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
0-22485
CNL Income Fund XVII, Ltd.
(Exact name of registrant as specified in its charter)
Florida 59-3295393
(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 5-9
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 10-14
Part II
Other Information 15
<PAGE>
CNL INCOME FUND XVII, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
September 30, December 31,
ASSETS 1997 1996
------------- -----------
Land and buildings on operating
leases, less accumulated
depreciation $21,640,045 $21,364,032
Net investment in direct financing
leases 3,065,190 1,982,164
Investment in joint venture 1,245,495 201,171
Cash and cash equivalents 1,115,922 4,716,719
Receivables, less allowance for
doubtful accounts of $10,761 and
$4,469 - 63,253
Prepaid expenses 3,373 -
Organization costs, less accumulated
amortization of $3,809 and $2,309 6,191 7,691
Accrued rental income 386,940 167,216
Other assets 128,721 172,761
----------- -----------
$27,591,877 $28,675,007
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 23,419 $ 2,985
Accrued construction costs payable 38,834 1,560,712
Distributions payable 600,000 490,084
Due to related parties 6,715 17,153
Rents paid in advance 124,028 52,769
Deferred rental income 125,904 90,482
----------- -----------
Total liabilities 918,900 2,214,185
Minority interest 415,791 140,676
Partners' capital 26,257,186 26,320,146
----------- -----------
$27,591,877 $28,675,007
=========== ===========
See accompanying notes to condensed financial statements.
1
<PAGE>
CNL INCOME FUND XVII, 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 $ 620,623 $ 303,976 $1,726,684 $ 525,787
Earned income from direct
financing leases 94,807 44,574 224,912 80,337
Interest and other income 8,372 74,840 58,641 184,598
---------- ---------- ---------- ----------
723,802 423,390 2,010,237 790,722
---------- ---------- ---------- ----------
Expenses:
General operating and
administrative 26,636 49,163 101,337 107,897
Professional services 6,530 4,164 16,595 11,631
Management fees to related
party 6,655 3,762 18,844 6,158
State and other taxes - - 6,442 -
Depreciation and
amortization 100,107 57,928 288,145 90,859
---------- ---------- ---------- ----------
139,928 115,017 431,363 216,545
---------- ---------- ---------- ----------
Income Before Minority
Interest in Income of
Consolidated Joint Venture
and Equity in Earnings of
Unconsolidated Joint
Ventures 583,874 308,373 1,578,874 574,177
Minority Interest in Income
of Consolidated Joint
Venture (15,697) - (26,129) -
Equity in Earnings of
Unconsolidated Joint
Ventures 26,437 - 71,795 -
---------- ---------- ---------- ---------
Net Income $ 594,614 $ 308,373 $1,624,540 $ 574,177
========== ========== ========== ==========
Allocation of Net Income:
General partners $ (54) $ (579) $ (630) $ (908)
Limited partners 594,668 308,952 1,625,170 575,085
---------- ---------- ---------- ----------
$ 594,614 $ 308,373 $1,624,540 $ 574,177
========== ========== ========== ==========
Net Income Per Limited
Partner Unit $ 0.20 $ 0.12 $ 0.54 $ 0.33
========== ========== ========== ==========
Weighted Average Number of
Limited Partner Units
Outstanding 3,000,000 2,530,985 3,000,000 1,748,248
========== ========== ========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
CNL INCOME FUND XVII, 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 $ 288 $ 997
Net income (630) (709)
----------- -----------
(342) 288
----------- -----------
Limited partners:
Beginning balance 26,319,858 4,641,236
Contributions - 24,303,079
Syndication costs - (2,554,236)
Net income 1,625,170 1,096,468
Distributions ($0.56 and
$0.39 per limited partner
unit, respectively) (1,687,500) (1,166,689)
----------- -----------
26,257,528 26,319,858
----------- -----------
Total partners' capital $26,257,186 $26,320,146
=========== ===========
See accompanying notes to condensed financial statements.
