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, 1998
-------------------------------------------------------
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
0-20017
----------------------------
CNL Income Fund IX, Ltd.
----------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-3004138
(State of other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
400 E. South Street
Orlando, Florida 32801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number
(including area code) (407) 650-1000
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
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 6-11
Part II
Other Information 12
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
----------------- ------------------
<S> <C>
ASSETS
Land and buildings on operating leases, less
accumulated depreciation of $1,694,248
and $1,497,770 $15,043,968 $14,163,111
Net investment in direct financing leases 6,311,643 7,482,757
Investment in joint ventures 6,497,278 6,619,364
Cash and cash equivalents 1,279,526 1,250,388
Receivables, less allowance for doubtful
accounts of $261,045 and $108,316 10,491 96,134
Prepaid expenses 6,854 3,924
Lease costs, less accumulated amortization
of $1,202 and $77 13,798 14,923
Accrued rental income 1,241,786 1,465,820
----------------- -----------------
$30,405,344 $31,096,421
================= =================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 888 $ 4,490
Accrued and escrowed real estate
taxes payable 28,221 45,591
Distributions payable 787,501 787,501
Due to related parties 4,463 4,619
Rents paid in advance and deposits 120,771 106,996
----------------- -----------------
Total liabilities 941,844 949,197
Partners' capital 29,463,500 30,147,224
----------------- -----------------
$30,405,344 $31,096,421
================= =================
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
------------ ------------- ------------- -------------
<S> <C>
Revenues:
Rental income from operating
leases $ 455,811 $ 426,942 $ 1,308,630 $ 1,306,829
Adjustments to accrued rental income (4,600 ) -- (272,200 ) --
Earned income from direct financing
leases 209,650 188,483 551,913 611,594
Contingent rental income 943 20,436 42,604 50,263
Interest and other income 11,871 9,045 39,539 38,638
------------ ------------- ------------- -------------
673,675 644,906 1,670,486 2,007,324
------------ ------------- ------------- -------------
Expenses:
General operating and
administrative 41,132 40,746 112,211 111,993
Bad debt expense 4,148 -- 9,281 21,000
Professional services 6,141 5,359 20,883 16,490
Real estate taxes -- 4,063 -- 23,191
State and other taxes -- -- 14,337 11,127
Depreciation and amortization 71,113 62,870 197,603 188,612
------------ ------------- ------------- -------------
122,534 113,038 354,315 372,413
------------ ------------- ------------- -------------
Income Before Equity in Earnings
of Joint Ventures and Gain on Sale
of Land and Building 551,141 531,868 1,316,171 1,634,911
Equity in Earnings of Joint Ventures 155,940 148,487 432,608 373,525
Gain on Sale of Land and Building -- -- -- 199,643
------------ ------------- ------------- -------------
Net Income $ 707,081 $ 680,355 $ 1,748,779 $ 2,208,079
============ ============= ============= =============
Allocation of Net Income:
General partners $ 7,071 $ 6,803 $ 17,488 $ 20,084
Limited partners 700,010 673,552 1,731,291 2,187,995
------------ ------------- ------------- -------------
$ 707,081 $ 680,355 $ 1,748,779 $ 2,208,079
============ ============= ============= =============
Net Income Per Limited Partner Unit $ 0.20 $ 0.19 $ 0.49 $ 0.63
============ ============= ============= =============
Weighted Average Number of Limited
Partner Units Outstanding 3,500,000 3,500,000 3,500,000 3,500,000
============ ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
<TABLE>
<CAPTION>
Nine Months Ended Year Ended
September 30, December 31,
1998 1997
---------------------------- ------------------
<S> <C>
General partners:
Beginning balance $ 190,772 $ 163,392
Net income 17,488 27,380
---------------- ---------------
208,260 190,772
---------------- ---------------
Limited partners:
Beginning balance 29,956,452 30,196,204
Net income 1,731,291 2,910,252
Distributions ($0.70 and
$0.90 per limited partner
unit, respectively) (2,432,503 ) (3,150,004 )
---------------- ---------------
29,255,240 29,956,452
---------------- ---------------
Total partners' capital $29,463,500 $30,147,224
================ ===============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1998 1997
--------------- ---------------
<S> <C>
Increase (Decrease) in Cash and Cash
Equivalents:
Net Cash Provided by Operating Activities $ 2,461,641 $ 2,363,892
---------------- ---------------
Cash Flows from Investing Activities:
Proceeds from sale of land and building -- 1,053,571
Investment in joint venture -- (1,049,762 )
---------------- ---------------
Net cash provided by investing
activities -- 3,809
---------------- ---------------
Cash Flows from Financing Activities:
Distributions to limited partners (2,432,503 ) (2,397,502 )
---------------- ---------------
Net cash used in financing
activities (2,432,503 ) (2,397,502 )
---------------- ---------------
Net Increase (Decrease) in Cash and Cash
Equivalents 29,138 (29,801 )
Cash and Cash Equivalents at Beginning
of Period 1,250,388 1,288,618
