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 March 31, 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
0-20017
---------------------------------------
CNL Income Fund IX, Ltd.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
Florida 59-3004138
- ------------------------------------------------------ ------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
<S> <C>
450 South Orange Avenue
Orlando, Florida 32801
- ------------------------------------------------------ ------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number
(including area code) (407) 540-2000
------------------------------------------------
</TABLE>
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
Condensed Statements of Income
Condensed Statements of Partners' Capital
Condensed Statements of Cash Flows
Notes to Condensed Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About
Market Risk
Part II
Other Information
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------------- -------------------
<S> <C>
ASSETS
Land and buildings on operating leases, less
accumulated depreciation and
allowance for loss on building $ 14,584,921 $ 14,692,716
Net investment in direct financing leases 5,303,321 5,319,764
Investment in joint ventures 7,128,189 7,169,101
Cash and cash equivalents 904,504 936,506
Receivables, less allowance for doubtful accounts
of $109,168 and $55,896, respectively 83,462 108,238
Prepaid expenses 19,147 21,447
Lease costs, less accumulated amortization of
$3,452 and $3,077, respectively 11,548 11,923
Accrued rental income 1,190,300 1,183,581
------------------- -------------------
$ 29,225,392 $ 29,443,276
=================== ===================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 41,320 $ 107,139
Escrowed real estate taxes payable 14,130 8,116
Distributions payable 787,501 787,501
Due to related parties 77,765 62,066
Rents paid in advance and deposits 137,280 29,473
------------------- -------------------
Total liabilities 1,057,996 994,295
Commitment (Note 4)
Partners' capital 28,167,396 28,448,981
------------------- -------------------
$ 29,225,392 $ 29,443,276
=================== ===================
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Quarter Ended
March 31,
2000 1999
<S> <C> --------------- --------------
Revenues:
Rental income from operating leases $ 435,595 $ 418,795
Earned income from direct financing leases 130,707 173,188
Interest and other income 23,407 23,251
--------------- --------------
589,709 615,234
--------------- --------------
Expenses:
General operating and administrative 44,089 41,973
Professional services 11,295 9,062
Real estate tax expense 7,691 7,692
State and other taxes 22,648 24,759
Depreciation and amortization 80,779 75,910
Transaction costs 39,953 35,275
--------------- --------------
206,455 194,671
--------------- --------------
Income Before Equity in Earnings of Joint Ventures, Gain on
Sale of Land and Buildings and Provision for Loss on
Building 383,254 420,563
Equity in Earnings of Joint Ventures 150,053 135,902
Gain on Sale of Land and Buildings -- 75,997
Provision for Loss on Building (27,391 ) --
=============== ==============
Net Income $ 505,916 $ 632,462
=============== ==============
Allocation of Net Income:
General partners $ 5,127 $ 6,128
Limited partners 500,789 626,334
--------------- --------------
$ 505,916 $ 632,462
=============== ==============
Net Income Per Limited Partner Unit $ 0.14 $ 0.18
=============== ==============
Weighted Average Number of Limited Partner
Units Outstanding 3,500,000 3,500,000
=============== ==============
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
<TABLE>
<CAPTION>
Quarter Ended Year Ended
March 31, December 31,
2000 1999
------------------- ------------------
<S> <C>
General partners:
Beginning balance $ 238,417 $ 214,763
Net income 5,127 23,654
------------------- ------------------
243,544 238,417
------------------- ------------------
Limited partners:
Beginning balance 28,210,564 28,999,155
Net income 500,789 2,361,413
Distributions ($0.23 and $0.90 per limited partner
unit, respectively) (787,501 ) (3,150,004 )
------------------- ------------------
27,923,852 28,210,564
------------------- ------------------
Total partners' capital $ 28,167,396 $ 28,448,981
=================== ==================
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Quarter Ended
March 31,
2000 1999
---------------- ----------------
<S> <C>
Increase (Decrease) in Cash and Cash Equivalents
Net Cash Provided by Operating Activities $ 755,499 $ 785,344
---------------- ----------------
Cash Flows from Investing Activities:
Proceeds from sale of land, building and net
investment in direct financing lease -- 2,400,000
Additions to land and building on
operating leases -- (1,641,211 )
---------------- ----------------
Net cash provided by investing activities -- 758,789
---------------- ----------------
Cash Flows from Financing Activities:
Distributions to limited partners (787,501 ) (787,501 )
---------------- ----------------
Net cash used in financing activities (787,501 ) (787,501 )
---------------- ----------------
Net Increase (Decrease) in Cash and Cash Equivalents (32,002 ) 756,632
Cash and Cash Equivalents at Beginning of Quarter 936,506 1,287,379
---------------- ----------------
Cash and Cash Equivalents at End of Quarter $ 904,504 $2,044,011
================ ================
Supplemental Schedule of Non-Cash Financing
Activities:
Distributions declared and unpaid at end of
quarter $ 787,501 $ 787,501
================ ================
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters Ended March 31, 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 ended March 31, 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 IX, Ltd. (the "Partnership") for the year ended December
31, 1999.