3
<PAGE>
CNL INCOME FUND XVII, 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 $ 1,912,554 $ 711,101
------------ ------------
Cash Flows From Investing Activities:
Additions to land and buildings on
operating leases (1,978,420) (14,912,815)
Investment in direct financing leases (1,130,497) (1,590,308)
Investment in joint ventures (1,050,402) -
Increase in other assets - (83,837)
------------ ------------
Net cash used in investing
activities (4,159,319) (16,586,960)
------------ ------------
Cash Flows From Financing Activities:
Reimbursement of acquisition and
syndication costs paid by related
parties on behalf of the Partnership (25,434) (323,419)
Contributions from limited partners - 24,206,754
Contributions from minority interest 278,170 -
Distributions to limited partners (1,577,584) (353,812)
Distribution to holder of minority
interest (29,184) -
Payment of syndication costs - (2,445,429)
------------ ------------
Net cash provided by (used in)
financing activities (1,354,032) 21,084,094
------------ ------------
Net Increase (Decrease) in Cash and Cash
Equivalents (3,600,797) 5,208,235
Cash and Cash Equivalents at Beginning of
Period 4,716,719 4,198,859
------------ ------------
Cash and Cash Equivalents at End of Period $ 1,115,922 $ 9,407,094
============ ============
Supplemental Schedule of Non-Cash Investing
and Financing Activities:
Related parties paid certain acquisition
and syndication costs on behalf of
the Partnership as follows:
Acquisition costs $ 11,253 $ 67,840
Syndication costs - 231,885
------------ ------------
$ 11,253 $ 299,725
============ ============
Distributions declared and unpaid at end
of period $ 600,000 $ 349,912
============ ============
See accompanying notes to condensed financial statements.
4
<PAGE>
CNL INCOME FUND XVII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Nine Months Ended September 30, 1997 and 1996
1. Significant Accounting Policies:
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 XVII, Ltd. (the "Partnership") for the year ended December
31, 1996.
The Partnership accounts for its 80 percent interest in the accounts of
CNL/GC El Cajon Joint Venture using the consolidation method. Minority
interest represents the minority joint venture partner's proportionate
share of the equity in the Partnership's consolidated joint venture.
All significant intercompany accounts and transactions have been
eliminated.
Certain items in the prior year's financial statements have been
reclassified to conform to 1997 presentation. These reclassifications
had no effect on partners' capital or net income.
5
<PAGE>
CNL INCOME FUND XVII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
2. Land and Buildings on Operating Leases:
Land and buildings on operating leases consisted of the following at:
September 30, December 31,
1997 1996
Land $10,357,239 $10,148,827
Buildings 11,741,337 11,168,540
----------- -----------
22,098,576 21,317,367
Less accumulated
depreciation (458,531) (176,995)
----------- -----------
21,640,045 21,140,372
Construction in
progress - 223,660
----------- -----------
$21,640,045 $21,364,032
=========== ===========
Some leases provide for escalating guaranteed minimum rents throughout
the lease term and/or rental payments during the construction of a
property prior to the date it is placed in service. Income from these
scheduled rent increases is recognized on a straight-line basis over
the terms of the leases. For the nine months ended September 30, 1997
and 1996, the Partnership recognized $219,724 and $69,918,
respectively, of such rental income.
The following is a schedule of the future minimum lease payments to be
received on noncancellable operating leases at September 30, 1997:
1997 $404,396
1998 2,193,839
1999 2,206,133
2000 2,218,770
2001 2,312,449
Thereafter 32,871,843
-----------
$42,207,430
Since lease renewal periods are exercisable at the option of the
tenant, the above table only presents future minimum lease payments due
during the initial lease terms. In addition, this table does not
include any amounts for future contingent rentals which may be received
on the leases based on a percentage of the tenant's gross sales.
6
<PAGE>
CNL INCOME FUND XVII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
3. Investment in Joint Ventures:
In January 1997, the Partnership acquired an approximate 27 percent
interest in a Black-Eyed Pea property in Corpus Christi, Texas, and an
approximate 37 percent interest in a Burger King property in Akron,
Ohio, as tenants-in-common with affiliates of the general partners. The
Partnership accounts for its investment in these properties using the
equity method since the Partnership shares control with an affiliate,
and amounts relating to these investments are included in investment in
joint ventures.
