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, 1997

                                       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)

                              400 East South Street
                             Orlando, Florida 32801
          (Address of principal executive offices, including zip code)

       Registrant's telephone number, including area code: (407) 422-1574

               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  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,  totalled
$30,800,000,  and were used to acquire 40  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.  As a result of the above  transactions,  as of December  31,
1997,  the  Partnership  owned 40 Properties,  including 13 Properties  owned by
joint ventures in which the  Partnership is a co-venturer and one Property owned
with an affiliate as tenants-in-common. The Partnership leases the Properties 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.  In general,  the General Partners plan to seek the sale of some of
the  Properties  commencing  seven  to 12 years  after  their  acquisition.  The
Partnership  has no  obligation  to sell all or any portion of a Property at any
particular  time,  except as may be required  under  property  purchase  options
granted to certain lessees.

Leases

         Although there are variations in the specific terms of the leases,  the
following  is  a  summarized   description  of  the  general  structure  of  the
Partnership's  leases. The leases of the Properties owned by the Partnership and
the joint ventures in which the Partnership is a co-venturer,  generally provide
for initial terms ranging from 10 to 20 years (the average being 17 years),  and
expire  between 2005 and 2017.  The leases are 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
$50,400 to $171,400.  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.  Certain  lessees  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.  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.

                                        1

<PAGE>




         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.

         During 1994, a temporary  operator assumed operations of the restaurant
business located at the Copley Township,  Ohio Property and paid the Partnership
rent on a month-to-month  basis.  During 1995, a new temporary  operator assumed
operations  of the  restaurant  business  for this  Property  and was paying the
Partnership  rent  on a  month-to-month  basis.  During  1997,  the  Partnership
re-leased this Property to Shells Seafood  Restaurants.  The new lease terms for
this Property are substantially  the same as the  Partnership's  other leases as
described above in the first two paragraphs of this section.

Major Tenants

         During 1997, five of the Partnership's  lessees (or group of affiliated
lessees),  (i) Carrols Corporation,  (ii) TPI Restaurants,  Inc., (iii) Flagstar
Enterprises,  Inc., (iv) Burger King Corporation and BK Acquisition, Inc. (which
are affiliated entities under common control)  (herinafter referred to as Burger
King Corp.) and (v) Golden Corral  Corporation,  each  contributed more than ten
percent of the  Partnership's  total rental income  (including the Partnership's
share of  rental  income  from 13  Properties  owned by joint  ventures  and one
Property  owned  as  tenants-in-common).   As  of  December  31,  1997,  Carrols
Corporation  was the lessee  under  leases  relating  to four  restaurants,  TPI
Restaurants,  Inc.  was the lessee under  leases  relating to five  restaurants,
Flagstar  Enterprises,  Inc.  was  the  lessee  under  leases  relating  to  six
restaurants,  Burger King Corp.  was the lessee under leases  relating to the 13
restaurants owned by joint ventures and Golden Corral Corporation was the lessee
under leases relating to two restaurants.  It is anticipated  that, based on the
minimum rental payments required by the leases,  these five lessees or groups of
affiliated lessees each will continue to contribute more than ten percent of the
Partnership's  total rental income in 1998 and  subsequent  years.  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  income during 1997  (including  the
Partnership's  share of the  rental  income  from 13  Properties  owned by joint
ventures and one Property owned as  tenants-in-common).  In subsequent years, 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. No single
tenant  or  group of  affiliated  tenants  lease  Properties  with an  aggregate
carrying value,  excluding acquisition fees and certain acquisition expenses, in
excess of 20 percent of the total assets of the Partnership.

Joint Venture Arrangements

         The   Partnership   has  entered  into  three  separate  joint  venture
arrangements,  CNL Restaurant Investments II, CNL Restaurant Investments III and
Ashland Joint Venture,  with affiliates of the General  Partners to purchase and
hold 13 Properties.

         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 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 30  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.

                                        2

<PAGE>




         Net cash flow from  operations of CNL  Restaurant  Investments  II, CNL
Restaurant  Investments  III and Ashland Joint Venture is distributed  45.2%, 50
percent  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,  in July 1997, the
Partnership   entered   into  an   agreement   to  hold  an  IHOP   Property  as
tenants-in-common  with an  affiliate  of the General  Partners.  The  agreement
provides  for the  Partnership  and the  affiliate  to share in the  profits and
losses of the Property in proportion to each co- venturer's percentage interest.
The Partnership owns a 67.23% interest in this Property.

Certain Management Services

         CNL Income Fund Advisors,  Inc., an affiliate of the General  Partners,
provided  certain  services  relating to management of the  Partnership  and its
Properties  pursuant to a  management  agreement  with the  Partnership  through
September 30, 1995.  Under this  agreement,  CNL Income Fund Advisors,  Inc. was
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.  CNL Income Fund  Advisors,  Inc. also
assisted the General Partners in negotiating the leases. For these services, the
Partnership  had agreed to pay CNL Income Fund  Advisors,  Inc. 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").

         Effective October 1, 1995, CNL Income Fund Advisors,  Inc. assigned its
rights  in,  and its  obligations  under,  the  management  agreement  with  the
Partnership  to CNL Fund  Advisors,  Inc. 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.

         At the time the Partnership elects to dispose of its Properties,  other
than as a result of the exercise of tenant options to purchase  Properties,  the
Partnership  will be in  competition  with other  persons and entities to locate
purchasers for its Properties.

Employees

         The  Partnership   has  no  employees.   The  officers  of  CNL  Realty
Corporation  and the officers and employees of CNL Fund Advisors,  Inc.  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 Group, Inc., a diversified real estate company, and its affiliates,  who may
also perform certain services for the Partnership.



                                        3

<PAGE>



Item 2.  Properties

         As of December 31, 1997,  the  Partnership  owned,  either  directly or
through  joint  venture  arrangements,  40  Properties,  located  in 17  states.
Reference  is made to the Schedule of Real Estate and  Accumulated  Depreciation
filed  with this  report 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.

         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.

         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.

         Leases  with Major  Tenants.  The terms of each of the leases  with the
Partnership's  major  tenants as of December  31,  1997 (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 is 20 years  (expiring in 2011) and the average  minimum base
annual rent is approximately  $112,300 (ranging from  approximately  $108,000 to
$121,200).

         TPI Restaurants,  Inc. leases four Shoney's restaurants and one Captain
D's  restaurant.  The initial term of each lease is 15 years  (expiring in 2006)
and the average minimum base annual rent is approximately $111,500 (ranging from
approximately $64,200 to $161,000).

         Flagstar Enterprises, Inc. leases six Hardee's restaurants. The initial
term of each lease is 20 years  (expiring in 2011) and the average  minimum base
annual rent is  approximately  $74,400  (ranging from  approximately  $51,500 to
$93,700).

         Burger  King  Corporation  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 two Golden Corral restaurants with an
initial term of 15 years  (expiring in 2005) and the average minimum base annual
rent  is  approximately   $164,500  (ranging  from  approximately   $157,500  to
$171,400).

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






                                        4

<PAGE>



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 a 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

         As of  February  28,  1998,  there were 3,405  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.  Limited  Partners
who wish to sell  their  Units may offer  the  Units  for sale  pursuant  to the
Partnership's  distribution reinvestment plan (the "Plan"), and Limited Partners
who wish to have their  distributions  used to acquire  additional Units (to the
extent Units are available for  purchase),  may do so pursuant to such Plan. The
General Partners have the right to prohibit transfers of Units. Since inception,
the price for any Unit transferred pursuant to the Plan has been $9.50 per Unit.
The price to be paid for any Unit transferred other than pursuant to the Plan is
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 1997 and 1996 other than
pursuant to the Plan, net of commissions.
<TABLE>
<CAPTION>

                                                      1997 (1)                         1996 (1)
                                        ----------------------------------       ----------------------
<S> <C>
                                            High       Low      Average        High       Low      Average
         First Quarter                    $  9.50    $ 8.35      $ 9.12       $10.00    $ 9.50      $ 9.67
         Second Quarter                     10.00      8.10        9.10         9.50      9.50        9.50
         Third Quarter                       9.50      7.90        9.04         9.50      6.67        9.82
         Fourth Quarter                       (2)       (2)         (2)         9.50      9.09        9.36
</TABLE>

(1)      A total of 22,979 and 29,614 Units were transferred other than pursuant
         to  the  Plan  for  the  years  ended   December  31,  1997  and  1996,
         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 the years ended December 31, 1997 and 1996 the Partnership declared
cash  distributions  in the  aggregate  amounts of  $3,150,004  and  $3,185,004,
respectively,  to the Limited  Partners.  During the quarter ended  December 31,
1996, the Partnership declared a special distribution to the Limited Partners of
$35,000 which  represented  cumulative  excess operating  reserves.  The General
Partners anticipate that the Partnership will declare a special  distribution to
the Limited  Partners  during the quarter  ending March 31,  1998,  representing
cumulative excess operating reserves. No amounts distributed to partners for the
years ended  December 31, 1997 and 1996, 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.  As indicated in
the chart below,  these  distributions were declared at the close of each of the
Partnership's  calendar  quarters.  These amounts include monthly  distributions
made in arrears for the Limited Partners electing to receive such  distributions
on this basis.

                                        5

<PAGE>




         Quarter Ended                1997              1996
         -------------              --------          ------
         March 31                   $787,501          $787,501
         June 30                     787,501           787,501
         September 30                787,501           787,501
         December 31                 787,501           822,501

         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.


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

                                  1997           1996             1995            1994            1993
                             -------------- --------------   -------------   -------------   -------------
<S> <C>
Year ended December 31:
   Revenues (1)                $  3,230,343   $  3,404,066    $  3,428,147    $  3,362,394    $  3,504,029
   Net income (3)                 2,937,632      2,960,299       2,987,971       3,003,583       3,116,862
   Cash distributions
      declared (2)                3,150,004      3,185,004       3,185,004       3,150,002       3,150,000
   Net income per Unit                 0.83           0.84            0.85            0.85            0.88
   Cash distributions
      declared per Unit (2)            0.90           0.91            0.91            0.90            0.90

At December 31:
   Total assets                 $31,096,421    $31,343,847     $31,517,255     $31,735,391     $31,854,573
   Partners' capital             30,147,224     30,359,596      30,584,301      30,781,334      30,927,753
</TABLE>

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

(2)      Distributions  for the years ended  December  31,  1996 and 1995,  each
         include a special  distribution  to the  Limited  Partners  of $35,000,
         which represented cumulative excess operating reserves.