2. Land and Buildings on Operating Leases:
Land and buildings on operating leases consisted of the following at
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
-------------------- -------------------
<S> <C>
Land $ 7,465,608 $ 7,465,608
Buildings 9,378,821 9,378,821
-------------------- -------------------
16,844,429 16,844,429
Less accumulated depreciation (1,982,749 ) (1,902,345 )
-------------------- -------------------
14,861,680 14,942,084
Less allowance for loss on building (276,759 ) (249,368 )
-------------------- -------------------
$ 14,584,921 $14,692,716
==================== ===================
</TABLE>
At December 31,1998, the Partnership recorded a provision for loss on
building in the amount of $249,368 for financial reporting purposes
relating to the Perkins property in Williamsville, New York. The tenant
of this property filed for bankruptcy and ceased payment of rents under
the terms of its lease agreement. At March 31, 2000, the Partnership
increased the provision for loss on building by an additional amount of
$27,391. The total allowance represents the difference between the
carrying value of the
<PAGE>
CNL INCOME FUND IX, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters Ended March 31, 2000 and 1999
2. Land and Buildings on Operating Leases- Continued:
property at March 31, 2000 and the current estimate of net realizable
value for this property.
3. 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.
4. Commitment:
In March 2000, the Partnership entered into an agreement with an
unrelated third party to sell the Perkins property in Williamsville,
New York. At March 31, 2000, the Partnership established a provision
for loss on building related to the anticipated sale of this property
(see Note 2). As of May 1, 2000, the sale had not occurred.
<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
national and regional fast-food and family-style 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 March 31, 2000,
the Partnership owned 42 Properties, which included interests in 13 Properties
owned by joint ventures in which the Partnership is a co-venturer and three
Properties owned with affiliates of the general partners as tenants-in-common.
Capital Resources
The Partnership 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) during the quarters ended March
31, 2000 and 1999, of $755,499 and $785,344, respectively. The decrease in cash
from operations for the quarter ended March 31, 2000, as compared to the quarter
ended March 31, 1999, was primarily a result of 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 such as
demand deposit accounts at commercial banks, certificates of deposit, and money
market accounts 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 March 31, 2000, the Partnership had $904,504 invested in such
short-term investments, as compared to $936,506 at December 31, 1999. The funds
remaining at March 31, 2000, will be used to pay distributions and other
liabilities.
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 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.
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, the Partnership
declared distributions to the limited partners of $787,501 for each of the
quarters ended March 31, 2000 and 1999. This represents distributions for each
applicable quarter of $0.23 per unit. No distributions were made to the general
partners for the quarters ended March 31, 2000 and 1999. No amounts distributed
to the limited partners for the quarters ended March 31, 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.
Total liabilities of the Partnership, including distributions payable,
increased to $1,057,996 at March 31, 2000, from $994,295 at December 31, 1999,
primarily as a result of an increase in escrowed real estate taxes payable and
an increase in rents paid in advance at March 31, 2000 as compared to December
31, 1999. Total liabilities at March 31, 2000, to the extent they exceed cash
and cash equivalents at March 31, 2000, will be paid from future cash from
operations and, in the event the general partners elect to make additional
contributions, from general partners' contributions.
In March 2000, the Partnership entered into an agreement with an
unrelated third party to sell the Perkins Property in Williamsville, New York.
As of May 1, 2000, the sale had not occurred.
Long-Term Liquidity
The Partnership has no long-term debt or other long-term liquidity
requirements.
