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 June 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
0-23974
CNL Income Fund XIV, Ltd.
(Exact name of registrant as specified in its charter)
Florida 59-3143096
(State or other jurisdiction (I.R.S. Employer
of incorporation or organiza- Identification No.)
tion)
400 E. South Street
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 XIV, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
June 30, December 31,
ASSETS 1998 1997
----------- ------------
Land and buildings on operating
leases, less accumulated
depreciation of $1,464,303
and $1,295,713 $24,445,092 $25,217,725
Net investment in direct
financing leases 8,516,276 9,041,485
Investment in joint ventures 3,569,058 3,271,739
Cash and cash equivalents 2,021,634 1,285,777
Restricted cash 516,707 318,592
Receivables, less allowance for
doubtful accounts of $27,679
in 1998 3,990 19,912
Prepaid expenses 16,631 7,915
Organization costs, less
accumulated amortization of
$9,599 and $8,599 401 1,401
Accrued rental income, less
allowance for doubtful accounts
of $9,458 and $6,295 1,730,571 1,820,078
----------- -----------
$40,820,360 $40,984,624
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 3,608 $ 10,258
Accrued and escrowed real
estate taxes payable 6,847 19,570
Distributions payable 928,130 928,130
Due to related parties 4,356 7,853
Rents paid in advance 109,501 29,656
----------- -----------
Total liabilities 1,052,442 995,467
Commitment (Note 6)
Partners' capital 39,767,918 39,989,157
----------- -----------
$40,820,360 $40,984,624
=========== ===========
See accompanying notes to condensed financial statements.
1
<PAGE>
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
---------- ---------- ---------- -------
<S> <C>
Revenues:
Rental income from
operating leases $ 444,632 $ 723,510 $1,161,909 $1,447,278
Earned income from direct
financing leases 218,056 254,713 460,275 510,005
Interest and other income 25,483 16,560 46,462 30,602
---------- ---------- ---------- ----------
688,171 994,783 1,668,646 1,987,885
---------- ---------- ---------- ----------
Expenses:
General operating and
administrative 42,628 40,191 78,931 76,406
Professional services 10,695 5,796 16,877 11,584
Bad debt expense - - - 14,000
Management fees to
related parties 9,280 9,736 18,786 19,290
Real estate taxes 1,276 1,638 4,726 5,808
State and other taxes 40 47 21,036 21,874
Depreciation and
amortization 85,053 85,033 170,106 170,055
---------- ---------- ---------- ----------
148,972 142,441 310,462 319,017
---------- ---------- ---------- ----------
Income Before Equity in
Earnings of Joint
Ventures and Gain on
Sale of Land 539,199 852,342 1,358,184 1,668,868
Equity in Earnings of
Joint Ventures 82,126 77,577 164,631 152,823
Gain on Sale of Land and
Building 41,408 - 112,206 -
---------- ---------- ---------- ---------
Net Income $ 662,733 $ 929,919 $1,635,021 $1,821,691
========== ========== ========== ==========
Allocation of Net Income:
General partners $ 6,214 $ 9,299 $ 15,228 $ 18,217
Limited partners 656,519 920,620 1,619,793 1,803,474
---------- ---------- ---------- ----------
$ 662,733 $ 929,919 $1,635,021 $1,821,691
========== ========== ========== ==========
Net Income Per Limited
Partner Unit $ 0.15 $ 0.20 $ 0.36 $ 0.40
========== ========== ========== ==========
Weighted Average Number
of Limited Partner
Units Outstanding 4,500,000 4,500,000 4,500,000 4,500,000
========== ========== ========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Six Months Ended Year Ended
June 30, December 31,
1998 1997
---------------- --------
General partners:
Beginning balance $ 146,640 $ 109,981
Net income 15,228 36,659
----------- -----------
161,868 146,640
----------- -----------
Limited partners:
Beginning balance 39,842,517 39,925,756
Net income 1,619,793 3,629,281
Distributions ($0.41 and
$0.83 per limited partner
unit, respectively) (1,856,260) (3,712,520)
----------- -----------
39,606,050 39,842,517
----------- -----------
Total partners' capital $39,767,918 $39,989,157
=========== ===========
See accompanying notes to condensed financial statements.