(3)      Net income for the year ended December 31, 1997, includes $199,643 from
         a gain on sale of land and building.

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


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 triple-net leases,  with the lessees  responsible for all repairs and
maintenance,  property taxes, insurance and utilities.  As of December 31, 1997,
the Partnership owned 40 Properties, either directly or indirectly through joint
venture arrangements.

Liquidity and Capital Resources

         The  Partnership's  primary  source  of  capital  for the  years  ended
December 31, 1997, 1996 and 1995, 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  $3,157,964,  $3,356,240
and  $3,098,276  for  the  years  ended  December  31,  1997,   1996  and  1995,
respectively.  The decrease in cash from operations  during 1997, as compared to
1996 is  primarily a result of changes in income and  expenses as  discussed  in
"Results of Operations"

                                        6

<PAGE>



below and changes in the  Partnership's  working  capital.  The increase in cash
from operations during 1996, as compared to 1995, is primarily due to changes in
the Partnership's working capital.

         Other  sources and uses of capital  included the  following  during the
years ended December 31, 1997, 1996 and 1995.

         In June 1997, the Partnership sold its Property in Alpharetta, Georgia,
and received net sales proceeds of $1,053,571, resulting in a gain for financial
reporting  purposes of $199,643.  This Property was  originally  acquired by the
Partnership  in  September  1991  and  had a  cost  of  approximately  $711,200,
excluding acquisition fees and miscellaneous  acquisition  expenses;  therefore,
the Partnership  sold the Property for  approximately  $342,400 in excess of its
original purchase price. In July 1997, the Partnership reinvested  approximately
$1,049,800  of these  net  sales  proceeds  in an IHOP  Property  in  Englewood,
Colorado,  as  tenants-in-common,  with an affiliate of the General Partners. 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 each co-venturer's percentage interest. As of December
31, 1997, the Partnership  owned a 67.23% interest in the Property.  The General
Partners  believe that the transaction,  or a portion  thereof,  relating to the
sale  of the  Property  in  Alpharetta,  Georgia,  and the  reinvestment  of the
proceeds in an IHOP Property in Englewood, Colorado, will qualify as a like-kind
exchange transaction for federal income tax purposes.

         In  December  1996,  the  tenant of the  Property  in  Woodmere,  Ohio,
exercised its option under the terms of its lease  agreement,  to substitute the
existing  Property for a replacement  Property.  In conjunction  therewith,  the
Partnership simultaneously exchanged the Burger King Property in Woodmere, Ohio,
with a Burger  King  Property in  Carrboro,  North  Carolina.  The lease for the
Property in Woodmere, Ohio, was amended to allow the Property in Carrboro, North
Carolina,  to continue under the terms of the original lease.  All closing costs
were paid by the tenant.  The  Partnership  accounted for this as a non-monetary
exchange of similar  assets and  recorded  the  acquisition  of the  Property in
Carrboro,  North  Carolina,  at the net book value of the  Property in Woodmere,
Ohio.  No gain or loss  was  recognized  due to this  being  accounted  for as a
non-monetary exchange of similar assets.

         None of the Properties  owned by the  Partnership or the joint ventures
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.

         Currently,  rental income from the Partnership's Properties is invested
in money market accounts or other short-term highly liquid  investments  pending
the  Partnership's  use of such  funds to pay  Partnership  expenses  or to make
distributions  to the  partners.  At December  31,  1997,  the  Partnership  had
$1,250,388 invested in such short-term  investments as compared to $1,288,618 at
December 31, 1996. The funds  remaining at December 31, 1997,  after the payment
of distributions and other  liabilities,  will be used to meet the Partnership's
working capital and other needs.

         During 1997, 1996 and 1995, affiliates of the General Partners incurred
on behalf of the Partnership  $77,999,  $97,032 and $88,563,  respectively,  for
certain  operating  expenses.  As of December 31, 1997 and 1996, the Partnership
owed  $4,619 and  $1,405,  respectively,  to  affiliates  for such  amounts  and
accounting and administrative services. As of February 28, 1998, the Partnership
had reimbursed the affiliates  all such amounts.  Other  liabilities,  including
distributions payable, decreased to $944,578 at December 31, 1997, from $982,846
at December 31, 1996,  primarily as the result of the  Partnership's  accruing a
special distribution payable to the Limited Partners of $35,000, at December 31,
1996,  which was paid in January  1997.  The General  Partners  believe that the
Partnership  has  sufficient  cash on hand to meet its current  working  capital
needs.

         Based on cash from operations,  the Partnership declared  distributions
to the Limited  Partners of $3,150,004  for the year ended December 31, 1997 and
$3,185,004  for  each of the  years  ended  December  31,  1996 and  1995.  This
represents a distribution of $0.90 per Unit for the year ended December 31, 1997
and $0.91 per Unit for each of the years ended  December 31, 1996 and 1995.  The
General  Partners  anticipate  that  the  Partnership  will  declare  a  special
distribution  to the Limited  Partners during the quarter ending March 31, 1998,
representing cumulative

                                        7

<PAGE>



excess operating  reserves.  No amounts  distributed to the Limited Partners for
the years ended  December  31, 1997,  1996 and 1995,  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.

         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.

         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.

Results of Operations

         During  the  years  ended  December  31,  1997,   1996  and  1995,  the
Partnership owned and leased 27 wholly-owned  Properties (including one Property
in Alpharetta,  Georgia, which was sold in June 1997). In addition, during 1997,
1996 and 1995, 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.  During 1997,  the  Partnership  also owned and leased one
Property with an affiliate as  tenants-in-common.  As of December 31, 1997,  the
Partnership  owned,  either directly or through joint venture  arrangements,  40
Properties, which are 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  $50,400 to $171,400.  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,  1997,   1996  and  1995,  the
Partnership  earned  $2,572,954,  $2,771,319 and  $2,807,108,  respectively,  in
rental  income from  operating  leases and earned  income from direct  financing
leases from the Partnership's  wholly owned  Properties.  The decrease in rental
and earned  income in 1997,  as compared to 1996, is partially due to a decrease
in rental and earned income of  approximately  $65,000  during 1997,  due to the
fact that during April 1997,  the  operator of the Property in Copley  Township,
Ohio,  ceased  operations of the Property and the Partnership  ceased  recording
rental income and wrote-off the allowance for doubtful accounts. The Partnership
re-leased this Property to Shells Seafood Restaurants in September 1997 and rent
commenced  December  1997. The decrease in rental and earned income during 1996,
as compared to 1995, is primarily  the result of the fact that during 1996,  the
Partnership  established an allowance for doubtful accounts relating to the same
Property in Copley Township, Ohio.

         Rental and earned  income also  decreased  during 1997,  as compared to
1996, due to the fact that the Partnership established an allowance for doubtful
accounts  of  approximately   $70,000  during  1997,  relating  to  the  Perkins
Properties in  Williamsville  and Rochester,  New York,  which are leased by the
same tenant, due to financial  difficulties the tenant is experiencing.  No such
allowance  was  established  during  1996.  The  Partnership  intends  to pursue
collection of past due amounts from this tenant and will  recognize such amounts
as income if collected.


                                        8

<PAGE>



         In addition,  rental and earned income decreased  approximately $51,800
during 1997, as a result of the sale of the Property in Alpharetta,  Georgia, in
June 1997. In July 1997, the Partnership  reinvested the net sales proceeds in a
Property in Englewood, Colorado, as tenants-in-common,  with an affiliate of the
General Partners, as discussed above in "Liquidity and Capital Resources."

         In addition,  for the years ended December 31, 1997, 1996 and 1995, the
Partnership earned $74,867, $120,999 and $110,036,  respectively,  in contingent
rental income. The decrease in contingent rental income for 1997, as compared to
1996,  is  primarily  attributable  to a change in the  contingent  rent formula
(consisting of an increase to the sales breakpoint on which contingent rents are
computed) in  accordance  with the terms of the leases,  for certain  restaurant
Properties  requiring the payment of contingent  rental income.  The increase in
contingent rental income during 1996, as compared to 1995, is primarily a result
of increased gross sales of certain restaurant  Properties requiring the payment
of contingent rental income.

         During  the  years  ended  December  31,  1997,   1996  and  1995,  the
Partnership also earned $537,853, $460,400 and $453,794, 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 1997,
as compared to 1996 and 1995,  is  primarily  due to the fact that in July 1997,
the  Partnership  reinvested the net sales proceeds it received from the sale of
the Property in Alpharetta,  Georgia,  in an IHOP Property located in Englewood,
Colorado, as tenants-in-common, with an affiliate of the General Partners.

         During at least one of the years  ended  December  31,  1997,  1996 and
1995,  five of the  Partnership's  lessees  (or  group of  affiliated  lessees),
Carrols Corporation, TPI Restaurants,  Inc., Flagstar Enterprises,  Inc., Golden
Corral  Corporation and Burger King Corporation,  each contributed more than ten
percent of the  Partnership's  total rental income  (including the Partnership's
share of  rental  income  from 13  Properties  owned by joint  ventures  and one
Property  owned  as  tenants-in-common).   As  of  December  31,  1997,  Carrols
Corporation  was the lessee  under  leases  relating  to four  restaurants,  TPI
Restaurants,  Inc.  was the lessee under  leases  relating to five  restaurants,
Flagstar  Enterprises,  Inc.  was  the  lessee  under  leases  relating  to  six
restaurants,  Burger King Corp.  was the lessee under leases  relating to the 13
restaurants owned by joint ventures and Golden Corral Corporation was the lessee
under leases relating to two restaurants.  It is anticipated  that, based on the
minimum rental payments required by the leases,  these five lessees or groups of
affiliated lessees each will continue to contribute more than ten percent of the
Partnership's  total rental income in 1998 and  subsequent  years.  In addition,
during at least one of the years ended  December 31, 1997,  1996 and 1995,  four
Restaurant  Chains,  Burger King,  Hardee's,  Golden Corral and  Shoney's,  each
accounted  for more than ten percent of the  Partnership's  total rental  income
(including the Partnership's share of the rental income from 13 Properties owned
by joint  ventures and one Property owned as  tenants-in-common).  In subsequent
years, 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.

