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, 1996
-----------------------------------
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
0-19139
----------------------
CNL Income Fund VIII, Ltd.
- ------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-2963338
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organiza- Identification No.)
tion)
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
------- -------
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
CNL INCOME FUND VIII, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
September 30, December 31,
ASSETS 1996 1995
------ ------------- ------------
Land and buildings on operating
leases, less accumulated
depreciation of $1,177,320 and
$1,020,592 $14,729,643 $14,886,371
Net investment in direct financing
leases 10,973,888 11,091,605
Investment in joint ventures 2,951,507 2,763,798
Mortgage notes receivable 461,924 463,833
Cash and cash equivalents 1,486,491 1,620,865
Receivables, less allowance for
doubtful accounts of $16,683 and
$28,490 9,534 38,522
Prepaid expenses 8,054 2,912
Accrued rental income 1,727,025 1,655,009
Other assets 52,671 52,671
----------- -----------
$32,400,737 $32,575,586
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable $ 5,156 $ 7,593
Escrowed real estate taxes payable 22,187 5,496
Distributions payable 787,500 962,500
Due to related parties 21,944 20,135
Rents paid in advance 103,423 31,864
----------- -----------
Total liabilities 940,210 1,027,588
Minority interest 107,959 107,656
Partners' capital 31,352,568 31,440,342
----------- -----------
$32,400,737 $32,575,586
=========== ===========
See accompanying notes to condensed financial statements.
CNL INCOME FUND VIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
Quarter Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Revenues:
Rental income from
operating leases $ 458,994 $ 483,040 $1,404,530 $1,464,899
Earned income from
direct financing
leases 332,736 330,611 1,001,761 1,013,458
Contingent rental income 4,441 8,795 12,111 36,000
Interest and other income 26,288 20,986 75,478 50,956
---------- ---------- ---------- ----------
822,459 843,432 2,493,880 2,565,313
---------- ---------- ---------- ----------
Expenses:
General operating and
administrative 39,581 36,945 121,787 96,490
Professional services 5,321 5,042 19,309 21,317
State and other taxes - - 4,756 6,797
Depreciation and amorti-
zation 52,243 54,521 156,728 164,002
---------- ---------- ---------- ----------
97,145 96,508 302,580 288,606
---------- ---------- ---------- ----------
Income Before Minority
Interest in Income of
Consolidated Joint
Venture, Equity in Earnings
of Unconsolidated Joint
Ventures and Gain on Sale
of Land and Building and
Provision for Loss on
Land and Building 725,314 746,924 2,191,300 2,276,707
Minority Interest in Income
of Consolidated Joint
Venture (3,485) (3,546) (10,428) (10,535)
Equity in Earnings of
Unconsolidated Joint
Ventures 69,183 61,194 192,885 183,541
Gain on Sale of Land and
Building - 71,638 - 71,638
Provision for Loss on Land
and Building (99,031) - (99,031) -
---------- ---------- ---------- ----------
Net Income $ 691,981 $ 876,210 $2,274,726 $2,521,351
========== ========== ========== ==========
Allocation of Net Income:
General partners $ 7,396 $ 8,762 $ 23,223 $ 25,214
Limited partners 684,585 867,448 2,251,503 2,496,137
---------- ---------- ---------- ----------
$ 691,981 $ 876,210 $2,274,726 $2,521,351
========== ========== ========== ==========
Net Income Per Limited
Partner Unit $ 0.020 $ 0.025 $ 0.064 $ 0.071
========== ========== ========== ==========
Weighted Average Number
of Limited Partner
Units Outstanding 35,000,000 35,000,000 35,000,000 35,000,000
========== ========== ========== ==========
See accompanying notes to condensed financial statements.
