FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number
0-23968
CNL Income Fund XIII, Ltd.
(Exact name of registrant as specified in its charter)
Florida 59-3143094
(State or other juris- (I.R.S. Employer
diction of incorporation Identification No.)
or organization)
400 E. South Street, #500
Orlando, Florida 32801
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number
(including area code) (407) 422-1574
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X No
<PAGE>
CONTENTS
Part I Page
Item 1. Financial Statements:
Condensed Balance Sheets 1
Condensed Statements of Income 2
Condensed Statements of Partners' Capital 3
Condensed Statements of Cash Flows 4
Notes to Condensed Financial Statements 5-7
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 8-12
Part II
Other Information 13
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
September 30, December 31,
ASSETS 1997 1996
------------- ------------
Land and buildings on operating
leases, less accumulated
depreciation of $1,599,462
and $1,305,886 and allowance for
loss on land of $21,431 in 1997 $23,297,632 $23,612,639
Net investment in direct financing
leases, less allowance on
impairment of $27,107 in 1997 8,454,038 8,543,916
Investment in joint ventures 1,524,238 976,531
Cash and cash equivalents 868,280 1,103,568
Restricted cash - 550,770
Receivables, less allowance for
doubtful accounts of $230,787
and $150,734 153,978 100,955
Prepaid expenses 13,445 9,143
Organization costs, less accumu-
lated amortization of $8,922
and $7,422 1,078 2,578
Accrued rental income, less allow-
ance for doubtful accounts
of $75,716 and $72,734 1,329,108 1,044,970
----------- -----------
$35,641,797 $35,945,070
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 5,148 $ 6,340
Accrued and escrowed real estate
taxes payable - 14,092
Distributions payable 850,002 850,002
Due to related parties 8,791 2,594
Rents paid in advance 98,213 54,105
----------- -----------
Total liabilities 962,154 927,133
Commitment (Note 5)
Partners' capital 34,679,643 35,017,937
----------- -----------
$35,641,797 $35,945,070
=========== ===========
See accompanying notes to condensed financial statements.
1
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C>
Revenues:
Rental income from
operating leases $ 645,571 $ 641,863 $1,855,547 $1,855,032
Earned income from direct
financing leases 179,015 242,868 656,665 684,974
Contingent rental income 89,378 68,321 195,164 182,899
Interest and other income 17,913 21,263 39,198 43,631
---------- ---------- ---------- ----------
931,877 974,315 2,746,574 2,766,536
---------- ---------- ---------- ----------
Expenses:
General operating and
administrative 35,046 40,487 116,069 124,751
Professional services 4,520 10,123 16,533 20,879
Bad debt expense 123,862 - 123,862 35,445
Management fees to
related parties 8,340 8,628 25,596 26,008
Real estate taxes - 2,124 - 10,680
State and other taxes - - 18,301 16,793
Depreciation and
amortization 98,418 98,358 295,683 295,075
---------- ---------- ---------- ----------
270,186 159,720 596,044 529,631
---------- ---------- ---------- ----------
Income Before Equity in
Earnings of Joint
Ventures and Provision
for Loss on Land and
Net Investment in Direct
Financing Lease 661,691 814,595 2,150,530 2,236,905
Equity in Earnings of
Joint Ventures 39,217 24,706 109,720 77,231
Provision for Loss on
Land and Net Investment
in Direct Financing Lease (7,336) - (48,538) -
---------- ---------- ---------- ---------
Net Income $ 693,572 $ 839,301 $2,211,712 $2,314,136
========== ========== ========== ==========
Allocation of Net Income:
General partners $ 6,977 $ 8,393 $ 22,443 $ 23,141
Limited partners 686,595 830,908 2,189,269 2,290,995
---------- ---------- ---------- ----------
$ 693,572 $ 839,301 $2,211,712 $2,314,136
========== ========== ========== ==========
Net Income Per Limited
Partner Unit $ 0.17 $ 0.21 $ 0.55 $ 0.57
========== ========== ========== ==========
Weighted Average Number
of Limited Partner Units
Outstanding 4,000,000 4,000,000 4,000,000 4,000,000
========== ========== ========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Nine Months Ended Year Ended
September 30, December 31,
1997 1996
----------------- -----------
General partners:
Beginning balance $ 106,517 $ 75,027
Net income 22,443 31,490
----------- -----------
128,960 106,517
----------- -----------
Limited partners:
Beginning balance 34,911,420 35,111,103
Net income 2,189,269 3,200,325
Distributions ($0.64 and $0.85
per limited partner unit,
respectively) (2,550,006) (3,400,008)
----------- -----------
34,550,683 34,911,420
----------- -----------
Total partners' capital $34,679,643 $35,017,937
=========== ===========
See accompanying notes to condensed financial statements.