         Operating expenses,  including  depreciation and amortization  expense,
were $492,354, $443,767 and $440,176 for the years ended December 31, 1997, 1996
and 1995, respectively. The increase in operating expenses for 1997, as compared
to 1996, is partially attributable to the fact that the Partnership recorded bad
debt expense of $21,000 relating to the Property in Copley  Township,  Ohio. Due
to the fact that the former tenant ceased  operating the Property in April 1997,
the General Partners believe collection of this amount is doubtful. In addition,
the increase in operating  expenses  during 1997,  was partially due to the fact
that during 1997, the  Partnership  recorded past due real estate taxes relating
to the Property in Copley Township,  Ohio of $23,191.  The Partnership  recorded
$9,905 of such  expense  during  1996.  In  addition,  the increase in operating
expenses for 1997, as compared to 1996, was partially  attributable  to the fact
that the Partnership recorded approximately $7,600 in real estate tax expense in
1997 relating to the Perkins  Properties in  Williamsville  and  Rochester,  New
York, which are leased by the same tenant, due to the financial difficulties the
tenant is  experiencing.  The Partnership  intends to pursue  collection of such
amounts and will recognize  such amounts as income if collected.  No real estate
tax expense was recorded for these Properties in 1996.

         The increase in operating expenses during 1996, as compared to 1995, is
primarily a result of an  increase in  accounting  and  administrative  expenses
associated  with operating the Partnership and its Properties and an increase in
insurance  expense as a result of the  General  Partners'  obtaining  contingent
liability and property coverage for the Partnership beginning in May 1995.

                                        9

<PAGE>




         As a result of the 1997 sale of the Property in Alpharetta, Georgia, as
described above in "Liquidity and Capital Resources," the Partnership recognized
a gain for financial  reporting purposes of $199,643 for the year ended December
31, 1997. No Properties were sold during 1996 or 1995.

         The General Partners of the Partnership are in the process of assessing
and addressing the impact of the year 2000 on its computer package software. The
hardware  and  built-in  software  are  believed  to  be  year  2000  compliant.
Accordingly, the General Partners do not expect this matter to materially impact
how the  Partnership  conducts  business  nor its  current or future  results of
operations or financial position.

         The  Partnership's  leases as of December  31,  1997,  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.  Management  expects that  increases in restaurant
sales  volumes  due to  inflation  and real  sales  growth  should  result in an
increase in rental income over time.  Continued inflation also may cause capital
appreciation of the  Partnership's  Properties.  Inflation and changing  prices,
however,  also may have an adverse impact on the sales of the restaurants and on
potential capital appreciation of the Properties.


Item 8.   Financial Statements and Supplementary Data

                                       10

<PAGE>



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

                                    CONTENTS







                                                    Page

Report of Independent Accountants                    12

Financial Statements:

  Balance Sheets                                     13

  Statements of Income                               14

  Statements of Partners' Capital                    15

  Statements of Cash Flows                           16

  Notes to Financial Statements                      18

                                       11

<PAGE>







                        Report of Independent Accountants



To the Partners
CNL Income Fund IX, Ltd.


We have audited the financial  statements and the financial  statement schedules
of CNL Income Fund IX, Ltd. (a Florida limited partnership) listed in Item 14(a)
of this Form 10-K. 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  in  accordance  with  generally   accepted  auditing
standards.  Those standards 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.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial position of CNL Income Fund IX, Ltd. as of
December 31, 1997 and 1996, and the results of its operations and its cash flows
for each of the three years in the period ended  December 31, 1997 in conformity
with generally accepted accounting principles.  In addition, in our opinion, the
financial  statement schedules referred to above, when considered in relation to
the basic financial statements taken as a whole, present fairly, in all material
respects, the information required to be included therein.



/s/ Coopers & Lybrand L.L.P.
-------------------------------------


Orlando, Florida
January 12, 1998

                                       12

<PAGE>



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

                                 BALANCE SHEETS


                                                           December 31,
            ASSETS                                  1997             1996
            ------                               -----------      ----------

Land and buildings on operating
  leases, less accumulated
  depreciation                                   $14,163,111      $14,797,549
Net investment in direct
  financing leases                                 7,482,757        7,964,985
Investment in joint ventures                       6,619,364        5,708,555
Cash and cash equivalents                          1,250,388        1,288,618
Receivables, less allowance for
  doubtful accounts of $108,316
  and $28,983                                         96,134           75,256
Prepaid expenses                                       3,924            3,845
Lease costs, less accumulated
  amortization of $77 in 1997                         14,923               -
Accrued rental income                              1,465,820        1,505,039
                                                 -----------      -----------

                                                 $31,096,421      $31,343,847
                                                 ===========      ===========


  LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                 $     4,490      $     4,987
Accrued and escrowed real estate
  taxes payable                                       45,591           61,618
Distributions payable                                787,501          822,500
Due to related parties                                 4,619            1,405
Rents paid in advance and deposits                   106,996           93,741
                                                 -----------      -----------
    Total liabilities                                949,197          984,251

Partners' capital                                 30,147,224       30,359,596
                                                 -----------      -----------

                                                 $31,096,421      $31,343,847
                                                 ===========      ===========



                 See accompanying notes to financial statements.

                                       13

<PAGE>



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

                              STATEMENTS OF INCOME

<TABLE>
<CAPTION>

                                                                             Year Ended December 31,
                                                                1997                 1996                 1995
                                                             ----------           ----------           -------
<S> <C>
Revenues:
  Rental income from
    operating leases                                         $1,742,351           $1,854,245           $1,880,854
  Earned income from direct
    financing leases                                            830,603              917,074              926,254
  Contingent rental income                                       74,867              120,999              110,036
  Interest and other income                                      44,669               51,348               57,209
                                                             ----------           ----------           ----------
                                                              2,692,490            2,943,666            2,974,353
                                                             ----------           ----------           ----------

Expenses:
  General operating and
    administrative                                              153,175              152,437              130,167
  Professional services                                          24,658               26,610               20,566
  Bad debt expense                                               21,000                   -                    -
  Real estate taxes                                              30,835                9,906               24,837
  State and other taxes                                          11,126                2,775               11,123
  Depreciation and
    amortization                                                251,560              252,039              253,483
                                                             ----------           ----------           ----------
                                                                492,354              443,767              440,176
                                                             ----------           ----------           ----------

Income Before Equity in
  Earnings of Joint
  Ventures and Gain on Sale
  of Land and Building                                        2,200,136            2,499,899            2,534,177

Equity in Earnings of
  Joint Ventures                                                537,853              460,400              453,794

Gain on Sale of Land
  and Building                                                  199,643                   -                    -
                                                             ----------           ----------           ---------

Net Income                                                   $2,937,632           $2,960,299           $2,987,971
                                                             ==========           ==========           ==========

Allocation of Net Income:
  General partners                                           $   27,380           $   29,603           $   29,880
  Limited partners                                            2,910,252            2,930,696            2,958,091
                                                             ----------           ----------           ----------

                                                             $2,937,632           $2,960,299           $2,987,971
                                                             ==========           ==========           ==========

Net Income Per Limited
  Partner Unit                                               $     0.83           $     0.84           $     0.85
                                                             ==========           ==========           ==========

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

                 See accompanying notes to financial statements.

                                       14

<PAGE>



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

                         STATEMENTS OF PARTNERS' CAPITAL

                  Years Ended December 31, 1997, 1996 and 1995


<TABLE>
<CAPTION>

                                 General Partners                      Limited Partners
                                         Accumu-                                      Accumu-
                              Contri-    lated        Contri-         Distri-         lated        Syndication
                              butions   Earnings      butions         butions        Earnings         Costs           Total
                              -------   --------    -----------    ------------    -----------     -----------     --------
<S> <C>
Balance, December 31, 1994    $ 1,000   $102,909    $35,000,000    $(10,320,575)   $10,188,000     $(4,190,000)    $30,781,334

  Distributions to limited
    partners ($0.91 per
    limited partner unit)          -          -              -       (3,185,004)            -               -       (3,185,004)
  Net income                       -      29,880             -               -       2,958,091              -        2,987,971
                              -------   --------    -----------    ------------    -----------     -----------     -----------

Balance, December 31, 1995      1,000    132,789     35,000,000     (13,505,579)    13,146,091      (4,190,000)     30,584,301

  Distributions to limited
    partners ($0.91 per
    limited partner unit)          -          -              -       (3,185,004)            -               -       (3,185,004)
  Net income                       -      29,603             -               -       2,930,696              -        2,960,299
                              -------   --------    -----------    ------------    -----------     -----------     -----------

Balance, December 31, 1996      1,000    162,392     35,000,000     (16,690,583)    16,076,787      (4,190,000)     30,359,596

  Distributions to limited
    partners ($0.90 per
    limited partner unit)          -          -              -       (3,150,004)            -               -       (3,150,004)
  Net income                       -      27,380             -               -       2,910,252              -        2,937,632
                              -------   --------    -----------    ------------    -----------     -----------     -----------

Balance, December 31, 1996    $ 1,000   $189,772    $35,000,000    $(19,840,587)   $18,987,039     $(4,190,000)    $30,147,224
                              =======   ========    ===========    ============    ===========     ===========     ===========



</TABLE>



                 See accompanying notes to financial statements.

