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, 2000
--------------------------------------------------------------------------
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
0-16850
---------------------------------------
CNL Income Fund III, Ltd.
-----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-2809460
------------------------------------------ -----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
450 South Orange Avenue
Orlando, Florida 32801-3336
------------------------------------------ ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number
(including area code) (407) 540-2000
----------------------
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
Page
Part I.
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 8-11
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 11
Part II.
Other Information 12-13
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------------- -------------------
<S> <C>
ASSETS
Land and buildings on operating leases, less accumulated
depreciation of $2,839,492 and $2,771,519, respectively $ 11,100,002 $ 11,772,766
Net investment in direct financing leases 1,106,665 1,120,608
Investment in joint ventures 2,395,848 2,418,036
Cash and cash equivalents 1,195,502 1,011,733
Receivables, less allowance for doubtful accounts
of $8,406 and $8,797, respectively 7,955 658
Due from related parties 1,153 2,300
Prepaid expenses 5,099 5,896
Accrued rental income 139,345 111,167
Other assets 29,354 29,354
------------------- -------------------
$ 15,980,923 $ 16,472,518
=================== ===================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 22,399 $ 76,247
Escrowed real estate taxes payable 7,475 12,872
Distributions payable 1,037,500 500,000
Due to related parties 123,232 121,781
Rents paid in advance -- 27,765
------------------- -------------------
Total liabilities 1,190,606 738,665
Minority interest 130,696 132,910
Partners' capital 14,659,621 15,600,943
------------------- -------------------
$ 15,980,923 $ 16,472,518
=================== ===================
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
Quarter Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
------------ ------------ -------------- --------------
Revenues:
Rental income from operating leases $ 383,424 $ 346,531 $ 1,153,743 $ 1,026,880
Earned income from direct financing leases 31,429 31,957 94,696 186,352
Contingent rental income 20,045 13,867 56,345 43,285
Interest and other income 8,711 28,324 34,562 82,656
------------ ------------ -------------- --------------
443,609 420,679 1,339,346 1,339,173
------------ ------------ -------------- --------------
Expenses:
General operating and administrative 37,640 26,970 112,616 91,002
Professional services 5,219 3,865 17,301 18,027
State and other taxes -- -- 12,084 13,541
Depreciation and amortization 72,004 63,701 217,080 198,541
Transaction costs -- 37,879 45,062 119,992
------------ ------------ -------------- --------------
114,863 132,415 404,143 441,103
------------ ------------ -------------- --------------
Income Before Minority Interest in Income of
Consolidated Joint Venture, Equity in Earnings
of Unconsolidated Joint Ventures and
Gain on Sale of Land and Buildings 328,746 288,264 935,203 898,070
Minority Interest in Income of Consolidated
Joint Venture (4,352 ) (4,357 ) (12,926 ) (12,934 )
Equity in Earnings of Unconsolidated
Joint Ventures 47,411 41,415 141,750 124,872
Gain on Sale of Land and Buildings 32,151 -- 32,151 293,512
------------ ------------ -------------- --------------
Net Income $ 403,956 $ 325,322 $ 1,096,178 $ 1,303,520
============ ============ ============== ==============
Allocation of Net Income:
General partners $ 4,040 $ 3,253 $ 10,962 $ 12,462
Limited partners 399,916 322,069 1,085,216 1,291,058
------------ ------------ -------------- --------------
$ 403,956 $ 325,322 $ 1,096,178 $ 1,303,520
============ ============ ============== ==============
Net Income Per Limited Partner Unit $ 8.00 $ 6.44 $ 21.70 $ 25.82
============ ============ ============== ==============
Weighted Average Number of Limited Partner
Units Outstanding 50,000 50,000 50,000 50,000
============ ============ ============== ==============
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Nine Months Ended Year Ended
September 30, December 31,
2000 1999
-------------------------- ----------------------
General partners:
Beginning balance $ 371,371 $ 354,638
Net income 10,962 16,733
-------------------------- ----------------------
382,333 371,371
-------------------------- ----------------------
Limited partners:
Beginning balance 15,229,572 15,515,634
Net income 1,085,216 1,713,938
Distributions ($40.75 and $40.00 per
limited partner unit, respectively) (2,037,500 ) (2,000,000 )
-------------------------- ----------------------
14,277,288 15,229,572
-------------------------- ----------------------
Total partners' capital $ 14,659,621 $ 15,600,943
========================== ======================
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
2000 1999
--------------- --------------
Increase (Decrease) in Cash and Cash Equivalents
Net Cash Provided by Operating Activities $ 1,191,544 $ 1,263,641
--------------- --------------
Cash Flows from Investing Activities:
Proceeds from sale of land and buildings 507,365 1,792,169
Addition to land and buildings on
operating leases -- (326,996 )
Investment in direct financing lease -- (612,920 )
Increase in restricted cash -- (1,091,192 )
--------------- --------------
Net cash provided by (used in) investing
activities 507,365 (238,939 )
--------------- --------------
Cash Flows from Financing Activities:
Distributions to limited partners (1,500,000 ) (1,500,000 )
Distributions to holders of minority interest (15,140 ) (15,032 )
--------------- --------------
Net cash used in financing activities (1,515,140 ) (1,515,032 )
--------------- --------------
Net Increase (Decrease) in Cash and Cash
Equivalents 183,769 (490,330 )
Cash and Cash Equivalents at Beginning of Period 1,011,733 2,047,140
--------------- --------------
Cash and Cash Equivalents at End of Period $ 1,195,502 $ 1,556,810
=============== ==============
Supplemental Schedule of Non-Cash Financing Activities:
Distributions declared and unpaid at end of
period $ 1,037,500 $ 500,000
=============== ==============
See accompanying notes to condensed financial statements.