---------------- ---------------
Cash and Cash Equivalents at End of
Period $ 1,279,526 $ 1,258,817
================ ===============
Supplemental Schedule of Non-Cash Investing
and Financing Activities
Net investment in direct financing leases
reclassified to land and building on
operating leases due to lease amendments $ 1,077,335 $ --
================ ===============
Distributions declared and unpaid at end of
period $ 787,501 $ 787,501
================ ===============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine months Ended September 30, 1998 and 1997
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, 1998, may not be
indicative of the results that may be expected for the year ending
December 31, 1998. Amounts as of December 31, 1997, 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 IX, Ltd. (the "Partnership") for the year ended December
31, 1997.
In May 1998, the Financial Accounting Standards Board reached a
consensus in EITF 98-9, entitled "Accounting for Contingent Rent in the
Interim Financial Periods." Adoption of this consensus did not have a
material effect on the Partnership's financial position or results of
operations.
2. Net Investment in Direct Financing Leases:
In August 1998, four of the Partnership's leases were amended. As a
result, the Partnership reclassified the direct financing leases to
operating leases. In accordance with Statement of Financial Accounting
Standards #13, "Accounting for Leases," the Partnership recorded each
of the reclassified leases at the lower of original cost, present fair
value, or present carrying amount. No loss on termination of direct
financing lease was recorded for financial reporting purposes.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CNL Income Fund IX, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on April 16, 1990, 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
selected 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, 1998, the Partnership owned 41 Properties, which included
interests in 13 Properties owned by joint ventures in which the Partnership is a
co-venturer and one Property owned with an affiliate as tenants in common.
Liquidity and Capital Resources
The Partnership's primary source of capital for the nine months ended
September 30, 1998 and 1997, 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
$2,461,641 and $2,363,892 for the nine months ended September 30, 1998 and 1997,
respectively. The increase in cash from operations for the nine months ended
September 30, 1998, as compared to the nine months ended September 30, 1997, is
primarily a result of changes in income and expenses as described below in
"Results of Operations" and changes in the Partnership's working capital.
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, 1998, the Partnership had
$1,279,526 invested in such short-term investments, as compared to $1,250,388 at
December 31, 1997. The funds remaining at September 30, 1998, 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 $941,844 at September 30, 1998, from $949,197 at December 31, 1997.
The general partners believe that the Partnership has sufficient cash on hand to
meet its current working capital needs.
Based on cash from operations, and for the nine months ended September
30, 1998, accumulated excess operating reserves, the Partnership declared
distributions to the limited partners of $2,432,503 and $2,362,503 for the nine
months ended September 30, 1998 and 1997, respectively ($787,501 for each of the
quarters ended September 30, 1998 and 1997). This represents distributions of
$0.70 and $0.68 per unit for the nine months ended September 30, 1998 and 1997,
respectively ($0.23 per unit for each of the quarters ended June 30, 1998 and
1997). No distributions were made to the general partners for the quarters and
nine months ended September 30, 1998 and 1997. No amounts distributed to the
limited partners for the nine months ended September 30, 1998 and 1997, 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
6
<PAGE>
Liquidity and Capital Resources - Continued
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 general partners have been informed by CNL American Properties
Fund, Inc. ("APF"), an affiliate of the general partners, that it intends to
significantly increase its asset base by proposing to acquire affiliates of the
general partners which have similar restaurant property portfolios, including
the Partnership. APF is a real estate investment trust whose primary business is
the ownership of restaurant properties leased on a long-term, "triple-net" basis
to operators of national and regional restaurant chains. Accordingly, the
general partners anticipate that APF will make an offer to acquire the
Partnership in exchange for securities of APF. The general partners have
recently retained financial and legal advisors to assist them in evaluating and
negotiating any offer that may be proposed by APF. However, at this time, APF
has made no such offer. In the event that an offer is made, the general partners
will evaluate it and if the general partners believe that the offer is worth
pursuing, the general partners will promptly inform the limited partners. Any
agreement to sell the Partnership would be subject to the approval of the
limited partners in accordance with the terms of the partnership agreement.
