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, 2003

                                       OR

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

                       For the transition period from to

                         Commission file number 0-20016

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

         Florida 59-3004139
    (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 4,000,000 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 X, 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 September  9, 1991,  the  Partnership
offered  for  sale up to  $40,000,000  of  limited  partnership  interests  (the
"Units") (4,000,000 Units at $10 per Unit) pursuant to a registration  statement
on Form S-11 under the Securities Act of 1933, as amended,  effective  March 20,
1991.  The  offering  terminated  on March 18,  1992,  at which date the maximum
offering  proceeds of  $40,000,000  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
$35,200,000, and were used to acquire 47 Properties, including interests in nine
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, 2000, the Partnership  owned 35 Properties  directly
and owned 13  Properties  indirectly  through joint venture or tenancy in common
arrangements. During 2001, the Partnership reinvested a portion of the net sales
proceeds  from the 2000 sale of the Property in  Lancaster,  New York in a joint
venture arrangement, CNL VIII, X, XII Kokomo Joint Venture, with CNL Income Fund
VIII, Ltd. and CNL Income Fund XII, Ltd., each a Florida limited partnership and
an affiliate of the General  Partners,  to purchase  and hold one  Property.  In
addition,  during 2001, the Partnership and its joint venture partner liquidated
Peoria  Joint  Venture and the  Partnership  received  its pro rata share of the
liquidation  proceeds.  During the year ended December 31, 2002, the Partnership
reinvested the majority of the liquidation proceeds from Peoria Joint Venture in
a Property in Austin, Texas, as  tenants-in-common,  with CNL Income Fund XVIII,
Ltd.,  which is a Florida  limited  partnership  and an affiliate of the General
Partners.  In addition,  during 2002, the Partnership sold its Properties in San
Marcos,  Texas  and Ft.  Pierce,  Florida.  Also  during  2002,  CNL  Restaurant
Investments III, in which the Partnership owns a 50% interest, and Ashland Joint
Venture, in which the Partnership owns a 10.51% interest,  sold their respective
Properties  in  Greensboro,  North  Carolina and  Ashland,  New  Hampshire.  The
Partnership used the proceeds from the sale of the Property in San Marcos, Texas
and the  return of  capital  for its  pro-rata  share of the net sales  proceeds
relating to the Property in Greensboro,  North Carolina to acquire a Property in
Houston,  Texas.  Ashland  Joint  Venture used the proceeds from the sale of the
Property in Ashland,  New  Hampshire  to reinvest in a Property in San  Antonio,
Texas.  During 2003, the Partnership  used the majority of the proceeds from the
2002 sale of the  Property  in Ft.  Pierce,  Florida to invest in a Property  in
Tucker,  Georgia,  as  tenants-in-common,  with CNL Income Fund XIII,  Ltd., CNL
Income Fund XIV, Ltd.,  and CNL Income Fund XV, Ltd.,  affiliates of the General
Partners.  In  addition,  during 2003,  the  Partnership  and its joint  venture
partner  liquidated CNL Ocean Shores Joint Venture and the Partnership  received
its pro rata share of the liquidation  proceeds.  The General Partners intend to
reinvest the liquidation proceeds in an additional Property.  As of December 31,
2003,  the  Partnership  owned  47  Properties,   including  interests  in  nine
Properties owned by joint ventures in which the Partnership is a co-venturer and
four Properties owned with affiliates as tenants-in-common.  The Properties are,
in general,  leased on a triple-net  basis with the lessees  responsible for all
repairs and maintenance, property taxes, insurance and utilities.

         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 taxes. 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.


<PAGE>


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.  Generally,  the  leases of the  Properties  owned by the
Partnership,  the joint ventures in which the  Partnership is a co-venturer  and
the  Properties  owned  as  tenants-in-common  with  affiliates  of the  General
Partners  provide for initial  terms  ranging  from 10 to 20 years (the  average
being 17 years) and expire  between 2006 and 2023. The leases are generally on a
triple-net basis,  with the lessee  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  $28,800 to $218,200.  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 second 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  five
successive five-year renewal options subject to the same terms and conditions as
the initial lease.  Lessees of 36 of the  Partnership's  47 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 2003, the  Partnership  reinvested the majority of the net sales
proceeds from the 2002 sale of its Property in Ft. Pierce, Florida in a Property
in Tucker,  Georgia, as tenants-in-common,  with CNL Income Fund XIII, Ltd., CNL
Income Fund XIV, Ltd., and CNL Income Fund XV, Ltd. Each of the CNL Income Funds
is a Florida limited  partnership and an affiliate of the General Partners.  The
lease terms for this Property are  substantially  the same as the  Partnership's
other leases, as described above.

Major Tenants

         During 2003,  three  lessees (or groups of  affiliated  tenants) of the
Partnership and its consolidated joint venture,  (i) Golden Corral  Corporation,
(ii) Jack in the Box Inc. and Jack in the Box Eastern Division,  L.P. (which are
affiliated  entities under common control of Jack in the Box Inc.)  (hereinafter
referred to as "Jack in the Box Inc."), and (iii) Carrols  Corporation and Texas
Taco  Cabana,   LP  (which  are  affiliated   entities  under  common   control)
(hereinafter  referred to as ("Carrols Corp.")),  each contributed more than 10%
of the Partnership's  total rental revenues  (including rental revenues from the
Partnership's  consolidated  joint venture and the Partnership's  share of total
rental  revenues from  Properties  owned by  unconsolidated  joint  ventures and
Properties owned with affiliates of the General Partners as  tenants-in-common).
As of December 31, 2003,  Golden Corral  Corporation was the lessee under leases
relating to six  restaurants,  Jack in the Box Inc.  was the lessee under leases
relating to five  restaurants  and Carrols  Corp.  was the lessee  under  leases
related to six  restaurants.  It is anticipated that based on the minimum rental
payments  required by the  leases,  these three  lessees  each will  continue to
contribute more than 10% of the Partnership's  total rental revenues in 2004. In
addition,  four  Restaurant  Chains,  Golden  Corral  Buffet and Grill  ("Golden
Corral"),  Hardee's,  Burger King,  and Jack in the Box, each accounted for more
than 10% of the  Partnership's  total  rental  revenues  during 2003  (including
rental  revenues  from the  Partnership's  consolidated  joint  venture  and the
Partnership's   share  of  total  rental  revenues  from  Properties   owned  by
unconsolidated  joint  ventures  and  Properties  owned with  affiliates  of the
General  Partners as  tenants-in-common).  In 2004, it is anticipated that these
four  Restaurant  Chains each will  continue to account for more than 10% of the
total rental  revenues to which the  Partnership  is entitled under the terms of
the  leases.  Any  failure of these  lessees or  Restaurant  Chains  will have a
material  adverse  affect  on  the   Partnership's   operating  results  if  the
Partnership  is not able to re-lease the  Properties in a timely  manner.  As of
December  31,  2003,  no single  tenant or groups of  affiliated  tenants  lease
Properties with an aggregate carrying value in excess of 20% of the total assets
of the Partnership.



<PAGE>


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, 2003:
<TABLE>

                Entity Name              Year      Ownership               Partners                   Property
<S>     <C>    <C>    <C>    <C>    <C>    <C>

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

     Allegan Real Estate Joint           1992       88.26%      A third party partner            Allegan, MI
          Venture

     Ashland Joint Venture               1992       10.51%      CNL Income Fund IX, Ltd.         San Antonio, TX
                                                                CNL Income Fund XI, Ltd.

     Williston   Real   Estate   Joint   1993       40.95%      CNL Income Fund XII, Ltd.        Williston, FL
          Venture

     CNL  Income  Fund IV,  Ltd.,  CNL   1996       13.00%      CNL Income Fund IV, Ltd.         Clinton, NC
          Income  Fund VI,  Ltd.,  CNL                          CNL Income Fund VI, Ltd.
          Income Fund X, Ltd.  and CNL                          CNL Income Fund XV, Ltd.
          Income   Fund   XV,    Ltd.,
          Tenants in Common

     CNL Income  Fund III,  Ltd.,  CNL   1997        6.69%      CNL Income Fund III, Ltd. CNL    Miami, FL
          Income Fund VII,  Ltd.,  CNL                          Income Fund VII, Ltd.
          Income Fund X, Ltd.  and CNL                          CNL Income Fund XIII, Ltd.
          Income   Fund  XIII,   Ltd.,
          Tenants in Common

     CNL  VIII,  X, XII  Kokomo  Joint   2001       10.00%      CNL Income Fund VIII, Ltd.       Kokomo, IN
          Venture                                               CNL Income Fund XII, Ltd.

     CNL Income  Fund X, Ltd.  and CNL   2002       81.65%      CNL Income Fund XVIII, Ltd.      Austin, TX
          Income  Fund  XVIII,   Ltd.,
          Tenants in Common

     CNL  Income  Fund  X,  Ltd.,  CNL   2003       12.00%      CNL Income Fund XIII, Ltd.       Tucker, GA
          Income Fund XIII,  Ltd., CNL                          CNL Income Fund XIV, Ltd.
          Income Fund XIV,  Ltd.,  and                          CNL Income Fund XV, Ltd.
          CNL  Income  Fund XV,  Ltd.,
          Tenants in Common
</TABLE>

         CNL  Restaurant  Investments  III was  formed  to hold six  Properties;
however, all other joint ventures or tenancies in common were formed to hold one
Property. CNL Restaurant Investments III sold its Property in Greensboro,  North
Carolina.  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  has  management  control of Allegan Real Estate  Joint  Venture and
shares  management  control equally with the affiliates of the General  Partners
for the other joint ventures.

         The joint  venture and tenancy in common  arrangements  provide for the
Partnership and its partners to share in all costs and benefits in proportion to
each partner's  percentage  interest in the entity or Property.  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
entity or Property.

         The joint venture agreement for CNL Restaurant Investments III does not
provide for a fixed term, but continues in existence until  terminated by either
of the joint  venturers.  Ashland  Joint Venture has an initial term of 14 years
and CNL VIII, X, XII Kokomo Joint Venture has an initial term of 30 years.  Each
of the other  joint  ventures  has an initial  term of 20 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 or 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 or assign its 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 2003, the  Partnership  reinvested the majority of the net sales
proceeds from the 2002 sale of its Property in Ft. Pierce, Florida in a Property
in Tucker,  Georgia, as tenants-in-common,  with CNL Income Fund XIII, Ltd., CNL
Income Fund XIV, Ltd., and CNL Income Fund XV, Ltd. Each of the CNL Income Funds
is a Florida limited  partnership and an affiliate of the General  Partners.  In
addition,  during 2003, CNL Ocean Shores Joint Venture, in which the Partnership
owned a 69.06%  interest,  sold its Property in Ocean  Shores,  Washington  to a
third party.  CNL Ocean Shores Joint Venture was liquidated and the  Partnership
received its pro rata share of the liquidation proceeds.

         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.  (the  "Advisor"),  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.
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 has 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.

         During 2003,  CNL Capital  Management,  Inc.,  ("CCM"),  a wholly owned
subsidiary of CNL Financial  Group,  Inc.,  began  providing  certain  strategic
advisory  services  to  the  General  Partners  relative  to  the  Partnership's
business. CCM is not reimbursed for these services by the Partnership.  CCM also
began  providing  some  accounting  and  portfolio  management  services  to the
Partnership during 2003, through a subcontract with the Advisor.

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,  the officers  and  employees of CNL  Restaurant  Properties,  Inc.
(formerly  CNL  American  Properties  Fund,  Inc.),  the  parent  company of the
Advisor,  and the officers and employees of CCM 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, 2003, the Partnership owned 47 Properties. Of the 47
Properties,  34 are  owned by the  Partnership  in fee  simple,  nine are  owned
indirectly  through joint  venture  arrangements  and four are owned  indirectly
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.

Description of Properties

         Land. The Partnership's  Property sites range from approximately 15,700
to 200,900  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.



<PAGE>


         The following  table lists the  Properties  owned,  either  directly or
indirectly, by the Partnership as of December 31, 2003 by state.


