UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-K

(Mark One)

[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                   For the fiscal year ended December 31, 2002

                                       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 0-20017

                            CNL INCOME FUND IX, LTD.
             (Exact name of registrant as specified in its charter)

       Florida                                           59-3004138
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

                             450 South Orange Avenue
                             Orlando, Florida 32801
          (Address of principal executive offices, including zip code)

       Registrant's telephone number, including area code: (407) 540-2000

           Securities registered pursuant to Section 12(b) of the Act:

    Title of each class:                  Name of exchange on which registered:
         None                                       Not Applicable

           Securities registered pursuant to Section 12(g) of the Act:

              Units of limited partnership interest ($10 per Unit)
                                (Title of class)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the preceding 12 months (or 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 if disclosure of delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. [x]

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

         Aggregate market value of the voting stock held by nonaffiliates of the
registrant:  The registrant registered an offering of 3,500,000 units of limited
partnership  interest  (the  "Units") on Form S-11 under the  Securities  Act of
1933, as amended. Since no established market for such Units exists, there is no
market value for such Units. Each Unit was originally sold at $10 per Unit.

                      DOCUMENTS INCORPORATED BY REFERENCE:
                                      None

<page>
                                     PART I


Item 1.  Business

         CNL Income Fund IX, Ltd. (the  "Registrant" or the  "Partnership") is a
limited  partnership  which was  organized  pursuant to the laws of the State of
Florida on April 16, 1990. The general partners of the Partnership are Robert A.
Bourne,  James M. Seneff, Jr. and CNL Realty Corporation,  a Florida corporation
(the "General  Partners").  Beginning on March 20, 1991, the Partnership offered
for sale up to  $35,000,000  in  limited  partnership  interests  (the  "Units")
(3,500,000  Units each at $10 per Unit) pursuant to a registration  statement on
Form S-11 under the Securities Act of 1933, as amended.  The offering terminated
on September 6, 1991, at which date the maximum offering proceeds of $35,000,000
had been received from investors who were admitted to the Partnership as limited
partners (the "Limited Partners").

         The  Partnership  was organized to acquire both newly  constructed  and
existing  restaurant  properties,  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 "Restaurant Chains").  Net proceeds to the Partnership from its offering of
Units,  after  deduction  of  organizational  and  offering  expenses,   totaled
$30,800,000,  and were used to acquire 41  Properties,  including 13  Properties
owned by joint  ventures  in which  the  Partnership  is a  co-venturer,  and to
establish a working capital reserve for Partnership purposes.

         As of December 31, 1999, the Partnership  owned 25 Properties  directly
and 16  Properties  indirectly  through  joint  venture  or  tenancy  in  common
arrangements.  During the year ended December 31, 2000, the Partnership sold its
Properties in  Williamsville,  New York and in Bluffton and Alliance,  Ohio, and
used a  portion  of  these  net  sales  proceeds  to  invest  in a  Property  in
Libertyville,   Illinois,   with  an  affiliate  of  the  General  Partners,  as
tenants-in-common. During the year ended December 31, 2001, the Partnership sold
its Properties in Bedford,  Indiana,  Copley Township,  Ohio and the Property in
Dublin, California,  which was held with an affiliate of the General Partners as
tenants-in-common,  and  reinvested  the  majority of these sales  proceeds in a
Property  in Blaine,  Minnesota  and in a Property  in  Waldorf,  Maryland  with
affiliates  of the  General  Partners as  tenants-in-common.  During  2002,  the
Partnership  sold  its  Properties  in  Greenville,  South  Carolina;  Farragut,
Tennessee,  and Libertyville,  Illinois, which was held with an affiliate of the
General  Partners as  tenant-in-common.  The Partnership  also sold the Shoney's
portion of the dual-brand Property in Huntsville, Alabama; the Partnership still
owns the Captain D's portion. The Partnership  reinvested the net sales proceeds
from the sales of the Properties in Greenville,  South Carolina and  Huntsville,
Alabama,  along with a portion of the net sales  proceeds  from the 2001 sale of
the  Property  in Copley  Township,  Ohio in a Property  in Dallas,  Texas and a
Property  in Jackson,  Michigan.  The  Partnership  reinvested  the  liquidating
distribution  from the  sale of the  Property  in  Libertyville,  Illinois  in a
Property in Buffalo Grove, Illinois,  with an affiliate of the General Partners,
as  tenants-in-common.  The  Partnership  intends to reinvest the sales proceeds
from the sale of the Property in Farragut,  Tennessee in an additional Property.
In addition, CNL Restaurant Investments III, in which the Partnership owns a 50%
interest,  sold its  Property  in  Greensboro,  North  Carolina;  Ashland  Joint
Venture,  in which the Partnership owns a 27.33% interest,  sold its Property in
Ashland,  New  Hampshire;  and CNL  Restaurant  Investments  II,  in  which  the
Partnership  owns a 45.2%  interest,  sold its Properties in Columbus,  Ohio and
Pontiac,  Michigan.  Ashland  Joint Venture  reinvested  the majority of its net
sales proceeds in a Property in San Antonio,  Texas. CNL Restaurant  Investments
II reinvested  the net sales proceeds from the sale of the Property in Columbus,
Ohio in a Property in Dallas,  Texas and distributed the net sales proceeds from
the sale of the Property in Pontiac,  Michigan to the Partnership as a return of
capital.  The Partnership  used this return of capital to acquire an interest in
Katy  Joint  Venture,  with CNL  Income  Fund  XVII,  Ltd.,  a  Florida  limited
partnership,   and  an  affiliate  of  the  General  Partners.   CNL  Restaurant
Investments III distributed the net sales proceeds from the sale of the Property
in  Greensboro,  North Carolina to the  Partnership as a return of capital.  The
Partnership  intends to use the return of capital to meet working capital needs.
As of December 31, 2002,  the  Partnership  owned 21 Properties  directly and 16
Properties  indirectly through joint venture or tenancy in common  arrangements.
In February 2003, the Partnership sold the Property in Grand Prairie,  Texas, to
a third party and intends to reinvest these proceeds in an additional Property.

         The  Partnership  holds  its  Properties  until  the  General  Partners
determine that the sale or other  disposition of the Properties is  advantageous
in view of the Partnership's investment objectives.  In deciding whether to sell
Properties,  the General  Partners  consider  factors such as potential  capital
appreciation,  net cash flow and  federal  income  tax  considerations.  Certain
lessees also have been granted options to purchase Properties,  generally at the
Property's  then fair market  value after a specified  portion of the lease term
has elapsed.  The  Partnership has no obligation to sell all or any portion of a
Property  at any  particular  time,  except as may be  required  under  property
purchase options granted to certain lessees.

Leases

         Although there are variations in the specific terms of the leases,  the
following  is  a  summarized   description  of  the  general  structure  of  the
Partnership's leases. The leases of the Properties owned by the Partnership, the
joint  ventures in which the  Partnership  is a co-venturer  and the  Properties
owned with affiliates of the General  Partners as  tenants-in-common,  generally
provide for initial  terms  ranging  from 14 to 20 years (the  average  being 16
years),  and  expire  between  2005 and 2021.  The  leases  are  generally  on a
triple-net basis, with the lessees  responsible for all repairs and maintenance,
property taxes,  insurance and utilities.  The leases of the Properties  provide
for  minimum  base annual  rental  payments  (payable  in monthly  installments)
ranging from  approximately  $57,600 to $246,400.  In  addition,  generally  the
leases  provide  for  percentage  rent,  based on sales in excess of a specified
amount.  In  addition,  a majority of the leases  provide  that,  commencing  in
specified  lease years  (ranging  from the third to the sixth lease  year),  the
annual base rent required under the terms of the lease will increase.

         Generally,  the  leases  of the  Properties  provide  for  two to  four
five-year  renewal  options  subject  to the same  terms and  conditions  as the
initial lease.  Lessees of 24 of the  Partnership's 37 Properties also have been
granted options to purchase  Properties at the Property's then fair market value
after a specified portion of the lease term has elapsed.  Fair market value will
be determined  through an appraisal by an independent  appraisal firm. Under the
terms of certain leases,  the option purchase price may equal the  Partnership's
original cost to purchase the Property  (including  acquisition  costs),  plus a
specified percentage from the date of the lease or a specified percentage of the
Partnership's purchase price, if that amount is greater than the Property's fair
market value at the time the purchase option is exercised.

         The leases generally provide that, in the event the Partnership  wishes
to sell the Property subject to that lease, the Partnership first must offer the
lessee the right to purchase the Property on the same terms and conditions,  and
for the same price, as any offer which the Partnership has received for the sale
of the Property.

         During 2002, the Partnership reinvested the net sales proceeds from the
sales of the Properties in Huntsville, Alabama and Greenville, South Carolina in
Properties  in  Dallas,  Texas  and  Jackson,  Michigan.  The  Partnership  also
reinvested  the  liquidating  distribution  it  received  from  the  sale of the
Property in Libertyville,  Illinois in a Property in Buffalo Grove, Illinois, as
tenants-in-common,   with  CNL  Income  Fund  VIII,   Ltd.,  a  Florida  limited
partnership and affiliate of the General Partners.  In addition,  CNL Restaurant
Investments III, in which the Partnership owns a 50% interest, sold its Property
in Greensboro,  North Carolina;  Ashland Joint Venture, in which the Partnership
owns a  27.33%  interest,  sold its  Property  in  Ashland,  New  Hampshire  and
reinvested the net sales proceeds in a Property in San Antonio,  Texas;  and CNL
Restaurant Investments II, in which the Partnership owns a 45.2% interest,  sold
its  Properties in Columbus,  Ohio and Pontiac,  Michigan and reinvested the net
sales proceeds from the Columbus,  Ohio sale in a Property in Dallas, Texas. The
lease  terms  for each of these  Properties  are  substantially  the same as the
Partnership's other leases.

         During  2002,  the  tenant of the  Property  in North  Baltimore,  Ohio
terminated its lease,  in accordance  with its lease  agreement,  when a partial
right of way taking reduced road access to the restaurant.  The General Partners
are  currently  seeking  either  a new  tenant  or a  purchaser  for the  vacant
Property.

         In December 2002, the Partnership entered into an agreement to sell the
Property in Grand Prairie,  Texas. In February 2003, the  Partnership  sold this
Property


Major Tenants

         During 2002, four of the Partnership's  lessees (or group of affiliated
lessees),  (i)  Carrols  Corporation  and  Texas  Taco  Cabana,  LP  (which  are
affiliated  entities under common control)  (hereinafter  referred to as Carrols
Corp.),  (ii) Flagstar  Enterprises,  Inc., (iii) Burger King Corporation and BK
Acquisition,   Inc.  (which  are  affiliated   entities  under  common  control)
(hereinafter   referred  to  as  Burger  King  Corp.)  and  (iv)  Golden  Corral
Corporation,  each contributed more than ten percent of the Partnership's  total
rental revenues and mortgage interest income (including the Partnership's  share
of   rental   revenues   from   joint   ventures   and   Properties   owned   as
tenants-in-common).  As of December 31, 2002, Carrols Corp. was the lessee under
leases relating to nine restaurants,  Flagstar Enterprises,  Inc. was the lessee
under leases  relating to three  restaurants,  Burger King Corp.  was the lessee
under leases relating to the nine restaurants and Golden Corral  Corporation was
the lessee under leases relating to three  restaurants.  It is anticipated that,
based on the minimum  rental  payments  required by the  leases,  Carrols  Corp.
Burger King Corp. and Golden Corral Corporation will each continue to contribute
more than ten percent of the Partnership's rental revenues in 2003. In addition,
four  Restaurant  Chains,  Burger King,  Hardee's,  Shoney's,  and Golden Corral
Family Steakhouse  Restaurants  ("Golden Corral"),  each accounted for more than
ten percent of the  Partnership's  rental revenues and mortgage  interest during
2002  (including  the  Partnership's  share of the  rental  revenues  from joint
ventures and Properties owned as tenants-in-common).  In 2003, it is anticipated
that these four  Restaurant  Chains each will  continue to account for more than
ten percent of the total rental  revenues to which the  Partnership  is entitled
under the terms of its leases. Any failure of these lessees or Restaurant Chains
could materially affect the Partnership's  income if the Partnership is not able
to re-lease the Properties in a timely manner. As of December 31, 2002,  Carrols
Corp. leased Properties with an aggregate carrying value in excess of 20% of the
total assets of the Partnership.

Joint Venture and Tenancy in Common Arrangements

         The  Partnership  has  entered  into the  following  joint  venture and
tenancy in common arrangements as of December 31, 2002:
<TABLE>
<CAPTION>

               Entity Name             Year      Ownership               Partners                   Property

 <c>
      CNL Restaurant Investments II    1991       45.20%      CNL Income Fund VII, Ltd.        San Antonio, TX
                                                              CNL Income Fund VIII, Ltd.       Raceland, LA
                                                                                               Dallas, TX
                                                                                               Hastings, MN
                                                                                               Newcastle, IN

      CNL Restaurant Investments III   1992       50.00%      CNL Income Fund X, Ltd.          Dover, NH
                                                                                               Metrairie, LA
                                                                                               Lafayette, LA
                                                                                               Nashua, NH
                                                                                               Pontiac, IL

      Ashland Joint Venture            1992       27.33%      CNL Income Fund X, Ltd.          San Antonio, TX
                                                              CNL Income Fund XI, Ltd.

      CNL Income Fund III, Ltd. and    1997       67.00%      CNL Income Fund III, Ltd.        Englewood, CO
           CNL Income Fund IX, Ltd.
           Tenants in Common

      CNL Income Fund VII, Ltd. and    1999       29.00%      CNL Income Fund VII, Ltd.        Montgomery, AL
           CNL Income Fund IX, Ltd.
           Tenants in Common

      CNL Income Fund VI, Ltd., CNL    2001       15.00%      CNL Income Fund VI, Ltd.         Waldorf, MD
           Income Fund IX, Ltd.,                              CNL Income Fund XVII, Ltd.
           and CNL Income Fund
           XVII, Ltd. Tenants in
           Common

      Katy Joint Venture               2002       60.00%      CNL Income Fund XVII, Ltd.       Katy, TX

      CNL Income Fund VIII, Ltd.,      2002       34.00%      CNL Income Fund VIII, Ltd.       Buffalo Grove, IL
           and CNL Income Fund IX,
           Ltd. Tenants in Common
</TABLE>

         CNL Restaurant  Investments II and CNL Restaurant  Investments III were
each  formed to hold six  Properties,  however,  all  other  joint  ventures  or
tenancies in common were formed to hold one Property. Each CNL Income Fund is an
affiliate  of the  General  Partners  and  is a  limited  partnership  organized
pursuant to the laws of the state of Florida.  The Partnership shares management
control equally with the affiliates of the General Partners

         The joint  venture and tenancy in common  arrangements  provide for the
Partnership  and its joint venture or tenancy in common partners to share in all
costs and benefits in proportion to each  partner's  percentage  interest in the
business entity. The Partnership and its partners are also jointly and severally
liable for all debts,  obligations and other liabilities of the joint venture or
tenancy in common.  Net cash flow from  operations is  distributed to each joint
venture  or  tenancy  in  common  partner  in  accordance  with  its  respective
percentage interest in the business entity.

         CNL Restaurant  Investments II's and CNL Restaurant  Investments  III's
joint venture  agreements do not provide a fixed term, but continue in existence
until  terminated  by any of the joint  venturers.  Ashland Joint Venture has an
initial term of 14 years and Katy Joint  Venture has an initial term of 30 years
and, after the expiration of the initial term,  continues in existence from year
to year unless  terminated at the option of either joint venturer by an event of
dissolution.  Events  of  dissolution  include  the  bankruptcy,  insolvency  or
termination  of any  joint  venturer,  sale of the  Property  owned by the joint
venture and mutual agreement of the Partnership and its joint venture partner to
dissolve the joint venture. Any liquidation proceeds, after paying joint venture
debts and liabilities and funding reserves for contingent  liabilities,  will be
distributed  first to the joint venture  partners with positive  capital account
balances in  proportion to such balances  until such  balances  equal zero,  and
thereafter in proportion to each joint venture partner's  percentage interest in
the joint venture.

         The joint  venture  and  tenancy  in common  agreements  restrict  each
party's  ability to sell,  transfer  to assign  its joint  venture or tenancy in
common interest  without first offering it for sale to its partner,  either upon
such terms and conditions as to which the parties may agree or, in the event the
parties cannot agree, on the same terms and conditions as any offer from a third
party to purchase such joint venture or tenancy in common interest.

         During  2002,  CNL  Restaurant  Investments  III sold its  Property  in
Greensboro,  North Carolina; Ashland Joint Venture sold its Property in Ashland,
New  Hampshire  and  reinvested  the net sales  proceeds  in a  Property  in San
Antonio,  Texas;  and CNL  Restaurant  Investments  II sold  its  Properties  in
Columbus,  Ohio and Pontiac,  Michigan and reinvested a portion of the net sales
proceeds in a Property in Dallas,  Texas.  The Partnership  received a return of
capital from both CNL Restaurant  Investments II and CNL Restaurant  Investments
III, and used these proceeds to acquire an interest in Katy Joint Venture,  with
CNL Income Fund XVII, Ltd., a Florida limited  partnership,  and an affiliate of
the General Partners.  In addition,  during 2002, the Partnership and CNL Income
Fund VIII,  Ltd.,  as  tenants-in-common,  sold the  Property  in  Libertyville,
Illinois and reinvested the liquidating distribution from the sale to acquire an
IHOP Property in Buffalo Grove, Illinois, as a new tenancy in common arrangement
with the same affiliate. The Partnership owns a 34% interest in this Property.

         The use of joint venture and tenancy in common  arrangements allows the
Partnership  to fully invest its available  funds at times at which it would not
have  sufficient  funds to purchase an additional  property,  or at times when a
suitable  opportunity to purchase an additional  property is not available.  The
use of joint  venture  and  tenancy in common  arrangements  also  provides  the
Partnership  with  increased  diversification  of its portfolio  among a greater
number of properties. In addition,  tenancy in common arrangements may allow the
Partnership  to defer the gain for federal  income tax purposes upon the sale of
the Property if the proceeds are reinvested in an additional Property.

Certain Management Services

         RAI Restaurants,  Inc. (formerly known as CNL Restaurants XVIII, Inc.),
an affiliate of the General  Partners,  provides  certain  services  relating to
management  of the  Partnership  and its  Properties  pursuant  to a  management
agreement with the Partnership. CNL APF Partners, LP assigned its rights in, and
its  obligations  under,  the management  agreement with the  Partnership to RAI
Restaurants,  Inc.  ("Advisor")  effective January 1, 2002. All of the terms and
conditions of the management agreement,  including the payment of fees, remained
unchanged.  Under this  agreement,  the Advisor is  responsible  for  collecting
rental  payments,  inspecting the Properties and the tenants' books and records,
assisting the  Partnership  in responding to tenant  inquiries and notices,  and
providing  information to the Partnership about the status of the leases and the
Properties.  The Advisor also assists the General  Partners in  negotiating  the
leases.  For these  services,  the  Partnership had agreed to pay the Advisor an
annual fee of one percent of the sum of gross rental  revenues  from  Properties
wholly owned by the Partnership plus the Partnership's  allocable share of gross
revenues of joint ventures in which the Partnership is a co-venturer, but not in
excess  of  competitive  fees for  comparable  services.  Under  the  management
agreement, the management fee is subordinated to receipt by the Limited Partners
of an aggregate, ten percent,  cumulative,  noncompounded annual return on their
adjusted  capital  contributions  (the "10%  Preferred  Return"),  calculated in
accordance   with  the   Partnership's   limited   partnership   agreement  (the
"Partnership Agreement").

         The management agreement continues until the Partnership no longer owns
an interest in any Properties unless terminated at an earlier date upon 60 days'
prior notice by either party.