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, 1997, the Partnership owned
and leased 28 wholly owned Properties (including one Property in Alpharetta,
Georgia, which was sold in June 1997) and during the nine months ended September
30, 1998, the Partnership owned and leased 27 wholly owned Properties, to
operators of fast-food and family-style restaurant chains. In connection
therewith, during the nine months ended September 30, 1998 and 1997, the
Partnership earned $1,588,343 and $1,918,423, respectively, in rental income
from operating leases (net of adjustments to accrued rental income) and earned
income from direct financing leases from these Properties, $660,861 and $615,425
of which was earned during the quarters ended September 30, 1998 and 1997,
respectively. The decrease in rental and earned income during the nine months
ended September 30, 1998, as compared to the nine months ended September 30,
1997, is partially attributable to, and the increase in rental and earned income
during the quarter ended September 30, 1998, as compared to the quarter ended
September 30, 1997, is partially offset by, the fact that in May 1998, the
tenant of the Properties in Williamsville and Rochester, New York, filed for
bankruptcy. As a result, during the quarter and nine months ended September 30,
1998, the Partnership wrote off approximately $4,600 and $272,200, respectively,
of accrued rental income (non-cash accounting adjustments relating to the
straight-lining of future scheduled rent increases over the lease term in
accordance with
7
<PAGE>
Results of Operations - Continued
generally accepted accounting principles). This decrease was partially offset by
the fact that during the quarter and nine months ended September 30, 1998, the
Partnership collected and recognized as income, approximately $65,700 in rental
and earned income from the tenant of these Properties, for which the Partnership
had previously established an allowance for doubtful accounts. The tenant has
rejected the lease relating to the Property in Williamsville, New York and, as a
result, the Partnership will not receive rental income from this Property. The
tenant is currently in the process of deciding whether to affirm or reject the
lease for the Property in Rochester, New York. If the lease for the Rochester,
New York Property is rejected, the Partnership anticipates that rental income
from this Property will terminate. However, the general partners do not
anticipate that any decrease in rental income due to lost revenues relating to
these Properties will have a material effect on the Partnership's financial
position or results of operations. The general partners are currently seeking
either new tenants or purchasers for these Properties.
The decrease in rental and earned income during the nine months ended
September 30, 1998, is also partially attributable to, and the increase during
the quarter ended September 30, 1998, is partially offset by, the fact that the
Partnership established an allowance for doubtful accounts of approximately
$14,600 and $43,900 for the quarter and nine months ended September 30, 1998,
respectively, relating to the Property in Grand Prairie, Texas, in accordance
with its collection policy. No such allowance was established during the quarter
and nine months ended September 30, 1997. The Partnership intends to pursue
collection of past due amounts from this tenant and will recognize such amounts
as income if collected.
The decrease in rental and earned income during the nine months ended
September 30, 1998, as compared to the nine months ended September 30, 1997, is
partially attributable to, and the increase during the quarter ended September
30, 1998, as compared to the quarter ended September 30, 1997, is partially
offset by, a decrease of approximately $20,400 and $21,800 for the quarter and
nine months ended September 30, 1998, respectively, in rental and earned income
due to the fact that the Partnership amended the leases for the Properties in
Shelby, North Carolina; Maple Heights, Ohio; Watertown, New York and Carrboro,
North Carolina to provide for rent reductions.
In addition, rental and earned income decreased approximately $47,700
during the nine months ended September 30, 1998, as a result of the sale of the
Property in Alpharetta, Georgia, in June 1997. The Partnership reinvested the
net sales proceeds in an additional Property as tenants-in-common with
affiliates of the general partners in July 1997, resulting in an increase in
equity in earnings of joint ventures, as described below.