Results of Operations
During the quarter ended March 31, 1999, the Partnership owned and
leased 28 wholly owned Properties (which included two Properties which were sold
during 1999), and during the quarter ended March 31, 2000, the Partnership owned
and leased 26 wholly owned Properties to operators of fast-food and family-style
restaurant chains. In connection therewith, during the quarters ended March 31,
2000 and 1999, the Partnership earned $566,302 and $591,983, respectively, in
rental income from operating leases, earned income from direct financing leases
and contingent rental income from these Properties. Rental and earned income
decreased during the quarter ended March 31, 2000, as compared to the quarter
ended March 31, 1999, primarily as a result of the Partnership establishing an
allowance for doubtful accounts of approximately $49,600 for past due rental
amounts relating to four Properties in accordance with the Partnership's policy.
The general partners will continue to pursue collection of past due rental
amounts relating to these Properties and will recognize such amounts as income
if collected.
In addition, the decrease in rental, earned, and contingent rental
income during the quarter ended March 31, 2000, as compared to the quarter ended
March 31, 1999, was partially due to a decrease in rental and earned income of
approximately $31,600, as a result of the sale of two Properties in 1999. The
decrease was offset by an increase of approximately $39,300 due to the fact that
the Partnership reinvested a portion of the net sales proceeds in a Property in
Albany, Georgia, during 1999.
<PAGE>
The decrease in rental, earned and contingent rental income was also
partially offset by an increase of approximately $11,700 during the quarter
ended March 31, 2000, due to the fact that the Partnership recorded contingent
rental amounts during quarter ended March 31, 2000 for the property in Albany,
Georgia purchased in 1999.
For the quarter ended March 31, 1999, the Partnership also owned and
leased 13 Properties indirectly through joint venture arrangements and one
Property with an affiliate of the general partners as tenants-in-common. During
the quarter ended March 31, 2000, the Partnership owned and leased two
additional Properties with affiliates of the general partners as
tenants-in-common. In connection therewith, during the quarters ended March 31,
2000 and 1999, the Partnership earned $150,053 and $135,902, respectively,
attributable to net income earned by these joint ventures. The increase in net
income earned by joint ventures during the quarter ended March 31, 2000, as
compared to the quarter ended March 31, 1999, was primarily due to the fact that
subsequent to March 31, 1999, the Partnership reinvested the net sales proceeds
it received from a Property sold in 1999, in two Properties as tenants-in-common
with affiliates of the general partners.
Operating expenses, including depreciation and amortization expense,
were $206,455 and $194,671 for the quarters ended March 31, 2000 and 1999,
respectively.
As a result of the 1999 sales of the Properties in Corpus Christi,
Texas and Rochester, New York, the Partnership recognized a total gain of
$75,997 for financial reporting purposes during the quarter ended March 31,
1999. No Properties were sold during the quarter ended March 31, 2000.
During the quarter ended March 31, 2000, the Partnership recorded a
provision for loss on building in the amount of $27,391, for financial reporting
purposes relating to the Perkins Property in Williamsville, New York. The tenant
of this property filed for bankruptcy and ceased payment of rents under the
terms of its lease agreement. The allowance at March 31, 2000 represents the
difference between the carrying value of the Property at March 31, 2000 and the
current estimate of net realizable value for this Property.
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.
Dismissal of Legal Action
As described in greater detail in Part II, Item 1 ("Legal Proceedings"), in 1999
two groups of limited partners in several CNL Income Funds filed purported class
action suits against the general partners and APF alleging, among other things,
that the general partners had breached their fiduciary duties in connection with
the proposed Merger. These actions were later consolidated into one action. On
April 25, 2000, the judge in the consolidated action issued a Stipulated Final
Order of Dismissal of Consolidated Action, dismissing the action without
prejudice, with each party to bear its own costs and attorneys' fees.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
On May 11, 1999, four limited partners in several CNL Income Funds
served a derivative and purported class action lawsuit filed April
22, 1999 against the general partners and APF in the Circuit Court
of the Ninth Judicial Circuit of Orange County, Florida, alleging
that the general partners breached their fiduciary duties and
violated provisions of certain of the CNL Income Fund partnership
agreements in connection with the proposed Merger. The plaintiffs
are seeking unspecified damages and equitable relief. On July 8,
1999, the plaintiffs filed an amended complaint which, in addition
to naming three additional plaintiffs, includes allegations of
aiding and abetting and conspiring to breach fiduciary duties,
negligence and breach of duty of good faith against certain of the
defendants and seeks additional equitable relief. As amended, the
caption of the case is Jon Hale, Mary J. Hewitt, Charles A. Hewitt,
Gretchen M. Hewitt, Bernard J. Schulte, Edward M. and Margaret
Berol Trust, and Vicky Berol v. James M. Seneff, Jr., Robert A.
