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

                                    FORM 10-K

(Mark One)

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

                   For the fiscal year ended December 31, 2003

                                       OR

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

                        For the transition period from to

                         Commission file number 0-19144

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

        Florida                                        59-2922954
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

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

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

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

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

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

              Units of limited partnership interest ($500 per Unit)
                                (Title of class)

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

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

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

         Aggregate market value of the voting stock held by nonaffiliates of the
registrant:  The  registrant  registered  an offering of 70,000 units of limited
partnership  interest  (the  "Units") on Form S-11 under the  Securities  Act of
1933, as amended. Since no established market for such Units exists, there is no
market value for such Units. Each Unit was originally sold at $500 per Unit.

                      DOCUMENTS INCORPORATED BY REFERENCE:
                                      None


<PAGE>


                                     PART I


Item 1.  Business

         CNL Income Fund VI, Ltd. (the  "Registrant" or the  "Partnership") is a
limited  partnership  which was  organized  pursuant to the laws of the State of
Florida on August 17, 1988. 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 June 8, 1989, the Partnership
offered  for  sale up to  $35,000,000  in  limited  partnership  interests  (the
"Units") (70,000 Units at $500 per Unit) pursuant to a registration statement on
Form S-11 under the Securities Act of 1933, as amended,  effective  December 16,
1988.  The offering  terminated  on January 22, 1990,  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  selected   national  and  regional   fast-food  and  family-style
restaurant  chains (the  "Restaurant  Chains").  Net proceeds to the Partnership
from its  offering of Units,  after  deduction  of  organizational  and offering
expenses, totaled $30,975,000, and were used to acquire 42 Properties, including
interests in four Properties owned by joint ventures in which the Partnership is
a co-venturer.

         As of December 31, 2000, the Partnership  owned 23 Properties  directly
and 15  Properties  indirectly  through  joint  venture  and  tenancy  in common
arrangements.  In 2001, the  Partnership  reinvested the net sales proceeds from
the 2000 sale of four Properties in Florida in a Property in Burley, Idaho and a
Property in Cleburne, Texas. During 2001, the Partnership sold its Properties in
Chester,  Pennsylvania  and  Cheyenne,  Wyoming  and the  Properties  in Dublin,
California  and Round Rock,  Texas,  each of which was held with an affiliate of
the General  Partners  as  tenants-in-common.  The  Partnership  reinvested  the
majority  of the sales  proceeds  from the sales of the  Properties  in Chester,
Pennsylvania, Dublin, California and Round Rock, Texas in a Property in Houston,
Texas and a Property in Waldorf,  Maryland with CNL Income Fund IX, Ltd. and CNL
Income Fund XVII,  Ltd., each of which is a Florida  limited  partnership and an
affiliate of the General Partners.  During 2002, the Partnership  reinvested the
remaining  sales  proceeds  from the 2001  sales of  several  Properties  in two
Properties,  one in Universal City, Texas and one in Schertz,  Texas,  each as a
separate tenancy in common  arrangement with CNL Income Fund XI, Ltd., a Florida
limited partnership and an affiliate of the General Partners.  During 2002, Caro
Joint Venture,  in which the  Partnership  owned a 66.14%,  sold its Property in
Caro,  Michigan.  In  addition,  during  2002,  the  building on the Property in
Marietta,  Georgia was  destroyed by fire.  In 2003,  the  Partnership  received
insurance  proceeds and  reinvested  them in a Property in Dalton,  Georgia,  as
tenants-in-common,  with CNL Income Fund XI, Ltd., CNL Income Fund XV, Ltd., and
CNL Income Fund XVI, Ltd., each of which is a Florida limited partnership and an
affiliate  of the  General  Partners.  During  2003,  the  Partnership  sold its
Property in Broken Arrow,  Oklahoma.  In addition,  during 2003,  Show Low Joint
Venture,  in which the Partnership  owned a 36% interest,  sold its Property and
the Partnership and the joint venture partner  liquidated the joint venture.  As
of December  31,  2003,  the  Partnership  owned 23  Properties  directly and 15
Properties  indirectly through joint venture and tenancy in common arrangements.
Generally,  the  Properties  are leased on a  triple-net  basis with the lessees
responsible  for all repairs and  maintenance,  property  taxes,  insurance  and
utilities.

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

Leases

         Although there are variations in the specific terms of the leases,  the
following  is  a  summarized   description  of  the  general  structure  of  the
Partnership's leases. The leases of the Properties owned by the Partnership, the
joint  ventures in which the  Partnership  is a co-venturer  and the  Properties
owned with affiliates as  tenants-in-common  provide for initial terms,  ranging
from 10 to 25 years (the average  being 18 years),  and expire  between 2004 and
2029.  The  leases  generally  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 $39,500 to
$246,400.  Generally,  the leases provide for percentage  rent based on sales in
excess of a specified  amount.  In addition,  some of the leases  provide  that,
commencing  in the fourth to sixth lease year,  the  percentage  rent will be an
amount equal to the greater of the percentage  rent  calculated  under the lease
formula or a  specified  percentage  (ranging  from one to five  percent) of the
purchase price or gross sales.

         Generally,  the  leases  of the  Properties  provide  for  two to  four
successive five-year renewal options subject to the same terms and conditions as
the initial lease.  Lessees of 31 of the  Partnership's  38 Properties also have
been granted  options to purchase  Properties at the Property's then fair market
value,  or pursuant to a formula  based on the  original  purchase  price of the
Property,  after a specified portion of the lease term has elapsed.  Fair market
value will be determined through an appraisal by an independent appraisal firm.

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

         In  January  2002,  Houlihan's  Restaurant,  Inc.,  the  tenant  of the
Property owned by Show Low Joint Venture,  filed for bankruptcy and rejected the
lease relating to the Property in Greensboro, North Carolina. In September 2003,
the joint venture sold this Property.  In December 2003, the Partnership and the
joint venture partner liquidated the joint venture and the Partnership  received
its pro rata share of the liquidating distribution.

         In July 2002,  Loco Lupe's of  Hermitage,  Inc., a tenant of one of the
Partnership's Properties,  filed for Chapter 11 bankruptcy protection.  Although
the tenant  affirmed  the one lease it has with the  Partnership,  in  September
2003, the tenant stopped making rental payments.  The lost revenues will have an
adverse  effect  on  the  results  of  operations  of  the  Partnership  if  the
Partnership is unable to re-lease the Property in a timely manner.

         The tenant of the Property in Detroit, Michigan exercised its option to
extend the lease for an additional  five years  beginning in February  2003. All
other lease  terms  remained  unchanged  and are  substantially  the same as the
Partnership's other leases.

         In  October  2003,  Chevy's,  Inc.,  the  tenant  of  the  Property  in
Vancouver,  Washington  which the  Partnership  owns as  tenants-in-common  with
affiliates of the General Partners,  filed for Chapter 11 bankruptcy protection.
The Partnership  owns a 23.04%  interest in this Property.  While the tenant has
neither rejected nor affirmed the one lease it has with the  Partnership,  there
can be no assurance that the lease will not be rejected in the future.  The lost
revenues that would result if the tenant rejects this lease will have an adverse
effect on the equity in earnings of joint  ventures  of the  Partnership  if the
tenancy in common is not able to re-lease the Property in a timely manner.

         In December 2003,  Waving  Leaves,  Inc., the tenant of the Property in
Waynesburg,  Ohio filed for Chapter 11 bankruptcy  protection.  While the tenant
has neither  rejected nor  affirmed  the one lease it has with the  Partnership,
there can be no assurance that the lease will not be rejected in the future. The
lost  revenues  that would result if the tenant  rejects this lease will have an
adverse  effect  on  the  results  of  operations  of  the  Partnership  if  the
Partnership is not able to re-lease the Property in a timely manner.

         During  2003,  the  Partnership  sold its  Property  in  Broken  Arrow,
Oklahoma. In addition,  during 2003, the Partnership reinvested a portion of the
insurance  proceeds  from the  Property  in  Marietta,  Georgia in a Property in
Dalton,  Georgia,  as a tenancy in common  arrangement  with CNL Income Fund XI,
Ltd., CNL Income Fund XV, Ltd., and CNL Income Fund XVI, Ltd.,  each of which is
a Florida  limited  partnership  and an affiliate of the General  Partners.  The
lease terms for this Property are  substantially  the same as the  Partnership's
other leases.

Major Tenants

         During 2003, two lessees of the Partnership and its consolidated  joint
venture,  Golden Corral Corporation and IHOP Properties,  Inc., each contributed
more than ten percent of total  rental  revenues  (including  the  Partnership's
share of total rental revenues from the Properties owned by unconsolidated joint
ventures and the  Properties  owned with  affiliates of the General  Partners as
tenants-in-common).  As of December 31, 2003, Golden Corral  Corporation was the
lessee under leases relating to five restaurants and IHOP  Properties,  Inc. was
the lessee under leases  relating to six  restaurants.  It is anticipated  that,
based on the minimum rental payments  required by the leases,  these two lessees
each will  continue  to  contribute  more than ten  percent of the total  rental
revenues in 2004. In addition,  two Restaurant Chains,  Golden Corral Buffet and
Grill  ("Golden  Corral") and IHOP,  each accounted for more than ten percent of
total rental revenues in 2003 (including the Partnership's share of total rental
revenues from the Properties owned by unconsolidated joint ventures in which the
Partnership  is a co-venturer  and the Properties  owned with  affiliates of the
General  Partners as  tenants-in-common).  In 2004, it is anticipated that these
two Restaurant Chains each will continue to account for more than ten percent of
the total rental  revenues to which the  Partnership is entitled under the terms
of the leases. Any failure of these lessees or Restaurant Chains will materially
affect the  Partnership's  operating  results if the  Partnership is not able to
re-lease the Properties in a timely  manner.  As of December 31, 2003, no single
tenant  or group of  affiliated  tenants  leased  Properties  with an  aggregate
carrying value in excess of 20% of the total assets of the Partnership.

Joint Venture and Tenancy in Common Arrangements

         The  Partnership  has  entered  into the  following  joint  venture and
tenancy in common arrangements as of December 31, 2003:
<TABLE>
<CAPTION>

 <c>
              Entity Name             Year      Ownership               Partners                    Property

     Auburn Joint Venture             1989        3.90%      CNL Income Fund IV, Ltd.         Auburn, MA

     Asheville Joint Venture          1991       14.46%      CNL Income Fund VIII, Ltd.       Asheville, NC

     CNL Income Fund IV, Ltd., CNL    1996       18.00%      CNL Income Fund IV, Ltd. CNL     Clinton, NC
          Income Fund VI, Ltd.,                              Income Fund X, Ltd.
          CNL Income Fund X, Ltd.,                           CNL Income Fund XIV, Ltd.
          and CNL Income Fund XIV,
          Ltd. Tenants in Common

     CNL Income Fund, Ltd., CNL       1997       23.04%      CNL Income Fund, Ltd.            Vancouver, WA
          Income Fund II, Ltd.,                              CNL Income Fund II, Ltd.
          CNL Income Fund V, Ltd.,                           CNL Income Fund V, Ltd.
          and CNL Income Fund VI,
          Ltd., Tenants in Common

     CNL Income Fund II, Ltd., CNL    1998       34.74%      CNL Income Fund II, Ltd.         Overland Park, KS
          Income Fund III, Ltd.,                             CNL Income Fund III, Ltd.
          and CNL Income Fund VI,
          Ltd., Tenants in Common

     CNL Income Fund II, Ltd., CNL    1998       46.20%      CNL Income Fund II, Ltd.         Memphis, TN
          Income Fund VI, Ltd.,                              CNL Income Fund XVI, Ltd.
          and CNL Income Fund XVI,
          Ltd., Tenants in Common

     Melbourne Joint Venture         1998        50.00%      CNL Income Fund XIV, Ltd.        Melbourne, FL

     CNL Income Fund VI, Ltd., and    1998       85.00%      CNL Income Fund XV, Ltd.         Ft. Myers, FL
          CNL Income Fund XV,
          Ltd., Tenants in Common



<PAGE>


              Entity Name             Year      Ownership               Partners                    Property

     Warren Joint Venture             1998       64.29%      CNL Income Fund IV, Ltd.         Warren, MI

     CNL Income Fund III, Ltd.,       1999       80.00%      CNL Income Fund III, Ltd.        Baytown, TX
          and CNL Income
          Fund VI, Ltd., Tenants
          in Common

     CNL Income Fund VI, Ltd., and    2000       74.00%      CNL Income Fund XIV, Ltd.        Niles, IL
          CNL Income Fund XIV,
          Ltd., Tenants in Common

     CNL Income Fund VI, Ltd., CNL   2001        60.00%      CNL Income Fund IX, Ltd. CNL     Waldorf, MD
          Income Fund IX, Ltd. and                           Income Fund XVII, Ltd.
          CNL Income Fund XVII,
          Ltd., Tenants in Common

     CNL Income Fund VI, Ltd. and     2002       14.20%      CNL Income Fund XI, Ltd.         Universal City, TX
          CNL Income Fund XI,
          Ltd., Tenants in Common

     CNL Income Fund VI, Ltd. and     2002        9.50%      CNL Income Fund XI, Ltd.         Schertz, TX
          CNL Income Fund XI,
          Ltd., Tenants in Common

     CNL Income Fund VI, Ltd.,        2003         25%       CNL Income Fund XI, Ltd.         Dalton, GA
          CNL Income Fund XI,                                CNL Income Fund XV, Ltd.
          Ltd., CNL Income Fund                              CNL Income Fund XVI, Ltd.
          XV, Ltd., and CNL Income
          Fund XVI, Ltd., Tenants
          in Common
</TABLE>

         Each  joint  venture  and  tenancy  in  common  was  formed to hold one
Property.  Each CNL Income Fund is an affiliate of the General Partners and is a
limited partnership  organized pursuant to the laws of the state of Florida. The
Partnership shares management control equally with the affiliates of the General
Partners

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

         Each  joint  venture  has an initial  term of 20 years  and,  after the
expiration of the initial term,  continues in existence from year to year unless
terminated  at the option of either joint  venturer by an event of  dissolution.
Events of dissolution  include the bankruptcy,  insolvency or termination of any
joint  venturer,  sale of the  Property  owned by the joint  venture  and mutual
agreement of the Partnership and its joint venture partner to dissolve the joint
venture.  Any  liquidation  proceeds,  after  paying  joint  venture  debts  and
liabilities and funding reserves for contingent liabilities, will be distributed
first to the joint venture  partners with positive  capital account  balances in
proportion to such balances  until such balances  equal zero,  and thereafter in
proportion  to each joint  venture  partner's  percentage  interest in the joint
venture.


<PAGE>


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

         The Partnership had entered into a joint venture arrangement,  Show Low
Joint Venture,  with CNL Income Fund II, Ltd., a Florida limited partnership and
an affiliate of the General  Partners,  to purchase and hold a Property.  During
2003,  Show Low Joint Venture was liquidated  upon the sale of the Property held
by the joint venture and the net sales  proceeds were  distributed to each joint
venture partner in accordance with the terms of the joint venture agreement.

