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
0-26218
---------------------------------------
CNL Income Fund XVI, Ltd.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
Florida 59-3198891
- ------------------------------------------------------ ------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
<S> <C>
450 South Orange Ave.
Orlando, Florida 32801 - 3336
- ------------------------------------------------------ ------------------------------------------------
(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 XVI, 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 land and
buildings $ 29,258,523 $ 29,804,331
Net investment in direct financing leases 4,529,236 4,540,067
Investment in joint ventures 1,648,296 1,650,860
Cash and cash equivalents 1,509,748 1,637,753
Lease costs, less accumulated amortization of $2,160 and
$1,348, respectively 37,763 24,518
Receivables, less allowance for doubtful accounts
of $210,413 and $90,894, respectively 232,014 287,757
Prepaid expenses 3,575 13,121
Accrued rental income, less allowance for doubtful accounts of
$7,762 and $6,098, respectively 1,804,811 1,752,566
------------------ -------------------
$ 39,023,966 $ 39,710,973
================== ===================
LIABILITIES AND PARTNERS' CAPITAL
Construction costs payable $ 150,000 $ 150,000
Accounts payable 44,795 131,113
Accrued and escrowed real estate taxes payable 15,553 5,860
Distributions payable 900,000 900,000
Due to related parties 104,037 73,853
Rents paid in advance and deposits 66,602 43,215
------------------ -------------------
Total liabilities 1,280,987 1,304,041
Partners' capital 37,742,979 38,406,932
------------------ -------------------
$ 39,023,966 $ 39,710,973
================== ===================
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND XVI, 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 $ 776,690 $ 798,369
Earned income from direct financing leases 89,164 133,545
Interest and other income 42,267 19,953
-------------- ---------------
908,121 951,867
-------------- ---------------
Expenses:
General operating and administrative 50,320 47,619
Professional services 20,903 9,327
Management fees to related party 8,675 9,001
Real estate taxes 14,844 17,153
State and other taxes 26,683 23,165
Depreciation and amortization 146,129 144,854
Transaction costs 43,298 33,158
-------------- ---------------
310,852 284,277
-------------- ---------------
Income Before Equity in Earnings of Joint Ventures and
Provision for Loss on Land and Buildings 597,269 667,590
Equity in Earnings of Joint Ventures 39,269 37,806
Provision for Loss on Land and Buildings (400,491 ) --
-------------- ---------------
Net Income $ 236,047 $ 705,396
============== ===============
Allocation of Net Income:
General partners $ 4,835 $ 7,054
Limited partners 231,212 698,342
-------------- ---------------
$ 236,047 $ 705,396
============== ===============
Net Income Per Limited Partner Unit $ 0.05 $ 0.16
============== ===============
Weighted Average Number of Limited Partner
Units Outstanding 4,500,000 4,500,000
============== ===============
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND XVI, 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 $ 160,017 $ 131,300
Net income 4,835 28,717
------------------- -----------------
164,852 160,017
------------------- -----------------
Limited partners:
Beginning balance 38,246,915 39,060,624
Net income 231,212 2,786,291
Distributions ($0.20 and $0.80 per limited
partner unit, respectively) (900,000 ) (3,600,000 )
------------------- -----------------
37,578,127 38,246,915
------------------- -----------------
Total partners' capital $ 37,742,979 $ 38,406,932
=================== =================
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND XVI, 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 $ 786,052 $ 847,198
--------------- --------------
Cash Flows from Investing Activities:
Investment in joint ventures -- (145,235 )
Payment of lease costs (14,057 ) --
--------------- --------------
Net cash used in investing activities (14,057 ) (145,235 )
--------------- --------------
Cash Flows from Financing Activities:
Distributions to limited partners (900,000 ) (900,000 )
--------------- --------------
Net cash used in financing activities (900,000 ) (900,000 )
--------------- --------------
Net Decrease in Cash and Cash Equivalents (128,005 ) (198,037 )
Cash and Cash Equivalents at Beginning of Quarter 1,637,753 1,603,589
--------------- --------------
Cash and Cash Equivalents at End of Quarter $1,509,748 $1,405,552
=============== ==============
Supplemental Schedule of Non-Cash Financing
Activities:
Distributions declared and unpaid at end of
quarter $ 900,000 $ 900,000
=============== ==============
See accompanying notes to condensed financial statements
</TABLE>
<PAGE>
CNL INCOME FUND XVI, 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 XVI, 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 $ 15,034,850 $ 15,034,850
Buildings 17,540,422 17,540,422
--------------------- ------------------------
32,575,272 32,575,272
Less accumulated depreciation (2,650,001) (2,504,684 )
--------------------- ------------------------
29,925,271 30,070,588
Less allowance for loss on land and
buildings (666,748) (266,257 )
--------------------- ------------------------
$ 29,258,523 $ 29,804,331
===================== ========================
</TABLE>
As of the year ended December 31, 1999, the Partnership had established
an allowance for loss on building of $266,257, relating to the Long
John Silver's property located in Celina, Ohio. The tenant of this
property filed for bankruptcy and ceased payment of rents under the
terms of its lease agreement. The allowance represented the difference
between the net carrying value of the property December 31, 1999 and
current estimate of net realizable value for this property.
