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
0-24095
---------------------------------------
CNL Income Fund XVIII, Ltd.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-3295394
- ----------------------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
450 South Orange Avenue
Orlando, Florida 32801
- ----------------------------------------- -----------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number
(including area code) (407) 540-2000
-----------------------------
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 XVIII, 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 of $996,485 and
$899,785, respectively, and allowance for loss on land
of $197,466, in 2000 and 1999 $ 22,418,172 $ 22,514,872
Net investment in direct financing leases 5,188,275 5,209,759
Investment in joint ventures 688,765 688,113
Cash and cash equivalents 1,289,090 1,282,113
Restricted cash 697,774 690,885
Receivables, less allowance for doubtful
accounts of $1,618 and $11,172, respectively 3,749 28,037
Prepaid expenses 5,009 9,341
Accrued rental income 426,387 383,725
Other assets 59,161 59,161
------------------ ------------------
$ 30,776,382 $ 30,866,006
================== ==================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 41,751 $ 86,294
Accrued real estate taxes payable 1,244 --
Distributions payable 700,000 700,000
Due to related parties 69,075 36,737
Rents paid in advance 45,563 13,969
Deferred rental income 32,303 45,151
------------------ ------------------
Total liabilities 889,936 882,151
Partners' capital 29,886,446 29,983,855
------------------ ------------------
$ 30,776,382 $ 30,866,006
================== ==================
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND XVIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
Quarter Ended
March 31,
2000 1999
--------------- --------------
Revenues:
Rental income from operating leases $ 608,345 $ 612,321
Earned income from direct financing leases 130,472 148,801
Interest and other income 21,574 14,939
--------------- --------------
760,391 776,061
--------------- --------------
Expenses:
General operating and administrative 33,921 36,076
Professional services 10,234 9,980
Management fees to related party 7,254 7,337
Real estate taxes 1,244 --
State and other taxes 17,604 14,139
Depreciation and amortization 96,700 102,420
Transaction costs 7,380 31,624
--------------- --------------
174,337 201,576
--------------- --------------
Income Before Equity in Earnings of Unconsolidated Joint
Ventures 586,054 574,485
Equity in Earnings of Unconsolidated Joint Ventures 16,537 9,027
--------------- --------------
Net Income $ 602,591 $ 583,512
=============== ==============
Allocation of Net Income:
General partners $ (967 ) $ (1,024 )
Limited partners 603,558 584,536
--------------- --------------
$ 602,591 $ 583,512
=============== ==============
Net Income Per Limited Partner Unit $ 0.17 $ 0.17
=============== ==============
Weighted Average Number of Limited Partner
Units Outstanding 3,500,000 3,500,000
=============== ==============
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND XVIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Quarter Ended Year Ended
March 31, December 31,
2000 1999
------------------- ------------------
General partners:
Beginning balance $ (5,319 ) $ (2,010 )
Net income (967 ) (3,309 )
------------------- ------------------
(6,286 ) (5,319 )
------------------- ------------------
Limited partners:
Beginning balance 29,989,174 30,270,507
Net income 603,558 2,518,665
Distributions ($0.20 and $0.80 per
limited partner unit, respectively)
(700,000 ) (2,799,998 )
------------------- ------------------
29,892,732 29,989,174
------------------- ------------------
Total partners' capital $ 29,886,446 $ 29,983,855
=================== ==================
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND XVIII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Quarter Ended
March 31,
2000 1999
--------------- --------------
Increase (Decrease) in Cash and Cash Equivalents
Net Cash Provided by Operating Activities $ 706,977 $ 713,825
--------------- --------------
Cash Flows from Investing Activities:
Investment in joint venture -- (509,750 )
Other -- (117 )
--------------- --------------
Net cash used in investing activities -- (509,867 )
--------------- --------------
Cash Flows from Financing Activities:
Reimbursement of acquisition costs paid by related
parties on behalf of the Partnership -- (2,596 )
Distributions to limited partners (700,000 ) (700,000 )
--------------- --------------
Net cash used in financing activities (700,000 ) (702,596 )
--------------- --------------
Net Increase (Decrease) in Cash and Cash Equivalents
6,977 (498,638 )
Cash and Cash Equivalents at Beginning of Quarter 1,282,113 1,839,613
--------------- --------------
Cash and Cash Equivalents at End of Quarter $1,289,090 $1,340,975
=============== ==============
Supplemental Schedule of Non-Cash Financing Activities:
Distributions declared and unpaid at end of quarter
$ 700,000 $ 700,000
=============== ==============
</TABLE>
See accompanying notes to condensed financial statements.
<PAGE>
CNL INCOME FUND XVIII, 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 XVIII, Ltd. (the "Partnership") for the year ended December
31, 1999.