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

Certain Management Services

         RAI  Restaurants,  Inc.  ("the  Advisor"),  an affiliate of the General
Partners,  provides certain  services  relating to management of the Partnership
and its  Properties  pursuant to a management  agreement  with the  Partnership.
Under this agreement, the Advisor is responsible for collecting rental payments,
inspecting  the  Properties  and the tenants'  books and records,  assisting the
Partnership  in  responding  to tenant  inquiries  and  notices,  and  providing
information  to  the  Partnership  about  the  status  of  the  leases  and  the
Properties.  The Advisor also assists the General  Partners in  negotiating  the
leases.  For these  services,  the  Partnership has agreed to pay the Advisor an
annual fee of one percent of the sum of gross rental  revenues  from  Properties
wholly owned by the Partnership plus the Partnership's  allocable share of gross
revenues of joint ventures in which the Partnership is a co-venturer, but not in
excess  of  competitive  fees for  comparable  services.  Under  the  management
agreement, the management fee is subordinated to receipt by the Limited Partners
of an aggregate, ten percent,  cumulative,  noncompounded annual return on their
adjusted  capital  contributions  (the "10%  Preferred  Return"),  calculated in
accordance   with  the   Partnership's   limited   partnership   agreement  (the
"Partnership  Agreement").  In any year in which the Limited  Partners  have not
received the 10% Preferred Return, no property management fee will be paid.

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

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

Competition

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

Employees

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


Item 2.  Properties

         As of December 31, 2003, the Partnership owned 38 Properties. Of the 38
Properties,  23 are  owned by the  Partnership  in fee  simple,  four are  owned
through  joint  venture  arrangements  and eleven are owned  through  tenancy in
common arrangements.  See Item 1. Business - Joint Venture and Tenancy in Common
Arrangements.  The Partnership is not permitted to encumber its Properties under
the terms of its partnership agreement.

Description of Properties

         Land. The Partnership's  Property sites range from approximately 11,500
to 115,100  square  feet  depending  upon  building  size and local  demographic
factors.  Sites  purchased  by  the  Partnership  are  in  locations  zoned  for
commercial use which have been reviewed for traffic patterns and volume.

         The  following  table lists the  Properties  owned by the  Partnership,
either  directly  or  indirectly  through  joint  venture  or  tenancy in common
arrangements, as of December 31, 2003, by state.

                     State                               Number of Properties

                     Florida                                       7
                     Georgia                                       2
                     Idaho                                         1
                     Illinois                                      2
                     Indiana                                       1
                     Kansas                                        1
                     Maryland                                      1
                     Massachusetts                                 1
                     Michigan                                      2
                     New Mexico                                    1
                     North Carolina                                2
                     Ohio                                          1
                     Oklahoma                                      1
                     Tennessee                                     4
                     Texas                                         8
                     Virginia                                      2
                     Washington                                    1
                                                              -------------
                     TOTAL PROPERTIES                              38
                                                              =============

         Buildings.  Each of the Properties 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  1,200 to 10,700 square feet. All
buildings on Properties are  freestanding and surrounded by paved parking areas.
Buildings are suitable for  conversion to various uses,  although  modifications
may be  required  prior  to use for  other  than  restaurant  operations.  As of
December  31,  2003,  the  Partnership  had  no  plans  for  renovation  of  the
Properties.  Depreciation  expense is computed for  buildings  and  improvements
using the straight-line  method using depreciable lives of 31.5 and 39 years for
federal income tax purposes.

         As of December 31, 2003, the aggregate cost of the Properties  owned by
the Partnership and joint ventures  (including  Properties owned through tenancy
in common  arrangements)  for federal  income tax purposes was  $19,024,266  and
$21,010,256, respectively.



<PAGE>


         The  following  table lists the  Properties  owned by the  Partnership,
either  directly  or  indirectly  through  joint  venture  or  tenancy in common
arrangements, as of December 31, 2003 by Restaurant Chain.

                      Restaurant Chain                  Number of Properties

                      Arby's                                      1
                      Baker's Square                              1
                      Bennigan's                                  2
                      Burger King                                 1
                      Chevy's Fresh Mex                           1
                      Church's                                    2
                      Denny's                                     1
                      Golden Corral                               5
                      Hardee's                                    2
                      IHOP                                        6
                      Jack in the Box                             3
                      KFC                                         2
                      O'Charley's                                 1
                      Shoney's                                    1
                      Taco Bell                                   1
                      Taco Cabana                                 3
                      Waffle House                                3
                      Other                                       2
                                                           -----------------

                      TOTAL PROPERTIES                            38
                                                           =================

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

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

         Leases.   The  Partnership   leases  the  Properties  to  operators  of
Restaurant  Chains.  The leases are generally on a long-term "triple net" basis,
meaning that the tenant is responsible for repairs, maintenance, property taxes,
utilities and insurance.

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

 <c>
                                   2003              2002             2001              2000              1999
                               --------------    -------------    --------------    --------------    --------------

Rental Revenues (1)(2)           $ 3,177,844      $ 3,157,653       $ 3,311,674       $ 3,456,021       $ 3,417,147
Properties (2)                            37               37                38                37                41
Average rent per
    property                       $  85,888        $  85,342         $  87,149         $  93,406         $  83,345
Occupancy Rate                           97%              95%              100%               97%              100%
</TABLE>

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

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



<PAGE>


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

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

              2004                              3                $ 515,141                  16.71%
              2005                              3                  314,800                  10.21%
              2006                             --                       --                      --
              2007                             --                       --                      --
              2008                              4                  183,027                   5.94%
              2009                              2                   91,413                   2.97%
              2010                              5                  350,109                  11.36%
              2011                              2                   27,539                   0.89%
              2012                              1                   54,961                   1.78%
              2013                             --                       --                      --
              Thereafter                       17                1,545,453                  50.14%
                                        ----------            -------------           -------------
              Total (1)                        37              $ 3,082,443                 100.00%
                                        ==========            =============           =============
</TABLE>

(1)      Excludes  one  Property  which was under  construction  at December 31,
         2003.

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

         Golden Corral  Corporation leases five Golden Corral  restaurants.  The
initial term of each lease is 15 years (expiring  between 2004 and 2011) and the
average  minimum  base  annual  rent is  approximately  $152,900  (ranging  from
approximately $88,000 to $185,700).

         IHOP Corp. leases six IHOP restaurants.  The initial term of each lease
is 20 years (expiring between 2017 and 2019) and the average minimum base annual
rent  is  approximately   $138,000  (ranging  from  approximately   $114,500  to
$163,200).


Item 3.  Legal Proceedings

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


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

         Not applicable.




<PAGE>


                                     PART II


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

(a)      As of March 12, 2004,  there were 2,938 holders of record of the Units.
There is no public trading market for the Units,  and it is not anticipated that
a public market for the Units will develop.  During 2003,  Limited  Partners who
wished to sell their Units may have  offered the Units for sale  pursuant to the
Partnership's  distribution reinvestment plan (the "Plan"), and Limited Partners
who wished to have their  distributions used to acquire additional Units (to the
extent Units were  available  for  purchase),  may have done so pursuant to such
Plan. The General  Partners have the right to prohibit  transfers of Units.  The
price paid for any Unit transferred  pursuant to the Plan was $475 per Unit. The
price paid for any Unit transferred  other than pursuant to the Plan was subject
to negotiation by the purchaser and the selling Limited Partner. The Partnership
will not redeem or repurchase Units.

         The following table reflects,  for each calendar quarter, the high, low
and average  sales prices for transfers of Units during 2003 and 2002 other than
pursuant to the Plan, net of commissions.
<TABLE>
<CAPTION>

 <c>
                                              2003 (1)                               2002 (1)
                                 -----------------------------------    -----------------------------------
                                   High         Low        Average        High         Low       Average
                                 ---------    --------    ----------    ---------    --------   -----------
         First Quarter              $ 475        $249         $ 400        $ 500        $305         $ 330
         Second Quarter               475         263           430          366         300           323
         Third Quarter                475         429           457          405         138           292
         Fourth Quarter               475         400           442          404         305           370
</TABLE>

(1)      A total of 872 and 670 Units were  transferred  other than  pursuant to
         the Plan for the years ended December 31, 2003 and 2002, respectively.

         The capital  contribution  per Unit was $500.  All cash  available  for
distribution  will be distributed to the partners  pursuant to the provisions of
the Partnership Agreement.

         For each of the years ended December 31, 2003 and 2002, the Partnership
declared cash distributions of $3,150,000 to the Limited Partners. Distributions
of $787,500  were  declared at the close of each of the  Partnership's  calendar
quarters during 2003 and 2002 to the Limited Partners. No amounts distributed to
partners for the years ended  December 31, 2003 and 2002,  are required to be or
have been  treated by the  Partnership  as a return of capital  for  purposes of
calculating   the   Limited   Partners'   return  on  their   adjusted   capital
contributions.  No distributions have been made to the General Partners to date.
These  amounts  include  monthly  distributions  made in arrears for the Limited
Partners electing to receive distributions on this basis.

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

(b)      Not applicable.



<PAGE>


Item 6.  Selected Financial Data

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

 <c>
                                     2003              2002             2001             2000            1999
                                ----------------  ---------------  ---------------   -------------- ----------------

Year ended December 31:
Continuing Operations (4):
    Revenues                       $  2,236,425     $  2,331,776      $ 2,341,073      $ 2,597,464     $  2,766,803
    Equity in earnings of
      unconsolidated joint
      ventures                          733,125          673,970          987,886          672,749          524,643
    Income from continuing
      operations (1) (2)              2,315,981        2,226,357        2,219,077        2,890,517        3,319,653

Discontinued Operations (4):
    Revenues                             41,884          155,987           99,088          143,463          207,044
    Income (loss) from and
      gain on disposal of
      discontinued operations
      (3)                                41,659          245,959         (185,940 )        126,279          190,821

Net income                            2,357,640        2,472,316        2,033,137        3,016,796        3,510,474

Income (loss) per unit
    Continuing operations            $    33.09       $    31.81        $   31.70        $   41.29       $    47.42
    Discontinued operations                0.59             3.51            (2.66 )           1.81             2.73
                                ----------------  ---------------  ---------------   -------------- ----------------
                                     $    33.68       $    35.32        $   29.04        $   43.10       $    50.15
                                 ================  ===============  ===============   ============== ================
Cash distributions                 $  3,150,000     $  3,150,000      $ 3,150,000      $ 3,150,000      $ 3,150,000
    declared
Cash distributions
   declared per unit                      45.00            45.00            45.00            45.00            45.00


At December 31:
    Total assets                   $ 27,104,531     $ 27,918,964      $28,709,054      $29,820,589     $ 30,120,859
    Total partners' capital          26,235,493       27,027,853       27,705,537       28,822,400       28,955,604
</TABLE>

(1)      Income from  continuing  operations  for the years ended  December  31,
         2002, 2001, and 2000,  includes  provisions for write-down of assets of
         $73,578, $354,295, and $368,430, respectively.

(2)      Income from  continuing  operations  for the years ended  December  31,
         2003,  2000,  and 1999,  includes  gain on casualty loss on building of
         $12,356,  and  gain  on sale  of  assets  of  $639,806,  and  $848,303,
         respectively  and  losses of $2,254  and  $11,897  for the years  ended
         December 31, 2003 and 2001, respectively.

(3)      Income (loss) from and gain on disposal of discontinued  operations for
         the year ended  December  31, 2002  includes  gain on sale of assets of
         $234,297.

(4)      Certain items in the prior years' financial data have been reclassified
         to conform to the 2003  presentation.  These  reclassifications  had no
         effect on net income. The results of operations  relating to properties
         that  were  identified  for  sale as of  December  31,  2001  but  sold
         subsequently  are  reported as  continuing  operations.  The results of
         operations  relating to properties that were either identified for sale
         and disposed of  subsequent  to January 1, 2002 or were  classified  as
         held for sale as of  December  31, 2003 are  reported  as  discontinued
         operations for all periods presented.




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

         The  Partnership was organized on August 17, 1988, 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,  which are leased  primarily to operators of
Restaurant Chains. The leases are generally  triple-net leases, with the lessees
responsible  for all repairs and  maintenance,  property  taxes,  insurance  and
utilities.  The leases of the Properties  provide for minimum base annual rental
amounts (payable in monthly  installments) ranging from approximately $39,500 to
$246,400.  Generally,  the leases provide for percentage  rent based on sales in
excess of a specified  amount.  In addition,  some of the leases  provide  that,
commencing  in the fourth to sixth lease year,  the  percentage  rent will be an
amount equal to the greater of the percentage  rent  calculated  under the lease
formula or a  specified  percentage  (ranging  from one to five  percent) of the
purchase price or gross sales.

         As of December 31, 2001, the Partnership  owned 24 Properties  directly
and 14  Properties  indirectly  through  joint  venture  or  tenancy  in  common
arrangements.  As of December  31, 2002,  the  Partnership  owned 24  Properties
directly and 15 Properties indirectly through joint venture or tenancy in common
arrangements.  As of December  31, 2003,  the  Partnership  owned 23  Properties
directly and 15 Properties indirectly through joint venture or tenancy in common
arrangements.

Capital Resources

         Cash  from  operating  activities  was  $2,762,018,   $3,071,594,   and
$2,900,366,   during  the  years  ended  December  31,  2003,  2002,  and  2001,
respectively.  The decrease in cash from  operating  activities  during the year
ended  December  31, 2003 was a result of changes in the  Partnership's  working
capital,  such as the  timing of  transactions  relating  to the  collection  of
receivables and the payment of expenses and changes in income and expenses, such
as  changes in rental  income and  changes in  operating  and  Property  related
expenses.  The increase in cash from operating  activities during the year ended
December 31, 2002 was a result of changes in the Partnership's  working capital,
such as the timing of transactions relating to the collection of receivables and
the payment of expenses.

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

         In May 2001, the Partnership sold its Property in Chester, Pennsylvania
to a third party and received net sales proceeds of approximately  $83,000.  The
Partnership  had  previously  recorded  provisions  for  write-down of assets of
approximately   $368,400  in  a  prior  year  relating  to  this  Property.  The
Partnership  recorded  an  additional  loss of  approximately  $14,000  when the
Property was sold in 2001.

         In January 2001,  the  Partnership  invested a portion of the net sales
proceeds  from the 2000 sales of several  Properties,  in a Property  in Burley,
Idaho and one in Cleburne, Texas. The Partnership acquired these Properties from
CNL Funding 2001-A,  LP, a Delaware limited  partnership and an affiliate of the
General  Partners.  CNL Funding 2001-A,  LP had purchased and  temporarily  held
title to the Properties in order to facilitate the acquisition of the Properties
by the Partnership.  The purchase price paid by the Partnership  represented the
costs incurred by CNL Funding 2001-A, LP to acquire and carry the Properties.

