Back to GetFilings.com



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, 2003
--------------------------------------

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
0-21558
---------------------------------------


CNL Income Fund XII, Ltd.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)


Florida 59-3078856
- ------------------------------------- --------------------------------
(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 _________

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act):Yes___ No X


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

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-7

Item 3. Quantitative and Qualitative Disclosures About
Market Risk 7

Item 4. Controls and Procedures 8

Part II

Other Information 9-10






CNL INCOME FUND XII, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS



March 31, December 31,
2003 2002
------------------ -------------------


ASSETS

Real estate properties with operating leases, net $ 23,562,098 $ 22,884,036
Net investment in direct financing leases 7,107,112 7,958,519
Investment in joint ventures 4,415,638 4,434,559
Cash and cash equivalents 1,091,836 1,263,592
Certificates of deposit 546,973 541,162
Receivables, less allowance for doubtful accounts
of $77,483 and $49,248, respectively 359 460
Due from related parties 3,719 --
Accrued rental income, less allowance for doubtful
accounts of $9,061 in 2003 and 2002 2,691,084 2,675,582
Other assets 59,194 69,794
------------------ -------------------
$ 39,478,013 $ 39,827,704
================== ===================

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable $ 44,988 $ 7,127
Real estate taxes payable 26,494 18,488
Distributions payable 956,252 1,068,752
Due to related parties 21,337 20,984
Rents paid in advance and deposits 134,701 224,979
------------------ -------------------
Total liabilities 1,183,772 1,340,330

Partners' capital 38,294,241 38,487,374
------------------ -------------------
$ 39,478,013 $ 39,827,704
================== ===================


See accompanying notes to condensed financial statements.




CNL INCOME FUND XII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME



Quarter Ended
March 31,
2003 2002


--------------- ---------------
Revenues:
Rental income from operating leases $ 719,796 $ 683,717
Earned income from direct financing leases 209,751 223,655
Contingent rental income 5,164 6,318
Interest and other income 7,914 3,621
--------------- ---------------
942,625 917,311
--------------- ---------------

Expenses:
General operating and administrative 85,353 89,741
Property expenses 18,214 6,819
Management fees to related parties 10,808 10,426
State and other taxes 42,995 49,317
Depreciation and amortization 124,410 108,392
--------------- ---------------
281,780 264,695
--------------- ---------------

Income Before Equity in Earnings of Joint Ventures 660,845 652,616

Equity in Earnings of Joint Ventures 102,274 101,936
--------------- --------------

Income from Continuing Operations 763,119 754,552

Discontinued Operations:
Income from discontinued operations -- 37,040
--------------- --------------
Net Income $ 763,119 $ 791,592
=============== ==============

Income Per Limited Partner Unit
Continuing operations $ 0.17 $ 0.17
Discontinued operations -- 0.01
--------------- ---------------
$ 0.17 $ 0.18
=============== ===============

Weighted Average Number of Limited
Partner Units Outstanding 4,500,000 4,500,000
=============== ===============



See accompanying notes to condensed financial statements.



CNL INCOME FUND XII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL



Quarter Ended Year Ended
March 31, December 31,
2003 2002
------------------- ------------------


General partners:
Beginning balance $ 259,109 $ 259,109
Net income -- --
------------------- ------------------
259,109 259,109
------------------- ------------------

Limited partners:
Beginning balance 38,228,265 38,390,217
Net income 763,119 3,775,556
Distributions ($0.21 and $0.88 per
limited partner unit, respectively) (956,252 ) (3,937,508 )
------------------- ------------------
38,035,132 38,228,265
------------------- ------------------
Total partners' capital $ 38,294,241 $ 38,487,374
=================== ==================

See accompanying notes to condensed financial statements.




CNL INCOME FUND XII, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS



Quarter Ended
March 31,
2003 2002
---------------- ---------------


Increase (Decrease) in Cash and Cash Equivalents

Net Cash Provided by Operating Activities $ 896,996 $ 869,731
---------------- ---------------

Cash Flows from Financing Activities:
Distributions to limited partners (1,068,752 ) (956,252 )
---------------- ---------------
Net cash used in financing activities (1,068,752 ) (956,252 )
---------------- ---------------

Net Decrease in Cash and Cash Equivalents (171,756 ) (86,521 )

Cash and Cash Equivalents at Beginning of Quarter 1,263,592 1,281,855
---------------- ---------------
Cash and Cash Equivalents at End of Quarter $ 1,091,836 $ 1,195,334
================ ===============

Supplemental Schedule of Non-Cash Financing
Activities:

Distributions declared and unpaid at end of
quarter $ 956,252 $ 956,252
================ ===============



See accompanying notes to condensed financial statements.