2. Restricted Cash:
As of March 31, 2000, the net sales proceeds of $688,997 from the 1999
sale of the property in Atlanta, Georgia, plus accrued interest of
$8,777, were being held in an interest-bearing escrow account pending
the release of funds by the escrow agent to pay liabilities of the
Partnership, to reinvest in an additional property or to distribute to
the limited partners.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CNL Income Fund XVIII, 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 restaurants, as well as land upon which restaurants were to be
constructed (collectively, the "Properties"), which are leased primarily to
operators of selected national and regional fast-food, family-style and casual
dining restaurant chains. The leases generally are triple-net leases, with the
lessees responsible for all repairs and maintenance, property taxes, insurance
and utilities. As of March 31, 2000, the Partnership owned 24 Properties, which
included interests in two Properties owned by joint ventures in which the
Partnership is a co-venturer.
Capital Resources
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 $706,977 and $713,825 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 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 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 pay Partnership expenses or to make distributions to
partners. At March 31, 2000, the Partnership had $1,289,090 invested in such
short-term investments, as compared to $1,282,113 at December 31, 1999. The
funds remaining at March 31, 2000, after the payment of distributions and other
liabilities, will be used 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, to the extent that
the general partners determine that such funds are available for distribution.
Based on cash from operations, the Partnership declared distributions to limited
partners of $700,000 for each of the quarters ended March 31, 2000 and 1999.
This represents distributions for each applicable quarter of $0.20 per unit. 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,
were $889,936 and $882,151 at March 31, 2000 and December 31, 1999,
respectively. The general partners believe 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 23 wholly owned Properties (including one Property which was sold in
December 1999), and during the quarter ended March 31, 2000, the Partnership
owned and leased 22 wholly owned 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 $738,817 and $761,122,
respectively, in rental income from operating leases and earned income from
direct financing leases from these Properties. The decrease in rental and earned
income during the quarter ended March 31, 2000, as compared to the quarter ended
March 31, 1999, was primarily due to the sale of the Partnership's Property in
Atlanta, Georgia in December 1999. The Partnership intends to use the net sales
proceeds to pay liabilities of the Partnership, to reinvest in an additional
Property or to distribute to the limited partners.
During the quarters ended March 31, 2000 and 1999, the Partnership
owned and leased two Properties indirectly through joint venture arrangements.
In connection therewith, during the quarters ended March 31, 2000 and 1999, the
Partnership earned $16,537 and $9,027, respectively, attributable to net income
earned by these joint ventures. The increase in net income earned by joint
ventures for the quarter ended March 31, 2000, is primarily due to the fact that
in February 1999, the Partnership invested in Portsmouth Joint Venture.
Operating expenses, including depreciation and amortization expense,
were $174,337 and $201,576 for the quarters ended March 31, 2000 and 1999,
respectively. The decrease in operating expenses was primarily due to the fact
that the Partnership incurred $7,380 and $31,624 during the quarters ended March
31, 2000 and 1999, respectively, in transaction costs relating to the general
partners retaining financial and legal advisors to assist them in evaluating and
negotiating the terminated merger with CNL American Properties Fund, Inc.
("APF"). On June 3, 1999, the general partners, on behalf of the Partnership,
and APF agreed that it would be in the best interests of the Partnership, and
APF that APF not attempt to acquire the Partnership in the acquisition.
Therefore, in June 1999, APF entered into a termination agreement with the
general partners of the Partnership. 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 XVIII, Ltd.
(Filed as Exhibit 3.2 to the Registrant's
Registration Statement on Form S-11, No.
33-90998-01, incorporated herein by reference.)
**3.2 Amended and Restated Agreement of Limited
Partnership of CNL Income Fund XVIII, Ltd.
(Included as Exhibit 4.2 to Form 10-K filed
with the Securities and Exchange Commission on
March 21, 1996, and incorporated herein by
reference.)
**4.1 Affidavit and Certificate of Limited
Partnership of CNL Income Fund XVIII, Ltd.
(Filed as Exhibit 3.2 to Registrant's
Registration Statement on Form S-11, No.
33-90998-01 and incorporated herein by
reference.)
**4.2 Amended and Restated Agreement of Limited
Partnership of CNL Income Fund XVIII, Ltd.
(Included as Exhibit 4.2 to Form 10-K filed
with the Securities and Exchange Commission on
March 21, 1996, and incorporated herein by
reference.)
**4.3 Form of Agreement between CNL Income Fund XVII,
Ltd. and MMS Escrow and Transfer Agency, Inc.
and between CNL Income Fund XVIII, Ltd. and MMS
Escrow and Transfer Agency, Inc. relating to
the Distribution Reinvestment Plans (Filed as
Exhibit 4.4 to the Registrant's Registration
Statement on Form S-11, No. 33-90998,
incorporated herein by reference.)
<PAGE>
**5.1 Opinion of Baker & Hostetler as to the legality
of the securities being registered by CNL
Income Fund XVIII, Ltd. (Filed as Exhibit 5.2
to Amendment No. Three to the Registrant's
Registration Statements on Form S-11, No.
33-90998, incorporated herein by reference.)
**8.1 Opinion of Baker & Hostetler regarding certain
material tax issues relating to CNL Income Fund
XVIII, Ltd. (Filed as Exhibit 8.1 to Amendment
No. Three to the Registrant's Registration
Statement on Form S-11, No. 33-90998,
incorporated herein by reference.)