          State                          Number of Properties

          Alabama                                   2
          Florida                                   4
          Georgia                                   1
          Idaho                                     1
          Illinois                                  1
          Indiana                                   1
          Louisiana                                 2
          Michigan                                  2
          Missouri                                  1
          Montana                                   5
          Nebraska                                  1
          New Hampshire                             2
          New Mexico                                3
          New York                                  1
          North Carolina                            3
          Ohio                                      3
          Pennsylvania                              1
          South Carolina                            1
          Tennessee                                 3
          Texas                                     9
                                                  ------
          TOTAL PROPERTIES                         47
                                                  ======

         Buildings.  Each of the Properties includes a building that is one of a
Restaurant Chain's approved designs.  The Partnership's  buildings generally are
rectangular and are  constructed  from various  combinations  of stucco,  steel,
wood, brick and tile.  Building sizes range from  approximately  1,800 to 10,700
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, 2003, 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, 2003, the aggregate cost of the Properties  owned by
the   Partnership   (including   its   consolidated   joint   venture)  and  the
unconsolidated  joint ventures  (including  Properties  owned through tenancy in
common  arrangements)  for  federal  income tax  purposes  was  $27,602,038  and
$14,738,476, respectively.



<PAGE>


         The following  table lists the  Properties  owned,  either  directly or
indirectly, by the Partnership as of December 31, 2003 by Restaurant Chain.

               Restaurant Chain                  Number of Properties

                Burger King                                   10
                Chevy's Fresh Mex                              1
                Denny's                                        3
                Golden Corral                                  6
                Hardee's                                       7
                Jack in the Box                                5
                Long John Silver's                             2
                O'Charley's                                    1
                Pizza Hut                                      5
                Shoney's                                       2
                Taco Cabana                                    3
                Other                                          2
                                                            -----
                TOTAL PROPERTIES                              47
                                                            =====

         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
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.

         The  following  is a schedule  of the  average  rent per  Property  and
occupancy rates for the years ended December 31:
<TABLE>

                                      2003              2002             2001              2000              1999
                                  --------------    -------------    --------------    -------------     -------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Rental Revenues (1)(2)              $ 3,353,490     $ 3,453,753       $ 3,345,782       $3,462,549        $3,490,765
Properties (2)                               47              46                47               47                47
Average Rent Per Property            $   71,351       $  75,082        $   71,187         $ 73,671          $ 74,272
Occupancy Rate                             100%             98%               98%              98%               96%
</TABLE>

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

(2)      Excludes  Properties  that were  vacant at December  31,  which did not
         generate rental revenues.



<PAGE>


         The following is a schedule of lease expirations for leases in place as
of December 31, 2003 for the next ten years and thereafter.
<TABLE>

                                                                            Percentage of
                                Number           Annual Rental              Gross Annual
  Expiration Year              of Leases            Revenues                Rental Income
--------------------         --------------     -----------------         ------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

       2004                         --                  $     --                        --
       2005                         --                        --                        --
       2006                          8                   599,919                    16.45%
       2007                          3                   538,740                    14.78%
       2008                         --                        --                        --
       2009                          4                   416,729                    11.43%
       2010                          1                   107,505                     2.95%
       2011                          5                   325,225                     8.92%
       2012                         20                 1,268,394                    34.78%
       2013                         --                        --                        --
       Thereafter                    6                   389,738                    10.69%
                              ---------          ----------------         -----------------
         Total                      47              $  3,646,250                   100.00%
                              =========          ================         =================
</TABLE>

         Leases  with  Major   Tenants.   The  terms  of  the  leases  with  the
Partnership's  major  tenants as of December  31,  2003 (see Item 1.  Business -
Major  Tenants),  are  substantially  the  same as  those  described  in Item 1.
Business - Leases.

         Golden Corral  Corporation  leases six Golden Corral  restaurants.  The
initial term of each lease is 15 years (expiring  between 2007 and 2016) and the
average minimum base rent is approximately  $163,400 (ranging from approximately
$88,000 to $218,200).

         Jack in the Box  Inc.  leases  five  Jack in the Box  restaurants.  The
initial term of each lease is 18 years (expiring  between 2009 and 2012) and the
average minimum base rent is approximately  $100,000 (ranging from approximately
$74,800 to $120,200).

         Carrols  Corp.  leases  three  Burger King  restaurants  and three Taco
Cabana  restaurants.  The initial term of each lease is 18 to 20 years (expiring
between  2011 and  2020) and the  average  minimum  base  rent is  approximately
$107,500 (ranging from approximately $83,100 to $138,000).


Item 3.  Legal Proceedings

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


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

         Not applicable.




<PAGE>


                                     PART II


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

(a)      As of March 12, 2004, there were 3,460 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 2003,  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, 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 2003 and 2002 other than
pursuant to the Plan, net of commissions.
<TABLE>

                                             2003 (1)                               2002 (1)
                                 ----------------------------------     ----------------------------------
                                   High         Low        Average        High         Low       Average
                                 ---------    --------    ----------    ---------    --------   -----------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

         First Quarter              $9.50      $ 6.02        $ 8.87        $7.99      $ 6.02        $ 7.31
         Second Quarter              9.50        7.50          8.42         7.40        7.32          7.36
         Third Quarter               9.50        7.60          9.05         9.50        6.02          8.08
         Fourth Quarter              9.50        9.50          9.50         8.65        7.94          8.30
</TABLE>

(1)      A total of 47,327 and 22,690 Units were transferred other than pursuant
to the Plan for the years ended December 31, 2003 and 2002, 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 the  years  ended  December  31,  2003 and  2002,  the  Partnership
declared cash distributions of $3,600,004 to the Limited Partners. Distributions
of $900,001  were  declared to the Limited  Partners at the close of each of the
Partnership's  calendar  quarters  during 2003 and 2002.  These amounts  include
monthly  distributions  made in arrears  for the  Limited  Partners  electing to
receive such distributions on this basis. No amounts distributed to partners for
the years  ended  December  31,  2003 and 2002 are  required  to be or have been
treated by the  Partnership  as a return of capital for purposes of  calculating
the  Limited  Partners'  return  on their  adjusted  capital  contributions.  No
distributions have been made to the General Partners to date.

         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.




<PAGE>


Item 6.  Selected Financial Data
<TABLE>

Year ended December 31:                  2003             2002              2001             2000              1999
                                     -------------    -------------     -------------    -------------     -------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Continuing Operations (3):
      Revenues                        $ 2,799,244      $ 2,835,750        $ 2,736,506      $ 2,736,891      $ 2,810,236
      Equity in earnings
       (loss)of unconsolidated joint
       ventures                           616,705          578,394            (88,921 )        449,576          380,616

      Income from continuing
       operations (1)                   2,743,885        2,743,225          1,886,764        2,606,091        2,085,480

Discontinued Operations (3):
      Revenues                            100,097          157,668            206,796          208,694          235,119
      Income (loss) from and
      gain on disposal of dis-
      continued operations (2)             99,785          283,927           (154,110 )       (140,303 )        183,921

  Net income                            2,843,670        3,027,152          1,732,654        2,465,788        2,269,401

Income (loss) per Unit:
      Continuing operations             $    0.69        $    0.69          $    0.47        $    0.65        $    0.52
      Discontinued operations                0.02             0.07              (0.04 )          (0.03 )           0.05
                                     -------------    -------------     -------------    -------------     -------------
                                        $    0.71        $    0.76          $    0.43        $    0.62        $    0.57
                                     =============    =============     =============    =============     =============

Cash distributions declared           $ 3,600,004      $ 3,600,004        $ 3,600,004      $ 3,600,004      $ 3,600,004
Cash distributions declared
per                                          0.90             0.90               0.90             0.90             0.90
  Unit (2)

At December 31:
      Total assets                   $ 28,849,846     $ 29,592,357       $ 30,087,645     $ 32,124,183     $ 33,248,120
      Total partners' capital          27,691,542       28,447,876         29,020,728       30,888,078       32,022,294

</TABLE>

(1)      Income from continuing operations for the years ended December 31, 2000
         and 1999,  includes  $50,755 and $32,499,  respectively,  from gains on
         sale of assets.  Income from continuing  operations for the years ended
         December   31,  2001  and  1999,   includes   $84,527   and   $377,266,
         respectively, from provisions for write-down of assets.

(2)      Income (loss) from and gain on disposal of discontinued  operations for
         the year ended  December 31,  2002,  includes  $167,189  from a gain on
         disposal of  discontinued  operations  and for the years ended December
         31, 2001 and 2000 includes  $306,659 and $287,275,  respectively,  from
         provisions for write-down of assets.

(3)      Certain items in the prior years' financial data have been reclassified
         to conform to 2003 presentation.  These reclassifications had no effect
         on net income.  The results of operations  relating to Properties  that
         were either  identified  for sale and disposed of subsequent to January
         1, 2002 or were classified as held for sale as of December 31, 2003 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.

         The above selected  financial  data should be read in conjunction  with
the financial statements and related notes contained in Item 8 hereof.


<PAGE>


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
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 $28,800 to
$218,200.  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, 2001, the Partnership owned 35 Properties directly
and 13  Properties  indirectly  through  joint  venture  or  tenancy  in  common
arrangements.  As of  December  31,  2002 and  2003,  the  Partnership  owned 34
Properties  directly  and 13  Properties  indirectly  through  joint  venture or
tenancy in common arrangements.

Capital Resources

         Cash  from  operating  activities  was  $3,421,945,   $3,465,982,   and
$3,127,850, for the years ended December 31, 2003, 2002, and 2001, respectively.
Cash from operating  activities during 2003, as compared to each of the previous
years remained relatively constant.

         Other sources and uses of cash included the following  during the years
ended December 31, 2003, 2002, and 2001.

         In April 2001,  the  Partnership  reinvested  a portion of the proceeds
from the 2000 sale of the  Property in  Lancaster,  New York in a joint  venture
arrangement,  CNL VIII, X, XII Kokomo Joint Venture,  with CNL Income Fund VIII,
Ltd.  and CNL  Income  Fund  XII,  Ltd.,  each of  which  is a  Florida  limited
partnership pursuant to the laws of the state of Florida and an affiliate of the
General  Partners,  to  purchase  and hold one  restaurant  Property.  The joint
venture  acquired this  Property from CNL BB Corp.,  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 joint venture. The
Partnership  contributed  approximately  $211,200  and has a 10% interest in the
profits and losses of the joint venture.

         In August 2001, Peoria Joint Venture,  in which the Partnership owned a
52% interest,  sold its Property to a third party for approximately  $1,786,900,
resulting in a gain of  approximately  $136,700.  As a result,  the  Partnership
received   approximately   $899,500  representing  its  pro-rata  share  of  the
liquidation  proceeds.  In September 2001, Peoria Joint Venture was dissolved in
accordance with the joint venture agreement.  No gain or loss on the dissolution
of the joint venture was recorded.  In January 2002, the Partnership  reinvested
the  majority of the  liquidation  proceeds in a Property in Austin,  Texas,  as
tenants-in-common  with CNL Income Fund XVIII,  Ltd., which is a Florida limited
partnership  and  an  affiliate  of  the  General   Partners.   The  Partnership
contributed  $915,171 for an 81.65%  interest in this Property.  The Partnership
acquired  the  Property  from  CNL  Funding  2001-A,   LP,  a  Delaware  limited
partnership and an affiliate of the General Partners. CNL Funding 2001-A, LP had
purchased and temporarily  held title to the Property in order to facilitate the
acquisition of the Property by the tenancy in common. The purchase price paid by
the tenancy in common  represented the costs incurred by CNL Funding 2001-A,  LP
to acquire and carry the Property.

         In April 2002, the Partnership  sold its Property in San Marcos,  Texas
to a third party and received net sales  proceeds of  approximately  $1,161,100,
resulting  in a gain on disposal of  discontinued  operations  of  approximately
$169,400. In May 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.  In
addition,  in June 2002, Ashland Joint Venture,  in which the Partnership owns a
10.51% interest,  sold its Property in Ashland,  New Hampshire to the tenant and
received  net sales  proceeds of  $1,472,900,  resulting  in a gain to the joint
venture of approximately  $500,900.  The Partnership  reinvested the majority of
the net sales proceeds from the sale of the Property in San Marcos,  Texas and a
portion of the return of capital received from CNL Restaurant Investments III in
a Property in Houston, Texas at an approximate cost of $1,281,500. Ashland Joint
Venture  used the  majority  of the  proceeds  to  invest in a  Property  in San
Antonio,  Texas at an approximate cost of $1,343,000.  The Partnership and joint
venture  acquired  these  Properties  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 joint
venture.   The  purchase  price  paid  by  the  Partnership  and  joint  venture
represented  the costs incurred by CNL Funding  2001-A,  LP to acquire and carry
the  Properties.  In December  2002,  the  Partnership  sold its Property in Ft.
Pierce,   Florida  to  a  third  party  and  received  net  sales   proceeds  of
approximately  $329,200,  resulting  in  a  loss  on  disposal  of  discontinued
operations of approximately  $2,200. The Partnership had recorded provisions for
write-down of assets totaling  $593,934 in previous years. In November 2003, the
Partnership  reinvested the remaining net sales proceeds  received from the sale
of the Property in Ft. Pierce, Florida in a Property in Tucker, Georgia with CNL
Income Fund XIII,  Ltd., CNL Income Fund XIV, Ltd., and CNL Income Fund XV, Ltd.
as tenants  in  common.  Each of the CNL  Income  Funds is an  affiliate  of the
General  Partners.  The  Partnership  and  affiliates  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  contributed
approximately $184,400 for a 12% interest in the Property.