The decrease in rental and earned income during the nine months ended
September 30, 1998, as compared to the nine months ended September 30, 1997, was
partially offset by, and the increase during the quarter ended September 30,
1998, as compared to the quarter ended September 30, 1997, is partially
attributable to, the fact that in September 1997, the Partnership re-leased the
Property in Copley Township, Ohio to a new tenant to operate the Property as a
Shell's Seafood restaurant and rent commenced in December 1997. The Partnership
had ceased recording rental income relating to the former tenant in September
1997.
8
<PAGE>
Results of Operations - Continued
During the nine months ended September 30, 1998 and 1997, the
Partnership also earned $42,604 and $50,263, respectively, in contingent rental
income, $943 and $20,436 of which was earned during the quarters ended September
30, 1998 and 1997, respectively. The decrease during the quarter and nine months
ended September 30, 1998, as compared to the quarter and nine months ended
September 30, 1997, is partially attributable to the fact that no contingent
rents were recorded during the quarter ended September 30, 1998 as a result of
the Partnership adopting EITF 98-9, a consensus reached by the Financial
Accounting Standards Board entitled "Accounting for Contingent Rent in the
Interim Financial Periods." The EITF states that a lessor should defer
recognition of contingent rent in interim periods until the specified target
that triggers the contingent rental income is achieved. Adoption of this
consensus did not have a material effect on the Partnership's financial position
or results of operations. The decrease in contingent rental income during the
nine months ended September 30, 1998, as compared to the nine months ended
September 30, 1997, is partially offset by an increase in gross sales of certain
restaurant, the leases of which require the payment of contingent rent.
For the nine months ended September 30, 1998 and 1997, the Partnership
also owned and leased 13 Properties indirectly through joint venture
arrangements and during the nine months ended September 30, 1998, the
Partnership owned and leased one Property with an affiliate as
tenants-in-common. In connection therewith, during the nine months ended
September 30, 1998 and 1997, the Partnership earned $432,608 and $373,525,
respectively, attributable to net income earned by these joint ventures,
$155,940 and $148,487 of which was earned during the quarters ended September
30, 1998 and 1997, respectively. The increase in net income earned by joint
ventures for the quarter and nine months ended September 30, 1998 is primarily
due to the fact that in July 1997, the Partnership reinvested the net sales
proceeds it received from the sale of the Property in Alpharetta, Georgia, in an
IHOP Property located in Englewood, Colorado, as tenants-in-common, with an
affiliate of the general partners.
Operating expenses, including depreciation and amortization expense,
were $354,315 and $372,413 for the nine months ended September 30, 1998 and
1997, respectively, of which $122,534 and $113,038 were incurred for the
quarters ended September 30, 1998 and 1997, respectively. The decrease in
operating expenses during the nine months ended September 30, 1998, as compared
to the nine months ended September 30, 1997, is partially attributable to the
fact that during the nine months ended September 30, 1997, the Partnership
recorded bad debt expense of $21,000 relating to the Property in Copley
Township, Ohio, as a result of the former tenant ceasing operating the Property
in April 1997. In addition, the decrease in operating expenses during the nine
months ended September 30, 1998, is partially due to the fact that the
Partnership recorded past due real estate taxes relating to the Property in
Copley Township, Ohio, of approximately $23,200 during the nine months ended
September 30, 1997. Due to the fact that the Property was re-leased to a new
tenant in September 1997, no such expenses were recorded during the nine months
ended September 30, 1998.
The increase in operating expenses during the quarter ended September
30, 1998, was primarily attributable to an increase in depreciation expense due
to the fact that the Partnership reclassified certain leases from direct
financing leases to operating leases in connection with
9
<PAGE>
Results of Operations - Continued
lease amendments described above. In accordance with the Statement of Financial
Accounting Standards #13, " Accounting for Leases," the Partnership recorded
each of the reclassified leases at the lower of original cost, present fair
value, or present carrying amount.
As a result of the sale of the Property in Alpharetta, Georgia during
1997, the Partnership recognized a gain for financial reporting purposes of
$199,643 during the nine months ended September 30, 1997. No Properties were
sold during the nine months ended September 30, 1998.