         During  2001,  the  Partnership  and  CNL  Income  Fund  XI,  Ltd.,  as
tenants-in-common,  sold the  Property in Round Rock,  Texas,  and  received net
sales  proceeds  of  approximately  $1,510,700,  resulting  in a  gain,  to  the
tenancy-in-common,   of  approximately   $123,900.   The  Partnership   received
approximately $1,156,300 as a liquidating distribution for its pro-rata share of
the net sales proceeds.  The Partnership  owned a 77% interest in this Property.
During 2001,  the  Partnership  reinvested  the majority of these  proceeds in a
Property in Houston,  Texas.  The  Partnership  acquired  this Property from CNL
Funding  2001-A,  LP, a Delaware  limited  partnership  and an  affiliate of the
General  Partners.  CNL Funding 2001-A,  LP had purchased and  temporarily  held
title to the Property in order to facilitate the  acquisition of the Property by
the  Partnership.  The purchase price paid by the  Partnership  represented  the
costs incurred by CNL Funding 2001-A, LP to acquire and carry the Property.

         During  2001,  the  Partnership  and  CNL  Income  Fund  IX,  Ltd.,  as
tenants-in-common,  sold the  Property in Dublin,  California,  and received net
sales  proceeds  of  approximately  $1,699,600,  resulting  in a  gain,  to  the
tenancy-in-common,   of  approximately   $158,100.   The  Partnership   received
approximately $1,273,800 as a liquidating distribution for its pro-rata share of
the net sales proceeds.  The Partnership  owned a 75% interest in this Property.
During  2001,  the  Partnership  reinvested  these  proceeds  and the net  sales
proceeds from the sale of the Property in Chester, Pennsylvania in a Property in
Waldorf,  Maryland, as tenants-in-common,  with CNL Income Fund IX, Ltd. and CNL
Income Fund XVII,  Ltd.,  each of which is an affiliate of the General  Partners
and a Florida limited  partnership.  The Partnership and the affiliates  entered
into an agreement whereby each co-tenant will share in the profits and losses of
the  Property  in  proportion  to  its  applicable   percentage  interest.   The
Partnership  contributed  approximately  $1,368,300 to acquire the Property. The
Partnership owns a 60% interest in the profits and losses of the Property.

         During 2001,  the  Partnership  entered in a  promissory  note with the
corporate General Partner for a loan in the amount of $75,000 in connection with
the operations of the Partnership.  The loan was uncollateralized,  non-interest
bearing and due on demand.  As of December 31, 2001, the  Partnership had repaid
the loan in full to the corporate General Partner.

         During  2001,  the  Partnership  also sold its  Property  in  Cheyenne,
Wyoming  to a third  party and  received  net sales  proceeds  of  approximately
$290,800,  resulting  in a  gain  of  approximately  $2,100.  During  2002,  the
Partnership  reinvested a portion of these net sales  proceeds and the remaining
proceeds  from the 2001 sale of the Property in Round Rock,  Texas in a Property
in Universal City,  Texas and a Property in Schertz,  Texas,  each as a separate
tenants-in-common arrangement with CNL Income Fund XI, Ltd., an affiliate of the
General  Partners.  Each  co-tenant will share in the profits and losses of each
property in proportion to its applicable  percentage  interest.  The Partnership
contributed approximately $148,500 and $98,900 for a 14.2% and 9.5% interest, in
the Properties in Universal City, Texas and Schertz,  Texas,  respectively.  The
Partnership  and CNL Income Fund XI, Ltd.  acquired  Properties from CNL Funding
2001-A,  LP, an affiliate of the General  Partners.  CNL Funding 2001-A,  LP had
purchased and  temporarily  held title to the  Properties in order to facilitate
the  acquisition  of the Properties by the  Partnership  and CNL Income Fund XI,
Ltd. The purchase  prices paid by the  Partnership  and CNL Income Fund XI, Ltd.
represented  the costs incurred by CNL Funding  2001-A,  LP to acquire and carry
the Properties.

         During  2002,  Caro Joint  Venture,  in which the  Partnership  owned a
66.14% interest and accounted for under the consolidation  method,  entered into
an agreement with a third party to sell its Property in Caro,  Michigan.  During
2002,  the joint venture sold this  property and received net sales  proceeds of
approximately  $600,000,  resulting in a gain on sale of assets of approximately
$216,100  to the joint  venture.  As a result of the sale of the  Property,  the
joint venture was dissolved in accordance  with the joint venture  agreement and
the Partnership received  approximately $441,100 representing its pro-rata share
of liquidating  distributions from the joint venture and recorded a gain on sale
of  discontinued  operations  of  approximately  $18,200  during  the year ended
December 31, 2002.

         During 2002,  the  building on the  Property in  Marietta,  Georgia was
destroyed by fire and the tenant  terminated its lease relating to the Property.
In March 2003, the  Partnership  collected  approximately  $590,100 in insurance
proceeds relating to this Property, resulting in a gain of approximately $12,400
during 2003. In November  2003,  the  Partnership  reinvested a portion of these
proceeds in a Property  in Dalton,  Georgia  with CNL Income  Fund XI, Ltd,  CNL
Income Fund XV, Ltd., and CNL Income Fund XVI, Ltd., as  tenants-in-common.  The
Partnership and affiliates  entered into an agreement  whereby each  co-venturer
will  share in the  profits  and losses of the  property  in  proportion  to its
applicable percentage interest.  The Partnership  contributed $475,000 for a 25%
interest in the Property.

         During  2003,  the  Partnership  sold its  Property  in  Broken  Arrow,
Oklahoma,  to a third party and  received  net sales  proceeds of  approximately
$472,400,  resulting in no gain or loss on disposal of  discontinued  operations
during 2003. The Partnership had recorded provisions for write-down of assets in
previous years relating to this asset. The Partnership intends to reinvest these
proceeds in an additional  Property or to pay  liabilities of the Partnership as
needed.

         In  addition,  during  2003,  Show Low  Joint  Venture,  in  which  the
Partnership  owned a 36%  interest,  sold  its  Property  in  Greensboro,  North
Carolina  to a third party and  received  net sales  proceeds  of  approximately
$468,900, resulting in a loss to the joint venture of approximately $29,500. The
joint venture had recorded  provisions for write-down of assets relating to this
Property in previous  periods.  In the fourth quarter of 2003,  the  Partnership
received  approximately  $189,200  as its  pro-rata  share  of  the  liquidating
distribution  from the  joint  venture.  The  Partnership  intends  to use these
proceeds to either invest in an additional  Property or pay  liabilities  of the
Partnership.

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

         At December 31, 2003, the Partnership  had $1,557,186  invested in cash
and cash  equivalents,  as  compared to  $1,168,450  at December  31,  2002.  At
December  31,  2003,  these  funds  were  held in  demand  deposit  accounts  at
commercial  banks.  The  increase  in cash and cash  equivalents  was due to the
Partnership  holding the sales  proceeds  from the 2003 sale of the  Property in
Broken Arrow, Oklahoma and the liquidating proceeds received from Show Low Joint
Venture. As of December 31, 2003, the average interest rate earned on the rental
income  deposited in demand deposit  accounts at commercial  banks was less than
one percent annually. The funds remaining at December 31, 2003, after payment of
distributions  and other  liabilities,  will be used to invest in an  additional
Property or to meet the Partnership's working capital needs.

Short-Term Liquidity

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

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

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

         Due to low  operating  expenses  and  ongoing  cash flow,  the  General
Partners do not believe that  working  capital  reserves  are  necessary at this
time. In addition,  because the 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 purposes,  the General Partners will
contribute to the  Partnership  an aggregate  amount of up to one percent of the
offering proceeds for maintenance and repairs.

         The Partnership  generally  distributes cash from operations  remaining
after the payment of the operating  expenses of the  Partnership,  to the extent
that  the  General  Partners   determine  that  such  funds  are  available  for
distribution.  Based on current and anticipated future cash from operations, the
Partnership  declared  distributions  to the Limited  Partners of $3,150,000 for
each of the years ended  December  31, 2003,  2002,  and 2001.  This  represents
distributions  of $45.00 per Unit for each of the years ended December 31, 2003,
2002, and 2001. No  distributions  were made to the General  Partners during the
years ended  December 31, 2003,  2002,  and 2001. No amounts  distributed to the
Limited  Partners for the years ended  December 31, 2003,  2002,  and 2001,  are
required to be or have been  treated by the  Partnership  as a return of capital
for  purposes of  calculating  the Limited  Partners'  return on their  adjusted
capital contributions. The Partnership intends to continue to make distributions
of cash available for distribution to the Limited Partners on a quarterly basis.

         During 2000, the General  Partners waived their right to receive future
distributions  from the Partnership,  including both  distributions of operating
cash flow and  distributions  of  liquidation  proceeds,  to the extent that the
cumulative amount of such distributions  would exceed the balance in the General
Partners'  capital  account as of December  31, 1999.  Accordingly,  the General
Partners were not  allocated any net income during the years ended  December 31,
2003, 2002, and 2001.

         As of December  31, 2003 and 2002,  the  Partnership  owed  $12,517 and
$14,423,  respectively,  to affiliates for operating expenses and accounting and
administrative  services.  As of March 12, 2004, the  Partnership had reimbursed
the affiliates for these amounts.  Other  liabilities,  including  distributions
payable, were $856,521 at December 31, 2003, as compared to $876,688 at December
31, 2002. The General  Partners believe that the Partnership has sufficient cash
on hand to meet its current working capital needs.



Off-Balance Sheet Transactions

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

Contractual Obligations, Contingent Liabilities, and Commitments

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

Long-Term Liquidity

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

Critical Accounting Policies

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

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

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

         Effective  January  1,  2002,  the  Partnership  adopted  Statement  of
Financial  Accounting  Standards  No.  144  "Accounting  for the  Impairment  or
Disposal of Long-Lived  Assets."  Accordingly,  when the  Partnership  makes the
decision  to sell or commits to a plan to sell a Property  within one year,  its
operating results are reported as discontinued operations.

Results of Operations

Comparison of year ended December 31, 2003 to year ended December 31, 2002

         Rental revenues from continuing  operations were $2,079,638  during the
year ended  December 31, 2003, as compared to $2,190,267  during the same period
of 2002.  Rental  revenues  from  continuing  operations  were lower during 2003
because the Partnership  stopped  recording rental revenues in October 2002 when
the building on the Property in Marietta,  Georgia was destroyed by fire and the
tenant  terminated  the lease  relating to this  Property.  In March  2003,  the
Partnership received approximately $590,100 in insurance proceeds and used these
proceeds to invest in a Property in Dalton,  Georgia, as tenants-in-common  with
affiliates of the General  Partners,  as described above. In September 2003, the
Partnership  entered  into a new lease,  with a new tenant,  for the Property in
Marietta,  Georgia. The lease terms for this Property are substantially the same
as the  Partnership's  other leases.  In connection with the new lease,  the new
tenant has agreed to construct a new building on the Property.  Construction  of
the  building is expected to be completed  early in 2004,  at which point rental
payments are expected to commence.

         During  2002,  a tenant,  Loco  Lupe's of  Hermitage,  Inc.,  filed for
Chapter 11 bankruptcy protection. Although the tenant had affirmed the one lease
it has with the  Partnership,  the tenant  stopped  making  rental  payments  in
September  2003. The lost revenues will have an adverse effect on the results of
operations  of the  Partnership  if the  Partnership  is unable to re-lease  the
Property in a timely manner.

         In December 2003,  Waving  Leaves,  Inc., the tenant of the Property in
Waynesburg,  Ohio filed for Chapter 11 bankruptcy  protection.  While the tenant
has  neither  rejected  nor  affirmed  the  lease  one  lease  it has  with  the
Partnership,  there can be no  assurance  that the lease will not be rejected in
the future.  As of March 12,  2004,  the  Partnership  has  received  all rental
payments  relating to this lease.  The lost  revenues  that would  result if the
tenant  rejects  this  lease  will  have an  adverse  effect on the  results  of
operations of the  Partnership  if the  Partnership  is not able to re-lease the
Property in a timely manner.

         The Partnership also earned $154,154 in contingent rental income during
the year ended December 31, 2003, as compared to $131,860 during the same period
of 2002.  The increase in  contingent  rental  income  during 2003 was due to an
increase in reported gross sales of the restaurants with leases that require the
payment of contingent rental income during 2003, as compared to 2002.

         The Partnership also earned $733,125  attributable to net income earned
by  unconsolidated  joint  ventures  during the year ended December 31, 2003, as
compared to $673,970  during the same period of 2002. Net income earned by joint
ventures was lower during  2002,  because  Houlihan's  Restaurant,  Inc.,  which
leased the Property  owned by Show Low Joint  Venture,  filed for bankruptcy and
rejected the lease  relating to this Property in January 2002. As a result,  the
joint venture, in which the Partnership owned a 36% interest,  stopped recording
rental  revenues  relating to this  Property.  In addition,  during the 2003 and
2002,  Show Low Joint Venture  recorded  provisions  for write-down of assets of
approximately $55,500 and $172,200,  respectively relating to this Property. The
provisions  represented the difference between the Property's net carrying value
and its estimated  fair value.  In September  2003,  the joint venture sold this
vacant  Property to a third party and recorded an additional loss on disposal of
discontinued assets of approximately $29,500. In the fourth quarter of 2003, the
joint venture was liquidated and the Partnership  recorded a loss on dissolution
of joint ventures of approximately  $2,300.  The Partnership  intends to use the
liquidating  proceeds it received to either invest in another Property or to pay
liabilities  of  the   Partnership.   The  decrease  in  net  income  earned  by
unconsolidated  joint  ventures  was  partially  offset  by the  fact  that  the
Partnership  acquired one Property in November  2003 and two  Properties in June
2002, each as a separate  tenancy in common  arrangement  with affiliates of the
General Partners, as described above.

         In  October  2003,  Chevy's,  Inc.,  the  tenant  of  the  Property  in
Vancouver,  Washington  which the  Partnership  owns as  tenants-in-common  with
affiliated of the General Partners,  filed for Chapter 11 bankruptcy protection.
The Partnership  owns a 23.04%  interest in this Property.  While the tenant has
neither  rejected nor affirmed the lease one lease it has with the  Partnership,
there can be no assurance that the lease will not be rejected in the future. The
lost  revenues  that would  result if the tenant  were to reject this lease will
have an  adverse  effect on the  equity in  earnings  of joint  ventures  of the
Partnership  if the tenancy in common is not able to re-lease  the Property in a
timely manner.

         During 2003, two lessees of the Partnership and its consolidated  joint
venture,  Golden Corral Corporation and IHOP Properties,  Inc., each contributed
more than ten  percent  of the  Partnership's  rental  revenues  (including  the
Partnership's  share  of the  rental  revenues  from  the  Properties  owned  by
unconsolidated  joint ventures and the Properties  owned with  affiliates of the
General Partners as  tenants-in-common).  As of December 31, 2003, Golden Corral
Corporation  was the lessee under leases  relating to five  restaurants and IHOP
Properties,  Inc. was the lessee under leases relating to six restaurants. It is
anticipated  that, based on the minimum rental payments  required by the leases,
these two lessees each will continue to contribute  more than ten percent of the
Partnership's  rental  revenues in 2004.  In addition,  two  Restaurant  Chains,
Golden  Corral,  and  IHOP,  each  accounted  for more than ten  percent  of the
Partnership's  rental revenues in 2003 (including the Partnership's share of the
rental revenues from the Properties  owned by  unconsolidated  joint ventures in
which the Partnership is a co-venturer and the Properties  owned with affiliates
of the General Partners as  tenants-in-common).  In 2004, it is anticipated that
these two  Restaurant  Chains  each will  continue  to account for more than ten
percent of the rental  revenues to which the  Partnership  is entitled under the
terms of the leases.  Any  failure of these  lessees or  Restaurant  Chains will
materially affect the Partnership's  operating results if the Partnership is not
able to re-lease the Properties in a timely manner.

