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

                                    FORM 10-K

                        FOR ANNUAL AND TRANSITION REPORTS
                     PURSUANT TO SECTIONS 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

(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 001-15581

                         CNL RESTAURANT PROPERTIES, INC.
             (Exact name of registrant as specified in its charter)

          Maryland                                     59-3239115
(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:

                     Common Stock, $0.01 par value per share
                                (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 checkmark if the  registrant  is an  accelerated  filer (as
defined in Exchange Act Rules 12b2). Yes X No

         Aggregate market value of the voting stock held by nonaffiliates of the
registrant:  The registrant  has made three  offerings of Shares of common stock
(the "Shares") on Form S-11 under the  Securities  Act of 1933, as amended.  The
number of Shares  held by  non-affiliates  as of June 30,  2003 was  38,479,891.
Since no established market for such Shares exists, there is no market value for
such Shares. Each Share was originally sold at $20 per Share.

         The number of Shares of common stock  outstanding  as of March 10, 2004
was 45,248,670.

                      DOCUMENTS INCORPORATED BY REFERENCE:

Registrant  incorporates by reference portions of the CNL Restaurant Properties,
Inc.  Definitive  Proxy  Statement for the 2004 Annual  Meeting of  Stockholders
(Items  10,  11,  12, 13 and 14 of Part III) to be filed no later than April 30,
2004.


<PAGE>

                                     PART I

Item 1.  Business

CNL  Restaurant  Properties,  Inc.  ("CNL  Properties")  formerly  CNL  American
Properties, Inc., a Maryland corporation (the "Company"), is the nations largest
self-advised  real estate  investment  trust ("REIT")  focused on the restaurant
industry.  The Company operates as a holding company for two primary  subsidiary
operating  companies,   CNL  Restaurant  Investments,   Inc  ("CNL-Investments")
formerly CNL  Restaurant  Properties,  Inc.  and CNL  Restaurant  Capital  Corp.
("CNL-Capital Corp.") formerly CNL Franchise Network Corp. Please see note 14 of
the  Company's  Consolidated  Financial  Statements  appearing in Item 8 of this
report for certain financial information about these two business segments.  The
Company was founded in 1994 and at December 31, 2003, has financial interests in
approximately  1,000  properties  diversified  among  more  than 120  restaurant
concepts in 43 states. The Company's total real estate holdings subject to lease
includes over 640 properties,  of which 90 properties are classified as held for
sale. At December 31, 2003, the servicing  portfolio of net lease properties and
mortgages includes  approximately  2,200 units, of which over 1,200 are serviced
on behalf of third parties.

In June 2000 the Company divided its operations into two business segments, real
estate and specialty  finance,  in order to distinguish  between its real estate
segment,  an entity with a strong  capital  base and stable  cash  flows,  and a
specialty finance growth business  partnered with a large financial  institution
to provide an additional source of earnings and liquidity.

   o  The real estate segment, operated principally through the Company's wholly
      owned  subsidiary CNL- Investments and its  subsidiaries,  is charged with
      overseeing  and  maximizing  value on a portfolio of  primarily  long-term
      triple-net lease  properties.  Those  responsibilities  include  portfolio
      management,   property   management   and   dispositions.   In   addition,
      CNL-Investments manages approximately $525 million in affiliate portfolios
      and earns management fees related thereto.

   o  The specialty finance segment, operated through the Company's wholly-owned
      subsidiary  CNL-Capital  Corp. is partnered with a financial  institution,
      Bank of  America  ("the  Bank"),  in owning  CNL  Restaurant  Capital,  LP
      ("CNL-Capital")  formerly known as CNL Franchise Network, LP. CNL Capital,
      through its subsidiaries,  delivers financial solutions principally in the
      forms of  financing,  advisory  and other  services to national and larger
      regional  restaurant  operators.  It  does  this  primarily  by  acquiring
      restaurant real estate properties, which have been subject to a triple-net
      lease,  utilizing short-term debt and generally selling such properties at
      a profit.

