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 June 30, 2002
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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
0-23974
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CNL Income Fund XIV, Ltd.
- -----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-3143096
- ------------------------------------ ---------------------------
(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 _________
CONTENTS
Part I Page
----
Item 1. Financial Statements:
Condensed Balance Sheets 1
Condensed Statements of Income 2
Condensed Statements of Partners' Capital 3
Condensed Statements of Cash Flows 4
Notes to Condensed Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-10
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 10
Part II
Other Information 11
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED BALANCE SHEETS
June 30, December 31,
2002 2001
------------------- -------------------
ASSETS
Land and buildings on operating leases, net $ 23,253,331 $ 22,458,629
Net investment in direct financing leases 5,903,931 6,315,829
Real estate held for sale 1,189,933 1,330,527
Investment in joint ventures 4,567,507 4,639,435
Cash and cash equivalents 756,010 1,039,216
Receivables, less allowance for doubtful accounts
of $77,256 in 2001 7,893 80,044
Due from related parties -- 7,045
Accrued rental income, less allowance for doubtful
accounts of $48,635 in 2002 and 2001 2,424,493 2,335,450
Other assets 62,857 47,734
------------------- -------------------
$ 38,165,955 $ 38,253,909
=================== ===================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 5,730 $ 21,657
Real estate taxes payable 28,434 28,596
Distributions payable 928,130 928,130
Due to related parties 22,168 14,154
Rents paid in advance and deposits 38,281 104,907
Deferred rental income 24,856 51,443
------------------- -------------------
Total liabilities 1,047,599 1,148,887
Commitment (Note 6)
Partners' capital 37,118,356 37,105,022
------------------- -------------------
$ 38,165,955 $ 38,253,909
=================== ===================
See accompanying notes to condensed financial statements.
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF INCOME
Quarter Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
--------------- -------------- ------------- ---------------
Revenues:
Rental income from operating leases $ 694,940 $ 666,406 $1,358,217 $ 1,321,758
Earned income from direct financing leases 180,410 178,978 337,632 359,557
Contingent rental income 10,965 4,501 16,248 13,373
Interest and other income 2,911 11,257 7,006 21,775
--------------- -------------- ------------- ---------------
889,226 861,142 1,719,103 1,716,463
--------------- -------------- ------------- ---------------
Expenses:
General operating and administrative 75,244 90,985 163,872 243,670
Property expenses 19,388 33,437 39,531 47,591
Management fees to related party 8,968 8,767 19,207 19,338
State and other taxes 4,892 4,182 36,917 65,579
Depreciation and amortization 96,572 86,620 182,048 173,206
Provision for write-down of assets -- 526,947 -- 526,947
--------------- -------------- ------------- ---------------
205,064 750,938 441,575 1,076,331
--------------- -------------- ------------- ---------------
Income Before Gain on Sale of Assets and Equity
in Earnings of Joint Ventures 684,162 110,204 1,277,528 640,132
Gain on Sale of Assets -- -- 497,689 --
Equity in Earnings of Joint Ventures 101,524 175,560 166,944 266,569
--------------- -------------- ------------- ---------------
Income from Continuing Operations 785,686 285,764 1,942,161 906,701
--------------- -------------- ------------- ---------------
Discontinued Operations (Note 4):
Income from discontinued operations 19,349 19,231 50,878 42,554
Loss on disposal of discontinued operations, net (123,445 ) -- (123,445 ) --
--------------- -------------- ------------- ---------------
(104,096 ) 19,231 (72,567 ) 42,554
--------------- -------------- ------------- ---------------
Net Income $ 681,590 $ 304,995 $1,869,594 $ 949,255
=============== ============== ============= ===============
Net Income (Loss) Per Limited Partner Unit
Continuing operations $ 0.17 $ 0.06 $ 0.43 $ 0.20
Discontinued operations (0.02 ) 0.01 (0.01 ) 0.01
--------------- -------------- ------------- ---------------
$ 0.15 $ 0.07 $ 0.42 $ 0.21
=============== ============== ============= ===============
Weighted Average Number of Limited Partner
Units Outstanding 4,500,000 4,500,000 4,500,000 4,500,000
=============== ============== ============= ===============
See accompanying notes to condensed financial statements
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF PARTNERS' CAPITAL
Six Months Ended Year Ended
June 30, December 31,
2002 2001
-------------------- ------------------
General partners:
Beginning balance $ 209,255 $ 209,255
Net income -- --
-------------------- ------------------
209,255 209,255
-------------------- ------------------
Limited partners:
Beginning balance 36,895,767 38,104,189
Net income 1,869,594 2,504,098
Distributions ($0.41 and $0.83 per
limited partner unit, respectively) (1,856,260 ) (3,712,520 )
-------------------- ------------------
36,909,101 36,895,767
-------------------- ------------------
Total partners' capital $ 37,118,356 $ 37,105,022
==================== ==================
See accompanying notes to condensed financial statements.
