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, 2001

                                       OR

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

                        For the transition period from to


                         Commission file number 0-20017

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

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

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

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

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

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

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

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

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the preceding 12 months (or such shorter  period that the registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days: Yes X No

         Indicate by check mark if disclosure of delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. [x]

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

                      DOCUMENTS INCORPORATED BY REFERENCE:
                                      None


<PAGE>

                                     PART I


Item 1.  Business

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

         The  Partnership  was organized to acquire both newly  constructed  and
existing  restaurant  properties,  as well as properties upon which  restaurants
were to be  constructed  (the  "Properties"),  which  are  leased  primarily  to
operators of national and regional fast-food and family-style  restaurant chains
(the "Restaurant Chains").  Net proceeds to the Partnership from its offering of
Units,  after  deduction  of  organizational  and  offering  expenses,   totaled
$30,800,000,  and were used to acquire 41  Properties,  including 13  Properties
owned by joint  ventures  in which  the  Partnership  is a  co-venturer,  and to
establish a working capital reserve for Partnership purposes.

         During the year ended  December  31,  1997,  the  Partnership  sold its
Property in  Alpharetta,  Georgia,  and  reinvested the net sales proceeds in an
IHOP Property located in Englewood,  Colorado,  with an affiliate of the General
Partners,  as  tenants-in-common.  During the year ended  December 31, 1999, the
Partnership  sold its  Properties  in  Rochester,  New York and Corpus  Christi,
Texas, and used a portion of the net sales proceeds to reinvest in a Property in
Albany,  Georgia. In addition,  the Partnership  reinvested a portion of the net
sales proceeds in a Property in Dublin, California and a Property in Montgomery,
Alabama,  each as  tenants-in-common,  with affiliates of the General  Partners.
During the year ended December 31, 2000, the Partnership  sold its Properties in
Williamsville,  New York and in Bluffton and Alliance,  Ohio, and used a portion
of these net sales proceeds to invest in a Property in  Libertyville,  Colorado,
with an affiliate of the General Partners, as tenants-in-common. During the year
ended  December  31,  2001,  the  Partnership  sold its  Properties  in Bedford,
Indiana, Copley Township, Ohio and the Property in Dublin, California, which was
held  with an  affiliate  of the  General  Partners  as  tenants-in-common,  and
reinvested  the  majority  of these  sales  proceeds  in a  Property  in Blaine,
Minnesota and in a Property in Waldorf,  Maryland with affiliates of the General
Partners  as  tenants-in-common.  As a result of the above  transactions,  as of
December  31, 2001,  the  Partnership  owned 38  Properties.  The 38  Properties
include 13  Properties  owned by joint  ventures in which the  Partnership  is a
co-venturer and four Properties owned with affiliates as tenants-in-common.  The
Partnership  leases the  Properties  generally  on a  triple-net  basis with the
lessees responsible for all repairs and maintenance,  property taxes,  insurance
and utilities.

         The  Partnership  will hold 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 will consider factors such as potential capital
appreciation,  net cash flow and  federal  income  tax  considerations.  Certain
lessees also have been granted options to purchase Properties,  generally at the
Property's  then fair market  value after a specified  portion of the lease term
has elapsed.  The  Partnership has no obligation to sell all or any portion of a
Property  at any  particular  time,  except as may be  required  under  property
purchase options granted to certain lessees.

         On March 11, 1999, the  Partnership  entered into an Agreement and Plan
of Merger with CNL American Properties Fund, Inc. ("APF"), pursuant to which the
Partnership  would be merged with and into a subsidiary  of APF (the  "Merger").
APF is a real estate investment trust whose primary business is the ownership of
restaurant properties leased on a long-term,  "triple-net" basis to operators of
national and regional restaurant chains. Under the Agreement and Plan of Merger,
APF was to issue shares of its common stock as consideration  for the Merger. On
March 1, 2000,  the General  Partners and APF  announced  that they had mutually
agreed to terminate the Agreement and Plan of Merger. The agreement to terminate
the  Agreement  and Plan of Merger  was based,  in large  part,  on the  General
Partners'  concern  that,  in light of market  conditions  relating  to publicly
traded  real  estate  investment  trusts,  the  value  of  the  transaction  had
diminished. As a result of such diminishment,  the General Partners', ability to
unequivocally  recommend  voting for the  transaction,  in the exercise of their
fiduciary duties, had become questionable.

Leases

         Although there are variations in the specific terms of the leases,  the
following  is  a  summarized   description  of  the  general  structure  of  the
Partnership's leases. The leases of the Properties owned by the Partnership, the
joint  ventures in which the  Partnership  is a co-venturer  and the  Properties
owned with affiliates of the General  Partners as  tenants-in-common,  generally
provide for initial  terms  ranging  from 14 to 20 years (the  average  being 16
years),  and  expire  between  2005 and 2021.  The  leases  are  generally  on a
triple-net basis, with the lessees  responsible for all repairs and maintenance,
property taxes,  insurance and utilities.  The leases of the Properties  provide
for  minimum  base annual  rental  payments  (payable  in monthly  installments)
ranging from  approximately  $62,500 to $246,400.  In  addition,  generally  the
leases  provide  for  percentage  rent,  based on sales in excess of a specified
amount.  In  addition,  a majority of the leases  provide  that,  commencing  in
specified  lease years  (ranging  from the third to the sixth lease  year),  the
annual base rent required under the terms of the lease will increase.

         Generally,  the  leases  of the  Properties  provide  for  two to  four
five-year  renewal  options  subject  to the same  terms and  conditions  as the
initial lease.  Lessees of 24 of the  Partnership's 38 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 also  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.

         In July 2001, the Partnership  reinvested the majority of the net sales
proceeds  from the sale of the  Property in Dublin,  California,  which was held
with an affiliate of the General Partners as tenants-in-common,  in a Bennigan's
Property in  Waldorf,  Maryland,  with  affiliates  of the  General  Partners as
tenants-in-common,  as described  below in "Joint  Venture and Tenancy in Common
Arrangements".  The lease terms for this Property are  substantially the same as
the  Partnership's  other leases,  as described above. In addition,  in December
2001, the Partnership reinvested the majority of the net sales proceeds from the
sale of the  Properties  in Bedford,  Illinois  and Copley  Township,  Ohio in a
Baker's Square Property in Blaine,  Minnesota. The lease terms for this Property
are  substantially  the same as the  Partnership's  other  leases,  as described
above.

         In July 2001, the tenant of the Property in Wildwood,  Florida  vacated
the  Property  and  ceased  restaurant  operations.  The  Partnership  will  not
recognize  rental and earned income from the vacant  Property until a new tenant
for the Property is located or until the Property is sold and the proceeds  from
such sale are reinvested in an additional Property.  The lost revenues resulting
from this  vacant  Property  could  have an  adverse  effect on the  results  of
operations of the  Partnership,  if the  Partnership is not able to re-lease the
Property in a timely manner. The General Partners are currently seeking either a
new tenant or a purchaser for the vacant Property.

         In October 2001,  Phoenix  Restaurant  Group, Inc. and its Subsidiaries
(collectively  referred  to as "PRG"),  a tenant of the  Partnership,  filed for
Chapter 11 bankruptcy protection and rejected the lease relating to the Property
in Grand Prairie,  Texas.  The Partnership  will not recognize rental and earned
income from the vacant  Property  until a new tenant for the Property is located
or until the Property is sold and the proceeds from such sale are  reinvested in
an additional  Property.  The lost revenues  resulting from this vacant Property
could have an adverse effect on the results of operations of the Partnership, if
the  Partnership  is not able to re-lease the Property in a timely  manner.  The
General  Partners are currently  seeking  either a new tenant or a purchaser for
the vacant Property.



<PAGE>


Major Tenants

         During 2001, four of the Partnership's  lessees (or group of affiliated
lessees), (i) Carrols Corporation, (ii) Flagstar Enterprises, Inc., (iii) Burger
King Corporation and BK Acquisition,  Inc. (which are affiliated  entities under
common control)  (hereinafter  referred to as Burger King Corp.) and (iv) Golden
Corral Corporation,  each contributed more than ten percent of the Partnership's
total rental,  earned and mortgage  interest income (including the Partnership's
share of rental and earned income from joint  ventures and  Properties  owned as
tenants-in-common).  As of December 31, 2001, Carrols Corporation was the lessee
under leases relating to four restaurants,  Flagstar  Enterprises,  Inc. was the
lessee  under leases  relating to five  restaurants,  Burger King Corp.  was the
lessee under leases relating to the 13 restaurants and Golden Corral Corporation
was the lessee under leases  relating to three  restaurants.  It is  anticipated
that,  based on the minimum rental payments  required by the leases,  these four
lessees or groups of affiliated  lessees each will  continue to contribute  more
than ten percent of the Partnership's  total rental income in 2002. In addition,
four Restaurant Chains, Burger King, Hardee's, Shoney's and Golden Corral Family
Steakhouse  Restaurants  ("Golden  Corral"),  each  accounted  for more than ten
percent of the Partnership's  total rental,  earned income and mortgage interest
during 2001 (including the  Partnership's  share of the rental income from joint
ventures and Properties owned as tenants-in-common).  In 2002, it is anticipated
that these four  Restaurant  Chains each will  continue to account for more than
ten  percent of the total  rental  income to which the  Partnership  is entitled
under the terms of its leases. Any failure of these lessees or Restaurant Chains
could materially affect the Partnership's  income if the Partnership is not able
to re-lease the  Properties  in a timely  manner.  No single  tenant or group of
affiliated  tenants lease Properties with an aggregate  carrying value in excess
of 20% of the total assets of the Partnership.

Joint Venture and Tenancy in Common Arrangements

         The Partnership  has entered into the following  separate joint venture
arrangements:  CNL Restaurant  Investments II with CNL Income Fund VII, Ltd. and
CNL Income Fund VIII, Ltd., to purchase and hold six Properties;  CNL Restaurant
Investments  III  with  CNL  Income  Fund X,  Ltd.,  to  purchase  and  hold six
Properties;  and Ashland  Joint  Venture  with CNL Income  Fund X, Ltd.  and CNL
Income Fund XI, Ltd., to purchase and hold one Property. Each CNL Income Fund is
an affiliate  of the General  Partners  and is a limited  partnership  organized
pursuant to the laws of the State of Florida.

         The joint  venture  arrangements  provide for the  Partnership  and its
joint venture  partners to share in all costs and benefits  associated  with the
joint ventures in accordance with their respective  percentage  interests in the
joint  ventures.  The  Partnership  has  a  45.2%  interest  in  CNL  Restaurant
Investments  II, a 50% interest in CNL Restaurant  Investments  III and a 27.33%
interest  in  Ashland  Joint  Venture.  The  Partnership  and its joint  venture
partners are also jointly and severally  liable for all debts,  obligations  and
other liabilities of the joint ventures.

         CNL Restaurant  Investments II's and CNL Restaurant  Investments  III's
joint venture  agreements do not provide a fixed term, but continue in existence
until  terminated  by any of the joint  venturers.  Ashland Joint Venture has an
initial  term of 14  years  and,  after  the  expiration  of the  initial  term,
continues in existence from year to year unless  terminated at the option of any
of the joint  venturers  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 partners to dissolve the joint venture.

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

         Net cash flow from  operations of CNL  Restaurant  Investments  II, CNL
Restaurant  Investments III and Ashland Joint Venture is distributed  45.2%, 50%
and 27.33%,  respectively,  to the Partnership and the balance is distributed to
each of the other joint  venture  partners in accordance  with their  respective
percentage interest in 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.

         In addition to the above joint venture  arrangements,  the  Partnership
entered  into an  agreement  to  hold a  Property  in  Englewood,  Colorado,  as
tenants-in-common  with CNL  Income  Fund  III,  Ltd.;  a  Property  in  Dublin,
California,  as tenants-in-common,  with CNL Income Fund VI, Ltd.; a Property in
Montgomery,  Alabama,  as  tenants-in-common,  with CNL Income Fund VII, Ltd.; a
Property in Libertyville,  Illinois,  as tenants-in-common  with CNL Income Fund
VIII,  Ltd.  In June 2001,  the  Partnership  and CNL Income Fund VI,  Ltd.,  as
tenants-in-common,  sold the  Property in Dublin,  California.  The  Partnership
owned a 25% interest in the profits and losses of this Property. Each CNL Income
Fund is an  affiliate  of the  General  Partners  and is a  limited  partnership
organized  pursuant to the laws of the state of Florida.  The agreements provide
for the Partnership and the affiliates to share in the profits and losses of the
Properties in proportion to each party's  percentage  interest.  The Partnership
owns a 67%,  29% and 34%  interest in the  Properties  in  Englewood,  Colorado,
Montgomery,  Alabama, and Libertyville,  Illinois,  respectively. The tenancy in
common agreements restrict each co-tenant's ability to sell, transfer, or assign
its interest in the tenancy in common's Properties without first offering it for
sale to the remaining co-tenants.

         In addition, in July 2001, the Partnership entered into an agreement to
hold a Bennigan's Property in Waldorf, Maryland, as tenants-in-common,  with CNL
Income Fund VI, Ltd. and CNL Income Fund XVII,  Ltd., each of which is a Florida
limited  partnership  and an affiliate of the General  Partners.  The  agreement
provides  for the  Partnership  and the  affiliates  to share in the profits and
losses of the Property and net cash flow from the  Property,  in  proportion  to
each co-venturer's  percentage interest.  The Partnership owns a 15% interest in
this  Property.  The  tenancy in common  agreement  restricts  each  co-tenant's
ability to sell,  transfer,  or assign its  interest  in the tenancy in common's
Property without first offering it for sale to the remaining co-tenants.

         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

         CNL APF Partners,  LP, an affiliate of the General  Partners,  provides
certain  services  relating to management of the  Partnership and its Properties
pursuant to a management agreement.  Under this agreement,  CNL APF Partners, LP
(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").

         During 2000,  CNL Fund Advisors,  Inc.  assigned its rights in, and its
obligations  under,  the management  agreement  with the  Partnership to CNL APF
Partners,  LP.  All of the terms and  conditions  of the  management  agreement,
including the payment of fees, as described above, remain unchanged.