CNL INCOME FUND VIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Nine Months Ended Year Ended
September 30, December 31,
1996 1995
----------------- ------------
General partners:
Beginning balance $ 162,612 $ 129,898
Net income 23,223 32,714
----------- -----------
185,835 162,612
----------- -----------
Limited partners:
Beginning balance 31,277,730 31,298,691
Net income 2,251,503 3,304,041
Distributions ($0.068 and
$0.095 per limited
partner unit, respectively) (2,362,500) (3,325,002)
----------- -----------
31,166,733 31,277,730
----------- -----------
Total partners' capital $31,352,568 $31,440,342
=========== ===========
See accompanying notes to condensed financial statements.
CNL INCOME FUND VIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
1996 1995
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents:
Net Cash Provided by Operating
Activities $ 2,647,878 $ 2,472,193
----------- -----------
Cash Flows from Investing
Activities:
Proceeds from sale of land
and building - 1,184,865
Additions to land and
buildings on operating leases (1,135) (397,291)
Investment in direct financing
leases (1,326) (550,909)
Investment in joint venture (234,059) -
Collections on mortgage notes
receivable 1,893 -
Increase in restricted cash - (236,717)
----------- -----------
Net cash used in investing
activities (234,627) (52)
----------- -----------
Cash Flows from Financing
Activities:
Distributions to limited
partners (2,537,500) (2,520,000)
Distributions to holder of
minority interest (10,125) (8,356)
----------- -----------
Net cash used in financing
activities (2,547,625) (2,528,356)
----------- -----------
Net Decrease in Cash and Cash Equivalents (134,374) (56,215)
Cash and Cash Equivalents at Beginning
of Period 1,620,865 1,439,545
----------- -----------
Cash and Cash Equivalents at End
of Period $ 1,486,491 $ 1,383,330
=========== ===========
Supplemental Schedule of Non-Cash
Investing and Financing Activities:
Building costs incurred and
unpaid at end of period $ - $ 2,375
=========== ===========
Distributions declared and unpaid at
end of period $ 787,500 $ 787,500
=========== ===========
See accompanying notes to condensed financial statements.
CNL INCOME FUND VIII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 1996 and 1995
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, 1996, may not be
indicative of the results that may be expected for the year ending
December 31, 1996. Amounts as of December 31, 1995, 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 CNL Income Fund
VIII, Ltd.'s Form 10-K for the year ended December 31, 1995.
CNL Income Fund VIII, Ltd. (the "Partnership") accounts for its 88
percent interest in Woodway Joint Venture using the consolidation
method. Minority interest represents the minority joint venture
partner's proportionate share of the equity in the Partnership's
consolidated joint venture. All significant intercompany accounts and
transactions have been eliminated.
Effective January 1, 1996, the Partnership adopted Statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." The
Statement requires that an entity review long-lived assets and certain
identifiable intangibles, to be held and used, for impairment whenever
events or changes in circumstances indicate that the carrying amount of
the asset may not be recoverable.
2. Investment in Joint Ventures:
----------------------------
In May 1996, the Partnership entered into a joint venture arrangement,
Middleburg Joint Venture, with an affiliate of the Partnership which has
the same general partners to hold one restaurant property. As of
September 30, 1996, the Partnership and its co-venture partner had
contributed $234,059 and $1,645,024, respectively, to the joint venture
to acquire the restaurant property. As of September 30, 1996, the
Partnership and its co-venture partner owned approximately a 12 percent
and 88 percent interest, respectively, in the profits and losses of the
joint venture. The Partnership accounts for its investment in this
joint venture under the equity method since the Partnership shares
control with the affiliate.
The following presents the combined, condensed financial information for
all of the Partnership's investments in joint ventures at:
September 30, December 31,
1996 1995
------------- ------------
Land and buildings on
operating leases,
less accumulated
depreciation $6,696,149 $6,299,941
Net investment in
direct financing
lease 1,352,953 -
Cash 9,536 387
Receivables 890 -
Prepaid expenses 875 278
Accrued rental income 81,594 65,254
Liabilities 9,892 461
Partners' capital 8,132,105 6,365,399
Revenues 613,284 711,701
Net income 482,360 539,159
The Partnership recognized income totalling $192,885 and $183,541 for
the nine months ended September 30, 1996 and 1995, respectively, from
these joint ventures, $69,183 and $61,194 of which was earned during the
quarters ended September 30, 1996 and 1995, respectively.