3
<PAGE>
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
1998 1997
---------- ---------
Increase (Decrease) in Cash and
Cash Equivalents:
Net Cash Provided by Operating
Activities $1,845,728 $1,807,883
---------- ----------
Cash Flows from Investing
Activities:
Proceeds from sale of land
and building 1,250,140 -
Investment in joint venture (310,097) -
Return of capital from joint
venture - 51,950
Increase in restricted cash (193,654) -
---------- ---------
Net cash provided by
investing activities 746,389 51,950
---------- ----------
Cash Flows from Financing
Activities:
Distributions to limited
partners (1,856,260) (1,856,260)
---------- ----------
Net cash used in
financing activities (1,856,260) (1,856,260)
---------- ----------
Net Increase in Cash and Cash
Equivalents 735,857 3,573
Cash and Cash Equivalents at
Beginning of Period 1,285,777 1,462,012
---------- ----------
Cash and Cash Equivalents at
End of Period $2,021,634 $1,465,585
========== ==========
Supplemental Schedule of Non-Cash
Financing Activities:
Distributions declared and
unpaid at end of period $ 928,130 $ 928,130
========== ==========
See accompanying notes to condensed financial statements.
4
<PAGE>
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Six Months Ended June 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 six months ended June 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 XIV, Ltd. (the "Partnership") for the year ended December
31, 1997.
2. Land and Buildings on Operating Leases:
During the six months ended June 30, 1998, the Partnership sold its
properties in Madison, Alabama and Richmond, Virginia, to third
parties, for a total of $1,252,462 and received net sales proceeds of
$1,208,732, resulting in a total gain of $70,798 for financial
reporting purposes. These properties were originally acquired by the
Partnership in 1993 and 1994 and had costs totalling approximately
$1,041,400, excluding acquisition fees and miscellaneous acquisition
expenses; therefore, the Partnership sold these properties for a total
of approximately $167,300 in excess of their original purchase prices.
In addition, in April 1998, the Partnership reached an agreement to
accept $360,000 for the property in Riviera Beach, Florida, which was
taken through a right of way taking in December 1997. The Partnership
had received preliminary sales proceeds of $318,592 as of December 31,
1997. Upon agreement and receipt of the final sales price of $360,000,
the Partnership recognized a gain of $41,408 for financial reporting
purposes. This property was originally acquired by the Partnership in
1994 and had a cost of approximately $276,400, excluding acquisition
fees and miscellaneous acquisition expenses; therefore, the Partnership
sold this property for a total of approximately $83,600 in excess of
its original purchase price. The Partnership intends to reinvest the
net sales proceeds from the sale of this property in an additional
property.
5
<PAGE>
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Six Months Ended June 30, 1998 and 1997
3. Net Investment in Direct Financing Leases:
In January 1998, the Partnership sold its property in Madison, Alabama,
for which the building portion had been classified as a direct
financing lease. In connection therewith, the gross investment (minimum
lease payments receivable and the estimated residual value) and
unearned income relating to the building were removed from the accounts
(see Note 2).
4. Investment in Joint Ventures:
In April 1998, the Partnership entered into a joint venture
arrangement, Melbourne Joint Venture, with an affiliate of the
Partnership which has the same general partners, to construct and hold
one restaurant property, at a total cost of $1,052,552. As of June 30,
1998, the Partnership and its co-venture partner had each contributed
$236,535 to purchase land relating to the joint venture. The
Partnership agreed to contribute approximately $289,700 in additional
construction costs to the joint venture. The Partnership expects to
have a 50 percent interest 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 an affiliate.
As of June 30, 1998, Attalla Joint Venture, Salem Joint Venture,
Kingston Joint Venture and Melbourne Joint Venture each owned and
leased one property, and Wood-Ridge Real Estate Joint Venture owned and
leased six properties, to operators of fast-food or family-style
restaurants. The following presents the combined, condensed financial
information for the joint ventures at:
June 30, December 31,
1998 1997
Land and buildings on
operating leases,
less accumulated
depreciation $6,398,783 $6,008,240
Net investment in direct
financing lease 362,702 364,479
Cash 7,037 13,842
Receivables 4,760 2,571
Accrued rental income 195,534 150,621
Other assets 1,555 1,257
Liabilities 22,587 231,061
Partners' capital 6,947,784 6,309,949
Revenues 387,801 712,004
Net income 319,053 588,835
6
<PAGE>
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Six Months Ended June 30, 1998 and 1997
4. Investment in Joint Ventures - Continued:
The Partnership recognized income totalling $164,631 and $152,823 for
the six months ended June 30, 1998 and 1997, respectively, from these
joint ventures, $82,126 and $77,577 of which was earned for the
quarters ended June 30, 1998 and 1997, respectively.