         Operating expenses, including depreciation and amortization expense and
provision for write-down of assets, were $663,671 during the year ended December
31,  2003,  as compared to  $779,389  during the same period of 2002.  Operating
expenses were higher during 2002,  because the Partnership  elected to reimburse
the  tenant of the  Properties  in El Paso,  and  Amarillo,  Texas  for  certain
renovation costs. In addition,  depreciation  expense decreased during 2003 as a
result of the building on the Property in Marietta,  Georgia being  destroyed by
fire in October 2002. The decrease in operating expenses was partially offset by
an  increase  in state  tax  expense  relating  to  several  states in which the
Partnership  conducts  business.  During 2002 and 2003 the Partnership  incurred
certain property related expenses,  such as legal fees, repairs and maintenance,
insurance and real estate taxes relating to vacant Properties.  In May 2002, the
Partnership assigned the lease relating to one of the two vacant Properties to a
new tenant.  The Partnership did not incur any additional  expenses  relating to
this Property after the assignment of the lease had occurred. In September 2003,
the Partnership  entered into a new lease for the remaining vacant Property,  as
described above. The new tenant is responsible for real estate taxes, insurance,
and  maintenance  relating to the Property in  accordance  with the terms of its
lease;  therefore,  the General  Partners do not anticipate the Partnership will
incur these expenses for this Property in the future.

         In March 2003, the Partnership  received insurance proceeds relating to
the Property in Marietta, Georgia that was destroyed by fire in October 2002, as
described above. As a result,  the Partnership  recorded a gain of approximately
$12,400 during the year ended December 31, 2003.

         During the year ended December 31, 2002, the Partnership identified and
sold one Property, owned by Caro Joint Venture, in which the Partnership owned a
66.14%  interest and  accounted  for under the  consolidation  method,  that was
classified as Discontinued  Operations in the accompanying financial statements.
In addition,  in January 2003, the Partnership  identified for sale its Property
in Broken Arrow,  Oklahoma. The Partnership recognized net rental income (rental
revenues  less  Property  related  expenses)  of $106,978  during the year ended
December  31,  2002,  relating  to  these  two  Properties.  In June  2003,  the
Partnership sold the Property in Broken Arrow,  Oklahoma and recorded no gain or
loss on  disposal of  discontinued  operations.  The  Partnership  had  recorded
provisions for write-down of assets in previous years relating to this Property,
including  approximately  $32,900  during the year ended  December 31, 2002. The
Partnership  recognized  net  rental  income of  $41,659  during  the year ended
December 31, 2003, relating to this Property.

         In September  2003,  Show Low Joint Venture,  in which the  Partnership
owned a 36%  interest,  sold its  Property in  Greensboro,  North  Carolina,  as
described above. The financial results relating to this Property were classified
as Discontinued Operations in the combined,  condensed financial information for
the joint ventures and the properties held as tenants-in-common  with affiliates
reported  in  the  footnotes  to  the  accompanying  financial  statements.  The
Partnership's pro-rata share of these amounts was included in equity in earnings
of unconsolidated joint ventures in the accompanying financial statements.

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

         Rental revenues from continuing  operations were $2,190,267  during the
year ended  December 31, 2002, as compared to $2,110,811  for the same period of
2001. Rental revenues from continuing operations increased during the year ended
December 31, 2002,  because during 2001 the Partnership  reinvested a portion of
the net sales proceeds from the sales of several  Properties in three additional
Properties.

         Phoenix  Restaurant  Group,  Inc.  ("PRG"),  the  tenant  of two of the
Partnership's  Properties,  experienced financial difficulties during 2000. As a
result,  during 2001, the Partnership  stopped recording rental revenue relating
to two Properties. In October 2001, PRG filed for bankruptcy and rejected one of
the two leases it had with the  Partnership.  In December 2001, the  Partnership
sold the vacant Property, and reinvested the net sales proceeds in an additional
Property.  Rental  revenues  were  higher  during  2002  partially  because  the
Partnership  received rental payments  relating to the one Property not rejected
by the tenant after the bankruptcy  date. In May 2002, the Partnership  assigned
the lease relating to the one Property not rejected by PRG to a new tenant;  all
lease terms remained the same.

         The increase in rental revenues from continuing  operations during 2002
was partially offset by the fact that in October 2002, the Property in Marietta,
Georgia was destroyed by fire and the tenant  terminated  its lease  relating to
this Property. During 2003, the Partnership entered into a new lease, with a new
tenant, as described above.

         The Partnership also earned $131,860 in contingent rental income during
the year ended December 31, 2002, as compared to $149,069 during the same period
of 2001.  Contingent  rental income was higher during 2001 due to an increase in
reported gross sales of the restaurants  with leases that require the payment of
contingent rental income during 2001, as compared to 2002.

         The Partnership  earned $673,970,  attributable to net income earned by
unconsolidated  joint  ventures  during the year ended  December  31,  2002,  as
compared to $987,886  during the same period of 2001. Net income earned by joint
ventures was higher  during 2001  because  during 2001 the  Partnership  and CNL
Income  Fund IX,  Ltd.,  as  tenants-in-common,  sold the  Property  in  Dublin,
California, in which the Partnership owned a 75% interest. The tenancy in common
recognized a gain of  approximately  $158,000 during 2001 relating to this sale.
In  addition,  during  2001 the  Partnership  and CNL Income Fund XI,  Ltd.,  as
tenants-in-common,  sold  the  Property  in Round  Rock,  Texas,  in  which  the
Partnership  owned a 77%  interest.  The tenancy in common  recognized a gain of
approximately $123,900 during 2001 relating to this sale. Each tenancy in common
distributed to the Partnership its pro-rata share of the net sales proceeds from
the respective sales as a liquidating distribution. During 2001, the Partnership
reinvested  a  portion  of these  liquidating  distributions  in a  Property  in
Waldorf,  Maryland,  as tenants-in-common  with CNL Income Fund IX, Ltd. and CNL
Income Fund XVII, Ltd. During 2002, the Partnership  reinvested a portion of the
net sales  proceeds  from the 2001  sales of two  Properties  in two  additional
Properties,  each as tenants-in-common  with CNL Income Fund XI, Ltd. Net income
earned by joint  ventures was lower during 2002 because  Houlihan's  Restaurant,
Inc.,  which  leased the  Property  owned by Show Low Joint  Venture,  filed for
bankruptcy and rejected the lease relating to this Property, as described above.

         The  Partnership  earned $9,649 in interest and other income during the
year ended  December 31, 2002, as compared to $81,193  during the same period of
2001.  Interest  and other income was higher  during 2001 due to higher  average
cash balances as a result of net sales proceeds  being held in interest  bearing
accounts until they were reinvested in additional  Properties and higher average
interest rates during 2001.

         Operating expenses, including depreciation and amortization expense and
provision for write-down of assets were $779,389  during the year ended December
31, 2002,  as compared to $1,097,985  during the same period of 2001.  Operating
expenses were higher during 2001 because the Partnership recorded provisions for
doubtful  accounts of  approximately  $11,500,  relating to a Property leased by
PRG.  During 2001, the  Partnership  also recorded a provision for write-down of
assets of  approximately  $354,300  relating  to this  Property.  The  provision
represented  the  difference  between the  Property's net carrying value and its
estimated fair value. During 2002, the Partnership also recorded a provision for
write-down  of assets of  approximately  $73,600  relating  to the  Property  in
Marietta,  Georgia which was destroyed by fire.  The provision  represented  the
difference  between the Property's  net carrying  value and its fair value.  The
Partnership also incurred Property related expenses, such as legal fees, repairs
and  maintenance,  insurance  and  real  estate  taxes  relating  to the  vacant
Properties.  In December 2001 the Partnership sold one of its two PRG Properties
and in May 2002 the Partnership assigned the lease relating to the remaining PRG
Property to a new tenant. The Partnership did not incur any additional  expenses
relating to these  Properties  after the sale of the Property and the assignment
of the lease had occurred. During 2003, the Partnership entered into a new lease
with a new tenant for the Property in Marietta, Georgia.

         Operating  expenses  were lower  during  2002  because of a decrease in
state tax  expense  and a  decrease  in the costs  incurred  for  administrative
expenses for  servicing  the  Partnership  and its  Properties.  The decrease in
operating  expenses  during  2002 was  offset  by the  Partnership  electing  to
reimburse  the  tenant  of the  Properties  in El Paso and  Amarillo,  Texas for
certain renovation costs.

         As a result of the sale of the Property in Chester,  Pennsylvania,  the
Partnership  recognized a loss on sale of assets of approximately $12,000 during
the year ended December 31, 2001.  Because this Property was identified for sale
prior to the January 2002  implementation  of Statement of Financial  Accounting
Standards  No. 144  "Accounting  for the  Impairment  or Disposal of  Long-Lived
Assets," the results of  operations  relating to this  Property were included as
Income from Continuing Operations in the accompanying financial statements.

         During the year ended December 31, 2002, the Partnership identified and
sold one Property, owned by Caro Joint Venture, in which the Partnership owned a
66.14%  interest and  accounted  for under the  consolidation  method,  that was
classified as Discontinued  Operations in the accompanying financial statements.
In addition,  in January 2003, the Partnership  identified for sale its Property
in Broken Arrow,  Oklahoma. The Partnership recognized net rental income (rental
revenues  less Property  related  expenses) of $106,978 and a net rental loss of
$162,939  during  the years  ended  December  31,  2002 and 2001,  respectively,
relating to these two Properties.  The net rental loss during 2001 was primarily
a result of the  Partnership  recording a provision for  write-down of assets of
approximately  $210,800 relating to the Property in Broken Arrow,  Oklahoma. The
provision  represented the difference  between the Property's net carrying value
and its estimated fair value. In June 2003, the  Partnership  sold this Property
and recorded no gain or loss on disposal of discontinued operations.

         In September  2003,  Show Low Joint Venture,  in which the  Partnership
owned a 36%  interest,  sold its  Property in  Greensboro,  North  Carolina,  as
described above. The financial results relating to this Property were classified
as Discontinued Operations in the combined,  condensed financial information for
the joint ventures and the properties held as tenants-in-common  with affiliates
reported  in  the  footnotes  to  the  accompanying  financial  statements.  The
Partnership's pro-rata share of these amounts was included in equity in earnings
of unconsolidated joint ventures in the accompanying financial statements.

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

         The  Partnership's  leases  as of  December  31,  2003,  are  generally
triple-net  leases and  contain  provisions  that the General  Partners  believe
mitigate  the adverse  effect of  inflation.  Such  provisions  include  clauses
requiring the payment of percentage rent based on certain restaurant sales above
a specified  level and/or  automatic  increases in base rent at specified  times
during the term of the lease.  Inflation,  overall,  has had a minimal effect on
the results of  operations  of the  Partnership.  Continued  inflation may cause
capital  appreciation of the  Partnership's  Properties.  Inflation and changing
prices, however, also may have an adverse impact on the sales of the restaurants
and on potential capital appreciation of the Properties.

         In January 2003,  the Financial  Accounting  Standards  Board  ("FASB")
issued  FASB  Interpretation  No.  46 ("FIN  46"),  "Consolidation  of  Variable
Interest Entities" to expand upon and strengthen  existing  accounting  guidance
that  addresses  when a company  should  include  the  assets,  liabilities  and
activities of another entity in its financial  statements.  To improve financial
reporting by companies involved with variable interest entities, FIN 46 requires
that a variable  interest entity be consolidated by a company if that company is
subject  to a  majority  risk  of  loss  from  the  variable  interest  entity's
activities or entitled to receive a majority of the entity's residual returns or
both.  Prior to FIN 46, a  company  generally  included  another  entity  in its
consolidated  financial  statements  only if it  controlled  the entity  through
voting interests.  In December 2003, the FASB issued FASB Interpretation No. 46R
("FIN 46R"), to clarify some of the provisions of FIN 46. Under FIN 46R, special
effective date provisions apply to entities that have fully or partially applied
FIN 46  prior  to  issuance  of FIN 46R.  Otherwise,  application  of FIN 46R is
required in  financial  statements  of public  entities  that have  interests in
structures that are commonly referred to as special-purpose entities for periods
ending after December 15, 2003. Application by public entities, other than small
business issuers,  for all other types of variable interest entities is required
in financial statements for periods ending after March 15, 2004. The Partnership
did not fully or partially  apply FIN 46 prior to the issuance of FIN 46R. Also,
the Partnership  does not have interests in structures  commonly  referred to as
special-purpose entities.  Therefore,  application of FIN 46R is required in the
Partnership's  financial statements for periods ending after March 15, 2004. The
General  Partners  believe  adoption  of this  standard  may  result  in  either
consolidation  or  additional  disclosure   requirements  of  the  Partnership's
unconsolidated  joint  ventures,  which are  currently  accounted  for under the
equity method.  However,  such  consolidation  is not expected to  significantly
impact the Partnership's results of operations.


Item 7A. Quantitative and Qualitative Disclosures About Market Risk

         Not applicable.


Item 8.  Financial Statements and Supplementary Data


<PAGE>




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

                                    CONTENTS







                                                                     Page

Report of Independent Certified Public Accountants                    20

Financial Statements:

     Balance Sheets                                                   21

     Statements of Income                                             22

     Statements of Partners' Capital                                  23

     Statements of Cash Flows                                      24-25

     Notes to Financial Statements                                 26-39







<PAGE>












               Report of Independent Certified Public Accountants





To the Partners
CNL Income Fund VI, Ltd.


In our opinion,  the accompanying  balance sheets and the related  statements of
income,  of partners'  capital and of cash flows present fairly, in all material
respects,  the financial position of CNL Income Fund VI, Ltd. (a Florida limited
partnership)  at December 31, 2003 and 2002,  and the results of its  operations
and its cash flows for each of the three years in the period ended  December 31,
2003 in conformity with accounting  principles  generally accepted in the United
States  of  America.  In  addition,  in our  opinion,  the  financial  statement
schedules listed in the index appearing under item 15(a)(2)  present fairly,  in
all  material  respects,   the  information  set  forth  therein  when  read  in
conjunction with the related financial  statements.  These financial  statements
and financial  statement  schedules are the  responsibility of the Partnership's
management;  our  responsibility  is to express  an  opinion on these  financial
statements and financial  statement  schedules based on our audits. We conducted
our audits of these statements in accordance with auditing  standards  generally
accepted in the United States of America, which require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence  supporting the amounts and  disclosures  in the financial  statements,
assessing the  accounting  principles  used and  significant  estimates  made by
management,  and evaluating the overall  financial  statement  presentation.  We
believe that our audits provide a reasonable basis for our opinion.