CNL INCOME FUND XII, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters Ended March 31, 2003 and 2002


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 the general partners, necessary to a fair
statement of the results for the interim periods presented. Operating
results for the quarter ended March 31, 2003, may not be indicative of
the results that may be expected for the year ending December 31, 2003.
Amounts as of December 31, 2002, 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 XII, Ltd. (the "Partnership") for the year ended December
31, 2002.

In January 2003, FASB issued FASB Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities" to expand upon and
strengthen existing accounting guidance that addresses when a company
should include the assets, liabilities and activities of another entity
in its financial statements. To improve financial reporting by
companies involved with variable interest entities (more commonly
referred to as special-purpose entities or off-balance sheet
structures), FIN 46 requires that a variable interest entity be
consolidated by a company if that company is subject to a majority risk
of loss from the variable interest entity's activities or entitled to
receive a majority of the entity's residual returns or both. Prior to
FIN 46, a company generally included another entity in its consolidated
financial statements only if it controlled the entity through voting
interests. Consolidation of variable interest entities will provide
more complete information about the resources, obligations, risks and
opportunities of the consolidated company. The consolidation
requirements of FIN 46 apply immediately to variable interest entities
created after January 31, 2003, and to older entities, in the first
fiscal year or interim period beginning after June 15, 2003. The
general partners believe adoption of this standard may result in either
consolidation or additional disclosure requirements with respect to the
Partnership's unconsolidated joint ventures or properties held with
affiliates of the general partners as tenants-in-common, which are
currently accounted for under the equity method. However, such
consolidation is not expected to significantly impact the Partnership's
results of operations.

2. Reclassification:

Certain items in the prior year's financial statements have been
reclassified to conform to 2003 presentation. These reclassifications
had no effect on total partners' capital or net income.




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

CNL Income Fund XII, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on August 20, 1991, to acquire for cash, either
directly or through joint venture and tenancy in common 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 generally triple-net leases, with the lessees
responsible for all repairs and maintenance, property taxes, insurance and
utilities. As of March 31, 2003 and 2002, the Partnership owned 41 Properties
directly and owned seven Properties indirectly through joint venture or tenancy
in common arrangements.

Capital Resources

For the quarters ended March 31, 2003 and 2002, the Partnership
generated cash from operating activities of $896,996 and $869,731, respectively.
The increase in cash from operating activities for the quarter ended March 31,
2003, was primarily a result of changes in the Partnership's working capital.

At March 31, 2003, the Partnership had $1,091,836 in cash and cash
equivalents, as compared to $1,263,592 at December 31, 2002. The decrease in
cash and cash equivalents at March 31, 2003 was primarily the result of the
Partnership making a special distribution to the limited partners in 2003 which
was declared at December 31, 2002 of $112,500 of cumulative excess operating
reserves. The funds remaining at March 31, 2003, after payment of distributions
and other liabilities, will be used to meet the Partnership's working capital
needs.

Short-Term Liquidity

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 Partnership's short-term liquidity requirements consist primarily
of the operating expenses of the Partnership.

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 funds are available for distribution. Based
on current cash from operations the Partnership declared distributions to the
limited partners of $956,252 for each of the quarters ended March 31, 2003 and
2002. This represents distributions for each applicable quarter of $0.21 per
unit. No distributions were made to the general partners for the quarters ended
March 31, 2003 and 2002. No amounts distributed to the limited partners for the
quarters ended March 31, 2003 and 2002 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, including distributions payable, were $1,183,772 at
March 31, 2003, as compared to $1,340,330 at December 31, 2002, primarily as a
result of the payment of a special distribution to the limited partners during
the quarter ended March 31, 2003, that was accrued at December 31, 2002. The
special distribution of $112,500 represented cumulative excess operating
reserves. The decrease in liabilities during the quarter ended March 31, 2003
was also due to a decrease in rents paid in advance and deposits. The decrease
was partially offset by an increase in accounts payable and real estate taxes
payable. 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

Total rental revenues were $929,547 during the quarter ended March 31,
2003, as compared to $907,372 during the same period of 2002. Rental revenues
increased during 2003 because the Partnership acquired a Property in San
Antonio, Texas in June 2002 and a Property in Clive, Iowa in September 2002. The
increase in rental revenues during 2003 was partially offset because the
Partnership sold two properties during 2002. In addition, Castles in the Sky,
LLC, a tenant of the Partnership, experienced financial difficulties and ceased
making rental payments to the Partnership. As a result, in October 2002, the
Partnership stopped recording rental revenue relating to this Property located
in Tempe, Arizona. The lost revenues from this Property could have an adverse
effect on the results of operations of the Partnership if the Partnership is not
able to sell or re-lease the Property in a timely manner. The Partnership is
currently seeking a replacement tenant or purchaser for the Property.