                                       15

<PAGE>



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

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                           Year Ended December 31,
                                                                1997                 1996                 1995
                                                            -----------          -----------          --------
<S> <C>
Increase (Decrease) in Cash
  and Cash Equivalents:

    Cash Flows From Operating
      Activities:
        Cash received from
          tenants                                           $ 2,666,373          $ 2,900,048          $ 2,608,733
        Distributions from
          joint ventures                                        676,806              603,833              602,845
        Cash paid for expenses                                 (229,884)            (186,126)            (157,127)
        Interest received                                        44,669               38,485               43,825
                                                            -----------          -----------          -----------
            Net cash provided
              by operating
              activities                                      3,157,964            3,356,240            3,098,276
                                                            -----------          -----------          -----------

    Cash Flows from Investing
      Activities:
        Proceeds from sale of
          land and building                                   1,053,571                   -                    -
        Investment in joint
          venture                                            (1,049,762)                  -                    -
        Payment of lease costs                                  (15,000)                  -                    -
                                                            -----------          -----------          ----------
            Net cash used
              in investing
              activities                                        (11,191)                  -                    -
                                                            -----------          -----------          ----------

    Cash Flows From Financing
      Activities:
        Distributions to
          limited partners                                   (3,185,003)          (3,185,004)          (3,150,004)
                                                            -----------          -----------          -----------
            Net cash used in
              financing
              activities                                     (3,185,003)          (3,185,004)          (3,150,004)
                                                            -----------          -----------          -----------

Net Increase (Decrease) in
  Cash and Cash Equivalents                                     (38,230)             171,236              (51,728)

Cash and Cash Equivalents at
  Beginning of Year                                           1,288,618            1,117,382            1,169,110
                                                            -----------          -----------          -----------

Cash and Cash Equivalents at
  End of Year                                               $ 1,250,388          $ 1,288,618          $ 1,117,382
                                                            ===========          ===========          ===========

</TABLE>


                 See accompanying notes to financial statements.

                                       16

<PAGE>



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

                      STATEMENTS OF CASH FLOWS - CONTINUED

<TABLE>
<CAPTION>

                                                                            Year Ended December 31,
                                                                1997                 1996                 1995
                                                            -----------          -----------          --------
<S> <C>
Reconciliation of Net Income to
  Net Cash Provided by Operating
  Activities:

    Net income                                              $ 2,937,632          $ 2,960,299          $ 2,987,971
                                                            -----------          -----------          -----------
    Adjustments to reconcile net
      income to net cash provided
      by operating activities:
        Depreciation                                            251,483              251,483              251,483
        Amortization                                                 77                  556                2,000
        Equity in earnings of
          joint ventures, net of
          distributions                                         138,953              143,433              149,051
        Gain on sale of land
          and building                                         (199,643)                  -                    -
        Decrease (increase) in
          receivables                                           (20,878)              87,823              (21,714)
        Increase in prepaid
          expenses                                                  (79)              (2,913)                (932)
        Decrease in net investment
          in direct financing
          leases                                                121,311               89,696               73,784
        Increase in accrued
          rental income                                         (70,837)            (225,434)            (287,264)
        Increase (decrease) in
          accounts payable and
          accrued expenses                                      (16,524)              12,111               32,889
        Increase (decrease) in
          due to related parties                                  3,214               (4,639)               6,044
        Increase (decrease) in
          rents paid in advance
          and deposits                                           13,255               43,825              (95,036)
                                                            -----------          -----------          -----------
            Total adjustments                                   220,332              395,941              110,305
                                                            -----------          -----------          -----------

Net Cash Provided by Operating
  Activities                                                $ 3,157,964          $ 3,356,240          $ 3,098,276
                                                            ===========          ===========          ===========

Supplemental Schedule of
  Non-Cash Investing and
  Financing Activities:

    Distributions declared and
      unpaid at December 31                                 $   787,501          $   822,500          $   822,500
                                                            ===========          ===========          ===========

    Land and building under
      operating lease
      simultaneously exchanged
      for land and building
      under operating lease                                 $        -           $   406,768          $        -
                                                            ===========          ===========          ==========
</TABLE>


                 See accompanying notes to financial statements.

                                       17

<PAGE>



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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 1997, 1996 and 1995


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 percent  shareholders of
         the Corporate General Partner. The general partners have responsibility
         for managing the day-to-day operations of the Partnership.

         Real  Estate  and  Lease  Accounting  -  The  Partnership  records  the
         acquisition of land and buildings at cost,  including  acquisition  and
         closing costs. Land and buildings are leased to unrelated third parties
         on a triple-net basis, whereby the tenant is generally  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 method. 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.

                                       18

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


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.

         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, will be removed from
         the  accounts  and gains or losses  from  sales  will be  reflected  in
         income.  The general partners of the Partnership  review the 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 their fair value.

         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,
         and to decrease rental or other income or increase bad debt expense for
         the  current  period,  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 a property in  Englewood,  Colorado,  for which the
         property is held as tenants-in-common with an affiliate,  are accounted
         for using the equity method since the  Partnership  shares control with
         affiliates which have the same general partners.

         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.



                                       19

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


1.       Significant Accounting Policies - Continued:

         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.  The  Partnership  limits  investment  of
         temporary cash investments to financial  institutions  with high credit
         standing;  therefore, the Partnership believes it is not exposed to any
         significant credit risk on cash and cash equivalents.

         Lease costs - Lease costs  associated with  negotiating a new lease 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.

         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.  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.



                                       20

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


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 15 to 20 years and provide  for  minimum and  contingent
         rentals.   In  addition,   the  tenant  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:

                                              1997                   1996
                                           -----------            -----------

                  Land                     $ 8,207,939            $ 8,590,894
                  Buildings                  7,452,942              7,452,942
                                           -----------            -----------
                                            15,660,881             16,043,836
                  Less accumulated
                    depreciation            (1,497,770)            (1,246,287)
                                           -----------            -----------

                                           $14,163,111            $14,797,549
                                           ===========            ===========



                                       21

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


3.       Land and Buildings - Continued:

         In  December  1996,  the  tenant of the  property  in  Woodmere,  Ohio,
         exercised  its  option  under  the  terms of its  lease  agreement,  to
         substitute  the  existing  property  for  a  replacement  property.  In
         conjunction  therewith,  the Partnership  simultaneously  exchanged the
         Burger King property in Woodmere,  Ohio, with a Burger King property in
         Carrboro, North Carolina. The lease for the property in Woodmere, Ohio,
         was  amended to allow the  property in  Carrboro,  North  Carolina,  to
         continue under the terms of the original lease.  All closing costs were
         paid  by  the  tenant.   The  Partnership   accounted  for  this  as  a
         non-monetary exchange of similar assets and recorded the acquisition of
         the property in Carrboro,  North Carolina, at the net book value of the
         property in Woodmere,  Ohio. No gain or loss was recognized due to this
         being accounted for as a non-monetary exchange of similar assets.

         In June 1997, the Partnership sold its property in Alpharetta, Georgia,
         and received net sales proceeds of  $1,053,571,  resulting in a gain of
         $199,643 for financial reporting purposes. This property was originally
         acquired  by the  Partnership  in  September  1991  and  had a cost  of
         approximately  $711,200,  excluding  acquisition fees and miscellaneous
         acquisition expenses;  therefore, the Partnership sold the property for
         approximately $342,400 in excess of its original purchase price.

         Some leases provide for escalating  guaranteed minimum rents throughout
         the  lease  term.   Income  from  these  scheduled  rent  increases  is
         recognized on a straight-line  basis over the terms of the leases.  For
         the years ended  December  31,  1997,  1996 and 1995,  the  Partnership
         recognized $70,837, $225,434 and $287,264, respectively, of such rental
         income.

         The following is a schedule of the future  minimum lease payments to be
         received on noncancellable operating leases at December 31, 1997:

                  1998                            $ 1,766,123
                  1999                              1,766,123
                  2000                              1,766,123
                  2001                              1,802,660
                  2002                              1,933,986
                  Thereafter                       12,647,153
                                                  -----------

                                                  $21,682,168

                                       22

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


3.       Land and Buildings - Continued:

         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:

                                                   1997            1996
                                               ------------    -----------

                  Minimum lease payments
                    receivable                 $ 13,764,606    $ 15,621,897
                  Estimated residual
                    values                        2,495,379       2,590,434
                  Less unearned income           (8,777,228)    (10,247,346)
                                               ------------    ------------

                  Net investment in
                    direct financing
                    leases                     $  7,482,757    $  7,964,985
                                               ============    ============

         The  following  is a schedule of future  minimum  lease  payments to be
         received on the direct financing leases at December 31, 1997:

                  1998                                $   968,047
                  1999                                    968,047
                  2000                                    968,047
                  2001                                    975,586
                  2002                                    999,905
                  Thereafter                            8,884,974
                                                      -----------

                                                      $13,764,606

         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).



                                       23

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995

5.       Investment in Joint Ventures:

         The  Partnership has a 45.2%, a 50 percent and a 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.

         In July 1997, the Partnership used the net sales proceeds from the sale
         of the property in Alpharetta, Georgia, to acquire a 67.23% interest in
         an IHOP property located in Englewood,  Colorado,  as tenants-in-common
         with an affiliate of the general partners. The Partnership accounts for
         its  investment  in this  property  using the equity  method  since the
         Partnership  shares control with an affiliate,  and amounts relating to
         its investment are included in investment in joint ventures.

         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 an
         affiliate,  as  tenants  in common  own and lease  one  property  to an
         operator of a national family-style restaurant.  The following presents
         the  joint  ventures'  combined,  condensed  financial  information  at
         December 31:

                                                    1997            1996
                                                -----------     ------------

                  Land and buildings on
                    operating leases,
                    less accumulated
                    depreciation                $12,582,754     $12,359,586
                  Net investment in
                    direct financing
                    lease                         1,003,680              -
                  Cash                               15,124           1,497
                  Receivables                        35,773          13,840
                  Prepaid expenses                   23,544          22,543
                  Accrued rental income              11,620              -
                  Liabilities                        14,280           1,198
                  Partners' capital              13,658,215      12,396,268
                  Revenues                        1,506,380       1,362,027
                  Net income                      1,141,755       1,000,884

         The Partnership  recognized  income  totalling  $537,853,  $460,400 and
         $453,794  for the  years  ended  December  31,  1997,  1996  and  1995,
         respectively, from these joint ventures.

                                       24

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


6.       Allocations and Distributions:

         Generally, all net income and net losses of the Partnership,  excluding
         gains and losses from the sale of properties,  are allocated 99 percent
         to the  limited  partners  and one  percent  to the  general  partners.
         Distributions  of net  cash  flow are made 99  percent  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  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").