The Year 2000 problem is the result of information technology systems
and embedded systems (products which are made with microprocessor (computer)
chips such as HVAC systems, physical security systems and elevators) using a
two-digit format, as opposed to four digits, to indicate the year. Such
information technology and embedded systems may be unable to properly recognize
and process date-sensitive information beginning January 1, 2000.
The Partnership does not have any information technology systems.
Affiliates of the general partners provide all services requiring the use of
information technology systems pursuant to a management agreement with the
Partnership. The maintenance of embedded systems, if any, at the Partnership's
properties is the responsibility of the tenants of the properties in accordance
with the terms of the Partnership's leases. The general partners and affiliates
have established a team dedicated to reviewing the internal information
technology systems used in the operation of the Partnership, and the information
technology and embedded systems and the Year 2000 compliance plans of the
Partnership's tenants, significant suppliers, financial institutions and
transfer agent.
The information technology infrastructure of the affiliates of the
general partners consists of a network of personal computers and servers that
were obtained from major suppliers. The affiliates utilize various
administrative and financial software applications on that infrastructure to
perform the business functions of the Partnership. The inability of the general
partners and affiliates to identify and timely correct material Year 2000
deficiencies in the software and/or infrastructure could result in an
interruption in, or failure of, certain of the Partnership's business activities
or operations. Accordingly, the general partners and affiliates have requested
and are evaluating documentation from the suppliers of the affiliates regarding
the Year 2000 compliance of their products that are used in the business
activities or operations of the Partnership. The costs expected to be incurred
by the general partners and affiliates to become Year 2000 compliant will be
incurred by the general partners and affiliates; therefore, these costs will
have no impact on the Partnership's financial position or results of operations.
The Partnership has material third party relationships with its
tenants, financial institutions and transfer agent. The Partnership depends on
its tenants for rents and cash flows, its financial institutions for
availability of cash and its transfer agent to maintain and track investor
information. If any of these third parties are unable to meet their obligations
to the Partnership because of the Year 2000 deficiencies, such a failure may
have a material impact on the Partnership. Accordingly, the general partners
have requested and are evaluating documentation from the Partnership's tenants,
financial institutions, and transfer agent relating to
10
<PAGE>
Results of Operations - Continued
their Year 2000 compliance plans. At this time, the general partners have not
yet received sufficient certifications to be assured that the tenants, financial
institutions, and transfer agent have fully considered and mitigated any
potential material impact of the Year 2000 deficiencies. Therefore, the general
partners do not, at this time, know of the potential costs to the Partnership of
any adverse impact or effect of any Year 2000 deficiencies by these third
parties.
The general partners currently expect that all year 2000 compliance
testing and any necessary remedial measures on the information technology
systems used in the business activities and operations of the Partnership will
be completed prior to June 30, 1999. Based on the progress the general partners
and affiliates have made in identifying and addressing the Partnership's Year
2000 issues and the plan and timeline to complete the compliance program, the
general partners do not foresee significant risks associated with the
Partnership's Year 2000 compliance at this time. Because the general partners
and affiliates are still evaluating the status of the systems used in business
activities and operations of the Partnership and the systems of the third
parties with which the Partnership conducts its business, the general partners
have not yet developed a comprehensive contingency plan and are unable to
identify "the most reasonably likely worst case scenario" at this time. As the
general partners identify significant risks related to the Partnership's Year
2000 compliance or if the Partnership's Year 2000 compliance program's progress
deviates substantially from the anticipated timeline, the general partners will
develop appropriate contingency plans.
11
<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, 1998.
12
<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 11th day of November, 1998.
CNL INCOME FUND IX, 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 IX, Ltd. at September 30, 1998, 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 IX, Ltd. for the nine
months ended September 30, 1998.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,279,526
<SECURITIES> 0
<RECEIVABLES> 271,536
<ALLOWANCES> 261,045
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 16,738,216
<DEPRECIATION> 1,694,248
<TOTAL-ASSETS> 30,405,344
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 29,463,500
<TOTAL-LIABILITY-AND-EQUITY> 30,405,344
<SALES> 0
<TOTAL-REVENUES> 1,670,486
<CGS> 0
<TOTAL-COSTS> 345,034
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 9,281
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,748,779
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,748,779
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,748,779
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund IX, Ltd. has an
unclassified balance sheet; therefore, no values are shown above for current
assets and current liabilities.
</FN>
</TABLE>