3. Subsequent Event:
----------------
In October 1996, the Partnership sold its property in Orlando, Florida,
to the tenant for $1,375,000. In connection therewith, the Partnership
accepted a promissory note in the principal sum of $1,388,568,
representing the sales price plus tenant closing costs that the
Partnership financed on behalf of the tenant. The promissory note bears
interest at a rate of 10.75% per annum, is collateralized by a mortgage
on the property, and will be collected in 12 monthly installments of
interest only and 168 equal monthly installments of principal and
interest. This property was originally acquired by the Partnership in
December 1990 and had a cost of approximately $1,177,000, excluding
acquisition fees and miscellaneous acquisition expenses; therefore, the
Partnership sold the property for approximately $198,000 in excess of
its original purchase price. Due to the fact that the Partnership had
recognized additional rental income (accrued rental income) since
inception of the lease relating to the straight-lining of future
scheduled rent increases in accordance with generally accepted
accounting principles, the Partnership wrote-off the non-recoverable
portion of the accrued rental income as a result of the sale of this
property, resulting in a provision for loss on land and building of
$99,031 for financial reporting purposes for the quarter ended
September 30, 1996. Due to the fact that the straight-lining of future
rent increases over the term of the lease is a non-cash accounting
adjustment, the write-off of these amounts is a loss for financial
statement purposes only.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CNL Income Fund VIII, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on August 18, 1989, to acquire for cash, either
directly or through joint venture arrangements, both newly constructed and
existing restaurants, as well as land upon which restaurants were to be
constructed (the "Properties"), which are leased primarily to operators of
national and regional fast-food and family-style restaurant chains. The
leases are generally triple-net leases, with the lessees responsible for all
repairs and maintenance, property taxes, insurance and utilities. As of
September 30, 1996, the Partnership owned 37 Properties, including interests
in nine 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, 1996 and 1995, 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
$2,647,878 and $2,472,193 for the nine months ended September 30, 1996 and
1995, respectively. The increase in cash from operations for the nine months
ended September 30, 1996, is primarily a result of changes in the
Partnership's working capital.
In May 1996, the Partnership reinvested the remaining net sales proceeds
of approximately $234,100 from the 1995 sale of the Property in Ocoee,
Florida, in Middleburg Joint Venture. The Partnership has an approximate 12
percent interest in the profits and losses of Middleburg Joint Venture and the
remaining interest in this joint venture is held by an affiliate of the
Partnership which has the same general partners.
In October 1996, the Partnership sold its Property in Orlando, Florida,
to the tenant for $1,375,000. In connection with the sale of the Property in
Orlando, Florida, the Partnership accepted a promissory note in the principal
sum of $1,388,568, representing the sales price plus tenant closing costs that
the Partnership financed on behalf of the tenant. The promissory note bears
interest at a rate of 10.75% per annum, is collateralized by a mortgage on the
property, and will be collected in 12 monthly installments of interest only
and 168 equal monthly installments of principal and interest. Proceeds
received from the collection of this mortgage note will be distributed to the
limited partners or will be used for other Partnership purposes. This
Property was originally acquired by the Partnership in December 1990 and had
a cost of approximately $1,177,000, excluding acquisition fees and
miscellaneous acquisition expenses; therefore, the Partnership sold the
Property for approximately $198,000 in excess of its original purchase price.
Due to the fact that the Partnership had recognized additional rental income
(accrued rental income) since inception of the lease relating to the straight-
lining of future scheduled rent increases in accordance with generally
accepted accounting principles, the Partnership wrote-off the non-recoverable
portion of the accrued rental income as a result of the sale of this Property,
resulting in a provision for loss on land and building of $99,031 for
financial reporting purposes for the nine months ended September 30, 1996.