         Generally,  net  sales  proceeds  from the sale of  properties,  to the
         extent  distributed,  will be 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  will  then  receive,   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 will be  distributed  95
         percent  to the  limited  partners  and  five  percent  to the  general
         partners.  Any  gain  from  the  sale of a  property  is,  in  general,
         allocated in the same manner as net sales  proceeds are  distributable.
         Any loss from the sale of a property is, allocated first, on a pro rata
         basis,  to partners with positive  balances in their capital  accounts;
         and thereafter,  95 percent to the limited partners and five percent to
         the general partners.

         During the year ended  December  31,  1997,  the  Partnership  declared
         distributions  to the limited partners of $3,150,004 and during each of
         the years ended  December 31, 1996 and 1995, the  Partnership  declared
         distributions to the limited  partners of $3,185,004.  No distributions
         have been made to the general partners to date.


                                       25

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


7.       Income Taxes:

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

                                                                   1997                1996               1995
                                                                ----------          ----------         -------
<S> <C>
                  Net income for financial
                    reporting purposes                          $2,937,632          $2,960,299         $2,987,971

                  Depreciation for tax
                    reporting purposes
                    in excess of depreci-
                    ation for financial
                    reporting purposes                            (116,620)           (123,734)          (123,820)

                  Direct financing leases
                    recorded as operating
                    leases for tax
                    reporting purposes                             121,311              89,696             73,784

                  Gain on sale of land and
                    building for financial
                    reporting purposes in
                    excess of gain for tax
                    reporting purposes                            (195,820)                 -                  -

                  Equity  in  earnings of
                    joint ventures for tax
                    reporting purposes in
                    excess of equity in
                    earnings of joint
                    ventures for financial
                    reporting purposes                              36,745              37,469             37,469

                  Accrued rental income                            (70,837)           (225,434)          (287,264)

                  Rents paid in advance                             13,255              43,825            (95,036)

                  Allowance for doubtful
                    accounts                                        79,333              14,221            (11,173)
                                                                ----------          ----------         ----------

                  Net income for federal
                    income tax purposes                         $2,804,999          $2,796,342         $2,581,931
                                                                ==========          ==========         ==========
</TABLE>

                                       26

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


8.       Related Party Transactions:

         One of the individual general partners, James M. Seneff, Jr., is one of
         the principal  shareholders  of CNL Group,  Inc., the parent company of
         CNL Fund Advisors, Inc. The other individual general partner, Robert A.
         Bourne, served as president of CNL Fund Advisors,  Inc. through October
         1997. CNL Income Fund Advisors,  Inc. was a wholly owned  subsidiary of
         CNL Group,  Inc. until its merger,  effective January 1, 1996, with CNL
         Fund Advisors,  Inc. During the years ended December 31, 1997, 1996 and
         1995,  CNL Income  Fund  Advisors,  Inc.  and CNL Fund  Advisors,  Inc.
         (hereinafter   referred  to  collectively  as  the  "Affiliates")  each
         performed certain services for the Partnership, as described below.

         During  the years  ended  December  31,  1997,  1996 and 1995,  certain
         Affiliates acted as manager of the Partnership's properties pursuant to
         a management agreement with the Partnership.  In connection  therewith,
         the  Partnership  agreed to pay  Affiliates  an annual,  noncumulative,
         subordinated management fee of one percent of the sum of gross revenues
         from properties  wholly owned by the Partnership and the  Partnership's
         allocable  share of gross  revenues  from  joint  ventures,  but not in
         excess of competitive fees for comparable services.  These fees will be
         incurred  and will be payable only after the limited  partners  receive
         their  10%  Preferred  Return.  Due to the  fact  that  these  fees are
         noncumulative,  if the  limited  partners  do  not  receive  their  10%
         Preferred Return in any particular year, no management fees will be due
         or payable for such year. As a result of such threshold,  no management
         fees were incurred  during the years ended December 31, 1997,  1996 and
         1995.

         Certain   Affiliates   are  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
         Affiliates  provide 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.

                                       27

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995

8.       Related Party Transactions - Continued:

         During the years ended  December  31, 1997,  1996 and 1995,  Affiliates
         provided accounting and administrative services to the Partnership on a
         day-to-day basis. The Partnership incurred $79,234, $82,487 and $64,398
         for the years ended December 31, 1997, 1996 and 1995, respectively, for
         such services.

         The due to related  parties at  December  31,  1997 and 1996,  totalled
         $4,619 and $1,405, respectively.

9.       Concentration of Credit Risk:

         The  following  schedule  presents  total rental and earned income from
         individual  lessees,  each  representing  more than ten  percent of the
         Partnership's   total   rental  and  earned   income   (including   the
         Partnership's  share of total  rental  and  earned  income  from  joint
         ventures), for at least one of the years ended December 31:

                                              1997        1996        1995
                                            --------    --------    ------

                  Burger King
                    Corporation and
                    BK Acquisition,
                    Inc.                    $649,445    $623,949    $617,694
                  TPI Restaurants, Inc.      556,700     565,351     562,259
                  Carrols Corporation        440,057     442,286     444,866
                  Flagstar Enterprises,
                    Inc.                     436,312     460,762     486,188
                  Golden Corral
                    Corporation              337,337     328,975     329,997

         In addition,  the following  schedule  presents total rental and earned
         income from individual  restaurant chains,  each representing more than
         ten  percent  of the  Partnership's  total  rental  and  earned  income
         (including  the  Partnership's  share of total rental and earned income
         from joint ventures), for at least one of the years ended December 31:

                                              1997        1996         1995
                                           ----------  ----------   ----------

                  Burger King              $1,249,715  $1,310,994   $1,293,094
                  Shoney's                    808,675     889,148      904,534
                  Hardees                     436,312     460,762      486,188
                  Golden Corral Family
                    Steakhouse
                    Restaurants               337,337     328,975      329,997

                                       28

<PAGE>



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

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                  Years Ended December 31, 1997, 1996 and 1995


9.       Concentration of Credit Risk - Continued:

         Although  the  Partnership's   properties  are  geographically  diverse
         throughout the United States and the  Partnership's  lessees  operate a
         variety of restaurant concepts,  default by any one of these lessees or
         restaurant chains could significantly  impact the results of operations
         of the Partnership. However, the general partners believe that the risk
         of such a default is reduced due to the  essential or important  nature
         of these properties for the on-going operations of the lessees.

                                       29

<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 Group,  Inc. and their
affiliates, all of which are affiliates of the General Partners.

         James M. Seneff, Jr., age 51, is a principal  stockholder of CNL Group,
Inc., a diversified  real estate company,  and has served as its Chairman of the
Board of Directors,  director and Chief Executive Officer since its formation in
1980.  CNL Group,  Inc.  is the  parent  company of CNL  Securities  Corp.,  CNL
Investment Company, CNL Fund Advisors,  Inc., CNL Real Estate Advisors, Inc. and
prior to its merger with CNL Fund Advisors, Inc., effective January 1, 1996, CNL
Income Fund Advisors, Inc. Mr. Seneff is Chief Executive Officer, and has been a
director and registered  principal of CNL Securities Corp.,  which served as the
managing dealer in the Partnership's  offering of Units,  since its formation in
1979.  Mr.  Seneff also has held the position of President and a director of CNL
Management  Company,  a registered  investment  advisor,  since its formation in
1976,  has served as Chief  Executive  Officer and  Chairman of the Board of CNL
Investment  Company,  and Chief  Executive  Officer and Chairman of the Board of
Commercial Net Lease Realty,  Inc. since 1992, has served as the Chairman of the
Board and the Chief  Executive  Officer of CNL Realty  Advisors,  Inc. since its
inception in 1991 through  December 31, 1997, at which time CNL Realty Advisors,
Inc.  merged with Commercial Net Lease Realty,  Inc.,  served as Chairman of the
Board and Chief  Executive  Officer of CNL Income Fund Advisors,  Inc. since its
inception in 1994 through December 31, 1995, has served as a director,  Chairman
of the Board and Chief  Executive  Officer of CNL Fund Advisors,  Inc. since its
inception in 1994,  and has held the position of Chief  Executive  Officer and a
director of CNL Institutional  Advisors,  Inc., a registered investment advisor,
since its inception in 1990.  In addition,  Mr. Seneff has served as a director,
Chairman of the Board and Chief  Executive  Officer of CNL  American  Properties
Fund,  Inc. since 1994, and has served as a director,  Chairman of the Board and
Chief Executive  Officer of CNL American Realty Fund, Inc. since 1996 and of CNL
Real Estate Advisors,  Inc. since January 1997. 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.  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
joint  venturer in over 100 real  estate  ventures  involved  in the  financing,
acquisition,  construction and rental of office buildings,  apartment complexes,
restaurants,  hotels  and other  real  estate.  Included  in these  real  estate
ventures are approximately 65 privately offered real estate limited partnerships
in which Mr.  Seneff,  directly or through an affiliated  entity,  serves or has
served as a general partner. Also included are CNL Income Fund, Ltd., CNL Income
Fund II, Ltd.,  CNL Income Fund III,  Ltd., CNL Income Fund IV, Ltd., CNL Income
Fund V, Ltd.,  CNL Income Fund VI, Ltd.,  CNL Income Fund VII,  Ltd., CNL Income
Fund VIII,  Ltd.,  CNL Income Fund X, Ltd., CNL Income Fund XI, Ltd., CNL Income
Fund XII,  Ltd.,  CNL Income Fund XIII,  Ltd.,  CNL Income Fund XIV,  Ltd.,  CNL
Income Fund XV, Ltd., CNL Income Fund XVI, Ltd., CNL Income Fund XVII,  Ltd. and
CNL Income Fund XVIII,  Ltd. (the "CNL Income Fund  Partnerships"),  public real
estate limited  partnerships with investment  objectives similar to those of the
Partnership,  in which  Mr.  Seneff  serves  as a general  partner.  Mr.  Seneff
received his degree in Business  Administration from Florida State University in
1968.