Competition

         The fast-food and family-style  restaurant business is characterized by
intense  competition.  The restaurants on the Partnership's  Properties  compete
with  independently  owned  restaurants,  restaurants which are part of local or
regional chains, and restaurants in other well-known national chains,  including
those offering different types of food and service.

Employees

         The  Partnership   has  no  employees.   The  officers  of  CNL  Realty
Corporation  and the officers and  employees  of CNL American  Properties  Fund,
Inc.,  the parent  company  of the  Advisor  perform  certain  services  for the
Partnership.  In  addition,  the General  Partners  have  available  to them the
resources and  expertise of the officers and  employees of CNL Financial  Group,
Inc.,  a  diversified  real estate  company,  and its  affiliates,  who may also
perform certain services for the Partnership.


Item 2.  Properties

         As of December 31, 2002, the Partnership owned 37 Properties. Of the 37
Properties,  21 are owned by the Partnership in fee simple, 12 are owned through
joint  venture  arrangements  and four  are  owned  through  tenancy  in  common
arrangements.  See Item 1.  Business  - Joint  Venture  and  Tenancy  in  Common
Arrangements.  The Partnership is not permitted to encumber its Properties under
the terms of its  partnership  agreement.  Reference  is made to the Schedule of
Real Estate and  Accumulated  Depreciation  for a listing of the  Properties and
their  respective  costs,  including  acquisition  fees and certain  acquisition
expenses.

Description of Properties

         Land. The Partnership's  Property sites range from approximately 21,400
to 115,100  square  feet  depending  upon  building  size and local  demographic
factors.  Sites  purchased  by  the  Partnership  are  in  locations  zoned  for
commercial use which have been reviewed for traffic patterns and volume.

         The  following  table lists the  Properties  owned by the  Partnership,
either  directly  or  indirectly  through  joint  venture  or  tenancy in common
arrangements,  as of  December  31,  2002 by state.  More  detailed  information
regarding  the location of the  Properties  is contained in the Schedule of Real
Estate and Accumulated Depreciation for the year ended December 31, 2002.

                State                             Number of Properties

                Alabama                                        4
                Colorado                                       1
                Florida                                        1
                Georgia                                        2
                Illinois                                       2
                Indiana                                        1
                Louisiana                                      3
                Maryland                                       1
                Michigan                                       1
                Minnesota                                      2
                Mississippi                                    1
                New Hampshire                                  2
                New York                                       1
                North Carolina                                 2
                Ohio                                           3
                Tennessee                                      1
                Texas                                          9
                                                            -----
                TOTAL PROPERTIES                              37
                                                            =====

         Buildings.  Each of the  Properties  owned by the  Partnership,  either
directly or indirectly through joint venture or tenancy in common  arrangements,
includes a building that is one of a Restaurant  Chain's approved  designs.  The
buildings   generally  are  rectangular   and  are   constructed   from  various
combinations of stucco,  steel, wood, brick and tile.  Building sizes range from
approximately  2,100 to 10,600  square feet.  All  buildings on  Properties  are
freestanding  and surrounded by paved parking areas.  Buildings are suitable for
conversion to various uses, although  modifications may be required prior to use
for other than restaurant  operations.  As of December 31, 2002, the Partnership
had no plans for renovation of the Properties.  Depreciation expense is computed
for  buildings  and  improvements   using  the  straight  line  method  using  a
depreciable life of 40 years for federal income tax purposes.

         As of December 31, 2002, the aggregate cost of the Properties  owned by
the Partnership and joint ventures  (including  Properties owned through tenancy
in common  arrangements)  for federal  income tax purposes was  $18,878,784  and
$19,312,602, respectively.

         The  following  table lists the  Properties  owned by the  Partnership,
either  directly  or  indirectly  through  joint  venture  or  tenancy in common
arrangements, as of December 31, 2002 by Restaurant Chain

               Restaurant Chain                      Number of Properties(1)

               Baker's Square                                       1
               Bennigan's                                           1
               Burger King                                         15
               Captain D's                                          1
               Denny's                                              2
               Golden Corral                                        3
               Hardee's                                             4
               IHOP                                                 3
               Johnnies                                             1
               Shoney's                                             2
               Taco Cabana                                          4
                                                                 -----
               TOTAL PROPERTIES                                    37
                                                                 =====

         The General Partners consider the Properties to be well-maintained  and
sufficient for the Partnership's operations.

         The General Partners believe that the Properties are adequately covered
by  insurance.  In  addition,  the General  Partners  have  obtained  contingent
liability and property coverage for the Partnership.  This insurance is intended
to reduce the Partnership's  exposure in the unlikely event a tenant's insurance
policy lapses or is insufficient to cover a claim relating to the Property.

         Leases.  The Partnership leases the Properties to operators of selected
national and regional fast-food restaurant chains. The leases are generally on a
long-term  "triple  net"  basis,  meaning  that the  tenant is  responsible  for
repairs, maintenance, property taxes, utilities and insurance.

         As of December 31, 2002, 2001, 2000, 1999 and 1998, the Properties were
92%,  95%,  100%,  98%,  and 98%,  occupied,  respectively.  The  following is a
schedule of the average rent per Property for the years ended December 31:
<TABLE>
<CAPTION>

                                    2002              2001              2000               1999               1998
                                -------------     -------------    ---------------     --------------     --------------

 <c>
Rental Revenues (1)(2)           $ 2,883,076       $ 2,805,847        $ 3,104,235        $ 3,168,448        $ 3,473,845
Properties (2)                            34                37                 40                 42                 41
Average Rent per
    Property                       $  84,796         $  75,834          $  77,606          $  75,439          $  84,728
</TABLE>

(1)      Rental  revenues  includes the  Partnership's  share of rental revenues
         from the Properties  owned through joint venture  arrangements  and the
         Properties owned through tenancy in common arrangements.

(2)      Excludes  Properties  that were vacant at December 31, and that did not
         generate rental revenues during the year ended December 31.

         The following is a schedule of lease expirations for leases in place as
of December 31, 2002,  one of which sold in February 2003 for the next ten years
and thereafter.

                                                                 Percentage of
             Expiration         Number          Annual Rental     Gross Annual
               Year           of Leases          Revenues        Rental Income
             -------------  -------------    -----------------   --------------

              2003                --                    --                 --
              2004                --                    --                 --
              2005                 6           $   500,106             18.50%
              2006                 8               626,400             23.17%
              2007                --                    --                 --
              2008                --                    --                 --
              2009                --                    --                 --
              2010                --                    --                 --
              2011                 9               725,840             26.84%
              2012                --                    --                 --
              Thereafter          11               851,659             31.49%
                               ------       ------------------      -----------
              Total (1)           34          $  2,704,005            100.00%
                               ======       ==================      ===========

(1)      Excludes three  Properties  which were vacant at December 31, 2002, one
         of which was sold in February 2003.

         Leases  with Major  Tenants.  The terms of each of the leases  with the
Partnership's  major  tenants as of December  31,  2002 (see Item 1.  Business -
Major Tenants) are substantially the same as those described in Item 1. Business
- Leases.

         Carrols Corp leases five Burger King  restaurants  and four Taco Cabana
restaurants. The initial term of each lease ranges from 12 to 20 years (expiring
between 2011 and 2020) and the average minimum base annual rent is approximately
$101,800 (ranging from approximately $85,700 to $138,100).

         Flagstar  Enterprises,  Inc.  leases three  Hardee's  restaurants.  The
initial  term of each  lease is 20 years  (expiring  in  2011)  and the  average
minimum base annual rent is approximately  $70,400  (ranging from  approximately
$57,600 to $85,400).

         Burger King Corp.  leases nine Burger King  restaurants with an initial
term of 14 years  (expiring  between 2005 and 2006) and the average minimum base
annual rent is approximately  $101,200  (ranging from  approximately  $79,400 to
$134,100).

         Golden Corral  Corporation  leases three Golden Corral restaurants with
an initial term of 15 years  (expiring in 2005 and 2014) and the average minimum
base annual rent is approximately  $168,500 (ranging from approximately $157,500
to $176,400).


Item 3.  Legal Proceedings

         Neither the  Partnership,  nor its General Partners or any affiliate of
the General Partners,  nor any of their respective  Properties,  is party to, or
subject to, any material pending legal proceedings.


Item 4.  Submission of Matters to a Vote of Security Holders

         Not applicable.


                                     PART II


Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

         (a) As of March 10,  2003,  there were  3,396  holders of record of the
Units.  There  is no  public  trading  market  for  the  Units,  and  it is  not
anticipated  that a public  market  for the Units  will  develop.  During  2002,
Limited  Partners  who wished to sell their Units may have offered the Units for
sale pursuant to the Partnership's  distribution reinvestment plan (the "Plan"),
and  Limited  Partners  who wished to have their  distributions  used to acquire
additional  Units (to the extent Units were  available for  purchase),  may have
done so pursuant to such Plan.  The General  Partners have the right to prohibit
transfers of Units.  From inception through December 31, 2002, the price for any
Unit transferred pursuant to the Plan was $9.50 per Unit. The price paid for any
Unit  transferred  other than pursuant to the Plan was subject to negotiation by
the purchaser and the selling Limited  Partner.  The Partnership will not redeem
or repurchase Units.

         The following table reflects,  for each calendar quarter, the high, low
and average  sales prices for transfers of Units during 2002 and 2001 other than
pursuant to the Plan, net of commissions.
<TABLE>
<CAPTION>

                                               2002 (1)                                2001 (1)
                                  -----------------------------------     ------------------------------------
                                    High          Low        Average        High         Low         Average
                                  ---------     --------    ----------    ----------   ---------    ----------

 <c>
          First Quarter              $ 9.00       $ 6.00        $  6.81       $ 8.06      $ 6.36        $  7.22
          Second Quarter               7.30         6.80          7.08          7.23        6.62          6.86
          Third Quarter                7.80         7.14          7.44          7.29        6.00          6.70
          Fourth Quarter              10.62         7.28          8.59          6.14        6.14          6.14
</TABLE>

(1)      A total of 17,811 and 12,230 Units were transferred other than pursuant
         to  the  Plan  for  the  years  ended   December  31,  2002  and  2001,
         respectively.

         The  capital  contribution  per Unit was $10.  All cash  available  for
distribution  will be distributed to the partners  pursuant to the provisions of
the Partnership Agreement.

         For each of the years ended December 31, 2002 and 2001, the Partnership
declared  cash  distributions  in the  aggregate  amounts of  $3,150,004  to the
Limited  Partners.  Distributions of $787,501 were declared at the close of each
of the  Partnership's  calendar  quarters  during  2002 and 2001 to the  Limited
Partners.  No amounts  distributed  to the Limited  Partners for the years ended
December  31,  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 contributions.  No distributions have
been  made to the  General  Partners  to date.  These  amounts  include  monthly
distributions  made in arrears for the Limited Partners electing to receive such
distributions on this basis.

         The  Partnership  intends to  continue  to make  distributions  of cash
available  for  distribution  to the  Limited  Partners  on a  quarterly  basis,
although some Limited  Partners,  in  accordance  with their  election,  receive
monthly distributions, for an annual fee.

(b)      Not applicable.


Item 6.  Selected Financial Data

         The following  selected  financial  data should be read in  conjunction
with the financial statements and related notes in Item 8. hereof.
<TABLE>
<CAPTION>

                                             2002             2001            2000            1999           1998
                                       ----------------- --------------- --------------- --------------- -------------

 <c>
Year ended December 31:

Continuing Operations (5):
    Revenues                               $  1,967,240     $ 2,069,145     $ 2,391,502     $ 2,341,846    $2,595,206
    Equity in earnings of joint
      ventures                                1,199,146         753,457         674,930         606,337       596,166
    Income from continuing
      operations (1) (2)                      2,550,412       2,021,348       1,767,845       2,274,697     2,133,668

Discontinued Operations (5):
     Revenues (1)                                91,459          92,796         107,825         134,514       176,913
     Income (Loss) from
      discontinued operations (3)(4)            178,553         (29,442 )        82,935         110,370       153,030

Net income                                    2,728,965       1,991,906       1,850,780       2,385,067     2,286,698

Net income (loss)  per Unit:
     Continuing operations                   $     0.73       $    0.58       $    0.51       $    0.65      $   0.61
     Discontinued operations                       0.05           (0.01 )          0.02            0.03          0.04
                                       ----------------- --------------- --------------- --------------- -------------
      Total                                  $     0.78       $    0.57       $    0.53       $    0.68      $   0.65
                                       ================= =============== =============== =============== =============

Cash distribution declared                 $  3,150,004     $ 3,150,004     $ 3,150,004     $ 3,150,004    $3,220,004
Cash distributions declared per
    Unit                                           0.90            0.90            0.90            0.90          0.92


At December 31:
    Total assets                          $  26,450,142     $26,859,177    $ 28,132,613    $ 29,443,276   $30,099,078
    Total partners' capital                  25,570,620      25,991,659      27,149,757      28,448,981    29,213,918
</TABLE>

(1)      Income from continuing  operations  includes  $381,828,  $400,799,  and
         $582,375,  for the years  ended  December  31,  2002,  2001,  and 1998,
         respectively, from provisions for write-down of assets.

(2)      Income from continuing  operations  includes  $456,143,  $298,795,  and
         $75,997  for the  years  ended  December  31,  2002,  2001,  and  1999,
         respectively,  from gains on sale of assets and  $730,668  for the year
         ended December 31, 2000 from loss on sale of assets.

(3)      Income from discontinued  operations includes $58,459 and $62,126,  for
         the  years  ended  December  31,  2002  and  2001,  respectively,  from
         provisions for write-down of assets.

(4)      Income from discontinued operations includes $185,632 from gain on sale
         of assets for the year ended December 31, 2002.

(5)      Certain   items  in  prior  years'   financial   statement   have  been
         reclassified to conform to 2002 presentation.  These  reclassifications
         had no effect on total net income.  The results of operations  relating
         to properties  that were either  disposed of or were classified as held
         for  sale  as  of  December  31,  2002  are  reported  as  discontinued
         operations.  The results of operations relating to properties that were
         identified for sale as of December 31, 2001 but sold  subsequently  are
         reported as continuing operations.

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

         The  Partnership  was organized on April 16, 1990, to acquire for cash,
either directly or through joint venture  arrangements,  both newly  constructed
and  existing  restaurant  Properties,  as well as land  upon  which  restaurant
Properties  were to be  constructed,  to be leased  primarily  to  operators  of
selected 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. The leases of
the  Properties  provide for  minimum  base annual  rental  amounts  (payable in
monthly installments) ranging from approximately $57,600 to $246,400. Generally,
the leases provide for  percentage  rent based on sales in excess of a specified
amount.  In  addition,  a majority of the leases  provide  that,  commencing  in
specified  lease years  (ranging  from the third to the sixth lease  year),  the
annual  base rent  required  under the terms of the lease will  increase.  As of
December  31,  2000,  the  Partnership  owned  23  Properties  directly  and  17
Properties  indirectly through joint venture or tenancy in common  arrangements.
As of December 31, 2001,  the  Partnership  owned 21 Properties  directly and 17
Properties  indirectly through joint venture or tenancy in common  arrangements.
As of December 31, 2002,  the  Partnership  owned 21 Properties  directly and 16
Properties indirectly through joint venture or tenancy in common arrangements.

Capital Resources

         Cash  from  operating  activities  was  $2,656,608,   $2,835,733,   and
$2,844,067, for the years ended December 31, 2002, 2001, and 2000, respectively.
The decrease in cash from operating activities during 2002 and 2001, as compared
to the previous  year was a result of changes in income and expenses and changes
in the Partnership's working capital.

         Other sources and uses of cash included the following  during the years
ended December 31, 2002, 2001, and 2000.

         During 2000, the Partnership  sold its Property in  Williamsville,  New
York, to a third party and received net sales proceeds of $693,350, resulting in
a loss of $27,391.  In August 2000, the Partnership  reinvested a portion of the
net sales proceeds in a Property in Libertyville, Illinois, with CNL Income Fund
VIII, Ltd. ("CNL VIII"),  a Florida limited  partnership and an affiliate of the
General  Partners,  as  tenants-in-common.  The  Partnership  and the  affiliate
entered into an agreement whereby each co-venturer will share in the profits and
losses of the Property in proportion to its applicable percentage interest.  The
Partnership  owned a 34%  interest  in the  Property.  In  September  2002,  the
Partnership  and CNL VIII sold this  Property to a third party and  received net
sales proceeds of approximately $1,630,400, resulting in a gain of approximately
$199,300 to the tenancy in common.  In September 2002, the Partnership  used the
liquidating  distribution  from the sale of this  Property  to  acquire  an IHOP
Property in Buffalo Grove, Illinois, as a new tenancy in common arrangement with
the same  affiliate.  As of December 31, 2002, the  Partnership  had contributed
approximately  $540,200  for a 34%  interest  in the  profits and losses of this
Property.

         During  2000,  the  Partnership  sold its  Properties  in Bluffton  and
Alliance,  Ohio, for a total of $500,000,  resulting in a loss of $703,277.  The
Partnership  accepted two promissory  notes in the aggregate amount of $500,000,
collateralized  by a mortgage on the respective  Property.  The promissory notes
bear an interest  rate of nine  percent per annum and are being  collected in 96
monthly  installments  of  principal  and  interest,  with  balloon  payments of
$184,652 and $123,102,  respectively,  due in December  2008.  The mortgage note
receivable  balance  relating to these  Properties at December 31, 2002 and 2001
was $464,352 and $482,406,  respectively,  including  accrued interest of $3,572
and $3,711, respectively.

         During 2001, the  Partnership  sold its Properties in Bedford,  Indiana
and Copley  Township,  Ohio,  each to a third party and received total net sales
proceeds of  approximately  $1,986,200  resulting in a net gain of approximately
$298,800.  During 2001, the Partnership reinvested these net sales proceeds in a
Property in Blaine,  Minnesota.  The Property was acquired  from an affiliate of
the General Partners.  The affiliate 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 the affiliate to acquire the Property.

         In addition, during 2001, the Partnership and CNL Income Fund VI, Ltd.,
an  affiliate  of the General  Partners and a Florida  limited  partnership,  as
tenants-in-common,  sold the  Property in Dublin,  California,  and received net
sales  proceeds  of  approximately  $1,699,600,  resulting  in a  gain,  to  the
tenancy-in-common,  of  approximately  $158,100.  The  Partnership  owned  a 25%
interest in this Property.  The Partnership received approximately $424,600 as a
liquidating  distribution  for its  pro-rata  share of the net  sales  proceeds.
During 2001, the Partnership reinvested these proceeds in a Property in Waldorf,
Louisiana,  as tenants-in-common,  with CNL Income Fund VI, Ltd., and CNL Income
Fund XVII,  Ltd.,  each of which is an affiliate  of the General  Partners and a
Florida limited partnership.  The Partnership contributed approximately $342,000
for a 15% interest in the profits and losses of the Property.

         During 2002, the Partnership  sold its Properties in Greenville,  South
Carolina and Huntsville,  Alabama,  each to a third party and received total net
sales  proceeds  of  approximately  $1,928,300,  resulting  in  a  net  gain  of
approximately  $456,100.  These  Properties  had been  identified for sale as of
December 31, 2001.  The  Partnership  reinvested  these sales proceeds in a Taco
Cabana  Property  in  Dallas,  Texas  and a Burger  King  Property  in  Jackson,
Michigan.  During  2002,  the  Partnership  also sold its  Property in Farragut,
Tennessee  to a third party and  received  net sales  proceeds of  approximately
$886,300,  resulting  in a  gain  on  disposal  of  discontinued  operations  of
approximately  $185,632.  This Property was identified for sale during 2002. The
Partnership intends to use these proceeds to reinvest in an additional Property.