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

Competition

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

Employees

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


Item 2.  Properties

         As of December 31, 2001, the Partnership owned 38 Properties. Of the 38
Properties,  21 are owned by the Partnership in fee simple, 13 are owned through
joint  venture  arrangements  and four are owned  through  a  tenancy  in common
arrangement.  See  Item 1.  Business  - Joint  Venture  and  Tenancy  in  Common
Arrangements.  The Partnership is not permitted to encumber its Properties under
the terms of its  partnership  agreement.  Reference  is made to the Schedule of
Real Estate and  Accumulated  Depreciation  for a listing of the  Properties and
their  respective  costs,  including  acquisition  fees and certain  acquisition
expenses.

Description of Properties

         Land. The Partnership's  Property sites range from approximately 21,400
to 169,800  square  feet  depending  upon  building  size and local  demographic
factors.  Sites  purchased  by  the  Partnership  are  in  locations  zoned  for
commercial use which have been reviewed for traffic patterns and volume.

         The following table lists the Properties owned by the Partnership as of
December 31, 2001 by state. More detailed information  regarding the location of
the  Properties  is  contained  in the  Schedule of Real Estate and  Accumulated
Depreciation for the year ended December 31, 2001.

               State                                Number of Properties

                Alabama                                           4
                Colorado                                          1
                Florida                                           1
                Georgia                                           2
                Illinois                                          2
                Indiana                                           1
                Louisiana                                         3
                Maryland                                          1
                Michigan                                          1
                Minnesota                                         2
                Mississippi                                       1
                New Hampshire                                     3
                New York                                          1
                North Carolina                                    3
                Ohio                                              4
                South Carolina                                    1
                Tennessee                                         2
                Texas                                             5
                                                               -----
                TOTAL PROPERTIES                                 38
                                                               =====

         Buildings.  Each of the Properties owned by the Partnership  includes a
building that is one of a Restaurant  Chain's  approved  designs.  The buildings
generally are  rectangular  and are  constructed  from various  combinations  of
stucco,  steel,  wood, brick and tile.  Building sizes range from  approximately
2,100 to 10,600 square feet.  All buildings on Properties are  freestanding  and
surrounded by paved  parking  areas.  Buildings  are suitable for  conversion to
various uses, although modifications may be required prior to use for other than
restaurant operations. As of December 31, 2001, 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, 2001, the aggregate cost of the Properties  owned by
the Partnership and joint ventures  (including  Properties owned through tenancy
in common  arrangements)  for federal  income tax purposes was  $19,589,253  and
$20,400,246, respectively.

         The following table lists the Properties owned by the Partnership as of
December 31, 2001 by Restaurant Chain.

               Restaurant Chain                      Number of Properties(1)

                Baker's Square                                       2
                Bennigan's                                           1
                Burger King                                         18
                Captain D's                                          1
                Denny's                                              2
                Golden Corral                                        3
                Hardee's                                             6
                IHOP                                                 2
                Johnnies                                             1
                Shoney's                                             3
                                                                  -----
                TOTAL PROPERTIES                                    39
                                                                  =====

(1)      One of the Properties  owned by the Partnership has a Captain D's and a
         Shoney's as one building.

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

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

         Leases.  The Partnership leases the Properties to operators of selected
national and regional fast-food restaurant chains. The leases are generally on a
long-term  "triple  net"  basis,  meaning  that the  tenant is  responsible  for
repairs,  maintenance,  property taxes,  utilities and insurance.  Generally,  a
lessee is required, under the terms of its lease agreement, to make such capital
expenditures as may be reasonably  necessary to refurbish  buildings,  premises,
signs  and  equipment  so  as  to  comply  with  the  lessee's  obligations,  if
applicable,  under the  franchise  agreement  to reflect the current  commercial
image of its Restaurant  Chain.  These capital  expenditures  are required to be
paid by the lessee during the term of the lease.  The terms of the leases of the
Properties owned by the Partnership are described in Item 1. Business - Leases.

         As of December 31, 2001,  2000,  1999,  1998,  and 1997, the Properties
were 95%, 100%, 98%, 98%, and 100%, occupied,  respectively.  The following is a
schedule of the average rent per Property for the years ended December 31:
<TABLE>
<CAPTION>

                                    2001              2000              1999               1998               1997
                                -------------     -------------    ---------------     --------------     --------------

 <c>
Rental Revenues (1)(2)           $ 2,805,847       $ 3,104,235        $ 3,168,448        $ 3,473,845         $3,350,655
Properties (2)                            37                40                 42                 41                 40
Average Rent per
    Property                       $  75,834         $  77,606          $  75,439          $  84,728          $  83,766
</TABLE>

(1)      Rental income  includes the  Partnership's  share of rental income from
         the  Properties  owned  through  joint  venture  arrangements  and  the
         Properties  owned  through  tenancy  in  common  arrangements.   Rental
         revenues have been adjusted,  as applicable,  for any amounts for which
         the Partnership has established an allowance for doubtful accounts.

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

         The following is a schedule of lease expirations for leases in place as
of December 31, 2001 for the next ten years and thereafter.
<TABLE>
<CAPTION>

                                                                                     Percentage of
             Expiration Year          Number             Annual Rental               Gross Annual
                                    of Leases              Revenues(1)               Rental Income
             -----------------    ----------------    ---------------------    --------------------------

 <c>
              2002                             --                   $   --                      --
              2003                             --                       --                      --
              2004                             --                       --                      --
              2005                              8                  599,850                  20.57%
              2006                             11                  742,948                  25.47%
              2007                             --                       --                      --
              2008                             --                       --                      --
              2009                             --                       --                      --
              2010                             --                       --                      --
              2011                             12                  969,913                  33.26%
              Thereafter                        6                  603,757                  20.70%
                                        ----------            -------------           -------------
              Total                            37              $ 2,916,468                 100.00%
                                        ==========            =============           =============
</TABLE>

         (1)  Excludes one Property which was vacant as of December 31, 2001.

         Leases  with Major  Tenants.  The terms of each of the leases  with the
Partnership's  major  tenants as of December  31,  2001 (see Item 1.  Business -
Major Tenants) are substantially the same as those described in Item 1. Business
- Leases.

         Carrols  Corporation  leases four Burger King restaurants.  The initial
term of each lease ranges from 14 to 20 years (expiring in 2011) and the average
minimum base annual rent is approximately  $85,600  (ranging from  approximately
$82,400 to $92,500).

         Flagstar  Enterprises,  Inc.  leases  five  Hardee's  restaurants.  The
initial  term of each  lease is 20 years  (expiring  in  2011)  and the  average
minimum base annual rent is approximately  $75,900  (ranging from  approximately
$52,800 to $96,000).

         Burger  King Corp.  leases 13 Burger King  restaurants  with an initial
term of 14 years  (expiring  between 2005 and 2006) and the average minimum base
annual rent is approximately  $103,700  (ranging from  approximately  $73,800 to
$134,100).

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

Item 3.  Legal Proceedings

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


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

         Not applicable.


                                     PART II


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

         (a) As of March 15,  2001  there  were  3,408  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  2001,
Limited  Partners  who wished to sell their Units may have offered the Units for
sale pursuant to the Partnership's  distribution reinvestment plan (the "Plan"),
and  Limited  Partners  who wished to have their  distributions  used to acquire
additional  Units (to the extent Units were  available for  purchase),  may have
done so pursuant to such Plan.  The General  Partners have the right to prohibit
transfers of Units.  From inception through December 31, 2001, 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 2001 and 2000 other than
pursuant to the Plan, net of commissions.
<TABLE>
<CAPTION>

                                               2001 (1)                                2000 (1)
                                  -----------------------------------     ------------------------------------
                                    High          Low        Average       High          Low         Average
                                  ---------     --------    ----------    --------     ---------    ----------

 <c>
          First Quarter              $ 8.06       $ 6.36       $  7.22        (2)           (2)            (2)
          Second Quarter               7.23         6.62          6.86      $ 8.80        $ 7.00       $  7.19
          Third Quarter                7.29         6.00          6.70        9.50          6.90          7.98
          Fourth Quarter               6.14         6.14          6.14        7.40          5.80          7.11
</TABLE>

(1)      A total of 12,230 and 19,820 Units were transferred other than pursuant
         to  the  Plan  for  the  years  ended   December  31,  2001  and  2000,
         respectively.

(2)      No transfer of Units took place during the quarter  other than pursuant
         to the plan.

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

         For each of the years ended December 31, 2001 and 2000, the Partnership
declared  cash  distributions  in the  aggregate  amounts of  $3,150,004  to the
Limited  Partners.  Distributions of $787,501 were declared at the close of each
of the  Partnership's  calendar  quarters  during  2001 and 2000 to the  Limited
Partners.  No amounts  distributed  to the Limited  Partners for the years ended
December  31,  2001 and 2000,  are  required  to be or have been  treated by the
Partnership  as a return of capital  for  purposes  of  calculating  the Limited
Partners' return on their adjusted capital contributions.  No distributions have
been  made to the  General  Partners  to date.  These  amounts  include  monthly
distributions  made in arrears for the Limited Partners electing to receive such
distributions on this basis.

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

(b)      Not applicable.



Item 6.  Selected Financial Data
<TABLE>
<CAPTION>

                                         2001               2000              1999               1998               1997
                                     --------------    ---------------    --------------    ---------------    ---------------

 <c>
  Year ended December 31:
  Revenues (1)                          $2,915,398         $3,174,257        $3,082,697         $3,368,285         $3,230,343
     Net Income (2)                      1,991,906          1,850,780         2,385,067          2,286,698          2,937,632
     Cash distributions
       declared (3)                      3,150,004          3,150,004         3,150,004          3,220,004          3,150,004
     Net income per Unit (2)                  0.57               0.53              0.68               0.65               0.83
     Cash distributions
       declared per Unit (3)                  0.90               0.90              0.90               0.92               0.90

  At December 31:
  Total assets                         $26,859,177        $28,132,613       $29,443,276        $30,099,078        $31,096,421
  Partners' capital                     25,991,659         27,149,757        28,448,981         29,213,918         30,147,224
</TABLE>

(1)      Revenues include equity in earnings of joint ventures.

(2)      Net income for the years ended  December  31,  2001 and 1998,  includes
         $462,925  and  $582,375  from   provision  for  write-down  of  assets,
         respectively.  Net income for the years ended  December 31, 2001,  1999
         and 1997, includes $298,795, $75,997 and $199,643,  respectively,  from
         gains on sales of assets.  Net income for the year ended  December  31,
         2000 includes $730,668 from a loss on sale of assets.

(3)      Distributions  for the year ended  December 31, 1998 includes a special
         distribution  to the Limited  Partners of  $70,000,  which  represented
         cumulative excess operating reserves.


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

         The  Partnership  was organized on April 16, 1990, to acquire for cash,
either directly or through joint venture  arrangements,  both newly  constructed
and  existing  restaurant  Properties,  as well as land  upon  which  restaurant
Properties  were to be  constructed,  to be leased  primarily  to  operators  of
selected national and regional fast-food and family-style Restaurant Chains. The
leases are generally  triple-net  leases,  with the lessees  responsible for all
repairs and maintenance, property taxes, insurance and utilities. As of December
31, 2001, the  Partnership  owned 38 Properties,  either  directly or indirectly
through joint venture or tenancy in common arrangements.

Capital Resources

         The  Partnership's  primary  source  of  capital  for the  years  ended
December 31, 2001, 2000, and 1999, was cash from operations (which includes cash
received from tenants,  distributions from joint ventures and interest received,
less cash paid for expenses).  Cash from operations was $2,835,733,  $2,844,067,
and  $2,868,096,  for the  years  ended  December  31,  2001,  2000,  and  1999,
respectively. The decrease in cash from operations during 2001 and 2000, each as
compared to the previous  year,  was primarily a result of changes in income and
expenses  as  described  in  "Results  of  Operations"  below and changes in the
Partnership's working capital.

         Other  sources and uses of capital  included the  following  during the
years ended December 31, 2001, 2000, and 1999:

         In February 1999, the Partnership  sold its Property in Corpus Christi,
Texas,  and received net sales  proceeds of  $1,350,000,  resulting in a gain of
$56,369.  In March 1999, the Partnership  reinvested the net sales proceeds in a
Property  in  Albany,  Georgia,  at  an  approximate  cost  of  $1,641,200.  The
transaction,  relating to the sale of the Property in Corpus Christi, Texas, and
the  reinvestment of the net sales proceeds in the Property in Albany,  Georgia,
qualified as a like-kind exchange transaction for federal income tax purposes.

         In  addition,  in March  1999,  the  Partnership  sold its  Property in
Rochester, New York, and received net sales proceeds of $1,050,000, resulting in
a gain of $19,628.  In March 1999, the  Partnership  reinvested a portion of the
net sales  proceeds in a Property in Albany,  Georgia,  as described  above.  In
addition,  in November 1999, the Partnership  reinvested the remaining net sales
proceeds  in a  Property  in  Montgomery,  Alabama,  and a  Property  in Dublin,
California,  each as tenants-in-common  with affiliates of the General Partners.
In  connection  therewith,  the  Partnership  and the  affiliates  entered  into
agreements  whereby  each  party will  share in the  profits  and losses of each
Property in proportion to each party's percentage  interest.  As of December 31,
2001,  the  Partnership  owned a 29%  interest in the  Property  in  Montgomery,
Alabama, as tenants-in-common with CNL Income Fund VIII, Ltd., a Florida limited
partnership  and an  affiliate  of the  General  Partners.  In  June  2001,  the
Partnership  and CNL Income Fund VI, Ltd., an affiliate of the General  Partners
and a Florida limited partnership,  as  tenants-in-common,  sold the property in
Dublin,  California,  in which the Partnership owned a 25% interest, for a sales
price  of   approximately   $1,743,300   and  received  net  sales  proceeds  of
approximately  $1,699,600,  resulting in a gain,  to the  tenancy-in-common,  of
approximately  $158,100.  The Partnership received  approximately  $424,600 as a
liquidating  distribution  for its pro-rata share of the net sales proceeds.  In
July 2001, the Partnership  reinvested  these proceeds in a Property in Waldorf,
Louisiana,  as tenants-in-common,  with CNL Income Fund VI, Ltd., and CNL Income
Fund XVII,  Ltd.,  each of which is an affiliate  of the General  Partners and a
Florida limited partnership.  The Partnership contributed approximately $342,000
for a 15% interest in the profits and losses of the Property.  The  transaction,
relating to the sale of the Property in Dublin,  California and the reinvestment
of the net sales  proceeds in the Property in Waldorf,  Maryland  qualified as a
like-kind exchange transaction for federal income tax purposes.