</TABLE>
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 2000 and 1999
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, 2000 may not be
indicative of the results that may be expected for the year ending
December 31, 2000. Amounts as of December 31, 1999, 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 III, Ltd. (the "Partnership") for the year ended December
31, 1999.
The Partnership accounts for its 69.07% interest in Tuscawilla Joint
Venture using the consolidation method. Minority interest represents
the minority joint venture partners' proportionate share of the equity
in the Partnership's consolidated joint venture. All significant
intercompany accounts and transactions have been eliminated.
Certain items in the prior years' financial statements have been
reclassified to confirm to 2000 presentation. These reclassifications
had no effect on partners' capital or net income.
2. Land and Building on Operating Leases:
In September 2000, the Partnership sold its property in Plant City,
Florida to a third party for $509,865, and received net sales proceeds
of $507,365, resulting in a gain of $32,151 for financial reporting
purposes.
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 2000 and 1999
3. Allocations and Distributions:
Generally, all net income and net losses of the Partnership, excluding
gains and losses from the sale of properties, are allocated 99 percent
to the limited partners and one percent to the general partners.
Distributions of net cash flow are made 99 percent to the limited
partners and one percent to the general partners; provided, however,
that the one percent of net cash flow to be distributed to the general
partners is subordinated to receipt by the limited partners of an
aggregate, ten percent, noncumulative, noncompounded annual return on
their adjusted capital contributions (the "10% Preferred Return").
Generally, net sales proceeds from the sale of properties not in
liquidation of the Partnership, to the extent distributed, will be
distributed first to the limited partners in an amount sufficient to
provide them with their cumulative 10% Preferred Return, plus the
return of their adjusted capital contributions. The general partners
will then receive, to the extent previously subordinated and unpaid, a
one percent interest in all prior distributions of net cash flow and a
return of their capital contributions. Any remaining sales proceeds
will be distributed 95 percent to the limited partners and five percent
to the general partners. Any gain from the sale of a property not in
liquidation of the Partnership is, in general, allocated in the same
manner as net sales proceeds are distributable. Any loss from the sale
of a property is, in general, allocated first, on a pro rata basis, to
partners with positive balances in their capital accounts; and
thereafter, 95 percent to the limited partners and five percent to the
general partners.
Generally, net sales proceeds from a liquidating sale of properties,
will be used in the following order: (i) first to pay and discharge all
of the Partnership's liabilities to creditors, (ii) second, to
establish reserves that may be deemed necessary for any anticipated or
unforeseen liabilities or obligations of the Partnership, (iii) third,
to pay all of the Partnership's liabilities, if any, to the general and
limited partners, (iv) fourth, after allocations of net income, gains
and/or losses, to distribute to the partners with positive capital
accounts balances, in proportion to such balances, up to amounts
sufficient to reduce such positive balances to zero, and (v)
thereafter, any funds remaining shall then be distributed 95 percent to
the limited partners and five percent to the general partners.
