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
0-26216
----------------------------
CNL Income Fund XV, Ltd.
-------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-3198888
(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 5-6
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 7-11
Part II
Other Information 12
<PAGE>
CNL INCOME FUND XV, 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 $1,004,141
and $801,601 $23,531,327 $22,145,138
Net investment in direct financing leases 7,609,576 9,264,307
Investment in joint ventures 2,743,255 2,561,816
Cash and cash equivalents 1,222,529 1,614,708
Receivables, less allowance for doubtful
accounts of $7,434 in 1998 -- 26,888
Prepaid expenses 20,315 7,633
Organization costs, less accumulated
amortization of $9,049 and $7,548 951 2,452
Accrued rental income 1,474,597 1,422,781
----------------- -----------------
$36,602,550 $37,045,723
================= =================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 1,078 $ 6,991
Accrued and escrowed real estate
taxes payable 31,820 6,158
Distributions payable 800,000 800,000
Due to related parties 5,049 4,311
Rents paid in advance and deposits -- 4,860
----------------- -----------------
Total liabilities 837,947 822,320
Partners' capital 35,764,603 36,223,403
----------------- -----------------
$36,602,550 $37,045,723
================= =================
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
CNL INCOME FUND XV, 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 $ 613,294 $ 631,816 $1,849,278 $1,894,349
Adjustments to accrued rental income -- -- (250,631 ) --
Earned income from direct financing
leases 219,480 264,571 726,544 795,619
Interest and other income 12,045 15,534 51,682 45,595
------------ ------------- ------------ -----------
844,819 911,921 2,376,873 2,735,563
------------ ------------- ------------ -----------
Expenses:
General operating and
administrative 40,231 31,490 107,194 101,281
Professional services 5,358 5,077 18,867 15,189
Management fees to related parties 8,180 8,847 25,475 26,312
Real estate taxes 28,562 -- 31,208 --
State and other taxes -- -- 27,763 26,009
Depreciation and amortization 80,468 62,099 204,668 186,248
------------ ------------- ------------ -----------
162,799 107,513 415,175 355,039
------------ ------------- ------------ -----------
Income Before Equity in Earnings
of Joint Ventures 682,020 804,408 1,961,698 2,380,524
Equity in Earnings of Joint Ventures 59,208 60,424 179,502 177,735
------------ ------------- ------------ -----------
Net Income $ 741,228 $ 864,832 $2,141,200 $2,558,259
============ ============= ============ ===========
Allocation of Net Income:
General partners $ 7,412 $ 8,649 $ 21,412 $ 25,583
Limited partners 733,816 856,183 2,119,788 2,532,676
------------ ------------- ------------ -----------
$ 741,228 $ 864,832 $2,141,200 $2,558,259
============ ============= ============ ===========
Net Income Per Limited Partner Unit $ 0.18 $ 0.21 $ 0.53 $ 0.63
============ ============= ============ ===========
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 financial statements.
