described above, and in the event the general partners
elect to make additional capital contributions or loans to the Partnership, from
future general partner capital contributions or loans.
Based on current and anticipated future cash from operations, and to a
lesser extent, the loans received from the corporate general partner in January,
July and October 1997, described above, the Partnership declared distributions
to limited partners of $948,663 for each of the nine months ended September 30,
1997 and 1996 ($316,221 for each of the quarters ended September 30, 1997 and
1996). This represents distributions of $31.62 per unit for each of the nine
months ended September 30, 1997 and 1996 ($10.54 per unit for each of the
quarters ended September 30, 1997 and 1996). No distributions were made to the
general partners for the quarters and nine months ended September 30, 1997 and
1996. No amounts distributed to the limited partners for the nine months ended
September 30, 1997 and 1996, are required to be or have been treated by the
Partnership as a return of capital for purposes of calculating the limited
partners' return on their adjusted capital contributions. The Partnership
intends to continue to make distributions of cash available for distribution to
the limited partners on a quarterly basis.
10
<PAGE>
Liquidity and Capital Resources - Continued
The Partnership's investment strategy of acquiring Properties for cash
and leasing them under triple-net leases to operators who generally meet
specified financial standards minimizes the Partnership's operating expenses.
The general partners believe that the leases will continue to generate cash flow
in excess of operating expenses.
The general partners have the right, but not the obligation, to make
additional capital contributions if they deem it appropriate in connection with
the operations of the Partnership.
Results of Operations
During the nine months ended September 30, 1996, the Partnership owned
and leased 15 wholly owned Properties and during the nine months ended September
30, 1997, the Partnership owned and leased 15 wholly owned Properties (including
one Property in Casa Grande, Arizona, which was sold in August 1997) to
operators of fast-food and family-style restaurant chains. In connection
therewith, during the nine months ended September 30, 1997 and 1996, the
Partnership earned $780,333 and $810,930, respectively, in rental income from
these Properties, $253,305 and $270,279 of which was earned for the quarters
ended September 30, 1997 and 1996, respectively. The decrease in rental income
during the nine months ended September 30, 1997, as compared to the nine months
ended September 30, 1996, is partially attributable to a decrease of
approximately $5,800 due to the fact that effective February 1, 1996, the
Partnership ceased receiving additional rental amounts from the former tenant of
three Properties. The rental payments from this former tenant represented the
difference between (i) the original leases entered into between the Partnership
and the former tenant and (ii) the current leases on the Properties between the
Partnership and the new tenants (two of which were re-leased to the corporate
franchisor). In August 1997, the Partnership sold one of the three Properties, a
Property in Casa Grande, Arizona, and as a result of the sale, rental income
decreased by approximately $8,900 and $9,500 during the quarter and nine months
ended September 30, 1997, respectively, as compared to the quarter and nine
months ended September 30, 1996. Rental income, relating to the two remaining
Properties, will remain at reduced levels during 1997 and in future years.
Rental income also decreased by approximately $2,400 and $6,600 during
the quarter and nine months ended September 30, 1997, respectively, as a result
of the fact that the lease relating to the Wendy's Property in Oklahoma City,
Oklahoma, was amended, effective January 1, 1997, to provide for lower base
rental income and a change in the percentage rent calculation.
11
<PAGE>
Results of Operations - Continued
In addition, rental income decreased approximately $5,200 during the
nine months ended September 30, 1997, as compared to the nine months ended
September 30, 1996, as a result of the fact that the lease relating to the
Wendy's Property in Payson, Arizona, was amended during the nine months ended
September 30, 1996, to provide for a change in the percentage rent calculation.
In addition, for the nine months ended September 30, 1996, the
Partnership owned and leased three Properties indirectly through joint venture
arrangements and for the nine months ended September 30, 1997, the Partnership
owned and leased three Properties indirectly through joint venture arrangements
(including one Property owned and leased by Seventh Avenue Joint Venture, which
was sold in August 1997). In connection therewith, during the nine months ended
September 30, 1997 and 1996, the Partnership earned $226,035 and $82,535,
respectively, attributable to net income earned by these joint ventures,
$172,680 and $27,632 of which was earned during the quarters ended September 30,
1997 and 1996, respectively. The increase in net income earned by joint ventures
is primarily attributable to the fact that in August 1997, Seventh Avenue Joint
Venture, in which the Partnership owns a 50 percent interest, recognized a gain
of approximately $295,100 for financial reporting purposes as a result of the
sale of its Property in August 1997, as described above in "Liquidity and
Capital Resources".
Operating expenses, including depreciation and amortization expense,
were $235,872 and $246,815 for the nine months ended September 30, 1997 and
1996, respectively, of which $74,763 and $77,869 were incurred for the quarters
ended September 30, 1997 and 1996, respectively. The decrease in operating
expenses during the nine months ended September 30, 1997, as compared to the
nine months ended September 30, 1996, is primarily attributable to a decrease in
accounting and administrative expenses associated with operating the Partnership
and its Properties.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings. Inapplicable.
Item 2. Changes in Securities. Inapplicable.
Item 3. Defaults upon Senior Securities. Inapplicable.
Item 4. Submission of Matters to a Vote of Security Holders.
Inapplicable.
Item 5. Other Information. Inapplicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits - None.
(b) No reports on Form 8-K were filed during the quarter
ended September 30, 1997.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
DATED this 29th day of October, 1997.
CNL INCOME FUND, LTD.
By: CNL REALTY CORPORATION
General Partner
By: /s/ James M. Seneff, Jr.
-----------------------------
JAMES M. SENEFF, JR.
Chief Executive Officer
(Principal Executive Officer)
By: /s/ Robert A. Bourne
----------------------------
ROBERT A. BOURNE
President and Treasurer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the balance
sheet of CNL Income Fund, Ltd. at September 30, 1997, and its statement of
income for the nine months then ended and is qualified in its entirety by
reference to the Form 10Q of CNL income Fund, Ltd. for the nine months ended
September 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,485,962<F2>
<SECURITIES> 0
<RECEIVABLES> 5,000
<ALLOWANCES> 3,092
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 9,495,242
<DEPRECIATION> 2,120,790
<TOTAL-ASSETS> 9,573,041
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,114,507
<TOTAL-LIABILITY-AND-EQUITY> 9,573,041
<SALES> 0
<TOTAL-REVENUES> 794,647
<CGS> 0
<TOTAL-COSTS> 235,872
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,017,993
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,017,993
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,017,993
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F2>Cash balance includes $793,869 in restricted cash.
<F1>Due to the nature of its industry, CNL Income Fund, Ltd. has an unclassified
balance-sheet; therefore, no values are shown above for current assets and
current liabilities.
</FN>
</TABLE>