         During 2002, CNL Restaurant  Investments  III, in which the Partnership
owns a 50% interest,  sold its Property in Greensboro,  North  Carolina,  to the
tenant and received net sales proceeds of approximately $1,143,500, resulting in
a gain to the joint venture of approximately  $371,500. The Partnership received
approximately  $571,700 as a return of capital  from the joint  venture.  During
2002, the  Partnership  reinvested the majority of these net sales proceeds in a
joint venture arrangement,  Katy Joint Venture, with CNL Income Fund XVII, Ltd.,
a Florida  limited  partnership and an affiliate of the General  Partners.  Katy
Joint Venture acquired a Taco Cabana Property in Katy, Texas. As of December 31,
2002, the Partnership had contributed  approximately $625,000 for a 60% interest
in this joint venture.

         During 2002,  Ashland Joint Venture,  in which the  Partnership  owns a
27.33% interest,  sold its Property in Ashland,  New Hampshire to the tenant and
received net sales proceeds of approximately $1,472,900,  resulting in a gain to
the joint  venture of  approximately  $500,900.  During 2002,  the joint venture
reinvested the majority of the net sales proceeds from the sale of this Property
in a Taco Cabana  Property  in San  Antonio,  Texas.  The  Partnership  received
approximately  $6,000  as a return  of  capital  from the  remaining  net  sales
proceeds.  The  Partnership  intends to use this  return of capital  for working
capital needs.

         In June 2002, CNL Restaurant  Investments  II, in which the Partnership
owns a 45.2%  interest,  sold its Property in  Columbus,  Ohio to the tenant and
received net sales proceeds of approximately  $1,215,700  resulting in a gain to
the joint venture of approximately $448,300. The joint venture used the majority
of the net sales proceeds from this sale to acquire a Property in Dallas, Texas.
The Partnership received  approximately  $27,600 as a return of capital from the
remaining  net  sales  proceeds.  In  addition,  in June  2002,  CNL  Restaurant
Investments II sold its Property in Pontiac, Michigan to the tenant and received
net sales proceeds of  approximately  $722,600  resulting in a loss to the joint
venture  of  approximately  $189,800.  The  Partnership  received  approximately
$326,200 as a return of capital from the net sales proceeds.

         Each of the Taco  Cabana  Properties  was  acquired  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
Properties  in order to  facilitate  the  acquisition  of the  Properties by the
Partnership and the joint ventures.  The purchase prices paid by the Partnership
and the joint ventures  represented the costs incurred by CNL Funding 2001-A, LP
to acquire the Properties.

         The Burger King and IHOP Properties  acquired during 2002 were acquired
from CNL Net Lease Investors,  L.P. ("NLI"), a California  Limited  Partnership.
During 2002, and prior to the Partnership's acquisition of these Properties, CNL
Financial LP Holding,  LP ("CFN"), a Delaware limited  partnership,  and CNL Net
Lease  Investors GP Corp.  ("GP Corp"),  a Delaware  corporation,  purchased the
limited partner's interest and general partner's interest, respectively, of NLI.
Prior to this transaction,  an affiliate of the  Partnership's  general partners
owned a 0.1%  interest  in NLI and  served  as a  general  partner  of NLI.  The
original  general  partners  of NLI waived  their  rights to  benefit  from this
transaction.  The  acquisition  price  paid  by CFN for  the  limited  partner's
interest was based on the portfolio  acquisition price. The Partnership acquired
the Properties in Jackson,  Michigan and Buffalo  Grove,  Illinois at CFN's cost
and did not pay any additional  compensation  to CFN for the  acquisition of the
Property. Each CNL entity is an affiliate of the Partnership's General Partners.

         None of the Properties owned by the Partnership,  or the joint ventures
or tenancy in common arrangements in which the Partnership owns an interest,  is
or may be  encumbered.  Under its  partnership  agreement,  the  Partnership  is
prohibited from borrowing for any purpose;  provided,  however, that the General
Partners or their affiliates are entitled to reimbursement,  at cost, for actual
expenses  incurred by the General  Partners or their affiliates on behalf of the
Partnership.  Affiliates of the General Partners from time to time incur certain
operating  expenses  on behalf  of the  Partnership  for  which the  Partnership
reimburses the affiliates without interest.

         In December 2002, the Partnership entered into an agreement to sell the
Property in Grand Prairie,  Texas. In February 2003, the  Partnership  sold this
Property to a third party and received sales proceeds of approximately $286,500,
resulting in a loss of approximately  $58,500, which the Partnership recorded as
of December 31, 2002.

         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
reinvestment in additional  Properties,  paying Partnership  expenses, or making
distributions  to the  partners.  At December  31,  2002,  the  Partnership  had
$1,913,142 invested in such short-term  investments as compared to $1,247,551 at
December 31, 2001.  The  increase in cash and cash  equivalents  at December 31,
2002,  as compared to December 31, 2001,  was primarily due to the fact that the
Partnership  had not  reinvested the sales proceeds it received from the sale of
the  Property in  Farragut,  Tennessee.  As of December  31,  2002,  the average
interest rate earned on the rental income  deposited in demand deposit  accounts
at commercial banks was approximately one percent annually.  The funds remaining
at December 31, 2002 after the payment of  distributions  and other  liabilities
will be used to invest in an additional  Property and to meet the  Partnership's
working capital 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 net 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.

         Due to low  operating  expenses  and  ongoing  cash flow,  the  General
Partners believe that the Partnership has sufficient working capital reserves at
this time. In addition,  because all leases of the Partnership's  Properties are
on a  triple-net  basis,  it is not  anticipated  that a  permanent  reserve for
maintenance  and  repairs  will be  established  at this  time.  To the  extent,
however,  that the  Partnership  has  insufficient  funds for such purpose,  the
General Partners will contribute to the Partnership an aggregate amount of up to
one percent of the offering proceeds for maintenance and repairs.

         The Partnership  generally  distributes cash from operations  remaining
after the  payment of the  operating  expenses,  to the extent  that the General
Partners  determine  that such funds are  available for  distribution.  Based on
current and anticipated  future cash from operations,  the Partnership  declared
distributions to the Limited Partners of $3,150,004, for each of the years ended
December 31, 2002, 2001, and 2000, respectively.  This represents a distribution
of $0.90 per Unit for each of the years ended December 31, 2002, 2001, and 2000,
respectively.  No  distributions  were made to the General  Partners  during the
years ended  December 31, 2002,  2001,  and 2000. No amounts  distributed to the
Limited  Partners  for the years ended  December 31, 2002,  2001,  or 2000,  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.

         During 2000, the General  Partners waived their right to receive future
distributions  from the Partnership,  including both  distributions of operating
cash flow and  distributions  of  liquidation  proceeds,  to the extent that the
cumulative amount of such distributions  would exceed the balance in the General
Partners'  capital  account as of December  31, 1999.  Accordingly,  the general
partners were not  allocated any net income during the years ended  December 31,
2002, 2001 and 2000.

         As of December  31, 2002 and 2001,  the  Partnership  owed  $16,426 and
$5,878,  respectively,  to affiliates for operating  expenses and accounting and
administrative  services.  As of March 10, 2003, the  Partnership had reimbursed
the  affiliates  these  amounts.  Other  liabilities,   including  distributions
payable, were $863,096 at December 31, 2002, as compared to $861,640 at December
31, 2001. The General  Partners  believe the  Partnership has sufficient cash on
hand to meet current working capital needs.

Long-Term Liquidity

         The  Partnership  has no long-term  debt or other  long-term  liquidity
requirements.

Critical Accounting Policies

         The  Partnership's  leases are  accounted  for under the  provisions of
Statement of Accounting Standard No. 13, "Accounting for Leases" ("FAS 13"), and
have been  accounted  for using  either the direct  financing  or the  operating
method.  FAS 13 requires  management to estimate the economic life of the leased
property,  the residual  value of the leased  property and the present  value of
minimum lease payments to be received from the tenant.  In addition,  management
assumes  that all  payments  to be  received  under its leases are  collectible.
Changes in  management's  estimates or assumption  regarding  collectibility  of
lease  payments  could  result  in a change in  accounting  for the lease at the
inception of the lease.

         The Partnership  accounts for its  unconsolidated  joint ventures using
the equity method of accounting. Under generally accepted accounting principles,
the equity method of accounting is  appropriate  for entities that are partially
owned by the  Partnership,  but for which  operations of the investee are shared
with other partners.  The  Partnership's  joint venture  agreements  require the
consent of all partners on all key  decisions  affecting  the  operations of the
underlying Property.

         Management  reviews the  Partnership's  Properties  and  investments in
unconsolidated  entities  periodically  for  impairment  at least once a year or
whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable.  The assessment is based on the carrying amount
of the  Property  or  investment  at the date it is  tested  for  recoverability
compared to the sum of the estimated  future cash flows  expected to result from
its operation and sale through the expected holding period.  If an impairment is
indicated, the asset is adjusted to its estimated fair value.

         When the Partnership makes the decision to sell or commits to a plan to
sell a  Property  within  one  year,  its  operating  results  are  reported  as
discontinued operations.

Results of Operations

Comparison of year ended December 31, 2002 to year ended December 31, 2001

         Total rental  revenues were  $1,841,581  during the year ended December
31, 2002, as compared to $1,897,733 during the same period of 2001. The decrease
in rental  revenues  during 2002 was partially due to the 2001 and 2002 sales of
several  Properties.  The decrease was partially offset by the fact that between
December 2001 and September 2002 the  Partnership  reinvested a portion of these
sales proceeds in three additional Properties.

         Rental  revenues  during 2002 were also lower because the tenant of the
Property in Wildwood,  Florida,  ceased making  rental  payments and vacated the
Property in April 2001. In July 2001, the Partnership and the tenant  terminated
the lease and the Partnership  stopped  recording rental revenues.  In addition,
during 2002, the tenant of the Property in North Baltimore,  Ohio terminated the
lease, as permitted in the lease  agreement,  when a partial right of way taking
reduced  road access to the  restaurant.  The  General  Partners  are  currently
seeking  replacement  tenants for these Properties.  The lost revenues resulting
from the  vacant  Properties  will  have an  adverse  effect on the  results  of
operations of the Partnership, until the Partnership is able to re-lease or sell
them.

         During 2001, the Partnership collected and recognized as income $63,485
in lease  termination  income,  from the tenant of two Properties that were sold
during 2000 in consideration  for the Partnership  releasing the tenant from its
obligations under the terms of its lease.

         The Partnership also earned $37,146 in contingent  rental income during
the year ended  December 31, 2002, as compared to $19,780 during the same period
of 2001.  Contingent  rental  income was higher  during 2002,  as a result of an
increase in gross sales of certain restaurant  Properties  requiring the payment
of contingent rental income. The Partnership also earned $88,513 in interest and
other income  during the year ended  December  31, 2002,  as compared to $88,147
during the same period of 2001.

         The Partnership  also earned  $1,199,146 in income  attributable to net
income earned by joint ventures in which the Partnership is a co-venturer during
the year ended December 31, 2002, as compared to $753,457 during the same period
of 2001.  Net income earned by joint  ventures was higher during 2002  partially
because CNL Restaurant  Investments III Joint Venture,  in which the Partnership
owns a 50% interest,  Ashland Joint  Venture,  in which the  Partnership  owns a
27.33%  interest,  and the  Partnership and CNL VIII, as  tenants-in-common,  in
which the  Partnership  owns a 34%  interest,  each sold one  Property,  and CNL
Restaurant  Investments II Joint Venture,  in which the Partnership owns a 45.2%
interest, sold two Properties.  These sales resulted in a net gain of $1,330,172
to the joint  ventures.  During 2002,  the majority of these net sales  proceeds
were  reinvested,   either  by  the  joint  ventures  or  Partnership  in  other
Properties, as described above.

         During 2002, four of the Partnership's lessees, Carrols Corp., Flagstar
Enterprises,  Inc.,  Burger  King Corp,  and  Golden  Corral  Corporation,  each
contributed more than ten percent of the Partnership's total rental revenues and
mortgage interest income  (including the Partnership's  share of rental revenues
from joint ventures and Properties owned as  tenants-in-common).  As of December
31,  2002,   Carrols  Corp.  was  the  lessee  under  leases  relating  to  nine
restaurants,  Flagstar Enterprises, Inc. was the lessee under leases relating to
three restaurants, Burger King Corp. was the lessee under leases relating to the
nine  restaurants  and Golden  Corral  Corporation  was the lessee  under leases
relating to three  restaurants.  It is  anticipated  that,  based on the minimum
rental  payments  required by the leases,  Carrols Corp.  Burger King Corp.  and
Golden Corral Corporation will each continue to contribute more than ten percent
of the  Partnership's  rental  revenues in 2003.  In addition,  four  Restaurant
Chains, Burger King, Hardee's,  Shoney's,  and Golden Corral, each accounted for
more than ten percent of the Partnership's rental revenues and mortgage interest
during 2002 (including the Partnership's share of the rental revenues from joint
ventures and Properties owned as tenants-in-common).  In 2003, it is anticipated
that these four  Restaurant  Chains each will  continue to account for more than
ten percent of the total rental  revenues to which the  Partnership  is entitled
under the terms of its leases. Any failure of these lessees or Restaurant Chains
could materially affect the Partnership's  income if the Partnership is not able
to re-lease the Properties in a timely manner.

         Operating expenses including  depreciation and amortization expense and
provision  for  write-down  of  assets,  were  $1,072,117  during the year ended
December 31,  2002,  as compared to  $1,100,049  during the same period of 2001.
Operating  expenses were higher during 2001  partially  because the  Partnership
recorded a provision for write-down of assets of approximately $400,800 relating
to the vacant  Property in  Wildwood,  Florida.  During  2002,  the  Partnership
recorded an  additional  provision  for  write-down  of assets of  approximately
$381,800  relating to the Properties in Wildwood,  Florida and North  Baltimore,
Ohio.  The tenants  vacated the Properties and ceased payment of rents under the
terms of their respective lease  agreements,  as described above. The provisions
represented  the difference  between the net carrying value of each Property and
their estimated fair values.  The decrease in operating expenses during 2002 was
also  partially  due to a  decrease  in the costs  incurred  for  administrative
expenses for  servicing the  Partnership  and its  Properties.  During the years
ended December 31, 2002 and 2001, the  Partnership  incurred  Property  expenses
such as real estate taxes, insurance and repairs and maintenance relating to the
vacant  Properties  in  Wildwood,   Florida  and  North  Baltimore,   Ohio.  The
Partnership  will  continue to incur these  expenses  until the  Properties  are
re-leased or sold.

         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.

         In connection  with the sales of the Properties in Huntsville,  Alabama
and  Greenville,  South  Carolina,  the  Partnership  recognized  a net  gain of
approximately $456,100 during 2002. These Properties were identified for sale as
of  December  31,  2001.  In  connection  with the sales,  during  2001,  of the
Properties  in  Bedford,  Indiana and Copley  Township,  Ohio,  the  Partnership
recognized a gain of approximately $298,800.

         During the year ended December 31, 2002, the Partnership identified two
Properties, one in Farragut, Tennessee and one in Grand Prairie, Texas, that met
the criteria of this standard and were classified as Discontinued  Operations in
the accompanying  financial  statements.  In December 2002, the Partnership sold
the  Property  in  Farragut,  Tennessee  and  received  net  sales  proceeds  of
approximately  $886,300,  resulting  in  a  gain  on  disposal  of  discontinued
operations of approximately $185,600. In connection with the anticipated sale of
the Property in Grand Prairie,  Texas, the Partnership  recorded a provision for
write-down of assets of approximately $58,500 during the year ended December 31,
2002.  The  Partnership  had also recorded a provision for  write-down of assets
relating to this  Property  during the year ended  December 31,  2001,  when the
tenant of this Property experience financial difficulties,  filed for bankruptcy
and rejected the lease relating to the Property.  The provisions represented the
difference  between the  Property's  net carrying  value and its estimated  fair
value.  In February 2003, the  Partnership  sold this Property.  The Partnership
intends to reinvest the net sales  proceeds  from these two sales in  additional
Properties.

         In addition,  during the year ended  December  31,  2002,  three of the
joint ventures and a tenancy in common in which the Partnership is a co-partner,
identified and sold five Properties that also met the criteria of this standard,
resulting in a net gain on disposal of assets of approximately $1,330,200 to the
joint  ventures  and tenancy in common.  The  Partnership  recorded its pro-rata
share of this gain as equity in earnings of joint ventures.  The majority of the
net  sales  proceeds  from  these  five  sales  were  reinvested  in  additional
Properties  and a  portion  of  the  net  sales  proceeds  was  returned  to the
Partnership  as a return  of  capital.  The  financial  results  of  these  five
Properties  were  classified as  Discontinued  Operations in the condensed joint
venture  financial  information  presented in the footnotes to the  accompanying
financial  statements.  The  Partnership's  pro-rata  share of these  amounts is
included in equity in earnings of joint ventures in the  accompanying  financial
statements

Comparison of year ended December 31, 2001 to year ended December 31, 2000

         Total rental  revenues were  $1,897,733  during the year ended December
31, 2001, as compared to $2,268,511 during the same period of 2000. The decrease
in  rental  revenues  during  2001 was  partially  due to the  sales of  several
Properties  in 2001 and  2000.  During  2001,  the  tenant  of the  Property  in
Wildwood,  Florida,  ceased making  rental  payments and vacated the Property in
April 2001, as described above.  Rental revenues were higher during 2000 because
the Partnership  collected and recognized,  as income, past due rental and other
amounts  relating to the  Properties in Bluffton and Alliance,  Ohio.  These two
Properties were sold during 2000.

         The Partnership also earned $19,780, in contingent rental income during
the year ended  December 31, 2001, as compared to $65,269 during the same period
of 2000. Contingent rental income was lower during 2001 because of a decrease in
gross sales of certain restaurant Properties requiring the payment of contingent
rental income.  The Partnership also earned $88,147 in interest and other income
during the year ended  December 31, 2001, as compared to $57,722 during the same
period of 2000.  Interest and other  income were higher  during 2001 because the
Partnership  earned interest from the two mortgage note receivables  relating to
the 2000 sales of the Properties in Bluffton and Alliance, Ohio.

         The Partnership  earned  $753,457 in income  attributable to net income
earned by joint ventures during the year ended December 31, 2001, as compared to
$674,930 during the same period of 2000. Net income earned by joint ventures was
higher during 2001 partially  because the Partnership  acquired an interest in a
Property in Libertyville,  Illinois, as tenants-in-common with affiliates of the
General Partners in August 2000. In addition,  in June 2001, the Partnership and
CNL Income Fund VI,  Ltd.,  as  tenants-in-common,  sold the Property in Dublin,
California,  in which the Partnership owned a 25% interest  resulting in a gain,
to the tenancy in common of approximately $158,100. The Partnership received its
pro-rata  share  of the net  sales  proceeds  from  the  sale  as a  liquidating
distribution.  In  July  2001,  the  Partnership  reinvested  a  portion  of the
liquidating  distribution in an additional Property,  as tenants-in-common  with
CNL Income Fund VI, Ltd. and CNL Income Fund XVII,  Ltd.  Each of the CNL Income
Funds is a Florida limited partnership and an affiliate of the General Partners.

         Operating expenses, including depreciation and amortization expense and
provision  for  write-down  of assets,  were  $1,100,049,  during the year ended
December  31,  2001,  as compared  to  $567,919  during the same period of 2000.
Operating  expenses were higher during 2001 because the  Partnership  recorded a
provision for  write-down of assets of  approximately  $400,800  relating to the
Property in  Wildwood,  Florida.  The tenant  vacated  this  Property and ceased
payment of rents under the terms of its lease agreement, as described above. The
provision  represented  the  difference  between the net  carrying  value of the
Property at December 31, 2001 and its estimated fair value. In addition,  during
2001 and 2000 the  Partnership  incurred  Property  expenses such as real estate
taxes, insurance,  repairs and maintenance and legal fees relating to the vacant
Property.

         Operating  expenses  were also higher during 2001 due to an increase in
the costs incurred for administrative expenses for servicing the Partnership and
its Properties and due to higher state taxes in a state in which the Partnership
conducts business.