         In May 2000, the Partnership  sold its Property in  Williamsville,  New
York, to a third party for $715,000 and received net sales proceeds of $693,350,
resulting in a loss of $27,391.  In August 2000,  the  Partnership  reinvested a
portion of the net sales proceeds in a Property in Libertyville,  Illinois, with
CNL Income Fund VIII,  Ltd., a Florida  limited  partnership and an affiliate of
the  General  Partners,  as  tenants-in-common.  In  connection  therewith,  the
Partnership and the affiliate entered into an agreement whereby each co-venturer
will  share in the  profits  and losses of the  Property  in  proportion  to its
applicable  percentage interest.  The Property was acquired from an affiliate of
the General Partners.  The affiliate had purchased and temporarily held title to
the  Property in order to  facilitate  the  acquisition  of the  Property by the
Partnership.  The purchase price paid by the  Partnership  represented the costs
incurred by the affiliate to acquire the Property,  including  closing costs. As
of December 31, 2000, the Partnership owned a 34% interest in the Property.

         In addition,  in November 2000, the Partnership  sold its Properties in
Bluffton and  Alliance,  Ohio,  for a total of $500,000,  resulting in a loss of
$703,277. In connection therewith, the Partnership accepted two promissory notes
in the  aggregate  amount  of  $500,000,  collateralized  by a  mortgage  on the
respective Property.  The promissory notes bear an interest rate of nine percent
per annum and are being  collected in 96 monthly  installments  of principal and
interest, with balloon payments of $184,652 and $123,102,  respectively,  due in
December 2008. The mortgage note receivable balance relating to these Properties
at December 31, 2001 and 2000 was $482,406 and $503,838, respectively, including
accrued interest of $3,711 and $3,838, respectively.

         In  addition,  in July  2001,  the  Partnership  sold its  Property  in
Bedford,  Indiana to an  unrelated  third party for  approximately  $904,800 and
received net sales  proceeds of  approximately  $900,100  resulting in a gain of
approximately  $12,100.  In December the Partnership  reinvested these net sales
proceeds  in  a  Property  in  Blaine,  Minnesota  at  an  approximate  cost  of
$1,357,600. The Property was acquired from an affiliate of the General Partners.
The affiliate had purchased and temporarily  held title to the Property in order
to facilitate the acquisition of the Property by the  Partnership.  The purchase
price paid by the partnership represented the costs incurred by the affiliate to
acquire the Property, including closing costs. The transaction,  relating to the
sale of the Property in Bedford,  Indiana and the  reinvestment of the net sales
proceeds in the Property in Blaine,  Minnesota qualified as a like-kind exchange
transaction for federal income tax purposes.

         In addition,  in November  2001, the  Partnership  sold its Property in
Copley Township,  Ohio to an unrelated third party for approximately  $1,250,000
and received net sales proceeds of approximately $1,086,100, resulting in a gain
of  approximately  $286,700.  In December  2001,  the  Partnership  reinvested a
portion of these net sales  proceeds  in a Property  in  Blaine,  Minnesota,  as
described above. The Partnership  distributed  amounts  sufficient to enable the
Limited  Partners  to pay  federal and state  income  taxes,  if any (at a level
reasonably assumed by the General Partners), resulting from the sale.

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

         In October  2001,  the  Partnership  entered into an agreement  with an
unrelated  third  party to sell  the  Hardee's  Property  in  Greenville,  South
Carolina.  As of March  15,  2002 the sale had not  occurred.  In  addition,  in
November 2001, the Partnership entered into an agreement with an unrelated third
party to sell the Shoney's Property in Huntsville, Alabama. As of March 15, 2002
the sale had not occurred.

         Currently,  rental income from the Partnership's Properties is invested
in money market accounts or other short-term  highly liquid  investments such as
demand  deposit  accounts  at  commercial  banks,   money  market  accounts  and
certificates  of deposit  with less than a 90-day  maturity  date,  pending  the
Partnership's  use  of  such  funds  to  pay  Partnership  expenses  or to  make
distributions  to the  partners.  At December  31,  2001,  the  Partnership  had
$1,247,551  invested in such  short-term  investments as compared to $829,338 at
December 31, 2000.  The  increase in cash and cash  equivalents  at December 31,
2001, as compared to December 31, 2000, was primarily due to the fact that as of
December 31, 2001, the  Partnership had not reinvested all of the sales proceeds
it received from the sale of the Property in Copley Township, Ohio, as described
above.  As of December 31, 2001, the average  interest rate earned on the rental
income   deposited  in  demand   deposit   accounts  at  commercial   banks  was
approximately 2.9% annually.  The funds remaining at December 31, 2001 after the
payment  of  distributions  and  other  liabilities  will be  used  to meet  the
Partnership's working capital needs.

Short-Term Liquidity

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

         The Partnership's  investment strategy of acquiring Properties for cash
and  leasing  them under  triple-net  leases to  operators  who  generally  meet
specified financial  standards  minimizes the Partnership's  operating expenses.
The General Partners believe that the leases will continue to generate cash flow
in excess of operating expenses.

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

         The Partnership  generally  distributes cash from operations  remaining
after the  payment of the  operating  expenses,  to the extent  that the General
Partners  determine  that such funds are  available for  distribution.  Based on
current and anticipated  future cash from operations,  the Partnership  declared
distributions to the Limited Partners of $3,150,004, for each of the years ended
December 31, 2001, 2000, and 1999, respectively.  This represents a distribution
of $0.90 per Unit for each of the years ended December 31, 2001, 2000, and 1999,
respectively.  No  distributions  were made to the General  Partners  during the
years ended  December 31, 2001,  2000,  and 1999. No amounts  distributed to the
Limited  Partners  for the years ended  December 31, 2001,  2000,  or 1999,  are
required to be or have been  treated by the  Partnership  as a return of capital
for  purposes of  calculating  the Limited  Partners'  return on their  adjusted
capital contributions. The Partnership intends to continue to make distributions
of cash available for distribution to the Limited Partners on a quarterly basis.

         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

<PAGE>


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, 2001 and 2000.

         As of  December  31,  2001 and 2000,  the  Partnership  owed $5,878 and
$100,846,  respectively, to affiliates for operating expenses and accounting and
administrative  services.  As of March 15, 2002, the  Partnership had reimbursed
the  affiliates all such amounts.  Other  liabilities,  including  distributions
payable,  decreased to $861,640 at December 31, 2001, as compared to $882,010 at
December 31, 2000. The General  Partners  believe the Partnership has sufficient
cash on hand to meet current working capital needs.

Long-Term Liquidity

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

Critical Accounting Policies

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

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

         Management  reviews its  Properties and  investments in  unconsolidated
entities  periodically  (no less than once per  year)  for  impairment  whenever
events or changes in  circumstances  indicate  that the  carrying  amount of the
assets may not be recoverable through operations.  Management determines whether
impairment in value has occurred by comparing the estimated future  undiscounted
cash flows, including the residual value of the Property, with the carrying cost
of the  individual  Property.  If an  impairment  is  indicated,  the assets are
adjusted to their fair value.

Results of Operations

         During the year ended  December 31,  1999,  the  Partnership  owned and
leased 28 wholly  owned  Properties  (including  two  Properties  that were sold
during  1999).  During 2000,  the  Partnership  owned and leased 26 wholly owned
Properties (including three Properties that were sold during 2000). During 2001,
the  Partnership  owned and leased 23 wholly  owned  Properties  (including  two
Properties  that were sold during 2001).  In addition,  during 2001,  2000,  and
1999, the Partnership was a co-venturer in two separate joint ventures that each
owned and leased six  properties and one joint venture that owned and leased one
Property. The Partnership also owned and leased three Properties with affiliates
as   tenants-in-common   in   1999,   four   Properties   with   affiliates   as
tenants-in-common   in   2000   and   five   Properties   with   affiliates   as
tenants-in-common in 2001 (including one Property that was sold during 2001). As
of December 31, 2001, the  Partnership  owned,  either directly or through joint
venture and tenancy in common arrangements,  38 Properties,  which are generally
subject to long-term,  triple-net  leases.  The leases of the Properties provide
for minimum base annual rental amounts (payable in monthly installments) ranging
from  approximately  $62,500 to  $246,400.  Generally,  the leases  provide  for
percentage rent based on sales in excess of a specified amount.  In addition,  a
majority  of the leases  provide  that,  commencing  in  specified  lease  years
(ranging from the third to the sixth lease year),  the annual base rent required
under the terms of the lease  will  increase.  For  further  description  of the
Partnership's  leases and Properties,  see Item 1. Business - Leases and Item 2.
Properties, respectively.

         During  the  years  ended  December  31,  2001,  2000,  and  1999,  the
Partnership  earned $1,990,529,  $2,366,345,  and $2,335,381,  respectively,  in
rental  income from  operating  leases and earned  income from direct  financing
leases  related  to its  wholly  owned  Properties.  Rental  and  earned  income
decreased during the year ended December 31, 2001, as compared to the year ended
December  31, 2000,  partially  as a result of the fact that in April 2001,  the
tenant of the  Property in  Wildwood,  Florida,  vacated the Property and ceased
making rental  payments on this Property.  In July 2001, the Partnership and the
tenant  terminated  the  lease  relating  to this  Property.  As a  result,  the
Partnership stopped recording rental revenue. The Partnership will not recognize
any rental and earned income from this Property  until the Property is re-leased
or the  Property  is sold  and the  proceeds  are  reinvested  in an  additional
Property.  The General  Partners are currently  seeking a replacement  tenant or
purchaser  for  this  Property.  The lost  revenues  resulting  from the  vacant
Property  could  have an adverse  effect on the  results  of  operations  of the
Partnership,  if the Partnership is not able to re-lease or sell the Property in
a timely manner.

         In addition,  the decrease in rental and earned  income during 2001 was
partially due to the fact that in July and November 2001, the  Partnership  sold
its Properties in Bedford, Indiana and Copley Township,  Ohio, respectively,  as
described above in "Capital Resources." The decrease in rental and earned income
during  2001  was  partially  offset  by the fact  that in  December  2001,  the
Partnership  reinvested  a portion of these net sales  proceeds in a Property in
Blaine, Minnesota, as described above in "Capital Resources."

         In addition,  rental and earned income decreased during 2001 due to the
fact that PRG, the tenant of the Property in Grand Prairie,  Texas,  experienced
financial  difficulties.  In October 2001, PRG filed for bankruptcy and rejected
the lease  relating  to this  Property.  As a result,  the  Partnership  stopped
recording  rental revenue  relating to this Property.  The Partnership  will not
recognize any rental and earned income from this Property  until the Property is
re-leased  or the  Property  is  sold  and the  proceeds  are  reinvested  in an
additional  Property.  The General Partners are currently  seeking a replacement
tenant or purchaser  for this  Property.  The lost revenues  resulting  from the
vacant Property could have an adverse effect on the results of operations of the
Partnership,  if the Partnership is not able to re-lease or sell the Property in
a timely  manner.  The  increase in rental and earned  income  during  2000,  as
compared to 1999,  was  partially  offset by the fact that during 2000 and 1999,
the Partnership  established an allowance for doubtful accounts of approximately
$54,200 and $19,500, respectively,  relating to past due rental amounts for this
Property.

         Rental and earned income  increased  during 2000,  partially due to the
fact that during 2000, the Partnership collected and recognized, as income, past
due rental and other  amounts  relating to the two  Properties  in Bluffton  and
Alliance, Ohio for which the Partnership had previously established an allowance
for doubtful accounts. The increase during 2000 was partially offset by, and the
decrease  during 2001 was partially due to the fact that in November  2000,  the
Partnership sold these two Properties,  as described in "Capital  Resources." In
1999  and  2000,  the  Partnership  sold its  Properties  in  Williamsville  and
Rochester,  New York and Corpus  Christi,  Texas,  each to a third party,  which
partially  offset the increase in rental and earned  income in 2000, as compared
to 1999.  The increase in rental and earned income during 2000 was partially due
to the fact that in March 1999,  the  Partnership  reinvested a portion of these
net sales proceeds in a Property in Albany, Georgia. In November 1999 and August
2000,  the  Partnership  invested  the  remaining  net  sales  proceeds  in  two
Properties and one Property,  respectively,  each with affiliates of the General
Partners, as tenants-in-common,  as described in "Capital Resources." Rental and
earned income are expected to remain at reduced amounts while equity in earnings
of joint  ventures is expected to increase due to the fact that the  Partnership
reinvested  these net sales  proceeds in a joint  venture and a Property with an
affiliate of the General Partners, as tenants-in-common.

         During  the  years  ended  December  31,  2001,  2000,  and  1999,  the
Partnership earned $19,780,  $75,992, and $59,287,  respectively,  in contingent
rental income. The decrease in contingent rental income during 2001, as compared
to 2000,  and the  increase  during  2000,  as compared to 1999,  was  primarily
attributable  to fluctuations  in gross sales of certain  restaurant  Properties
whose leases require the payment of contingent rental income.

         During  the  years  ended  December  31,  2001,  2000,  and  1999,  the
Partnership  also earned  $753,457,  $674,930,  and $606,337,  respectively,  in
income  attributable  to net  income  earned  by joint  ventures  in  which  the
Partnership  is a  co-venturer.  The  increase  in net  income  earned  by joint
ventures  during  2001 and 2000,  each as  compared to the  previous  year,  was
partially  due to the fact that in August  2000,  the  Partnership  acquired  an
interest in a Property in  Libertyville,  Illinois,  as  tenants-in-common  with
affiliates of the General Partners,  as described above in "Capital  Resources."
In addition, the increase in net income earned by joint ventures during 2001, as
compared  to  2000,  was  partially  due to the  fact  that  in June  2001,  the
Partnership  and CNL  Income  Fund  VI,  Ltd.,  as  tenants-in-common,  sold the
Property in Dublin,  California,  in which the Partnership owned a 25% interest.
The tenancy in common  recognized a gain of approximately  $158,100 during 2001,
as described above in "Capital Resources".  The increase in net income earned by
joint  ventures  during 2000, as compared to 1999, was primarily due to the fact
that in November  1999,  the  Partnership  reinvested a portion of the net sales
proceeds it received  from the sale of the Property in  Rochester,  New York, in
one Property in each of Dublin,  California,  and Montgomery,  Alabama,  each as
tenants-in-common with affiliates of the General Partners.