                                       30

<PAGE>



         Robert A.  Bourne,  age 50, is  President  and  Treasurer of CNL Group,
Inc., President,  a director and a registered principal of CNL Securities Corp.,
President and a director of CNL Investment Company, and prior to its merger with
CNL Fund Advisors,  Inc.,  effective  January 1, 1996, CNL Income Fund Advisors,
Inc., and Chief Investment Officer,  Vice Chairman of the Board of Directors,  a
director  and  Treasurer  of CNL  Institutional  Advisors,  Inc.,  a  registered
investment  advisor.  Mr.  Bourne  served  as  President  of  CNL  Institutional
Advisors,  Inc. from the date of its inception  through June 30, 1997 and served
as President of CNL Fund Advisors,  Inc. from the date of its inception  through
October 1997.  Mr. Bourne also has served as a director since 1992, as President
from July 1992 to February  1996, as Secretary and Treasurer  from February 1996
through  December 1997, and since February 1996,  served as Vice Chairman of the
Board of Directors of Commercial Net Lease Realty, Inc. In addition,  Mr. Bourne
has served as a director  since its inception in 1991, as President from 1991 to
February  1996, as Secretary from February 1996 to July 1996, and since February
1996, served as Treasurer and Vice Chairman of CNL Realty Advisors, Inc. through
December  31,  1997,  at which  time  CNL  Realty  Advisors,  Inc.  merged  with
Commercial  Net Lease  Realty,  Inc.  In  addition,  Mr.  Bourne  has  served as
President and a director of CNL American  Properties  Fund, Inc. since 1994, and
has served as President and a director of CNL American  Realty Fund,  Inc. since
1996 and of CNL Real Estate  Advisors,  Inc. since January 1997. Upon graduation
from Florida State  University in 1970,  where he received a B.A. in Accounting,
with honors,  Mr.  Bourne  worked as a certified  public  accountant  and,  from
September  1971  through  December  1978,  was  employed  by  Coopers & Lybrand,
Certified  Public  Accountants,  where  he  held  the  position  of tax  manager
beginning in 1975.  From January 1979 until June 1982,  Mr. Bourne was a partner
in the  accounting  firm of Cross & Bourne  and from July 1982  through  January
1987, he was a partner in the accounting firm of Bourne & Rose, P.A.,  Certified
Public  Accountants.  Mr. Bourne,  who joined CNL Securities  Corp. in 1979, has
participated  as a general  partner or joint  venturer  in over 100 real  estate
ventures  involved in the  financing,  acquisition,  construction  and rental of
office  buildings,  apartment  complexes,  restaurants,  hotels  and other  real
estate.  Included in these real estate ventures are  approximately  64 privately
offered  real  estate  limited  partnerships  in which Mr.  Bourne,  directly or
through an affiliated  entity,  serves or has served as a general partner.  Also
included  are the CNL Income  Fund  Partnerships,  public  real  estate  limited
partnerships with investment objectives similar to those of the Partnership,  in
which Mr. Bourne serves as a general partner.

         CNL Realty Corporation is a corporation organized on November 26, 1985,
under the laws of the State of Florida.  Its sole directors and shareholders are
James M. Seneff, Jr. and Robert A. Bourne, the individual General Partners.  CNL
Realty  Corporation  was organized to serve as the corporate  general partner of
real estate limited partnerships,  such as the Partnership,  organized by one or
both of the individual General Partners. CNL Realty Corporation currently serves
as the corporate general partner of the CNL Income Fund Partnerships.

         CNL  Fund  Advisors,  Inc.  provides  certain  management  services  in
connection with the Partnership and its Properties. CNL Fund Advisors, Inc. is a
corporation  organized  in 1994 under the laws of the State of Florida,  and its
principal  office is located at 400 East South Street,  Orlando,  Florida 32801.
CNL Fund  Advisors,  Inc. is a wholly  owned  subsidiary  of CNL Group,  Inc., a
diversified  real  estate  company,   and  was  organized  to  perform  property
acquisition, property management and other services.

         CNL  Group,  Inc.,  which is the parent  company of CNL Fund  Advisors,
Inc.,  was organized in 1980 under the laws of the State of Florida.  CNL Group,
Inc. is a diversified  real estate  company which  provides a wide range of real
estate,  development  and  financial  services to companies in the United States
through the  activities  of its  subsidiaries.  These  activities  are primarily
focused  on the  franchised  restaurant  and  hospitality  industries.  James M.
Seneff,  Jr., an individual General Partner of the Partnership,  is the Chairman
of the Board,  Chief Executive  Officer,  and a director of CNL Group,  Inc. Mr.
Seneff and his wife own all of the outstanding shares of CNL Group, Inc.

         The following persons serve as operating officers of CNL Group, Inc. or
its affiliates or  subsidiaries  in the discretion of the Boards of Directors of
those companies,  but, except as specifically indicated, do not serve as members
of the Boards of Directors of those  entities.  The Boards of Directors have the
responsibility for creating and implementing the policies of CNL Group, Inc. and
its affiliated companies.



                                       31

<PAGE>



         Curtis B. McWilliams,  age 42, joined CNL Fund Advisors,  Inc. in April
1997 and  currently  serves  as  President  of CNL Fund  Advisors,  Inc.  and as
Executive Vice President of CNL American Properties Fund, Inc. In addition,  Mr.
McWilliams  serves  as  Executive  Vice  President  of CNL  Group,  Inc.  and as
President of CNL Financial Services,  Inc. and certain other subsidiaries of CNL
Group,  Inc. From September 1983 through March 1997, Mr. McWilliams was employed
by Merrill  Lynch.  From  January  1991 to August  1996,  Mr.  McWilliams  was a
managing director in the corporate  banking group of Merrill Lynch's  investment
banking division.  During this time, he was a senior  relationship  manager with
Merrill  Lynch and as such was  responsible  for a number of the  firm's  larger
clients.  From February 1990 to February  1993, he also served as co-head of one
of the  Industrial  Banking  Groups within Merrill  Lynch's  investment  banking
division and had administrative responsibility for a group of bankers and client
relationships, including the firm's transportation group. From September 1996 to
March  1997,  Mr.  McWilliams  served as  Chairman  of Merrill  Lynch's  Private
Advisory Services. Mr. McWilliams received a B.S.E. in Chemical Engineering from
Princeton  University  in 1977 and a Masters of Business  Administration  with a
concentration in finance from the University of Chicago in 1983.

         John T. Walker,  age 39, is the Chief  Operating  Officer and Executive
Vice President of CNL Fund Advisors, Inc. and CNL American Properties Fund, Inc.
and serves as Executive Vice President of CNL American Realty Fund, Inc. and CNL
Real Estate  Advisors,  Inc. From May 1992 to May 1994,  he was  Executive  Vice
President for Finance and Administration and Chief Financial Officer of Z Music,
Inc., a cable  television  network  which was  subsequently  acquired by Gaylord
Entertainment, where he was responsible for overall financial and administrative
management  and planning.  From January 1990 through April 1992,  Mr. Walker was
Chief Financial  Officer of the First Baptist Church in Orlando,  Florida.  From
April 1984 through  December  1989, he was a partner in the  accounting  firm of
Chastang,  Ferrell & Walker,  P.A.,  where he was the partner in charge of audit
and  consulting  services,  and  from  1981 to  1984,  Mr.  Walker  was a Senior
Consultant/Audit Senior at Price Waterhouse.  Mr. Walker is a Cum Laude graduate
of Wake Forest  University with a B.S. in Accountancy and is a certified  public
accountant.

         Lynn E. Rose,  age 49, a  certified  public  accountant,  has served as
Chief  Financial  Officer of CNL Group,  Inc. since December 1993, has served as
Secretary of CNL Group,  Inc. since 1987, and served as Controller of CNL Group,
Inc. from 1987 until  December  1993. In addition,  Ms. Rose has served as Chief
Financial Officer and Secretary of CNL Securities Corp. since July 1994. She has
served as Chief Operating Officer, Vice President and Secretary of CNL Corporate
Services,  Inc. since November 1994. Ms. Rose also has served as Chief Financial
Officer and Secretary of CNL Institutional Advisors, Inc. since its inception in
1990, served as a director and Secretary of CNL Realty Advisors,  Inc. since its
inception in 1991 through  December 31, 1997, at which time CNL Realty Advisors,
Inc.  merged with  Commercial  Net Lease Realty,  Inc.,  Treasurer of CNL Realty
Advisors, Inc. from 1991 to February 1996, Secretary and Treasurer of Commercial
Net Lease Realty, Inc. from 1992 to February 1996,  Secretary of CNL Income Fund
Advisors,  Inc.  since its inception in 1994 to December  1995,  and a director,
Secretary and Treasurer of CNL Fund Advisors,  Inc. since 1994 and has served as
a director,  Secretary and  Treasurer of CNL Real Estate  Advisors,  Inc.  since
January  1997.  Ms.  Rose also has  served as  Secretary  and  Treasurer  of CNL
American  Properties  Fund,  Inc.  since 1994,  and has served as Secretary  and
Treasurer of CNL American  Realty Fund, Inc. since 1996. Ms. Rose also currently
serves as Secretary  for  approximately  50  additional  corporations.  Ms. Rose
oversees the management information services, administration,  legal compliance,
accounting,   tenant  compliance,  and  reporting  for  over  300  corporations,
partnerships,  and joint ventures.  Prior to joining CNL, Ms. Rose was a partner
with Robert A. Bourne in the accounting firm of Bourne & Rose,  P.A.,  Certified
Public  Accountants.  Ms. Rose holds a B.A. in Sociology  from the University of
Central Florida. She was licensed as a certified public accountant in 1979.



                                       32

<PAGE>



         Jeanne A. Wall,  age 39, has served as Chief  Operating  Officer of CNL
Investment  Company and of CNL  Securities  Corp.  since  November  1994 and has
served as Executive Vice President of CNL Investment Company since January 1991.
In 1984,  Ms. Wall joined CNL  Securities  Corp.  In 1985,  Ms. Wall became Vice
President of CNL Securities Corp., in 1987, she became Senior Vice President and
in July 1997, she became  Executive  Vice  President of CNL Securities  Corp. In
this  capacity,  Ms. Wall serves as national  marketing  and sales  director and
oversees  the  national  marketing  plan  for the CNL  investment  programs.  In
addition, Ms. Wall oversees product development,  partnership administration and
investor  services for  programs  offered  through  participating  brokers,  and
corporate  communications for CNL Group, Inc. and Affiliates.  Ms. Wall also has
served  as  Senior  Vice  President  of  CNL  Institutional  Advisors,  Inc.,  a
registered  investment  advisor,  from 1990 to 1993,  as Vice  President  of CNL
Realty  Advisors,  Inc.  since  its  inception  in 1991  through  1997,  as Vice
President of  Commercial  Net Lease  Realty,  Inc.  from 1992 through  1997,  as
Executive Vice President of CNL Fund Advisors, Inc. since 1994, and as Executive
Vice President of CNL American  Properties  Fund,  Inc. since 1994. In addition,
Ms. Wall has served as Executive  Vice  President  of CNL Real Estate  Advisors,
Inc. since January 1997 and as Executive  Vice President of CNL American  Realty
Fund,  Inc.  since 1996. Ms. Wall holds a B.A. in Business  Administration  from
Linfield College and is a registered  principal of CNL Securities Corp. Ms. Wall
currently serves as a trustee on the board of the Investment Program Association
and on the Direct  Participation  Program committee for the National Association
of Securities Dealers (NASD).