         During 2000, the  Partnership  incurred  $32,540 in  transaction  costs
related to the General Partners retaining financial and legal advisors to assist
them in evaluating  and  negotiating  the proposed  merger with APF. On March 1,
2000, the merger discussions were terminated.

         In  connection  with  the  sales  of the  Properties  in  Bluffton  and
Alliance,  Ohio the  Partnership  recognized a loss of $730,668  during the year
ended December 31, 2000.

         The  restaurant  industry  has been  relatively  resilient  during this
volatile time with steady performance during 2002. However, the industry remains
in a state of cautious optimism.  Restaurant  operators expect their business to
be better in 2003,  according to a nationwide  survey  conducted by the National
Restaurant  Association,   but  are  concerned  by  the  budget  deficits  being
experienced  by many states and the  potential  of new taxes on the  industry to
alleviate the situation.

         The  Partnership's  leases as of December  31,  2002,  in general,  are
triple-net  leases and  contain  provisions  that the General  Partners  believe
mitigate  the adverse  effect of  inflation.  Such  provisions  include  clauses
requiring the payment of percentage rent based on certain restaurant sales above
a specified  level and/or  automatic  increases in base rent at specified  times
during the term of the lease.  Inflation,  overall,  has had a minimal effect on
the results of  operations  of the  Partnership.  Continued  inflation may cause
capital  appreciation of the  Partnership's  Properties.  Inflation and changing
prices, however, also may have an adverse impact on the sales of the restaurants
and on potential capital appreciation of the Properties.

         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 considered 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
interests  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. Management believes
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 7A.  Quantitative and Qualitative Disclosures About Market Risk

         The Partnership  accepted two promissory  notes in conjunction with the
sale of two  Properties.  The General  Partners  believe that the estimated fair
value of the mortgage notes at December 31, 2002,  approximated  the outstanding
principal  amount.  The  Partnership  is exposed to equity  loss in the event of
adverse  changes in interest  rates.  The following  table presents the expected
cash flows of principal that are sensitive to these changes.

                                                  Mortgage Note
                                                   Fixed Rate
                                                ------------------

                         2003                         $  19,620
                         2004                            21,370
                         2005                            23,521
                         2006                            25,759
                         2007                            27,348
                         Thereafter                     343,162
                                                  ----------------

                                                      $ 460,780
                                                  ================


Item 8.  Financial Statements and Supplementary Data
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                                    CONTENTS






                                                                    Page

Report of Independent Certified Public Accountants                   21

Financial Statements:

     Balance Sheets                                                  22

     Statements of Income                                            23

     Statements of Partners' Capital                                 24

     Statements of Cash Flows                                     25-26

     Notes to Financial Statements                                27-41




<page>

               Report of Independent Certified Public Accountants



To the Partners
CNL Income Fund IX, Ltd.


In our opinion,  the accompanying  balance sheets and the related  statements of
income,  of partners'  capital and of cash flows present fairly, in all material
respects,  the financial position of CNL Income Fund IX, Ltd. (a Florida limited
partnership)  at December 31, 2002 and 2001,  and the results of its  operations
and its cash flows for each of the three years in the period ended  December 31,
2002 in conformity with accounting  principles  generally accepted in the United
States  of  America.  In  addition,  in our  opinion,  the  financial  statement
schedules listed in the index appearing under item 15(a)(2)  present fairly,  in
all  material  respects,   the  information  set  forth  therein  when  read  in
conjunction with the related financial  statements.  These financial  statements
and financial  statement  schedules are the  responsibility of the Partnership's
management;  our  responsibility  is to express  an  opinion on these  financial
statements and financial  statement  schedules based on our audits. We conducted
our audits of these statements in accordance with auditing  standards  generally
accepted in the United States of America, which require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence  supporting the amounts and  disclosures  in the financial  statements,
assessing the  accounting  principles  used and  significant  estimates  made by
management,  and evaluating the overall  financial  statement  presentation.  We
believe that our audits provide a reasonable basis for our opinion.

As  described in Note 1 to the  financial  statements,  on January 1, 2002,  the
Partnership   adopted  Statement  of  Financial   Accounting  Standard  No.  144
"Accounting for the Impairment or Disposal of Long-Lived Assets."




/s/ PricewaterhouseCoopers LLP


Orlando, Florida
January 31, 2003, except for Note 13, for which the date is February 28, 2003

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                                 BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                    December 31,
                                                                             2002                    2001
                                                                     ---------------------    -------------------

 <c>
                         ASSETS

Real estate properties with operating leases, net                         $   13,436,040          $  13,102,325
Net investment in direct financing leases                                      2,444,483              2,807,303
Real estate held for sale                                                        286,256              1,062,405
Investment in joint ventures                                                   7,337,667              7,324,599
Mortgage notes receivable                                                        464,352                482,406
Cash and cash equivalents                                                      1,913,142              1,247,551
Receivables, less allowance for doubtful accounts of
     $15,296 in 2001                                                              31,471                 32,171
Due from related parties                                                           6,265                  4,872
Accrued rental income                                                            505,561                785,025
Other assets                                                                      24,905                 10,520
                                                                     ---------------------    -------------------

                                                                          $   26,450,142          $  26,859,177
                                                                     =====================    ===================


            LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                                           $      25,394            $     7,190
Real estate taxes payable                                                          7,978                  7,853
Distributions payable                                                            787,501                787,501
Due to related parties                                                            16,426                  5,878
Rents paid in advance and deposits                                                42,223                 59,096
                                                                     ---------------------    -----------------------
         Total liabilities                                                       879,522                867,518

Commitments (Note 12)

Partners' capital                                                             25,570,620             25,991,659
                                                                     ---------------------    -----------------------

                                                                          $   26,450,142         $   26,859,177
                                                                     =====================    =======================
</TABLE>
                See accompanying notes to financial statements.
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                              STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                                                Year ended December 31,
                                                                       2002              2001               2000
                                                                  ---------------   ----------------   ---------------

 <c>
Revenues:
   Rental income from operating leases                              $ 1,533,555        $ 1,507,209       $ 1,761,432
   Earned income from direct financing leases                           308,026            390,524           507,079
   Contingent rental income                                              37,146             19,780            65,269
   Lease termination income                                                  --             63,485                --
   Interest and other income                                             88,513             88,147            57,722
                                                                  ---------------   ----------------   ---------------
                                                                      1,967,240          2,069,145         2,391,502
                                                                  ---------------   ----------------   ---------------
Expenses:
    General operating and administrative                                257,230            302,960           178,800
    Property expenses                                                    81,801             68,616            45,515
    State and other taxes                                                43,648             35,739            22,725
    Depreciation and amortization                                       307,610            291,935           288,339
    Provision for write-down of loss of assets                          381,828            400,799                --
    Transaction costs                                                        --                 --            32,540
                                                                  ---------------   ----------------   ---------------
                                                                      1,072,117          1,100,049           567,919
                                                                  ---------------   ----------------   ---------------

Income  Before  Gain  (Loss) on Sale of Assets  and Equity in
    Earnings of Joint Ventures                                          895,123            969,096         1,823,583

Gain (Loss) on Sale of Assets                                           456,143            298,795          (730,668 )

Equity in Earnings of Joint Ventures                                  1,199,146            753,457           674,930
                                                                  ---------------   ----------------   ---------------

Income from Continuing Operations                                     2,550,412          2,021,348         1,767,845
                                                                  ---------------   ----------------   ---------------

Discontinued Operations (Note 5):
    Income (loss) from discontinued operations                           (7,079 )          (29,442 )          82,935
    Gain on disposal of discontinued operations                         185,632                 --                --
                                                                  ---------------   ----------------   ---------------
                                                                        178,553            (29,442 )          82,935
                                                                  ---------------   ----------------   ---------------

Net Income                                                          $ 2,728,965        $ 1,991,906       $ 1,850,780
                                                                  ===============   ================   ===============

Income (Loss) Per Limited Partner Unit
    Continuing Operations                                             $    0.73          $    0.58         $    0.51
    Discontinued Operations                                                0.05              (0.01 )            0.02
                                                                  ---------------   ----------------   ---------------

    Total                                                             $    0.78          $    0.57         $    0.53
                                                                  ===============   ================   ===============

Weighted Average Number of Limited Partner Units
    Outstanding                                                       3,500,000          3,500,000         3,500,000
                                                                  ===============   ================   ===============
</TABLE>

                 See accompanying notes to financial statements.

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                         STATEMENTS OF PARTNERS' CAPITAL

                  Years Ended December 31, 2002, 2001 and 2000

<TABLE>
<CAPTION>

                                            General Partners                                Limited Partners
                                    ----------------------------- -----------------------------------------------------------
                                                     Accumulated                                  Accumulated     Syndication
                                    Contributions     Earnings    Contributions   Distributions     Earnings        Costs
                                    -------------    ------------ -------------   -------------   ------------   ------------

 <c>
Balance, December 31, 1999             $   1,000     $ 237,417   $ 35,000,000   $ (26,210,595 )    $ 23,611,159   $ (4,190,000 )

    Distributions to limited
       partners ($0.90 per limited
       partner unit)                          --            --             --      (3,150,004 )              --             --
    Net income                                --            --             --              --         1,850,780             --
                                     ------------   -----------  -------------  --------------    --------------  -------------

Balance, December 31, 2000                 1,000       237,417     35,000,000     (29,360,599 )      25,461,939     (4,190,000 )

    Distributions to limited
       partners ($0.90 per limited
       partner unit)                          --            --             --      (3,150,004 )              --             --
    Net income                                --            --             --              --         1,991,906             --
                                     ------------   -----------  -------------  --------------    --------------  -------------

Balance, December 31, 2001                 1,000       237,417     35,000,000     (32,510,603 )      27,453,845     (4,190,000 )

    Distributions to limited
       partners ($0.90 per limited
       partner unit)                          --            --             --      (3,150,004 )              --             --
    Net income                                --            --             --              --         2,728,965             --
                                     ------------   -----------  -------------  --------------    --------------  -------------

Balance, December 31, 2002             $   1,000     $ 237,417   $ 35,000,000   $ (35,660,607 )    $ 30,182,810   $ (4,190,000 )
                                     ============   ===========  =============  ==============    ==============  =============

</TABLE>
                See accompanying notes to financial statements.

      Total
 --------------

    $ 28,448,981



      (3,150,004 )
       1,850,780
   --------------

      27,149,757



      (3,150,004 )
       1,991,906
   --------------

      25,991,659



      (3,150,004 )
       2,728,965
   --------------

    $ 25,570,620
   ==============

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                               Year Ended December 31,
                                                                       2002               2001              2000
                                                                  ---------------    ---------------    --------------

 <c>
Increase (Decrease) in Cash and Cash Equivalents:

Cash Flows Provided by Operating Activities:
   Net income                                                        $ 2,728,965        $ 1,991,906       $ 1,850,780
                                                                  ---------------    ---------------    --------------
   Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation                                                    321,943            313,377           310,696
         Amortization of investment in direct financing
            leases                                                        80,601             71,154            69,297
         Amortization                                                         --              1,375             1,500
         Equity in earnings of joint ventures, net of
            distributions                                               (331,747 )          118,290           138,268
         Loss (gain) on sale of assets                                  (641,775 )         (298,795 )         730,668
         Provision for write-down of assets                              440,287            462,925                --
         Decrease (increase) in receivables                                  700            279,491          (205,220 )
         Decrease (increase) in interest receivable                          139                127            (3,838 )
         Decrease (increase) in due from related parties                  (1,393 )            3,963            (8,835 )
         Decrease (increase) in accrued rental income                     61,269             (4,216 )         (27,263 )
         Decrease (increase) in other assets                             (14,385 )           11,474              (547 )
         Increase (decrease) in accounts payable and
            real estate taxes payable                                     18,329            (25,854 )         (74,358 )
         Increase (decrease) in due to related parties                    10,548            (94,968 )          38,780
         Increase  (decrease)  in rents  paid in advance
            and deposits                                                 (16,873 )            5,484            24,139
                                                                  ---------------    ---------------    --------------
                 Total adjustments                                       (72,357 )          843,827           993,287
                                                                  ---------------    ---------------    --------------

Net Cash Provided by Operating Activities                              2,656,608          2,835,733         2,844,067
                                                                  ---------------    ---------------    --------------

    Cash Flows from Investing Activities:
      Proceeds from sale of assets                                     2,814,625          1,986,253           693,350
      Additions to real estate properties with
         operating leases                                             (1,992,232 )       (1,357,599 )              --
      Collections on mortgage notes receivable                            17,915             21,305                --
      Investment in joint ventures                                    (1,165,235 )         (342,075 )        (494,581 )
      Return of capital from joint venture                               929,590                 --                --
      Liquidating distribution from joint venture                        554,324            424,600                --
                                                                  ---------------    ---------------    --------------
         Net cash provided by investing activities                     1,158,987            732,484           198,769
                                                                  ---------------    ---------------    --------------

    Cash Flows from Financing Activities:
      Distributions to limited partners                               (3,150,004 )       (3,150,004 )      (3,150,004 )
                                                                  --------------     ---------------    --------------
         Net cash used in financing activities                        (3,150,004 )       (3,150,004 )      (3,150,004 )
                                                                  ---------------    ---------------    --------------

Net Increase (Decrease) in Cash and Cash Equivalents                     665,591            418,213          (107,168 )

Cash and Cash Equivalents at Beginning of Year                         1,247,551            829,338           936,506
                                                                  ---------------    ---------------    --------------

Cash and Cash Equivalents at End of Year                             $ 1,913,142        $ 1,247,551        $  829,338
                                                                  ===============    ===============    ==============

</TABLE>

                See accompanying notes to financial statements.


<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                      STATEMENTS OF CASH FLOWS - CONTINUED

<TABLE>
<CAPTION>

                                                                             Year Ended December 31:
                                                                      2002             2001            2000
                                                                   ------------    -------------    ------------

 <c>
   Supplemental Schedule of Non-Cash Investing and
       Financing Activities:

   Mortgage notes accepted in exchange for sale of assets               $   --           $   --       $ 500,000
                                                                   ============    =============    ============

   Distributions declared and unpaid at December 31                  $ 787,501        $ 787,501       $ 787,501
                                                                   ============    =============    ============
</TABLE>
                See accompanying notes to financial statements.
<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000


1.       Significant Accounting Policies:

         Organization  and Nature of Business - CNL Income  Fund IX,  Ltd.  (the
         "Partnership") is a Florida limited  partnership that was organized for
         the purpose of acquiring both newly constructed and existing restaurant
         properties,  as well as properties  upon which  restaurants  were to be
         constructed,  which are leased  primarily  to operators of national and
         regional fast-food and family-style restaurant chains.

         The general partners of the Partnership are CNL Realty Corporation (the
         "Corporate  General  Partner"),  James M.  Seneff,  Jr.  and  Robert A.
         Bourne.  Mr.  Seneff and Mr.  Bourne are also 50%  shareholders  of the
         Corporate General Partner. The general partners have responsibility for
         managing the day-to-day operations of the Partnership.

         Real Estate and Lease generally - The  Partnership  records real estate
         property   acquisitions  of  land  and  buildings  at  cost,  including
         acquisition  and closing  costs.  Real estate  properties are leased to
         third parties  generally on a triple-net  basis,  whereby the tenant is
         responsible  for  all  operating  expenses  relating  to the  property,
         including property taxes, insurance, maintenance and repairs.

         During the years ended December 31, 2002, 2001, and 2000,  tenants paid
         directly to real estate  taxing  authorities  $261,700,  $257,100,  and
         $277,600,  respectively,  in real estate taxes in  accordance  with the
         terms of their triple net leases with the Partnership.

         The leases of the  Partnership  provide for base minimum  annual rental
         payments payable in monthly installments.  In addition,  certain leases
         provide for  contingent  rental  revenues  based on the tenants'  gross
         sales in  excess  of a  specified  threshold.  The  partnership  defers
         recognition  of  the  contingent  rental  revenues  until  the  defined
         thresholds  are met.  The leases  are  accounted  for using  either the
         direct financing or the operating  methods.  Such methods are described
         below:

                  Direct  financing  method - Leases  accounted  for  using  the
                  direct  financing  method are recorded at their net investment
                  (which at the inception of the lease generally  represents the
                  cost of the asset).  Unearned income is deferred and amortized
                  to income  over the lease  terms so as to  produce a  constant
                  periodic rate of return on the Partnership's investment in the
                  leases.  For the leases classified as direct financing leases,
                  the building portions of the property leases are accounted for
                  as  direct  financing  leases  while a  majority  of the  land
                  portion of these leases are operating leases.

                  Operating  method - Land and  building  leases  accounted  for
                  using the  operating  method are recorded at cost,  revenue is
                  recognized as rentals are earned and  depreciation  is charged
                  to operations as incurred.  Buildings are  depreciated  on the
                  straight-line  method over their estimated  useful lives of 30
                  years.  When  scheduled  rentals  vary  during the lease term,
                  income is recognized on a straight-line basis so as to produce
                  a constant periodic rent over the lease term commencing on the
                  date the property is placed in service.

                  Accrued  rental  income  represents  the  aggregate  amount of
                  income  recognized  on a  straight-line  basis  in  excess  of
                  scheduled rental payments to date.
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000


1.       Significant Accounting Policies - Continued:

         Substantially all leases are for 14 to 20 years and provide for minimum
         and contingent  rentals.  The lease options  generally allow tenants to
         renew the leases for two to four successive  five-year  periods subject
         to the same terms and conditions as the initial lease. Most leases also
         allow the tenant to purchase  the property at fair market value after a
         specified portion of the lease has elapsed.

         When  the  properties  are  sold,  the  related  cost  and  accumulated
         depreciation  for operating  leases and the net  investment  for direct
         financing leases,  plus any accrued rental income, are removed from the
         accounts and gains or losses from sales are  reflected  in income.  The
         general  partners of the Partnership  review  properties for impairment
         whenever events or changes in circumstances  indicate that the carrying
         amount of the assets may not be  recoverable  through  operations.  The
         general partners  determine whether an impairment in value has occurred
         by comparing the estimated future  undiscounted  cash flows,  including
         the  residual  value of the  property,  with the  carrying  cost of the
         individual  property.  If an impairment  is  indicated,  the assets are
         adjusted to the fair value.

         When the  collection  of amounts  recorded as rental or other income is
         considered  to be  doubtful,  a  provision  is  made  to  increase  the
         allowance for doubtful accounts. If amounts are subsequently determined
         to be  uncollectible,  the  corresponding  receivable and allowance for
         doubtful accounts are decreased accordingly.

         Investment in Joint  Ventures - The  Partnership's  investments in four
         joint  ventures  and  properties  in  Englewood,   Colorado;   Waldorf,
         Maryland; Montgomery, Alabama and Buffalo Grove, Illinois for which the
         properties are held as tenants-in-common with affiliates, are accounted
         for using the equity method since each joint venture agreement requires
         the  consent  of  all  partners  on all  key  decisions  affecting  the
         operations of the underlying property.

         Cash and Cash Equivalents - The Partnership considers all highly liquid
         investments  with a maturity of three months or less when  purchased to
         be cash  equivalents.  Cash  and cash  equivalents  consist  of  demand
         deposits at commercial  banks and money market funds (some of which are
         backed by government  securities).  Cash equivalents are stated at cost
         plus accrued interest,  which approximates  market value. Cash accounts
         maintained  on  behalf  of  the   Partnership  in  demand  deposits  at
         commercial  banks and money market funds may exceed  federally  insured
         levels; however, the Partnership has not experienced any losses in such
         accounts.

         Lease  Costs  -  Other  assets  include  lease  costs  associated  with
         negotiating  a new  lease  and are  amortized  over the term of the new
         lease using the straight-line method.