         During 2001, four of the Partnership's  lessees (or group of affiliated
lessees), (i) Carrols Corporation, (ii) Flagstar Enterprises, Inc., (iii) Burger
King Corporation and BK Acquisition,  Inc. (which are affiliated  entities under
common control)  (hereinafter  referred to as Burger King Corp.) and (iv) Golden
Corral Corporation,  each contributed more than ten percent of the Partnership's
total rental,  earned and mortgage  interest income (including the Partnership's
share of rental and earned income from joint  ventures and  Properties  owned as
tenants-in-common).  As of December 31, 2001, Carrols Corporation was the lessee
under leases relating to four restaurants,  Flagstar  Enterprises,  Inc. was the
lessee  under leases  relating to five  restaurants,  Burger King Corp.  was the
lessee under leases relating to the 13 restaurants and Golden Corral Corporation
was the lessee under leases  relating to three  restaurants.  It is  anticipated
that,  based on the minimum rental payments  required by the leases,  these four
lessees or groups of affiliated  lessees each will  continue to contribute  more
than ten percent of the Partnership's  total rental income in 2002. In addition,
four Restaurant Chains, Burger King, Hardee's, Shoney's and Golden Corral Family
Steakhouse  Restaurants  ("Golden  Corral"),  each  accounted  for more than ten
percent of the Partnership's  total rental,  earned income and mortgage interest
during 2001 (including the  Partnership's  share of the rental income from joint
ventures and Properties owned as tenants-in-common).  In 2002, it is anticipated
that these four  Restaurant  Chains each will  continue to account for more than
ten  percent of the total  rental  income to which the  Partnership  is entitled
under the terms of its leases. Any failure of these lessees or Restaurant Chains
could materially affect the Partnership's  income if the Partnership is not able
to re-lease the Properties in a timely manner.

         During  the  years  ended  December  31,  2001,   2000  and  1999,  the
Partnership earned $151,632, $56,990, and $81,692, respectively, in interest and
other income. The increase in interest and other income during 2001, as compared
to 2000,  was  partially  due to the fact  that  during  2001,  the  Partnership
collected and recognized as income approximately  $63,500 from the tenant of two
Properties  that were sold  during  2000 in  consideration  for the  Partnership
releasing  the tenant  from its  obligations  under the terms of its  lease.  In
addition,  the increase in interest and other income  during 2001 was  partially
due to the fact that the  Partnership  earned  interest from to the two mortgage
note  receivables  relating to the 2000 sales of the  Properties in Bluffton and
Alliance,  Ohio,  as  described  above in "Capital  Resources."  The decrease in
interest  and other  income  during  2000 as  compared  to 1999,  was  primarily
attributable  to the increase in interest  income related to the amount of funds
invested  in cash and cash  equivalents  due to the  disposition  of  Properties
pending   reinvestment   in  an  additional   Property  and  tenancy  in  common
arrangements.

         Operating expenses, including depreciation and amortization expense and
provision for write-down of assets, were $1,222,287, $592,809, and $773,627, for
the years ended December 31, 2001, 2000 and 1999, respectively.  The increase in
operating  expenses  during 2001, as compared to 2000,  was primarily due to the
fact that during 2001,  the  Partnership  recorded a provision for write-down of
assets in the amount of $400,800 relating to the Property in Wildwood,  Florida.
The tenant  vacated this Property and ceased payment of rents under the terms of
its lease  agreement.  In addition,  the  Partnership  recorded a provision  for
write-down of assets in the amount of $62,125  relating to the Property in Grand
Prairie,  Texas due to the fact that PRG, the tenant,  filed for  bankruptcy and
rejected  the  lease,  as  described  above.  Both  provisions  represented  the
difference  between the carrying  value of the Property at December 31, 2001 and
the General  Partners'  estimated net realizable  value for the  Properties.  In
addition, during 2001 and 2000 the Partnership incurred certain expenses such as
real estate taxes, insurance, repairs and maintenance and legal fees relating to
the Properties.  The General Partners are currently seeking a replacement tenant
or purchaser for these  Properties.  The Partnership will continue to incur such
expenses  relating  to these  Properties  until new  tenants or  purchasers  are
located.

         The increase in operating  expenses  during 2001 was also partially due
to the fact that the Partnership  incurred additional state taxes due to changes
in the tax  laws of a state in  which  the  Partnership  conducts  business.  In
addition,   the  increase  in  operating  expenses  during  2001  was  partially
attributable  to an increase in the costs incurred for  administrative  expenses
for  servicing  the  Partnership  and  its  Properties,   as  permitted  by  the
Partnership agreement.

         The increase in operating expenses during 2001 was partially offset by,
and the  decrease  during 2000 was  partially  due to the amount of  transaction
costs  the  Partnership  incurred  related  to the  General  Partners  retaining
financial and legal  advisors to assist them in evaluating and  negotiating  the
proposed and terminated  merger with APF, as described  below in "Termination of
Merger."

         The decrease in operating  expenses  during 2000,  as compared to 1999,
was also  partially  due to the  fact  that in 1999,  the  Partnership  incurred
certain expenses,  such as legal fees,  insurance and real estate tax expense in
connection with the tenant of the Properties in Williamsville and Rochester, New
York filing for bankruptcy,  rejecting the lease,  and ceasing rental  payments.
Between  March 1999 and May 2000,  the  Partnership  sold these two  Properties;
therefore,  the  Partnership  did not  incur  such  expenses  related  to  these
Properties in 2000.

         As a result of the sales of the  Properties  in  Bedford,  Indiana  and
Copley  Township,  Ohio during 2001, and the sales of the Properties in Bluffton
and Alliance,  Ohio and  Williamsville,  New York, during 2000, and the sales of
the Properties in Rochester, New York and Corpus Christi, Texas, during 1999, as
described above in "Capital  Resources,"  the  Partnership  recognized a gain of
$298,795,  a loss of  $730,668,  and a gain of $75,997  during  the years  ended
December 31, 2001, 2000, and 1999, respectively.

         The  restaurant  industry,  as a  whole,  has  been  one  of  the  many
industries  affected  by  the  general  slowdown  in  the  economy.   While  the
Partnership has experienced  some losses due to the financial  difficulties of a
limited number of restaurant operators, the General Partners remain confident in
the overall  performance  of the  fast-food  and family style  restaurants,  the
concepts that  comprise the  Partnership's  portfolio.  Industry data shows that
these  restaurant  concepts  continue to outperform  and remain more stable than
higher-end  restaurants,  which have been more adversely affected by the slowing
economy.

         The  Partnership's  leases as of December  31,  2001,  in general,  are
triple-net  leases and  contain  provisions  that the General  Partners  believe
mitigate  the adverse  effect of  inflation.  Such  provisions  include  clauses
requiring the payment of percentage rent based on certain restaurant sales above
a specified  level and/or  automatic  increases in base rent at specified  times
during the term of the lease.  Inflation,  overall,  has had a minimal effect on
the results of  operations  of the  Partnership.  Continued  inflation may cause
capital  appreciation of the  Partnership's  Properties.  Inflation and changing
prices, however, also may have an adverse impact on the sales of the restaurants
and on potential capital appreciation of the Properties.

         In December 1999, the Securities and Exchange  Commission  released SAB
101, which provides the staff's view in applying generally  accepted  accounting
principles  to  selected  revenue  recognition  issues.  SAB  101  requires  the
Partnership  to defer  recognition  of certain  percentage  rental  income until
certain defined  thresholds are met. The  Partnership  adopted SAB 101 beginning
January 1, 2000. Implementation of SAB 101 did not have a material impact on the
Partnership's results of operations.

         In July 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 141 "Business  Combinations" (FAS 141) and
Statement  of  Financial  Accounting  Standards  No.  142  "Goodwill  and  Other
Intangible  Assets" (FAS 142). The  Partnership has reviewed both statements and
has determined  that both FAS 141 and FAS 142 do not apply to the Partnership as
of December 31, 2001.

         In October  2001,  the  Financial  Accounting  Standards  Board  issued
Statement  of  Financial  Accounting  Standards  No.  144  "Accounting  for  the
Impairment or Disposal of Long-Lived  Assets" (FAS 144). 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 adoption of FAS 144 did not have any
effect on the  partnership's  recording of impairment  losses as this  Statement
retained  the  fundamental  provisions  of  FAS  No.  121  "Accounting  for  the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of."


Termination of Merger

         On March 11, 1999, the  Partnership  entered into an Agreement and Plan
of Merger with APF,  pursuant to which the Partnership  would be merged with and
into a subsidiary of APF.  Under the  Agreement  and Plan of Merger,  APF was to
issue shares of its common stock as  consideration  for the Merger.  On March 1,
2000, the General  Partners and APF announced  that they had mutually  agreed to
terminate  the  Agreement  and Plan of Merger.  The  agreement to terminate  the
Agreement and Plan of Merger was based, in large part, on the General  Partners'
concern that,  in light of market  conditions  relating to publicly  traded real
estate  investment  trusts,  the value of the transaction  had diminished.  As a
result of such  diminishment,  the General  Partners'  ability to  unequivocally
recommend voting for the transaction, in the exercise of their fiduciary duties,
had become questionable.


Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

         The Partnership  accepted two promissory  notes in conjunction with the
sale of two  Properties.  The General  Partners  believe that the estimated fair
value of the mortgage notes at December 31, 2001,  approximated  the outstanding
principal  amount.  The  Partnership  is exposed to equity  loss in the event of
changes in interest rates.  The following table presents the expected cash flows
of principal that are sensitive to these changes.

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

                      2002                                $  17,915
                      2003                                   19,620
                      2004                                   21,370
                      2005                                   23,521
                      2006                                   25,759
                      Thereafter                            370,510
                                                      ----------------

                                                          $ 478,695
                                                      ================


Item 8.  Financial Statements and Supplementary Data


<PAGE>



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

                                    CONTENTS






                                                                           Page

Report of Independent Certified Public Accountants                          18

Financial Statements:

     Balance Sheets                                                         19

     Statements of Income                                                   20

     Statements of Partners' Capital                                        21

     Statements of Cash Flows                                            22-23

     Notes to Financial Statements                                       24-40







<PAGE>








               Report of Independent Certified Public Accountants



To the Partners
CNL Income Fund IX, Ltd.


In our opinion,  the accompanying  balance sheets and the related  statements of
income,  of partners'  capital and of cash flows present fairly, in all material
respects,  the financial position of CNL Income Fund IX, Ltd. (a Florida limited
partnership)  at December 31, 2001 and 2000,  and the results of its  operations
and its cash flows for each of the three years in the period ended  December 31,
2001 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 14(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.



/s/ PricewaterhouseCoopers LLP


Orlando, Florida
February 8, 2002



<PAGE>



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

                                 BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                    December 31,
                                                                             2001                   2000
                                                                     ---------------------   --------------------

 <c>
                         ASSETS

Land and buildings on operating leases, net                                 $ 14,060,856           $ 13,663,075
Net investment in direct financing leases                                      2,807,303              4,047,190
Investment in joint ventures                                                   7,324,599              7,525,414
Mortgage notes receivable                                                        482,406                503,838
Cash and cash equivalents                                                      1,247,551                829,338
Receivables, less allowance for doubtful accounts of
     $15,296 and $82,596, respectively
                                                                                  32,171                311,662
Due from related parties                                                           4,872                  8,835
Accrued rental income                                                            888,899              1,210,844
Other assets                                                                      10,520                 32,417
                                                                     ---------------------   --------------------

                                                                            $ 26,859,177           $ 28,132,613
                                                                     =====================   ====================


            LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                                              $    7,190            $    33,029
Accrued and escrowed real estate taxes payable                                     7,853                  7,868
Distributions payable                                                            787,501                787,501
Due to related parties                                                             5,878                100,846
Rents paid in advance and deposits                                                59,096                 53,612
                                                                     ---------------------   ------------------------
         Total liabilities                                                       867,518                982,856

Commitments (Note 12)

Partners' capital                                                             25,991,659             27,149,757
                                                                     ---------------------   ------------------------

                                                                            $ 26,859,177           $ 28,132,613
                                                                     =====================   ========================
                See accomapnying notes to financial statements.

</TABLE>

<PAGE>


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

                              STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                                                Year ended December 31,
                                                                       2001              2000               1999
                                                                  ---------------   ----------------   ---------------

 <c>
Revenues:
   Rental income from operating leases                              $ 1,600,005        $ 1,859,266       $ 1,615,198
   Earned income from direct financing leases                           390,524            507,079           720,183
   Contingent rental income                                              19,780             75,992            59,287
   Interest and other income                                            151,632             56,990            81,692
                                                                  ---------------   ----------------   ---------------
                                                                      2,161,941          2,499,327         2,476,360
                                                                  ---------------   ----------------   ---------------
Expenses:
    General operating and administrative                                288,031            166,250           166,844
    Professional services                                                82,391             35,938            51,336
    Real estate taxes                                                    38,449             23,160            29,069
    State and other taxes                                                35,739             22,725            27,021
    Depreciation and amortization                                       314,752            312,196           318,248
    Provision for write-down of loss of assets                          462,925                 --                --
    Transaction costs                                                        --             32,540           181,109
                                                                  ---------------   ----------------   ---------------
                                                                      1,222,287            592,809           773,627
                                                                  ---------------   ----------------   ---------------

Income  Before  Gain  (Loss) on Sale of Assets  and Equity in
    Earnings of Joint Ventures                                          939,654          1,906,518         1,702,733

Gain (Loss) on Sale of Assets                                           298,795           (730,668 )          75,997

Equity in Earnings of Joint Ventures                                    753,457            674,930           606,337
                                                                  ---------------   ----------------   ---------------

Net Income                                                          $ 1,991,906        $ 1,850,780       $ 2,385,067
                                                                  ===============   ================   ===============

Allocation of Net Income:
    General partners                                                    $    --           $     --        $   23,654
    Limited partners                                                  1,991,906          1,850,780         2,361,413
                                                                  ---------------   ----------------   ---------------

                                                                    $ 1,991,906        $ 1,850,780       $ 2,385,067
                                                                  ===============   ================   ===============

Net Income Per Limited Partner Unit                                   $    0.57          $    0.53         $    0.68
                                                                  ===============   ================   ===============

Weighted Average Number of Limited Partner Units
    Outstanding                                                       3,500,000          3,500,000         3,500,000
                                                                  ===============   ================   ===============

</TABLE>

                See accompanying notes to financial statements.