In February 1997, the Partnership entered into a joint venture
arrangement, CNL Mansfield Joint Venture, with an affiliate of the
general partners, to own an approximate 21 percent interest in this
joint venture. The Partnership accounts for its investment in this
joint venture using the equity method since the Partnership shares
control with an affiliate.
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. As of September 30, 1997, the Partnership
and it's co-venture partner had contributed $116,206 and $77,277,
respectively, to purchase land relating to the joint venture. The
Partnership and its co-venture partner have agreed to contribute
approximately $195,800 and $130,200, respectively, in construction
costs to the joint venture. When construction is completed, the
Partnership and its co-venture partner expect to have an approximate 60
and 40 percent interest, respectively, 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.
7
<PAGE>
CNL INCOME FUND XVII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
3. Investment in Joint Ventures - Continued:
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 $ 4,184,517 $ 960,732
Cash 15,103 100
Accrued rental income 46,762 3,929
Other assets 12,077 -
Liabilities 22,389 23
Partners' capital 4,236,070 964,738
Revenues 326,723 29,293
Net income 270,745 24,502
The Partnership recognized income totalling $26,437 and $71,795 for the
quarter and nine months ended September 30, 1997, respectively, from
these joint ventures.
4. Concentration of Credit Risk:
The following schedule presents total rental and earned income from
individual lessees, or affiliated groups of lessees, and the respective
restaurant chains, each representing more than ten percent of the
Partnership's total rental and earned income for at least one of the
nine month periods ended September 30:
1997 1996
-------- ------
Golden Corral Corporation $349,449 $165,894
DenAmerica Corp. 319,740 154,303
Foodmaker, Inc. 240,487 43,793
National Restaurant
Enterprises, Inc. 208,212 144,833
RTM Indianapolis, Inc. and
RTM Southwest, Texas, Inc. 201,837 71,824
8
<PAGE>
CNL INCOME FUND XVII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
Quarters and Nine Months Ended September 30, 1997 and 1996
4. Concentration of Credit Risk - Continued:
In addition, the following schedule presents total rental and earned
income from individual restaurant chains, each representing more than
ten percent of the Partnership's total rental and earned income for at
least one of the nine month periods ended September 30:
1997 1996
-------- ------
Golden Corral Family
Steakhouse Restaurants $483,307 $165,894
Burger King 303,641 144,833
Jack in the Box 239,464 43,793
Boston Market 229,251 44,852
Arby's 201,837 71,824
Denny's 189,617 154,303
Although the Partnership's properties are geographically diverse
throughout the United States and the Partnership's lessees operate a
variety of restaurant concepts, default by any one of these lessees or
restaurant chains could significantly impact the results of operations
of the Partnership. However, the general partners believe that the risk
of such a default is reduced due to the essential or important nature
of these properties for the ongoing operations of the lessees.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CNL Income Fund XVII, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on February 10, 1995, 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 are to be
constructed, to be leased primarily to operators of national and regional
fast-food, family-style and casual dining restaurant chains (collectively, the
"Properties"). The leases are triple-net leases, with the lessee generally
responsible for all repairs and maintenance, property taxes, insurance and
utilities. As of September 30, 1997, the Partnership owned 28 Properties,
including three Properties owned by joint ventures in which the Partnership is a
co-venturer and three Properties owned with affiliates as tenants-in-common.
Liquidity and Capital Resources
On September 2, 1995, the Partnership commenced an offering to the
public of up to 3,000,000 units of limited partnership interest. The
Partnership's offering of units terminated on September 19, 1996, at which time
the maximum offering proceeds of 3,000,000 units ($30,000,000) had been received
from investors. The Partnership, therefore, will derive no additional capital
resources from the offering.