<PAGE>
CNL INCOME FUND XVI, 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):
In addition, during the quarter ended March 31, 2000, the Partnership
established an allowance for loss on land and building of $400,491,
relating to the Boston Market property located in Columbia Heights,
Minnesota. The tenant for this property filed for bankruptcy and ceased
payment of rents under the terms of its lease agreement. The allowance
represents the difference between the net carrying value of the
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.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CNL Income Fund XVI, 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 restaurant properties, 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
are generally triple-net leases, with the lessee responsible for all repairs and
maintenance, property taxes, insurance and utilities. As of March 31, 2000, the
Partnership owned 43 Properties, which included interests in one Property owned
through a joint venture arrangement in which the Partnership is a co-venturer
and two Properties owned with affiliates as tenants-in-common.
Capital Resources
The Partnership's primary source of capital for the quarters ended
March 31, 2000 and 1999 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 $786,052 and
$847,198 for the quarters ended March 31, 2000 and 1999, 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 income and expenses as described in "Results of Operations" below.
Currently, rental income from the Partnership's Properties and net
sales proceeds held by the Partnership are 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
reinvest in additional Properties, to pay Partnership expenses or to make
distributions to the partners. At March 31, 2000, the Partnership had $1,509,748
invested in such short-term investments, as compared to $1,637,753 at December
31, 1999. Cash and cash equivalents decreased during the quarter ended March 31,
2000, primarily as a result of payment of accounts payable from December 31,
1999. The funds remaining at March 31, 2000, after payment of distributions and
other liabilities, will be used to invest in additional Properties and to meet
the Partnership's working capital and other needs.
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 generally meet
specified financial standards minimizes the Partnership's operating expenses.
The general partners believe that the leases will continue to generate cash flow
in excess of operating expenses.
The general partners have the right, but not the obligation, to make
additional capital contributions if they deem it appropriate in connection with
the operations of the Partnership.
The Partnership generally distributes cash from operations remaining
after the payment of operating expenses of the Partnership. Based on current and
future cash from operations, the Partnership declared distributions to limited
partners of $900,000 for each of the quarters ended March 31, 2000 and 1999.
This represents distributions of $0.20 per unit for each of the quarters. 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,
decreased to $1,280,987 at March 31, 2000, from $1,304,041 at December 31, 1999.
The decrease in liabilities at March 31, 2000 was primarily a result of a
decrease in accounts payable at March 31, 2000. The decrease was partially
offset by increases in amounts due to related parties and rents paid in advance
at March 31, 2000 as compared to December 31, 1999. The general partners believe
that the Partnership has sufficient cash on hand to meet its current working
capital needs.
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 41 wholly owned Properties (which included one Property which was sold in
November 1999) and during the quarter ended March 31, 2000, the Partnership
owned and leased 40 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 $865,854 and $931,914, respectively, in
rental income from operating leases and earned income from direct financing
leases from these Properties. Rental and earned income decreased approximately
$88,400 during the quarter ended March 31, 2000, as compared to the quarter
ended March 31, 1999, due to the fact that during the quarter ended March 31,
2000, the Partnership established an allowance for doubtful accounts for past
due rental amounts relating to several 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. No such allowance was recorded during the
quarter ended March 31, 1999.