         Steven D. Shackelford, age 34, has served as Chief Financial Officer of
CNL Fund Advisors,  Inc. since September 1996 and as Chief Financial  Officer of
CNL American  Properties  Fund, Inc. since January 1997. From March 1995 to July
1996, he was a senior manager in the national office of Price  Waterhouse  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 served
as a manager in the Price  Waterhouse,  Paris,  France  office  serving  several
multinational  clients. Mr. Shackelford was an audit staff and audit senior from
1986 to 1992 in the Orlando, Florida office of Price Waterhouse. Mr. Shackelford
received  a  B.A.  in  Accounting,  with  honors,  and  a  Masters  of  Business
Administration   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.


Item 12.  Security Ownership of Certain Beneficial Owners and Management

         As of February 28, 1998, 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 February 28, 1998, the beneficial
ownership interests of the General Partners in the Registrant.
<TABLE>
<CAPTION>

                 Title of Class                    Name of Partner                      Percent of Class
<S> <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.  There are no  arrangements
which at a subsequent date may result in a change in control of the Registrant.



                                       33

<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, 1997,  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, 1997
        -----------------------                   ---------------------                   -----------------------
<S> <C>
Reimbursement to affiliates for          Operating expenses are  reimbursed       Operating expenses incurred on
Operating expenses                       at the lower of cost or 90  percent      behalf of the Partnership:
                                         of the prevailing rate at which          $77,999
                                         comparable services could have
                                         been obtained in the same                 Accounting and administrative
                                         geographic area.  Affiliates of the       services:  $79,234
                                         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 non-cumulative, if the Limited
                                         Partners  do  not  receive   their  10%
                                         Preferred   Return  in  any  particular
                                         year, no management fees will be due or
                                         payable for such year.
==========================================================================================================================
</TABLE>



                                       34

<PAGE>


<TABLE>
<CAPTION>


==========================================================================================================================
                                                                                              Amount Incurred
         Type of Compensation                                                                  For the Year
              and Recipient                       Method of Computation                   Ended December 31, 1997
        -----------------------                   ---------------------                   -----------------------
<S> <C>
Deferred, subordinated real estate       A deferred, subordinated real               $ - 0 -
disposition fee payable to               estate disposition fee, payable
affiliates                               upon sale 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, sub-         A deferred, subordinated share              $ - 0 -
ordinated share of Partnership net       equal to one percent of
cash flow                                Partnership distributions of net
                                         cash flow, subordinated to certain
                                         minimum returns to the Limited
                                         Partners.

General Partners' deferred, sub-         A deferred, subordinated share              $ - 0 -
ordinated share of Partnership net       equal to five percent of
sales proceeds from a sale or            Partnership distributions of such
sales                                    net sales proceeds, subordinated to
                                         certain minimum returns to the
                                         Limited Partners.
==========================================================================================================================
</TABLE>



                                       35

<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 Accountants

                  Balance Sheets at December 31, 1997 and 1996

                  Statements  of Income for the years ended  December  31, 1997,
                  1996 and 1995

                  Statements of Partners'  Capital for the years ended  December
                  31, 1997, 1996 and 1995

                  Statements  of Cash  Flows for the years  ended  December  31,
                  1997, 1996 and 1995

                  Notes to Financial Statements

         2.  Financial Statement Schedule

                  Schedule II - Valuation and Qualifying  Accounts for the years
                  ended December 31, 1997, 1996 and 1995.

                  Schedule  III - Real Estate and  Accumulated  Depreciation  at
                  December 31, 1997

                  Notes  to  Schedule   III  -  Real   Estate  and   Accumulated
                  Depreciation at December 31, 1997

                  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 (Filed herewith.)

                  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.)

                                       36

<PAGE>



                  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.)

                  27       Financial Data Schedule (Filed herewith.)

         (b)      The Registrant  files no reports on Form 8-K during the period
                  October 1, 1997 through December 31, 1997.

                                       37

<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 13th day of
March, 1998.

                                            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
<S> <C>
/s/ Robert A. Bourne                     President, Treasurer and Director                    March 13, 1998
---------------------------------------- (Principal Financial and Accounting
Robert A. Bourne                         Officer)



/s/ James M. Seneff, Jr.                 Chief Executive Officer and Director                 March 13, 1998
---------------------------------------  (Principal Executive Officer)
James M. Seneff, Jr.

==========================================================================================================================

</TABLE>




<PAGE>



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

                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                  Years Ended December 31, 1997, 1996 and 1995

<TABLE>
<CAPTION>


                                                       Additions                       Deductions
                             Balance at       Charged to        Charged to        Deemed                        Balance
                              Beginning        Costs and          Other          Uncollec-     Collec-          at End
Year     Description           of Year         Expenses          Accounts          tible         ted            of Year
----     -----------         ----------       ----------        ----------       ---------     -------        ---------
<S> <C>

1995     Allowance for
           doubtful
           accounts (a)      $122,922          $ -              $ 10,593 (b)      $116,023     $2,730          $ 14,762
                             ========          ====             ========          ========     ======          ========


1996     Allowance for
           doubtful
           accounts (a)      $ 14,762          $ -              $ 22,298 (b)      $  8,077     $   -           $ 28,983
                             ========          ====             ========          ========     ======          ========


1997     Allowance for
           doubtful
           accounts (a)      $ 28,983          $ -              $107,293 (b)      $ 27,960     $   -            $108,316
                             ========          ====             ========          ========     ======           ========

</TABLE>

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

         (b) Reduction of rental and other income.



                                       F-1


<PAGE>



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

             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

                                December 31, 1997


<TABLE>
<CAPTION>

                                                                                           Costs Capitalized
                                                                                               Subsequent
                                                              Initial Cost                  To Acquisition
                                                                        Buildings
                                        Encum-                             and           Improve-     Carrying
                                       brances           Land          Improvements       ments        Costs
<S> <C>
Properties the Partnership
  has Invested in Under
  Operating Leases:

    Burger King Restaurants:
      Shelby, North Carolina                -         $  289,663         $       -       $     -      $     -
      Maple Heights, Ohio                   -            430,563            454,823            -            -
      Suwanee, Georgia                      -            437,658                 -             -            -
      Watertown, New York                   -            360,181            529,594            -            -
      Carrboro, North Carolina              -            406,768                 -             -            -

    Denny's Restaurants:
      Grand Prairie, Texas                  -            240,876             96,580       161,889           -
      North Baltimore, Ohio                 -            133,187            361,010            -            -

    Golden Corral Family
      Steakhouse Restaurants:
        Brownsville, Texas                  -            518,605            988,611            -            -
        Tyler, Texas                        -            652,103            982,353            -            -

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

    Perkins Restaurants:
      Williamsville, New York               -            349,299                 -             -            -
      Rochester, New York                   -            503,527                 -             -            -

    Shell's Seafood Restaurants:
      Copley Township, Ohio                 -            361,412            552,301            -            -

    Shoney's Restaurants:
      Windcrest, Texas                      -            445,983            670,370            -            -
      Wildwood, Florida                     -            420,416                 -             -            -
      Bedford, Indiana                      -            262,103                 -             -            -
      Grenada, Mississippi                  -            335,001            454,723            -            -
      Huntsville, Alabama (g)               -            638,400            717,302            -            -
      Corpus Christi, Texas                 -            803,380            516,607            -            -
                                                      ----------         ----------      --------     -------

                                                      $8,207,939         $7,291,053      $161,889     $     -
                                                      ==========         ==========      ========     =======
</TABLE>


<PAGE>










<TABLE>
<CAPTION>

                                                                                                                         Life
                                                                                                                      on Which
                   Gross Amount at Which Carried                                                                     Depreciation
                       at Close of Period (c)                                                                          in Latest
                            Buildings                                                  Date                             Income
                               and                                Accumulated         of Con-          Date          Statement is
           Land            Improvements           Total           Depreciation       struction       Acquired          Computed
        ----------         ------------        -----------        ------------       ---------       --------        ----------
<S> <C>





        $  289,663              (f)            $   289,663             (d)              1985            05/91            (d)
           430,563         $    454,823            885,386          $   99,729          1980           06/91              (b)
           437,658              (f)                437,658             (d)              1991            11/91            (d)
           360,181              529,594            889,775             108,337          1986           11/91             (b)
           406,768              (f)                406,768             (d)              1983            12/96(j)          (d)


           240,876              258,469            499,345              53,348          1991           08/91            (b)
           133,187              361,010            494,197              51,776          1986           11/91            (h)



           518,605              988,611          1,507,216             215,508          1990           06/91            (b)
           652,103              982,353          1,634,456             214,144          1990           06/91            (b)


           308,269              455,341            763,610              94,561          1991           10/91            (b)
           310,545              511,438            821,983             105,651          1991           10/91            (b)


           349,299                (f)              349,299               (d)            1986            12/91           (d)
           503,527                (f)              503,527               (d)            1988            12/91           (d)


           361,412              552,301            913,713              61,462          1991           12/91            (i)


           445,983              670,370          1,116,353             142,768          1991           08/91            (b)
           420,416               (f)               420,416               (d)            1991           08/91            (d)
           262,103               (f)               262,103               (d)            1991           08/91            (d)
           335,001              454,723            789,724              94,807          1991           09/91            (b)
           638,400              717,302          1,355,702             149,291          1989           10/91            (b)
           803,380              516,607          1,319,987             106,388          1991           10/91            (b)
        ----------         ------------        -----------          ----------