During the nine months ended September 30, 2000 and 1999, the
Partnership declared distributions to the limited partners of
$2,037,500 and $1,500,000, respectively ($1,037,500 and $500,000 for
the quarters ended September 30, 2000 and 1999, respectively). This
represents distributions of $40.75 and $30.00 per unit for the nine
months ended September 30, 2000 and 1999, respectively ($20.75 and
$10.00 per unit for the quarters ended September 30, 2000 and 1999,
respectively). Distributions for the nine months ended September 30,
2000, included $600,000 in a special distribution, as a
<PAGE>
CNL INCOME FUND III, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 2000 and 1999
3. Allocations and Distributions - Continued:
result of the distribution of net sales proceeds from the 1999 sale of
the property in Flagstaff, Arizona, and the 2000 sale of the property
is Plant City, Florida. This amount was applied toward the limited
partners' cumulative 10% Preferred Return. No distributions have been
made to the general partners to date.
4. Concentration of Credit Risk:
The following schedule presents total rental and earned income from
individual restaurant chains, each representing more than ten percent
of the Partnership's total rental and earned income (including the
Partnership's share of total rental and earned income from joint
ventures and the property held as tenant-in-common with affiliates of
the general partners) for at least one of the nine month periods ended
September 30:
<TABLE>
<CAPTION>
2000 1999
------------------ ------------------
<S> <C>
Golden Corral Family Steakhouse Restaurants
$ 315,606 $ 323,980
IHOP 210,476 N/A
KFC 200,343 196,899
Pizza Hut 167,073 163,329
</TABLE>
The information denoted by N/A indicates that for each period
presented, the chain did not represent more than ten percent of the
Partnership's total rental and earned income.
Although the Partnership's properties are geographically diverse
throughout the United States and the Partnership's lessees operate a
variety of restaurant concepts, default by any lessee or restaurant
chain contributing more than ten percent of the Partnership's revenues
could significantly impact the results of operations of the Partnership
if the Partnership is not able to re-lease the properties in a timely
manner.
5. Termination of Merger:
On March 1, 2000, the general partners and CNL American Properties Fund,
Inc. ("APF") mutually agreed to terminate the Agreement and Plan of
Merger entered into in March 1999. The general partners are continuing
to evaluate strategic alternatives for the Partnership, including
alternatives to provide liquidity to the limited partners.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CNL Income Fund III, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on June 1, 1987 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 selected national and
regional fast-food restaurant chains. 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, 2000, the Partnership owned
27 Properties, which included interests in three Properties owned by joint
ventures in which the Partnership is a co-venturer and four Properties owned
with affiliates as tenants-in-common.
Capital Resources
The Partnership's primary source of capital for the nine months ended
September 30, 2000 and 1999 was generated cash from operations (which includes
cash received from tenants, distributions from joint ventures, and interest and
other income received, less cash paid for expenses) of $1,191,544 and
$1,263,641, respectively. The decrease in cash from operations for the nine
months ended September 30, 2000 was primarily a result of changes in the
Partnership's working capital.
Currently, rental income from the Partnership's Properties and any net
sales proceeds from the sale of Properties, pending the distribution to limited
partners, are invested in money market accounts or other short-term, highly
liquid investments, such as demand deposit accounts at commercial banks and
certificates of deposit with less than a 30-day maturity date, pending the
Partnership's use of such funds to pay Partnership expenses or to make
distributions to the partners. At September 30, 2000, the Partnership had
$1,195,502 invested in such short-term investments, as compared to $1,011,733 at
December 31, 1999. The funds remaining at September 30, 2000, after payment of
distributions and other liabilities will be used to meet the Partnership's
working capital and other needs.
In September 2000, the Partnership sold its Property in Plant City,
Florida to a third party for $509,865 and received net sales proceeds of
$507,365, resulting in a gain of $32,151 for financial reporting purposes. Net
proceeds from the sale of the property were distributed to the limited partners.
Short Term Liquidity
The Partnership's short-term liquidity requirements consist primarily
of the operating expenses of the Partnership.
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.
Total liabilities of the Partnership, including distributions payable,
increased to $1,190,606 at September 30, 2000 from $738,665 at December 31, 1999
primarily as a result of the Partnership accruing a special distribution of net
sales proceeds of $600,000 from the sale of the Properties in Flagstaff, Arizona
and Plant City, Florida as described below, payable to the limited partners at
September 30, 2000. The increase was partially offset by a decrease in accounts
payable at September 30, 2000, as compared to December 31, 1999. The general
partners believe that the Partnership has sufficient cash on hand to meet its
current working capital needs.
The Partnership generally distributes cash from operations remaining
after the payment of operating expenses of the Partnership, to the extent that
the general partners determine that such funds are available for distribution.