<PAGE>

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

                         STATEMENTS OF PARTNERS' CAPITAL

                  Years Ended December 31, 2001, 2000 and 1999
<TABLE>
<CAPTION>


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

 <c>
Balance, December 31, 1998              $     1,000       $   213,763       $ 35,000,000      $ (23,060,591 )      $ 21,249,746

    Distributions to limited
       partners ($0.90 per limited
       partner unit)                             --                --                 --         (3,150,004 )                --
    Net income                                   --            23,654                 --                 --           2,361,413
                                    ----------------   ---------------   ----------------   ----------------    ----------------

Balance, December 31, 1999                    1,000           237,417         35,000,000        (26,210,595 )        23,611,159

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

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

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

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

                See accompanying notes to financial statements.
<PAGE>

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

 $ (4,190,000 )     $ 29,213,918



           --         (3,150,004 )
           --          2,385,067
--------------     --------------

   (4,190,000 )       28,448,981



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

   (4,190,000 )       27,149,757



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

 $ (4,190,000 )     $ 25,991,659
==============     ==============





                See accompanying notes to financial statements.

<page>




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

                            STATEMENTS OF CASH FLOWS


                                                                               Year Ended December 31,
                                                                       2001               2000              1999
                                                                  ---------------    ---------------    --------------

Increase (Decrease) in Cash and Cash Equivalents:

    Cash Flows from Operating Activities:
      Cash received from tenants                                     $ 2,428,747        $ 2,323,462       $ 2,388,494
      Distributions from joint ventures                                  880,582            804,363           738,371
      Cash paid for expenses                                            (553,726 )         (319,486 )        (325,027 )
      Interest received                                                   80,130             35,728            66,258
                                                                  ---------------    ---------------    --------------
         Net cash provided by operating activities                     2,835,733          2,844,067         2,868,096
                                                                  ---------------    ---------------    --------------

    Cash Flows from Investing Activities:
      Proceeds from sale of assets                                     1,986,253            693,350         2,400,000
      Additions to land and buildings                                 (1,357,599 )               --        (1,641,211 )
      Collections on mortgage notes receivable                            21,305                 --                --
      Investment in joint ventures                                      (342,075 )         (494,581 )        (827,754 )
      Liquidating distribution from joint venture                        424,600                 --                --
                                                                  ---------------    ---------------    --------------
         Net cash provided by (used in) investing
             activities                                                  732,484            198,769           (68,965 )
                                                                  ---------------    ---------------    --------------

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

Net Increase (Decrease) in Cash and Cash Equivalents                     418,213           (107,168 )        (350,873 )

Cash and Cash Equivalents at Beginning of Year                           829,338            936,506         1,287,379
                                                                  ---------------    ---------------    --------------

Cash and Cash Equivalents at End of Year                             $ 1,247,551         $  829,338        $  936,506
                                                                  ===============    ===============    ==============


                See accompanying notes to financial statements.
<PAGE>




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

                      STATEMENTS OF CASH FLOWS - CONTINUED


                                                                             Year Ended December 31:
                                                                      2001             2000            1999
                                                                   ------------    -------------    ------------
  Reconciliation of Net Income to Net Cash Provided by
      Operating Activities:

   Net income                                                      $ 1,991,906      $ 1,850,780     $ 2,385,067
                                                                   ------------    -------------    ------------
   Adjustments to reconcile net income to net cash provided
      by operating activities:
         Depreciation                                                  313,377          310,696         316,748
         Amortization                                                    1,375            1,500           1,500
         Equity in earnings of joint ventures, net of
            distributions                                              118,290          138,268         132,034
         Loss (gain) on sale of assets                                (298,795 )        730,668         (75,997 )
         Provision for write-down of assets                            462,925               --              --
         Increase in interest receivable                                   127           (3,838 )            --
         Decrease (increase) in due from related parties                 3,963           (8,835 )            --
         Increase in receivables                                       279,491         (205,220 )       (14,669 )
         Decrease in net investment in direct financing
            leases                                                      71,154           69,297          61,066
         Decrease (increase) in accrued rental income                   (4,216 )        (27,263 )       (28,526 )
         Decrease (increase) in other assets                            11,474             (547 )       (18,262 )
         Increase (decrease) in accounts payable and
            accrued and escrowed real estate taxes payable             (25,854 )        (74,358 )       105,130
         Increase in due to related parties                            (94,968 )         38,780          37,879
         Increase (decrease) in rents paid in advance and
            deposits                                                     5,484           24,139         (33,874 )
                                                                   ------------    -------------    ------------
                Total adjustments                                      843,827          993,287         483,029
                                                                   ------------    -------------    ------------

Net Cash Provided by Operating Activities                          $ 2,835,733      $ 2,844,067     $ 2,868,096
                                                                   ============    =============    ============

   Supplemental Schedule of Non-Cash Investing and
       Financing Activities:

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

   Distributions declared and unpaid at December 31                  $ 787,501        $ 787,501       $ 787,501
                                                                   ============    =============    ============

</TABLE>

                See accompanying notes to financial statements.
<PAGE>

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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2001, 2000, and 1999


1.       Significant Accounting Policies:
         -------------------------------

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

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

         Real  Estate  and  Lease  generally  -  The  Partnership   records  the
         acquisition of land and buildings at cost,  including  acquisition  and
         closing costs. Land and buildings 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. The leases are accounted for
         using  either the  direct  financing  or the  operating  methods.  Such
         methods are described below:

                  Direct financing method - The 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) (see Note 4). Unearned income is deferred
                  and amortized to income over the lease terms so as to produce
                  a constant periodic rate of return on the Partnership's
                  investment in the leases.

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


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


1.       Significant Accounting Policies - Continued:
         -------------------------------------------

                  Accrued rental income represents the aggregate amount of
                  income recognized on a straight-line basis in excess of
                  scheduled rental payments to date. Whenever a tenant defaults
                  under the terms of its lease, or events or changes in
                  circumstance indicate that the tenant will not lease the
                  property through the end of the lease term, the Partnership
                  either reserves or reverses the cumulative accrued rental
                  income balance.

         When  the  properties  are  sold,  the  related  cost  and  accumulated
         depreciation  for operating  leases and the net  investment  for direct
         financing leases,  plus any accrued rental income, are removed from the
         accounts and gains or losses from sales are  reflected  in income.  The
         general  partners of the Partnership  review  properties for impairment
         whenever events or changes in circumstances  indicate that the carrying
         amount of the assets may not be  recoverable  through  operations.  The
         general partners  determine whether an impairment in value has occurred
         by comparing the estimated future  undiscounted  cash flows,  including
         the  residual  value of the  property,  with the  carrying  cost of the
         individual  property.  If an impairment  is  indicated,  the assets are
         adjusted to the fair value.  Although  the general  partners  have made
         their best estimate of these factors based on current conditions, it is
         reasonably  possible  that  changes  could occur in the near term which
         could adversely affect the general partners' estimate of net cash flows
         expected to be  generated  from its  properties  and the need for asset
         impairment write-downs.

         When the  collection  of amounts  recorded as rental or other income is
         considered  to be  doubtful,  an  adjustment  is made to  increase  the
         allowance for doubtful accounts,  which is netted against  receivables,
         although  the  Partnership  continued  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's  investments in three
         joint  ventures  and  properties  in  Englewood,   Colorado;   Waldorf,
         Maryland; Montgomery, Alabama and Libertyville,  Illinois for which the
         properties are held as tenants-in-common with affiliates, are accounted
         for using the equity method since each joint venture agreement requires
         the  consent  of  all  partners  on all  key  decisions  affecting  the
         operations of the underlying property.


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


1.       Significant Accounting Policies - Continued:
         -------------------------------------------

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

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

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

         Additionally,  for tax  purposes,  syndication  costs are  included  in
         Partnership equity and in the basis of each partner's  investment.  For
         financial  reporting  purposes,  syndication  costs are netted  against
         partners' capital and represent a reduction of Partnership equity and a
         reduction in the basis of each partner's investment. See "Income Taxes"
         footnote for a  reconciliation  of net income for  financial  reporting
         purposes to net income for federal income tax purposes.

         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 2001  presentation.
         These reclassifications had no effect on total partners' capital or net
         income.



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


1.       Significant Accounting Policies - Continued:
         -------------------------------------------

         Staff  Accounting  Bulletin No. 101 ("SAB 101") - In December 1999, the
         Securities and Exchange Commission released SAB 101, which provides the
         staff's view in applying  generally accepted  accounting  principles to
         selected revenue  recognition  issues. SAB 101 requires the Partnership
         to defer recognition of certain  percentage rental income until certain
         defined  thresholds are met. The Partnership  adopted SAB 101 beginning
         January  1,  2000.  Implementation  of SAB 101 did not have a  material
         impact on the Partnership results of operations.

         Statement of  Financial  Accounting  Standards  No. 141 ("FAS 141") and
         Statement of Financial  Accounting  Standards  No. 142 ("FAS 142") - In
         July 2001, the Financial Accounting Standards Board issued Statement of
         Financial  Accounting  Standards No. 141 "Business  Combinations"  (FAS
         141) and Statement of Financial  Accounting Standards No. 142 "Goodwill
         and Other  Intangible  Assets" (FAS 142). The  Partnership has reviewed
         both statements and has determined that both FAS 141 and FAS 142 do not
         apply to the Partnership as of December 31, 2001.

         Statement of Financial  Accounting  Standards  No. 144 ("FAS 144") - In
         October 2001, the Financial Accounting Standards Board issued 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  adoption of FAS 144 did not have any
         effect on the  partnership's  recording  of  impairment  losses as this
         Statement   retained  the   fundamental   provisions  of  FAS  No.  121
         "Accounting for the Impairment of Long-Lived  Assets and for Long-Lived
         Assets to be Disposed of".




<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


2.       Leases:
         ------

         The Partnership  leases its land and buildings to operators of national
         and regional  fast-food and  family-style  restaurants.  The leases are
         accounted for under the provisions of Statement of Financial Accounting
         Standards No. 13, "Accounting for Leases." Some of the leases have been
         classified  as  operating  leases  and  some of the  leases  have  been
         classified as direct  financing  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.  Substantially  all
         leases are for 14 to 20 years and provide  for  minimum and  contingent
         rentals. In addition,  the tenant generally pays all property taxes and
         assessments,  fully maintains the interior and exterior of the building
         and carries insurance  coverage for public liability,  property damage,
         fire and extended  coverage.  The lease options generally allow tenants
         to  renew  the  leases  for two to four  successive  five-year  periods
         subject to the same terms and  conditions  as the initial  lease.  Most
         leases  also allow the tenant to purchase  the  property at fair market
         value after a specified portion of the lease has elapsed.

3.       Land and Buildings on Operating Leases:
         --------------------------------------

         Land and  buildings on operating  leases  consisted of the following at
         December 31:
<TABLE>
<CAPTION>

                                                                       2001                  2000
                                                                -------------------   --------------------

 <c>
                 Land                                                 $  7,060,134           $  7,116,309
                 Buildings                                               9,356,631              8,729,293
                                                                -------------------   --------------------
                                                                        16,416,765             15,845,602
                 Less accumulated depreciation                          (2,355,909)            (2,182,527)
                                                                -------------------   --------------------

                                                                      $ 14,060,856           $ 13,663,075
                                                                ===================   ====================
</TABLE>

         In May 2000, the Partnership  sold its Property in  Williamsville,  New
         York, to a third party for $715,000 and received net sales  proceeds of
         $693,350,  resulting  in  a  loss  of  $27,391.  In  August  2000,  the
         Partnership reinvested approximately $494,600 of the net sales proceeds
         it  received  from this sale in a property in  Libertyville,  Illinois,
         with CNL Income Fund VIII,  Ltd.,  a Florida  limited  partnership  and
         affiliate  of the  general  partners,  as  tenants-in-common  for a 34%
         interest in the property (see Note 5).



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


3.       Land and Buildings on Operating Leases - Continued:
         --------------------------------------------------

         In July 2001, the  Partnership  sold its property in Bedford,  Indiana,
         for which the building was classified as a direct  financing lease (see
         Note 4) to the tenant, in accordance with the purchase option under the
         lease  agreement,  for  approximately  $904,800  and received net sales
         proceeds   of   approximately   $900,100,   resulting   in  a  gain  of
         approximately  $12,100.  In December 2001, the  Partnership  reinvested
         these net sales  proceeds  in a  property  in Blaine,  Minnesota.  This
         property was acquired from CNL Funding 2001-A,  LP, an affiliate of the
         general partners (see Note 9).

         In November 2001, the Partnership sold its property in Copley Township,
         Ohio to an  unrelated  third  party for  approximately  $1,250,000  and
         received net sales proceeds of approximately $1,086,100, resulting in a
         gain of  approximately  $286,700.  In December  2001,  the  Partnership
         reinvested  a portion  of these net sales  proceeds  in a  property  in
         Blaine,  Minnesota. This property was acquired from CNL Funding 2001-A,
         LP, an affiliate of the general partners (see Note 9).

         On  October  31,  2001,   Phoenix   Restaurant   Group,  Inc.  and  its
         Subsidiaries  (collectively  referred  to as "PRG"),  the tenant of the
         Grand  Prairie,  Texas  property,   filed  for  Chapter  11  bankruptcy
         protection.  PRG rejected the lease relating to this  property.  During
         the year ended December 31, 2001, the Partnership  recorded a provision
         for  write-down  of assets in the  amount of $62,125  relating  to this
         property. The provision represented the difference between the carrying
         value of the  property at December  31, 2001 and the general  partners'
         estimated net realizable value for the property.



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


3.       Land and Buildings on Operating Leases - Continued:
         --------------------------------------------------

         In addition,  during the year ended December 31, 2001, the  Partnership
         recorded a provision for  write-down  of assets of $149,948  related to
         previously  accrued rental income  relating to the property  located in
         Wildwood, Florida. The accrued rental income was the accumulated amount
         of  non-cash  accounting  adjustments  previously  recorded in order to
         recognize  future  scheduled  rent  increases as income evenly over the
         term of the lease. The tenant of this property vacated the property and
         ceased restaurant operations.  The provision represented the difference
         between the carrying value of the property,  including the  accumulated
         accrued rental income balance,  and the general partners' estimated net
         realizable value of the property.

         The following is a schedule of the future  minimum lease payments to be
         received on noncancellable operating leases at December 31, 2001:

                        2002                                   $ 1,722,010
                        2003                                     1,723,481
                        2004                                     1,724,966
                        2005                                     1,726,466
                        2006                                     1,280,993
                        Thereafter                               6,815,487
                                                          -----------------

                                                              $ 14,993,403
                                                          =================

         Since  lease  renewal  periods  are  exercisable  at the  option of the
         tenant, the above table only presents future minimum lease payments due
         during  the  initial  lease  terms.  In  addition,  this table does not
         include any amounts for future contingent rentals which may be received
         on the leases based on a percentage of the tenant's gross sales.