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
2002 2001
---------------- ----------------
Increase (Decrease) in Cash and Cash Equivalents
Net Cash Provided by Operating Activities $ 1,712,909 $ 1,756,152
---------------- ----------------
Cash Flows from Investing Activities:
Proceeds from sale of assets 1,143,753 --
Additions to land and buildings on operating leases (1,283,608 ) --
Return of capital from joint venture -- 400,000
---------------- ----------------
Net cash provided by (used in)investing activities (139,855 ) 400,000
---------------- ----------------
Cash Flows from Financing Activities:
Distributions to limited partners (1,856,260 ) (1,856,260 )
---------------- ----------------
Net cash used in financing activities (1,856,260 ) (1,856,260 )
---------------- ----------------
Net Increase (Decrease) in Cash and Cash Equivalents (283,206 ) 299,892
Cash and Cash Equivalents at Beginning of Period 1,039,216 1,038,555
---------------- ----------------
Cash and Cash Equivalents at End of Period $ 756,010 $ 1,338,447
================ ================
Supplemental Schedule of Non-Cash Financing
Activities:
Distributions declared and unpaid at end of
period $ 928,130 $ 928,130
================ ================
See accompanying notes to condensed financial statements.
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Six Months Ended June 30, 2002 and 2001
1. Basis of Presentation:
The accompanying unaudited condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and note disclosures required by
generally accepted accounting principles. The financial statements
reflect all adjustments, consisting of normal recurring adjustments,
which are, in the opinion of management, necessary to a fair statement
of the results for the interim periods presented. Operating results for
the quarter and six months ended June 30, 2002, may not be indicative
of the results that may be expected for the year ending December 31,
2002. Amounts as of December 31, 2001, 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 XIV, Ltd. (the "Partnership") for the year ended December
31, 2001.
Effective January 1, 2002, the Partnership adopted Statement of
Financial Accounting Standards No. 144 "Accounting for the Impairment
or Disposal of Long-Lived Assets." This statement requires that a
long-lived asset be tested for recoverability whenever events or
changes in circumstances indicate that its carrying amount may not be
recoverable. The carrying amount of a long-lived asset is not
recoverable if it exceeds the sum of the undiscounted cash flows
expected to result from the use and eventual disposition of the asset.
The assessment is based on the carrying amount of the asset at the date
it is tested for recoverability. An impairment loss is recognized when
the carrying amount of a long-lived asset exceeds its fair value. If an
impairment is recognized, the adjusted carrying amount of a long-lived
asset is its new cost basis. The statement also requires that the
results of operations of a component of an entity that either has been
disposed of or is classified as held for sale be reported as a
discontinued operation if the disposal activity was initiated
subsequent to the adoption of the Standard.
2. Reclassification:
Certain items in the prior year's financial statements have been
reclassified to conform to 2002 presentation. These reclassifications
had no effect on total partners' capital or net income.
3. Land and Buildings on Operating Leases:
In February 2002, the Partnership sold its property in Las Vegas,
Nevada to an unrelated third party for $1,200,000 and received net
sales proceeds of approximately $1,143,800, resulting in a gain of
approximately $497,700. As of December 31, 2001, this property had been
identified for sale. In March 2002, the Partnership reinvested these
net sales proceeds in a property in San Antonio, Texas at an
approximate cost of $1,262,200. The Partnership acquired this property
from CNL Funding 2001-A, LP, an affiliate of the general partners (see
Note 5).