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



/s/PricewaterhouseCoopers LLP


Orlando, Florida
March 24, 2004





<PAGE>

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

                                 BALANCE SHEETS

<TABLE>
<CAPTION>

 <c>
                                                                                              December 31,
                                                                                   2003                        2002
                                                                             ------------------         --------------------

                            ASSETS

Real estate properties with operating leases, net                                $  14,355,664                $  14,701,960
Net investment in direct financing leases                                            1,777,315                    1,835,770
Real estate held for sale                                                                   --                      472,425
Investment in joint ventures                                                         8,674,222                    8,483,605
Cash and cash equivalents                                                            1,557,186                    1,168,450
Receivables, less allowance for doubtful accounts of  $27,488
      and $9,774, respectively                                                         144,162                      676,352
Due from related parties                                                                    --                          109
Accrued rental income, less allowance for doubtful accounts
      of $9,697 in 2003 and 2002                                                       564,672                      550,037
Other assets                                                                            31,310                       30,256
                                                                             ------------------         --------------------

                                                                                 $  27,104,531                $  27,918,964
                                                                             ==================         ====================

              LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses                                              $     6,698                 $     34,851
Real estate taxes payable                                                               14,220                       13,010
Distributions payable                                                                  787,500                      787,500
Due to related parties                                                                  12,517                       14,423
Rents paid in advance                                                                   48,103                       41,327
                                                                             ------------------         --------------------
        Total liabilities                                                              869,038                      891,111


Partners' capital                                                                   26,235,493                   27,027,853
                                                                             ------------------         --------------------

                                                                                 $  27,104,531                $  27,918,964
                                                                             ==================         ====================

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


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

                              STATEMENTS OF INCOME

<TABLE>
<CAPTION>

 <c>
                                                                               Year Ended December 31,
                                                                      2003                2002               2001
                                                                ------------------   ---------------    ---------------

Revenues:
     Rental income from operating leases                            $  1,876,996       $ 1,977,189        $ 1,915,760
     Earned income from direct financing leases                          202,642           213,078            195,051
     Contingent rental income                                            154,154           131,860            149,069
     Interest and other income                                             2,633             9,649             81,193
                                                                ---------------      ---------------    ---------------
                                                                       2,236,425         2,331,776          2,341,073
                                                                ------------------   ---------------    ---------------
Expenses:
     General operating and administrative                                242,878           251,161            291,725
     Property related                                                     26,765            60,483             37,881
     Provision for doubtful accounts                                          --                --             11,483
     State and other taxes                                                46,080            28,513             42,557
     Depreciation and amortization                                       347,948           365,654            360,044
     Provision for write-down of assets                                       --            73,578            354,295
                                                                ------------------   ---------------    ---------------
                                                                         663,671           779,389          1,097,985
                                                                ------------------   ---------------    ---------------

Income before gain (loss) on sale of assets and equity in
     earnings of unconsolidated joint ventures                         1,572,754         1,552,387          1,243,088

Gain (loss) on sale of assets                                             10,102                --            (11,897   )

Equity in earnings of unconsolidated joint ventures                      733,125           673,970            987,886
                                                                 ---------------     ---------------    ---------------

Income from continuing operations                                      2,315,981         2,226,357          2,219,077
                                                                ------------------   ---------------    ---------------

Discontinued operations:
     Income (loss) from discontinued operations                           41,659            11,662           (185,940   )
     Gain on disposal of discontinued operations                              --           234,297                 --
                                                                ------------------   ---------------    ---------------
                                                                          41,659           245,959           (185,940   )
                                                                ------------------   ---------------    ---------------

Net income                                                          $  2,357,640       $ 2,472,316        $ 2,033,137
                                                                ==================   ===============    ===============

Income (loss) per limited partner unit
     Continuing operations                                           $     33.09         $   31.81          $   31.70
     Discontinued operations                                                0.59              3.51              (2.66   )
                                                                ------------------   ---------------    ---------------

                                                                     $     33.68         $   35.32          $   29.04
                                                                ==================   ===============    ===============

Weighted average number of limited partner units
     outstanding                                                          70,000            70,000             70,000
                                                                ==================   ===============    ===============

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


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

                         STATEMENTS OF PARTNERS' CAPITAL

                  Years Ended December 31, 2003, 2002 and 2001

<TABLE>
<CAPTION>

 <c>
                                            General Partners                                           Limited Partners
                                  --------------------------------------    --------------------------------------------------------
                                                         Accumulated                                               Accumulated
                                    Contributions         Earnings         Contributions       Distributions         Earnings
                                  ------------------   ----------------   -----------------   ----------------   -----------------

Balance, December 31, 2000              $     1,000        $   290,598       $  35,000,000      $ (35,104,226 )     $  32,650,028

    Distributions to limited
       partners ($45.00 per
       limited partner unit)                     --                 --                  --         (3,150,000 )                --
    Net income                                   --                 --                  --                 --           2,033,137
                                  ------------------   ----------------   -----------------   ----------------   -----------------

Balance, December 31, 2001                    1,000            290,598          35,000,000        (38,254,226 )        34,683,165

    Distributions to limited
       partners ($45.00 per
       limited partner unit)                     --                 --                  --         (3,150,000 )                --
    Net income                                   --                 --                  --                 --           2,472,316
                                  ------------------   ----------------   -----------------   ----------------   -----------------

Balance, December 31, 2002                    1,000            290,598          35,000,000        (41,404,226 )        37,155,481

    Distributions to limited
       partners ($45.00 per
       limited partner unit)                     --                 --                  --         (3,150,000 )                --
    Net income                                   --                 --                  --                 --           2,357,640
                                  ------------------   ----------------   -----------------   ----------------   -----------------

Balance, December 31, 2003              $     1,000        $   290,598       $  35,000,000      $ (44,554,226 )     $  39,513,121
                                  ==================   ================   =================   ================   =================

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


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

  $ (4,015,000 )    $28,822,400



            --       (3,150,000 )
            --        2,033,137
 --------------   --------------

    (4,015,000 )     27,705,537



            --       (3,150,000 )
            --        2,472,316
 --------------   --------------

    (4,015,000 )     27,027,853



            --       (3,150,000 )
            --        2,357,640
 --------------   --------------

  $ (4,015,000 )    $26,235,493
 ==============   ==============




<PAGE>


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

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
<S> <c>
                                                                                 Year Ended December 31,
                                                                    2003                2002                  2001
                                                               ---------------     ---------------       ---------------
Cash Flows from Operating Activities:
    Net income                                                  $   2,357,640        $  2,472,316          $  2,033,137
                                                             -----------------   -----------------    ------------------
     Adjustments to reconcile net income to net cash
       provided by operating activities:
           Depreciation                                               346,296             375,418               370,848
           Amortization of investment in direct financing
                leases                                                 58,455              58,275                71,787
           Amortization                                                 1,652               1,650                 1,648
           Minority interest                                               --              95,316                23,001
           Equity in earnings of unconsolidated joint
                ventures, net of distributions                         92,968             152,860              (168,113)
           Loss (gain) on sale of assets                              (10,102)           (216,094)               11,897
           Provision for write-down of assets                              --             106,437               565,061
           Provision for doubtful accounts                                 --                  --                33,147
           Decrease (increase) in receivables                         (45,586)             26,288               (12,951)
           Decrease (increase) in due from related party                  109              14,317                (2,388)
           Increase in accrued rental income                          (14,635)            (48,618)              (56,778)
           Decrease (increase) in other assets                         (2,706)              8,854                21,552
           Increase (decrease) in accounts payable and
                accrued expenses and real estate taxes
                payable                                               (26,943)             17,883               (22,863)
           Increase (decrease) in due to related parties               (1,906)              2,916                 6,111
           Increase in rents paid in advance and deposits               6,776               3,776                25,270
                                                             -----------------   -----------------    ------------------
                    Total adjustments                                 404,378             599,278               867,229
                                                             -----------------   -----------------    ------------------

Net cash provided by operating activities                           2,762,018           3,071,594             2,900,366
                                                             -----------------   -----------------    ------------------

Cash Flows from Investing Activities:
    Insurance proceeds for casualty loss on building                  590,132                  --                    --
    Proceeds from sale of assets                                      472,425             441,126               373,800
    Additions to real estate properties with operating                     --                  --            (3,063,219)
        leases
    Investment in joint ventures                                     (475,000)           (247,437)           (1,368,300)
    Liquidating distribution from joint ventures                      189,161                  --             2,430,032
    Redemption of certificate of deposit                                   --                  --               100,000
    Decrease in restricted cash                                            --                  --             2,061,560
                                                             -----------------   -----------------    ------------------
        Net cash provided by investing activities                     776,718             193,689               533,873
                                                             -----------------   -----------------    ------------------

Cash Flows from Financing Activities:
    Proceeds from loan from corporate general partner                      --                  --                75,000
    Repayment of loan from corporate general partner                       --                  --               (75,000)
    Distributions to limited partners                              (3,150,000)         (3,150,000)           (3,150,000)
    Distributions to holder of minority interest                           --             (73,754)              (26,191)
                                                             -----------------   -----------------    ------------------
        Net cash used in financing activities                      (3,150,000)         (3,223,754)           (3,176,191)
                                                             -----------------   -----------------    ------------------

Net increase in cash and cash equivalents                             388,736              41,529               258,048

Cash and cash equivalents at beginning of year                      1,168,450           1,126,921               868,873
                                                             -----------------   -----------------    ------------------

Cash and Cash Equivalents at End of Year                        $   1,557,186        $  1,168,450          $  1,126,921
                                                             =================   =================    ==================
</TABLE>
                See accompanying notes to financial statements.

<PAGE>

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

                      STATEMENTS OF CASH FLOWS - CONTINUED

<TABLE>
<CAPTION>

 <c>
                                                                                   Year Ended December 31,
                                                                            2003               2002               2001
                                                                       ---------------    ---------------    ---------------

Supplemental Schedule of Non-Cash Investing and Financing
    Activities:

       Insurance proceeds receivable                                         $     --        $   577,775           $     --
                                                                       ===============    ===============    ===============

       Distributions declared and unpaid at December 31                   $   787,500        $   787,500        $   787,500
                                                                       ===============    ===============    ===============
</TABLE>
                See accompanying notes to financial statements.

<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


1.       Significant Accounting Policies

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

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

         Real Estate and Lease Accounting - The Partnership  records real estate
         property acquisitions at cost, including acquisition and closing costs.
         Real  estate  properties  are leased to third  parties  generally  on a
         triple-net  basis,  whereby the tenant is responsible for all operating
         expenses relating to the property, including property taxes, insurance,
         maintenance  and  repairs.  During the years ended  December  31, 2003,
         2002, and 2001,  tenants paid, or are expected to pay, directly to real
         estate  taxing  authorities   approximately  $302,600,   $315,800,  and
         $295,600,  respectively,  in estimated  real estate taxes in accordance
         with the terms of their leases.

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

              Operating  method - 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.

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

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



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


1.       Significant Accounting Policies - Continued

         Substantially all leases are for 15 to 20 years and provide for minimum
         and contingent  rentals.  The lease options  generally allow tenants to
         renew the leases for two to four successive  five-year  periods subject
         to the same terms and conditions as the initial lease. Most leases also
         allow the tenant to purchase  the property at fair market value after a
         specified portion of the lease has elapsed.

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

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

         Investment in Joint  Ventures - Prior to the  liquidation of Caro Joint
         Venture,  a  Florida  limited   partnership,   in  November  2002,  the
         Partnership  accounted  for its 66% interest in the joint venture using
         the consolidation  method.  Minority interest  represented the minority
         joint  venture   partners'   proportionate   share  of  equity  in  the
         Partnership's  consolidated joint venture. All significant intercompany
         accounts  and  transactions  have been  eliminated.  The  Partnership's
         investments in Auburn Joint Venture, Melbourne Joint Venture, Asheville
         Joint Venture,  Warren Joint Venture, and Show Low Joint Venture, prior
         to its  liquidation  in December  2003,  and the properties in Clinton,
         North Carolina; Vancouver,  Washington; Overland Park, Kansas; Memphis,
         Tennessee;  Fort Myers, Florida;  Baytown,  Texas;  Waldorf,  Maryland;
         Niles,  Illinois;  Universal City, Texas;  Schertz,  Texas; and Dalton,
         Georgia, each of which is held as tenants-in-common  with affiliates of
         the general  partners,  are accounted for using the equity method since
         the joint venture agreement requires the consent of all partners on all
         key decisions affecting the operations of the underlying property.

         Cash and Cash Equivalents - The Partnership considers all highly liquid
         investments  with a maturity of three months or less when  purchased to
         be cash  equivalents.  Cash  and cash  equivalents  consist  of  demand
         deposits at commercial  banks and money market funds.  Cash equivalents
         are stated at cost plus accrued  interest,  which  approximates  market
         value.

         Cash  accounts  maintained  on  behalf  of the  Partnership  in  demand
         deposits  at  commercial  banks  and  money  market  funds  may  exceed
         federally insured levels;  however, the Partnership has not experienced
         any losses in such accounts.

         Lease Costs - Other assets include  brokerage fees and lease  incentive
         costs  incurred in finding new tenants and  negotiating  leases and are
         amortized  over the terms of the new  leases  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


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


1.       Significant Accounting Policies - Continued

         in the accompanying financial statements. The Partnership is subject to
         certain state taxes on its income and property.  Additionally,  for tax
         purposes,  syndication costs are included in Partnership  equity and in
         the  basis  of  each  partner's  investment.  For  financial  reporting
         purposes, syndication costs represent a reduction of Partnership equity
         and a reduction in the basis of each partner's investment.

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

         Reclassification   -  Certain  items  in  the  prior  years'  financial
         statements  have been  reclassified  to conform  to 2003  presentation.
         These  reclassifications  had no effect on total partners' capital, net
         income or cash flows.

         Statement of Financial Accounting Standards No. 144 - Effective January
         1, 2002,  the  Partnership  adopted  Statement of Financial  Accounting
         Standards  No.  144  "Accounting  for the  Impairment  or  Disposal  of
         Long-Lived  Assets." This statement requires that a long-lived asset be
         tested for  recoverability  whenever events or changes in circumstances
         indicate that its carrying amount may not be recoverable.  The carrying
         amount of a long-lived  asset is not  recoverable if it exceeds the sum
         of the  undiscounted  cash flows  expected  to result  from the use and
         eventual  disposition  of the  asset.  The  assessment  is based on the
         carrying   amount  of  the   asset  at  the  date  it  is  tested   for
         recoverability.  An  impairment  loss is  recognized  when the carrying
         amount of a long-lived  asset exceeds its fair value.  If an impairment
         is recognized,  the adjusted  carrying amount of a long-lived  asset is
         its new cost basis.  The  statement  also  requires that the results of
         operations of a component of an entity that either has been disposed of
         or is  classified  as held  for  sale  be  reported  as a  discontinued
         operation if the  disposal  activity was  initiated  subsequent  to the
         adoption of the Standard.