Based on current and anticipated future cash from operations, and for the nine
months ended September 30, 2000, a portion of the proceeds received from the
1999 sale of the Property in Flagstaff, Arizona, and the 2000 sale of the
Property in Plant City, Florida, the Partnership declared distributions to
limited partners of $2,037,500 and $1,500,000, for the nine months ended
September 30, 2000 and 1999, respectively ($1,037,500 and $500,000 for the
quarters ended September 30, 2000 and 1999, respectively.) This represents
distributions of $40.75 and $30.00 per unit for the nine months ended September
30, 2000 and 1999 respectively ($20.75 and $10.00 for the quarters ended
September 30, 2000 and 1999, respectively.) The distribution for the quarter
ended September 30, 2000, included $600,000 of net sales proceeds from the sale
of the Properties in Flagstaff, Arizona and Plant City, Florida . This special
distribution was effectively a return of a portion of the limited partners'
investment, although, in accordance with the Partnership agreement, it was
applied to the limited partner's unpaid cumulative 10% Preferred Return. As a
result of the sale of the Properties, the Partnership's total revenue was
reduced and is expected to remain reduced in subsequent periods, while the
majority of the Partnership's operating expenses remained and are expected to
remain fixed. Therefore, distributions of net cash flow were adjusted commencing
during the quarter ended September 30, 2000. No distributions were made to the
general partners for the quarters and nine months ended September 30, 2000 and
1999. No amounts distributed to the limited partners for the nine months ended
September 30, 2000 and 1999, 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.
Long-Term Liquidity
The Partnership has no long-term debt or other long-term liquidity
requirements.
Results of Operations
During the nine months ended September 30, 1999, the Partnership and
its consolidated joint venture, Tuscawilla Joint Venture, owned and leased 23
wholly owned Properties (which included two Properties which were sold in 1999)
and during the nine months ended September 30, 2000, the Partnership and its
consolidated joint venture owned and leased 22 wholly owned Properties
(including one Property which was sold in 2000) to operators of fast-food and
family-style restaurant chains. In connection therewith, during the nine months
ended September 30, 2000 and 1999, the Partnership earned $1,248,439 and
$1,213,232, respectively, in rental income from operating leases and earned
income from direct financing leases from these Properties, $414,853 and $378,488
of which was earned during the quarters ended September 30, 2000 and 1999,
respectively. Even though rental and earned income decreased by approximately
$1,700 and $86,200 during the quarter and nine months ended September 30, 2000,
respectively, as a result of the sale of two Properties in 1999 and one Property
in 2000, the decrease was offset by an increase in rental and earned income of
approximately $38,400 and $122,300 during the quarter and nine months ended
September 30, 2000, respectively, due to the Partnership reinvesting the net
sales proceeds from the 1999 Property sales in two additional Properties in
January and October 1999.
In addition, during the nine months ended September 30, 2000 and 1999,
the Partnership earned $56,345 and $43,285, respectively, in contingent rental
income, $20,045 and $13,867 of which were earned during the quarters ended
September 30, 2000 and 1999, respectively. Contingent rental income was lower
during the quarter and nine months ended September 30, 1999 due to the
Partnership adjusting estimated contingent rent accruals at December 31, 1998,
to actual amounts earned during the quarter and nine months ended September 30,
1999.
In addition, during the nine months ended September 30, 2000 and 1999,
the Partnership earned $34,562 and $82,656, respectively, in interest and other
income, $8,711 and $28,324 of which was earned during the quarters ended
September 30, 2000 and 1999, respectively. Interest and other income were higher
during the nine months ended September 30, 1999, as compared to the nine months
ended September 30, 2000, partially due to the fact that during the nine months
ended September 30, 1999, the Partnership recorded approximately $14,400
relating to a partial condemnation of one of its Properties. In addition,
interest and other income were higher during the quarter and nine months ended
September 30, 1999 due to the fact that during the quarter and nine months ended
September 30, 1999, the Partnership recorded approximately $18,600 and $27,400,
respectively in interest income earned on the net sales proceeds received from
the sale of Properties in 1999, which were 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.
During the nine months ended September 30, 2000 and 1999, the
Partnership owned and leased two Properties indirectly through joint venture
arrangements and three Properties as tenants-in-common with affiliates of the
general partners. In addition, during the nine months ended September 30, 2000,
the Partnership owned and leased one additional Property as tenants-in-common
with an affiliate of the general partners. In connection therewith, during the
nine months ended September 30, 2000 and 1999, the Partnership earned income of
$141,750 and $124,872, respectively, $47,411 and $41,415 of which was earned
during the quarters ended September 30, 2000 and 1999, respectively. The
increase in net income earned by joint ventures during the quarter and nine
months ended September 30, 2000 was primarily attributable to the fact that in
October 1999, the Partnership reinvested a portion of the net sales proceeds
from a 1999 sale of a Property, in a Property in Baytown, Texas, with an
affiliate of the general partners as tenants-in common.