The Partnership also earned $102,274 attributable to net income earned
by joint ventures during the quarter ended March 31, 2003, as compared to
$101,936 during the same period of 2002.

Operating expenses, including depreciation and amortization expense,
were $281,780 during the quarter ended March 31, 2003, as compared to $264,695
during the same period of 2002. Operating expenses increased during the quarter
ended March 31, 2003 because the Partnership incurred property related expenses
such as legal fees, repairs and maintenance and real estate taxes for the
Property in Tempe, Arizona. The tenant of the Property experienced financial
difficulties and ceased making rental payments to the Partnership. The
Partnership is currently seeking a replacement tenant or purchaser for the
Property. In addition, the increase in operating expenses during 2003 was
partially attributable to an increase in depreciation expense as a result of the
acquisition of the Properties in San Antonio, Texas and Clive, Iowa, as
described above.

During the year ended December 31, 2002, the Partnership identified and
sold two Properties that were classified as Discontinued Operations in the
accompanying financial statements. The Partnership recognized net rental income
(rental revenues less Property related expenses) of $37,040 relating to these
two Properties during the quarter ended March 31, 2002. The Partnership sold the
Properties in Arlington, Texas and Valdosta, Georgia subsequent to March 31,
2002.

In January 2003, FASB issued FASB Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities" to expand upon and strengthen
existing accounting guidance that addresses when a company should include the
assets, liabilities and activities of another entity in its financial
statements. To improve financial reporting by companies involved with variable
interest entities (more commonly referred to as special-purpose entities or
off-balance sheet structures), FIN 46 requires that a variable interest entity
be consolidated by a company if that company is subject to a majority risk of
loss from the variable interest entity's activities or entitled to receive a
majority of the entity's residual returns or both. Prior to FIN 46, a company
generally included another entity in its consolidated financial statements only
if it controlled the entity through voting interests. Consolidation of variable
interest entities will provide more complete information about the resources,
obligations, risks and opportunities of the consolidated company. The
consolidation requirements of FIN 46 apply immediately to variable interest
entities created after January 31, 2003, and to older entities, in the first
fiscal year or interim period beginning after June 15, 2003. The general
partners believe adoption of this standard may result in either consolidation or
additional disclosure requirements with respect to the Partnership's
unconsolidated joint ventures or properties held with affiliates of the general
partners as tenants-in-common, which are currently accounted for under the
equity method. However, such consolidation is not expected to significantly
impact the Partnership's results of operations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Inapplicable.




ITEM 4. CONTROLS AND PROCEDURES

The general partners maintain a set of disclosure controls and
procedures designed to ensure that information required to be disclosed in the
Partnership's filings under the Securities Exchange Act of 1934 is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms. The principal executive
and financial officers of the corporate general partner have evaluated the
Partnership's disclosure controls and procedures within 90 days prior to the
filing of this Quarterly Report on Form 10-Q and have determined that such
disclosure controls and procedures are effective.

Subsequent to the above evaluation, there were no significant changes
in internal controls or other factors that could significantly affect these
controls, including any corrective actions with regard to significant
deficiencies and material weaknesses.




PART II. OTHER INFORMATION


Item 1. Legal Proceedings. Inapplicable.

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 XII, Ltd. (Included as Exhibit
3.2 to Registration Statement No. 33-43278-01 on
Form S-11 and incorporated herein by reference.)

4.1 Affidavit and Certificate of Limited Partnership
of CNL Income Fund XII, Ltd. (Included as Exhibit
3.2 to Registration Statement No. 33-43278-01 on
Form S-11 and incorporated herein by reference.)

4.2 Amended and Restated Agreement of Limited
Partnership of CNL Income Fund XII, Ltd.
(Included as Exhibit 4.2 to Form 10-K filed with
the Securities and Exchange Commission on April
15, 1993, and incorporated herein by reference.)

10.1 Management Agreement between CNL Income Fund XII,
Ltd. and CNL Investment Company (Included as
Exhibit 10.1 to Form 10-K filed with the
Securities and Exchange Commission on April 15,
1993, 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 31, 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.)

10.4 Assignment of Management Agreement from CNL
Advisors, Inc. to CNL APF Partners, LP. (Included
as Exhibit 10.4 to Form 10-Q filed with the
Securities and Exchange Commission on August 13,
2001, and incorporated herein by reference.)

10.5 Assignment of Management Agreement from CNL APF
Partners, LP to CNL Restaurants XVIII, Inc.
(Included as Exhibit 10.5 to Form 10-Q filed with
the Securities and Exchange Commission on August
13, 2002, and incorporated herein by reference.)



99.1 Certification of Chief Executive Officer of
Corporate General Partner Pursuant to 18 U.S.C.
Section 1350 as Adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002. (Filed
herewith.)