         Income Taxes - Under  Section 701 of the  Internal  Revenue  Code,  all
         income,  expenses and tax credit items flow through to the partners for
         tax  purposes.  Therefore,  no  provision  for federal  income taxes is
         provided in the accompanying  financial statements.  The Partnership is
         subject to certain state taxes on its income and property.

         Additionally,  for tax  purposes,  syndication  costs are  included  in
         Partnership equity and in the basis of each partner's  investment.  For
         financial reporting  purposes,  syndication costs represent a reduction
         of  Partnership  equity and a reduction in the basis of each  partner's
         investment.
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000


1.       Significant Accounting Policies - Continued:

         Use of Estimates - The general  partners of the Partnership have made a
         number of estimates and assumptions relating to the reporting of assets
         and liabilities and the disclosure of contingent assets and liabilities
         to prepare these  financial  statements in  conformity  with  generally
         accepted  accounting  principles.  The more significant areas requiring
         the use of  management  estimates  relate to the allowance for doubtful
         accounts  and future  cash flows  associated  with  long-lived  assets.
         Actual results could differ from those estimates.

         Reclassification   -  Certain  items  in  the  prior  years'  financial
         statements  have been  reclassified  to conform  to 2002  presentation,
         including a change in  presentation of the statement of cash flows from
         the  direct to the  indirect  method.  These  reclassifications  had no
         effect on total partners' capital, net income or cash flows.

         Statement  of  Financial  Accounting  Standards  No. 144 ("FAS  144") -
         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.

         FASB  Interpretation  No. 46 ("FIN 46") - 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 considered 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  interests  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.  Management  believes  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.


<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000


2.       Real Estate Properties with Operating Leases:

         Real estate properties with operating leases consisted of the following
         at December 31:

                                                    2002            2001
                                              ---------------   --------------

            Land                                $  6,555,203    $   6,510,989
            Buildings                              8,964,617        8,704,947
                                              ---------------   --------------
                                                  15,519,820       15,215,936
            Less accumulated depreciation         (2,083,780)      (2,113,611)
                                              ---------------   --------------

                                               $  13,436,040    $  13,102,325
                                              ===============   ==============

         During 2001, the Partnership sold its property in Bedford, Indiana, for
         which the building was classified as a direct  financing  lease, to the
         tenant,  in  accordance  with  the  purchase  option  under  the  lease
         agreement.  In November  2001,  the  Partnership  sold its  property in
         Copley Township,  Ohio to a third party.  The Partnership  received net
         sales  proceeds  of  approximately  $1,986,200,  from  these two sales,
         resulting in a total gain of approximately  $298,800. In December 2001,
         the  Partnership  reinvested  these net sales proceeds in a property in
         Blaine,  Minnesota. This property was acquired from CNL Funding 2001-A,
         LP, an affiliate of the general partners.

         During the year ended  December 31, 2001,  the  Partnership  recorded a
         provision for write-down of assets of approximately  $150,000  relating
         to the  property  in  Wildwood,  Florida.  The tenant of this  property
         vacated the property and ceased restaurant operations.  During the year
         ended  December  31,  2002,  the  Partnership  recorded  an  additional
         provision for write-down of assets of approximately $321,600. The total
         provision  represented the difference between the net carrying value of
         the property at December 31, 2002 and its estimated fair.

         During 2002, the Partnership  sold its properties in Greenville,  South
         Carolina,  and Huntsville,  Alabama, each to a third party and received
         net sales proceeds of approximately $1,928,300,  resulting in a gain of
         approximately  $456,100.  These properties had been identified for sale
         as of December 31, 2001. During 2002, the Partnership  reinvested these
         net sales  proceeds  in a property  in Dallas,  Texas and a property in
         Jackson,  Michigan,  at an approximate  total cost of  $1,992,200.  The
         Partnership  acquired each of these  properties  from affiliates of the
         general partners.

         During  2002,  the  tenant of the  property  in North  Baltimore,  Ohio
         terminated  its lease,  as  permitted  in the lease  agreement,  when a
         partial right of way taking reduced road access to the restaurant. As a
         result,  the  Partnership  reclassified  the  related  asset  from  net
         investment in direct  financing  leases to real estate  properties with
         operating  leases and recorded a provision for  write-down of assets of
         approximately $60,200. The provision represented the difference between
         the net  carrying  value of the  property at December  31, 2002 and its
         estimated fair value.

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000



2.       Real Estate Properties with Operating Leases - Continued:

         The following is a schedule of the future  minimum lease payments to be
         received on noncancellable operating leases at December 31, 2002:

                        2003                             $ 1,588,353
                        2004                               1,589,838
                        2005                               1,600,353
                        2006                               1,176,467
                        2007                                 960,999
                        Thereafter                         6,935,898
                                                    -----------------

                                                       $  13,851,908
                                                    =================

3.       Net Investment in Direct Financing Leases:

         The  following  lists the  components  of the net  investment in direct
         financing leases at December 31:
<TABLE>
<CAPTION>

                                                               2002           2001
                                                          --------------  --------------

 <c>
             Minimum lease payments receivable             $  3,238,857     $ 4,182,420
             Estimated residual values                        1,016,893       1,093,932
             Less unearned income                            (1,811,267)     (2,469,049)
                                                          --------------  --------------

             Net investment in direct financing leases     $  2,444,483     $ 2,807,303
                                                          ==============  ==============
</TABLE>

         During the year ended  December 31, 2001,  the  Partnership  recorded a
         provision of  approximately  $250,900 for an impairment in the carrying
         value of the property in Wildwood,  Florida, due to the tenant vacating
         the property and ceasing  operations.  The  provision  represented  the
         difference  between  the net  carrying  value of the  property  and its
         estimated  fair value.  In July 2001,  the  Partnership  and the tenant
         terminated its lease.  As a result,  the Partnership  reclassified  the
         building  portion of the asset from net investment in direct  financing
         leases  to  land  and  buildings  on  operating   leases.  No  loss  on
         termination of direct financing lease was recorded.

         In July 2001, the  Partnership  sold its property in Bedford,  Indiana,
         for  which  the  building  portion  had  been  classified  as a  direct
         financing lease. In connection therewith, the gross investment (minimum
         lease  payments  receivable  and  the  estimated  residual  value)  and
         unearned income relating to the building were removed from the accounts
         and the gain from the sale of the property was reflected in income.

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000



3.       Net Investment in Direct Financing Leases - Continued:

         The  following  is a schedule of future  minimum  lease  payments to be
         received on the direct financing leases at December 31, 2002:

                         2003                                $   349,478
                         2004                                    349,478
                         2005                                    349,478
                         2006                                    357,921
                         2007                                    385,159
                         Thereafter                            1,447,343
                                                        -----------------

                                                            $  3,238,857
                                                        =================

4.       Investment in Joint Ventures:

         The  Partnership  has a 45.2%,  50%, and 27.33% interest in the profits
         and losses of CNL Restaurant Investments II, CNL Restaurant Investments
         III, and Ashland Joint Venture,  respectively.  The remaining interests
         in these joint ventures are held by affiliates of the Partnership which
         have  the  same  general  partners.  The  Partnership  also  owns a 67%
         interest and a 29% interest in a property in Englewood,  Colorado,  and
         Montgomery, Alabama, each as tenants-in-common with an affiliate of the
         general partners.

         In June  2001,  the  Partnership  and CNL  Income  Fund  VI,  Ltd.,  as
         tenants-in-common,  sold the IHOP  property in Dublin,  California  for
         approximately  $1,743,300,  resulting  in a  gain,  to the  tenancy  in
         common, of approximately $158,100. The Partnership owned a 25% interest
         in this property.  The Partnership received approximately $424,600 as a
         liquidating  distribution  for its  pro-rata  share  of the  net  sales
         proceeds  received  by  the  tenancy  in  common.  In  July  2001,  the
         Partnership  reinvested  these  proceeds  in  a  property  in  Waldorf,
         Maryland as  tenants-in-common  with CNL Income  Fund VI, Ltd.  and CNL
         Income Fund XVII,  Ltd.,  each of which is an  affiliate of the general
         partners.  As of December 31, 2002,  the  Partnership  had  contributed
         approximately  $342,100  for  a  15%  interest  in  the  property.  The
         Partnership  and the affiliate  entered into an agreement  whereby each
         co-venturer  will share in the  profits  and losses of the  property in
         proportion to its applicable percentage interest.

         In September 2002, the  Partnership and CNL Income Fund VIII,  Ltd., as
         tenants-in-common,  sold the property in Libertyville, Illinois a third
         party and  received  net sales  proceeds  of  approximately  $1,630,400
         resulting  in a  gain,  to the  tenancy  in  common,  of  approximately
         $199,300.  The Partnership  owned a 34% interest in this property.  The
         Partnership   received   approximately   $554,  300  as  a  liquidating
         distribution  for its  pro-rata  share of the net  sales  proceeds.  In
         September 2002, the Partnership reinvested these proceeds in a property
         in Buffalo Grove,  Illinois, as a new tenancy in common with CNL Income
         Fund
<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2002, 2001, and 2000


4.       Investment in Joint Ventures - Continued:

         VIII,  Ltd. As of December 31, 2002, the  Partnership  had  contributed
         approximately  $540,200  for a  34%  interest  in  this  property.  The
         property was acquired from CNL Net Lease Investors,  L.P., an affiliate
         of the general partners. The Partnership and the affiliate entered into
         an  agreement  whereby each  co-venturer  will share in the profits and
         losses of the  property  in  proportion  to its  applicable  percentage
         interest.

         In May  2002,  CNL  Restaurant  Investments  III sold its  Burger  King
         property in Greensboro,  North Carolina, to the tenant and received net
         sales proceeds of approximately $1,143,500,  resulting in a gain to the
         joint  venture of  approximately  $371,500.  The  Partnership  received
         approximately  $571,700 as a return of capital from the joint  venture.
         In June 2002, the Partnership reinvested the majority of these proceeds
         in a joint venture  arrangement,  Katy Joint  Venture,  with CNL Income
         Fund XVII,  Ltd.,  an  affiliate  of the general  partners.  Katy Joint
         Venture acquired a property in Katy, Texas from CNL Funding 2001-A, LP,
         an affiliate of the general  partners.  The  Partnership and CNL Income
         Fund XVII, Ltd. entered into an agreement whereby each co-venturer will
         share in the profits and losses of the  property in  proportion  to its
         applicable   percentage   interest.   As  of  December  31,  2002,  the
         Partnership had contributed  approximately  $625,000 for a 60% interest
         in this joint venture.

         In June 2002,  Ashland  Joint  Venture sold its Burger King property in
         Ashland, New Hampshire to the tenant and received net sales proceeds of
         approximately  $1,472,900,  resulting in a gain to the joint venture of
         approximately  $500,900. In June 2002, the joint venture reinvested the
         majority of the net sales  proceeds from the sale of this property in a
         property in San Antonio, Texas. The joint venture acquired the property
         from CNL Funding 2001-A, LP, an affiliate of the general partners.  The
         Partnership  received  approximately $6,000 as a return of capital from
         the remaining net sales proceeds.

         In June 2002, CNL Restaurant  Investments  II, in which the Partnership
         owns a 45.2%  interest,  sold its  property  in  Columbus,  Ohio to the
         tenant and  received  net sales  proceeds of  approximately  $1,215,700
         resulting in a gain to the joint venture of approximately $448,300. The
         joint  venture  used the majority of the net sales  proceeds  from this
         sale to acquire a Property in Dallas, Texas. The joint venture acquired
         this property from CNL Funding 2001-A,  LP, an affiliate of the general
         partners. The Partnership received approximately $27,600 as a return of
         capital from the remaining  net sales  proceeds.  In addition,  in June
         2002,  CNL  Restaurant  Investments  II sold its  property  in Pontiac,
         Michigan to the tenant and received net sales proceeds of approximately
         $722,600  resulting  in a loss to the joint  venture  of  approximately
         $189,800.  The Partnership received  approximately $326,200 as a return
         of capital from the net sales proceeds.

         The financial  results relating to the properties in Greensboro,  North
         Carolina;  Ashland, New Hampshire;  Columbus, Ohio; Pontiac,  Michigan;
         and Libertyville,  Illinois are reflected as Discontinued Operations in
         the condensed financial information below.

         CNL Restaurant  Investments II and CNL Restaurant  Investments III each
         own and lease five  properties  to operators of national  fast-food and
         family-style restaurants.  Ashland Joint Venture and Katy Joint Venture
         each own and lease one property to operators of national  fast-food and
         family-style   restaurants.   The  Partnership   and   affiliates,   as
         tenants-in-common,  own and  lease  four  properties  to  operators  of
         national fast-food and family-style restaurants. The following presents
         the combined,  condensed  financial  information for the joint ventures
         and the properties held as tenants-in-common with affiliates at:

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


4.       Investment in Joint Ventures - Continued:
<TABLE>
<CAPTION>

                                                           December 31,                     December 31,
                                                               2002                             2001
                                                       ---------------------             --------------------

 <c>
              Real estate properties with operating         $    14,485,948                   $   10,649,307
                   leases, net
              Net investment in direct financing
                   leases                                         2,810,584                        1,856,650
              Real estate held for sale                                  --                        4,986,544
              Cash                                                   16,192                           50,255
              Receivables                                               518                           12,385
              Accrued rental income                                 261,781                           85,477
              Other assets                                           27,711                           24,302
              Liabilities                                             7,146                            2,033
              Partners' capital                                  17,595,588                       17,662,887

                                                                     Year Ended December 31,
                                                           2002              2001               2000
                                                      ----------------  ----------------  ------------------

             Revenues                                    $  1,760,740      $  1,421,037       $   1,440,910
             Expenses                                        (335,652 )        (267,865 )          (282,452 )
                                                      ----------------  ----------------  ------------------
                  Income from continuing operations         1,425,088         1,153,172           1,158,458
                                                      ----------------  ----------------  ------------------

             Discontinued operations:
                  Revenues                                    292,527           600,733             492,479
                  Expenses                                    (50,042 )        (146,618 )          (130,774 )
                  Gain on disposal of assets                1,330,172                --                  --
                                                      ----------------  ----------------  ------------------
                                                            1,572,657           454,115             361,705
                                                      ----------------  ----------------  ------------------

             Net Income                                  $  2,997,745      $  1,607,287       $   1,520,163
                                                      ================  ================  ==================
</TABLE>


         The Partnership recognized income of $1,199,146, $753,457, and $674,930
         during the year ended December 31, 2002, 2001, and 2000,  respectively,
         from these joint ventures and the properties held as  tenants-in-common
         with affiliates.

5.       Discontinued Operations:

         During 2002, the Partnership entered into two separate agreements, each
         with a third party to sell its  properties  in Farragut,  Tennessee and
         Grand  Prairie,  Texas.  In December  2002,  the  Partnership  sold the
         property in Farragut,  Tennessee  and  received  net sales  proceeds of
         approximately $886,300, resulting in a gain on disposal of discontinued
         operations of approximately $185,600. The Partnership  reclassified the
         asset  relating to the Grand  Prairie,  Texas property from real estate
         properties  with  operating  leases to real estate  held for sale.  The
         reclassified  asset was recorded at the lower of its carrying amount or
         fair value,  less cost to sell. In addition,  the  Partnership  stopped
         recording  depreciation  once the property was  identified for sale. In
         connection with the anticipated sale of this property,  the Partnership
         recorded a provision for write-down of assets of approximately  $58,500
         during the year ended  December 31,  2002.


<page>

                           CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)
                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


5.       Discontinued Operations - Continued:

         In February 2003,  the  Partnership  sold this property.  The financial
         results for these  properties are reflected as Discontinued  Operations
         in the accompanying financial statements.

         The  operating  results of the  discontinued  operations  for the above
         properties are as follows:

<TABLE>
<CAPTION>
                                                               Year Ended December 31,
                                                    2002                2001                 2000
                                              -----------------    ----------------    ------------------

 <c>
          Rental revenues                            $  91,459           $  92,796           $   107,825
          Expenses                                     (40,079 )           (60,112 )             (24,890 )
          Provision for write-down of
               assets                                  (58,459 )           (62,126 )                  --
          Gain (loss) on disposal of assets            185,632                  --                    --
                                              -----------------    ----------------    ------------------
          Income (loss) from discontinued
               operations                            $ 178,553           $ (29,442 )         $    82,935
                                              =================    ================    ==================
</TABLE>

6.       Mortgage Notes Receivable:

         In connection with the sale of its properties in Bluffton and Alliance,
         Ohio during 2000,  the  Partnership  accepted  promissory  notes in the
         principal sum of $300,000 and $200,000, respectively, collateralized by
         a  mortgage  on the  respective  property.  The  promissory  notes bear
         interest at a rate of nine percent per annum and are being collected in
         96 equal monthly installments (which include principal and interest) of
         $3,043 and $2,029 with balloon payments of a $184,652 and $123,102, due
         in December 2008.

         The mortgage  notes  receivable  consisted of the following at December
         31:

                                                   2002               2001
                                               -------------      ------------

               Principal balance                 $  460,780        $  478,695
               Accrued interest receivable            3,572             3,711
                                               -------------      ------------

                                                 $  464,352        $  482,406
                                               =============      ============

         The general partners believe that the estimated fair values of mortgage
         notes  receivable  at December 31, 2002,  approximate  the  outstanding
         principal  amount based on  estimated  current  rates at which  similar
         loans would be made to borrowers  with  similar  credit and for similar
         maturities.

<page>


                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


7.       Allocations and Distributions:

         From inception through December 31, 1999, generally, all net income and
         net losses of the Partnership, excluding gains and losses from the sale
         of  properties,  were  allocated  99% to the limited  partners  and one
         percent to the general  partners.  From inception  through December 31,
         1999,  distributions  of net cash  flow  were  made 99% to the  limited
         partners  and one percent to the  general  partners.  However,  the one
         percent of net cash flow to be distributed to the general  partners was
         subordinated  to receipt by the limited  partners of an aggregate,  ten
         percent,  cumulative,  noncompounded  annual  return on their  adjusted
         capital contributions (the "10% Preferred Return").

         From inception through December 31, 1999, generally, net sales proceeds
         from the sale of properties, not in liquidation of the Partnership,  to
         the extent distributed,  were distributed first to the limited partners
         in an  amount  sufficient  to  provide  them with  their 10%  Preferred
         Return,  plus the return of their adjusted capital  contributions.  The
         general partners then received,  to the extent previously  subordinated
         and unpaid,  a one percent  interest in all prior  distributions of net
         cash flow and a return of their  capital  contributions.  Any remaining
         sales proceeds were  distributed  95% to the limited  partners and five
         percent to the general partners.  Any gain from the sale of a property,
         not in liquidation of the Partnership was, in general, allocated in the
         same manner as net sales proceeds are distributable.  Any loss from the
         sale of a  property  was,  allocated  first,  on a pro rata  basis,  to
         partners  with  positive  balances  in  their  capital  accounts;   and
         thereafter, 95% to the limited partners and five percent to the general
         partners.

         Generally,  net sales  proceeds from a liquidating  sale of properties,
         will be used in the following order: (i) first to pay and discharge all
         of  the  Partnership's   liabilities  to  creditors,  (ii)  second,  to
         establish  reserves that may be deemed necessary for any anticipated or
         unforeseen liabilities or obligations of the Partnership,  (iii) third,
         to pay all of the Partnership's liabilities, if any, to the general and
         limited partners,  (iv) fourth,  after allocations of net income, gains
         and/or  losses,  to distribute  to the partners  with positive  capital
         accounts  balances,  in  proportion  to such  balances,  up to  amounts
         sufficient  to  reduce  such  positive   balances  to  zero,   and  (v)
         thereafter, any funds remaining shall then be distributed 95 percent to
         the limited partners and five percent to the general partners.