         In  September  2003,  CNL  Ocean  Shores  Joint  Venture,  in which the
Partnership  owned a 69.06%  interest,  sold its  Property  to a third party for
$824,600,  resulting  in a gain of  approximately  $413,700.  As a  result,  the
Partnership received approximately $541,900,  representing its pro-rata share of
the liquidation proceeds. The joint venture was dissolved in accordance with the
joint venture  agreement and no gain or loss was recognized on the  dissolution.
The  General  Partners  intend  to  reinvest  the  liquidation  proceeds  in  an
additional property or will use the proceeds to meet working capital needs.

         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.

         At December 31, 2003, the Partnership  had $1,457,105  invested in cash
and cash equivalents as compared to $1,287,619 at December 31, 2002. At December
31, 2003,  these funds were held in demand deposit and money market  accounts at
commercial  banks.  The  increase in cash and cash  equivalents  during 2003 was
primarily  attributable to the fact that in 2003, the  Partnership  received its
pro rata share of the  liquidation  proceeds from the  dissolution  of CNL Ocean
Shores Joint Venture.  The increase in cash and cash  equivalents  was partially
offset  because  during 2003,  the  Partnership  reinvested  the sales  proceeds
received from the sale of the Property in Ft.  Pierce,  Florida in a Property in
Tucker, Georgia as tenants-in-common with affiliates of the general partners. As
of December 31, 2003, the average  interest rate earned on rental income held in
demand deposit and money market  accounts at commercial  banks was less than one
percent  annually.  The funds  remaining at December 31, 2003,  after 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  investment strategy of acquiring Properties for cash
and  leasing  them under  triple-net  leases to  operators  who  generally  meet
specified financial  standards  minimizes the Partnership's  operating expenses.
The General Partners believe that the leases will continue to generate cash flow
in excess of operating expenses.

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

         The General  Partners have the right,  but not the obligation,  to make
additional capital  contributions if they deem it appropriate in connection with
the operations of the Partnership.

         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 operating  activities
remaining after the payment of the operating expenses of the Partnership, to the
extent that the General  Partners  determine  that such funds are  available for
distribution.  Based on current and anticipated future cash from operations, the
Partnership  declared  distributions to the Limited Partners of $3,600,004,  for
the years ended December 31, 2003, 2002 and 2001. This represents  distributions
of $0.90 per Unit for each  year.  No  distributions  were  made to the  General
Partners during the years ended December 31, 2003, 2002 and 2001,  respectively.
No amounts  distributed to the Limited Partners for the years ended December 31,
2003,  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.  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 and did not receive any distributions
during the years ended December 31, 2003, 2002 and 2001.

         As of December  31, 2003 and 2002,  the  Partnership  owed  $14,269 and
$17,330, respectively, to affiliates for accounting and administrative services.
As of March 12, 2004,  the  Partnership  had reimbursed the affiliates for these
amounts.  Other  liabilities,  including  distributions  payable,  increased  to
$1,082,940 at December 31, 2003, from $1,064,171 at December 31, 2002, primarily
as a result of an increase in rents paid in advance  and  deposits.  The General
Partners  believe that the  Partnership  has sufficient cash on hand to meet its
current working capital needs.

Off-Balance Sheet Transactions

         The Partnership holds interests in various unconsolidated joint venture
and  tenancy  in common  arrangements  that are  accounted  for using the equity
method.  The  General  Partners  do not  believe  that any such  interest  would
constitute an off-balance sheet arrangement requiring any additional disclosures
under the provisions of the Sarbanes-Oxley Act of 2002.

Contractual Obligations, Contingent Liabilities, and Commitments

         The Partnership has no contractual obligations, contingent liabilities,
or commitments as of December 31, 2003.

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 Financial  Accounting  Standards  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  assumptions  regarding
collectibility  of lease payments could result in a change in accounting for 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 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.


         Effective  January  1,  2002,  the  Partnership  adopted  Statement  of
Financial  Accounting  Standards  No.  144  "Accounting  for the  Impairment  or
Disposal of Long-Lived  Assets."  Accordingly,  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, 2003 to year ended December 31, 2002

         Rental revenues from continuing  operations were $2,751,881  during the
year ended  December 31, 2003 as compared to  $2,740,102  for the same period of
2002. The increase in rental revenues from continuing operations during 2003 was
due to the  acquisition  of a  Property  in  Houston,  Texas in June  2002.  The
increase  was  partially  offset by the fact that during 2002,  the  Partnership
collected  amounts related to the Properties in Las Cruces and Albuquerque,  New
Mexico, which had been reserved in a prior year.

         The Partnership earned $40,324 in contingent rental income for the year
ended  December 31, 2003 as compared to $89,619 for the same period of 2002. The
decrease in  contingent  rental  income  during 2003 was  primarily due to lower
reported sales and due to a decrease in contingent rental income relating to the
Property in Las Cruces, New Mexico as a result of a lease amendment.

         During  the year  ended  December  31,  2003,  the  Partnership  earned
$616,705 in net income earned by  unconsolidated  joint  ventures as compared to
$578,394 for the same period of 2002. Net income earned by unconsolidated  joint
ventures was higher during 2003, as compared to 2002, because in September 2003,
CNL  Ocean  Shores  Joint  Venture,  in  which  the  Partnership  owned a 69.06%
interest, sold its vacant Property in Ocean Shores,  Washington to a third party
and recorded a gain of  approximately  $413,700.  The  Partnership  recorded its
pro-rata  share of this gain as  equity  in  earnings  of  unconsolidated  joint
ventures.  In October 2003, the joint venture was liquidated.  In addition,  net
income earned by unconsolidated joint ventures was higher during 2003 due to the
fact that in November  2003, the  Partnership  invested in a Property in Tucker,
Georgia,  with CNL Income Fund XIII,  Ltd.,  CNL Income Fund XIV,  Ltd.  and CNL
Income  Fund XV, Ltd. as  tenants-in-common.  Each of the CNL Income  Funds is a
Florida  limited  partnership  and an  affiliate  of the General  Partners.  The
increase in net income earned by  unconsolidated  joint ventures during 2003 was
partially offset by the fact that in May 2002 CNL Restaurant Investments III, in
which the  Partnership  owns a 50%  interest,  sold its Property in  Greensboro,
North Carolina to the tenant. In addition,  in June 2002, Ashland Joint Venture,
in which the Partnership owns a 10.51%  interest,  sold its Property in Ashland,
New Hampshire to the tenant.  These sales  resulted in a net gain of $872,400 to
these joint ventures.  The Partnership  recorded its pro-rata share of this gain
as equity in earnings of joint ventures. During 2002, the Partnership received a
return of capital  from CNL  Restaurant  Investments  III and  reinvested  these
proceeds  in a wholly  owned  Property in Houston,  Texas.  As a result,  rental
revenues  increased  while  income  earned  by  unconsolidated   joint  ventures
decreased.

         During the year ended  December 31, 2003,  three  lessees (or groups of
affiliated  tenants) of the Partnership and its consolidated joint venture,  (i)
Golden Corral Corporation, (ii) Jack in the Box Inc. and Jack in the Box Eastern
Division,  L.P.  (which are affiliated  entities under common control of Jack in
the Box Inc.)  (hereinafter  referred to as "Jack in the Box  Inc."),  and (iii)
Carrols  Corporation  and Texas Taco Cabana,  LP (which are affiliated  entities
under  common  control)  (hereinafter  referred to as ("Carrols  Corp.")),  each
contributed more than 10% of the Partnership's  total rental revenues (including
total rental revenues from the Partnership's  consolidated joint venture and the
Partnership's   share  of  total  rental  revenues  from  Properties   owned  by
unconsolidated  joint  ventures  and  Properties  owned with  affiliates  of the
General Partners as  tenants-in-common).  As of December 31, 2003, Golden Corral
Corporation was the lessee under leases relating to six restaurants, Jack in the
Box Inc. was the lessee under leases  relating to five  restaurants  and Carrols
Corp. was the lessee under leases related to six restaurants.  It is anticipated
that based on the minimum rental  payments  required by the leases,  these three
lessees will continue to  contribute  more than 10% of the  Partnership's  total
rental  revenues  during 2004. In addition,  during the year ended  December 31,
2003, four Restaurant Chains, Golden Corral, Hardee's,  Burger King, and Jack in
the Box,  each  accounted  for more than 10% of the  Partnership's  total rental
revenues  (including total rental revenues from the  Partnership's  consolidated
joint  venture  and the  Partnership's  share  of  total  rental  revenues  from
Properties  owned by  unconsolidated  joint ventures and  Properties  owned with
affiliates as  tenants-in-common).  In 2004, it is  anticipated  that these four
Restaurant   Chains  will   continue  to  account  for  more  than  10%  of  the
Partnership's  total rental  revenues to which the Partnership is entitled under
the terms of the leases.  Any failure of these lessees or Restaurant Chains will
materially affect the Partnership's  operating results if the Partnership is not
able to re-lease the Properties in a timely manner.

         Operating expenses,  including  depreciation and amortization  expense,
were $663,923 for the year ended  December 31, 2003, as compared to $662,657 for
the same period of 2002.  While  operating  expenses in total remained  constant
during  2003,  there was an increase  in state tax  expense  relating to several
states in which the Partnership  conducts  business.  In addition,  depreciation
expense  increased during 2003 as a result of the acquisition of the Property in
Houston,  Texas during 2002. These increases were partially offset by a decrease
in the costs incurred for administrative  expenses for servicing the Partnership
and its Properties.

         During 2002, the Partnership identified and sold two Properties located
in San Marcos, Texas and Ft. Pierce,  Florida. The Partnership recognized a gain
of approximately $169,400 on the sale of the Property in San Marcos, Texas and a
loss of approximately $2,200 on the sale of the Property in Ft. Pierce, Florida.
The  Partnership  had recorded  provisions  for  write-down  of assets  totaling
$593,934  in previous  years  relating to the  Property in Ft.  Pierce,  Florida
because  the tenant  vacated  the  Property  and ceased  payment of rents to the
Partnership  in 1999.  The provisions  represented  the  difference  between the
carrying  value of the property and its estimated  fair value.  The  Partnership
reinvested  the proceeds from the sales in additional  Properties.  During 2003,
the  Partnership  identified for sale its Property in Romulus,  Michigan.  These
Properties  are  classified  as  discontinued  operations  in  the  accompanying
financial  statements.  The  Partnership  recognized  net rental income  (rental
revenues less Property  related expenses and provision for write-down of assets)
of $99,785  and  $116,738  during the years  ended  December  31, 2003 and 2002,
respectively, relating to these Properties.

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

         Rental revenues from continuing  operations were $2,740,102  during the
year ended  December 31, 2002 as compared to  $2,652,704  for the same period of
2001. The increase in rental revenues from continuing operations during 2002 was
due to the acquisition of a Property in Houston,  Texas.  Although this Property
replaced a Property that was sold, the rental  revenues and expenses  related to
disposed  Properties  are reported as  discontinued  operations in the financial
statements  as required by Statement of Financial  Accounting  Standards No. 144
"Accounting for the Impairment or Disposal of Long-Lived Assets."

         The Partnership earned $89,619 in contingent rental income for the year
ended  December  31,  2002 as  compared  to $51,376 for the same period of 2001.
Contingent rental income was higher during 2002 because the Partnership deferred
the  recognition  of certain  percentage  rental  income  during  2001 until the
tenants' gross sales met certain thresholds in 2002.

         During the year ended December 31, 2002, the Partnership  earned $6,029
as compared to $32,426 for the same period of 2001 in interest and other income.
Interest and other income was lower during 2002 due to a decrease in the average
cash balance as a result of the reinvestment of sales proceeds  received in 2001
and due to a decline in interest rates.