4. Discontinued Operations:
In February 2002, the Partnership entered into two separate agreements,
each with an unrelated third party, to sell the Golden Corral property
in Greeley, Colorado and the Long John Silver's property in Laurens,
South Carolina (see Note 6). As a result, the Partnership reclassified
the assets from land and building on operating leases to real estate
held for sale. The reclassified assets were recorded at the lower of
their carrying amount or fair value, less cost to sell. In addition,
the Partnership stopped recording depreciation once the properties were
identified for sale. In connection with the anticipated sale of the
property in
CNL INCOME FUND XIV, LTD.
(A Florida Limited Partnership)
NOTES TO CONDENSED FINANCIAL STATEMENTS
Quarters and Six Months Ended June 30, 2002 and 2001
4. Discontinued Operations - Continued:
Laurens, South Carolina, the Partnership recorded a loss on disposal of
assets of $123,445 during the quarter and six months ended June 30,
2002. The financial results for these properties are reflected as
Discontinued Operations in the accompanying financial statements.
The operating results of the discontinued operations are as follows:
Quarter Ended June 30, Six Months Ended June 30,
2002 2001 2002 2001
----------- ------------ ------------ -------------
Rental revenues $ 31,842 $ 31,842 $ 75,043 $ 67,158
Expenses (12,493 ) (12,611 ) (24,165 ) (24,604 )
Loss on disposal of assets (123,445 ) -- (123,445 ) --
----------- ------------ ------------ -------------
Income (loss) from discontinued operations $(104,096 ) $ 19,231 $ (72,567 ) $ 42,554
=========== ============ ============ =============
5. Related Party Transactions:
In March 2002, the Partnership acquired a property in San Antonio,
Texas from CNL Funding 2001-A, LP, for a purchase price of
approximately $1,262,200 (see Note 3). CNL Funding 2001-A, LP is an
affiliate of the general partners. CNL Funding 2001-A, LP had purchased
and temporarily held title to the property in order to facilitate the
acquisition of the property by the Partnership. The purchase price paid
by the Partnership represented the costs incurred by CNL Funding
2001-A, LP to acquire the property, including closing costs.
6. Commitments:
During 2002, the Partnership entered into two separate agreements, each
with an unrelated third party, to sell the Golden Corral property in
Greeley, Colorado and the Long John Silver's property in Laurens, South
Carolina. (see Notes 4 and 7).
7. Subsequent Event:
On August 5, 2002, the Partnership sold its property in Laurens, South
Carolina for $167,200 and received net sales proceeds of approximately
$155,200, resulting in a loss on disposal of assets of $123,445, which
the Partnership recorded at June 30, 2002.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
CNL Income Fund XIV, Ltd. (the "Partnership") is a Florida limited
partnership that was organized on September 25, 1992, 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 (the "Properties"), which are leased primarily to operators of
national and regional fast-food and family-style restaurant chains. The leases
generally are triple-net leases, with the lessee responsible for all repairs and
maintenance, property taxes, insurance and utilities. As of June 30, 2001, the
Partnership owned 44 Properties directly and 11 Properties indirectly through
joint venture or tenancy in common arrangements. As of June 30, 2002, the
Partnership owned 43 Properties directly and 12 Properties indirectly through
joint venture or tenancy in common arrangements.
Capital Resources
The Partnership's primary source of capital for the six months ended
June 30, 2002 and 2001 was cash from operating activities (which includes cash
received from tenants, distributions from joint ventures, and interest and other
income received, less cash paid for expenses). Cash from operating activities
was $1,712,909 and $1,756,152 for the six months ended June 30, 2002 and 2001,
respectively. The decrease in cash from operating activities for the six months
ended June 30, 2002, as compared to the same period of 2001, was primarily a
result of changes in income and expenses, as described in "Results of
Operations."
Other sources and uses of capital included the following during the six
months ended June 30, 2002.