         Effective  January 1, 2000, the general  partners waived their right to
         receive  future  distributions  from the  Partnership,  including  both
         distributions  of operating cash flow and  distributions of liquidation
         proceeds,   to  the  extent   that  the   cumulative   amount  of  such
         distributions would exceed the balance in the general partners' capital
         account as of December  31,  1999.  Accordingly,  for years  commencing
         January  1,  2000 and  after,  the  Partnership's  net  income  will be
         allocated entirely among the limited partners.  However,  if losses are
         allocated to the general  partners in a year, an amount of income equal
         to the sum of such losses may be  allocated  to the general  partner in
         succeeding years. Accordingly,  the general partners were not allocated
         any net income during the years ended December 31, 2002, 2001 and 2000.

         During each of the years ended  December 31, 2002,  2001, and 2000, the
         Partnership   declared   distributions   to  the  limited  partners  of
         $3,150,004.  No distributions have been made to the general partners to
         date.
<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


8.       Income Taxes:

         The following is a reconciliation of net income for financial reporting
         purposes to net income for federal  income tax  purposes  for the years
         ended December 31:
<TABLE>
<CAPTION>

                                                                  2002               2001                2000
                                                             ---------------   ------------------   ----------------

 <c>
           Net income for financial reporting purposes         $ 2,728,965          $ 1,991,906        $ 1,850,780

           Effect timing differences relating to
              depreciation                                          12,896                2,178            (36,818 )

           Provision for write-down of assets                      440,287              462,925                 --

           Effect timing differences relating to allowance
              for doubtful accounts                                (15,296 )            (67,300 )           26,700

           Direct financing leases recorded as operating
              leases for tax reporting purposes                     80,601               71,154             69,297

           Effect timing differences relating to
              gains/losses on sales of real estate                (148,916 )             40,172            (30,636 )

           Effect timing differences relating to equity in
                earnings of joint ventures                        (392,715 )            (57,919 )          (18,522 )

           Deduction of transaction costs for tax reporting
                purposes                                                --                   --           (200,150 )

           Accrued rental income                                    61,269               (4,216 )          (27,263 )

           Rents paid in advance                                   (16,873 )              5,484             24,139
                                                             ---------------   ------------------   ----------------

           Net income for federal income tax purposes          $ 2,750,218          $ 2,444,384        $ 1,657,527
                                                             ===============   ==================   ================
</TABLE>
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


9.       Related Party Transactions:

         One of the individual general partners, James M. Seneff, Jr., is one of
         the principal  shareholders of CNL Holdings,  Inc. The other individual
         general partner, Robert A. Bourne, serves as President and Treasurer of
         CNL Financial  Group,  Inc., a wholly owned subsidiary of CNL Holdings,
         Inc. CNL APF  Partners,  LP, a wholly owned  subsidiary of CNL American
         Properties Fund, Inc. ("APF") served as the Partnership's advisor until
         January 1, 2002,  when it assigned its rights and  obligations  under a
         management  agreement to RAI Restaurants,  Inc.  (formerly known as CNL
         Restaurants  XVIII,  Inc.). RAI Restaurants,  Inc. ("the Advisor") is a
         wholly owned  subsidiary of APF. The  individual  general  partners are
         stockholders and directors of APF.

         The Advisor provides services  pursuant to a management  agreement with
         the Partnership. In connection therewith, the Partnership agreed to pay
         the Advisor an annual,  noncumulative,  subordinated  management fee of
         one percent of the sum of gross revenues from  properties  wholly owned
         by the  Partnership  and the  Partnership's  allocable  share  of gross
         revenues from joint ventures, but not in excess of competitive fees for
         comparable services. These fees are incurred and are payable only after
         the limited  partners  receive their 10% Preferred  Return.  Due to the
         fact that these fees are  noncumulative,  if the limited  partners have
         not received  their 10%  Preferred  Return in any  particular  year, no
         management  fees will be due or payable  for such year.  As a result of
         such threshold no management  fees were incurred during the years ended
         December 31, 2002, 2001 and 2000.

         The Advisor is also entitled to receive a deferred,  subordinated  real
         estate disposition fee, payable upon the sale of one or more properties
         based on the lesser of one-half of a competitive real estate commission
         or  three  percent  of the  sales  price  if  the  Advisor  provides  a
         substantial amount of services in connection with the sale. However, if
         the net sales  proceeds are  reinvested in a replacement  property,  no
         such  real  estate   disposition  fees  will  be  incurred  until  such
         replacement   property  is  sold  and  the  net  sales   proceeds   are
         distributed.  The  payment  of  the  real  estate  disposition  fee  is
         subordinated to receipt by the limited  partners of their aggregate 10%
         Preferred  Return,  plus  their  adjusted  capital  contributions.   No
         deferred,  subordinated real estate disposition fees have been incurred
         since inception.

         During the years ended  December 31, 2002,  2001, and 2000, the Advisor
         and its affiliate provided accounting and administrative  services. The
         Partnership  incurred  $175,724,  $198,105 and  $88,741,  for the years
         ended  December  31,  2002,  2001,  and  2000,  respectively,  for such
         services.

         In  December  2001,  the  Partnership  acquired a  property  located in
         Blaine,  Minnesota  from CNL Funding  2001-A,  LP, 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 and carry the property, including closing costs.

         In June 2002, the Partnership,  Ashland Joint Venture,  CNL Restaurants
         II Joint Venture,  and Katy Joint Venture each acquired a property from
         CNL Funding  2001-A,  LP, an  affiliate  of the general  partners.  CNL
         Funding  2001-A,  LP had  purchased and  temporarily  held title to the
         properties in order to facilitate the  acquisition of the properties by
         the Partnership and the joint ventures.  The purchase price paid by the
         Partnership  and the joint ventures  represented  the costs incurred by
         CNL Funding 2001-A, LP to acquire the properties.
<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


9.       Related Party Transactions - Continued:

         In  September  2002,  the  Partnership  acquired a property in Jackson,
         Michigan from CNL Net Lease Investors,  L.P. ("NLI").  In addition,  in
         September  2002,  the  Partnership  and CNL VIII acquired a property in
         Buffalo  Grove,  Illinois  from  NLI.  During  2002,  and  prior to the
         Partnership's  acquisition  of  these  properties,   CNL  Financial  LP
         Holding,  LP ("CFN") and CNL Net Lease  Investors GP Corp.  ("GP Corp")
         purchased  the  limited   partner's   interest  and  general  partner's
         interest, respectively, of NLI. Prior to this transaction, an affiliate
         of the Partnership's  general partners owned a 0.1% interest in NLI and
         served as a general  partner of NLI. The original  general  partners of
         NLI  waived  their  rights  to  benefit  from  this  transaction.   The
         acquisition  price paid by CFN for the limited  partner's  interest was
         based on the portfolio  acquisition price. The Partnership acquired the
         properties in Jackson,  Michigan and Buffalo  Grove,  Illinois at CFN's
         cost  and  did  not  pay  any  additional  compensation  to CFN for the
         acquisition of the  properties.  Each CNL entity is an affiliate of the
         Partnership's general partners.

         The amount  due to  related  parties  at  December  31,  2002 and 2001,
         totaled $16,426 and $5,878, respectively.

10.      Concentration of Credit Risk:

         The  following  schedule  presents  total rental  revenues and mortgage
         interest income from individual  lessees,  each  representing more than
         ten percent of the  Partnership's  total  rental  revenues and mortgage
         interest income (including the  Partnership's  share of rental revenues
         from joint  ventures  and  properties  held as  tenants-in-common  with
         affiliates) for each of the years ended December 31:
<TABLE>
<CAPTION>

                                                              2002              2001             2000
                                                         ---------------    -------------    --------------

 <c>
                   Golden Corral Corp.                        $ 534,672        $ 537,236         $ 548,289
                   Burger King Corp.                            525,778          643,939           637,301


                   Carrols Corp. and Texas Taco
                        Cabana, LP (under common
                        control of Carrols Corp.)               488,457          318,060           320,890
                   Flagstar Enterprises, Inc.                   289,914          361,770           363,872
</TABLE>

         In addition,  the following schedule presents total rental revenues and
         mortgage  interest  income  from  individual  restaurant  chains,  each
         representing  more than ten percent of the  Partnership's  total rental
         revenues and mortgage  interest  income  (including  the  Partnership's
         share of rental  revenues from joint  ventures and  properties  held as
         tenants-in-common  with affiliate) for each of the years ended December
         31:
<TABLE>
<CAPTION>

                                                             2002               2001             2000
                                                       -----------------    -------------    --------------

 <c>
                   Burger King                              $   978,433      $ 1,062,392       $ 1,062,122
                   Golden Corral Family
                       Steakhouse Restaurant                    534,672          537,236           548,289
                   Hardee's                                     357,105          429,975           433,587
                   Shoney's                                     312,009          391,170           505,821
</TABLE>
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


10.      Concentration of Credit Risk - Continued:

         Although  the  Partnership's   properties  are  geographically  diverse
         throughout the United States and the  Partnership's  lessees  operate a
         variety of restaurant concepts,  default by any one of these lessees or
         restaurant chains could significantly  impact the results of operations
         of the  Partnership  if the  Partnership  is not able to  re-lease  the
         properties in a timely manner.

11.      Selected Quarterly Financial Data:

         The following table presents  selected  unaudited  quarterly  financial
         data for each full quarter during the years ended December 31, 2002 and
         2001.
<TABLE>
<CAPTION>

                   2002 Quarter                First          Second          Third         Fourth         Year
         ---------------------------------- -------------  -------------  -------------- -------------  ------------

 <c>
         Continuing Operations (1):
              Revenues                         $ 482,615      $ 464,162      $  531,987     $ 488,476    $1,967,240
              Equity in earnings of joint
                ventures                         161,236        605,482         258,544       173,884     1,199,146
              Income from continuing
                operating                        445,231        798,867         862,440       443,874     2,550,412
         Discontinued operations (1):
              Revenues                            23,237         23,237          24,005        20,980        91,459
              Income from discontinued
                operations                        16,359         14,380          12,575       135,239       178,553

         Net Income                              461,590        813,247         875,015       579,113     2,728,965

         Net Income per limited partner
           unit:

              Continuing operations             $   0.13       $   0.23       $    0.25      $   0.12      $   0.73
              Discontinued operations                 --             --              --          0.05          0.05
                                            -------------  -------------  -------------- -------------  ------------
                  Total                         $   0.13       $   0.23       $    0.25      $   0.17      $   0.78
                                            =============  =============  ============== =============  ============
</TABLE>
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2002, 2001, and 2000


11.      Selected Quarterly Financial Data - Continued:
<TABLE>
<CAPTION>

                  2001 Quarter               First         Second          Third          Fourth           Year
         -------------------------------- ------------- -------------- --------------  --------------   ------------

 <c>
         Continuing Operations (1):
              Revenues                       $ 600,490      $ 499,220     $  489,560      $  479,875     $2,069,145
              Equity in earnings of
                joint ventures                 170,153        219,479        180,658         183,167        753,457
              Income from continuing
                operations                     362,337        302,702        538,651         817,658      2,021,348
         Discontinued operations (1):
              Revenues                          13,248         33,230         23,239          23,079         92,796
              Income from discontinued
                operations                       7,283         (4,426 )      (49,133 )        16,834        (29,442 )

         Net Income                            369,620        298,276        489,518         834,492      1,991,906

         Net Income (Loss) per limited
           partner unit:

              Continuing operations           $   0.11       $   0.09      $    0.15       $    0.23       $   0.58
              Discontinued operations               --             --          (0.01 )            --          (0.01 )
                                          ------------- -------------- --------------  --------------   ------------
                  Total                       $   0.11       $   0.09      $    0.14       $    0.23       $   0.57
                                          ============= ============== ==============  ==============   ============
</TABLE>

(1)      Certain items in the quarterly financial data have been reclassified to
         conform to the 2002 presentation.  This  reclassification had no effect
         on total net income.  The results of operations  relating to properties
         that were either  disposed of or were classified as held for sale as of
         December  31, 2002 are  reported  as  discontinued  operations  for all
         periods  presented.  The results of  operations  relating to properties
         that  were  identified  for  sale as of  December  31,  2001  but  sold
         subsequently are reported as continuing operations.

12.      Commitment:

         In December  2002,  the  Partnership  entered into an agreement  with a
         third party to sell the Denny's property in Grand Prairie, Texas.

13.      Subsequent Event:

         In February 2003, the  Partnership  sold the Property in Grand Prairie,
         Texas to a third party and  received  sales  proceeds of  approximately
         $286,500,  resulting  in a loss of  approximately  $58,500,  which  the
         Partnership recorded as of December 31, 2002.

<page>
Item 9. Changes in and Disagreements with Accountants on Accounting and
        Financial Disclosure

         None.


                                    PART III


Item 10.  Directors and Executive Officers of the Registrant

         The General Partners of the Registrant are James M. Seneff, Jr., Robert
A.  Bourne  and CNL  Realty  Corporation,  a Florida  corporation.  The  General
Partners  manage  and  control  the  Partnership's   affairs  and  have  general
responsibility   and  the  ultimate  authority  in  all  matters  affecting  the
Partnership's  business.  The  Partnership  has  available  to it the  services,
personnel and experience of CNL American Properties Fund, Inc. ("APF"), CNL Fund
Advisors, Inc., CNL Financial Group, Inc. and their affiliates, all of which are
affiliates of the General Partners.

         James M. Seneff, Jr., age 56. Since 1971, Mr. Seneff has been active in
the  acquisition,  development,  and  management  of real estate  projects  and,
directly or through an  affiliated  entity,  has served as a general  partner or
co-venturer in over 100 real estate  ventures.  These ventures have involved the
financing,  acquisition,   construction,  and  leasing  of  restaurants,  office
buildings,  apartment  complexes,  hotels, and other real estate. Mr. Seneff has
served as Director  and  Chairman of the Board of APF, a public,  unlisted  real
estate  investment  trust,  since 1994.  Mr.  Seneff  served as Chief  Executive
Officer  of APF from 1994  through  August  1999,  and has  served  as  co-Chief
Executive  Officer of APF since  December 2000. Mr. Seneff served as Chairman of
the Board and Chief Executive Officer of CNL Fund Advisors,  Inc.,  formerly the
Partnership's advisor, until it merged with a wholly-owned  subsidiary of APF in
September  1999, and in June 2000, was re-elected to those positions of CNL Fund
Advisors, Inc. Mr. Seneff is a principal stockholder of CNL Holdings,  Inc., the
parent  company of CNL  Financial  Group,  Inc.  (formerly CNL Group,  Inc.),  a
diversified real estate company,  and has served as a Director,  Chairman of the
Board and  Chief  Executive  Officer  of CNL  Financial  Group,  Inc.  since its
formation in 1980.  CNL  Financial  Group,  Inc. is the parent  company,  either
directly or indirectly through subsidiaries,  of CNL Real Estate Services, Inc.,
CNL Capital Markets,  Inc., CNL Investment Company and CNL Securities Corp., all
of which are engaged in the  business of real estate  finance.  Mr.  Seneff also
serves as a Director,  Chairman of the Board and Chief Executive  Officer of CNL
Hospitality  Properties,  Inc., a public, unlisted real estate investment trust,
as well as, CNL  Hospitality  Corp.,  its advisor.  In addition,  he serves as a
Director,  Chairman of the Board and Chief  Executive  Officer of CNL Retirement
Properties,  Inc.,  a public,  unlisted  real  estate  investment  trust and its
advisor,  CNL  Retirement  Corp.  Since  1992,  Mr.  Seneff has also served as a
Director,  Chairman of the Board and Chief  Executive  Officer of Commercial Net
Lease Realty,  Inc., a public real estate investment trust that is listed on the
New York Stock Exchange.  Mr. Seneff has also served as a Director,  Chairman of
the Board and Chief Executive  Officer of CNL Securities  Corp.  since 1979; CNL
Investment  Company  since  1990;  and  CNL  Institutional  Advisors,   Inc.,  a
registered investment advisor for pension plans, since 1990. Mr. Seneff formerly
served  as a  Director  of First  Union  National  Bank of  Florida,  N.A.,  and
currently  serves as the  Chairman  of the Board of CNL  Bank,  an  independent,
state-chartered  commercial  bank. Mr. Seneff  previously  served on the Florida
State Commission on Ethics and is a former member and past Chairman of the State
of Florida Investment Advisory Council, which recommends to the Florida Board of
Administration  investments for various Florida employee  retirement  funds. The
Florida Board of Administration,  Florida's  principal  investment  advisory and
money  management  agency,  oversees the  investment of more than $60 billion of
retirement funds. Mr. Seneff received his degree in Business Administration from
Florida State University in 1968.

         Robert A.  Bourne,  age 55. Mr.  Bourne has  participated  as a general
partner  or  co-venturer  in over  100  real  estate  ventures  involved  in the
financing,  acquisition,   construction,  and  leasing  of  restaurants,  office
buildings,  apartment complexes,  hotels, and other real estate. Mr. Bourne is a
Director  of APF.  Mr.  Bourne  served as  President  of APF from  1994  through
February  1999. He also served as Treasurer  from  February 1999 through  August
1999  and from May  1994  through  December  1994.  He also  served  in  various
executive  positions  with CNL Fund  Advisors,  Inc.  prior to its merger with a
wholly-owned subsidiary of APF including,  President from 1994 through September
1997, and Director from 1994 through August 1999. Mr. Bourne serves as President
and  Treasurer of CNL  Financial  Group,  Inc.;  Director,  Vice Chairman of the
Board, and Treasurer , and from 1997 until June 2002 served as President, of CNL
Hospitality  Properties,  Inc., a public, unlisted real estate investment trust;
as well as, Director,  Vice Chairman of the Board, and Treasurer,  and from 1997
until June 2002 served as President,  of CNL Hospitality Corp., its advisor.  In
addition,  Mr.  Bourne  serves as  Director,  Vice  Chairman  of the Board,  and
Treasurer,  and from 1997 until June 2002 served as President, of CNL Retirement
Properties, Inc., a public, unlisted real estate investment trust; as well as, a
Director,  Vice Chairman of the Board,  and Treasurer,  and from 1997 until June
2002 served as President,  of its advisor,  CNL Retirement Corp. Mr. Bourne also
serves as a Director of CNL Bank. He has served as a Director  since 1992,  Vice
Chairman of the Board since February 1996, Secretary and Treasurer from February
1996 through  1997,  and  President  from July 1992 through  February  1996,  of
Commercial Net Lease Realty,  Inc., a public real estate investment trust listed
on the New York Stock  Exchange.  Mr. Bourne also serves as Director,  President
and Treasurer for various affiliates of CNL Financial Group, Inc. including, CNL
Investment Company, CNL Securities Corp. and CNL Institutional Advisors, Inc., a
registered  investment advisor for pension plans. Mr. Bourne began his career as
a certified public  accountant  employed by Coopers & Lybrand,  Certified Public
Accountants,  from 1971  through  1978,  where he attained  the  position of Tax
Manager in 1975.  Mr. Bourne  graduated  from Florida  State  University in 1970
where he received a B.A. in Accounting, with honors.

         Curtis B.  McWilliams,  age 47. Mr.  McWilliams  has served as Co-Chief
Executive  Officer of APF since  December  2000 and  previously  served as Chief
Executive  Officer from  September  1999  through  December  2000.  Prior to the
acquisition of CNL Fund Advisors,  Inc., Mr.  McWilliams  served as President of
APF from  February  1999 until  September  1999.  From February 1998 to February
1999, he served as Executive  Vice President of APF. Mr.  McWilliams  joined CNL
Financial  Group,  Inc. in April 1997 and served as an Executive  Vice President
from October 1997 until September 1999. In addition,  Mr.  McWilliams  served as
President  of CNL Fund  Advisors,  Inc.  and CNL  Financial  Services,  Inc.,  a
corporation  engaged in the business of real estate  financing,  from April 1997
until the  acquisition of such entities by  wholly-owned  subsidiaries of APF in
September  1999.  From  September  1983 through March 1997,  Mr.  McWilliams was
employed by Merrill  Lynch & Co. The  majority of his career at Merrill  Lynch &
Co.  was in the  Investment  Banking  division  where he  served  as a  Managing
Director.  Mr.  McWilliams  received  a  B.S.E.  in  Chemical  Engineering  from
Princeton University in 1977 and a Master of Business Administration degree with
a concentration in finance from the University of Chicago in 1983.