         For the  years  ended  December  31,  2002 and  2001,  the  Partnership
recorded income of $578,394 and a loss of $88,921, respectively, attributable to
the net operating results reported by unconsolidated joint ventures in which the
Partnership is a co-venturer.  The income recognized during 2002, as compared to
the losses for the same period of 2001, was primarily  attributable to net gains
of $872,385  recognized by joint ventures on sales of Properties in 2002. In May
2002,  CNL  Restaurant  Investments  III,  in which the  Partnership  owns a 50%
interest,  sold its Property in  Greensboro,  North  Carolina to the tenant.  In
addition,  in June 2002, Ashland Joint Venture,  in which the Partnership owns a
10.51% interest, sold its Property in Ashland, New Hampshire to the tenant.

         The increase in net income earned from joint  ventures  during 2002 was
also due to the fact that in April 2001, the  Partnership  used a portion of the
net sales proceeds received from the 2000 sale of its Property in Lancaster, New
York to invest in a joint  venture  arrangement,  CNL VIII,  X, XII Kokomo Joint
Venture,  with CNL Income Fund VIII, Ltd. and CNL Income Fund XII, Ltd., each of
which  is an  affiliate  of the  General  Partners,  to  purchase  and  hold one
restaurant  Property.  Net income earned from the joint  ventures also increased
because,  in January 2002, the Partnership  used the majority of the liquidation
proceeds received from the 2001 dissolution of Peoria Joint Venture to invest in
a Property in Austin,  Texas with CNL Income Fund XVIII,  Ltd.,  an affiliate of
the General Partners, as tenants-in-common.  The net losses experienced by joint
ventures in 2001 was mainly due to the fact that, during 2001, the tenant of the
Property owned by CNL Ocean Shores Joint Venture, in which the Partnership owned
a 69.06% interest,  experienced  financial  difficulties,  ceased operations and
vacated  the  Property.  As a  result,  during  2001 the joint  venture  stopped
recording  rental  revenue and recorded a provision for  write-down of assets of
approximately  $781,700.  The provision  represented the difference  between the
carrying  value of the Property and its fair value.  The joint  venture sold the
Property in September 2003.

         Operating expenses, including depreciation and amortization expense and
provision for  write-down of assets,  were $662,657 for the year ended  December
31, 2002 as compared to $752,126 for the same period of 2001. Operating expenses
were higher  during  2001,  as compared to the same period of 2002,  because the
Partnership  recorded  a  provision  for  write-down  of assets in the amount of
$84,527  in  connection  with  the  anticipated  sale of the  Property  in North
Richland  Hills,  Texas.  The  contract  for  the  sale  of  this  Property  was
subsequently   terminated.   In  addition,   the  Partnership   incurred  higher
administrative  expenses for servicing the Partnership and its Properties during
2001. The decrease in operating  expenses  during 2002, as compared to 2001, was
partially  offset by an  increase  in  depreciation  expense  as a result of the
acquisition of the Property in Houston, Texas.

         During the year ended December 31, 2002, the Partnership identified and
sold two  Properties  that were  classified  as  discontinued  operations in the
accompanying  financial statements.  The Partnership recognized an aggregate net
gain on disposal of discontinued  operations of approximately  $167,200 relating
to these  Properties.  The  Partnership  recognized  net rental  income  (rental
revenues less Property  related expenses and provision for write-down on assets)
of $ 116,738 and a net rental loss of $154,110  during the years ended  December
31, 2002 and 2001, respectively, relating to these Properties.

         In addition,  during 2002, CNL Restaurant  Investments  III and Ashland
Joint Venture each identified and sold a Property. The joint ventures recognized
gains of $872,385 from the sales of the Properties in Greensboro, North Carolina
and Ashland,  New  Hampshire.  The  financial  results of these  Properties  are
reflected as discontinued  operations in the condensed  joint venture  financial
information presented in the footnotes to the accompanying financial statements.
The tenants exercised their option to purchase the Properties under the terms of
their  respective  leases and the  proceeds  from the sales were  reinvested  in
additional Properties.

         The General Partners continuously  evaluate strategic  alternatives for
the  Partnership,  including  alternatives  to provide  liquidity to the Limited
Partners.

         The  Partnership's  leases  as of  December  31,  2003,  are  generally
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
results of operations of the  Partnership.  Continued  inflation  also 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,  the Financial  Accounting  Standards  Board  ("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, FIN 46 requires
that a variable  interest entity be consolidated by a company if that company is
subject  to a  majority  risk  of  loss  from  the  variable  interest  entity's
activities or entitled to receive a majority of the entity's residual returns or
both.  Prior to FIN 46, a  company  generally  included  another  entity  in its
consolidated  financial  statements  only if it  controlled  the entity  through
voting interests.  In December 2003, the FASB issued FASB Interpretation No. 46R
("FIN 46R"), to clarify some of the provisions of FIN 46. Under FIN 46R, special
effective date provisions apply to entities that have fully or partially applied
FIN 46  prior  to  issuance  of FIN 46R.  Otherwise,  application  of FIN 46R is
required in  financial  statements  of public  entities  that have  interests in
structures that are commonly referred to as special-purpose entities for periods
ending after December 15, 2003. Application by public entities, other than small
business issuers,  for all other types of variable interest entities is required
in financial statements for periods ending after March 15, 2004. The Partnership
did not fully or partially  apply FIN 46 prior to the issuance of FIN 46R. Also,
the Partnership  does not have interests in structures  commonly  referred to as
special-purpose entities.  Therefore,  application of FIN 46R is required in the
Partnership's  financial statements for periods ending after March 15, 2004. The
General  Partners  believe  adoption  of this  standard  may  result  in  either
consolidation  or  additional  disclosure   requirements  of  the  Partnership's
unconsolidated  joint  ventures,  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

         Not applicable.


Item 8.  Financial Statements and Supplementary Data



<PAGE>



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

                                    CONTENTS






                                                                    Page

Report of Independent Certified Public Accountants                   19

Financial Statements:

     Balance Sheets                                                  20

     Statements of Income                                            21

     Statements of Partners' Capital                                 22

     Statements of Cash Flows                                     23-24

     Notes to Financial Statements                                25-38






<PAGE>












               Report of Independent Certified Public Accountants



To the Partners
CNL Income Fund X, 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 X, Ltd. (a Florida limited
partnership)  at December 31, 2003 and 2002,  and the results of its  operations
and its cash flows for each of the three years in the period ended  December 31,
2003 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  Standards  No.  144
"Accounting for the Impairment or Disposal of Long-Lived Assets."



/s/ PricewaterhouseCoopers LLP


Orlando, Florida
March 24, 2004




<PAGE>


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

                                 BALANCE SHEETS

<TABLE>

                                                                                         December 31,
                                                                              2003                         2002
                                                                       -------------------          --------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

                           ASSETS

Real estate properties with operating leases, net                           $  13,544,970                 $  13,848,029
Net investment in direct financing leases                                       7,666,525                     8,006,351
Real estate held for sale                                                         938,167                       966,101
Investment in joint ventures                                                    3,960,989                     4,117,921
Cash and cash equivalents                                                       1,457,105                     1,287,619
Receivables                                                                        20,513                        47,784
Due from related parties                                                              619                            --
Accrued rental income, less allowance for
     doubtful accounts of $4,841 in 2003 and 2002                               1,174,958                     1,226,029
Other assets                                                                       86,000                        92,523
                                                                       -------------------          --------------------

                                                                            $  28,849,846                 $  29,592,357
                                                                       ===================          ====================

              LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses                                         $     6,802                   $     4,532
Real estate taxes payable                                                          13,589                        12,836
Distributions payable                                                             900,001                       900,001
Due to related parties                                                             14,269                        17,330
Rents paid in advance and deposits                                                162,548                       146,802
                                                                       -------------------          --------------------
         Total liabilities                                                      1,097,209                     1,081,501

Minority interest                                                                  61,095                        62,980

Partners' capital                                                              27,691,542                    28,447,876
                                                                       -------------------          --------------------

                                                                            $  28,849,846                 $  29,592,357
                                                                       ===================          ====================
</TABLE>
                See accompanying notes to financial statements.

<PAGE>


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

                              STATEMENTS OF INCOME

<TABLE>

                                                                                  Year Ended December 31,
                                                                        2003               2002                2001
                                                                  -----------------   ----------------   -----------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Revenues:
     Rental income from operating leases                             $  1,911,538       $  1,849,351        $  1,752,675
     Earned income from direct financing leases                           840,343            890,751             900,029
     Contingent rental income                                              40,324             89,619              51,376
     Interest and other income                                              7,039              6,029              32,426
                                                                  -----------------   ----------------   -----------------
                                                                        2,799,244          2,835,750           2,736,506
                                                                  -----------------   ----------------   -----------------
Expenses:
     General operating and administrative                                 279,000            310,106             345,566
     Property related                                                      27,310             22,279              15,462
     State and other taxes                                                 49,502             31,076              36,829
     Depreciation and amortization                                        308,111            299,196             269,742
     Provision for write-down of assets                                        --                 --              84,527
                                                                  -----------------   ----------------   -----------------
                                                                          663,923            662,657             752,126
                                                                  -----------------   ----------------   -----------------
Income before minority interest and equity in earnings
     (loss) of  unconsolidated joint ventures                           2,135,321          2,173,093           1,984,380

Minority interest                                                          (8,141  )          (8,262  )           (8,695  )

Equity in earnings (loss) of unconsolidated joint ventures                616,705            578,394             (88,921  )
                                                                  -----------------   ----------------   -----------------

Income from continuing operations                                       2,743,885          2,743,225           1,886,764
                                                                  -----------------   ----------------   -----------------

Discontinued Operations
     Income (loss) from discontinued operations                            99,785            116,738            (154,110  )
     Gain on disposal of discontinued operations                               --            167,189                  --
                                                                  -----------------   ----------------   -----------------
                                                                           99,785            283,927            (154,110  )
                                                                  -----------------   ----------------   -----------------

Net income                                                            $ 2,843,670       $  3,027,152        $  1,732,654
                                                                  =================   ================   =================

Net Income (loss) per limited partner unit
     Continuing operations                                              $    0.69         $     0.69          $     0.47
     Discontinued operations                                                 0.02               0.07               (0.04  )
                                                                  -----------------   ----------------   -----------------

                                                                        $    0.71         $     0.76          $     0.43
                                                                  =================   ================   =================

Weighted average number of limited partner units
     outstanding                                                        4,000,000          4,000,000           4,000,000
                                                                  =================   ================   =================
</TABLE>
                See accompanying notes to financial statements.

<PAGE>


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

                         STATEMENTS OF PARTNERS' CAPITAL

                  Years Ended December 31, 2003, 2002 and 2001

<TABLE>

                                             General Partners                                           Limited Partners
                                        -------------------------------------   -------------------------------------------------
                                                          Accumulated                                               Accumulated
                                      Contributions         Earnings         Contributions      Distributions        Earnings
                                   ------------------  -----------------   -----------------  ----------------- ------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Balance, December 31, 2000            $     1,000       $    251,935       $  40,000,000     $ (31,843,151 )     $  27,268,294

    Distributions to limited
      partners ($0.90 per
      limited partner unit)                    --                 --                  --        (3,600,004 )                --
    Net income                                 --                 --                  --                --           1,732,654
                                   ---------------  -----------------   -----------------  ----------------- ------------------

Balance, December 31, 2001                  1,000            251,935          40,000,000       (35,443,155 )        29,000,948

    Distributions to limited
      partners ($0.90 per
      limited partner unit)                    --                 --                  --        (3,600,004 )                --
    Net income                                 --                 --                  --                --           3,027,152
                                   ---------------  -----------------   -----------------  ----------------- ------------------

Balance, December 31, 2002                  1,000            251,935          40,000,000       (39,043,159 )        32,028,100

    Distributions to limited
      partners ($0.90 per
      limited partner unit)                    --                 --                  --        (3,600,004 )                --
    Net income                                 --                 --                  --                --           2,843,670
                                   ---------------  -----------------   -----------------  ----------------- ------------------

Balance, December 31, 2003             $    1,000        $   251,935       $  40,000,000    $ (42,643,163)       $  34,871,770
                                   ===============  =================   =================  ================= ==================

</TABLE>
                 See accompanying notes to financial statements.

<PAGE>


----------------------------------------
  Syndication
     Costs             Total
----------------  ------------------

 $ (4,790,000)      $ 30,888,078



         --         (3,600,004 )
         --          1,732,654
----------------  ------------------

 (4,790,000)        29,020,728



         --         (3,600,004 )
         --          3,027,152
----------------  ------------------

 (4,790,000)        28,447,876



         --         (3,600,004 )
         --          2,843,670
----------------  ------------------

$ (4,790,000)      $ 27,691,542
================  ==================


                 See accompanying notes to financial statements.