Due to the fact that the straight-lining of future scheduled rent increases
over the term of the lease is a non-cash accounting adjustment, the write-off
of these amounts is a loss for financial statement purposes only.
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, 1996, the Partnership
had $1,486,491 invested in such short-term investments as compared to
$1,620,865 at December 31, 1995. The decrease in cash and cash equivalents
during the nine months ended September 30, 1996, is primarily the result of
the Partnership investing approximately $234,100 in Middleburg Joint Venture,
as described above. Cash and cash equivalents also decreased as a result of
the payment of a special distribution to the limited partners of $175,000 in
January 1996 of cumulative excess operating reserves. The decrease in cash
and cash equivalents was slightly offset by an increase of approximately
$71,600 in rents paid in advance collected at September 30, 1996. The funds
remaining at September 30, 1996, after payment of distributions and other
liabilities, will be used to meet the Partnership's working capital and other
needs.
Total liabilities of the Partnership, including distributions payable,
decreased to $940,210 at September 30, 1996, from $1,027,588 at December 31,
1995, primarily as the result of the Partnership's accruing a special
distribution payable to the limited partners of $175,000 at December 31, 1995,
as described above, which was paid in January 1996. The decrease was
partially offset by an increase of approximately $71,600 in rents paid in
advance collected at September 30, 1996. The general partners believe that
the Partnership has sufficient cash on hand to meet its current working
capital needs.
Based primarily on cash from operations, the Partnership declared
distributions to the limited partners of $2,362,500 for each of the nine
months ended September 30, 1996 and 1995 ($787,500 for each of the quarters
ended September 30, 1996 and 1995). This represents distributions for each
applicable nine months of $0.068 per unit ($0.023 per unit for each applicable
quarter). No distributions were made to the general partners for the quarters
and nine months ended September 30, 1996 and 1995. No amounts distributed or
to be distributed to the limited partners for the nine months ended September
30, 1996 and 1995, 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.
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, 1995, the Partnership and its
consolidated joint venture, Woodway Joint Venture, owned and leased 32 wholly
owned Properties (including one Property in Ocoee, Florida, which was sold in
July 1995), and during the nine months ended September 30, 1996, the
Partnership and its consolidated joint venture owned and leased 29 wholly
owned Properties, to operators of fast-food and family-style restaurant
chains. In connection therewith, during the nine months ended September 30,
1996 and 1995, the Partnership and Woodway Joint Venture earned $2,406,291 and
$2,478,357, respectively, in rental income from operating leases and earned
income from direct financing leases, $791,730 and $813,651 of which was earned
during the quarters ended September 30, 1996 and 1995, respectively. The
decrease in rental and earned income is primarily attributable to a decrease
of approximately $11,900 and $85,800 during the quarter and nine months ended
September 30, 1996, respectively, as a result of the sale of the Property in
Ocoee, Florida, in July 1995. The decrease was offset by an increase of
approximately $24,800 and $88,500 during the quarter and nine months ended
September 30, 1996, respectively, in rental income due to the reinvestment of
a portion of the net sales proceeds in a Property in North Fort Myers,
Florida, in September 1995. Rental and earned income also decreased
approximately $13,900 and $41,800 during the quarter and nine months ended
September 30, 1996, respectively, as a result of the sale of two Properties
located in Jacksonville, Florida, in December 1995. However, as a result of
Partnership accepting mortgage notes for the sale of the two Properties
located in Jacksonville, Florida, interest income increased during the quarter
and nine months ended September 30, 1996, as discussed below.