In June 2000, the Company formed CNL-Capital and contributed  certain assets and
operations in exchange for an 84.39 percent  interest.  The Bank contributed its
franchise finance  originations  group in exchange for a 9.18 percent non-voting
redeemable  interest in the  Partnership.  The Bank also served as lender at the
time of the alliance on a $500 million  warehouse  credit  facility and a $43.75
million  subordinated  debt facility (the  "Subordinated  Debt  Facility").  The
strategic  alliance  with the Bank  reduced  the  Company's  reliance  on public
markets to raise capital by  broadening  the  Company's  financial  products and
offerings and enhancing the Company's  securitization platform. The Company also
issued  a 6.43  percent  limited  partnership  interest  in  CNL-Capital  to CNL
Financial  Group,  Inc.,  ("CFG") an affiliate of a director of the Company,  in
exchange  for  the  operations  of CNL  Advisory  Services,  Inc.  ("CAS").  CAS
specializes in providing  merger,  acquisition  and other  advisory  services to
restaurant operators and expands the Company's services to the sector. Effective
January 1, 2003 CNL-Capital modified certain terms relating to the alliance with
the  Bank  that  resulted  in  the  Bank  reducing  its  ownership  interest  in
CNL-Capital.  In exchange for the  reduction,  the Bank agreed to assume certain
costs of its  portfolio  operations  and decreased the referral fees paid by the
bank to CNL-Capital under the referral program between the Bank and CNL-Capital.
In  addition,  an  affiliate  of the  Company's  chairman  agreed to reduce  its
interest in CNL-Capital.  As a result,  the Company's  effective interest in the
specialty  finance  operations  increased from 84.39 percent to 96.26 percent on
January 1, 2003.

Effective  January 1, 2001,  CNL-Capital Corp elected to be treated as a taxable
REIT  subsidiary  ("TRS")  pursuant to the provisions of the REIT  Modernization
Act. As a TRS,  CNL-Capital  Corp.  engages in activities that would  previously
have caused income to the Company from CNL-Capital to be disqualified from being
eligible  REIT  income  under the  federal  income  tax rules.  Now  CNL-Capital
earnings  are  subject  to  tax,  but  management  can  control  the  timing  of
distributions  to the Company.  CNL-Capital  Corp.  originates  triple-net lease
properties for sale to third parties.  CNL-Capital Corp. also performs net lease
and loan  servicing on behalf of third  parties.  Also,  certain  activities  of
CNL-Investments  are  conducted  in a  subsidiary  that has made a  similar  TRS
election.

In January 2004, the Company amended the  Subordinated  Debt Facility  agreement
while at the same time making a $10 million  prepayment  reducing the balance to
$33.75 million. The Subordinated Debt Facility has a conversion feature to allow
the Bank,  subsequent to a specified  conversion  date, to have the  outstanding
note converted into a 10.11 percent of additional limited partnership  interests
in CNL-Capital.  This conversion  feature was reduced from 13.1 percent when the
agreement was amended in January 2004. The Bank's interest in the Partnership on
a fully  diluted basis after a conversion  of the fully  committed  Subordinated
Debt Facility would be 12.85 percent.  As of December 31, 2003, the Bank had not
exercised its conversion option.

When the  Company was  created in 1994,  the intent was to provide  stockholders
liquidity by December 31, 2005 through  either  listing on a national  exchange,
merging with another  public company or  liquidating  its assets.  The Company's
officers  and  directors  continue  to actively  monitor the public  markets for
opportunities to satisfy the liquidity  objectives of the Company. The Company's
board does not intend to  liquidate  the  Company.  To comply  with  certain tax
guidelines governing the significance of taxable REIT subsidiaries,  the Company
may pursue other  alternatives  relative to CNL-Capital Corp. that would provide
stockholder liquidity for all or a portion of the Company's investment.

Leases

As of December 31, 2003,  the Company's  real estate  segment,  CNL-Investments,
owns,  either  directly or indirectly  through joint venture  arrangements,  544
properties,  which  are  generally  subject  to  long-term,  triple-net  leases.
Although there are variations in the specific terms of the leases, the following
summarizes  the general  structure of the  Company's  leases.  The leases of the
properties  provide for initial terms generally  ranging from 10 to 25 years and
expire between 2004 and 2024.  The leases are on a triple-net  basis which means
the lessee is  responsible  for all repairs  and  maintenance,  property  taxes,
insurance  and  utilities.  The leases  provide for minimum  base annual  rental
payments (payable in monthly installments) ranging from approximately $41,000 to
$369,000.  The majority of the leases also provide that, commencing in specified
lease years  (generally  the sixth lease  year),  the annual base rent  required
under the terms of the lease will increase. In addition,  certain leases provide
for percentage rent based on sales in excess of a specified amount.