In February 2002, the Partnership sold its Property in Las Vegas,
Nevada to an unrelated third party for $1,200,000 and received net sales
proceeds of approximately $1,143,800, resulting in a gain of approximately
$497,700. In March 2002, the Partnership reinvested these net sales proceeds in
a Property in San Antonio, Texas at an approximate cost of $1,262,200. The
Partnership acquired this Property from CNL Funding 2001-A, LP, a Delaware
limited partnership and an affiliate of the general partners. CNL Funding
2001-A, LP had purchased and temporarily held title to the Property in order to
facilitate the acquisition of the Property by the Partnership. The purchase
price paid by the Partnership represented the costs incurred by CNL Funding
2001-A, LP to acquire the Property, including closing costs. The transaction, or
a portion thereof, relating to the sale of the Property in Las Vegas, Nevada,
and the reinvestment of the net sales proceeds, was structured to qualify as a
like-kind exchange transaction for federal income tax purposes. The Partnership
anticipates its distributions will be sufficient to enable the limited partners
to pay federal and state income taxes, if any (at a level reasonably assumed by
the general partners) resulting from this transaction.
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, money market accounts and
certificates of deposit with less than a 90-day maturity date, pending the
Partnership's use of such funds to pay Partnership expenses or to make
distributions to the partners. At June 30, 2002, the Partnership had $756,010
invested in such short-term investments, as compared to $1,039,216 at December
31, 2001. The funds remaining at June 30, 2002 will be used to pay distributions
and other liabilities of the Partnership.
On August 5, 2002, the Partnership sold its Property in Laurens, South
Carolina for $167,200 and received net sales proceeds of approximately $155,200,
resulting in a loss on disposal of assets of $123,445, which the Partnership
recorded at June 30, 2002. The Partnership intends to reinvest these proceeds in
an additional Property.
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 current and anticipated future cash from operations and, for the six
months ended June 30, 2002, a portion of the 2001 return of capital from
Wood-Ridge Real Estate Joint Venture, the Partnership declared distributions to
the limited partners of $1,856,260 for each of the six months ended June 30,
2002 and 2001, ($928,130 for each of the quarters ended June 30, 2002 and 2001.)
This represents distributions for each applicable six months of $0.41 per unit
($0.21 per unit for each applicable quarter.) No distributions were made to the
general partners for the quarters and six months ended June 30, 2002 and 2001.
No amounts distributed to the limited partners for the six months ended June 30,
2002 and 2001 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 contribution. 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 $1,047,599 at June 30, 2002, as compared to $1,148,887 at December 31,
2001. The decrease in liabilities at June 30, 2002 was primarily due to a
decrease in rents paid in advance and deferred rental income at June 30, 2002,
as compared to December 31, 2001. Total liabilities at June 30, 2002, to the
extent they exceed cash and cash equivalents at June 30, 2002, will be paid from
future cash from operations, and in the event the general partners elect to make
additional loans or contributions, from general partners' loans or
contributions.
During the six months ended June 30, 2002, the Partnership entered into
two separate agreements, each with an unrelated third party, to sell the Golden
Corral Property in Greeley, Colorado and the Long John Silver's Property in
Laurens, South Carolina. As a result, the Partnership reclassified these assets
to real estate held for sale. On August 5, 2002, the Partnership sold the
Property in Laurens, South Carolina. As of August 5, 2002, the sale for the
Greeley, Colorado Property had not occurred.
Long Term Liquidity
The Partnership has no long-term debt or other long-term liquidity
requirements.
Results of Operations
Total rental revenues were $1,695,849 for the six months ended June 30,
2002, as compared to $1,681,315 for the same period of 2001, of which $875,350
and $845,384 were earned during the second quarter of 2002 and 2001,
respectively. The increase in rental revenues during the quarter and six months
ended June 30, 2002, as compared to the same periods of 2001, was partially due
to the fact that in March 2002, the Partnership reinvested the sales proceeds
from the sale of the Property in Las Vegas, Nevada, in a Property in San
Antonio, Texas, as described above in "Capital Resources." The tenant of the Las
Vegas, Nevada Property ceased restaurant operations and vacated the Property in
2001.
Revenues remained at reduced amounts during the quarters and six months
ended June 30, 2002 and 2001, due to the fact that prior to 2001, Elias Brothers
Restaurants, Inc., which leased one Property with the Partnership, filed for
bankruptcy and rejected its lease. As a result, the Partnership stopped
recording rental revenue relating to this Property. The Partnership will not
recognize any rental and earned income from this Property until the Property is
re-leased or sold and the proceeds are reinvested in an additional Property. The
general partners are currently seeking a replacement tenant for this Property.
The lost revenues resulting from the vacant Property will have an adverse effect
on the results of operations of the Partnership, if the Partnership is not able
to re-lease the Property in a timely manner.