3
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
1997 1996
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents:
Net Cash Provided by Operating
Activities $ 2,511,698 $ 2,540,115
----------- -----------
Cash Flows from Investing
Activities:
Investment in joint ventures (550,000) -
Decrease in restricted cash 550,000 -
Loan to tenant (196,980) -
----------- ----------
Net cash used in
investing activities (196,980) -
----------- ----------
Cash Flows from Financing
Activities:
Distributions to limited
partners (2,550,006) (2,550,006)
----------- -----------
Net cash used in
financing activities (2,550,006) (2,550,006)
----------- -----------
Net Decrease in Cash and Cash
Equivalents (235,288) (9,891)
Cash and Cash Equivalents at Beginning
of Period 1,103,568 1,135,995
----------- -----------
Cash and Cash Equivalents at End of
Period $ 868,280 $ 1,126,104
=========== ===========
Supplemental Schedule of Non-Cash
Financing Activities:
Distributions declared and unpaid
at end of period $ 850,002 $ 850,002
=========== ===========
See accompanying notes to condensed financial statements.
4
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 1997 and 1996
1. Basis of Presentation:
The accompanying unaudited condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and note disclosures required by
generally accepted accounting principles. The financial statements
reflect all adjustments, consisting of normal recurring adjustments,
which are, in the opinion of management, necessary to a fair statement
of the results for the interim periods presented. Operating results for
the quarter and nine months ended September 30, 1997, may not be
indicative of the results that may be expected for the year ending
December 31, 1997. Amounts as of December 31, 1996, included in the
financial statements, have been derived from audited financial
statements as of that date.
These unaudited financial statements should be read in conjunction with
the financial statements and notes thereto included in Form 10-K of CNL
Income Fund XIII, Ltd. (the "Partnership") for the year ended December
31, 1996.
2. Land and Buildings on Operating Leases:
As of September 30, 1997, the Partnership had established an allowance
for loss on land in the amount of $21,431 for its property in Orlando,
Florida. The allowance represents the difference between the (i)
property's carrying value for the land at September 30, 1997, and (ii)
the net realizable value of the land based on the net sales proceeds
received in October 1997 from the sale of the property (see Note 6).
3. Net Investment in Direct Financing Leases:
As of September 30, 1997, the Partnership had established an allowance
for loss in the amount of $27,107 for its property in Orlando, Florida.
The allowance represents the difference between the (i) carrying value
of the net investment in the direct financing lease at September 30,
1997, and (ii) the net realizable value of the net investment in the
direct financing lease based on the net sales proceeds received in
October 1997 from the sale of the property (see Note 6).
5
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS -
CONTINUED Quarters and Nine Months Ended September
30, 1997 and 1996
4. Investment in Joint Ventures:
In January 1997, the Partnership acquired an approximate 63 percent
interest in a Burger King property in Akron, Ohio, as tenants-in-common
with an affiliate of the general partners. The Partnership accounts for
its investment in this property using the equity method since the
Partnership shares control with an affiliate, and amounts relating to
its investment are included in investment in joint ventures.
The following presents the combined, condensed financial information
for all of the Partnership's investments in joint ventures at:
September 30, December 31,
1997 1996
Land and buildings on
operating leases,
less accumulated
depreciation $2,318,961 $1,482,503
Net investment in direct
financing leases 365,319 367,661
Cash 24,390 21,173
Receivables 1,542 6,412
Prepaid expenses 278 255
Accrued rental income 92,732 51,745
Liabilities 26,380 28,121
Partners' capital 2,776,842 1,901,628
Revenues 260,664 216,960
Net income 210,555 145,851
The Partnership recognized income totalling $109,720 and $77,231 for
the nine months ended September 30, 1997 and 1996, respectively, from
these joint ventures, $39,217 and $24,706 of which was earned during
the quarters ended September 30, 1997 and 1996, respectively.