Generally,  the leases  provide for two to five  five-year  or ten-year  renewal
options.  Lessees of 439 of the 544 properties also have been granted options to
purchase the property at the property's then fair market value after a specified
portion of the lease term has  elapsed.  Fair  market  value will be  determined
through an appraisal by an independent appraisal firm. The option purchase price
may equal the Company's  original cost to purchase the property plus a specified
percentage from the date of the lease or a specified percentage of the Company's
purchase  price, if that amount is greater than the property's fair market value
at the time the purchase option is exercised.  The leases also generally provide
that,  in the event the  Company  wishes to sell the  property  subject  to that
lease,  the  Company  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 Company has received for the sale of the property.

Major Tenants

During 2003,  no single  lessee,  borrower (or  affiliated  groups of lessees or
borrowers)  or  restaurant  chain  contributed  more  than  ten  percent  of the
Company's  revenues  relating to its  properties,  loans and  secured  equipment
leases.  In the event that  certain  lessees,  borrowers  or  restaurant  chains
contribute  more than ten percent of the Company's  rental,  earned and interest
income in future  years,  any failure of such  lessees,  borrowers or restaurant
chains  could  materially  affect  the  Company's  income.  Additionally,  as of
December 31, 2003, no single lessee or borrower,  or group of affiliated lessees
or  borrowers,  leased  properties  or was  the  borrower  under  loans  with an
aggregate carrying value in excess of 20 percent of total assets of the Company.



<PAGE>


Real Estate and Restaurant Assets Held for Sale

The Company  sells  certain real estate  properties  to private  investors as an
alternative  to either  retaining the  properties  as a long-term  investment or
offering  to sell net lease cash flows in the  securitization  marketplace.  The
accounting for these properties  differs from that of similar properties without
this designation as the Company does not record  depreciation or accrued rent on
these  properties.  The  properties  held for sale are  contemplated  being sold
within the next year.

During 2002 the Company  purchased  the  operations of certain  restaurants.  In
December 2003, the Company decided to dispose of these restaurant operations and
as of December 31, 2003, had classified the restaurant assets as held for sale.

From time to time, certain properties classified as long-term investments may be
subsequently  re-designated  to held for sale  classification.  The  company has
re-designated 30 and 83 properties during 2003 and 2002, respectively.

Mortgage Loans Held for Sale

Mortgage  loans held for sale are wholly or  partially  collateralized  by first
mortgages on the land and/or buildings of franchised  restaurant  businesses and
consist of  fixed-rate  loans at December 31,  2003.  The loans carry a weighted
average  interest  rate of 8.33 percent.  The mortgage  loans are due in monthly
installments  with  maturity  dates  ranging from 2004 to 2022.  The  fixed-rate
mortgage loans  generally  prohibit  prepayment  for certain  periods or include
prepayment penalties.

Mortgage, Equipment and Other Notes Receivable

Mortgage,   equipment  and  other  notes  receivable  are  wholly  or  partially
collateralized by first mortgages on the land and/or buildings, the equipment or
other assets of franchised restaurant  businesses.  The loans are due in monthly
installments with maturity dates ranging from 2004 to 2023.

Available Information

The Company makes  available  free of charge on or through its Internet  website
(http://www.cnlonline.com)  the Company's Annual Report on Form 10-K,  Quarterly
Reports  on  Form  10-Q,  Current  Reports  on Form  8-K,  and,  if  applicable,
amendments  to those  reports  filed or furnished  pursuant to Section  13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") as
soon as  reasonably  practicable  after the  Company  electronically  files such
material with, or furnishes it to, the Securities and Exchange Commission.

Competition

The  fast-food,   family-style   and  casual  dining   restaurant   business  is
characterized by intense  competition.  The operators of the restaurants located
on the  Company'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.

Local  competition  may enhance a restaurant's  success rather than detract from
it. Many successful  fast-food,  family-style and casual dining  restaurants are
located  in  "eating  islands",  areas  within  which a variety  of  restaurants
operate.  This variety allows diners an  opportunity  to diversify  their eating
habits,  giving them an  incentive  to return in the future.  As a result,  fast
food, family style and casual dining  restaurants  frequently  experience better
operating results when there are other restaurants in the area.