During the six months ended June 30, 2002 and 2001, the Partnership
earned $166,944 and $266,569, respectively, attributable to net income earned by
joint ventures, of which $101,524 and $175,560 was earned during the quarters
ended June 30, 2002 and 2001, respectively. The decrease in net income earned by
joint ventures during the six months ended June 30, 2002, as compared to the
same period of 2001, was partially due to the fact that the tenant of the
Property owned by Duluth Joint Venture, in which the Partnership owns a 44%
interest, experienced financial difficulties and ceased making rental payments
and the joint venture recognized these amounts as rental revenues. As a result,
Duluth Joint Venture stopped recording rental revenues during the quarter ended
March 31, 2002. During the second quarter of 2002, the tenant began making
rental payments to the joint venture. In addition, the decrease in net income
earned by joint ventures during the quarter and six months ended June 30, 2002
was partially due to the fact that in May 2001, Wood-Ridge Real Estate Joint
Venture, in which the Partnership owns a 50% interest, sold its Property in
Paris, Texas to the tenant, in accordance with the purchase option under the
lease agreement for $800,000. This resulted in a loss to the joint venture of
approximately $84,500. In addition, in connection with the sale of its Property
in Paris, Texas, Wood-Ridge Real Estate Joint Venture received $200,000 in
consideration for the joint venture releasing the tenant from its obligation
under the lease. During 2001, the joint venture distributed the net sales
proceeds received from the sale as a return of capital to the Partnership and
the other joint venture partner. The Partnership used this return of capital to
pay liabilities of the Partnership, and make quarterly distributions.
Operating expenses, including depreciation and amortization expense and
provision for write-down of assets were $441,575 and $1,076,331 for the six
months ended June 30, 2002 and 2001, respectively, of which $205,064 and
$750,938 was incurred during the quarters ended June 30, 2002 and 2001,
respectively. Operating expenses were higher during the quarter and six months
ended June 30, 2001, as compared to the same periods of 2002, due to the fact
that during the quarter and six months ended June 30, 2001, the Partnership
recorded provisions for write-down of assets of $526,947 relating to the vacant
Properties in Akron, Ohio and Las Vegas, Nevada. In February 2002, the
Partnership sold the Property in Las Vegas, Nevada, as described above. The
decrease in operating expenses during the six months ended June 30, 2002, as
compared to the same period of 2001, was also partially attributable to a
decrease in state tax expense and a decrease in the costs incurred for
administrative expenses for servicing the Partnership and its Properties. In
addition, during the quarters and six months ended June 30, 2002 and 2001, the
Partnership incurred certain Property related expenses, such as legal fees, real
estate taxes, insurance and maintenance relating to the Property in Akron, Ohio,
whose lease was rejected by its tenant and which remains vacant, as described
above. The Partnership will continue to incur these expenses, relating to this
vacant Property until a new tenant is located. The Partnership is currently
seeking a replacement tenant for this Property.
Effective January 1, 2002, the Partnership adopted Statement of
Financial Accounting Standards No. 144 "Accounting for the Impairment or
Disposal of Long-Lived Assets." This statement requires that a long-lived asset
be tested for recoverability whenever events or changes in circumstances
indicate that its carrying amount may not be recoverable. The carrying amount of
a long-lived asset is not recoverable if it exceeds the sum of the undiscounted
cash flows expected to result from the use and eventual disposition of the
asset. The assessment is based on the carrying amount of the asset at the date
it is tested for recoverability. An impairment loss is recognized when the
carrying amount of a long-lived asset exceeds its fair value. If an impairment
is recognized, the adjusted carrying amount of a long-lived asset is its new
cost basis. The statement also requires that the results of operations of a
component of an entity that either has been disposed of or is classified as held
for sale be reported as a discontinued operation if the disposal activity was
initiated subsequent to the adoption of the Standard.
During 2002, the Partnership entered into two separate agreements, each
with an unrelated third party, to sell the Golden Corral Property in Greeley,
Colorado and the Long John Silver's Property in Laurens, South Carolina. The
Partnership expects to use the proceeds from the sale to reinvest in income
producing Properties. In accordance with Statement of Financial Accounting
Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets," the Partnership reclassified these assets from land and building on
operating leases to real estate held for sale. The Partnership recorded the
reclassified assets at the lower of their carrying amount or fair value, less
cost to sell. In addition, during the six months ended June 30, 2002, the
Partnership stopped recording depreciation upon placing the Properties up for
sale. On August 5, 2002, the Partnership sold its Property in Laurens, South
Carolina for $167,200 and received net sales proceeds of approximately $155,200.