        $8,207,939         $  7,452,942        $15,660,881          $1,497,770
        ==========         ============        ===========          ==========

</TABLE>




                                       F-2


<PAGE>



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

       SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED

                                December 31, 1997


<TABLE>
<CAPTION>

                                                                                                          Costs Capitalized
                                                                                                            Subsequent
                                                                       Initial Cost                        To Acquisition
                                                                                    Buildings
                                                    Encum-                             and           Improve-     Carrying
                                                   brances           Land          Improvements       ments        Costs
<S> <C>
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 Partnership has a
  27.33% Interest and has Invested
  in Under Operating Lease:

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

Property of Joint Venture in
  Which the Partnership has a
  67.23% Interest and has Invested
  in Under Operating Lease:

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

</TABLE>


<PAGE>









<TABLE>
<CAPTION>


                                                                                                                         Life
                                                                                                                       on Which
                    Gross Amount at Which Carried                                                                   Depreciation
                       at Close of Period (c)                                                                         in Latest
                            Buildings                                                  Date                             Income
                               and                                Accumulated         of Con-          Date          Statement is
           Land            Improvements           Total           Depreciation       struction       Acquired          Computed
        ----------         ------------        -----------        ------------       ---------       --------        ----------
<S> <C>







        $  345,696           $  651,985        $   997,681          $  136,113          1986           09/91              (b)
           350,479              623,615            974,094             130,190          1986           09/91              (b)
           277,192              982,200          1,259,392             205,051          1987           09/91              (b)
           174,019              986,879          1,160,898             206,028          1988           09/91              (b)
           264,239              662,265            926,504             138,259          1988           09/91              (b)
           155,553              657,159            812,712             137,193          1990           09/91              (b)
        ----------           ----------        -----------          ----------

        $1,567,178           $4,564,103        $ 6,131,281          $  952,834
        ==========           ==========        ===========          ==========








        $  338,800           $  650,109        $   988,909          $  124,797          1990           03/92              (b)
           429,883              342,455            772,338              65,739          1990           03/92              (b)
           350,932              773,129          1,124,061             148,413          1989           03/92              (b)
           514,815              838,536          1,353,351             160,968          1987           03/92              (b)
           203,095              719,226            922,321             138,065          1988           03/92              (b)
           406,259              998,023          1,404,282             191,583          1987           03/92              (b)
        ----------           ----------        -----------          ----------

        $2,243,784           $4,321,478        $ 6,565,262          $  829,565
        ==========           ==========        ===========          ==========







        $  293,478           $  997,104        $ 1,290,582          $  174,562          1987           10/92              (b)
        ==========           ==========        ===========          ==========







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

</TABLE>




                                       F-3


<PAGE>



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

       SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED

                                December 31, 1997

<TABLE>
<CAPTION>


                                                                                           Costs Capitalized
                                                                                                Subsequent
                                                             Initial Cost                      To Acquisition
                                                                         Buildings
                                         Encum-                             and           Improve-     Carrying
                                        brances           Land          Improvements       ments        Costs
<S> <C>
Properties the Partnership
  has Invested in Under
  Direct Financing Leases:

    Burger King Restaurants:
      Shelby, North Carolina                 -         $       -          $  622,661      $     -      $     -
      Suwanee, Georgia                       -                 -             330,541            -            -
      Carrboro, North Carolina               -                 -             587,775            -            -

    Denny's Restaurants:
      Alliance, Ohio                         -             92,120                 -        490,706           -
      Bluffton, Ohio                         -            150,380            538,173            -            -

    Hardee's Restaurants:
      Millbrook, Alabama                     -            125,703            541,865            -            -
      Greeneville, Tennessee                 -            127,449            402,926            -            -
      Wooster, Ohio                          -            137,427            537,227            -            -
      Auburn, Alabama                        -             85,890            364,269            -            -

    Perkins Restaurants:
      Williamsville, New York                -                 -             712,723            -            -
      Rochester, New York                    -                 -             648,182            -            -

    Shoney's Restaurants:
      Wildwood, Florida                      -                 -             846,903            -            -
      Bedford, Indiana                       -                 -             540,604            -            -
                                                       ----------         ----------      --------     -------

                                                       $  718,969         $6,673,849      $490,706     $     -
                                                       ==========         ==========      ========     =======

Property of Joint Venture in
  Which the Partnership has a
  67.23% Interest and has Invested
  in Under Operating Lease:

    IHOP:
      Englewood, Colorado                    -         $       -          $1,008,839      $     -      $     -
                                                       ==========         ==========      ========     =======
</TABLE>


<PAGE>









<TABLE>
<CAPTION>


                                                                                                                         Life
                                                                                                                       on Which
                     Gross Amount at Which Carried                                                                   Depreciation
                       at Close of Period (c)                                                                         in Latest
                            Buildings                                                  Date                             Income
                               and                                Accumulated         of Con-          Date          Statement is
           Land            Improvements           Total           Depreciation       struction       Acquired          Computed
        ----------         ------------        -----------        ------------       ---------       --------        ----------
<S> <C>





             -                       (f)                  (f)             (d)               1985            05/91         (d)
             -                       (f)                  (f)             (d)               1991            11/91         (d)
             -                       (f)                  (f)             (d)               1983            12/96(j)      (d)


                (f)                    (f)                (f)             (e)               1992            10/91         (e)
                (f)                    (f)                (f)             (e)               1986            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)                (f)             (e)               1991            10/91         (e)


             -                       (f)                  (f)             (d)               1986            12/91         (d)
             -                       (f)                  (f)             (d)               1988            12/91         (d)


             -                       (f)                  (f)             (d)               1991            08/91         (d)
             -                       (f)                  (f)             (d)               1991            08/91         (d)









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


</TABLE>




                                       F-4


<PAGE>



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

        NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

                                December 31, 1997



(a)      Transactions in real estate and accumulated  depreciation  during 1997,
         1996 and 1995 are summarized as follows:
<TABLE>
<CAPTION>

                                                                             Accumulated
                                                              Cost           Depreciation
<S> <C>
                    Properties the Partnership
                      has Invested in Under
                      Operating Leases:

                        Balance, December 31, 1994        $15,491,535          $  743,321
                        Reclassified to operating
                          lease                               552,301                  -
                        Depreciation expense                       -              251,483
                                                          -----------          ----------

                        Balance, December 31, 1995         16,043,836             994,804
                        Disposition                          (406,768)                 -
                        Acquisition                           406,768                  -
                        Depreciation expense                       -              251,483
                                                          -----------          ----------

                        Balance, December 31, 1996         16,043,836           1,246,287
                        Disposition                          (382,955)                 -
                        Depreciation expense                       -              251,483
                                                          -----------          ----------

                        Balance December 31, 1997         $15,660,881          $1,497,770
                                                          ===========          ==========


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

                        Balance, December 31, 1994        $ 6,131,281          $  496,424
                        Depreciation expense                       -              152,137
                                                          -----------          ----------

                        Balance, December 31, 1995          6,131,281             648,561
                        Depreciation expense                       -              152,137
                                                          -----------          ----------

                        Balance, December 31, 1996          6,131,281             800,698
                        Depreciation expense                       -              152,136
                                                          -----------          ----------

                        Balance, December 31, 1997        $ 6,131,281          $  952,834
                                                          ===========          ==========


</TABLE>





                                       F-5


<PAGE>



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

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

                                December 31, 1997

<TABLE>
<CAPTION>


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

                        Balance, December 31, 1994                   $ 6,565,262          $  397,417
                        Depreciation expense                                  -              144,050
                                                                     -----------          ----------

                        Balance, December 31, 1995                     6,565,262             541,467
                        Depreciation expense                                  -              144,049
                                                                     -----------          ----------

                        Balance, December 31, 1996                     6,565,262             685,516
                        Depreciation expense                                  -              144,049
                                                                     -----------          ----------

                        Balance, December 31, 1997                   $ 6,565,262          $  829,565
                                                                     ===========          ==========


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

                        Balance, December 31, 1994                   $ 1,290,582          $   74,851
                        Depreciation expense                                  -               33,237
                                                                     -----------          ----------

                        Balance, December 31, 1995                     1,290,582             108,088
                        Depreciation expense                                  -               33,237
                                                                     -----------          ----------

                        Balance, December 31, 1996                     1,290,582             141,325
                        Depreciation expense                                  -               33,237
                                                                     -----------          ----------

                        Balance, December 31, 1997                   $ 1,290,582          $  174,562
                                                                     ===========          ==========


                    Property in Which the Partnership
                      has a 69.23% Interest as
                      Tenants-in-Common and has
                      Invested in Under an Operating
                      Lease:

                        Balance, December 31, 1996                   $        -           $       -
                        Acquisition                                      552,590                  -
                        Depreciation expense (d)                              -                   -
                                                                     -----------          ---------

                        Balance, December 31, 1997                   $   552,590          $       -
                                                                     ===========          =========

</TABLE>

                                       F-6


<PAGE>



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

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

                                December 31, 1997



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

(c)        As of December 31, 1996, the aggregate  cost of the Properties  owned
           by the Partnership and joint ventures for federal income tax purposes
           was $23,476,756 and $15,036,874,  respectively. All of the leases are
           treated as operating leases for federal income tax purposes

(d)        For financial reporting  purposes,  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)        For financial reporting purposes, 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)        For financial  reporting  purposes,  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  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)        Effective  January 1, 1994,  the lease for this Property was amended,
           resulting  in the  reclassification  of the  building  portion of the
           lease to an  operating  lease.  The building was recorded at net book
           value as of January  1,  1994,  and  depreciated  over its  remaining
           estimated life of approximately 28 years.

(i)        Effective   January  1,  1995,   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 January 1, 1995, and depreciated  over its remaining
           estimated  life  of   approximately   27  years.   During  1997,  the
           Partnership released this Property to Shells Seafood Restaurants.

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


















                                       F-7


<PAGE>



                                    EXHIBITS


<PAGE>


                                  EXHIBIT INDEX


                                 Exhibit Number

        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 (Filed herewith.)

        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.)

        27        Financial Data Schedule (Filed herewith.)

                                        i