2
<PAGE>
CNL INCOME FUND XV, 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 $ 117,411 $ 83,062
Net income 21,412 34,349
---------------- ---------------
138,823 117,411
---------------- ---------------
Limited partners:
Beginning balance 36,105,992 35,905,436
Net income 2,119,788 3,400,556
Distributions ($0.65 and
$0.80 per limited partner
unit, respectively) (2,600,000 ) (3,200,000 )
---------------- ---------------
35,625,780 36,105,992
---------------- ---------------
Total partners' capital $35,764,603 $36,223,403
================ ===============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
CNL INCOME FUND XV, 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 $ 2,415,807 $ 2,550,613
---------------- ---------------
Cash Flows from Investing Activities:
Investment in joint ventures (207,986 ) --
Return of capital from joint venture -- 51,950
---------------- ---------------
Net cash provided by (used in)
investing activities (207,986 ) 51,950
---------------- ---------------
Cash Flows from Financing Activities:
Distributions to limited partners (2,600,000 ) (2,480,000 )
---------------- ---------------
Net cash used in financing
activities (2,600,000 ) (2,480,000 )
---------------- ---------------
Net Increase (Decrease) in Cash and Cash (392,179 ) 122,563
Equivalents
Cash and Cash Equivalents at Beginning
of Period 1,614,708 1,536,163
---------------- ---------------
Cash and Cash Equivalents at End of
Period $ 1,222,529 $ 1,658,726
================ ===============
Supplemental Schedule of Non-Cash Investing
and Financing Activities
Net investment in direct financing
lease reclassified to land and
building on operating leases as
a result of lease termination $ 1,588,729 $ --
================ ===============
Distributions declared and unpaid at end of
period $ 800,000 $ 800,000
================ ===============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
CNL INCOME FUND XV, 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 XV, 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:
During the nine months ended September 30, 1998, four of the
Partnership's leases with Long John Silver's, Inc. were rejected in
connection with the tenant filing for bankruptcy. As a result, the
Partnership reclassified these assets from net investment in direct
financing leases to land and buildings on operating leases. In
accordance with the Statement of Financial Accounting Standards #13,
"Accounting for Leases," the Partnership recorded the reclassified
assets at the lower of original cost, present fair value, or present
carrying amount. No losses on the termination of direct financing
leases were recorded for financial reporting purposes.
3. Investment in Joint Ventures:
In June 1998, the Partnership acquired a 14.93% interest in a property
in Fort Myers, Florida, 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 investments are included
in investment in joint ventures.
5
<PAGE>
CNL INCOME FUND XV, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1998 and 1997
3. Investment in Joint Ventures - Continued:
Wood-Ridge Real Estate Joint Venture and the Partnership and affiliates
as tenants-in-common in two separate tenancy-in-common arrangements,
own and lease six properties and one property, respectively, to
operators of national fast-food or family-style restaurants. The
following presents the combined, condensed financial information for
all of the Partnership's investments in joint ventures at:
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------ -------------------
<S> <C>
Land and buildings on operating
leases, less accumulated
depreciation $6,094,108 $5,563,722
Net investment in direct financing
lease 829,116 --
Cash 8,207 10,890
Receivables -- 5,923
Accrued rental income 117,515 74,001
Other assets 955 1,078
Liabilities 24,817 18,195
Partners' capital 7,025,084 5,637,419
Revenues 534,294 650,354
Net income 425,472 522,611
</TABLE>
The Partnership recognized income totaling $179,502 and $177,735 for
the nine months ended September 30, 1998 and 1997, respectively, from
these joint ventures, $59,208 and $60,424 of which was earned during
the quarters ended September 30, 1998 and 1997, respectively.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CNL Income Fund XV, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on September 2, 1993, 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 September 30, 1998,
the Partnership owned 50 Properties, including interests in six Properties owned
by a joint venture 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, 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
$2,415,807 and $2,550,613 for the nine months ended September 30, 1998 and 1997,
respectively. The decrease 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.
Other sources and uses of capital included the following during the
nine months ended September 30, 1998.
In June 1998, the Partnership acquired a Property in Fort Myers,
Florida 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, 1998, the Partnership owned a 14.93% interest in the Property.
Currently, cash reserves and rental income from the Partnership'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 the partners. At September 30,
1998, the Partnership had $1,222,529 invested in such short-term investments, as
compared to $1,614,708 at December 31, 1997. The decrease in cash and cash
equivalents for the nine months ended September 30, 1998, is primarily
attributable to the acquisition of a Property as tenants-in-common with an
affiliate of the general partners, as described above. 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.
7
<PAGE>
Liquidity and Capital Resources - Continued
Total liabilities of the Partnership, including distributions payable,
increased to $837,947 at September 30, 1998, from $822,320 at December 31, 1997,
primarily as a result of the Partnership accruing real estate taxes in
connection with certain Long John Silver's Properties, as described below in
"Results of Operations." 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 $2,600,000 and $2,400,000 for the nine
months ended September 30, 1998 and 1997, respectively ($800,000 for each of the
quarters ended September 30, 1998 and 1997). This represents distributions of
$0.65 and $0.60 per unit for the nine months ended September 30, 1998 and 1997,
respectively ($0.20 per unit for each applicable quarter). 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 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 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.