6
<PAGE>
CNL INCOME FUND XIII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
5. Commitment:
In February 1997, the Partnership entered into a purchase and sale
agreement with a third party to sell the Denny's property in Orlando,
Florida. The sale of the property occurred in October 1997 (see Note
6).
6. Subsequent Event:
In October 1997, the Partnership sold its property in Orlando, Florida,
to a third party for $953,371 and received net sales proceeds of
$932,849, resulting in a loss of $48,538 for financial reporting
purposes. The Partnership intends to reinvest the net sales proceeds in
a replacement property.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CNL Income Fund XIII, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on September 25, 1992, to acquire for cash,
either directly or through joint venture arrangements, both newly constructed
and existing restaurants, as well as properties 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 triple-net leases, with the lessees generally responsible for all repairs
and maintenance, property taxes, insurance and utilities. As of September 30,
1997, the Partnership owned 47 Properties, including two Properties owned by
joint ventures in which the Partnership is a co-venturer and two Properties
owned with affiliates as tenants-in-common.
Liquidity and Capital Resources
The Partnership's primary source of capital for the nine months ended
September 30, 1997 and 1996, was cash from operations (which includes cash
received from tenants, distributions from joint ventures, and interest and other
income received, less cash paid for expenses). Cash from operations was
$2,511,698 and $2,540,115 for the nine months ended September 30, 1997 and 1996,
respectively. The decrease in cash from operations for the nine months ended
September 30, 1997, as compared to the nine months ended September 30, 1996, is
primarily a result of changes in income and expenses as discussed in "Results of
Operations" below and changes in the Partnership's working capital.
In January 1997, the Partnership reinvested the net sales proceeds it
received from the sale, in November 1996, of the Property in Richmond, Virginia,
in a Burger King Property located in Akron, Ohio, with an affiliate of the
general partners as tenants-in-common. In connection therewith, the Partnership
and the affiliate entered into an agreement whereby each co-venturer will share
in the profits and losses of the Property in proportion to its applicable
percentage interest. As of September 30, 1997, the Partnership owned an
approximate 63 percent interest in this Property.
In February 1997, the Partnership entered into a purchase and sale
agreement with a third party to sell the Denny's Property in Orlando, Florida.
In connection therewith, the Partnership advanced $196,980 which were to be
reimbursed upon the sale of the Property. In October 1997, the Partnership sold
this Property for $953,371 and received net sales proceeds of $932,849,
resulting in a loss of $48,538 for financial reporting purposes. In connection
with the sale, the Partnership recovered $127,843 of the amounts advanced. At
September 30, 1997, the Partnership wrote-off the unrecoverable balance of
$69,137 relating to these advances. The Partnership intends to reinvest the net
sales proceeds in a replacement Property or use the funds for other Partnership
purposes.
8
<PAGE>
Liquidity and Capital Resources - Continued
Currently, cash reserves and rental income from the Part- nership's
Properties are 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 partners. At September 30,
1997, the Partnership had $868,280 invested in such short-term investments, as
compared to $1,103,568 at December 31, 1996. The decrease in cash and cash
equivalents during the nine months ended September 30, 1997, is primarily the
result of the Partnership advancing $196,980 in connection with the sale
agreement for the Denny's Property in Orlando, Florida, as described above. The
funds remaining at September 30, 1997, after the 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,
increased to $962,164 at September 30, 1997, from $927,133 at December 31, 1996,
primarily as a result of an increase in rents paid in advance during the nine
months ended September 30, 1997. Liabilities at September 30, 1997, to the
extent they exceed cash and cash equivalents at September 30, 1997, will be paid
from future cash from operations.