<PAGE>

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

                            STATEMENTS OF CASH FLOWS

<TABLE>

                                                                                 Year Ended December 31,
                                                                        2003              2002               2001
                                                                   ---------------   ----------------   ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

     Cash Flows from Operating Activities:
     Net income                                                       $ 2,843,670        $ 3,027,152       $ 1,732,654
                                                                   ---------------   ----------------   ---------------

     Adjustments to reconcile net income to net cash provided by operating
         activities:
             Depreciation                                                 303,059            315,589           297,383
             Amortization of net investment in direct financing
                lease                                                     364,694            318,245           253,736
             Amortization                                                   5,052              5,055             5,025
             Minority interest                                              8,141              8,262             8,695
             Equity in earnings of unconsolidated joint
                ventures, net of distributions                           (200,639)          (110,209)          577,013
             Gain on sale of assets                                            --           (167,189)               --
             Provision for write-down of assets                                --                 --           391,186
             Decrease (increase) in receivables                            27,220            (17,803)           19,048
             Decrease (increase) in due from related parties                 (568)               309            12,703
             Decrease (increase) in accrued rental income                  54,137             18,100            (7,388)
             Decrease (increase) in other assets                            1,471            (10,369)            7,141
             Increase (decrease) in accounts payable and accrued
expenses and real estate taxes payable                                      3,023             (1,993)          (26,225)
             Increase (decrease) in due to related parties                 (3,061)            11,791          (141,560)
             Increase in rents paid in advance and deposits                15,746             69,042             6,342
             Decrease in deferred rental income                                --                 --            (7,903)
                                                                   ---------------   ----------------   ---------------
                Total adjustments                                         578,275            438,830         1,395,196
                                                                   ---------------   ----------------   ---------------


      Net cash provided by operating activities                       $ 3,421,945        $ 3,465,982       $ 3,127,850
                                                                   ---------------   ----------------   ---------------
                                                                   ---------------   ----------------   ---------------

      Cash Flows from Investing Activities:
         Proceeds from sale of real estate properties                          --          1,490,229                --
         Additions to real estate properties with operating leases             --         (1,281,467)               --
         Liquidating distribution from joint venture                      541,935                 --           899,452
         Investment in joint ventures                                    (184,364)          (915,171)         (211,201)
         Return of capital from joint venture                                  --            571,700                --
         Payment of lease costs                                                --                 --            (3,324)
                                                                   ---------------   ----------------   ---------------
             Net cash provided by (used in) investing activities          357,571           (134,709)          684,927
                                                                   ---------------   ----------------   ---------------

      Cash Flows from Financing Activities:
         Distributions to limited partners                             (3,600,004)        (3,600,004)       (3,600,004)
         Distributions to holder of minority interest                     (10,026)            (9,538)           (8,537)
                                                                   ---------------   ----------------   ---------------
             Net cash used in financing activities                     (3,610,030)        (3,609,542)       (3,608,541)
                                                                   ---------------   ----------------   ---------------

      Net increase (decrease) in cash and cash equivalents                169,486           (278,269)          204,236

      Cash and cash equivalents at beginning of year                    1,287,619          1,565,888         1,361,652
                                                                   ---------------   ----------------   ---------------

      Cash and cash equivalents at end of year                        $ 1,457,105        $ 1,287,619       $ 1,565,888
                                                                   ===============   ================   ===============

</TABLE>
                 See accompanying notes to financial statements.
<PAGE>


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

                      STATEMENTS OF CASH FLOWS - CONTINUED

<TABLE>

                                                                                 Year Ended December 31,
                                                                        2003              2002               2001
                                                                   ---------------   ----------------   ----------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

 Supplemental Schedule of Non-Cash Financing Activities:

           Distributions declared and unpaid at December 31            $  900,001         $  900,001         $  900,001
                                                                   ===============   ================   ================

</TABLE>
                 See accompanying notes to financial statements.


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2003


1.       Significant Accounting Policies

         Organization  and Nature of  Business - CNL  Income  Fund X, 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 Accounting - The Partnership records the property
         acquisitions of real estate properties at cost,  including  acquisition
         and closing costs. Real estate properties are leased to unrelated 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, 2003, 2002 and 2001,  tenants paid, or are
         expected  to  pay,   directly  to  real   estate   taxing   authorities
         approximately  $448,900,  $392,300  and  $409,200,   respectively,   in
         estimated  real  estate  taxes in  accordance  with the  terms of their
         leases.

         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
         operating or the direct financing methods.

                  Operating  method - Property  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.

                  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 net 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.

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

         Substantially all leases are for 15 to 20 years and provide for minimum
         and contingent  rentals.  The lease options  generally allow tenants to
         renew the leases for two to five 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.


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


1.       Significant Accounting Policies - Continued

         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.

         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,  although the Partnership continues to
         pursue  collection  of  such  amounts.   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  accounts for its 88.26%
         interest in Allegan Real Estate Joint Venture  using the  consolidation
         method.   Minority  interest  represents  the  minority  joint  venture
         partner's  proportionate  share  of the  equity  in  the  Partnership's
         consolidated joint venture. All significant  intercompany  accounts and
         transactions have been eliminated.

         The Partnership's investments in four joint ventures and the properties
         in Clinton, North Carolina;  Miami, Florida; Austin, Texas; and Tucker,
         Georgia,  for which each  property  is 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. 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 incurred in negotiating
         new leases and are amortized over the terms of the new leases using the
         straight-line method.

         Rents Paid in  Advance - Rents  paid in  advance by lessees  for future
         periods are deferred upon receipt and are recognized as revenues during
         the period in which the rental income is earned.

         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 X, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


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 2003  presentation.
         These  reclassifications  had no effect on total partners' capital, net
         income or cash flows.

         Statement of Financial Accounting Standards No. 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 - In January 2003, the Financial  Accounting
         Standards Board ("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,  FIN 46 requires
         that a variable  interest  entity be  consolidated by a company if that
         company  is  subject  to a  majority  risk of loss  from  the  variable
         interest  entity's  activities or entitled to receive a majority of the
         entity's residual returns or both. Prior to FIN 46, a company generally
         included another entity in its consolidated  financial  statements only
         if it controlled the entity through voting interests. In December 2003,
         the FASB issued FASB  Interpretation  No. 46R ("FIN  46R"),  to clarify
         some of the provisions of FIN 46. Under FIN 46R, special effective date
         provisions  apply to entities that have fully or partially  applied FIN
         46 prior to issuance of FIN 46R.  Otherwise,  application of FIN 46R is
         required in financial statements of public entities that have interests
         in structures that are commonly referred to as special-purpose entities
         for periods  ending  after  December 15,  2003.  Application  by public
         entities,  other than small  business  issuers,  for all other types of
         variable  interest  entities is required in  financial  statements  for
         periods ending after March 15, 2004. The  Partnership  did not fully or
         partially  apply FIN 46 prior to the  issuance  of FIN 46R.  Also,  the
         Partnership does not have interests in structures  commonly referred to
         as  special-purpose  entities.  Therefore,  application  of FIN  46R is
         required in the Partnership's  financial  statements for periods ending
         after March 15, 2004.  The general  partners  believe  adoption of this
         standard may result in either  consolidation  or additional  disclosure
         requirements of the Partnership's  unconsolidated joint ventures, 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 X, LTD.
                         (A Florida Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


2.       Real Estate Properties with Operating Leases

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

<TABLE>

                                                                       2003                 2002
                                                                -------------------   ------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

                   Land                                              $   8,019,375        $   8,019,375
                   Building                                              8,141,147            8,141,147
                                                                ------------------   -------------------
                                                                        16,160,522           16,160,522

                   Less accumulated depreciation                        (2,615,552 )         (2,312,493 )
                                                                -------------------   ------------------

                                                                     $  13,544,970        $  13,848,029
                                                                ===================   ==================
</TABLE>

         In June 2002, the  Partnership  reinvested the majority of the proceeds
         from the sale of the property in San Marcos, Texas and a portion of the
         return of capital received from CNL Restaurant Investments III from the
         sale of its  property in  Greensboro,  North  Carolina in a property in
         Houston,  Texas at an approximate  cost of $1,281,500.  The Partnership
         acquired this property from CNL Funding 2001-A, LP, an affiliate of the
         general partners.

         The following is a schedule of the future  minimum lease payments to be
         received on non-cancellable operating leases at December 31, 2003:

                     2004                      $    2,002,335
                     2005                           2,016,183
                     2006                           1,982,223
                     2007                           1,321,369
                     2008                           1,216,660
                     Thereafter                     4,770,163
                                               ---------------

                                                 $ 13,308,933 (1)
                                               ===============


(1) Excludes one property which was classified as real estate held for sale.




<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


3.       Net Investment in Direct Financing Leases

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

                                                                            2003                2002
                                                                      -----------------    ----------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

                 Minimum lease payments receivable                       $   9,297,085        $ 10,477,254
                 Estimated residual values                                   3,040,968           3,040,968
                 Less unearned income                                       (4,671,528 )        (5,511,871 )
                                                                      -----------------    ----------------

                 Net investment in direct financing leases               $   7,666,525        $  8,006,351
                                                                      =================    ================
</TABLE>

         The  following  is a schedule of future  minimum  lease  payments to be
         received on the direct financing leases at December 31, 2003:

                      2004                      $1,190,953
                      2005                       1,192,288
                      2006                       1,192,608
                      2007                       1,235,510
                      2008                       1,248,167
                      Thereafter                 3,237,559
                                              -------------

                                                $9,297,085  (1)
                                              =============

(1) Excludes one property which was classified as real estate held for sale.

4.       Investment in Joint Ventures

         The Partnership has a 50%, a 10.51%, a 40.95%, a 10%, a 13% and a 6.69%
         interest in the profits and losses of CNL Restaurant  Investments  III,
         Ashland Joint Venture,  Williston Real Estate Joint Venture,  CNL VIII,
         X, XII Kokomo Joint Venture, and a property in Clinton, North Carolina,
         and a  property  in  Miami,  Florida,  held as  tenants-in-common  with
         affiliates of the general  partners.  The remaining  interests in these
         joint ventures are held by affiliates of the Partnership which have the
         same general partners.

         In  January  2002,  the   Partnership   reinvested  a  portion  of  the
         liquidation proceeds received during 2001 from Peoria Joint Venture, in
         which the  Partnership  owned a 52% interest,  in a property in Austin,
         Texas,  as  tenants-in-common,  with CNL Income  Fund XVIII,  Ltd.,  an
         affiliate  of the  general  partners.  The  Partnership  acquired  this
         property  from CNL  Funding  2001-A,  LP, an  affiliate  of the general
         partners.  The Partnership and CNL Income Fund XVIII, 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.  The Partnership  contributed  approximately  $915,200 for an
         81.65% interest in this property.


<PAGE>



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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


4.       Investment in Joint Ventures - Continued

         In May 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 $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 addition, in June 2002, Ashland Joint Venture, in which the
         Partnership owns a 10.51% interest,  sold its property in Ashland,  New
         Hampshire to the tenant and received net sales  proceeds of $1,472,900,
         resulting in a gain of  approximately  $500,900.  Ashland Joint Venture
         used the  majority  of the  proceeds  to  invest in a  property  in San
         Antonio,  Texas at an approximate  cost of $1,343,000.  The Partnership
         and joint venture  acquired these  properties  from CNL Funding 2001-A,
         LP,  an  affiliate  of the  general  partners.  The  financial  results
         relating to the properties in  Greensboro,  North Carolina and Ashland,
         New Hampshire are reflected as discontinued  operations in the combined
         condensed financial information below.

         In  September  2003,  CNL  Ocean  Shores  Joint  Venture,  in which the
         Partnership owned a 69.06% interest, sold its property to a third party
         for $824,600 resulting in a gain of approximately  $413,700.  The joint
         venture recorded  provisions for write-down of assets in previous years
         relating  to this  property.  The  Partnership  and the  joint  venture
         partner  dissolved  the  joint  venture  in  accordance  with the joint
         venture  agreement  and  did  not  recognize  a  gain  or  loss  on the
         dissolution.    The   Partnership   received   approximately   $541,900
         representing  its pro  rata  share  of the  liquidation  proceeds.  The
         General  Partners  intend to reinvest  the  liquidation  proceeds in an
         additional  property.  The financial  results relating to this property
         are  reflected as  discontinued  operations  in the combined  condensed
         financial information below.