During the nine months ended September 30, 2000, four restaurant
chains, Golden Corral Family Steakhouse Restaurants, IHOP, Pizza Hut and KFC,
each accounted for more than ten percent of the Partnership's total rental
income (including the Partnership's share of rental income from Properties owned
by joint ventures and Properties owned with affiliates of the general partners
as tenants-in-common). It is anticipated that these four restaurant chains each
will continue to account for more than ten percent of the total rental income
under the terms of its leases during the remainder of 2000. Any failure of these
lessees or restaurant chains could materially affect the Partnership's income if
the Partnership is not able to re-lease the Properties in a timely manner.
Operating expenses, including depreciation and amortization expense,
were $404,143 and $441,103 during the nine months ended September 30, 2000 and
1999, respectively, of which $114,863 and $132,415 were incurred during the
quarters ended September 30, 2000 and 1999, respectively. The decrease in
operating expenses during the quarter and nine months ended September 30, 2000,
as compared to the quarter and nine months ended September 30, 1999, was
primarily attributable to the fact that the Partnership incurred less
transaction costs during the quarter and nine months ended September 30, 2000,
related to the general partners retaining financial and legal advisors to assist
them in evaluating and negotiating the proposed merger with CNL American
Properties Fund, Inc. ("APF") due to the termination of the proposed merger, as
described below in "Termination of Merger." The decrease in operating expenses
during the quarter and nine months ended September 30, 2000, was partially
offset by (i) an increase in depreciation expense as a result of the fact that
the Partnership acquired a Property in Auburn, Alabama in October 1999 and (ii)
an increase in administrative expenses for servicing the Partnership and its
Properties.
For the quarter and nine months ended September 30, 2000, the
Partnership sold one Property resulting in a gain of $32,151 for financial
reporting purposes, as described above in "Capital Resources." As a result of
the sales of two Properties during the nine months ended September 30, 1999, the
Partnership recognized total gains of $293,512 for financial reporting purposes.
Termination of Merger
On March 1, 2000, the general partners and APF mutually agreed to
terminate the Agreement and Plan of Merger entered into in March 1999. The
general partners are continuing to evaluate strategic alternatives for the
Partnership, including alternatives to provide liquidity to the limited partners
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
<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
3.1 Certificate of Limited Partnership of CNL Income Fund
III, Ltd. (Included as Exhibit 3.1 to Amendment No. 1 to
the Registration Statement No. 33-15374 on Form S-11 and
incorporated herein by reference.)
3.2 Amended and Restated Agreement and Certificate of
Limited Partnership of CNL Income Fund III, Ltd.
(Included as Exhibit 3.2 to Form 10-K filed with the
Securities and Exchange Commission on April 5, 1993, and
incorporated herein by reference.)
4.1 Certificate of Limited Partnership of CNL Income Fund
III, Ltd. (Included as Exhibit 4.1 to Amendment No. 1 to
Registration Statement No. 33-15374 on Form S-11 and
incorporated herein by reference.)
4.2 Amended and Restated Agreement and Certificate of
Limited Partnership of CNL Income Fund III, Ltd.
(Included as Exhibit 3.2 to Form 10-K filed with the
Securities and Exchange Commission on April 5, 1993, and
incorporated herein by reference.)
10.1 Property Management Agreement (Included as Exhibit 10.1
to Form 10-K filed with the Securities and Exchange
Commission on April 5, 1993, and incorporated herein by
reference.)
10.2 Assignment of Property Management Agreement from CNL
Investment Company to CNL Income Fund Advisors, Inc.
(Included as Exhibit 10.2 to Form 10-K filed with the
Securities and Exchange Commission on March 30, 1995,
and incorporated herein by reference.)
10.3 Assignment of Property Management Agreement from CNL
Income Fund Advisors, Inc. to CNL Fund Advisors, Inc.
(Included as Exhibit 10.3 to Form 10-K filed with the
Securities and Exchange Commission on April 1, 1996, and
incorporated herein by reference.)
27 Financial Data Schedule (Filed herewith.)
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
September 30, 2000.
<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 10th day of November, 2000.
CNL INCOME FUND III, 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)