         FASB Interpretation No. 46 - In January 2003, the Financial  Accounting
         Standards Board ("FASB") issued FASB  Interpretation No. 46 ("FIN 46"),
         "Consolidation  of  Variable  Interest  Entities"  to  expand  upon and
         strengthen  existing  accounting guidance that addresses when a company
         should include the assets, liabilities and activities of another entity
         in  its  financial  statements.   To  improve  financial  reporting  by
         companies  involved with variable  interest  entities,  FIN 46 requires
         that a variable  interest  entity be  consolidated by a company if that
         company  is  subject  to a  majority  risk of loss  from  the  variable
         interest  entity's  activities or entitled to receive a majority of the
         entity's residual returns or both. Prior to FIN 46, a

<PAGE>



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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


1.       Significant Accounting Policies - Continued

         company generally included another entity in its consolidated financial
         statements  only if it controlled the entity through voting  interests.
         In December  2003,  the FASB issued FASB  Interpretation  No. 46R ("FIN
         46R"),  to clarify  some of the  provisions  of FIN 46.  Under FIN 46R,
         special  effective date provisions apply to entities that have fully or
         partially  applied  FIN 46 prior  to  issuance  of FIN 46R.  Otherwise,
         application  of FIN 46R is required in financial  statements  of public
         entities that have interests in structures  that are commonly  referred
         to as  special-purpose  entities for periods  ending after December 15,
         2003.  Application  by  public  entities,  other  than  small  business
         issuers,  for all other types of variable interest entities is required
         in financial  statements  for periods  ending after March 15, 2004. The
         Partnership  did not  fully  or  partially  apply  FIN 46  prior to the
         issuance of FIN 46R. Also, the  Partnership  does not have interests in
         structures commonly referred to as special-purpose entities. Therefore,
         application  of FIN  46R is  required  in the  Partnership's  financial
         statements  for  periods  ending  after  March 15,  2004.  The  General
         Partners  believe  adoption  of this  standard  may  result  in  either
         consolidation   or   additional   disclosure    requirements   of   the
         Partnership's   unconsolidated  joint  ventures,  which  are  currently
         accounted for under the equity method.  However,  such consolidation is
         not  expected  to  significantly  impact the  Partnership's  results of
         operations.

2.       Real Estate Properties With Operating Leases

         Real estate properties with operating leases consisted of the following
         at December 31:
<TABLE>
<CAPTION>

 <c>
                                                                      2003                 2002
                                                               -------------------   ------------------

                  Land                                              $   7,984,328        $   7,984,328
                  Buildings                                            10,330,088           10,330,088

                                                               -------------------   ------------------
                                                                       18,314,416           18,314,416
                  Less accumulated depreciation                        (3,958,752 )         (3,612,456 )
                                                               -------------------   ------------------
                                                                    $  14,355,664        $  14,701,960
                                                               ===================   ==================
</TABLE>


         In October 2002, the building on the property in Marietta,  Georgia was
         destroyed by fire and the tenant  terminated its lease relating to this
         property.  In  March  2003,  the  Partnership  received   approximately
         $590,100 in insurance proceeds, resulting in a gain on casualty loss of
         approximately  $12,400  during  2003.  The  Partnership  had recorded a
         provision  for  write-down  of assets in the previous  year relating to
         this property.  In September 2003, the  Partnership  entered into a new
         lease,  with a new tenant for this  property.  The lease terms for this
         property are substantially the same as the Partnership's  other leases.
         In  connection  with  the new  lease,  the new  tenant  has  agreed  to
         construct a new building on the property.




<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


2.       Real Estate Properties With Operating Leases - Continued

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

                     2004                                   $  1,861,370
                     2005                                      1,195,017
                     2006                                      1,077,855
                     2007                                      1,077,855
                     2008                                      1,024,852
                     Thereafter                                6,442,483
                                                         ----------------

                                                            $ 12,679,432
                                                         ================

3.       Net Investment in Direct Financing Leases

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

 <c>
                                                                          2003                 2002
                                                                     ----------------    -----------------

                Minimum lease payments receivable                       $  2,672,723         $  2,933,820
                Estimated residual values                                    616,029              616,029
                Less unearned income                                      (1,511,437 )         (1,714,079 )
                                                                     ----------------    -----------------

                Net investment in direct financing leases               $  1,777,315         $  1,835,770
                                                                     ================    =================
</TABLE>


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

                      2004                                $   261,099
                      2005                                    261,099
                      2006                                    270,551
                      2007                                    270,551
                      2008                                    270,551
                      Thereafter                            1,338,872
                                                     -----------------

                                                         $  2,672,723
                                                     =================



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


4.       Investment in Joint Ventures

         The Partnership has a 3.9%, a 14.46%, a 64.29%,  and a 50%, interest in
         the  profits  and  losses  of Auburn  Joint  Venture,  Asheville  Joint
         Venture,   Warren  Joint  Venture,  and  Melbourne  Joint  Venture.  In
         addition,  the Partnership has a 23.04%,  an 18%, a 34.74%, a 46.2%, an
         85%, an 80%, a 74%,  and a 60%  interest  in a property  in  Vancouver,
         Washington;  a property  in  Clinton,  North  Carolina;  a property  in
         Overland Park, Kansas; a property in Memphis,  Tennessee; a property in
         Fort Myers, Florida; a property in Baytown, Texas; a property in Niles,
         Illinois, and a property in Waldorf,  Maryland,  respectively,  each of
         which is held as  tenants-in-common.  The remaining  interests in these
         joint ventures and the properties held as tenants in common are held by
         affiliates of the Partnership which have the same general partners.

         In January 2002, Houlihan's Restaurant, Inc., which leased the property
         owned by Show Low Joint Venture,  filed for bankruptcy and rejected the
         lease  relating to this property.  Based on a pending  contract to sell
         the property,  the joint venture,  in which the Partnership owned a 36%
         interest,   recorded  a   provision   for   write-down   of  assets  of
         approximately  $172,200  during the year ended  December 31, 2002.  The
         joint  venture had recorded a provision  for  write-down of assets in a
         previous year relating to this  property.  The contract for the sale of
         the property was subsequently  terminated.  In September 2003, Show Low
         Joint  Venture,  sold the property to a third party and recorded a loss
         on disposal of discontinued  operations of  approximately  $29,500.  In
         December 2003, the Partnership and the joint venture partner  dissolved
         the joint venture and the Partnership received  approximately  $189,200
         representing  its pro rata  share of the  joint  venture's  liquidating
         distribution,  resulting  in a loss  on  dissolution  of  approximately
         $2,300.  The  financial  results for this  property  are  reflected  as
         Discontinued   Operations  in  the  condensed   financial   information
         presented below.

         In June  2002,  the  Partnership  and CNL  Income  Fund  XI,  Ltd.,  an
         affiliate of the general partners,  invested in two properties,  one in
         Universal  City,  Texas and one in Schertz,  Texas,  each as a separate
         tenancy in common arrangement.  The Partnership and CNL Income Fund XI,
         Ltd.  acquired  these  properties  from  CNL  Funding  2001-A,  LP,  an
         affiliate of the general partners.  The Partnership and CNL Income Fund
         XI, Ltd.  entered into agreements  whereby each co-tenant will share in
         the profits and losses of each property in proportion to its applicable
         percentage interest. The Partnership contributed approximately $148,500
         and  $98,900  for a 14.2%  and 9.5%  interest,  respectively,  in these
         properties.

         In November  2003,  the  Partnership  and CNL Income Fund XI, Ltd,  CNL
         Income   Fund  XV,   Ltd.,   and  CNL  Income   Fund  XVI,   Ltd.,   as
         tenants-in-common,  invested in a property in Dalton,  Georgia. Each of
         the CNL Income  Funds is an  affiliate  of the  general  partners.  The
         Partnership  and  affiliates  entered  into an  agreement  whereby each
         co-venturer  will share in the  profits  and losses of the  property in
         proportion  to its  applicable  percentage  interest.  The  Partnership
         contributed $475,000 for a 25% interest in the property.

         Auburn Joint Venture, Asheville Joint Venture, Melbourne Joint Venture,
         Warren  Joint   Venture,   and  the   Partnership   and  affiliates  as
         tenants-in-common  in eleven separate  tenancy-in-common  arrangements,
         each own one property.  The following presents the combined,  condensed
         financial information for the joint ventures and the properties held as
         tenants-in-common with affiliates at:


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


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

 <c>
                                                                               December 31,
                                                               2003                                     2002
                                                        --------------------                      ------------------

         Real estate properties with operating leases,      $    16,480,991                           $  14,884,873
             net
         Net investment in direct financing leases                2,668,588                               2,719,398
         Real estate held for sale                                       --                                 562,600
         Cash                                                       167,685                                  34,613
         Receivables, less allowance for doubtful
             accounts                                                26,590                                  30,855
         Accrued rental income                                      734,240                                 635,573
         Other assets                                                   103                                     444
         Liabilities                                                 78,059                                   3,519
         Partners' capital                                       20,000,138                              18,864,837

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

         Revenues                                            $    2,046,642       $   1,897,736       $   1,840,429
         Expenses                                                  (317,088 )          (298,189 )          (331,528 )
         Gain on sale of assets                                          --                  --             282,012
                                                        --------------------  ------------------  ------------------
              Income from continuing operations                   1,729,554           1,599,547           1,790,913
                                                        --------------------  ------------------  ------------------

         Discontinued operations:
              Revenues                                                   94               6,860              84,874
              Expenses                                              (28,905 )           (28,316 )           (14,979 )
              Provision for write-down of assets                    (55,500 )          (172,165 )           (56,398 )
              Loss on disposal of discontinued                      (29,509 )                --                  --
                 operations                             --------------------  ------------------  ------------------
                                                                   (113,820 )          (193,621 )            13,497
                                                        --------------------  ------------------  ------------------

         Net income                                          $    1,615,734       $   1,405,926       $   1,804,410
                                                        ====================  ==================  ==================

</TABLE>

         The Partnership recognized income of $733,125,  $673,970, and $987,886,
         during the years ended December 31, 2003, 2002, and 2001, respectively,
         from these joint ventures and tenancy in common arrangements.

5.       Discontinued Operations

         During  2002,  Caro Joint  Venture,  in which the  Partnership  owned a
         66.14%  interest  and  accounted  for under the  consolidation  method,
         entered  into an  agreement  with a third party to sell its property in
         Caro,  Michigan.  During 2002, the joint venture sold this property and
         received net sales proceeds of approximately  $600,000,  resulting in a
         gain on sale of assets of approximately  $216,100 to the joint venture.
         As a  result  of the  sale  of the  property,  the  joint  venture  was
         dissolved  and  the   Partnership   received   approximately   $441,100
         representing  its pro-rata share of the liquidating  distribution  from
         the  joint  venture  and  recorded  a  gain  on  sale  of  discontinued
         operations of approximately $18,200 during the year ended

<PAGE>



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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


5.       Discontinued Operations - Continued

         December 31, 2002. In January 2003, the Partnership  identified another
         property for sale. In June 2003, the Partnership  sold this property in
         Broken Arrow, Oklahoma to a third party and received net sales proceeds
         of  approximately  $472,400.   Because  the  Partnership  had  recorded
         provisions  for  write-down  of assets  relating  to this  property  in
         previous  years,  no gain or loss was recorded  during 2003 relating to
         the sale of this  property.  The  financial  results  relating to these
         properties are reflected as Discontinued Operations in the accompanying
         financial statements.

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

 <c>
                                                                    Year Ended December 31,
                                                         2003                 2002               2001
                                                    ---------------       -------------    ------------------

               Rental revenues                              41,884             155,987                99,088
               Expenses                                       (225 )           (16,150 )             (51,261 )
               Provision for write-down of assets               --             (32,859 )            (210,766 )
               Minority interest                                --             (95,316 )             (23,001 )
                                                    ---------------       -------------    ------------------
               Income (loss) from discontinued
                     operations                         $   41,659           $  11,662          $   (185,940 )
                                                    ===============       =============    ==================
</TABLE>

6.       Allocations and Distributions

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

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



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


6.       Allocations and Distributions - Continued

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

         Effective  January 1, 2000, the general  partners waived their right to
         receive  future  distributions  from the  Partnership,  including  both
         distributions  of operating cash flow and  distributions of liquidation
         proceeds,   to  the  extent   that  the   cumulative   amount  of  such
         distributions would exceed the balance in the general partners' capital
         account as of December  31,  1999.  Accordingly,  for years  commencing
         January  1,  2000 and  after,  the  Partnership's  net  income  will be
         allocated entirely among the limited partners.  However,  if losses are
         allocated to the general  partners in a year, an amount of income equal
         to the sum of such losses may be  allocated  to the general  partner in
         succeeding years. Accordingly,  the general partners were not allocated
         any net income during the years ended December 31, 2003, 2002 or 2001.

         During each of the years ended  December 31, 2003,  2002, and 2001, the
         Partnership   declared   distributions   to  the  limited  partners  of
         $3,150,000.  No distributions have been made to the general partners to
         date.



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


7.       Income Taxes

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

 <c>
                                                                             2003            2002             2001
                                                                        --------------- ---------------- ---------------

          Net income for financial reporting purposes                      $ 2,357,640      $ 2,472,316     $ 2,033,137

          Effect of timing differences relating to depreciation                 (7,862)          (9,349)        (31,672)

          Provision for write-down of assets                                        --          106,437         565,061

          Direct financing leases recorded as operating leases for
               tax reporting purposes                                           58,455           58,274          71,806

          Effect of timing differences relating to gains/losses on
               real estate property sales                                      (35,904)        (261,029)       (216,733)

          Effect of timing differences relating to equity in earnings
               of unconsolidated joint ventures                                  9,950           13,662        (264,234)

          Effect of timing differences relating to allowance for
               doubtful accounts                                                17,714         (141,028)        (43,067)

          Accrued rental income                                                (14,635)         (48,618)        (56,778)

          Rents paid in advance                                                  6,776            4,438          25,270

          Effect of timing differences relating to minority interest
               of consolidated joint venture                                        --          217,376            (267)
                                                                        --------------- ---------------- ---------------

          Net income for federal income tax purposes                       $ 2,392,134      $ 2,412,479     $ 2,082,523
                                                                        =============== ================ ===============
</TABLE>





<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


8.       Related Party Transactions

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

         The Advisor provides services  pursuant to a management  agreement with
         the Partnership. In connection therewith, the Partnership agreed to pay
         the  Advisor  a  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 and
         the property held as  tenants-in-common  with an affiliate,  but not in
         excess of  competitive  fees for  comparable  services.  These fees are
         payable only after the limited  partners  receive  their 10%  Preferred
         Return.  Due to the fact  that  these  fees are  noncumulative,  if the
         limited  partners have not received  their 10% Preferred  Return in any
         particular  year,  no  management  fees will be due or payable for such
         year. As a result of such  threshold,  no management fees were incurred
         during the years ended December 31, 2003, 2002 and 2001.