         In November 2003, the  Partnership  and CNL Income Fund XIII,  Ltd, CNL
         Income   Fund  XIV,   Ltd.,   and  CNL  Income   Fund  XV,   Ltd.,   as
         tenants-in-common,  invested in a property in Tucker,  Georgia. Each of
         the CNL Income  Funds is an  affiliate  of the  general  partners.  The
         Partnership  and  affiliates  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
         contributed approximately $184,400 for a 12% interest in the property.

         CNL  Restaurant  Investments  III owns five  properties.  Ashland Joint
         Venture,  Williston Real Estate Joint Venture,  CNL VIII, X, XII Kokomo
         Joint Venture and the Partnership  and affiliates as  tenants-in-common
         in four separate tenancy-in-common arrangements, each own one property.



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


4.       Investment in Joint Ventures - Continued

         The  following  presents  the  joint  ventures'   combined,   condensed
         financial information at December 31:
<TABLE>

                                                                          December 31,         December 31,
                                                                              2003                 2002
                                                                         ---------------      ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

          Real estate properties with operating leases, net                $ 12,361,495         $ 11,096,447
          Net investment in direct financing leases                             615,982              633,362
          Real estate held for sale                                                  --              377,303
          Cash                                                                   71,873               31,871
          Receivables                                                            18,000               20,476
          Accrued rental income                                                  82,525               79,333
          Other assets                                                           42,889               27,511
          Liabilities                                                            10,004               11,670
          Partners' capital                                                  13,182,760           12,254,633

                                                                           Years Ended December 31,
                                                                     2003            2002            2001
                                                                ---------------  --------------  --------------

           Continuing Operations:
            Revenues                                               $ 1,399,225     $ 1,315,445     $ 1,135,785
            Expenses                                                  (319,278 )      (303,587 )      (250,811 )
                                                                ---------------  --------------  --------------
                 Income from continuing operations                   1,079,947       1,011,858         884,974

           Discontinued Operations:
            Revenues                                                        --          83,519         254,185
            Expenses                                                   (15,827 )       (46,147 )       (73,210 )
            Provision for write-down of assets                              --              --        (781,741 )
            Gain on disposal of real estate properties                 413,665         872,385              --
                                                                ---------------  --------------  --------------
                                                                       397,838         909,757        (600,766 )

           Net income                                              $ 1,477,785    $  1,921,615      $  284,208
                                                                ===============  ==============  ==============
</TABLE>

         The Partnership  recognized income of $616,705,  $578,394 and a loss of
         $88,921  for  the  years  ended  December  31,  2003,  2002  and  2001,
         respectively, from these joint ventures.

5.       Discontinued Operations

         During 2002, the Partnership sold its property in San Marcos,  Texas to
         a  third  party  and  received  net  sales  proceeds  of  approximately
         $1,161,100, resulting in a gain of approximately $169,400. In addition,
         the  Partnership  sold its property in Ft.  Pierce,  Florida to a third
         party  and  received  net sales  proceeds  of  approximately  $329,200,
         resulting  in a loss  of  approximately  $2,200.  The  Partnership  had
         recorded provisions for write-down of assets of approximately  $593,900
         in  previous  years  because  the tenant  vacated  the  property in Ft.
         Pierce,  Florida and the  Partnership had not been able to re-lease the
         property. The

<PAGE>



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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


5.       Discontinued Operations - Continued

         provisions represented the difference between the carrying value of the
         property and its estimated  fair value.  During 2003,  the  Partnership
         identified an additional  property for sale. As a result,  the property
         was reclassified  from real estate properties with operating leases and
         net investment in direct financing leases to real estate held for sale.
         The  reclassified  assets were recorded at the lower of their  carrying
         amounts  or fair  value,  less  cost to  sell.  The  financial  results
         relating to these  properties are reflected as discontinued  operations
         in the accompanying financial statements.

         The operating results of the discontinued operations for these
properties are as follows:
<TABLE>

                                                                    Year Ended December 31,
                                                           2003              2002              2001
                                                       -------------     -------------    ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

                Rental revenues                           $ 100,097      $    157,668       $    206,796
                Expenses                                       (312 )         (40,930 )          (54,247 )
                Provision for write-down of assets               --                --           (306,659 )
                                                       -------------     -------------    ---------------
                Income (loss) from discontinued
                      operations                           $ 99,785        $   16,738           (154,110 )
                                                       =============     =============    ===============
</TABLE>

6.       Allocations and Distributions

         From inception through December 31, 1999, 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,  10%,
         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,  in general,
         allocated  first,  on a pro  rata  basis,  to  partners  with  positive
         balances in their capital accounts; and thereafter,  95% to the limited
         partners and 5% to the general partners.


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


6.       Allocations and Distributions - Continued

         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% to the
         limited partners and 5% 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  partners in
         succeeding years. Accordingly,  the general partners were not allocated
         any net income and did not receive any  distributions  during the years
         ended December 31, 2003, 2002 and 2001.

         During  the  years  ended  December  31,  2003,   2002  and  2001,  the
         Partnership   declared   distributions   to  the  limited  partners  of
         $3,600,004.  No distributions have been made to the general partners to
         date.


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


7.       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>

                                                                           2003            2002            2001
                                                                       --------------  --------------  --------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

             Net income for financial reporting purposes                 $ 2,843,670     $ 3,027,152     $ 1,732,654

             Effect of timing differences relating to depreciation          (138,015)       (126,906)       (159,214)

             Direct financing leases recorded as operating
                 leases for tax reporting purposes                           364,695         308,494         253,735

             Effect of timing differences relating to equity
                 in earnings of unconsolidated joint ventures               (617,784)         41,104         635,668

             Effect of timing differences relating to gain on
             sale of                                                              --        (562,039)             --
                 real estate properties

             Provision for write-down of assets                                                   --         391,186
                                                                                  --
             Effect of timing differences relating to
                 allowance for  doubtful accounts                                 --         (24,814)       (259,699)


             Accrued rental income                                            54,137          43,062         (32,350)

             Deferred rental income                                               --         (24,962)        (1,645)

             Rents paid in advance                                            15,746          68,542          25,046

             Effect of timing differences relating to minority                  (500 )          (634)          1,089
                interest

             Other                                                              (385)             --              --
                                                                       --------------  --------------  --------------

             Net income for federal income tax purposes                  $ 2,521,564     $ 2,748,999     $ 2,586,470
<                                                                       ==============  ==============  ==============

</TABLE>


8.       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 Restaurant
         Properties, Inc. (formerly known as CNL American Properties Fund, Inc.)
         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.  (the  "Advisor").  The  Advisor  is a wholly  owned
         subsidiary  of  CNL  Restaurant   Properties,   Inc.  ("CNL-RP").   The
         individual general partners are stockholders and directors of CNL-RP.



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


8.       Related Party Transactions - Continued

         The Advisor provides services  pursuant to a management  agreement with
         the Partnership. In connection therewith, the Partnership has 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 will be incurred  and will be payable
         only after the limited partners receive their 10% Preferred Return. Due
         to the fact that these fees are noncumulative,  if the limited partners
         do not receive 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, 2003, 2002, and 2001.

         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 3% 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.  In addition, the real
         estate  disposition  fee is  subordinated to the 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.

         In January 2002, the  Partnership  and CNL Income Fund XVIII,  Ltd., as
         tenants-in-common,  acquired  a  property,  in  Austin,  Texas,  for  a
         purchase price of approximately  $1,120,800. In addition, in June 2002,
         the  Partnership  acquired a property in Houston,  Texas for a purchase
         price of  approximately  $1,281,500  and,  in a  separate  transaction,
         Ashland Joint Venture acquired a property in San Antonio,  Texas for an
         approximate  cost  of  $1,343,000.   The  Partnership   acquired  these
         Properties  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 respective
         purchase  prices  paid  by  the  Partnership  and  the  joint  ventures
         represented the costs incurred by CNL Funding 2001-A, LP to acquire and
         carry the properties.

         During  the  years  ended  December  31,  2003,  2002,  and  2001,  the
         Partnership's  advisor  and  its  affiliates  provided  accounting  and
         administrative  services.  The Partnership incurred $164,623,  $209,751
         and $204,843 for the years ended  December  31, 2003,  2002,  and 2001,
         respectively, for such services.

         The  amounts  due to related  parties at  December  31,  2003 and 2002,
         totaled $14,269 and $17,330, respectively.


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


9.       Concentration of Credit Risk

         The following  schedule  presents total rental revenues from individual
         lessees,  or affiliated groups of lessees,  each representing more than
         10%  of  the  Partnership's   total  rental  revenues   (including  the
         Partnership's share of total rental revenues from unconsolidated  joint
         ventures and the properties held as  tenants-in-common  with affiliates
         of the general partners) for each of the years ended December 31:
<TABLE>

                                                              2003               2002                2001
                                                         ---------------    ---------------     ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>


          Golden Corral Corporation                           $ 725,103          $ 743,095          $  702,567
          Jack in the Box Inc.                                  375,721            450,222             506,446
          Carrols Corp.                                         461,486            412,820                 N/A
          Burger King Corporation                                   N/A                N/A             339,808
</TABLE>

         In addition, the following schedule presents total rental revenues from
         individual  restaurant  chains,  each representing more than 10% of the
         Partnership's  total rental revenues (including the Partnership's share
         of total rental  revenues from  unconsolidated  joint  ventures and the
         properties  held as  tenants-in-common  with  affiliates of the general
         partners) for each of the years ended December 31:
<TABLE>

                                                          2003                 2002                2001
                                                     ----------------     ----------------    ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

              Golden Corral Buffet and Grill              $  725,103           $  743,095         $  702,567
              Burger King                                    623,288              678,506            741,334
              Jack in the Box                                375,721              450,222            506,446
              Hardee's                                       367,274              378,031            384,914
</TABLE>

         The  information   denoted  by  N/A  indicates  that  for  each  period
         presented,   the  tenant  did  not  represent  more  than  10%  of  the
         Partnership's total rental revenues.

         Although the Partnership's properties have some geographic diversity in
         the United States and the  Partnership's  lessees  operate a variety of
         restaurant  concepts,   default  by  any  lessee  or  restaurant  chain
         contributing  more  than  10%  of  the   Partnership's   revenues  will
         significantly  impact the results of operations of the  Partnership  if
         the  Partnership  is not able to re-lease  the  properties  in a timely
         manner.


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


10.      Selected Quarterly Financial Data

         The following table presents  selected  unaudited  quarterly  financial
         data for each full quarter during the years ended December 31, 2003 and
         2002:
<TABLE>


                  2003 Quarter              First         Second          Third         Fourth            Year
         -------------------------------  -----------  -------------   ------------  -------------   ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

         Continuing Operations (1):
           Revenues                        $ 690,040      $ 691,845      $ 691,245      $ 726,114       $ 2,799,244
           Equity in earnings of
              unconsolidated joint
              ventures                        74,890         79,616        370,078         92,121           616,705
           Income from continuing
              operations                     557,425        612,748        910,333        663,379         2,743,885

         Discontinued operations (1):
           Revenues                           24,629         24,452         24,270         26,746           100,097
           Income from discontinued
              operations                      24,417         24,452         24,170         26,746            99,785

         Net income                          581,842        637,200        934,503        690,125         2,843,670

         Income per limited partner unit:

           Continuing operations             $  0.14       $   0.15       $   0.23       $   0.17         $    0.69
           Discontinued operations              0.01           0.01             --             --              0.02
                                          -----------  -------------   ------------  -------------   ---------------
                                             $  0.15       $   0.16       $   0.23       $   0.17         $    0.71
                                          ===========  =============   ============  =============   ===============
</TABLE>


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


10.      Selected Quarterly Financial Data - Continued

<TABLE>

                  2002 Quarter              First         Second          Third         Fourth            Year
         -------------------------------  -----------  -------------   ------------  -------------   ---------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>


         Continuing Operations (1):
           Revenues                        $ 693,193      $ 669,899      $ 726,128      $ 746,530       $ 2,835,750
           Equity in earnings of
              unconsolidated joint
              ventures                        82,433        329,671         89,270         77,020           578,394
           Income from continuing
              operations                     585,344        826,560        661,356        669,965         2,743,225

         Discontinued operations (1):
           Revenues                           50,331         57,568         24,969         24,800           157,668
           Income from and gain on
         disposal of discontinued
              operations                      41,622        211,128         15,724         15,453           283,927

         Net income                          626,966      1,037,688        677,080        685,418         3,027,152

         Income per limited partner unit:

           Continuing operations             $  0.15       $   0.21       $   0.16       $   0.17         $    0.69
           Discontinued operations              0.01           0.05           0.01             --              0.07
                                          -----------  -------------   ------------  -------------   ---------------
                                             $  0.16       $   0.26       $   0.17       $   0.17         $    0.76
                                          ===========  =============   ============  =============   ===============
</TABLE>



     (1) Certain items in the quarterly financial data have been reclassified to
         conform to 2003 presentation.  This  reclassification  had no effect on
         net income. 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.  The results of operations relating
         to  properties  that were either  identified  for sale and  disposed of
         subsequent to January 1, 2002 or were classified as held for sale as of
         December  31, 2003 are  reported  as  discontinued  operations  for all
         periods presented.