4.       Net Investment in Direct Financing Leases:
         -----------------------------------------

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

                                                                           2001                2000
                                                                     -----------------   ------------------

 <c>
                 Minimum lease payments receivable                        $ 4,182,420          $ 6,612,819
                 Estimated residual values                                  1,093,932            1,440,810
                 Less unearned income                                      (2,469,049)          (4,006,439)
                                                                     -----------------   ------------------

                 Net investment in direct financing leases                $ 2,807,303          $ 4,047,190
                                                                     =================   ==================
</TABLE>


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


4.       Net Investment in Direct Financing Leases - Continued:
         -----------------------------------------------------

         In November 2000, the  Partnership  sold its properties in Bluffton and
         Alliance,  Ohio,  to a unrelated  third  party,  resulting in a loss of
         $703,277.  In  connection  therewith,   the  Partnership  accepted  two
         mortgage notes in the aggregate amount of $500,000 (see Note 6).

         During the year ended 2001,  the  Partnership  recorded a provision  of
         $250,852  for  impairment  in the  carrying  value of the  property  in
         Wildwood,  Florida, due to the tenant vacating the property and ceasing
         operations.  The  provision  represented  the  difference  between  the
         carrying value of the property and the general partners'  estimated net
         realizable  value for the property.  In July 2001, the  Partnership and
         the  tenant  terminated  its  lease.  As  a  result,   the  Partnership
         reclassified  the building  portion of the asset from net investment in
         direct financing leases to land and buildings on operating  leases.  In
         accordance  with  Statement of Financial  Accounting  Standards No. 13,
         "Accounting  for Leases,"  the  partnership  recorded the  reclassified
         asset at the lower of original  cost,  present  fair value,  or present
         carrying  amount.  No loss on termination of direct financing lease was
         recorded.

         In July 2001, the  Partnership  sold its property in Bedford,  Indiana,
         for  which  the  building  portion  had  been  classified  as a  direct
         financing lease. In connection therewith, the gross investment (minimum
         lease  payments  receivable  and  the  estimated  residual  value)  and
         unearned income relating to the building were removed from the accounts
         and the gain from the sale of the property was reflected in income (see
         Note 3).

         The  following  is a schedule of future  minimum  lease  payments to be
         received on the direct financing leases at December 31, 2001:

                         2002                                     $ 409,538
                         2003                                       409,538
                         2004                                       409,538
                         2005                                       409,538
                         2006                                       417,981
                         Thereafter                               2,126,287
                                                           -----------------

                                                                 $4,182,420
                                                           =================



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


4.       Net Investment in Direct Financing Leases - Continued:
         ------------------------------------------------------

         The above table does not include  future  minimum  lease  payments  for
         renewal  periods or for contingent  rental payments that may become due
         in future periods (see Note 3).

5.       Investment in Joint Ventures:
         ----------------------------

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

         In November  1999, the  Partnership  acquired a 25% interest in an IHOP
         property in Dublin, California with CNL Income Fund VI, Ltd., a Florida
         limited  partnership and affiliate of the general  partners,  and a 29%
         interest in an IHOP property in  Montgomery,  Alabama,  with CNL Income
         Fund VII, Ltd., also a Florida limited partnership and affiliate of the
         general partners,  as tenants-in-common.  In connection therewith,  the
         Partnership  and the affiliate  entered into an agreement  whereby each
         co-venturer  will share in the  profits  and losses of the  property in
         proportion to its applicable percentage interest.

         In June  2001,  the  Partnership  and CNL  Income  Fund  VI,  Ltd.,  as
         tenants-in-common, sold the property in Dublin, California, for a sales
         price  of  approximately  $1,743,300,  resulting  in  a  gain,  to  the
         tenancy-in-common,  of approximately $158,100. The Partnership received
         approximately  $424,600 as a liquidating  distribution for its pro-rata
         share of the net sales proceeds received by the  tenancy-in-common.  In
         July 2001,  the  Partnership  reinvested  these net sales proceeds in a
         property in Waldorf, Maryland as tenants-in-common with CNL Income Fund
         VI,  Ltd.  and CNL Income Fund XVII,  Ltd.,  each of which is a Florida
         limited  partnership  and an affiliate of the general  partners.  As of
         December  31,  2001,  the  Partnership  had  contributed  approximately
         $342,100 for a 15% interest in the property.



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


5.       Investment in Joint Ventures - Continued:
         ----------------------------------------

         In August 2000, the Partnership  reinvested a majority of the net sales
         proceeds from the sale of the property in Williamsville,  New York in a
         property in Libertyville,  Illinois, with CNL Income Fund VIII, Ltd., a
         Florida limited  partnership and affiliate of the general partners,  as
         tenants-in-common.  In connection  therewith,  the  Partnership and the
         affiliate entered into an agreement whereby each co-venturer will share
         in  the  profits  and  losses  of the  Property  in  proportion  to its
         applicable  percentage interest.  The property was acquired from CNL BB
         Corp.,  an  affiliate  of the  general  partners  (see  Note 9).  As of
         December  31,  2001,  the  Partnership  owned  a 34%  interest  in this
         property.

         CNL Restaurant  Investments II and CNL Restaurant  Investments III each
         own and lease six  properties  to an  operator  of  national  fast-food
         restaurants  and Ashland  Joint Venture owns and leases one property to
         an operator of national  fast-food  restaurants.  The  Partnership  and
         affiliates,  as  tenants-in-common  own, and lease four  properties  to
         operators of national family-style restaurants.  The following presents
         the  joint  ventures'  combined,  condensed  financial  information  at
         December 31:
<TABLE>
<CAPTION>

                                                                          2001                   2000
                                                                    ------------------     ------------------

 <c>
                  Land and buildings on operating
                      leases, net                                        $ 15,523,282            $15,138,593
                  Net investment in direct
                      financing leases                                      1,856,650              1,885,089
                  Cash                                                         50,255                114,664
                  Receivables                                                  12,385                  7,965
                  Accrued rental income                                       198,046                143,221
                  Other assets                                                 24,302                 33,515
                  Liabilities                                                   2,033                 74,621
                  Partners' capital                                        17,662,887             17,248,426
                  Revenues                                                  2,021,770              1,933,389
                  Net income                                                1,607,287              1,520,163

</TABLE>


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


5.       Investment in Joint Ventures - Continued:
         ----------------------------------------

         The Partnership  recognized  income totaling  $753,457,  $674,930,  and
         $606,337,  for the years  ended  December  31,  2001,  2000,  and 1999,
         respectively,  from these joint  ventures  and the  properties  held as
         tenants-in-common with affiliates.

6.       Mortgage Notes Receivable:

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

         The mortgage  notes  receivable  consisted of the following at December
         31:
<TABLE>
<CAPTION>

                                                                  2001                      2000
                                                            -----------------         ------------------

 <c>
               Principal balance                                  $  478,695                 $  500,000
               Accrued interest receivable                             3,711                      3,838
                                                            -----------------         ------------------

                                                                  $  482,406                 $  503,838
                                                            =================         ==================
</TABLE>

         The general partners believe that the estimated fair values of mortgage
         notes  receivable  at December 31, 2001,  approximate  the  outstanding
         principal  amount based on  estimated  current  rates at which  similar
         loans would be made to borrowers  with  similar  credit and for similar
         maturities.

7.       Allocations and Distributions:
         -----------------------------

         From inception through December 31, 1999, generally, all net income and
         net losses of the Partnership, excluding gains and losses from the sale
         of  properties,  were  allocated  99% to the limited  partners  and one
         percent to the general  partners.  From inception  through December 31,
         1999,  distributions  of net cash  flow  were  made 99% to the  limited
         partners and one percent to the general  partners;  provided,  however,
         that the one percent of net cash flow to be  distributed to the general
         partners was subordinated to

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


7.       Allocations and Distributions - Continued:
         -----------------------------------------

         receipt  by  the  limited  partners  of  an  aggregate,   ten  percent,
         cumulative,  noncompounded  annual  return  on their  adjusted  capital
         contributions (the "10% Preferred Return").

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

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

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


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


7.       Allocations and Distributions - Continued:
         -----------------------------------------

         During each of the years ended  December 31, 2001,  2000, and 1999, the
         Partnership   declared   distributions   to  the  limited  partners  of
         $3,150,004.  No distributions have been made to the general partners to
         date.

8.       Income Taxes:
         ------------

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

                                                                  2001               2000                1999
                                                             ---------------   ------------------   ---------------

 <c>
           Net income for financial reporting purposes         $ 1,991,906          $ 1,850,780       $ 2,385,067

           Depreciation for tax reporting purposes
                less than (in excess of) depreciation for
                financial reporting purposes                         2,178              (36,818 )         (44,433 )

             Direct financing leases recorded as operating
                leases for tax reporting purposes                   71,154               69,297            62,969

           Gain on sale of assets for financial reporting
                purposes less than (in excess of) gain for
                tax reporting purposes                              40,172              (30,636 )         (63,807 )

           Equity in earnings of joint ventures for tax
                reporting purposes in excess of (less than)
                equity in earnings of joint ventures
                for financial reporting purposes                   (57,919 )            (18,522 )          62,547

           Capitalization (deduction) of transaction costs
                for tax reporting purposes                              --             (200,150 )         181,109

           Accrued rental income                                    (4,216 )            (27,263 )         (26,847 )

           Rents paid in advance                                     5,484               24,139           (33,374 )

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

           Allowance for doubtful accounts                         (67,300 )             26,700          (150,154 )
                                                             ---------------   ------------------   ---------------

           Net income for federal income tax purposes          $ 2,444,384          $ 1,657,527       $ 2,373,077
                                                             ===============   ==================   ===============

</TABLE>


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


9.       Related Party Transactions:
         --------------------------

         One of the individual general partners, James M. Seneff, Jr., is one of
         the principal  shareholders of CNL Holdings,  Inc. The other individual
         general partner, Robert A. Bourne, serves as President and Treasurer of
         CNL Financial  Group,  Inc., a wholly owned subsidiary of CNL Holdings,
         Inc. CNL APF Partners,  LP (the "Advisor") is a wholly owned subsidiary
         of CNL American Properties Fund, Inc. ("APF"). CNL Fund Advisors, Inc.,
         a majority  owned  subsidiary of CNL  Financial  Group,  Inc.  until it
         merged with and into APF  effective  September  1, 1999,  served as the
         Partnership's  advisor until it assigned its rights in and  obligations
         under a  management  agreement  with  the  Partnership  to the  Advisor
         effective   July  1,  2000.  The   individual   general   partners  are
         stockholders and directors of APF.

         The Advisor  provides  certain  services  relating to management of the
         Partnership and its properties pursuant to a management  agreement with
         the Partnership. In connection therewith, the Partnership agreed to pay
         the Advisor an annual,  noncumulative,  subordinated  management fee of
         one percent of the sum of gross revenues from  properties  wholly owned
         by the  Partnership  and the  Partnership's  allocable  share  of gross
         revenues from joint ventures, but not in excess of competitive fees for
         comparable services. These fees are incurred and are payable only after
         the limited  partners  receive their 10% Preferred  Return.  Due to the
         fact that these fees are  noncumulative,  if the limited  partners have
         not received  their 10%  Preferred  Return in any  particular  year, no
         management  fees will be due or payable  for such year.  As a result of
         such threshold no management  fees were incurred during the years ended
         December 31, 2001, 2000 and 1999.

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



<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


9.       Related Party Transactions - Continued:
         --------------------------------------

         During the years ended  December 31, 2001,  2000, and 1999, the Advisor
         and its affiliate provided  accounting and  administrative  services to
         the Partnership on a day-to-day basis,  including  services during 2000
         and  1999  relating  to  the  proposed  and  terminated   merger.   The
         Partnership  incurred $198,105,  $88,741,  and $116,167,  for the years
         ended  December  31,  2001,  2000,  and  1999,  respectively,  for such
         services.

         During 2000, the Partnership acquired a 34% interest in a property from
         CNL BB Corp.,  an  affiliate  of the  general  partners,  for which the
         property had a total purchase price of  approximately  $1,454,600.  The
         property acquired during 2000 is being held as tenants-in-common,  with
         CNL Income Fund VIII, Ltd. ("CNL VIII"), a Florida limited partnership,
         an affiliate  of the general  partners  (see Note 3). CNL BB Corp.  had
         purchased  and  temporarily  held  title to this  property  in order to
         facilitate the  acquisition of the property by the  Partnership and CNL
         VIII  as  tenants-in-common.  The  total  purchase  price  paid  by the
         Partnership and CNL VIII represented the costs incurred by CNL BB Corp.
         to acquire and carry the property, including closing costs.

         In  December  2001,  the  Partnership  acquired a  property  located in
         Blaine,  Minnesota from CNL Funding 2001-A, LP, for a purchase price of
         approximately  $1,357,600  (see Note 3). CNL  Funding  2001-A,  LP is a
         Delaware limited  partnership and an affiliate of the general partners.
         CNL Funding 2001-A,  LP had purchased and temporarily held title to the
         property in order to facilitate the  acquisition of the property by the
         Partnership. The purchase price paid by the Partnership represented the
         costs  incurred  by CNL  Funding  2001-A,  LP to acquire  and carry the
         property, including closing costs.

         The amount  due to  related  parties  at  December  31,  2001 and 2000,
         totaled $5,878 and $100,846, respectively.


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


10.      Concentration of Credit Risk:
         ----------------------------

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

                                                              2001               2000                1999
                                                         ---------------    ---------------     ---------------

 <c>
          Burger King Corp.                                   $ 643,939          $ 637,301           $ 648,960
          Golden Corral Corp.                                   537,236            548,289             486,531
          Flagstar Enterprises, Inc.                            361,770            363,872             365,630
          Carrols Corp.                                         318,060            320,890             328,051
</TABLE>

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

                                                            2001                  2000                  1999
                                                       ----------------     -----------------     -----------------

 <c>
          Burger King                                       $1,062,392            $1,062,122            $1,086,287
          Golden Corral Family
              Steakhouse Restaurant                            537,236               548,289               486,531
          Hardee's                                             429,975               433,587               436,081
          Shoney's                                             391,170               505,821               659,426
</TABLE>

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


<PAGE>


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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 2001, 2000, and 1999


11.      Selected Quarterly Financial Data:
         ---------------------------------

         The following table presents  selected  unaudited  quarterly  financial
         data for each full quarter during the years ended December 31, 2001 and
         2000.
<TABLE>
<CAPTION>

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

 <c>
         Revenue (1)(2)                   $783,891         $751,929          $693,457          $686,121       $ 2,915,398
         Net income                        369,620          298,276           489,518           834,492         1,991,906
         Net income per
             limited partner
             unit                             0.11             0.09              0.14              0.23              0.57

              2000 Quarter               First            Second            Third            Fourth             Year
         ------------------------    --------------    -------------     -------------    --------------    --------------

         Revenue (1)(2)                   $739,762         $768,311          $688,589          $977,595       $ 3,174,257
         Net income                        505,916          584,089           547,575           213,200         1,850,780
         Net income per
             limited partner
             unit                             0.14             0.17              0.15              0.07              0.53
</TABLE>

(1)      Revenues include equity in earnings of unconsolidated joint ventures.