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

         In June 2002, the Partnership and CNL Income Fund XI, Ltd. acquired one
         property in Universal City, Texas and one in Schertz,  Texas, each as a
         separate tenancy-in-common  arrangement. The Partnership and CNL Income
         Fund XI, Ltd. acquired these properties from CNL Funding 2001-A, LP, an
         affiliate of the general partners. CNL Funding 2001-A, LP had purchased
         and temporarily held title to the properties in order to facilitate the
         acquisition  of the properties by the  Partnership.  The purchase price
         paid by the  Partnership  represented the costs incurred by CNL Funding
         2001-A, LP to acquire and carry the properties.

         During  the  years  ended  December  31,  2003,  2002,  and  2001,  the
         Partnership's and its affiliates provided accounting and administrative
         services. The Partnership incurred $144,208, $177,297, and $198,307 for
         the years ended December 31, 2003,  2002, and 2001,  respectively,  for
         such services.

         The due to  related  parties at  December  31,  2003 and 2002,  totaled
         $12,517 and $14,423, respectively.

<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


9.       Concentration of Credit Risk

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

 <c>
                                                    2003               2002                2001
                                                --------------    ----------------    ---------------

             Golden Corral Corporation              $ 816,105           $ 787,090         $  779,116
             IHOP Properties, Inc.                    619,691             621,599            772,413
</TABLE>

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

 <c>
                                                      2003         2002            2001
                                                  -----------    ----------    -----------

              Golden Corral Buffet and Grill         $ 816,105    $ 787,090     $779,116
              IHOP                                     619,691     621,599       772,413
</TABLE>

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


<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


10.      Selected Quarterly Financial Data

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

 <c>
                  2003 Quarter             First         Second         Third          Fourth             Year
         ------------------------------- -----------  -------------  ------------  ---------------   ---------------

         Continuing operations (1):
              Revenues                    $ 535,852      $ 531,532     $ 532,645       $  636,396       $ 2,236,425
              Equity in earnings of
                unconsolidated joint
                ventures                    189,734        169,551       176,396          197,444           733,125
              Income from
                continuing
                operations                  531,788        548,359       551,428          684,406         2,315,981
         Discontinued operations (1):
              Revenues                       19,978         21,906            --               --            41,884
              Income from
                discontinued
                operations                   19,753         21,906            --               --            41,659

         Net income                         551,541        570,265       551,428          684,406         2,357,640

         Income per limited partner unit:

         Continuing operations              $  7.60       $   7.84      $   7.88        $    9.77         $   33.09
         Discontinued operations               0.28           0.31            --               --              0.59
                                         -----------  -------------  ------------  ---------------   ---------------
                  Total                     $  7.88       $   8.15      $   7.88        $    9.77         $   33.68
                                         ===========  =============  ============  ===============   ===============
</TABLE>



<PAGE>


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

                          NOTES TO FINANCIAL STATEMENTS

                  Years Ended December 31, 2003, 2002, and 2001


10.      Selected Quarterly Financial Data - Continued
<TABLE>
<CAPTION>
<S> <C>
                  2002 Quarter             First         Second         Third          Fourth             Year
         ------------------------------- -----------  -------------  ------------  ---------------   ---------------

         Continuing operations (1):
              Revenues                    $ 573,591      $ 571,938     $ 562,296       $  623,951       $ 2,331,776
              Equity in earnings of
                unconsolidated joint
                ventures                    169,719        170,708       198,605          134,938           673,970
              Income from
                continuing
                operations                  541,950        547,312       603,438          533,657         2,226,357
         Discontinued operations (1):
              Revenues                       43,127         43,445        38,719           30,696           155,987
              Income from and gain on
                disposal of discont-
                inued operations             32,365         33,228        28,406          151,960           245,959

         Net income                         574,315        580,540       631,844          685,617         2,472,316

         Income per limited partner
             unit

         Continuing operations              $  7.74       $   7.82      $   8.62        $    7.63         $   31.81
         Discontinued operations               0.46           0.47          0.41             2.17              3.51
                                         -----------  -------------  ------------  ---------------   ---------------

                  Total                     $  8.20       $   8.29      $   9.03        $    9.80         $   35.32
                                         ===========  =============  ============  ===============   ===============
</TABLE>

         (1)  Certain   items  in  the  quarterly   financial   data  have  been
              reclassified   to   conform   to  the  2003   presentation.   This
              reclassification  had no  effect on net  income.  The  results  of
              operations relating to properties that were identified for sale as
              of  December  31,  2001  but sold  subsequently  are  reported  as
              continuing  operations.  The  results of  operations  relating  to
              properties  that were either  identified  for sale and disposed of
              subsequent to January 1, 2002 or were  classified as held for sale
              as of December  31, 2003 are reported as  discontinued  operations
              for all periods presented.



<PAGE>


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

         None.


Item 9A.  Controls and Procedures

         The  General  Partners  maintain  a  set  of  disclosure  controls  and
procedures  designed to ensure that information  required to be disclosed in the
Partnership's  filings  under the  Securities  Exchange Act of 1934 is recorded,
processed,  summarized  and reported  within the time  periods  specified in the
Securities and Exchange  Commission's  rules and forms. The principal  executive
and  financial  officers of the  corporate  general  partner have  evaluated the
Partnership's  disclosure  controls and  procedures  as of the end of the period
covered  by this  Annual  Report  on Form  10-K and have  determined  that  such
disclosure controls and procedures are effective.

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


                                    PART III


Item 10.  Directors and Executive Officers of the Registrant

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

         James M. Seneff, Jr., age 57. Since 1971, Mr. Seneff has been active in
the  acquisition,  development,  and  management  of real estate  projects  and,
directly or through an  affiliated  entity,  has served as a general  partner or
co-venturer in over 100 real estate  ventures.  These ventures have involved the
financing,  acquisition,   construction,  and  leasing  of  restaurants,  office
buildings,  apartment  complexes,  hotels, and other real estate. Mr. Seneff has
served as Director and Chairman of the Board of CNL-RP, a public,  unlisted real
estate investment trust since 1994. Mr. Seneff served as Chief Executive Officer
of CNL-RP from 1994 through August 1999 and as Co-Chief  Executive  Officer from
December 2000 through September 2003. Mr. Seneff served as Chairman of the Board
and  Chief  Executive  Officer  of  CNL  Fund  Advisors,   Inc.,   formerly  the
Partnership's  advisor,  from  its  inception  in 1990  until it  merged  with a
wholly-owned  subsidiary  of CNL-RP in  September  1999,  and in June 2000,  was
re-elected  to those  positions of CNL Fund  Advisors,  Inc. CNL Fund  Advisors,
Inc.,  formerly CNL  Institutional  Advisors,  Inc., is a registered  investment
advisor. Mr. Seneff is a principal stockholder of CNL Holdings, Inc., the parent
company of CNL Financial Group, Inc., a diversified real estate company, and has
served as a Director,  Chairman of the Board and Chief Executive  Officer of CNL
Financial Group, Inc. since 1973. CNL Financial Group, Inc. is and is the parent
company, either directly or indirectly through subsidiaries,  of CNL Real Estate
Services,  Inc.,  CNL Capital  Markets,  Inc.,  CNL  Investment  Company and CNL
Securities  Corp.,  all of which are  engaged  in the  business  of real  estate
finance.  Mr.  Seneff also serves as a Director and Chairman of the Board of CNL
Hospitality  Properties,  Inc., a public, unlisted real estate investment trust;
and served as Chief Executive Officer of CNL Hospitality  Properties,  Inc. from
its inception in 1997 until 2003 and served as Co-Chief  Executive  Officer from
February 2003 until May 1, 2003.  Mr. Seneff has served as Chairman of the Board
of CNL Hospitality Corp., the advisor to CNL Hospitality Properties, Inc., since
its inception in 1997.  Mr. Seneff also served as Chief  Executive  Officer from
its inception in 1997 through  February 2003,  and currently  serves as Co-Chief
Executive Officer of CNL Hospitality Corp. Mr. Seneff has served as Director and
Chairman  of the Board of CNL  Retirement  Corp.  since 1997 and served as Chief
Executive Officer of CNL Retirement Corp. from 1997 through 2003. CNL Retirement
Corp. is the advisor to CNL Retirement Properties, Inc., a public, unlisted real
estate  investment trust. Mr. Seneff has also served as Director and Chairman of
the Board of Commercial Net Lease Realty,  Inc., a public real estate investment
trust  that is listed on the New York Stock  Exchange,  since 1992 and served as
Chief Executive  Officer of Commercial Net Lease Realty,  Inc. from 1992 through
February 2004. Mr. Seneff has served as a Director,  Chairman of the Board,  and
Chief Executive Officer of CNL Securities Corp. since its formation in 1979; CNL
Investment  Company  since  1990;  and  CNL  Institutional  Advisors,   Inc.,  a
registered  investment  advisor for pension  plans,  since 1990.  Mr. Seneff has
served as Chairman of the Board and Chief  Executive  Officer of CNL  Commercial
Finance,  Inc.  since 2000.  Mr.  Seneff also serves as Chairman of the Board of
CNLBank, an independent,  state-chartered commercial bank. Mr. Seneff previously
served on the Florida State Commission on Ethics and is a former member and past
Chairman of the State of Florida Investment  Advisory Council,  which recommends
to the Florida Board of Administration  investments for various Florida employee
retirement  funds.  The Florida  Board of  Administration,  Florida's  principal
investment advisory and money management agency,  oversees the investment of the
Florida  state  retirement  plan.  Mr.  Seneff  received  his degree in Business
Administration from Florida State University in 1968.

         Robert A.  Bourne,  age 56. Mr.  Bourne has  participated  as a general
partner  or  co-venturer  in over  100  real  estate  ventures  involved  in the
financing,  acquisition,   construction,  and  leasing  of  restaurants,  office
buildings,  apartment  complexes,  hotels, and other real estate. Mr. Bourne has
served as a Director and Vice  Chairman of the Board of CNL-RP  since 1994.  Mr.
Bourne also served as President of CNL-RP from 1994  through  February  1999 and
served as Treasurer  from  February  1999 through  August 1999 and from May 1994
through December 1994. Mr. Bourne served in various executive positions with CNL
Fund Advisors, Inc. prior to its merger with a wholly-owned subsidiary of CNL-RP
including,  President from 1994 through  September  1997, and Director from 1994
through  August  1999.  Mr.  Bourne  serves as  President  and  Treasurer of CNL
Financial Group, Inc. Mr. Bourne serves as Director,  Vice Chairman of the Board
and  Treasurer  and from  1997  until  June  2002  served  as  President  of CNL
Hospitality  Properties,  Inc. and as Director,  President  and Treasurer of CNL
Hospitality  Corp.  Mr.  Bourne  also serves as Director  and  Treasurer  of CNL
Retirement  Properties,  Inc.  and as Director and  Treasurer of CNL  Retirement
Corp. Mr. Bourne serves as a Director of CNLBank.  Mr. Bourne has also served as
a Director since 1992, Vice Chairman of the Board since February 1996, Secretary
and Treasurer  from February  1996 through  1997,  and President  from July 1992
through February 1996, of Commercial Net Lease Realty, Inc. Mr. Bourne serves as
Director, President and Treasurer for various affiliates of CNL Financial Group,
Inc.  including,   CNL  Investment   Company,   CNL  Securities  Corp.  and  CNL
Institutional  Advisors,  Inc. Mr. Bourne began his career as a certified public
accountant  employed by Coopers & Lybrand,  Certified Public  Accountants,  from
1971 through  1978,  where he attained the position of Tax Manager in 1975.  Mr.
Bourne  graduated from Florida State University in 1970 where he received a B.A.
in Accounting, with honors.

         Curtis B. McWilliams, age 48. Mr. McWilliams has served as President of
CNL-RP since May 2001 and as Chief  Executive  Officer of CNL-RP since September
2003.  Mr.  McWilliams  served as  Co-Chief  Executive  Officer  of CNL-RP  from
December 2000 through  September 2003 and served as Chief Executive Officer from
September 1999 through  December 2000. Mr.  McWilliams  also served as President
and Chief  Executive  Officer of CNL  Franchise  Network  Corp.,  a wholly owned
subsidiary  of CNL-RP  since  August 2002 and served as President of CNL-RP from
February 1999 until  September  1999 and as Executive  Vice  President of CNL-RP
from 1997 through  February  1999.  Mr.  McWilliams  served as an Executive Vice
President of CNL  Financial  Group,  Inc. from the time he joined the company in
April 1997 until September 1999. Mr.  McWilliams served as President of CNL Fund
Advisors,  Inc. and CNL Financial  Services,  Inc., a corporation engaged in the
business of real estate financing, from April 1997 until the acquisition of such
entities  by  wholly  owned  subsidiaries  of  CNL-RP in  September  1999.  From
September 1983 through March 1997, Mr.  McWilliams was employed by Merrill Lynch
& Co. The  majority of his career at Merrill  Lynch & Co. was in the  Investment
Banking division where he served as a Managing Director. Mr. McWilliams received
a B.S.E. in Chemical  Engineering from Princeton University in 1977 and a Master
of Business  Administration  degree  with a  concentration  in finance  from the
University of Chicago in 1983.

         Steven  D.  Shackelford,  age  40.  Mr.  Shackelford  was  promoted  to
Executive  Vice  President  and Chief  Operating  Officer of CNL-RP in September
2003. Mr.  Shackelford has also served as Chief Financial  Officer since January
1997.  He served as Senior Vice  President  of CNL-RP from  January 1997 through
July 2000, when he was promoted to Executive Vice President. Mr. Shackelford has
also served as Secretary and Treasurer of CNL-RP since  September  1999. He also
served as Chief Financial Officer of CNL Fund Advisors, Inc. from September 1996
to September  1999.  From March 1995 to July 1996, Mr.  Shackelford was a senior
manager in the national office of Price  Waterhouse LLP where he was responsible
for advising  foreign  clients  seeking to raise capital and a public listing in
the United  States.  From  August  1992 to March  1995,  he was a manager in the
Paris,  France  office  of  Price  Waterhouse,  serving  several  multi-national
clients.  Mr. Shackelford was an audit staff and senior from 1986 to 1992 in the
Orlando, Florida office of Price Waterhouse. Mr. Shackelford received a Bachelor
of  Arts  degree  in  Accounting,   with  honors,   and  a  Master  of  Business
Administration  degree from Florida State  University and is a certified  public
accountant.

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

Section 16(a) Beneficial Ownership Reporting Compliance

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

         Based  solely on the  General  Partners'  review of the  copies of such
forms the  Partnership  has  received and written  representations  from certain
Reporting  Persons  that they  were not  required  to file  Forms 5 for the last
fiscal year, the General  Partners  believe that all Reporting  Persons complied
with all filing  requirements  applicable  to them with respect to  transactions
during fiscal 2003.

Code of Business Conduct

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

Audit Committee Financial Expert

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


Item 11.  Executive Compensation

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

Item 12. Security  Ownership of Certain Beneficial Owners and Management and
         Related Stockholder Matters

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

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

 <c>
                    Title of Class                           Name of Partner                 Percent of Class

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

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

         The Partnership does not have any equity compensation plans.