**8.2 Opinion of Baker & Hostetler regarding certain
material issues relating to the Distribution
Reinvestment Plan of CNL Income Fund XVIII,
Ltd. (Filed as Exhibit 8.4 to Amendment No.
Three to the Registrant's Registration
Statement on Form S-11, No. 33-90998,
incorporated herein by reference.)
**8.3 Amended Opinion of Baker & Hostetler regarding
certain material issues relating to CNL Income
Fund XVIII, Ltd. (Filed as Exhibit 8.5 to
Post-Effective Amendment No. Four to the
Registrant's Registration Statement on Form
S-11, No. 33-90998, incorporated herein by
reference.)
**10.1 Management Agreement between CNL Income Fund
XVIII, Ltd. and CNL Fund Advisors, Inc.
(Included as Exhibit 10.1 to Form 10-K filed
with the Securities and Exchange Commission on
March 20, 1997, and incorporated herein by
reference.)
**10.2 Form of Joint Venture Agreement for Joint
Ventures with Unaffiliated Entities (Filed as
Exhibit 10.2 to the Registrant's Registration
Statement on Form S-11, No. 33-90998,
incorporated herein by reference.)
**10.3 Form of Joint Venture Agreement for Joint
Ventures with Affiliated Programs (Filed as
Exhibit 10.3 to the Registrant's Registration
Statement on Form S-11, No. 33-90998,
incorporated herein by reference.)
**10.4 Form of Development Agreement (Filed as Exhibit
10.5 to the Registrant's Registration Statement
on Form S-11, No. 33-90998, incorporated herein
by reference.)
**10.5 Form of Indemnification and Put Agreement
(Filed as Exhibit 10.6 to the Registrant's
Registration Statement on Form S-11, No.
33-90998, incorporated herein by reference.)
**10.6 Form of Unconditional Guarantee of Payment and
Performance (Filed as Exhibit 10.7 to the
Registrant's Registration Statement on Form
S-11, No. 33-90998, incorporated herein by
reference.)
**10.7 Form of Lease Agreement for Existing Restaurant
(Filed as Exhibit 10.8 to the Registrant's
Registration Statement on Form S-11, No.
33-90998, incorporated herein by reference.)
**10.8 Form of Lease Agreement for Restaurant to be
Constructed (Filed as Exhibit 10.9 to the
Registrant's Registration Statement on Form
S-11, No. 33-90998, incorporated herein by
reference.)
**10.9 Form of Premises Lease for Golden Corral
Restaurant (Filed as Exhibit 10.10 to the
Registrant's Registration Statement on Form
S-11, No. 33-90998, incorporated herein by
reference.)
**10.10 Form of Agreement between CNL Income Fund XVII,
Ltd. and MMS Escrow and Transfer Agency, Inc.
and between CNL Income Fund XVIII, Ltd. and MMS
Escrow and Transfer Agency, Inc. relating to
the Distribution Reinvestment Plans (Filed as
Exhibit 4.4 to the Registrant's Registration
Statement on Form S-11, No. 33-90998,
incorporated herein by reference.)
**10.11 Form of Cotenancy Agreement with Unaffiliated
Entity (Filed as Exhibit 10.12 to Amendment No.
One to the Registrant's Registration Statement
on Form S-11, No. 33-90998, incorporated herein
by reference.)
**10.12 Form of Cotenancy Agreement with Affiliated
Entity (Filed as Exhibit 10.13 to Amendment No.
One to the Registrant's Registration Statement
on Form S-11, No. 33-90998, incorporated herein
by reference.)
<PAGE>
**10.13 Form of Registered Investor Advisor Agreement
(Filed as Exhibit 10.14 to Amendment No. One to
the Registrant's Registration Statement on Form
S-11, No. 33-90998, incorporated herein by
reference.)
27 Financial Data Schedule (Filed herewith).
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
March 31, 2000.
<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 May, 2000.
CNL INCOME FUND XVIII, 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)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the balance
sheet of CNL Income Fund XVIII, 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 XVIII, 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> 1,986,864
<SECURITIES> 0
<RECEIVABLES> 5,367
<ALLOWANCES> 1,618
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 23,414,657
<DEPRECIATION> 996,485
<TOTAL-ASSETS> 30,776,382
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 29,886,446
<TOTAL-LIABILITY-AND-EQUITY> 30,776,382
<SALES> 0
<TOTAL-REVENUES> 760,391
<CGS> 0
<TOTAL-COSTS> 174,337
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 602,591
<INCOME-TAX> 0
<INCOME-CONTINUING> 602,591
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 602,591
<EPS-BASIC> 0
<EPS-DILUTED> 0
<FN>
<F1>Due to the nature of its industry, CNL Income Fund XVIII, Ltd. has an
unclassified balance sheet; therefore, no values are shown above for current
assets and current liabilities.</F1>
<F2>Includes $697,774 in restricted cash.</F2>
</FN>
</TABLE>