(2)      Revenues have been adjusted to reclassify any reversals of accrued
         rental income to provision for write-down of assets.

12.      Commitments:
         -----------

         In October  2001,  the  Partnership  entered into an agreement  with an
         unrelated  third party to sell the  Hardee's  property  in  Greenville,
         South Carolina.  In addition, in November 2001, the Partnership entered
         into an agreement  with an  unrelated  third party to sell the Shoney's
         property in Huntsville, Alabama.




<PAGE>


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

         None.


                                    PART III


Item 10.  Directors and Executive Officers of the Registrant

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

         James M. Seneff, Jr., age 55. 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  American  Properties  Fund,
Inc. ("APF"),  a public,  unlisted real estate investment trust, since 1994. Mr.
Seneff served as Chief  Executive  Officer of APF from 1994 through August 1999,
and has served as Co-Chief  Executive  Officer of APF since  December  2000. Mr.
Seneff served as Chairman of the Board and Chief  Executive  Officer of CNL Fund
Advisors,  Inc.,  formerly  the  Partnership's  advisor,  until it merged with a
wholly-owned  subsidiary  of APF  in  September  1999,  and in  June  2000,  was
re-elected  to those  positions  of CNL Fund  Advisors,  Inc.  Mr.  Seneff  is a
principal stockholder of CNL Holdings, Inc., the parent company of CNL Financial
Group,  Inc., a diversified  real estate company,  and has served as a Director,
Chairman of the Board and Chief Executive  Officer of CNL Financial Group,  Inc.
since its formation in 1980. CNL Financial  Group,  Inc. is the parent  company,
either directly or indirectly through subsidiaries, of CNL Real Estate Services,
Inc., CNL Capital Markets, Inc., CNL Investment Company and CNL Securities Corp.
Mr. Seneff also serves as a Director,  Chairman of the Board and Chief Executive
Officer of CNL  Hospitality  Properties,  Inc., a public,  unlisted  real estate
investment trust, as well as, CNL Hospitality  Corp., its advisor.  In addition,
he serves as a Director,  Chairman of the Board and Chief  Executive  Officer of
CNL Retirement Properties, Inc., a public, unlisted real estate investment trust
and its advisor,  CNL Retirement Corp. Since 1992, Mr. Seneff has also served as
a Director,  Chairman of the Board and Chief Executive Officer of Commercial Net
Lease Realty,  Inc., a public real estate investment trust that is listed on the
New York Stock Exchange.  Mr. Seneff has also served as a Director,  Chairman of
the Board and Chief Executive  Officer of CNL Securities  Corp.  since 1979; CNL
Investment  Company  since  1990;  and  CNL  Institutional  Advisors,   Inc.,  a
registered investment advisor for pension plans, since 1990. Mr. Seneff formerly
served  as a  Director  of First  Union  National  Bank of  Florida,  N.A.,  and
currently serves as the Chairman of the Board of CNL Bank. Mr. Seneff previously
served on the Florida State Commission on Ethics and is a former member and past
Chairman of the State of Florida Investment  Advisory Council,  which recommends
to the Florida Board of Administration  investments for various Florida employee
retirement  funds.  The Florida  Board of  Administration,  Florida's  principal
investment advisory and money management agency, oversees the investment of more
than $60 billion of retirement funds. Mr. Seneff received his degree in Business
Administration from Florida State University in 1968.

         Robert A.  Bourne,  age 54. Mr.  Bourne has  participated  as a general
partner  or  co-venturer  in over  100  real  estate  ventures  involved  in the
financing,  acquisition,   construction,  and  leasing  of  restaurants,  office
buildings,  apartment  complexes,  hotels,  and other real estate. Mr. Bourne is
Director of the Board of Directors of APF. Mr. Bourne served as President of APF
from 1994 through  February 1999. He also served as Treasurer from February 1999
through  August 1999 and from May 1994 through  December 1994. He also served in
various  executive  positions with CNL Fund  Advisors,  Inc. prior to its merger
with a  wholly-owned  subsidiary of APF  including,  President from 1994 through
September 1997, and Director from 1994 through August 1999. Mr. Bourne serves as
President and Treasurer of CNL Financial Group, Inc.; Director, Vice Chairman of
the Board,  President  and  Treasurer  of CNL  Hospitality  Properties,  Inc., a
public,  unlisted  real estate  investment  trust;  as well as,  Director,  Vice
Chairman of the Board,  President and Treasurer of CNL  Hospitality  Corp.,  its
advisor. In addition, Mr. Bourne serves as Director, Vice Chairman of the Board,
President and Treasurer of CNL Retirement Properties,  Inc., a public,  unlisted
real  estate  investment  trust;  as well as, a Director,  Vice  Chairman of the
Board,  President and Treasurer of its advisor,  CNL Retirement Corp. Mr. Bourne
also serves as a Director of CNL Bank.  He has served as a Director  since 1992,
Vice Chairman of the Board since  February  1996,  Secretary and Treasurer  from
February 1996 through 1997, and President from July 1992 through  February 1996,
of Commercial  Net Lease  Realty,  Inc., a public real estate  investment  trust
listed on the New York Stock  Exchange.  Mr.  Bourne  also  serves as  Director,
President  and Treasurer for various  affiliates  of CNL Financial  Group,  Inc.
including,  CNL Investment  Company,  CNL Securities Corp. and CNL Institutional
Advisors,  Inc., a registered  investment  advisor for pension plans. Mr. Bourne
began his career as a certified public accountant employed by Coopers & Lybrand,
Certified  Public  Accountants,  from 1971 through  1978,  where he attained the
position  of Tax  Manager in 1975.  Mr.  Bourne  graduated  from  Florida  State
University in 1970 where he received a B.A. in Accounting, with honors.

         Curtis B.  McWilliams,  age 46. Mr.  McWilliams  has served as Co-Chief
Executive  Officer of APF since  December  2000 and  previously  served as Chief
Executive  Officer from  September  1999  through  December  2000.  Prior to the
acquisition of CNL Fund Advisors,  Inc., Mr.  McWilliams  served as President of
APF from  February  1999 until  September  1999.  From February 1998 to February
1999, he served as Executive  Vice President of APF. Mr.  McWilliams  joined CNL
Financial  Group,  Inc. in April 1997 and served as an Executive  Vice President
from October 1997 until September 1999. In addition,  Mr.  McWilliams  served as
President of CNL Fund Advisors, Inc. and CNL Financial Services, Inc. from April
1997 until the acquisition of such entities by wholly-owned  subsidiaries of APF
in September  1999.  From September 1983 through March 1997, Mr.  McWilliams was
employed by Merrill  Lynch & Co. The  majority of his career at Merrill  Lynch &
Co.  was in the  Investment  Banking  division  where he  served  as a  Managing
Director.  Mr.  McWilliams  received  a  B.S.E.  in  Chemical  Engineering  from
Princeton University in 1977 and a Master of Business Administration degree with
a concentration in finance from the University of Chicago in 1983.

         Steven  D.  Shackelford,  age  38.  Mr.  Shackelford  was  promoted  to
Executive Vice President of APF in June 2000. He served as Senior Vice President
from September 1999 until his promotion in June 2000. Mr. Shackelford has served
as Chief  Financial  Officer  since January 1997 and has served as Secretary and
Treasurer of APF since September 1999. He also served as Chief Financial Officer
of CNL Fund Advisors,  Inc. from September  1996 to September  1999.  From March
1995 to July 1996, Mr.  Shackelford  was a senior manager in the national office
of Price  Waterhouse LLP where he was responsible  for advising  foreign clients
seeking to raise capital and a public listing in the United States.  From August
1992 to March  1995,  he was a  manager  in the  Paris,  France  office of Price
Waterhouse, serving several multi-national clients. Mr. Shackelford was an audit
staff and  senior  from  1986 to 1992 in the  Orlando,  Florida  office of Price
Waterhouse.  Mr.  Shackelford  received a Bachelor of Arts degree in Accounting,
with honors, and a Master of Business  Administration  degree from Florida State
University and is a certified public accountant.


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.




<PAGE>


Item 12.  Security Ownership of Certain Beneficial Owners and Management

         As of March 15,  2002,  no person was known to the  Registrant  to be a
beneficial owner of more than five percent of the Units.

         The following  table sets forth,  as of March 15, 2002,  the beneficial
ownership interests of the General Partners in the Registrant.
<TABLE>
<CAPTION>

                    Title of Class                           Name of Partner                 Percent of Class

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

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





<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, 2001,  exclusive of any  distributions  to which the General
Partners or their  affiliates  may be entitled by reason of their  purchase  and
ownership of Units.
<TABLE>
<CAPTION>

                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
          and Recipient                        Method of Computation                  Ended December 31, 2001
----------------------------------     --------------------------------------      ------------------------------

 <c>
Reimbursement  to affiliates  for      Operating  expenses are reimbursed at       Accounting                and
operating expenses                     the  lower  of  cost  or  90%  of the       administra-tive     services:
                                       prevailing  rate at which  comparable       $198,105
                                       services  could have been obtained in
                                       the     same     geographic     area.
                                       Affiliates  of the  General  Partners
                                       from  time  to  time  incur   certain
                                       operating  expenses  on behalf of the
                                       Partnership     for     which     the
                                       Partnership       reimburses      the
                                       affiliates without interest.

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




<PAGE>



                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
         and Recipient                         Method of Computation                  Ended December 31, 2001
---------------------------------      --------------------------------------      ------------------------------

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

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

General   Partners'    deferred,       A deferred,  subordinated share equal       $-0-
subordinated       share      of       to  five   percent   of   Partnership
Partnership  net sales  proceeds       distributions   of  such  net   sales
from  a  sale  or  sales  not in       proceeds,   subordinated  to  certain
liquidation of the Partnership         minimum   returns   to  the   Limited
                                       Partners.


<PAGE>



                                                                                          Amount Incurred
      Type of Compensation                                                                 For the Year
         And Recipient                         Method of Computation                  Ended December 31, 2001
---------------------------------      --------------------------------------      ------------------------------

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

         In addition, during 2001 the Partnership acquired a Property from CNL
         Funding 2001-A, LP, which is an affiliate of the General Partners. The
         aggregate purchase price paid for this Property was approximately
         $1,357,600. CNL Funding 2001-A, LP had purchased and temporarily held
         title to the property in order to facilitate the acquisition of the
         property by the Partnership. The purchase price paid by the Partnership
         represented the costs incurred by CNL Funding 2001-A, LP to acquire and
         carry the property, including closing costs.







<PAGE>


                                     PART IV


Item 14.  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, 2001 and 2000

                  Statements of Income for the years ended December 31, 2001,
                  2000, and 1999

                  Statements of Partners' Capital for the years ended December
                  31, 2001, 2000, and 1999

                  Statements of Cash Flows for the years ended December 31,
                  2001, 2000, and 1999

                  Notes to Financial Statements

         2.   Financial Statement Schedules

                  Schedule II -Valuation and Qualifying Accounts for the years
                  ended December 31, 2001, 2000 and 1999

                  Schedule III - Real Estate and Accumulated Depreciation at
                  December 31, 2001

                  Notes to Schedule III - Real Estate and Accumulated
                  Depreciation at December 31, 2001

                  Schedule IV - Mortgage Loans on Real Estate at December 31,
                  2001

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

         3.   Exhibits

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

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

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

                10.1     Management  Agreement  between CNL Income Fund IX, Ltd.
                         and CNL Investment Company (Included as Exhibit 10.1 to
                         Form  10-K  filed  with  the  Securities  and  Exchange
                         Commission on March 17, 1998, and  incorporated  herein
                         by reference.)

                10.2     Assignment of Management  Agreement from CNL Investment
                         Company to CNL Income Fund Advisors,  Inc. (Included as
                         Exhibit 10.2 to Form 10-K filed with the Securities and
                         Exchange Commission on March 30, 1995, and incorporated
                         herein by reference.)

                10.3     Assignment of Management Agreement from CNL Income Fund
                         Advisors,  Inc. to CNL Fund Advisors, Inc. (Included as
                         Exhibit 10.3 to Form 10-K filed with the Securities and
                         Exchange  Commission on April 1, 1996, and incorporated
                         herein by reference.)

                10.4     Assignment  of  Management   Agreement  from  CNL  Fund
                         Advisors,  Inc. to CNL APF Partners,  LP.  (Included as
                         Exhibit  10.4 to Form 10-Q  filed  with the  Securities
                         Exchange Commission on August 9, 2001, and incorporated
                         herein by reference).

(b)      The  Registrant  filed no reports on Form 8-K during the period October
         1, 2001 through December 31, 2001.





<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 19th day of
March, 2002.

                                     CNL INCOME FUND IX, LTD.

                                     By:      CNL REALTY CORPORATION
                                              General Partner

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


                                     By:      ROBERT A. BOURNE
                                              General Partner

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


                                     By:      JAMES M. SENEFF, JR.
                                              General Partner

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




<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>
<CAPTION>

               Signature                                  Title                                  Date

 <c>


/s/ Robert A. Bourne                     President,   Treasurer   and   Director            March 19, 2002
------------------------------------
Robert A. Bourne                         (Principal   Financial  and  Accounting
                                         Officer)

/s/ James M. Seneff, Jr.                 Chief  Executive  Officer and  Director            March 19, 2002
------------------------------------
James M. Seneff, Jr.                     (Principal Executive Officer)

</TABLE>


<PAGE>

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

                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                  Years Ended December 31, 2001, 2000, and 1999

<TABLE>
<CAPTION>


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

 <c>
  1999        Allowance for
                  doubtful
                  accounts (a)       $  206,052          $    --         $  55,896 (b) $    206,052  (c)      $   --      $ 55,896
                                  ==============  ===============  ================    =============     ============  ============
  2000        Allowance for
                  doubtful
                  accounts (a)        $  55,896          $    --        $   44,281 (b)       $   --         $ 17,581      $ 82,596
                                  ==============  ===============  ================    =============     ============  ============

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

</TABLE>

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

(b)     Reduction of rental and other income.