<PAGE>


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

         None.


Item 9A. 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  as of the end of the period
covered  by this  Annual  Report  on Form  10-K and have  determined  that  such
disclosure controls and procedures are effective.

         There was no change in internal  control over financial  reporting that
occurred during the most recent fiscal quarter that has materially affected,  or
is  reasonably  likely to materially  affect,  internal  control over  financial
reporting.


                                    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-RP,  CCM, CNL Financial  Group,  Inc. and their
affiliates, all of which are affiliates of the General Partners.

         James M. Seneff, Jr., age 57. 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 CNL-RP, a public,  unlisted real
estate investment trust since 1994. Mr. Seneff served as Chief Executive Officer
of CNL-RP from 1994 through August 1999 and as Co-Chief  Executive  Officer from
December 2000 through September 2003. Mr. Seneff served as Chairman of the Board
and  Chief  Executive  Officer  of  CNL  Fund  Advisors,   Inc.,   formerly  the
Partnership's  advisor,  from  its  inception  in 1990  until it  merged  with a
wholly-owned  subsidiary  of CNL-RP in  September  1999,  and in June 2000,  was
re-elected  to those  positions of CNL Fund  Advisors,  Inc. CNL Fund  Advisors,
Inc.,  formerly CNL  Institutional  Advisors,  Inc., is a registered  investment
advisor. Mr. Seneff is a principal stockholder of CNL Holdings, Inc., the parent
company of CNL Financial 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 1973. CNL Financial Group, Inc. is and 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 and Chairman of the Board of CNL
Hospitality  Properties,  Inc., a public, unlisted real estate investment trust;
and served as Chief Executive Officer of CNL Hospitality  Properties,  Inc. from
its inception in 1997 until 2003 and served as Co-Chief  Executive  Officer from
February 2003 until May 1, 2003.  Mr. Seneff has served as Chairman of the Board
of CNL Hospitality Corp., the advisor to CNL Hospitality Properties, Inc., since
its inception in 1997.  Mr. Seneff also served as Chief  Executive  Officer from
its inception in 1997 through  February 2003,  and currently  serves as Co-Chief
Executive Officer of CNL Hospitality Corp. Mr. Seneff has served as Director and
Chairman  of the Board of CNL  Retirement  Corp.  since 1997 and served as Chief
Executive Officer of CNL Retirement Corp. from 1997 through 2003. CNL Retirement
Corp. is the advisor to CNL Retirement Properties, Inc., a public, unlisted real
estate  investment trust. Mr. Seneff has also served as Director and Chairman of
the Board of Commercial Net Lease Realty,  Inc., a public real estate investment
trust  that is listed on the New York Stock  Exchange,  since 1992 and served as
Chief Executive  Officer of Commercial Net Lease Realty,  Inc. from 1992 through
February 2004. Mr. Seneff has served as a Director,  Chairman of the Board,  and
Chief Executive Officer of CNL Securities Corp. since its formation in 1979; CNL
Investment  Company  since  1990;  and  CNL  Institutional  Advisors,   Inc.,  a
registered  investment  advisor for pension  plans,  since 1990.  Mr. Seneff has
served as Chairman of the Board and Chief  Executive  Officer of CNL  Commercial
Finance,  Inc.  since 2000.  Mr.  Seneff also serves as Chairman of the Board of
CNLBank, 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 the
Florida  state  retirement  plan.  Mr.  Seneff  received  his degree in Business
Administration from Florida State University in 1968.

         Robert A.  Bourne,  age 56. 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 has
served as a Director and Vice  Chairman of the Board of CNL-RP  since 1994.  Mr.
Bourne also served as President of CNL-RP from 1994  through  February  1999 and
served as Treasurer  from  February  1999 through  August 1999 and from May 1994
through December 1994. Mr. Bourne served in various executive positions with CNL
Fund Advisors, Inc. prior to its merger with a wholly-owned subsidiary of CNL-RP
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. Mr. Bourne serves as Director,  Vice Chairman of the Board
and  Treasurer  and from  1997  until  June  2002  served  as  President  of CNL
Hospitality  Properties,  Inc. and as Director,  President  and Treasurer of CNL
Hospitality  Corp.  Mr.  Bourne  also serves as Director  and  Treasurer  of CNL
Retirement  Properties,  Inc.  and as Director and  Treasurer of CNL  Retirement
Corp. Mr. Bourne serves as a Director of CNLBank.  Mr. Bourne has also 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. Mr. Bourne 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. 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 48. Mr. McWilliams has served as President of
CNL-RP since May 2001 and as Chief  Executive  Officer of CNL-RP since September
2003.  Mr.  McWilliams  served as  Co-Chief  Executive  Officer  of CNL-RP  from
December 2000 through  September 2003 and served as Chief Executive Officer from
September 1999 through  December 2000. Mr.  McWilliams  also served as President
and Chief  Executive  Officer of CNL  Franchise  Network  Corp.,  a wholly owned
subsidiary  of CNL-RP  since  August 2002 and served as President of CNL-RP from
February 1999 until  September  1999 and as Executive  Vice  President of CNL-RP
from 1997 through  February  1999.  Mr.  McWilliams  served as an Executive Vice
President of CNL  Financial  Group,  Inc. from the time he joined the company in
April 1997 until September 1999. 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  CNL-RP 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  40.  Mr.  Shackelford  was  promoted  to
Executive  Vice  President  and Chief  Operating  Officer of CNL-RP in September
2003. Mr.  Shackelford has also served as Chief Financial  Officer since January
1997.  He served as Senior Vice  President  of CNL-RP from  January 1997 through
July 2000, when he was promoted to Executive Vice President. Mr. Shackelford has
also served as Secretary and Treasurer of CNL-RP 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.

         Thomas Arasi, age 46. Mr. Arasi has served as President of CCM since it
was formed in July 2003 to provide  strategic  advisory  services to the General
Partners. He has served in various consulting capacities to CNL Hospitality Corp
and other CNL affiliates  since January 2003. Since November 2001 he has been an
independent  consultant  working  for a  variety  of  operating  and  investment
companies  in the  hospitality  industry.  Until  October  2001,  Mr.  Arasi was
President & Chief Executive  Officer,  and a member of the Board of Directors of
Lodgian,  Inc., a New York Stock  Exchange  traded  company,  one of the largest
independent hotel  owner/operators in North America, with hotel properties under
most brand names  including  Marriott,  Courtyard by Marriott,  Fairfield Inn by
Marriott,  Crowne  Plaza,  Holiday Inn,  Hilton,  and  Radisson.  From June 1997
through  November 2000,  Mr. Arasi was a member of the Management  Committee and
held  several top  operating  positions  with Bass Hotels & Resorts,  one of the
leading international owners, operators and franchisors of hotels, most recently
serving as President, Bass Hotels & Resort--The Americas. Mr. Arasi was formerly
President of Tishman  Hotel  Corporation,  Vice  President of Salomon  Brothers,
Inc.,  in New York,  Tokyo and Los Angeles  and held  positions  with  Sheraton,
Westin and HVS  International.  Mr. Arasi  graduated from Cornell  University in
January  1981,  where he received a  Bachelor's  degree in Hotel and  Restaurant
Administration.

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 2003.

Code of Business Conduct

         The  Partnership  does not have  employees  and,  accordingly,  has not
adopted a code of business  conduct  applicable  exclusively to the Partnership.
However,  employees of the General Partners or their  affiliates,  including the
individual  General Partners,  are bound by the Code of Business Conduct adopted
November 11, 2003 by CNL Holdings, Inc. Separately, the employees of the Advisor
are bound by the similar  Code of  Business  Conduct  adopted by CNL  Restaurant
Properties,  Inc. Each of these codes of business conduct will be made available
to any person who writes the Partnership requesting a copy.

Audit Committee Financial Expert

         Due to its organization as a limited partnership,  the Partnership does
not  have  an  audit   committee  that  is  responsible   for   supervising  the
Partnership's  relationship with its independent auditors.  For the Partnership,
this role is performed by the General Partners. Based on his previous service as
the principal  financial officer of companies with businesses similar to that of
the  Partnership,  Robert  A.  Bourne,  one of the  General  Partners,  has  the
requisite  experience to be considered an "audit committee  financial expert" as
defined  in  the  rules  under  the  Securities  Exchange  Act of  1934,  if the
Partnership  had an audit  committee.  As a General  Partner,  Mr. Bourne is not
independent of the Partnership.


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 and
         Related Stockholder Matters

         As of March 12,  2004,  no person was known to the  Registrant  to be a
beneficial owner of more than 5% of the Units.

         The following  table sets forth,  as of March 12, 2004,  the beneficial
ownership interests of the General Partners in the Registrant.
<TABLE>

                    Title of Class                           Name of Partner                 Percent of Class
<S>     <C>    <C>    <C>    <C>    <C>    <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 has no equity compensation plans.


<PAGE>


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, 2003,  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>

                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
          and Recipient                        Method of Computation                  Ended December 31, 2003
----------------------------------     --------------------------------------      ------------------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Reimbursement  to affiliates  for      Operating  expenses are reimbursed at       Accounting  and
operating expenses                     the  lower  of  cost  or  90%  of the       administrative     services:
                                       prevailing  rate at which  comparable       $164,623
                                       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.


</TABLE>


<PAGE>


<TABLE>

                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
         and Recipient                         Method of Computation                  Ended December 31, 2003
---------------------------------      --------------------------------------      ------------------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

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) 3% 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 5% of Partnership distributions
Partnership net sales proceeds         of such net sales proceeds,
from a sale or sales not in            subordinated to certain minimum
liquidation of the Partnership         returns to the Limited Partners.


<PAGE>



                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
         And Recipient                         Method of Computation                  Ended December 31, 2003
---------------------------------      --------------------------------------      ------------------------------

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>


Item 14. Principal Accountant Fees and Services

The following  table  outlines the only fees paid or accrued by the  Partnership
for the audit and  other  services  provided  by the  Partnership's  independent
certified public  accountants,  PricewaterhouseCoopers  LLP, for the years ended
December 31:
<TABLE>

                                                    2003                                      2002
                                            ---------------------                     ---------------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Audit Fees (1)                                      $     15,456                               $    12,600
Tax Fees (2)                                               8,135                                     7,125
                                            ---------------------                     ---------------------
     Total                                          $     23,591                               $    19,725
                                            =====================                     =====================
</TABLE>


    (1)  Audit  services  of  PricewaterhouseCoopers   LLP  for  2003  and  2002
         consisted  of  the  examination  of  the  financial  statements  of the
         Partnership and quarterly review of financial statements.

    (2)  Tax Fees relates to tax consulting and compliance services.

Each of the  non-audit  services  described  above was  approved  by the General
Partners. Due to its organization as a limited partnership, the Partnership does
not have an audit committee.





<PAGE>


                                     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, 2003 and 2002

                  Statements  of Income for the years ended  December  31, 2003,
                     2002, and 2001

                  Statements of Partners'  Capital for the years ended  December
                     31, 2003, 2002, and 2001

                  Statements  of Cash  Flows for the years  ended  December  31,
                     2003, 2002, and 2001

                  Notes to Financial Statements

         2.   Financial Statement Schedules

                  Schedule II -Valuation and  Qualifying  Accounts for the years
                     ended December 31, 2003, 2002, and 2001

                  Schedule  III - Real Estate and  Accumulated  Depreciation  at
                     December 31, 2003

                  Notes  to  Schedule   III  -  Real   Estate  and   Accumulated
                     Depreciation at December 31, 2003

                  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 X, Ltd.  (Included  as Exhibit 3.2 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 X, Ltd.  (Included  as Exhibit 3.2 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 X, Ltd.  (Included  as Exhibit 3.3
                           to  Post-Effective  Amendment  No. 4 to  Registration
                           Statement No. 33-35049 on Form S-11 and  incorporated
                           herein by reference.)