         Steven  D.  Shackelford,  age  39.  Mr.  Shackelford  was  promoted  to
Executive Vice President of APF in June 2000. He served as Senior Vice President
from September 1999 until his promotion in June 2000. Mr. Shackelford has served
as Chief  Financial  Officer  since January 1997 and has served as Secretary and
Treasurer of APF since September 1999. He also served as Chief Financial Officer
of CNL Fund Advisors,  Inc. from September  1996 to September  1999.  From March
1995 to July 1996, Mr.  Shackelford  was a senior manager in the national office
of Price  Waterhouse LLP where he was responsible  for advising  foreign clients
seeking to raise capital and a public listing in the United States.  From August
1992 to March  1995,  he was a  manager  in the  Paris,  France  office of Price
Waterhouse, serving several multi-national clients. Mr. Shackelford was an audit
staff and  senior  from  1986 to 1992 in the  Orlando,  Florida  office of Price
Waterhouse.  Mr.  Shackelford  received a Bachelor of Arts degree in Accounting,
with honors, and a Master of Business  Administration  degree from Florida State
University and is a certified public accountant.

Section 16(a) Beneficial Ownership Reporting Compliance

         Section  16(a) of the Exchange Act requires the General  Partners,  the
officers of the  corporate  General  Partner,  and persons who own more than ten
percent  of  a  registered  class  of  the   Partnership's   equity   securities
(collectively,  the  "Reporting  Persons"),  to file  reports of  ownership  and
changes in  ownership  on Forms 3, 4 and 5 with the SEC.  Reporting  Persons are
required by SEC regulation to furnish the  Partnership  with copies of all Forms
3, 4 and 5 that they file.

         Based  solely on the  General  Partners'  review of the  copies of such
forms the  Partnership  has  received and written  representations  from certain
Reporting  Persons  that they  were not  required  to file  Forms 5 for the last
fiscal year, the General  Partners  believe that all Reporting  Persons complied
with all filing  requirements  applicable  to them with respect to  transactions
during fiscal 2002.


Item 11.  Executive Compensation

         Other than as  described in Item 13, the  Partnership  has not paid and
does not intend to pay any executive compensation to the General Partners or any
of their affiliates.  There are no compensatory plans or arrangements  regarding
termination of employment or change of control.


Item 12.  Security Ownership of Certain Beneficial Owners and Management

         As of March 10,  2003,  no person was known to the  Registrant  to be a
beneficial owner of more than five percent of the Units.

         The following  table sets forth,  as of March 10, 2003,  the beneficial
ownership interests of the General Partners in the Registrant.
<TABLE>
<CAPTION>

                    Title of Class                           Name of Partner                 Percent of Class

 <c>
           General Partnership Interests                James M. Seneff, Jr.                           45%
                                                        Robert A. Bourne                               45%
                                                        CNL Realty Corporation                         10%
                                                                                                   --------
                                                                                                      100%
                                                                                                   ========
</TABLE>

         Neither the General  Partners,  nor any of their  affiliates,  owns any
interest in the Registrant, except as noted above.

         The Partnership does not have any equity compensation plans.


Item 13.  Certain Relationships and Related Transactions

         The  table  below   summarizes  the  types,   recipients,   methods  of
computation and amounts of compensation,  fees and distributions paid or payable
by the  Partnership  to the General  Partners and their  affiliates for the year
ended  December 31, 2002,  exclusive of any  distributions  to which the General
Partners or their  affiliates  may be entitled by reason of their  purchase  and
ownership of Units.
<TABLE>
<CAPTION>

                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
          and Recipient                        Method of Computation                  Ended December 31, 2002
----------------------------------     --------------------------------------      ------------------------------

 <c>
Reimbursement  to affiliates  for      Operating  expenses are reimbursed at       Accounting and
operating expenses                     the  lower  of  cost  or  90%  of the       administra-tive  services:
                                       prevailing  rate at which  comparable       $175,724
                                       services  could have been obtained in
                                       the     same     geographic     area.
                                       Affiliates  of the  General  Partners
                                       from  time  to  time  incur   certain
                                       operating  expenses  on behalf of the
                                       Partnership     for     which     the
                                       Partnership       reimburses      the
                                       affiliates without interest.

Annual, subordinated manage-           One  percent  of  the  sum  of  gross       $-0-
ment fee to affiliates                 operating  revenues  from  Properties
                                       wholly owned by the Partnership  plus
                                       the Partnership's  allocable share of
                                       gross  revenues of joint  ventures in
                                       which    the    Partnership    is   a
                                       co-venturer,  subordinated to certain
                                       minimum   returns   to  the   Limited
                                       Partners.  The  management  fee  will
                                       not  exceed   competitive   fees  for
                                       comparable   services.   Due  to  the
                                       fact    that     these    fees    are
                                       noncumulative,    if   the    Limited
                                       Partners have not received  their 10%
                                       Preferred  Return  in any  particular
                                       year, no management  fees will be due
                                       or payable for such year.


<page>
                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
         and Recipient                         Method of Computation                  Ended December 31, 2002
---------------------------------      --------------------------------------      ------------------------------

Deferred,    subordinated   real       A deferred,  subordinated real estate       $-0-
estate  disposition  fee payable       disposition  fee,  payable  upon sale
to affiliates                          of  one  or  more  Properties,  in an
                                       amount  equal  to the  lesser  of (i)
                                       one-half   of  a   competitive   real
                                       estate  commission,   or  (ii)  three
                                       percent  of the  sales  price of such
                                       Property  or  Properties.  Payment of
                                       such  fee   shall  be  made  only  if
                                       affiliates  of the  General  Partners
                                       provide  a   substantial   amount  of
                                       services in connection  with the sale
                                       of  a  Property  or  Properties   and
                                       shall  be   subordinated  to  certain
                                       minimum   returns   to  the   Limited
                                       Partners.  However,  if the net sales
                                       proceeds   are    reinvested   in   a
                                       replacement  Property,  no such  real
                                       estate   disposition   fee   will  be
                                       incurred   until   such   replacement
                                       Property  is sold  and the net  sales
                                       proceeds are distributed.

General   Partners'    deferred,       A deferred,  subordinated share equal       $-0-
subordinated       share      of       to   one   percent   of   Partnership
Partnership net cash flow              distributions   of  net  cash   flow,
                                       subordinated   to   certain   minimum
                                       returns to the Limited Partners.

General   Partners'    deferred,       A deferred,  subordinated share equal       $-0-
subordinated       share      of       to  five   percent   of   Partnership
Partnership  net sales  proceeds       distributions   of  such  net   sales
from  a  sale  or  sales  not in       proceeds,   subordinated  to  certain
liquidation of the Partnership         minimum   returns   to  the   Limited
                                       Partners.
<page>
                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
         And Recipient                         Method of Computation                  Ended December 31, 2002
---------------------------------      --------------------------------------      ------------------------------

General   Partners'   share   of       Distributions  of net sales  proceeds       $-0-
Partnership  net sales  proceeds       from   a    sale    or    sales    of
from  a   sale   or   sales   in       substantially      all     of     the
liquidation of the Partnership         Partnership's    assets    will    be
                                       distributed  in the  following  order
                                       or  priority:  (i) first,  to pay all
                                       debts   and    liabilities   of   the
                                       Partnership    and    to    establish
                                       reserves;  (ii)  second,  to Partners
                                       with   positive    capital    account
                                       balances,    determined   after   the
                                       allocation  of net income,  net loss,
                                       gain and loss,  in proportion to such
                                       balances,  up to  amounts  sufficient
                                       to reduce such balances to zero;  and
                                       (iii) thereafter,  95% to the Limited
                                       Partners   and  5%  to  the   General
                                       Partners.

</TABLE>

In June 2002, the Partnership,  Ashland Joint Venture,  CNL Restaurants II Joint
Venture,  and Katy Joint  Venture  each  acquired a  Property  from CNL  Funding
2001-A,  LP, an  affiliate  of the General  Partners  for an  aggregate  cost of
approximately  $4,563,000.  CNL Funding 2001-A, LP had purchased and temporarily
held title to the  properties  in order to  facilitate  the  acquisition  of the
properties by the Partnership and the joint ventures. The purchase price paid by
the  Partnership  and the joint ventures  represented  the costs incurred by CNL
Funding 2001-A, LP to acquire the properties. In September 2002, the Partnership
acquired a property  in Jackson,  Michigan  from CNL Net Lease  Investors,  L.P.
("NLI")  for an  aggregate  cost of  approximately  $961,400.  In  addition,  in
September  2002,  the  Partnership  and CNL VIII  acquired a property in Buffalo
Grove,  Illinois  from NLI for an aggregate  cost of  approximately  $1,588,800.
During 2002, and prior to the Partnership's acquisition of these properties, CNL
Financial  LP Holding,  LP ("CFN")  and CNL Net Lease  Investors  GP Corp.  ("GP
Corp") purchased the limited partner's interest and general partner's  interest,
respectively,   of  NLI.  Prior  to  this  transaction,   an  affiliate  of  the
Partnership's  general  partners  owned a 0.1%  interest  in NLI and served as a
general partner of NLI. The original general partners of NLI waived their rights
to benefit  from this  transaction.  The  acquisition  price paid by CFN for the
limited  partner's  interest was based on the portfolio  acquisition  price. The
Partnership  acquired the  properties  in Jackson,  Michigan and Buffalo  Grove,
Illinois at CFN's cost and did not pay any  additional  compensation  to CFN for
the  acquisition  of the  properties.  Each CNL  entity is an  affiliate  of the
Partnership's general partners.


<page>



Item 14.  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  Annual  Report  on Form  10-K 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 IV


Item 15.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)      The following documents are filed as part of this report.

         1.   Financial Statements

                  Report of Independent Certified Public Accountants

                  Balance Sheets at December 31, 2002 and 2001

                  Statements of Income for the years ended December 31, 2002,
                  2001, and 2000

                  Statements of Partners' Capital for the years ended December
                  31, 2002, 2001, and 2000

                  Statements of Cash Flows for the years ended December 31,
                  2002, 2001, and 2000

                  Notes to Financial Statements

         2.   Financial Statement Schedules

                  Schedule II -Valuation and Qualifying Accounts for the years
                  ended December 31, 2002, 2001 and 2000

                  Schedule III - Real Estate and Accumulated Depreciation at
                  December 31, 2002

                  Notes to Schedule III - Real Estate and Accumulated
                  Depreciation at December 31, 2002

                  Schedule IV - Mortgage Loans on Real Estate at December 31,
                  2002

                  All other Schedules are omitted as the required information is
                  inapplicable  or is presented in the  financial  statements or
                  notes thereto.

         3.   Exhibits

                3.1      Affidavit and Certificate of Limited Partnership of CNL
                         Income  Fund  IX,  Ltd.  (Included  as  Exhibit  3.1 to
                         Registration  Statement  No.  33-35049 on Form S-11 and
                         incorporated herein by reference.)

                4.1      Affidavit and Certificate of Limited Partnership of CNL
                         Income  Fund  IX,  Ltd.  (Included  as  Exhibit  3.1 to
                         Registration  Statement  No.  33-35049 on Form S-11 and
                         incorporated herein by reference.)

                4.2      Amended and Restated  Agreement of Limited  Partnership
                         of CNL Income Fund IX, Ltd. (Included as Exhibit 4.6 to
                         Post-Effective   Amendment   No.   1  to   Registration
                         Statement  No.  33-35049 on Form S-11 and  incorporated
                         herein by reference.)

                10.1     Management  Agreement  between CNL Income Fund IX, Ltd.
                         and CNL Investment Company (Included as Exhibit 10.1 to
                         Form  10-K  filed  with  the  Securities  and  Exchange
                         Commission on March 17, 1998, 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
                         Exchange Commission on August 9, 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  14,  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)      The  Registrant  filed no reports on Form 8-K during the period October
         1, 2002 through December 31, 2002.

(c)      Not applicable.

(d)      Other Financial Information

         The  Partnership is required to file audited  financial  information of
         its tenant,  Carrols  Corporation,  as a result of this tenant  leasing
         more than 20% of the  Partnership's  total  assets  for the year  ended
         December 31, 2002.  Carrols  Corporation  is a public company and as of
         the  date  hereof,  had not  filed  their  Form  10-K;  therefore,  the
         financial statements are not available to the Partnership to include in
         this filing. The Partnership will file this financial information under
         cover of a Form 10-K/A as soon as it is available.


<page>

                                   SIGNATURES


         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the  undersigned,  thereunto duly  authorized,  on the 24th day of
March, 2003.

                                              CNL INCOME FUND IX, LTD.

                                              By:CNL REALTY CORPORATION
                                                 General Partner

                                                 /s/ Robert A. Bourne
                                                 ---------------------------
                                                 ROBERT A. BOURNE, President


                                              By:ROBERT A. BOURNE
                                                 General Partner

                                                 /s/ Robert A. Bourne
                                                 ---------------------------
                                                 ROBERT A. BOURNE


                                              By:JAMES M. SENEFF, JR.
                                                 General Partner

                                                 /s/ James M. Seneff, Jr.
                                                 ---------------------------
                                                 JAMES M. SENEFF, JR.



         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
Registrant and in the capacities and on the dates indicated.
<TABLE>
<CAPTION>

               Signature                                  Title                                  Date


 <c>

/s/ Robert A. Bourne                     President,   Treasurer   and   Director            March 24, 2003
Robert A. Bourne                         (Principal   Financial  and  Accounting
                                         Officer)

/s/ James M. Seneff, Jr.                 Chief  Executive  Officer and  Director            March 24, 2003
James M. Seneff, Jr.                     (Principal Executive Officer)

</TABLE>
<page>
                    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 IX, Ltd.  (the
"registrant"), certify that:

         1. I have reviewed this annual report on Form 10-K of the registrant;

         2. Based on my  knowledge,  this  annual  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 annual report;

         3. Based on my knowledge, the financial statements, and other financial
            information  included in this annual  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 annual 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 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 annual 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 annual  report (the  "Evaluation
                     Date"); and

                  c. presented in this annual 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  functions):  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 annual 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:  March 24, 2003


/s/ James M. Seneff, Jr.
--------------------------
James M. Seneff, Jr.
Chief Executive Officer
<page>
                    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 IX, Ltd.  (the  "registrant")
certify that:

         1. I have reviewed this annual report on Form 10-K of the registrant;

         2. Based on my  knowledge,  this  annual  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 annual report;

         3. Based on my knowledge, the financial statements, and other financial
            information  included in this annual  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 annual 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 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 annual 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  annual  report  (the  "Evaluation
                   Date"); and

                c. presented  in this annual  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  functions):

                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 annual 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:  March 24, 2003


/s/ Robert A. Bourne
-------------------------
Robert A. Bourne
President and Treasurer
<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                  Years Ended December 31, 2002, 2001, and 2000
<TABLE>
<CAPTION>


                                                     Additions                           Deductions
                                          ---------------------------------    -------------------------------
                                                                                                          Collected
                                                                                                          or Deter-
                                   Balance at       Charged to       Charged to           Deemed          mined to       Balance
                                    Beginning       Costs and           Other           Uncollec-          be Col-       at End
  Year          Description          of Year         Expenses         Accounts            tible           lectible       of Year
----------    -----------------   --------------  ---------------  ----------------    -------------     ------------  ------------

 <c>
  2000        Allowance for
                  doubtful
                  accounts (a)        $  55,896          $    --        $   44,281 (b)       $   --         $ 17,581      $ 82,596
                                  ==============  ===============  ================    =============     ============  ============

  2001        Allowance for
                  doubtful
                  accounts (a)        $  82,596       $   46,688        $   99,179 (b)    $ 213,167 (c)       $   --      $ 15,296
                                  ==============  ===============  ================    =============     ============  ============

  2002        Allowance for
                  doubtful
                  accounts (a)        $  15,296          $    --           $    --        $  15,296 (c)       $   --        $   --
                                  ==============  ===============  ================    =============     ============  ============

</TABLE>

(a)      Deducted  from  receivables  and accrued  rental  income on the balance
         sheet.

(b)      Reduction of rental and other income.

(c)      Amounts written off as uncollectible.

<page>

                            CNL INCOME FUND IX, LTD.
                        (A Florida Limited Partnership)
            SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                               December 31, 2002
<TABLE>
<CAPTION>


                                                     Initial Cost           Acquisition
                                          ------------------------ -------------------
                            Encum-                    Buildings andImprove-   Carrying
                            brances          Land      Improvements ments      Costs
                           -------------- ----------- ------------ ---------  --------

 <C>
Properties the Parnership has
Invested in Under
Operating Leases:

    Baker's Square Restaurant:
      Blaine, Minnesota (g)    -            $567,339     $790,259         -         -

    Burger King Restaurants:
      Shelby, North Carolina (i-             289,663      554,268         -         -
      Maple Heights, Ohio      -             430,563      454,823         -         -
      Suwanee, Georgia         -             437,659            -         -         -
      Watertown, New York      -             360,181      529,594         -         -
      Carrboro, North Carolina -h) (j)       406,768      523,067         -         -
      Jackson, Michigan (l)    -             419,375      542,055         -         -

    Capt D's Restaurant
      Huntsville, Alabama      -             248,976      279,748         -         -

    Denny's Restaurants:
      North Baltimore, Ohio (m)-             133,187      282,219         -         -

    Golden Corral Family
       Steakhouse Restaurants:
       Brownsville, Texas      -             518,605      988,611         -         -
       Tyler, Texas            -             652,103      982,353         -         -
       Albany, Georgia         -             564,576    1,076,633         -         -

    Johnnies Restaurant:
      Wildwood, Florida (k)    -             420,416      451,506         -         -

    Shoney's Restaurants:
      Windcrest, Texas         -             445,983      670,370         -         -
      Grenada, Mississippi     -             335,001      454,723         -         -

    Taco Cabana Restaurants:
      Dallas, Texas (n)        -             485,612      545,192         -         -
                                          ----------- ------------ ---------  --------

                                          $6,716,007   $9,125,421         -         -
                                          =========== ============ =========  ========




Properties of Joint Venture in
    Which the Partnership has
    a 45.2% Interest and has
    Invested in Under
    Operating Leases:
      Taco Cabana Restaurant:
           Dallas, Texas (o)   -             633,492      513,931         -         -
      Burger King Restaurants:
           San Antonio, Texas  -             350,479      623,615         -         -
           Raceland, Louisiana -             174,019      986,879         -         -
           New Castle, Indiana -             264,239      662,265         -         -
           Hastings, Minnesota -             155,553      657,159         -         -
                                          ----------- ------------ ---------  --------

                                          $1,577,782   $3,443,849         -         -
                                          =========== ============ =========  ========


Properties of Joint Venture in
    Which the Partnership has
    a 50% Interest and has
    Invested in Under
    Operating Leases:
      Burger King Restaurants:
           Metairie, Louisiana -             429,883      342,455         -         -
           Lafayette, Louisiana-             350,932      773,129         -         -
           Nashua, New Hampshir-             514,815      838,536         -         -
           Pontiac, Illinois   -             203,095      719,226         -         -
           Dover, New Hampshire-             406,259      998,023         -         -
                                          ----------- ------------ ---------  --------

                                          $1,904,984   $3,671,369         -         -
                                          =========== ============ =========  ========

Property of Joint Venture in Which
    the Parntership has a 27.33%
    Interest and has Invested in
    Under an Operating Lease:
      Taco Cabana Restaurant:
           San Antonio, Texas (-)           $695,797     $647,181         -         -
                                          =========== ============ =========  ========