5. Restricted Cash:
As of June 30, 1998, $512,246 in net sales proceeds from the sale of
the Property in Richmond, Virginia, plus accrued interest of $4,461,
were being held in an interest-bearing escrow account pending the
release of funds by an escrow agent to acquire an additional property.
6. Subsequent Event:
In July 1998, the Partnership sold its property in Richmond, Virginia,
to a third party for $415,000 and received net sales proceeds of
$397,970. Due to the fact that at June 30, 1998, the Partnership wrote
off $12,829 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 generally accepted accounting
principles), no gain or loss will be recorded for financial reporting
purposes relating to the sale.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CNL Income Fund XIV, 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 lessee responsible for all repairs and
maintenance, property taxes, insurance and utilities. As of June 30, 1998, the
Partnership owned 56 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 six months ended
June 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 $1,845,728 and
$1,807,883 for the six months ended June 30, 1998 and 1997, respectively. The
increase in cash from operations for the six months ended June 30, 1998, as
compared to the six months ended June 30, 1997, is primarily a result of changes
in the Partnership's working capital.
Other sources and uses of capital included the following during the six
months ended June 30, 1998.
In January 1998, the Partnership sold its Property in Madison, Alabama,
to a third party for $740,000 and received net sales proceeds of $696,486. Due
to the fact that during 1997 the Partnership wrote off $13,314 in accrued rental
income (non-cash accounting adjustments relating to the straight-lining of
future scheduled rent increases over the lease term in accordance with generally
accepted accounting principles), no gain or loss was incurred for financial
reporting purposes in January 1998 relating to this sale. This Property was
originally acquired by the Partnership in December 1993 and had a cost of
approximately $659,000, excluding acquisition fees and miscellaneous acquisition
expenses; therefore, the Partnership sold the Property for approximately $37,500
in excess of its original purchase price. In April 1998, the Partnership
reinvested a portion of the net sales proceeds from the sale of the Property in
Madison, Alabama in a joint venture arrangement as described below. The
Partnership intends to use the remaining proceeds to invest in an additional
Property or for other Partnership purposes. The Partnership will distribute
amounts sufficient to enable the limited partners to pay federal and state
income taxes, if any (at a level reasonably assumed by the general partners),
resulting from the sale.
8
<PAGE>
Liquidity and Capital Resources - Continued
In addition, in January 1998, the Partnership sold one of its
Properties in Richmond, Virginia for $512,462 and received net sales proceeds of
$512,246, resulting in a gain of $70,798 for financial reporting purposes. This
Property was originally acquired by the Partnership in March 1994 and had a cost
of approximately $382,400, excluding acquisition fees and miscellaneous
acquisition expenses; therefore, the Partnership sold the Property for
approximately $129,800 in excess of its original purchase price. As of June 30,
1998, the net sales proceeds of $512,246 plus accrued interest of $4,461, were
being held in an interest-bearing escrow account pending the release of funds by
the escrow agent to acquire an additional Property. The Partnership intends to
reinvest the net sales proceeds from the sale of the Property in Richmond,
Virginia in an additional Property. The general partners believe that the
transaction, or a portion thereof, relating to the sale of the Property in
Richmond, Virginia, and the reinvestment of the net sales proceeds will qualify
as a like-kind exchange transaction for federal income tax purposes. However,
the Partnership will distribute amounts sufficient to enable the limited
partners to pay federal and state income taxes, if any (at a level reasonably
assumed by the general partners), resulting from the sale.