8
<PAGE>
Results of Operations
During each of the nine months ended September 30, 1998 and 1997, the
Partnership owned and leased 42 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
$2,325,191 and $2,689,968, respectively, in rental income from operating leases
(net of adjustments to accrued rental income) and earned income from direct
financing leases from these Properties, $832,774 and $896,387 of which was
earned during the quarters ended September 30, 1998 and 1997, respectively. The
decrease in rental and earned income during the quarter and nine months ended
September 30, 1998, as compared to the quarter and nine months ended September
30, 1997, is primarily attributable to the fact that, in June 1998, the
Partnership stopped receiving rental income from the tenant, Long John Silver's,
Inc., which filed for bankruptcy and rejected the leases relating to four
Properties. As a result, during the nine months ended September 30, 1998, the
Partnership wrote off approximately $250,600 of accrued rental income (non-cash
accounting adjustment relating to the straight-lining of future scheduled rent
increases over the lease term in accordance with generally accepted accounting
principles). The general partners are currently seeking either new tenants or
purchasers for these Properties. The Partnership will not recognize rental and
earned income from these Properties until new tenants for these Properties are
located or until the Properties are sold and the proceeds from such sales are
reinvested in additional Properties.
For the nine months ended September 30, 1997 and 1998, the Partnership
also owned and leased six Properties indirectly through one joint venture
arrangement and one Property as tenants-in-common with affiliates of the general
partners. For the nine months ended September 30, 1998, the Partnership also
owned an additional Property, held as tenants-in-common with an affiliate of the
general partners. In connection therewith, during the nine months ended
September 30, 1998 and 1997, the Partnership earned $179,502 and $177,735,
respectively, attributable to net income earned by these joint ventures, $59,208
and $60,424 of which was earned during the quarters ended September 30, 1998 and
1997, respectively.
Operating expenses, including depreciation and amortization expense,
were $415,175 and $355,039 for the nine months ended September 30, 1998 and
1997, respectively, $162,799 and $107,513 of which were incurred for the
quarters ended September 30, 1998 and 1997, respectively. The increase in
operating expenses 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 the Partnership accrued insurance and
real estate taxes as a result of Long John Silver's, Inc. filing for bankruptcy
and rejecting the leases relating to four Properties, in June 1998. In addition,
the increase in operating expenses during the quarter and nine months ended
September 30, 1998, is partially attributable to an increase in depreciation
expense due to the fact that during the quarter and nine months ended September
30, 1998, the Partnership reclassified these assets from net investment in
direct financing leases to land and buildings on operating leases. The
Partnership will continue to incur certain expenses, such as real estate taxes,
insurance, and maintenance relating to these Properties with rejected leases
until replacement tenants or purchasers are located. The Partnership is
currently seeking either replacement tenants or purchasers for these Properties
with rejected leases.
9
<PAGE>
Results of Operations - Continued
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.
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 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
10
<PAGE>
Results of Operations - Continued
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 XV, 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 XV, 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 10Q of CNL Income Fund XV, 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> 1,222,529
<SECURITIES> 0
<RECEIVABLES> 7,434
<ALLOWANCES> 7,434
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 24,535,468
<DEPRECIATION> 1,004,141
<TOTAL-ASSETS> 36,602,550
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 35,764,603
<TOTAL-LIABILITY-AND-EQUITY> 36,602,550
<SALES> 0
<TOTAL-REVENUES> 2,376,873
<CGS> 0
<TOTAL-COSTS> 415,175
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,141,200
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,141,200
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,141,200
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund XV, Ltd. has an
unclassified balance sheet; therefore, no values are shown above for current
assets and current liabilities.
</FN>
</TABLE>