For the nine months ended September 30, 1996 and 1995, the Partnership
earned $12,111 and $36,000, respectively, in contingent rental income, $4,441
and $8,795 of which was earned during the quarters ended September 30, 1996
and 1995, respectively. The decrease in contingent rental income is primarily
attributable to the Partnership's collecting approximately $2,100 and $23,200
during the quarter and nine months ended September 30, 1995, respectively, in
amounts previously written off as uncollectible relating to two Properties
located in Jacksonville, Florida, and one Property in Orlando, Florida. In
October 1996, the Partnership sold the Property in Orlando, Florida as
described above in "Liquidity and Capital Resources".
Interest and other income were $75,478 and $50,956 for the nine months
ended September 30, 1996 and 1995, respectively, of which $26,288 and $20,986
was earned for the quarters ended September 30, 1996 and 1995, respectively.
The increase in interest and other income is primarily attributable to the
interest earned on the mortgage notes accepted in connection with the sale of
the two Properties located in Jacksonville, Florida, in December 1995.
For the nine months ended September 30, 1995, the Partnership owned and
leased seven Properties indirectly through joint venture arrangements. During
the nine months ended September 30, 1996, the Partnership owned and leased
eight Properties indirectly through joint venture arrangements. In
connection therewith, during the nine months ended September 30, 1996 and
1995, the Partnership earned $192,885 and $183,541, respectively, attributable
to net income earned by these joint ventures, $69,183 and $61,194 of which was
earned during the quarters ended September 30, 1996 and 1995, respectively.
The increase in net income earned by joint ventures is primarily due to the
fact that the Partnership invested in Middleburg Joint Venture in May 1996, as
described in "Liquidity and Capital Resources."
Operating expenses, including depreciation and amortization expense,
were $302,580 and $288,606 for the nine months ended September 30, 1996 and
1995, respectively, of which $97,145 and $96,508 were incurred for the
quarters ended September 30, 1996 and 1995, respectively. The increase in
operating expenses during the nine months ended September 30, 1996, as
compared to the nine months ended September 30, 1995, is primarily
attributable to an increase in accounting and administrative expenses
associated with operating the Partnership and its Properties and the general
partners' obtaining contingent liability and property coverage for the
Partnership, effective May 1995. This insurance policy is intended to reduce
the Partnership's exposure in the unlikely event a tenant's insurance policy
lapses or is insufficient to cover a claim relating to the Property. The
increase in operating expenses during the nine months ended September 30,
1996, was partially offset by a decrease in depreciation expense as a result
of the sale of the two Properties located in Jacksonville, Florida, in
December 1995.
As a result of the sale of the Property in Ocoee, Florida, in July 1995,
the Partnership recognized a gain for financial reporting purposes of $71,638
during the quarter and nine months ended September 30, 1995. No Properties
were sold during the quarter and nine months ended September 30, 1996.
In addition, during the nine months ended September 30, 1996, the
Partnership recorded a provision for loss on land and building in the amount
of $99,031 for financial reporting purposes, relating to the Property in
Orlando, Florida, as discussed above in "Liquidity and Capital Resources."
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, 1996.
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 12th day of November, 1996.
CNL INCOME FUND VIII, 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 informaiton extracted from the balance sheet of
CNL Income Fund VIII, Ltd. at September 30, 1996, and its statement of income
for the nine months then ended and is qualified in its entirety by reference to
the Form 10-Q of CNL Income Fund VIII, Ltd. for the nine months ended September
30, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 1,486,491
<SECURITIES> 0
<RECEIVABLES> 26,217
<ALLOWANCES> 16,683
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 15,906,963
<DEPRECIATION> 1,177,320
<TOTAL-ASSETS> 32,400,737
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 31,352,568
<TOTAL-LIABILITY-AND-EQUITY> 32,400,737
<SALES> 0
<TOTAL-REVENUES> 2,493,880
<CGS> 0
<TOTAL-COSTS> 302,580
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,274,726
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,274,726
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,274,726
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund VIII, Ltd. has an
unclassified balance sheet; therfore, no values are shown above for current
assets and current liabilities.
</FN>
</TABLE>