In addition, in April 1998, the Partnership reached an agreement to
accept $360,000 for the Property in Riviera Beach, Florida, which was taken
through a right of way taking in December 1997. The Partnership had received
preliminary sales proceeds of $318,592 as of December 31, 1997. Upon agreement
and receipt of the final sales price of $360,000, the Partnership recognized a
gain of $41,408 for financial reporting purposes. This Property was originally
acquired by the Partnership in 1994 and had a cost of approximately $276,400,
excluding acquisition fees and miscellaneous acquisition expenses; therefore,
the Partnership sold this Property for a total of approximately $83,600 in
excess of its original purchase price. The Partnership intends to reinvest the
net sales proceeds from the sale of this Property in an additional Property.
In April 1998, the Partnership reinvested a portion of the net sales
proceeds from the sale of the Property in Madison, Alabama to Melbourne Joint
Venture, with an affiliate of the Partnership which has the same general
partners, to construct and hold one restaurant Property, at a total cost of
$1,052,552. As of June 30, 1998, the Partnership and its co-venture partner had
each contributed $236,535 to purchase land relating to the joint venture. The
Partnership agreed to contribute approximately $289,700 in additional
construction costs to the joint venture. The Partnership expects to have a 50
percent interest in the profits and losses of the joint venture.
9
<PAGE>
Liquidity and Capital Resources - Continued
In addition, in September 1997, the Partnership entered into a joint
venture arrangement, CNL Kingston Joint Venture, with an affiliate of the
Partnership which has the same general partners, to construct and hold one
restaurant Property. Construction of the restaurant was completed in January
1998. As of June 30, 1998, the Partnership had contributed $206,848 to the joint
venture and owned a 39.94% interest in the profits and losses of the joint
venture.
Currently, cash reserves and rental income from the Partnership's
Properties is invested in money market accounts or other short-term, highly
liquid investments pending the use of such funds to pay Partnership expenses or
to make distributions to partners. At June 30, 1998, the Partnership had
$2,021,634 invested in such short-term investments, as compared to $1,285,777 at
December 31, 1997. The increase in cash is primarily attributable to the receipt
of net sales proceeds relating to the sale of the Property in Madison, Alabama,
net of the amount reinvested in Melbourne Joint Venture, as described above. In
addition, the increase in cash is partially attributable to the release of funds
held in escrow at December 31, 1997 relating to the right of way taking of the
Property in Riviera Beach, Florida, as described above. The funds remaining at
June 30, 1998, after payment of distributions and other liabilities, will be
used to meet the Partnership's working capital and other needs and to acquire
additional Properties.
Total liabilities of the Partnership, including distributions payable,
increased to $1,052,442 at June 30, 1998, from $995,467 at December 31, 1997,
primarily as the result of an increase in rents paid in advance at June 30,
1998, as compared to December 31, 1997. The general partners believe that the
Partnership has sufficient cash on hand to meet its current working capital
needs.
In July 1998, the Partnership sold its Property in Richmond, Virginia
to a third party for $415,000 and received net sales proceeds of $397,970. Due
to the fact that at June 30, 1998, the Partnership wrote off $12,829 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
generally accepted accounting principles), no gain or loss will be recorded for
financial reporting purposes relating to the sale. The Partnership intends to
reinvest the net sales proceeds in an additional Property. The general partners
believe that the transaction or a portion thereof, relating to the sale of this
Property and the reinvestment of the proceeds will be structured to qualify as a
like-kind exchange transaction for federal income tax purposes.
Based on current and anticipated future cash from operations, the
Partnership declared distributions to the limited partners of $1,856,260 for
each of the six months ended June 30, 1998 and 1997 ($928,130 for each of the
quarters ended June 30, 1998 and 1997).
10
<PAGE>
Liquidity and Capital Resources - Continued
This represents distributions for each applicable six months of $0.41 per unit
($0.21 per unit for each applicable quarter). No distributions were made to the
general partners for the quarters and six months ended June 30, 1998 and 1997.
No amounts distributed to the limited partners for the six months ended June 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 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.