Net proceeds to the Partnership from its offering of units, after
deduction of organizational and offering expenses, totalled $26,400,000. As of
September 30, 1997, approximately $26,357,300 had been invested or committed for
investment, either directly or through a joint venture arrangement, in 28
Properties and to pay acquisition fees and certain acquisition expenses. Upon
completion of the Partnership's acquisitions in September 1997, the remaining
net offering proceeds of approximately $42,700 from the Partnership's offering
of units were reserved for Partnership purposes.
In January 1997, the Partnership acquired an approximate 27 percent
interest in a Black-eyed Pea Property in Corpus Christi, Texas, and an
approximate 37 percent interest in a Burger King property in Akron, Ohio, as
tenants-in-common with affiliates of the general partners. In addition, during
February 1997, the Partnership entered into a joint venture arrangement, CNL
Mansfield Joint Venture, with an affiliate of the general partners, to own an
approximate 21 percent interest in this joint venture.
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. As of September 30, 1997, the Partnership and its
co-venture partner had contributed $116,206 and $77,277, respectively, to
purchase land relating to the joint venture. The Partnership and its co-venture
10
<PAGE>
Liquidity and Capital Resources - Continued
partner have agreed to contribute approximately $195,800 and $130,200,
respectively, in construction costs to the joint venture. When construction is
completed, the Partnership and its co-venture partner expect to have an
approximate 60 and 40 percent interest, respectively, in the profits and losses
of the joint venture.
Currently, the Partnership's primary source of capital is 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 $1,912,554 and $711,101 for the nine months ended
September 30, 1997 and 1996, respectively. The increase 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.
Currently, rental income from the Partnership's Properties is 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 $1,115,922
invested in such short-term investments, as compared to $4,716,719 at December
31, 1996. The decrease in the amount invested in short-term investments is
primarily attributable to the acquisition of additional Properties, as described
above, during the nine months ended September 30, 1997. The funds remaining at
September 30, 1997, after the payment of accrued acquisition and construction
costs and other liabilities, will be used to pay limited partner distributions
and to meet the Partnership's working capital and other needs.
Total liabilities of the Partnership, including distributions payable,
decreased to $918,900 at September 30, 1997, from $2,214,185 at December 31,
1996, primarily as a result of the payment during the nine months ended
September 30, 1997, of construction costs accrued for certain Properties at
December 31, 1996. The decrease in total liabilities is partially offset by an
increase in distributions payable to limited partners and an increase in rents
paid in advance. The general partners believe that the Partnership has
sufficient cash on hand to meet its current working capital needs.
Based on cash from operations, the Partnership declared distributions
to the limited partners of $1,687,500 and $676,648 for the nine months ended
September 30, 1997 and 1996, respectively ($600,000 and $349,912 for the
quarters ended September 30, 1997 and 1996, respectively). This represents
distributions of $0.56 and $0.39 per unit for the nine months ended September
30, 1997 and 1996, respectively ($0.20 and $0.14 per unit for the quarters ended
September 30, 1997 and 1996, respectively. No distributions were made to the
general partners for the quarters and nine months ended
11
<PAGE>
Liquidity and Capital Resources - Continued
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 contributions. 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 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.
Results of Operations
During the nine months ended September 30, 1996, the Partnership owned
and leased 19 wholly owned Properties and during the nine months ended September
30, 1997, the Partnership and its consolidated joint venture, CNL/GC El Cajon
Joint Venture, owned and leased 23 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
$1,951,596 and $606,124, respectively, in rental income from operating leases
and earned income from direct financing leases from these Properties, $715,430
and $348,550 of which was earned during the quarters ended September 30, 1997
and 1996, respectively. The increase in rental and earned income during the
quarter and nine months ended September 30, 1997, as compared to the quarter and
nine months ended September 30, 1996, is primarily attributable to the
acquisition of additional Properties subsequent to September 30, 1996, and the
fact that Properties acquired during the quarter and nine months ended September
30, 1996, were operational for the full quarter and nine months ended September
30, 1997, as compared to a partial quarter and nine months ended September 30,
1996.