                  10.1     Management  Agreement between CNL Income Fund X, 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
                           and  Exchange  Commission  on August  13,  2001,  and
                           incorporated herein by reference.)

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

                  31.1     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. (Filed herewith.)

                  31.2     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. (Filed herewith.)

                  32.1     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.)

                  32.2     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, 2003 through December 31, 2003.






<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 25th day of
March, 2004.

                                         CNL INCOME FUND X, 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.




<PAGE>




         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>

               Signature                                  Title                                  Date
<S>     <C>    <C>    <C>    <C>    <C>    <C>



/s/ Robert A. Bourne                     President,   Treasurer   and   Director            March 25, 2004
------------------------------------
Robert A. Bourne                         (Principal   Financial  and  Accounting
                                         Officer)

/s/ James M. Seneff, Jr.                 Chief  Executive  Officer and  Director            March 25, 2004
------------------------------------
James M. Seneff, Jr.                     (Principal Executive Officer)

</TABLE>

<PAGE>



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

                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                  Years Ended December 31, 2003, 2002, and 2001

<TABLE>


                                                     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
----------    -----------------   --------------  ---------------  ----------------    -------------     ------------  ------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

  2001        Allowance for
                  doubtful
                  accounts (a)        $ 287,901          $    --        $   86,387 (b)    $ 343,554 (c)     $  1,079      $ 29,655
                                  ==============  ===============  ================    =============     ============  ============

  2002        Allowance for
                  doubtful
                  accounts (a)        $  29,655          $    --           $    --           $   --         $ 24,814      $  4,841
                                  ==============  ===============  ================    =============     ============  ============

  2003        Allowance for
                  doubtful
                  accounts (a)         $  4,841         $     --          $     --          $    --           $   --      $  4,841
                                  ==============  ===============  ================    =============     ============  ============
</TABLE>



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

     (b)  Reduction of rental, earned and other income.

     (c)  Amounts written off as uncollectible.


<PAGE>

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

             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

                                December 31, 2003


<TABLE>
                                                                         Subsequent To              Net Cost Basis at Which
                                                 Initial Cost             Acquisition               Carried at Close of Period (c)
                                         ----------------------------  --------------------  ---------------------------------------
                               Encum-                 Buildings and  Improve-    Carrying                Buildings and
                              brances        Land      Improvements   ments     Costs        Land       Improvements     Total
                             ----------  ------------ ------------  ----------  --------  ------------  ------------  ---------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

Properties the Partnership
  has Invested in Under
  Operating Leases:

    Burger King Restaurants:
      Hendersonville, North Carol-na       222,632      568,573            -         -       222,632       568,573       791,205
      Irondequoit, New York      -         383,359      554,084            -         -       383,359       554,084       937,443

    Denny's Restaurants:
      Fremont, Ohio              -         160,896            -      273,700         -       160,896       273,700       434,596
      Spartanburg, South Carolina-         287,959            -            -         -       287,959            (f)      287,959

    Golden Corral Buffet and Grill:
          Austin, Texas          -         592,837            -    1,106,384         -       592,837     1,106,384     1,699,221
          Austin, Texas          -         711,354            -    1,124,040         -       711,354     1,124,040     1,835,394
          Las Cruces, New Mexico -         580,655      920,521            -         -       580,655       920,521     1,501,176
          Freemont, Nebraska               203,166    1,054,051            -         -       203,166     1,054,051     1,257,217

    Hardee's Restaurants:
      Pace, Florida              -         174,850            -            -         -       174,850            (f)      174,850
      Jacksonville, Florida      -         326,972            -            -         -       326,972            (f)      326,972
      Centerville, Tennnessee    -         130,494            -            -         -       130,494            (f)      130,494

    Jack in the Box Restaurants:
      Desloge, Missouri          -         276,701            -            -         -       276,701            (f)      276,701
      San Antonio, Texas         -         327,322            -            -         -       327,322            (f)      327,322
      Missouri City, Texas       -         348,646            -            -         -       348,646            (f)      348,646
      Pasadena, Texas            -         202,393            -            -         -       202,393            (f)      202,393

    Long John Silver's Restaurants:
      Alamogordo, New Mexico     -         157,401            -            -         -       157,401            (f)      157,401
      Las Cruces, New Mexico     -         222,778            -            -         -       222,778            (f)      222,778

    Pizza Hut Restaurants:
      Bozeman, Montana           -          99,879      224,614            -         -        99,879       224,614       324,493
      Sidney, Montana                      101,690            -            -         -       101,690            (f)      101,690
      Livingston, Montana        -          71,989      161,211            -         -        71,989       161,211       233,200
      Laurel, Montana                      109,937      255,060            -         -       109,937       255,060       364,997

    Shoney's Restaurants:
      North Richland Hills, Texas-(i)      528,465            -      404,786         -       513,032       404,786       917,818
      Pelham, Alabama                      410,448            -      427,317         -       410,448       427,317       837,765

    Taco Cabana Restaurant:
      Houston, Texas             -         729,796      551,672            -         -       729,796       551,672     1,281,468

    Other:
      Homewood, Alabama          -         597,907            -            -         -       348,616             -       348,616
      Greenville, North Carolina -         323,573      515,134            -         -       323,573       515,134       838,707

                                       ------------  ------------   ---------  --------  ------------  ------------  ------------

                                        $8,284,099   $4,804,920    $3,336,227        -    $8,019,375    $8,141,147   $16,160,522
                                       ============ ============   ==========  ========  ============  ============  ============

Properties the Partnership
   has Invested in Under
   Direct Financing Leases:

    Burger King Restaurants:
        Ashland, Ohio            -        $190,695     $724,348           -          -            (f)           (f)           (f)
        Allegan, Michigan        -          91,238            -     418,782          -            (f)           (f)           (f)
        New Bethlehem, Pennsylvan-a        135,929      452,507           -          -            (f)           (f)           (f)

    Denny's Restaurants:
        Spartanburg,
             South Carolina      -               -      529,410           -          -             -            (f)           (f)

    Hardee's Restaurants:
        Pace, Florida            -               -      467,272           -          -             -            (f)           (f)
        Jacksonville, Florida    -               -      405,985           -          -             -            (f)           (f)
        Hohenwald, Tennessee     -          49,201      376,415           -          -            (f)           (f)           (f)
        Ravenna, Ohio            -         114,244      496,032           -          -            (f)           (f)           (f)
        Morristown, Tennessee    -         131,289      456,925           -          -            (f)           (f)           (f)
        Centerville, Tennessee   -               -      348,032           -          -             -            (f)           (f)

    Jack in the Box Restaurants:
        Desloge, Missouri        -               -      630,981           -          -             -            (f)           (f)
        San Antonio, Texas       -               -            -     206,031          -             -            (f)           (f)
        Nampa, Idaho             -         151,574      584,533           -          -            (f)           (f)           (f)
        Missouri City, Texas     -               -      619,686           -          -             -            (f)           (f)
        Pasadena, Texas          -               -      575,429           -          -             -            (f)           (f)

    Long John Silver's Restaurants:
        Alamogordo, New Mexico   -               -      275,270      20,204          -             -            (f)           (f)
        Las Cruces, New Mexico   -               -      318,378      57,828          -             -            (f)           (f)

    Pizza Hut Restaurants:
        Glasgow, Montana         -          57,482      266,726           -          -            (f)           (f)           (f)
        Sidney, Montana          -               -      291,238           -          -             -            (f)           (f)

                                        ---------- ------------  ----------
                                          $921,652   $7,819,167    $702,845          -
                                        ========== ============  ==========   --------
</TABLE>


<PAGE>


                                     Life on Which
                                     Depreciation in
               Date                  Latest Income
Accumulated   of Con-    Date        Statement is
Depreciation  structionAcquired        Computed
------------  -------  ----------    -------------





    132,347    1986      11/91           (h)
    128,974    1986      11/91           (h)


     97,575    1992      12/91           (g)
          -    1992      03/92           (d)


    462,539    1992      12/91           (b)
    446,768    1992      12/91           (b)
    357,532    1992      05/92           (b)
    167,085    1998      03/99           (b)


          -    1992      01/92           (d)
          -    1990      02/92           (d)
          -    1991      02/92           (d)


          -    1991      12/91           (d)
          -    1992      02/92           (d)
          -    1991      04/92           (d)
          -    1991      04/92           (d)


          -    1977      03/92           (d)
          -    1975      03/92           (d)


     87,693    1976      03/91           (b)
          -    1985      03/91           (d)
     62,941    1979      03/91           (b)
     99,572    1985      03/91           (b)


    163,791    1992      12/91           (b)
    170,888    1992      01/92           (b)


     29,111    1999      06/02           (b)


          -    1997      10/97           (b)
    208,736    1987      11/91           (b)

------------

 $2,615,552
============






          -    1988      11/91           (e)
          -    1992      04/92           (e)
          -    1991      04/92           (e)



          -    1992      03/92           (d)


          -    1992      01/92           (d)
          -    1990      02/92           (d)
          -    1991      02/92           (e)
          -    1991      04/92           (e)
          -    1991      04/92           (e)
          -    1991      02/92           (d)


          -    1991      12/91           (d)
          -    1992      12/91           (d)
          -    1991      12/92           (e)
          -    1991      04/92           (d)
          -    1991      04/92           (d)


          -    1977      03/92           (d)
          -    1975      03/92           (d)


          -    1985      03/91           (e)
          -    1985      03/91           (d)



<PAGE>


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

               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                                  DEPRECIATION

                                December 31, 2003


(a)      Transactions in real estate and accumulated depreciation are summarized
         below.  The  balances  in 2001,  2002 and 2003  have been  adjusted  to
         reflect  the   reclassification   of   properties   accounted   for  as
         discontinued operations.

<TABLE>


                                                                                        Accumulated
                                                                        Cost           Depreciation
                                                                  -----------------   ----------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>

              Properties the Partnership has Invested in
                  Under Operating Leases:

                      Balance, December 31, 2000                     $  15,201,145       $  1,720,970
                      Provision for write-down of assets                  (322,092 )               --
                      Depreciation expense                                      --            297,383
                                                                  -----------------   ----------------

                      Balance, December 31, 2001                        14,879,053          2,018,353
                      Acquisition                                        1,281,469                 --
                      Depreciation expense                                      --            294,140
                                                                  -----------------   ----------------

                      Balance, December 31, 2002                        16,160,522          2,312,493
                      Depreciation expense                                      --            303,059
                                                                  -----------------   ----------------

                      Balance, December 31, 2003                     $  16,160,522       $  2,615,552
                                                                  =================   ================
</TABLE>


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

(c)      As of December 31, 2003, the aggregate cost of the Partnership's wholly
         owned  Properties  and the  Property  owned by the  consolidated  joint
         venture was  $27,602,038  for federal  income tax purposes.  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)      Effective  January 1, 1994,  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 and
         depreciated  over its  remaining  estimated  life of  approximately  28
         years.



<PAGE>


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

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

                                December 31, 2003


(h)      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 and
         depreciated  over its  remaining  estimated  life of  approximately  23
         years.

(i)      The undepreciated  cost of the Property in North Richland Hills,  Texas
         was reduced to its estimated  fair value due to an impairment in value.
         The Partnership  recognized the impairment by recording a provision for
         write-down of assets in the amount of $15,433 at December 31, 2001. The
         impairment at December 31, 2001 represented the difference  between the
         Property's carrying value and the estimated fair value of the Property.
         The cost of the Property  presented on this  schedule is the net amount
         at which the Property was carried at December 31, 2003,  including  the
         provision for write-down of assets.





<PAGE>



                                  EXHIBIT INDEX


Exhibit Number

         (a)        Exhibits

                      3.1      Affidavit and Certificate of Limited  Partnership
                               of CNL Income Fund X, Ltd.  (Included  as Exhibit
                               3.2 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 X, Ltd.  (Included  as Exhibit
                               3.2 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 X, Ltd.  (Included
                               as Exhibit 3.3 to Post-Effective  Amendment No. 4
                               to  Registration  Statement No.  33-35049 on Form
                               S-11 and incorporated herein by reference.)

                      10.1     Management  Agreement  between CNL Income Fund X,
                               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 and Exchange  Commission on August 13,
                               2001, and incorporated herein by reference.)

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

                      31.1     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. (Filed herewith.)

                      31.2     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. (Filed herewith.)

                      32.1     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.)

                      32.2     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 31.1


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                                  EXHIBIT 31.2


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                                  EXHIBIT 32.1


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                                  EXHIBIT 32.2