Based on current and future anticipated cash from operations, the
Partnership declared distributions to the limited partners of $2,550,006 for
each of the nine months ended September 30, 1997 and 1996 ($850,002 for each of
the quarters ended September 30, 1997 and 1996). This represents distributions
of $0.64 per unit for each applicable nine months ($0.21 per unit for each
applicable quarter). No distributions were made to the general partners for the
quarters and nine months ended September 30, 1997 and 1996. No amounts
distributed or to be distributed to the limited partners for the nine months
ended September 30, 1997 and 1996, are required to be or have been treated by
the Partnership as a return of capital for purposes of calculating the limited
partners' return on their adjusted capital contribution. 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 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.
9
<PAGE>
Results of Operations
During the nine months ended September 30, 1996, the Partnership owned
and leased 44 wholly owned Properties (including one Property in Richmond,
Virginia, which was sold in November 1996) and during the nine months ended
September 30, 1997, the Partnership owned and leased 43 wholly owned Properties
to operators of fast-food and family-style restaurant chains. In connection
therewith, during the nine months ended September 30, 1997 and 1996, the
Partnership earned $2,512,212 and $2,540,006, respectively, in rental income
from operating leases and earned income from direct financing leases for these
Properties, $824,586 and $884,731 of which was earned during the quarters ended
September 30, 1997 and 1996, respectively. The decrease during the quarter and
nine months ended September 30, 1997, as compared to the quarter and nine months
ended September 30, 1996, was partially attributable to a decrease of
approximately $30,400 and $80,700, during the quarter and nine months ended
September 30, 1997, respectively, as a result of the fact that in February 1997,
the Partnership discontinued charging rent to the former tenant of the Denny's
Property in Orlando, Florida, as a result of the former tenant vacating the
Property. The decrease in rental and earned income during the nine months ended
September 30, 1997, as compared to the nine months ended September 30, 1996, was
partially offset by the fact that the Partnership established an allowance for
doubtful accounts of approximately $14,500 during the nine months ended
September 30, 1997, as compared to approximately $54,300 during the nine months
ended September 30, 1996, for past due rental amounts relating to the Denny's
Property in Orlando, Florida, due to financial difficulties the tenant was
experiencing. The decrease was also offset by the fact that the Partnership
established an allowance for doubtful accounts of approximately $3,000 during
the nine months ended September 30, 1997, as compared to approximately $61,600
during the nine months ended September 30, 1996, for accrued rental income
amounts previously recorded (due to the fact that future scheduled rent
increases are recognized on a straight-line basis over the term of the lease in
accordance with generally accepted accounting principles). The Partnership sold
this Property in October 1997, as described above in "Liquidity and Capital
Resources".
In addition, the decrease in rental and earned income for the quarter
and nine months ended September 30, 1997, as compared to the quarter and nine
months ended September 30, 1996, is partially attributable to a decrease of
approximately $13,000 and $39,000, respectively, due to the fact that the
Partnership sold its Property in Richmond, Virginia, in November 1996. The
Partnership reinvested the net sales proceeds in a Property located in Akron,
Ohio, as tenants-in-common, with an affiliate of the general partners, as
described above in "Liquidity and Capital Resources".
10
<PAGE>
Results of Operations - Continued
During the nine months ended September 30, 1997 and 1996, the
Partnership also earned $195,164 and $182,899, respectively, in contingent
rental income, $89,378 and $68,321 of which was earned during the quarters ended
September 30, 1997 and 1996, respectively. The increase in contingent rental
income during the quarter and nine months ended September 30, 1997, is primarily
attributable to an increase in gross sales relating to certain restaurant
Properties required to pay contingent rent.
For the nine months ended September 30, 1997 and 1996, the Partnership
owned and leased two Properties indirectly through joint venture arrangements
and one Property with an affiliate as tenants-in-common. In addition, in January
1997, the Partnership entered into an agreement with an affiliate of the general
partners to hold a Property located in Akron, Ohio, as tenants-in-common, as
described above in "Liquidity and Capital Resources." In connection therewith,
during the nine months ended September 30, 1997 and 1996, the Partnership earned
$109,720 and $77,231, respectively, attributable to net income earned by these
joint ventures, $39,217 and $24,706 of which was earned during the quarters
ended September 30, 1997 and 1996, respectively. The increase in net income
earned by joint ventures during the quarter and nine months ended September 30,
1997, is primarily due to the fact that in January 1997, the Partnership
reinvested the net sales proceeds it received from the sale, in November 1996,
of the Property in Richmond, Virginia, in a Burger King Property located in
Akron, Ohio, with an affiliate of the general partners as tenants-in-common.