Rental and earned income in the quarters ended March 31, 2000 and 1999,
continued to remain at reduced amounts due to the fact that the Partnership is
not receiving any rental income from the Property in Columbia Heights, Minnesota
as a result of the fact that the tenant filed for bankruptcy in October 1998,
ceased payment of rent and in November 1998, vacated the Property. The general
partners are currently seeking either a new tenant or a purchaser for this
Property. The Partnership will not recognize any rental or earned income from
this Property until a new tenant for this Property is located or until the
Property is sold and the proceeds from such sale are reinvested in an additional
Property.
The decrease in rental and earned income during the quarter ended March
31, 2000, as compared to the quarter ended March 31, 1999, was partially offset
by an increase in rental and earned income of approximately $34,200 due to the
fact that the Partnership collected and recognized as income past due rental
amounts received from Long John Silver's, Inc., which filed for bankruptcy
during 1998 and rejected the leases relating to two of the three Properties it
leased. As of March 31, 2000, the Partnership had entered into new leases, each
with a new tenant, for the two Properties whose leases had been rejected. In
1999, Long John Silver's, Inc. assumed and affirmed its one remaining lease, and
the Partnership has continued to receive rental payments relating to this lease.
During the quarters ended March 31, 2000 and 1999, the Partnership
owned and leased two Properties with affiliates of the general partners as
tenants-in-common and one Property indirectly through a joint venture
arrangement. In connection therewith, during the quarters ended March 31, 2000
and 1999, the Partnership earned $39,269 and $37,806, respectively, attributable
to net income earned by these joint ventures.
Operating expenses, including depreciation and amortization expense,
were $310,852 and $284,277 for the quarters ended March 31, 2000 and 1999,
respectively. The increase in operating expenses during the quarter ended March
31, 2000, as compared to March 31, 1999, was primarily due to the fact that the
Partnership incurred $43,298 and $33,158, respectively, in transaction costs
relating to the general partners retaining financial and legal advisors to
assist them in evaluating and negotiating the proposed merger with CNL American
Properties Fund, Inc. ("APF") due to the termination of the proposed merger, as
described in "Termination of Merger," below.
During the quarter ended March 31, 2000, the Partnership recorded an
allowance for loss on land and building of $400,491 relating to a Property in
Columbia Heights, Minnesota. The tenant of this Property filed for bankruptcy in
October 1998, ceased payment of rents and in November 1998, vacated the
Property. The allowance represented the difference between the carrying value of
the Property at March 31, 2000 and the estimated net realizable value of the
Property at March 31, 2000. No such allowance was recorded during the quarter
ended March 31, 1999.
Termination of Merger:
On March 1, 2000, the general partners and 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 XVI, Ltd. (Included as Exhibit 3.2 to
Registration Statement No. 33-69968-01 on Form S-11 and
incorporated herein by reference.)
4.1 Affidavit and Certificate of Limited Partnership of CNL
Income Fund XVI, Ltd. (Included as Exhibit 3.2 to
Registration Statement No. 33-69968-01 on Form S-11 and
incorporated herein by reference.)
4.2 Amended and Restated Agreement of Limited Partnership
of CNL Income Fund XVI, Ltd. (Included as Exhibit 4.2
to Form 10-K filed with the Securities and Exchange
Commission on March 30, 1995, and incorporated herein
by reference.)
10.1 Management Agreement between CNL Income Fund XVI, Ltd.
and CNL Investment Company (Included as Exhibit 10.1 to
Form 10-K filed with the Securities and Exchange
Commission on March 30, 1995, 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 10th day of May, 2000.
CNL INCOME FUND XVI, 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 XVI, 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 10-Q of CNL Income Fund XVI, 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> 1,509,748
<SECURITIES> 0
<RECEIVABLES> 442,427
<ALLOWANCES> 210,413
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 31,908,524
<DEPRECIATION> 2,650,001
<TOTAL-ASSETS> 39,023,966
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 37,742,979
<TOTAL-LIABILITY-AND-EQUITY> 39,023,966
<SALES> 0
<TOTAL-REVENUES> 908,121
<CGS> 0
<TOTAL-COSTS> 310,852
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 236,047
<INCOME-TAX> 0
<INCOME-CONTINUING> 236,047
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 236,047
<EPS-BASIC> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund XVI, Ltd. has an
unclassified balance sheet; therefore, no values are shown above for current
assets and current liabilities.
</FN>
</TABLE>