(c)     Amounts written off as uncollectible.


<PAGE>
                                      CNL INCOME FUND IX, LTD.
                                   (A Florida Limited Partnership)
                        SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                          December 31, 2001
<TABLE>
<CAPTION>


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

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

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

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

    Denny's Restaurants:
      Grand Prairie, Texas (l)  -              240,876       96,580    161,889         -
      North Baltimore, Ohio     -              133,187            -          -         -

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

    Hardee's Restaurants:
      Farragut, Tennessee       -              308,269      455,341          -         -
      Greenville, South Carolina-              310,545      511,438          -         -

    Shoney's Restaurants:
      Windcrest, Texas          -              445,983      670,370          -         -
      Grenada, Mississippi      -              335,001      454,723          -         -
      Huntsville, Alabama (g)   -              638,400      717,302          -         -

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

                                            $7,060,134   $9,256,868   $161,889         -
                                           ============ ============ ========== =========




Properties of Joint Venture in
 Which the Partnership has a
 45.2% Interest and has Invested
 in Under Operating Leases:

    Burger King Restaurants:
      Columbus, Ohio            -             $345,696     $651,985          -         -
      San Antonio, Texas        -              350,479      623,615          -         -
      Pontiac, Michigan         -              277,192      982,200          -         -
      Raceland, Louisiana       -              174,019      986,879          -         -
      New Castle, Indiana       -              264,239      662,265          -         -
      Hastings, Minnesota       -              155,553      657,159          -         -
                                           ------------ ------------ ---------- ---------

                                            $1,567,178   $4,564,103          -         -
                                           ============ ============ ========== =========


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

    Burger King Restaurants:
      Greensboro, North Carolina-             $338,800     $650,109          -         -
      Metairie, Louisiana       -              429,883      342,455          -         -
      Lafayette, Louisiana      -              350,932      773,129          -         -
      Nashua, New Hampshire     -              514,815      838,536          -         -
      Pontiac, Illinois         -              203,095      719,226          -         -
      Dover, New Hampshire      -              406,259      998,023          -         -
                                           ------------ ------------ ---------- ---------

                                            $2,243,784   $4,321,478          -         -
                                           ============ ============ ========== =========

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

    Burger King Restaurant
      Ashland,  New Hampshire   -             $293,478     $997,104          -         -
                                           ============ ============ ========== =========


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

    IHOP Restaurant:
      Englewood Colorado        -             $552,590            -          -         -
                                           ============ ============ ========== =========

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

      IHOP Restaurant:
           Montgomery, Alabama  -             $584,126            -          -         -
                                           ============ ============ ========== =========

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

      Baker's Square
           Libertyville, Illinoi- (k)         $624,626     $830,023          -         -
                                           ============ ============ ========== =========

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

      Bennigan's, Maryland      -             $968,984   $1,311,515          -         -
                                           ============ ============ ========== =========

Properties the Partnership has
   Invested in Under Direct
   Financing Leases:

    Burger King Restaurants:
      Suwanee, Georgia          -                    -     $330,541          -         -

    Denny's Restaurants:
      N. Baltimore, Ohio        -                    -      308,155          -         -

    Hardee's Restaurants:
      Millbrook, Alabama        -              125,703      541,865          -         -
      Greenville, Tennessee     -              127,449      402,926          -         -
      Wooster, Ohio             -              137,427      537,227          -         -
      Auburn, Alabama           -               85,890      364,269          -         -
                                           ------------ ------------ ---------- ---------
                                              $476,469   $2,484,983          -         -
                                           ============ ============ ========== =========

Property in Which the Partnership
  has a 67% Interest as Tenants-
  in-Common and has Invested In
  Under Direct Financing Leases:

    IHOP Restaurant
      Englewood, Colorado       -                    -   $1,008,839          -         -
                                           ============ ============ ========== =========

Property in Which the Partnership
 has a 29% Interest as Tenants-in
 -Common and has Invested In
 Under Direct Financing Leases:

    IHOP Restaurant
      Montgomery, Alabama       -                    -     $933,873          -         -
                                           ============ ============ ========== =========




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






    $567,339      $790,259   $1,357,598       $2,195    1970    12/01         (b)


     289,663       554,268      843,931       82,950    1985    05/91         (j)
     430,563       454,823      885,386      160,372    1980    06/91         (b)
     437,659            (f)     437,659           (d)   1991    11/91         (d)
     360,181       529,594      889,775      178,950    1986    11/91         (b)
     406,768       523,067      929,835       78,281    1983    12/96         (j)


     240,876       196,343      437,219       87,025    1991    08/91         (b)
     133,187            (f)     133,187           (d)   1986    11/91         (d)



     518,605       988,611    1,507,216      347,323    1990    06/91         (b)
     652,103       982,353    1,634,456      345,125    1990    06/91         (b)
     564,576     1,076,633    1,641,209      100,814    1998    03/99         (b)


     308,269       455,341      763,610      155,273    1991    10/91         (b)
     310,545       511,438      821,983      173,842    1991    10/91         (b)


     445,983       670,370    1,116,353      232,150    1991    08/91         (b)
     335,001       454,723      789,724      155,436    1991    09/91         (b)
     638,400       717,302    1,355,702      244,930    1989    10/91         (b)


     420,416       451,506      871,922       11,243    1991    08/91         (b)
-------------  ------------  -----------  -----------

  $7,060,134    $9,356,631   $16,416,765  $2,355,909
=============  ============  ===========  ===========











    $345,696      $651,985     $997,681     $223,044    1986    09/91         (b)
     350,479       623,615      974,094      213,338    1986    09/91         (b)
     277,192       982,200    1,259,392      336,011    1987    09/91         (b)
     174,019       986,879    1,160,898      337,611    1988    09/91         (b)
     264,239       662,265      926,504      226,561    1988    09/91         (b)
     155,553       657,159      812,712      224,814    1990    09/91         (b)
-------------  ------------  -----------  -----------

  $1,567,178    $4,564,103   $6,131,281   $1,561,379
=============  ============  ===========  ===========









    $338,800      $650,109     $988,909     $211,479    1990    03/92         (b)
     429,883       342,455      772,338      111,400    1990    03/92         (b)
     350,932       773,129    1,124,061      251,496    1989    03/92         (b)
     514,815       838,536    1,353,351      272,773    1987    03/92         (b)
     203,095       719,226      922,321      233,962    1988    03/92         (b)
     406,259       998,023    1,404,282      324,653    1987    03/92         (b)
-------------  ------------  -----------  -----------

  $2,243,784    $4,321,478   $6,565,262   $1,405,763
=============  ============  ===========  ===========







    $293,478      $997,104   $1,290,582     $307,510    1987    10/92         (b)
=============  ============  ===========  ===========









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







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







    $624,626      $830,023   $1,454,649      $39,196    2000    08/00         (b)
=============  ============  ===========  ===========






    $968,984    $1,311,515   $2,280,499      $21,859    2001    07/01         (b)
=============  ============  ===========  ===========





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


           -            (f)          (f)          (d)   1986    11/91         (d)


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








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







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

</TABLE>



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

               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                                  DEPRECIATION

                                December 31, 2001


(a)     Transactions  in real estate and accumulated  depreciation  during 2001,
        2000, and 1999, are summarized as follows:
<TABLE>
<CAPTION>

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

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

                 Balance, December 31, 1998                                $  17,026,733      $    1,711,187
                 Acquisition                                                   1,641,209                  --
                 Dispositions                                                 (1,823,513 )          (125,590 )
                 Depreciation expense                                                 --             316,748
                                                                         ----------------   -----------------

                 Balance, December 31, 1999                                   16,844,429           1,902,345
                 Dispositions                                                   (998,827 )           (30,514 )
                 Depreciation expense                                                 --             310,696
                                                                         ----------------   -----------------

                 Balance, December 31, 2000                                   15,845,602           2,182,527
                 Acquisition                                                   1,357,598                  --
                 Dispositions                                                 (1,175,816 )          (139,995 )
                 Provision for loss                                              (62,125 )                --
                 Reclassified to operating lease                                 451,506                  --
                 Depreciation expense                                                 --             313,377
                                                                         ----------------   -----------------

                 Balance, December 31, 2001                                 $ 16,416,765        $  2,355,909
                                                                         ================   =================

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

                 Balance, December, 31, 1998                                $  6,131,281        $  1,104,971
                 Depreciation expense                                                 --             152,136
                                                                         ----------------   -----------------

                 Balance, December 31, 1999                                    6,131,281           1,257,107
                 Depreciation expense                                                 --             152,136
                                                                         ----------------   -----------------

                 Balance, December 31, 2000                                    6,131,281           1,409,243
                 Depreciation expense                                                 --             152,136
                                                                         ----------------   -----------------

                 Balance, December 31, 2001                                 $  6,131,281        $  1,561,379
                                                                         ================   =================



<PAGE>


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

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

                                December 31, 2001

                                                                                           Accumulated
                                                                        Cost               Depreciation
                                                                   ----------------      ----------------
          Properties of Joint Venture in Which the Partnership has a 50%
            Interest and has Invested in Under Operating Leases:

               Balance, December 31, 1998                              $ 6,565,262             $  973,613
               Depreciation expense                                             --                144,050
                                                                   ----------------      ----------------

               Balance, December 31, 1999                                6,565,262              1,117,663
               Depreciation expense                                             --                144,050
                                                                   ----------------      ----------------

               Balance, December 31, 2000                                6,565,262              1,261,713
               Depreciation expense                                             --                144,050
                                                                   ----------------      ----------------

               Balance, December 31, 2001                              $ 6,565,262            $ 1,405,763
                                                                   ================      ================

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

               Balance, December 31, 1998                              $ 1,290,582             $  207,799
               Depreciation expense                                             --                 33,237
                                                                   ----------------      ----------------

               Balance, December 31, 1999                                1,290,582                241,036
               Depreciation expense                                             --                 33,237
                                                                   ----------------      ----------------

               Balance, December 31, 2000                                1,290,582                274,273
               Depreciation expense                                             --                 33,237
                                                                   ----------------      ----------------

               Balance, December 31, 2001                              $ 1,290,582             $  307,510
                                                                   ================      ================


<PAGE>


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

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

                                December 31, 2001

                                                                                            Accumulated
                                                                         Cost              Depreciation
                                                                   -----------------     -----------------
           Property in Which the Partnership has a 67% Interest as
             Tenants-in-Common and has Invested in Under an Operating Lease:

                Balance, December 31, 1998                               $  552,590                $    --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

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

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

                Balance, December 31, 2001                               $  552,590                $    --
                                                                   =================     =================


<PAGE>



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

                Balance, December 31, 1998                                  $    --                $    --
                Acquisition                                                 584,126                     --
                Depreciation expense (d)                                         --                     --
                                                                   -----------------     -----------------

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

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

                Balance, December 31, 2001                              $   584,126              $      --
                                                                   =================     =================

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

                Balance, December 31, 1999                                 $     --              $     --
                Acquisition                                               1,454,649                     --
                Depreciation expense                                             --                 11,528
                                                                   -----------------     --------------------

                Balance, December 31, 2000                                1,454,649                 11,528
                Depreciation expense                                             --                 27,668
                                                                   -----------------     -----------------

                Balance, December 31, 2001                             $  1,454,649            $    39,196
                                                                   =================     =================


<PAGE>


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

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

                                December 31, 2001


                                                                                            Accumulated
                                                                         Cost              Depreciation
                                                                   -----------------     -----------------
           Property in Which the Partnership has a 15.00% Interest as
             Tenants-in-Common and has Invested in Under an Operating
             Lease:

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

                Balance, December 31, 2001                             $  2,280,499            $    21,859
                                                                   =================     =================

</TABLE>

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

(c)      As of December 31, 2000, the aggregate cost of the Properties  owned by
         the  Partnership and joint ventures for federal income tax purposes was
         $19,589,253  and  $20,400,246,  respectively.  All  of the  leases  are
         treated as operating leases for federal income tax purposes.

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

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

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

(g)      The Huntsville,  Alabama Property contains a Shoney's  restaurant and a
         Captain D's  restaurant,  both of which are operated by the same lessee
         pursuant to one lease agreement.

(h)      During the year ended December 31, 2001, the Partnership purchased land
         and building from CNL Funding  2001-A,  LP, an affiliate of the General
         Partners, for an aggregate cost of approximately $1,357,600.

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

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


<PAGE>


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

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

                                December 31, 2001

(k)      During  the year  ended  December  31,  2000,  the  Partnership  and an
         affiliate,  as tenants-in-common,  purchased land and building from CNL
         BB Corp., an affiliate of the General  Partners,  for an aggregate cost
         of approximately $1,454,600.

(l)      The  undepreciated  cost of the Property in Grand Prairie,  Texas,  was
         written down to net realizable 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 $62,125 at December 31, 2001. The
         tenant of this Property  filed for  bankruptcy,  rejected the lease and
         ceased  payment of rents  under the terms of its lease  agreement.  The
         impairment at December 31, 2001 represented the difference  between the
         Property's  carrying  value and the  General  Partners'  estimated  net
         realizable 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, 2001, including the provision for write-down of assets.

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



<PAGE>


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

                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

                                December 31, 2001
<TABLE>
<CAPTION>

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

 <c>
Denny's-
Alliance, OH
First Mortgage       9.00%       December 2008               (2)         $   --        $  200,000       $   192,962        $    --
                                                                    ============   ===============   =============== ==============

Denny's-
Bluffton, OH
First Mortgage       9.00%       December 2008               (3)         $   --        $  300,000       $   289,444        $    --
                                                                    ============   ===============   =============== ==============

</TABLE>

(1)      Carrying  amount   consists  of  outstanding   principal  plus  accrued
         interest. The tax carrying value of the notes are $482,406.

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

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

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

                                                                   2001              2000               1999
                                                              ---------------   ----------------   ----------------

 <c>
        Balance at beginning of period                            $  503,838            $    --           $     --
        New mortgage loan                                                 --            500,000                 --
        Interest earned                                               44,496              3,838                 --

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

        Balance at end of period                                  $  482,406         $  503,838           $     --
                                                              ===============   ================   ================
</TABLE>