Operating expenses, including depreciation and amortization expense,
were $596,044 and $529,631 for the nine months ended September 30, 1997 and
1996, respectively, of which $270,186 and $159,720 were incurred for the
quarters ended September 30, 1997 and 1996, respectively. The increase in
operating expenses during the quarter and nine months ended September 30, 1997,
is partially attributable to the fact that during the quarter and nine months
ended September 30, 1997, the Partnership recorded bad debt expense of
approximately $54,800, as compared to approximately $35,500 during the nine
months ended September 30, 1996, for rental and other amounts, relating to the
Denny's Property in Orlando, Florida, due to financial difficulties the tenant
was experiencing. This Property was sold in October 1997, and in anticipation of
the October sale, the Partnership wrote-off as bad debt expense, approximately
$69,100 of the advances it made during the nine months ended September 30, 1997,
as described above in "Liquidity and Capital Resources". The increase in
operating expenses during the quarter and nine months ended September 30, 1997,
is partially offset by the fact that the Partnership recorded real estate tax
expense relating to this Property of $2,124 and $10,680, during the quarter and
nine months ended September 30, 1996, respectively. No such real estate tax
expense was recorded by the Partnership during the quarter and nine months ended
September 30, 1997, due to the fact that these amounts were paid by the
purchaser of the Property when the Property was sold in October 1997.
11
<PAGE>
Results of Operations - Continued
The increase in operating expenses during the quarter and nine months
ended September 30, 1997, was partially offset by a decrease in accounting and
administrative expenses associated with operating the Partnership and its
Properties.
In addition, in June 1997, the Partnership established an allowance for
loss on land and net investment in the direct financing lease in the amount of
$41,202, for financial reporting purposes for the Property in Orlando, Florida.
During the quarter ended September 30, 1997, the Partnership established an
additional allowance for loss on land and net investment in the direct financing
lease in the amount of $7,336, for financial reporting purposes for this
Property. The total allowance for the Property represents the difference between
(i) the sum of the Property's land carrying value and the carrying value of the
net investment in the direct financing lease at September 30, 1997 and (ii) the
net realizable value of $932,849 received as net sales proceeds in conjunction
with the sale of the Property in October 1997. The Partnership sold this
Property in October 1997, as described above in "Liquidity and Capital
Resources" resulting in a total loss of $48,538 for financial reporting
purposes.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings. Inapplicable.
Item 2. Changes in Securities. Inapplicable.
Item 3. Defaults upon Senior Securities. Inapplicable.
Item 4. Submission of Matters to a Vote of Security Holders.
Inapplicable.
Item 5. Other Information. Inapplicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits - None.
(b) No reports on Form 8-K were filed during the quarter
ended September 30, 1997.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
DATED this 12th day of November, 1997.
CNL INCOME FUND XIII, 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 XIII, Ltd. at September 30, 1997, and its statement of
income for the nine months then ended and is qualified in its entirety by
reference to the Form 10Q of CNL Income Fund XIII, ltd. for the nine months
ended September 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 868,280
<SECURITIES> 0
<RECEIVABLES> 384,765
<ALLOWANCES> 230,787
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 24,897,094
<DEPRECIATION> 1,599,462
<TOTAL-ASSETS> 35,641,797
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 34,679,643
<TOTAL-LIABILITY-AND-EQUITY> 35,641,797
<SALES> 0
<TOTAL-REVENUES> 2,746,574
<CGS> 0
<TOTAL-COSTS> 472,182
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 123,862
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,211,712
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,211,712
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,211,712
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund XIII, Ltd. has an
unclassified balance sheet; therefore, no values are shown above for current
assets and current liabilities.
</FN>
</TABLE>