Property of Joint Venture in Which
    the Parntership has a 60%
    Interest and has Invested in
    Under an Operating Lease:
      Taco Cabana Restaurant:
           Katy, Texas (r)     -             623,066      418,676         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
     has a 67% Interest as
    Tenants-in-Common and has
    Invested in Under an Operating
    Lease:
      IHOP Restaurant:
           Englewood, Colorado -            $552,590            -         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
    has a 29% Interest as
    Tenants -in-Common and has
    Invested in Under an Operating
    Lease:
      IHOP Restaurant:
           Montgomery, Alabama -            $584,126            -         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
    has a 15.00% Interest as
    Tenants -in-Common and has
    Invested in Under an Operating
    Lease:
      Bennigan's Restaurant:
           Waldorf, Maryland   -            $968,984   $1,311,515         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
     has a 34% Interest as
    Tenants-in-Common and has
    Invested in Under an Operating
    Lease:
      IHOP Restaurant:
           Buffalo Grove, Illin-is (q)      $598,976            -         -         -
                                          =========== ============ =========  ========

Properties the Partnership has
   Invested in Under Direct
   Financing Leases:
    Burger King Restaurant:
      Suwanee, Georgia         -                   -     $330,541         -         -

    Hardee's Restaurants:
      Millbrook, Alabama       -             125,703      541,865         -         -
      Greenville, Tennessee    -             127,449      402,926         -         -
      Wooster, Ohio            -             137,427      537,227         -         -
      Auburn, Alabama          -              85,890      364,269         -         -
                                          ----------- ------------ ---------  --------
                                            $476,469   $2,176,828         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
    has a 67% Interest as Tenants-
    in-Common and has Invested
    In Under a Direct Financing Lease:
      IHOP Restaurant:
           Englewood, Colorado -                   -   $1,008,839         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
    has a 29% Interest as Tenants-
    in-Common and has Invested
    In Under a Direct Financing Lease:
      IHOP Restaurant:
           Montgomery, Alabama -                   -     $933,873         -         -
                                          =========== ============ =========  ========

Property in Which the Partnership
    has a 34% Interest as
    Tenants -in-Common and has
    Invested in a Direct Financing
    Lease:
      IHOP Restaurant:
           Buffalo Grove, Illin-is (q)             -     $989,820         -         -
                                          =========== ============ =========  ========


                                                                       Life on Which
                                                                       Depreciation in
               Carried at Close of Period (c)        Date              Latest Income
---------------------------------------
               Buildings and            Accumulated  of Con-  Date     Statement is
    Land       Improvements   Total     Depreciation structionAcquired   Computed
-------------  -----------  ----------- -----------  ------   ------   ------------






    $567,339     $790,259   $1,357,598     $28,537   1970     12/01        (b)


     289,663      554,268      843,931     107,228   1985     05/91        (i)
     430,563      454,823      885,386     175,533   1980     06/91        (b)
     437,659           (f)     437,659          (d)  1991     11/91        (d)
     360,181      529,594      889,775     196,603   1986     11/91        (b)
     406,768      523,067      929,835     101,192   1983     12/96        (i)
     419,375      542,056      961,431       8,091   1994     09/02        (b)


     248,977      279,748      528,725     100,963   1989     10/91        (b)


     133,187      282,219      415,406       6,108   1986     11/91        (m)



     518,605      988,611    1,507,216     380,277   1990     06/91        (b)
     652,103      982,353    1,634,456     377,870   1990     06/91        (b)
     564,576    1,076,633    1,641,209     136,702   1998     03/99        (b)


     259,611      290,701      550,312      28,986   1991     08/91        (k)


     445,983      670,370    1,116,353     254,496   1991     08/91        (b)
     335,001      454,723      789,724     170,594   1991     09/91        (b)


     485,612      545,192    1,030,804      10,600   1997     06/02        (b)
-------------  -----------  ----------- -----------

  $6,555,203   $8,964,617   $15,519,820 $2,083,780
=============  ===========  =========== ===========










     633,492      513,931    1,147,423       9,993   1992     06/02        (b)

     350,479      623,615      974,094     234,126   1986     09/91        (b)
     174,019      986,879    1,160,898     370,507   1988     09/91        (b)
     264,239      662,265      926,504     248,637   1988     09/91        (b)
     155,553      657,159      812,712     246,720   1990     09/91        (b)
-------------  -----------  ----------- -----------

  $1,577,782   $3,443,849   $5,021,631  $1,109,983
=============  ===========  =========== ===========








     429,883      342,455      772,338     122,815   1990     03/92        (b)
     350,932      773,129    1,124,061     277,267   1989     03/92        (b)
     514,815      838,536    1,353,351     300,725   1987     03/92        (b)
     203,095      719,226      922,321     257,936   1988     03/92        (b)
     406,259      998,023    1,404,282     357,921   1987     03/92        (b)
-------------  -----------  ----------- -----------

  $1,904,984   $3,671,369   $5,576,353  $1,316,663
=============  ===========  =========== ===========






    $695,797     $647,181   $1,342,978     $12,584   1994     06/02        (b)
=============  ===========  =========== ===========






     623,066      418,676    1,041,742       8,141   1994     06/02        (b)
=============  ===========  =========== ===========







    $552,590           (f)    $552,590          (d)  1996     07/97        (d)
=============               ===========







    $584,126           (f)    $584,126          (d)  1998     11/99        (d)
=============               ===========







    $968,984   $1,311,515   $2,280,499     $65,576   2001     07/01        (b)
=============  ===========  =========== ===========







    $598,976           (f)    $598,976          (d)  1987     09/02        (d)
=============               ===========





           -           (f)          (f)         (d)  1991     11/91        (d)


          (f)          (f)          (f)         (e)  1991     10/91        (e)
          (f)          (f)          (f)         (e)  1991     10/91        (e)
          (f)          (f)          (f)         (e)  1991     10/91        (e)
          (f)          (f)          (f)         (e)  1991     10/91        (e)
-------------
           -
=============






           -           (f)          (f)         (d)  1996     07/97        (d)
=============






           -           (f)          (f)         (d)  1998     11/99        (d)
=============







    $989,820           (f)          (f)         (d)  1987     09/02        (d)
=============
</TABLE>


<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                                  DEPRECIATION

                                December 31, 2002

(a)      Transactions in real estate and accumulated depreciation are summarized
         below.  The  balances  in 2001,  2000,  and 1999 have been  adjusted to
         reflect  the   reclassification   of   properties   accounted   for  as
         discontinued operations.
<TABLE>
<CAPTION>

                                                                                              Accumulated
                                                                              Cost            Depreciation
                                                                         ----------------   -----------------

 <c>
            Properties the Partnership has Invested
              in Under Operating Leases:

                 Balance, December 31, 1999                                 $ 15,332,108       $   1,706,721
                 Dispositions                                                   (722,068 )           (30,514 )
                 Provision for loss                                              (27,392 )                --
                 Depreciation expense                                                 --             286,839
                                                                         ----------------   -----------------

                 Balance, December 31, 2000                                   14,582,648           1,963,046
                 Acquisition                                                   1,357,598                  --
                 Dispositions                                                 (1,175,816 )          (139,995 )
                 Reclassified to operating lease                                 451,506                  --
                 Depreciation expense                                                 --             290,560
                                                                         ----------------   -----------------

                 Balance, December 31, 2001                                   15,215,936           2,113,611
                 Acquisitions                                                  1,992,232                  --
                 Dispositions                                                 (1,648,958 )          (337,441 )
                 Provision for loss                                             (321,609 )                --
                 Reclassified to operating lease                                 282,219                  --
                 Depreciation expense                                                 --             307,610
                                                                         ----------------   -----------------

                 Balance, December 31, 2002                                 $ 15,519,820        $  2,083,780
                                                                         ================   =================

            Property of Joint Venture in Which the Partnership
               has a 45.2% Interest and has Invested in Under
               an Operating Lease:

                 Balance, December, 31, 1999                                $  3,874,208         $   806,998
                 Depreciation expense                                                 --              97,664
                                                                         ----------------   -----------------

                 Balance, December 31, 2000                                    3,874,208             904,662
                 Depreciation expense                                                 --              97,664
                                                                         ----------------   -----------------

                 Balance, December 31, 2001                                    3,874,208           1,002,326
                 Acquisitions                                                  1,147,423                  --
                 Depreciation expense                                                 --             107,657
                                                                         ----------------   -----------------

                 Balance, December 31, 2002                                 $  5,021,631        $  1,109,983
                                                                         ================   =================
</TABLE>

<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                            DEPRECIATION - CONTINUED

                                December 31, 2002
<TABLE>
<CAPTION>


                                                                                           Accumulated
                                                                        Cost               Depreciation
                                                                   ----------------      ----------------

 <c>
          Properties   of  Joint   Venture   in  Which   the
            Partnership  has a 50% Interest and has Invested
            in Under Operating Leases:

               Balance, December 31, 1999                              $ 5,576,353             $  949,526
               Depreciation expense                                             --                122,379
                                                                   ----------------      ----------------

               Balance, December 31, 2000                                5,576,353              1,071,905
               Depreciation expense                                             --                122,379
                                                                   ----------------      ----------------

               Balance, December 31, 2001                                5,576,353              1,194,284
               Depreciation expense                                             --                122,379
                                                                   ----------------      ----------------

               Balance, December 31, 2002                              $ 5,576,353            $ 1,316,663
                                                                   ================      ================

          Property of Joint Venture in Which the
            Partnership has a 27.33% Interest and has
            Invested in Under an Operating Lease:

               Balance, December 31, 2001 (s)                              $    --                $    --
               Acquisition                                               1,342,978                     --
               Depreciation expense                                             --                 12,584
                                                                   ----------------      ----------------

               Balance, December 31, 2002                              $ 1,342,978             $   12,584
                                                                   ================      ================
</TABLE>
<page>

                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                            DEPRECIATION - CONTINUED

                                December 31, 2002


<TABLE>
<CAPTION>
                                                                                            Accumulated
                                                                         Cost              Depreciation
                                                                   -----------------     -----------------


 <c>
           Property  in  Which  the  Partnership  has  a  67%
             Interest as  Tenants-in-Common  and has Invested
             in Under an Operating Lease:

                Balance, December 31, 1999                               $  552,590                $    --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

                Balance, December 31, 2000                                  552,590                     --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

                Balance, December 31, 2001                                  552,590                     --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

                Balance, December 31, 2002                               $  552,590                $    --
                                                                   =================     =================

           Property in Which the Partnership has a 29%
             Interest as Tenants-in-Common and has Invested in
             Under an Operating Lease:

                Balance, December 31, 1999                                  $    --                $    --
                Acquisition                                                 584,126                     --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

                Balance, December 31, 2000                                  584,126                     --
                Depreciation expense (d)                                          --                    --
                                                                   -----------------     -----------------

                Balance, December 31, 2001                                  584,126                     --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

                Balance, December 31, 2002                              $   584,126              $      --
                                                                   =================     =================

           Property in Which the Partnership has a 34%
             Interest as Tenants-in-Common and has Invested in
             Under an Operating Lease:

                Balance, December 31, 2001 (j)                             $     --              $     --
                Acquisition (q)                                             598,976                     --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

                Balance, December 31, 2002                              $   598,976                      $
                                                                                                         --
                                                                   =================     =================

</TABLE>
<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                            DEPRECIATION - CONTINUED

                                December 31, 2002

<TABLE>
<CAPTION>

                                                                                            Accumulated
                                                                         Cost              Depreciation
                                                                   -----------------     -----------------

 <c>
           Property in Which the Partnership has a 15.00%
             Interest as Tenants-in-Common and has Invested
             in Under an Operating Lease:

                Balance, December 31, 2000                                 $     --              $      --
                Acquisition                                               2,280,499                     --
                Depreciation expense                                             --                 21,859
                                                                   -----------------     -----------------

                Balance, December 31, 2001
                                                                          2,280,499                 21,859
                Depreciation expense                                             --                 43,717
                                                                   -----------------     -----------------

                Balance, December 31, 2002                             $ 2,280,499              $   65,576
                                                                   =================     =================

           Property of Joint Venture in Which the Partnership
             has a 60.00% Interest and has Invested in Under
              an Operating Lease

                Balance, December 31, 2001                                 $     --              $      --
                Acquisition                                               1,041,742                     --
                Depreciation expense                                             --                  8,141
                                                                   -----------------     -----------------

                Balance, December 31, 2002                             $  1,041,742            $     8,141
                                                                   =================     =================

</TABLE>

(b)      Depreciation  expense is computed for buildings and improvements  based
         upon estimated lives of 30 years.

(c)      As of December 31, 2002, the aggregate cost of the Properties  owned by
         the  Partnership and joint ventures for federal income tax purposes was
         $18,878,784  and  $19,312,602,  respectively.  All  of the  leases  are
         treated as operating leases for federal income tax purposes.

(d)      The portion of the lease  relating to the building has been recorded as
         a direct financing lease. The cost of the building has been included in
         net investment in direct financing leases;  therefore,  depreciation is
         not applicable.

(e)      The  lease  for the land and  building  has been  recorded  as a direct
         financing lease. The cost of the land and building has been included in
         net investment in direct financing leases;  therefore,  depreciation is
         not applicable.

(f)      Certain components of the lease relating to land and building have been
         recorded as a direct  financing lease.  Accordingly,  costs relating to
         these components of this lease are not shown.

(g)      During the year ended  December 31, 2001, the  Partnership  purchased a
         real estate Property from CNL Funding  2001-A,  LP, an affiliate of the
         General Partners, for an aggregate cost of approximately $1,357,600.

(h)      This Property was exchanged for a Burger King Property previously owned
         and located in Woodmere, Ohio, during 1996.

(i)      Effective  August 1, 1998,  the lease for this  Property  was  amended,
         resulting in the  reclassification of the building portion of the lease
         to an operating  lease.  The building was recorded at net book value as
         of  August  1,  1998,  and is  being  depreciated  over  its  remaining
         estimated life of approximately 22 years.

(j)      During  the year  ended  December  31,  2000,  the  Partnership  and an
         affiliate of the General Partners,  as  tenants-in-common,  purchased a
         real estate  Property  from CNL BB Corp.,  an  affiliate of the General
         Partners,  for  an  aggregate  cost  of  approximately  $1,454,600.  In
         September  2002, the  Partnership and the affiliate sold this Property.
         As a result, the assets relating to the Property were reclassified from
         real estate with operating leases to real estate held for sale.

(k)      Effective  July 16, 2001,  the lease for this Property was  terminated,
         resulting in the  reclassification of the building portion of the lease
         to an operating  lease.  The building was recorded at net book value as
         of July 16, 2001, and is being depreciated over its remaining estimated
         life of approximately 20 years.

(l)      During the year ended  December 31, 2002, the  Partnership  purchased a
         real estate Property from CNL Net Lease Investors,  LP, an affiliate of
         the General Partners, for an aggregate cost of approximately $961,400.

(m)      Effective  August 1, 2002,  the lease for this  Property  was  amended,
         resulting in the  reclassification of the building portion of the lease
         to an operating  lease.  The building was recorded at net book value as
         of  August  1,  2002,  and is  being  depreciated  over  its  remaining
         estimated life of approximately 19 years.

(n)      During the year ended  December 31, 2002, the  Partnership  purchased a
         real estate Property from CNL Funding  2001-A,  LP, an affiliate of the
         General Partners, for an aggregate cost of approximately $1,030,800.

(o)      During the year ended December 31, 2002, CNL Restaurant Investments II,
         in which the Partnership owns a 45.2% interest, purchased a real estate
         Property  from CNL  Funding  2001-A,  LP, an  affiliate  of the General
         Partners, for an aggregate cost of approximately $1,147,400.

(p)      During the year ended  December 31, 2002,  Ashland  Joint  Venture,  in
         which the  Partnership  owns 27.33%  interest,  purchased a real estate
         Property  from CNL  Funding  2001-A,  LP, an  affiliate  of the General
         Partners, for an aggregate cost of approximately $1,343,000.

(q)      During  the year  ended  December  31,  2002,  the  Partnership  and an
         affiliate   purchased  a  real  estate  Property  from  CNL  Net  Lease
         Investors,  LP, an affiliate of the General Partners,  for an aggregate
         cost of approximately $1,588,800.

(r)      During the year ended December 31, 2002,  Katy Joint Venture,  in which
         the  Partnership  owns a 60% purchased a real estate  Property from CNL
         Funding  2001-A,  LP, an  affiliate  of the  General  Partners,  for an
         aggregate cost of approximately $1,041,800.

(s)      In June 2002,  Ashland Joint Venture,  in which the Partnership  owns a
         27.33%  interest,  sold its Property in Ashland,  New  Hampshire.  As a
         result,  the joint  venture  reclassified  the assets  relating to this
         Property from real estate with operating leases to real estate held for
         sale.

<page>
                            CNL INCOME FUND IX, LTD.
                         (A Florida Limited Partnership)

                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

                                December 31, 2002
<TABLE>
<CAPTION>

                                                                                                                  Principal
                                                                                                                    Amount
                                                                                                                   of Loans
                                                                                                                   Subject to
                                                                                                 Carrying          Delinquent
                                            Final        Periodic                Face           Amount of         Principal or
                        Interest          Maturity       Payment     Prior     Amount of         Mortgages        Description
                          Rate              Date          Terms      Liens     Mortgages            (1)             Interest
                       -----------    ------------------ ---------  -------   ------------   ---------------     --------------

 <c>
Denny's-
Alliance, OH
First Mortgage              9.00%       December 2008       (2)     $   --     $  200,000       $   185,741        $    --
                                                                   ========   ============   ===============     ==============

Denny's-
Bluffton, OH
First Mortgage              9.00%       December 2008       (3)     $   --     $  300,000       $   278,611        $    --
                                                                   ========   ============   ===============     ==============
</TABLE>


         (1) Carrying  amount  consists of  outstanding  principal  plus accrued
             interest. The tax carrying value of the notes are $464,352.

         (2) Monthly  payments of  principal  and  interest at an annual rate of
             9.00% with a balloon payment at maturity of $123,102.

         (3) Monthly  payments of  principal  and  interest at an annual rate of
             9.00%, with a balloon payment at maturity of $184,652.

         (4) The changes in the carrying amounts are summarized as follows:
<TABLE>
<CAPTION>

                                                                   2002              2001               2000
                                                              ---------------   ----------------   ----------------

 <c>
        Balance at beginning of period                            $  482,406         $  503,838            $    --
        New mortgage loans                                                --                 --            500,000
        Interest earned                                               42,802             44,496              3,838

        Collection of principal and interest                         (60,856 )          (65,928 )               --
                                                              ---------------   ----------------   ----------------

        Balance at end of period                                  $  464,352         $  482,406         $  503,838
                                                              ===============   ================   ================

</TABLE>


                                  EXHIBIT INDEX


Exhibit Number

(a)      Exhibits

           3.1      Affidavit  and  Certificate  of Limited  Partnership  of CNL
                    Income   Fund  IX,   Ltd.   (Included   as  Exhibit  3.1  to
                    Registration   Statement  No.  33-35049  on  Form  S-11  and
                    incorporated herein by reference.)

           4.1      Affidavit  and  Certificate  of Limited  Partnership  of CNL
                    Income   Fund  IX,   Ltd.   (Included   as  Exhibit  3.1  to
                    Registration   Statement  No.  33-35049  on  Form  S-11  and
                    incorporated herein by reference.)

           4.2      Amended and Restated Agreement of Limited Partnership of CNL
                    Income   Fund  IX,   Ltd.   (Included   as  Exhibit  4.6  to
                    Post-Effective Amendment No. 1 to Registration Statement No.
                    33-35049 on Form S-11 and incorporated herein by reference.)

           10.1     Management  Agreement  between CNL Income Fund IX, Ltd.  and
                    CNL  Investment  Company  (Included  as Exhibit 10.1 to Form
                    10-K filed with the  Securities  and Exchange  Commission on
                    March 17, 1998, 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  Exchange  Commission on
                    August 9, 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 14, 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.)
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                                  EXHIBIT 99.1

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                                  EXHIBIT 99.2