In connection with the anticipated sale of the Property in Laurens, South
Carolina, the Partnership recorded a loss on disposal of assets of $123,445
during the quarter and six months ended June 30, 2002. The Partnership
recognized net rental income (rental revenues less Property related expenses) of
$50,878 and $42,554 during the six months ended June 30, 2002 and 2001,
respectively, of which $19,349 and $19,231 was recognized during the quarters
ended June 30, 2002 and 2001, respectively. The Partnership intends to reinvest
these proceeds in an additional Property. These amounts were reported as
Discontinued Operations in the financial statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
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 XIV, Ltd. (Included as Exhibit 3.2
to Registration Statement No. 33-53672-01 on Form
S-11 and incorporated herein by reference.)
4.1 Affidavit and Certificate of Limited Partnership of
CNL Income Fund XIV, Ltd. (Included as Exhibit 3.2
to Registration Statement No. 33-53672-01 on Form
S-11 and incorporated herein by reference.)
4.2 Amended and Restated Agreement of Limited
Partnership of CNL Income Fund XIV, Ltd. (Included
as Exhibit 4.2 to Form 10-K filed with the
Securities and Exchange Commission on April 13,
1994, incorporated herein by reference.)
10.1 Management Agreement between CNL Income Fund XIV,
Ltd. and CNL Investment Company (Included as Exhibit
10.1 to Form 10-K filed with the Securities and
Exchange Commission on April 13, 1994, 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.)
10.4 Assignment of Management Agreement from CNL Fund
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. (Filed
herewith.)
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
ended June 30, 2002.
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 6th day of August, 2002.
CNL INCOME FUND XIV, 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 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, James M. Seneff, Jr., the Chief Executive Officer of CNL Realty
Corporation, the corporate general partner of CNL Income Fund XIV, Ltd. (the
"Partnership"), has executed this certification in connection with the filing
with the Securities and Exchange Commission of the Partnership's Quarterly
Report on Form 10-Q for the period ending June 30, 2002 (the "Report"). The
undersigned hereby certifies that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Partnership.
Date: August 6, 2002 /s/ James M. Seneff, Jr.
--------------------- ----------------------------------
Name: James M. Seneff, Jr.
Title: Chief Executive Officer
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
The undersigned, Robert A. Bourne, the President and Treasurer of CNL Realty
Corporation, the corporate general partner of CNL Income Fund XIV, Ltd. (the
"Partnership"), has executed this certification in connection with the filing
with the Securities and Exchange Commission of the Partnership's Quarterly
Report on Form 10-Q for the period ending June 30, 2002 (the "Report"). The
undersigned hereby certifies that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Partnership.
Date: August 6, 2002 /s/ Robert A. Bourne
---------------------- -----------------------------
Name: Robert A. Bourne
Title: President and Treasurer
EXHIBIT INDEX
Exhibit Number
3.1 Affidavit and Certificate of Limited Partnership of CNL
Income Fund XIV, Ltd. (Included as Exhibit 3.2 to
Registration Statement No. 33-53672-01 on Form S-11 and
incorporated herein by reference.)
4.1 Affidavit and Certificate of Limited Partnership of CNL
Income Fund XIV, Ltd. (Included as Exhibit 3.2 to
Registration Statement No. 33-53672-01 on Form S-11 and
incorporated herein by reference.)
4.2 Amended and Restated Agreement of Limited Partnership of
CNL Income Fund XIV, Ltd. (Included as Exhibit 4.2 to Form
10-K filed with the Securities and Exchange Commission on
April 13, 1994, incorporated herein by reference.)
10.1 Management Agreement between CNL Income Fund XIV, Ltd. and
CNL Investment Company (Included as Exhibit 10.1 to Form
10-K filed with the Securities and Exchange Commission on
April 13, 1994, 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.)
10.4 Assignment of Management Agreement from CNL Fund 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. (Filed herewith.)