<PAGE>


Item 13. Certain Relationships and Related Transactions

         The  table  below   summarizes  the  types,   recipients,   methods  of
computation and amounts of compensation,  fees and distributions paid or payable
by the  Partnership  to the General  Partners and their  affiliates for the year
ended  December 31, 2003,  exclusive of any  distributions  to which the General
Partners or their  affiliates  may be entitled by reason of their  purchase  and
ownership of Units.
<TABLE>
<CAPTION>

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

Reimbursement  to affiliates  for      Operating  expenses are reimbursed at       Accounting   and
operating expenses                     the  lower  of  cost  or  90%  of the       administrative     services:
                                       prevailing  rate at which  comparable       $144,208
                                       services  could have been obtained in
                                       the     same     geographic     area.
                                       Affiliates  of the  General  Partners
                                       from  time  to  time  incur   certain
                                       operating  expenses  on behalf of the
                                       Partnership     for     which     the
                                       Partnership       reimburses      the
                                       affiliates without interest.

Annual, subordinated                   One  percent  of  the  sum  of  gross       $-0-
management 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 and the
                                       Property owned with an affiliate as
                                       tenants-in-common, subordinated to
                                       certain minimum returns to the Limited
                                       Partners. The management fee will not
                                       exceed competitive fees for comparable
                                       services. Due to the fact that these fees
                                       are noncumulative, if the Limited
                                       Partners have not received their 10%
                                       Preferred Return in any particular year,
                                       no management fees will be due or payable
                                       for such year.




<PAGE>



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

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

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

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


<PAGE>



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

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


Item 14. Principal Accountant Fees and Services

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

 <c>
                                                    2003                                      2002
                                            ---------------------                     ---------------------

Audit Fees (1)                                     $      12,441                             $      12,200
Tax Fees (2)                                               8,215                                     4,774
                                            ---------------------                     ---------------------
     Total                                         $      20,656                             $      16,974
                                            =====================                     =====================
</TABLE>


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

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

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







<PAGE>


                                     PART IV


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

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

    1. Financial Statements

           Report of Independent Certified Public Accountants

           Balance Sheets at December 31, 2003 and 2002

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

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

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

           Notes to Financial Statements

     2. Financial Statement Schedules

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

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

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

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

     3. Exhibits

          3.1     Certificate of Limited Partnership of CNL Income Fund VI, Ltd.
                  (Included  as  Exhibit  3.3  to  Registration   Statement  No.
                  33-23892 on Form S-11 and incorporated herein by reference.)

          4.1     Certificate of Limited Partnership of CNL Income Fund VI, Ltd.
                  (Included  as  Exhibit  4.2  to  Registration   Statement  No.
                  33-23892 on Form S-11 and incorporated herein by reference.)

          4.2     Agreement and Certificate of Limited Partnership of CNL Income
                  Fund VI, Ltd. (Included as Exhibit 4.2 to Form 10-K filed with
                  the Securities  and Exchange  Commission on April 1, 1996, and
                  incorporated herein by reference.)

          10.1    Management  Agreement between CNL Income Fund VI, Ltd. and CNL
                  Investment  Company.  (Included  as Exhibit  10.1 to Form 10-K
                  filed with the Securities and Exchange Commission on March 31,
                  1994, and incorporated herein by reference.)

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

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

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

          10.5    Assignment of Management  Agreement from CNL APF Partners,  LP
                  to CNL Restaurants  XVIII,  Inc.  (Included as Exhibit 10.3 to
                  Form 10-Q filed with the Securities and Exchange Commission on
                  August 13, 2002, and incorporated herein by reference.)

          31.1    Certification of Chief Executive  Officer of Corporate General
                  Partner Pursuant to Rule 13a-14 as Adopted  Pursuantto Section
                  302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)

          31.2    Certification of Chief Financial  Officer of Corporate General
                  Partner Pursuant to Rule 13a-14 as Adopted Pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)

          32.1    Certification of Chief Executive  Officer of Corporate General
                  Partner Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant
                  to  Section  906 of the  Sarbanes-Oxley  Act of  2002.  (Filed
                  herewith.)

          32.2    Certification of Chief Financial  Officer of Corporate General
                  Partner Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant
                  to  Section  906 of the  Sarbanes-Oxley  Act of  2002.  (Filed
                  herewith.)

(b) The  Registrant  filed no reports  on Form 8-K during the period  October 1,
    2003 through December 31, 2003.



<PAGE>




                                   SIGNATURES


         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the  undersigned,  thereunto duly  authorized,  on the 23rd day of
March, 2004.

                                         CNL INCOME FUND VI, 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>

 <c>
               Signature                                  Title                                  Date



/s/ Robert A. Bourne                     President,   Treasurer   and   Director            March 23, 2004
------------------------------------     (Principal Frinancial and Accounting
Robert A. Bourne                         (Officer)





/s/ James M. Seneff, Jr.                 Chief  Executive  Officer and  Director            March 23, 2004
------------------------------------     (Principal Executive Officer)
James M. Seneff, Jr.

</TABLE>

<PAGE>


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

                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

                  Years Ended December 31, 2003, 2002, and 2001

<TABLE>
<CAPTION>

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

  2001     Allowance for
               doubtful
               accounts (a)        $ 241,587       $   44,987        $  164,929 (b)    $ 243,222 (c)     $   9,761      $ 198,520
                               ==============  ===============  ================    =============     ==============  ============

  2002     Allowance for
               doubtful
               accounts (a)        $ 198,520          $    --        $   22,127 (b)    $ 188,872 (c)     $  12,304       $ 19,471
                               ==============  ===============  ================    =============     ==============  ============

  2003     Allowance for
               doubtful
               accounts (a)        $  19,471          $    --        $   27,488 (b)       $   --         $   9,774       $ 37,185
                               ==============  ===============  ================    =============     ==============  ============

</TABLE>


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

(b) Reduction of rental and other income.

(c) Amounts written off as uncollectible.


<PAGE>

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

             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

                                December 31, 2003

<TABLE>
<CAPTION>

 <c>
                                                                Costs Capitalized
                                                                 Subsequent to         Net Cost Basis at Which
                                           Initial Cost           Acquisition       Carried at Close of Period (c)
                                    ------------------------  ------------------ -------------------------------------
                           Encum-              Buildings and  Improve-  Carrying              Buildings and            Accumulated
                           brances     Land    Improvements    ments    Costs       Land      Improvements   Total     Depreciation
                          --------- ----------  -----------  ---------- -------  -----------  -----------  ----------- -----------
Properties the Partnership
   has Invested in Under
   Operating Leases:

    Arby's Restaurant:
      Greensburg, Indiana     -       $222,558            -    $640,529       -     $222,558     $640,529     $863,087    $277,946

    Church's Fried Chicken
      Restaurants:
          Gainesville, Florida-         83,542      208,564     192,227       -       83,542      400,791      484,333     179,132
          Orlando, Florida    -        177,440      270,985           -       -      177,440      270,985      448,425     123,543

    Golden Corral Buffet
      and Grill:
          Albuquerque, New Mex-co      717,708    1,018,823           -       -      717,708    1,018,823    1,736,531     476,014
          Amarillo, Texas     -        773,627      908,171           -       -      773,627      908,171    1,681,798     424,314
          Lawton, Oklahoma    -        559,095      838,642           -       -      559,095      838,642    1,397,737     391,831
          El Paso, Texas      -        670,916            -     837,317       -      670,916      837,317    1,508,233     374,538

    Hardee's Restaurant:
      Springfield, Tennessee  -        203,159      413,221           -       -      203,159      413,221      616,380     180,649

    IHOP Restaurants:
      Elgin, Illinois         -        426,831            -           -       -      426,831           (f)     426,831          (d)
      Manassas, Virginia      -        366,992      759,788           -       -      366,992      759,788    1,126,780     152,099

    Jack in the Box Restaurants:
      San Antonio, Texas      -        272,300            -           -       -      272,300           (f)     272,300          (d)
      Cleburne, Texas (h)     -        516,894      620,888           -       -      516,894      620,888    1,137,782      62,093
      Burley, Idaho (h)       -        453,108      507,477           -       -      453,108      507,477      960,585      50,752

    KFC Restaurant:
      Gainesville, Florida    -        321,789      287,429           -       -      321,789      287,429      609,218     126,149

    Shoney's Restaurant:
      Goodlettsville, Tennesse-        320,540      531,507           -       -      320,540      531,507      852,047     253,202

    Taco Bell Restaurant:
      Detroit, Michigan       -        171,240            -     385,709       -      171,240      385,709      556,949     179,112

    Taco Cabana Restaurant:
      Houston, Texas (h)      -        543,888      420,965           -       -      543,888      420,965      964,853      29,230

    Waffle House Restaurants:
      Clearwater Florida      -        130,499      268,580           -       -      130,499      268,580      399,079     125,067
      Roanoke, Virginia       -        119,533      236,219           -       -      119,533      236,219      355,752     109,996
      Atlantic Beach, Florida -        141,627      263,021           -       -      141,627      263,021      404,648     122,195

    Other:
      Hermitage, Tennessee    -        391,157            -     720,026       -      391,157      720,026    1,111,183     320,890
      Marietta, Georgia (g)   -        399,885            -           -       -      399,885            -      399,885          (g)
                                    -----------  -----------  ---------- -------  -----------  -----------  ----------- -----------

                                    $7,984,328   $7,554,280   $2,775,808      -   $7,984,328   $10,330,088  $18,314,416 $3,958,752
                                    ===========  ===========  ========== =======  ===========  ===========  =========== ===========

Properties the Partnership
   has Invested in Under
   Direct Financing Leases:

    IHOP Restaurant:
      Elgin, Illinois         -              -    1,057,282           -       -            -           (f)          (f)         (d)

    Hardee's Restaurant:
      Waynesburg, Ohio        -        136,242      441,299           -       -           (f)          (f)          (f)         (e)

    Jack in the Box Restaurant:
      San Antonio, Texas      -              -      420,568           -       -            -           (f)          (f)         (d)

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

                              -       $136,242   $1,919,149           -       -            -
                                    ===========  ===========  ========== =======  ===========

</TABLE>


<PAGE>


                 Life on Which
                  Depreciation in
Date               Latest Income
of Con-   Date      Statement is
struction Acquired    Computed
-------   -------    -----------





 1989    07/89         (b)



 1990    04/90         (b)
 1985    04/90         (b)



 1989    12/89         (b)
 1989    12/89         (b)
 1989    12/89         (b)
 1990    04/90         (b)


 1990    11/90         (b)


 1997    12/97         (d)
 1986    12/97         (b)


 1990    08/90         (d)
 2000    01/01         (b)
 2000    01/01         (b)


 1985    11/90         (b)


 1988    09/89         (b)


 1990    01/89         (b)


 1990    12/01         (b)


 1988    01/90         (b)
 1987    01/90         (b)
 1986    01/90         (b)


 1990    02/90         (b)
 1993    02/97         (g)










 1997    12/97         (e)


 1990    11/90         (e)


 1990    08/90         (d)




<PAGE>

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

        NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

                                December 31, 2003


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

 <c>
                                                                                                     Accumulated
                                                                           Cost                      Depreciation
                                                                   ----------------------        ---------------------

          Properties the Partnership has invested in
            Under Operating leases:

              Balance, December 31, 2000                                $     16,066,324              $     3,028,325
              Dispositions                                                      (102,365 )                     (5,357 )
              Acquisitions (h)                                                 3,063,220                           --
              Depreciation expense                                                    --                      358,396
                                                                   ----------------------        ---------------------

              Balance, December 31, 2001                                      19,027,179                    3,381,364
              Loss from casualty on assets (g)                                  (712,763 )                   (134,987 )
              Depreciation expense                                                    --                      366,079
                                                                   ----------------------        ---------------------

              Balance, December 31, 2002                                      18,314,416                    3,612,456
              Depreciation expense                                                    --                      346,296
                                                                   ----------------------        ---------------------

              Balance, December 31, 2003                                $     18,314,416              $     3,958,752
                                                                   ======================        =====================
</TABLE>



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

(c)      As of December 31, 2003, the aggregate cost of the Partnership's wholly
         owned  Properties was $19,024,266 for federal income tax purposes.  All
         of the leases are treated as  operating  leases for federal  income tax
         purposes.

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

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

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

(g)      In October  2002,  the Property in Marietta,  Georgia was  destroyed by
         fire.  As of December 31,  2002,  the total  undepreciated  cost of the
         building was removed from the accounts; therefore,  depreciation is not
         applicable.

(h)      During the year ended  December 31,  2001,  the  Partnership  purchased
         three real estate properties from CNL Funding 2001-A,  LP, an affiliate
         of  the  General  Partners,  for an  aggregate  cost  of  approximately
         $3,063,300.



<PAGE>




                                  EXHIBIT INDEX


Exhibit Number

(a)  Exhibits

       3.1    Certificate  of Limited  Partnership  of CNL Income  Fund VI, Ltd.
              (Included as Exhibit 3.3 to Registration Statement No. 33-23892 on
              Form S-11 and incorporated herein by reference.)

       4.1    Certificate  of Limited  Partnership  of CNL Income  Fund VI, Ltd.
              (Included as Exhibit 4.2 to Registration Statement No. 33-23892 on
              Form S-11 and incorporated herein by reference.)

       4.2    Agreement and  Certificate  of Limited  Partnership  of CNL Income
              Fund VI, Ltd. (Included as Exhibit 4.2 to Form 10-K filed with the
              Securities   and  Exchange   Commission  on  April  1,  1996,  and
              incorporated herein by reference.)

       10.1   Management  Agreement  between CNL Income  Fund VI,  Ltd.  and CNL
              Investment  Company  (Included  as Exhibit 10.1 to Form 10-K filed
              with the Securities and Exchange Commission on March 31, 1994, and
              incorporated herein by reference.)

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

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

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

       10.5   Assignment of Management  Agreement  from CNL APF Partners,  LP to
              CNL Restaurants XVIII, Inc. (Included as Exhibit 10.3 to Form 10-Q
              filed with the  Securities  and Exchange  Commission on August 13,
              2002, and incorporated herein by reference.)

       31.1   Certification  of Chief  Executive  Officer of  Corporate  General
              Partner Pursuant to Rule 13a-14 as Adopted Pursuant to Section 302
              of the Sarbanes-Oxley Act of 2002. (Filed herewith.)

       31.2   Certification  of Chief  Financial  Officer of  Corporate  General
              Partner Pursuant to Rule 13a-14 as Adopted Pursuant to Section 302
              of the Sarbanes-Oxley Act of 2002. (Filed herewith.)

       32.1   Certification  of Chief  Executive  Officer of  Corporate  General
              Partner Pursuant to 18 U.S.C.  Section 1350 as Adopted Pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)

       32.2   Certification  of Chief  Financial  Officer of  Corporate  General
              Partner Pursuant to 18 U.S.C.  Section 1350 as Adopted Pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)




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                                  EXHIBIT 31.1


<PAGE>

                                  EXHIBIT 31.2

<PAGE>


                                  EXHIBIT 32.1


<PAGE>



                                  EXHIBIT 32.2