Bourne, CNL Realty Corporation, and CNL American Properties Fund,
Inc., Case No. CIO-99-0003561.
On June 22, 1999, a limited partner of several CNL Income Funds
served a purported class action lawsuit filed April 29, 1999
against the general partners and APF, Ira Gaines, individually and
on behalf of a class of persons similarly situated, v. CNL American
Properties Fund, Inc., James M. Seneff, Jr., Robert A. Bourne, CNL
Realty Corporation, CNL Fund Advisors, Inc., CNL Financial
Corporation a/k/a CNL Financial Corp., CNL Financial Services, Inc.
and CNL Group, Inc., Case No. CIO-99-3796, in the Circuit Court of
the Ninth Judicial Circuit of Orange County, Florida, alleging that
the general partners breached their fiduciary duties and that APF
aided and abetted their breach of fiduciary duties in connection
with the proposed Merger. The plaintiff is seeking unspecified
damages and equitable relief.
On September 23, 1999, Judge Lawrence Kirkwood entered an order
consolidating the two cases under the caption In re: CNL Income
Funds Litigation, Case No. 99-3561. Pursuant to this order, the
plaintiffs in these cases filed a consolidated and amended
complaint on November 8, 1999. On December 22, 1999, the general
partners and CNL Group, Inc. filed motions to dismiss and motions
to strike. On December 28, 1999, APF and CNL Fund Advisors, Inc.
filed motions to dismiss. On March 6, 2000, all of the defendants
filed a Joint Notice of Filing Form 8-K Reports and Suggestion of
Mootness.
On April 25, 2000, Judge Kirkwood issued a Stipulated Final Order
of Dismissal of Consolidated Action, dismissing the action without
prejudice, with each party to bear its own costs and attorneys'
fees.
Item 2. Changes in Securities. Inapplicable.
Item 3. Default 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 Affidavit and Certificate of Limited Partnership of CNL
Income Fund IX, Ltd. (Included as Exhibit 3.1 to
Registration Statement No. 33-35049 on Form S-11 and
incorporated herein by reference.)
4.1 Affidavit and Certificate of Limited Partnership of CNL
Income Fund IX, Ltd. (Included as Exhibit 3.1 to
Registration Statement No. 33-35049 on Form S-11 and
incorporated herein by reference.)
4.2 Amended and Restated Agreement of Limited Partnership of
CNL Income Fund IX, Ltd. (Included as Exhibit 4.6 to
Post-Effective Amendment No. 1 to Registration Statement
No. 33-35049 on Form S-11 and incorporated herein by
reference.)
10.1 Management Agreement between CNL Income Fund IX, Ltd. and
CNL Investment Company (Included as Exhibit 10.1 to Form
10-K filed with the Securities and Exchange Commission on
March 17, 1998, and incorporated herein by reference.)
10.2 Assignment of 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 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
A Current Report on Form 8-K dated February 23, 2000 was filed on
March 1, 2000, describing the termination of the proposed merger of the
Partnership with and into a subsidiary of CNL American Properties Fund,
Inc.
<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 9th day of May, 2000.
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 March 31, 2000, and its statement
of income for the three months then ended and is qualified in its entirety by
reference to the Form 10Q of CNL Income Fund IX, Ltd. for the three months ended
March 31, 2000.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 904,504
<SECURITIES> 0
<RECEIVABLES> 192,630
<ALLOWANCES> 109,168
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 16,567,670
<DEPRECIATION> 1,982,749
<TOTAL-ASSETS> 29,225,392
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 28,167,396
<TOTAL-LIABILITY-AND-EQUITY> 29,225,392
<SALES> 0
<TOTAL-REVENUES> 589,709
<CGS> 0
<TOTAL-COSTS> 206,455
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 505,916
<INCOME-TAX> 0
<INCOME-CONTINUING> 505,916
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 505,916
<EPS-BASIC> 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>