99.2 Certification of Chief Financial Officer of
Corporate General Partner Pursuant to 18 U.S.C.
Section 1350 as Adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002. (Filed
herewith.)

(b) Reports on Form 8-K

No reports on Form 8-K were filed during the
quarter ended March 31, 2003.



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 9th day of May, 2003.


CNL INCOME FUND XII, 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)



CERTIFICATION OF CHIEF EXECUTIVE OFFICER
OF CORPORATE GENERAL PARTNER

PURSUANT TO RULE 13a-14 AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


I, James M. Seneff, Jr., the Chief Executive Officer of CNL Realty
Corporation, the corporate general partner of CNL Income Fund XII, Ltd. (the
"registrant"), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the
registrant;

2. Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this quarterly report;

4. The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
for the registrant and we have:

a. designed such disclosure controls and procedures to
ensure that material information relating to the
registrant, including its consolidated subsidiaries,
is made known to us by others within those entities,
particularly during the period in which this
quarterly report is being prepared;

b. evaluated the effectiveness of the registrant's
disclosure controls and procedures as of a date
within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c. presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls
and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):

a. all significant deficiencies in the design or
operation of internal controls which could adversely
affect the registrant's ability to record, process,
summarize and report financial data and have
identified for the registrant's auditors any material
weaknesses in internal controls; and

b. any fraud, whether or not material, that involves
management or other employees who have a significant
role in the registrant's internal controls; and

6. The registrant's other certifying officer and I have indicated
in this quarterly report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.

Date: May 9, 2003


/s/ James M. Seneff, Jr.
James M. Seneff, Jr.
Chief Executive Officer


CERTIFICATION OF CHIEF FINANCIAL OFFICER
OF CORPORATE GENERAL PARTNER

PURSUANT TO RULE 13a-14 AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert A. Bourne, President and Treasurer of CNL Realty Corporation,
the corporate general partner of CNL Income Fund XII, Ltd. (the "registrant")
certify that:

1. I have reviewed this quarterly report on Form 10-Q of the
registrant;

2. Based on my knowledge, this quarterly report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this quarterly report;

4. The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
for the registrant and we have:

a. designed such disclosure controls and procedures to
ensure that material information relating to the
registrant, including its consolidated subsidiaries,
is made known to us by others within those entities,
particularly during the period in which this
quarterly report is being prepared;

b. evaluated the effectiveness of the registrant's
disclosure controls and procedures as of a date
within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c. presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls
and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):

a. all significant deficiencies in the design or
operation of internal controls which could adversely
affect the registrant's ability to record, process,
summarize and report financial data and have
identified for the registrant's auditors any material
weaknesses in internal controls; and

b. any fraud, whether or not material, that involves
management or other employees who have a significant
role in the registrant's internal controls; and

6. The registrant's other certifying officer and I have indicated
in this quarterly report whether or not there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.

Date: May 9, 2003


/s/ Robert A. Bourne
- --------------------
Robert A. Bourne
President and Treasurer


EXHIBIT INDEX


Exhibit Number

(c) Exhibits

3.1 Affidavit and Certificate of Limited Partnership of CNL
Income Fund XII, Ltd. (Included as Exhibit 3.2 to
Registration Statement No. 33-43278-01 on Form S-11 and
incorporated herein by reference.)

4.1 Affidavit and Certificate of Limited Partnership of CNL
Income Fund XII, Ltd. (Included as Exhibit 3.2 to
Registration Statement No. 33-43278-01 on Form S-11 and
incorporated herein by reference.)

4.2 Amended and Restated Agreement of Limited Partnership of CNL
Income Fund XII, Ltd. (Included as Exhibit 4.2 to Form 10-K
filed with the Securities and Exchange Commission on April
15, 1993, and incorporated herein by reference.)

10.1 Management Agreement between CNL Income Fund XII, Ltd. and
CNL Investment Company (Included as Exhibit 10.1 to Form 10-K
filed with the Securities and Exchange Commission on April
15, 1993, 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 31, 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.)

10.4 Assignment of Management Agreement from CNL Advisors, Inc. to
CNL APF Partners, LP. (Included as Exhibit 10.4 to Form 10-Q
filed with the Securities and Exchange Commission on August
13, 2001, and incorporated herein by reference.)

10.5 Assignment of Management Agreement from CNL APF Partners, LP
to CNL Restaurants XVIII, Inc. (Included as Exhibit 10.5 to
Form 10-Q filed with the Securities and Exchange Commission
on August 13, 2002, and incorporated herein by reference.)

99.1 Certification of Chief Executive Officer of Corporate General
Partner Pursuant to 18 U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(Filed herewith.)

99.2 Certification of Chief Financial Officer of Corporate General
Partner Pursuant to 18 U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(Filed herewith.)



EXHIBIT 99.1


EXHIBIT 99.2