In addition, during the nine months ended September 30, 1997, the
Partnership owned and leased three Properties with an affiliate as
tenants-in-common and two Properties indirectly through joint venture
arrangements. In connection therewith, during the quarter and nine months ended
September 30, 1997, the Partnership earned $26,437 and $71,795, respectively,
attributable to net income earned by these joint ventures, as described above in
"Liquidity and Capital Resources".
12
<PAGE>
Results of Operation - Continued
During the nine months ended September 30, 1997, four lessees, of the
Partnership, Golden Corral Corporation, National Restaurant Enterprises, Inc.,
DenAmerica Corp., and Foodmaker, Inc., each contributed more than ten percent of
the Partnership's total rental income. As of September 30, 1997, Golden Corral
Corporation was the lessee under leases relating to three restaurants, National
Restaurant Enterprises, Inc. was the lessee under leases relating to two
restaurants, DenAmerica Corporation was the lessee under leases relating to four
restaurants, and Foodmaker, Inc. was the lessee under leases relating to four
restaurants. It is anticipated that, based on the minimum rental payments
required by the leases, these lessees or groups of affiliated lessees, each will
continue to contribute more than ten percent of the Partnership's total rental
income during the remainder of 1997 and subsequent years. During the nine months
ended September 30, 1997, four restaurant chains, Golden Corral Family
Steakhouse Restaurants, Jack in the Box, Boston Market and Burger King, each
accounted for more than ten percent of the Partnership's total rental income.
During the remainder of 1997 and subsequent years, it is anticipated that these
four restaurant chains each will continue to account for more than ten percent
of the total rental income to which the Partnership is entitled under the terms
of the leases. Any failure of these lessees or restaurant chains could
materially affect the Partnership's income.
During the nine months ended September 30, 1997 and 1996, the
Partnership also earned $58,641 and $184,598, respectively, in interest and
other income, $8,372 and $74,840 of which was earned during the quarters ended
September 30, 1997 and 1996, respectively. The decrease in interest and other
income during the quarter and nine months ended September 30, 1997, as compared
to the quarter and nine months ended September 30, 1996, is primarily
attributable to the decrease in the amount of funds invested in short-term,
liquid investments due to the acquisition of additional Properties subsequent to
September 30, 1996, and during the nine months ended September 30, 1997.
Operating expenses, including depreciation and amortization expense,
were $431,363 and $216,545 for the nine months ended September 30, 1997 and
1996, respectively, of which $139,928 and $115,017 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,
as compared to the quarter and nine months ended September 30, 1996, is
partially attributable to an increase in depreciation expense as the result of
the acquisition of additional Properties subsequent to September 30, 1996, and
the fact that Properties acquired during the quarter and nine months ended
September 30, 1996, were operational for the full quarter and nine months ended
September 30, 1997, as compared to a partial quarter and nine months ended
13
<PAGE>
Results of Operation - Continued
September 30, 1996. Operating expenses also increased during the quarter and
nine months ended September 30, 1997, as a result of an increase in management
fees as a result of the increase in rental revenues, as described above, and as
a result of the Partnership incurring additional taxes relating to the filing of
various state tax returns during the nine months ended September 30, 1997. The
increase in operating expenses during the quarter and nine months ended
September 30, 1997, is partially offset by a decrease in accounting and
administrative expenses associated with operating the Partnership and its
Properties.
14
<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.
15
<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 XVII, 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 XVII, 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 XVII, 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> 1,115,922
<SECURITIES> 0
<RECEIVABLES> 10,761
<ALLOWANCES> 10,761
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 22,098,576
<DEPRECIATION> 458,531
<TOTAL-ASSETS> 27,591,877
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 26,257,186
<TOTAL-LIABILITY-AND-EQUITY> 27,591,877
<SALES> 0
<TOTAL-REVENUES> 2,010,237
<CGS> 0
<TOTAL-COSTS> 431,363
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,624,540
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,624,540
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,624,540
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund XVII, Ltd. has an
unclassified balance sheet; therefore, no values are listed above for current
assets and current liabilities.
</FN>
</TABLE>