Results of Operations
During the six months ended June 30, 1997, the Partnership owned and
leased 50 wholly owned Properties (including one Property in Riviera Beach,
Florida, sold through a right of way taking in December 1997) and during the six
months ended June 30, 1998, the Partnership owned and leased 49 wholly owned
Properties (including two Properties in Madison, Alabama and Richmond, Virginia,
which were sold in January 1998) to operators of fast-food and family-style
restaurant chains. In connection therewith, during the six months ended June 30,
1998 and 1997, the Partnership earned $1,622,184 and $1,957,283, respectively,
in rental income from operating leases and earned income from direct financing
leases from these Properties, $662,688 and $978,223 of which was earned during
the quarters ended June 30, 1998 and 1997, respectively. The decrease in rental
and earned income during the quarter and six months ended June 30, 1998, as
compared to the quarter and six months ended June 30, 1997, is primarily
attributable to the fact that in June 1998, the tenant of the Properties in
Albemarle and Shelby, North Carolina; Las Vegas, Nevada and Stockbridge, Georgia
filed bankruptcy and rejected the leases relating to these Properties. As a
result, the Partnership wrote off approximately $263,000 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 generally
accepted accounting principles). The Partnership also established an allowance
for doubtful accounts during the quarter and six months ended June 30, 1998, of
approximately $27,700 for rental and earned
11
<PAGE>
Results of Operations - Continued
income amounts due from these tenants, due to the fact that collection of such
amounts is questionable. The Partnership is currently seeking either replacement
tenants or purchasers for these Properties.
In addition, the decrease in rental and earned income during the
quarter and six months ended June 30, 1998, is partially attributable to a
decrease in rental and earned income as a result of the 1998 sales of the
Properties in Madison, Alabama and Richmond, Virginia and the 1997 right of way
taking of the Property in Riviera Beach, Florida.
In addition, during the six months ended June 30, 1997, the Partnership
owned and leased eight Properties and during the six months ended June 30, 1998,
the Partnership owned and leased nine Properties indirectly through joint
venture arrangements. In connection therewith, during the six months ended June
30, 1998 and 1997, the Partnership earned $164,631 and $152,823, respectively,
attributable to net income earned by these joint ventures, $82,126 and $77,577
of which was earned during the quarters ended June 30, 1998 and 1997,
respectively. The increase in net income earned by joint ventures during the
quarter and six months ended June 30, 1998, as compared to the quarter and six
months ended June 30, 1997, is primarily attributable to the Partnership
investing in Kingston Joint Venture in September 1997.
Operating expenses, including depreciation and amortization expense,
were $310,462 and $319,017 for the six months ended June 30, 1998 and 1997,
respectively, of which $148,972 and $142,441 were incurred for the quarters
ended June 30, 1998 and 1997, respectively. The decrease in operating expenses
during the six months ended June 30, 1998, as compared to the six months ended
June 30, 1997, is primarily attributable to the fact that during 1997 the
Partnership recorded bad debt expense of $14,000 relating to the Property in
Akron, Ohio due to the tenant ceasing restaurant operations and vacating the
Property. This Property was re-leased to a new tenant in September 1997 with
rental income commencing in December 1997. No such expense was recorded during
the six months ended June 30, 1998.
As a result of the sale of the Property in Richmond, Virginia during
the six months ended June 30, 1998, and the receipt of proceeds from the right
of way taking of the Property in Riviera Beach, Florida, during the quarter and
six months ended June 30, 1998, as described above in "Liquidity and Capital
Resources," the Partnership recognized gains of $41,408 and $112,206 for
financial reporting purposes during the quarter and six months ended June 30,
1998, respectively. No Properties were sold during the quarter and six months
ended June 30, 1997.
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 June 30, 1998.
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 4th day of August, 1998.
CNL INCOME FUND XIV, 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 XIV, Ltd. at June 30, 1998, and its statement of income
for the six months then ended and is qualified in its entirety by reference to
the Form 10Q of CNL Income Fund XIV, Ltd. for the six months ended June 30,
1998.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,538,341<F2>
<SECURITIES> 0
<RECEIVABLES> 31,669
<ALLOWANCES> 27,679
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 25,909,395
<DEPRECIATION> 1,464,303
<TOTAL-ASSETS> 40,820,360
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 39,767,918
<TOTAL-LIABILITY-AND-EQUITY> 40,820,360
<SALES> 0
<TOTAL-REVENUES> 1,668,646
<CGS> 0
<TOTAL-COSTS> 310,462
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,635,021
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,635,021
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,635,021
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F2>Cash balance includes $516,707 in restricted cash.
<F1>Due to the nature of its industry, CNL Income Fund XIV, Ltd. has an
unclassified balance sheet; therefore, no values are shown above for current
assets and current liabilities.
</FN>
</TABLE>