The  Company  competes  with other  persons and  entities  in locating  suitable
properties to acquire and in locating  purchasers for properties  held for sale.
The Company also competes with other financing  sources such as banks,  mortgage
lenders,  real estate brokers and sale/leaseback  companies for suitable tenants
for its properties and borrowers for its mortgage loans.

The  recessionary  economy and historically low interest rates at which mortgage
financing can be obtained  contributed  to a decline in net lease volume in 2003
while the low interest  rates made debt financing  more  attractive.  Management
believes that the Company's  volume levels may increase in the future due to the
projected  rebound in the economy as well as the  opportunities  afforded by the
continued  consolidation  in the financing  arena and the  Company's  ability to
provide an array of  financial  products.  Competition  in the  financing  arena
continues to be significant despite the exit of numerous competitors.  Remaining
competitors provide meaningful competition.

Employees

As of December 31, 2003, the Company had 117 associates.


Item 2.  Properties

As of December 31, 2003,  the Company's  real estate  segment,  CNL-Investments,
owned,  either directly or indirectly  through joint venture  arrangements,  544
properties,  located in 40 states.  Reference  is made to the  Schedule  of Real
Estate and Accumulated  Depreciation filed with this report for a listing of the
properties and their respective costs.

As of December  31, 2003,  the Company  owned 469 of the 544  properties  in fee
simple and ten properties through joint venture arrangements. As of December 31,
2003, 36 properties consisted of land only.

As of December 31, 2003, 39 properties  consisted of building  only. The Company
does not own the underlying  land. In connection with the acquisition of each of
these properties, the Company entered into either a tri-party agreement with the
tenant  and the owner of the land or an  assignment  of  interest  in the ground
lease with the landlord, as described in Item 1. Business-Leases.

As of December 31, 2003,  the Company had pledged 379  properties  as collateral
related to bonds payable.

Description of Properties

Land. The Company's property lot sizes range from approximately 6,000 to 199,000
square feet depending  upon building size and local  demographic  factors.  Land
owned is zoned for commercial use which, prior to acquisition, were reviewed for
traffic patterns and volume.

The following table lists the properties owned as of December 31, 2003 by state.
More detailed information  regarding the location of the properties is contained
in the  Schedule of Real  Estate and  Accumulated  Depreciation  filed with this
report.


<PAGE>


                                                    Total Number of
                    State                        Restaurant Properties

                 Alabama                                   13
                 Arizona                                   13
                 California                                30
                 Colorado                                  13
                 Connecticut                                1
                 Delaware                                   1
                 Florida                                   75
                 Georgia                                   21
                 Idaho                                      3
                 Illinois                                  24
                 Indiana                                    8
                 Iowa                                       7
                 Kansas                                     5
                 Kentucky                                   6
                 Louisiana                                 10
                 Maryland                                   5
                 Michigan                                  12
                 Minnesota                                  8
                 Mississippi                                5
                 Missouri                                  26
                 Nebraska                                   3
                 Nevada                                     3
                 New Hampshire                              2
                 New Jersey                                 6
                 New Mexico                                 2
                 New York                                   4
                 North Carolina                            19
                 Ohio                                      47
                 Oklahoma                                   4
                 Oregon                                     7
                 Pennsylvania                              10
                 Rhode Island                               1
                 South Carolina                             9
                 Tennessee                                 26
                 Texas                                     70
                 Utah                                       4
                 Virginia                                  15
                 Washington                                13
                 West Virginia                             10
                 Wisconsin                                  3
                                                        ------
                 TOTAL PROPERTIES                         544
                                                        ======

Buildings.  The buildings  generally are rectangular  and are  constructed  from
various  combinations of stucco,  steel,  wood,  brick and tile.  Building sizes
range from approximately  1,000 to 12,700 square feet.  Generally,  buildings on
properties  owned are  freestanding  and are  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.  Depreciation
expense is computed  for  buildings  and  improvements  using the  straight-line
method using a depreciable life of 39 years for federal income tax purposes.  As
of December  31, 2003 the  aggregate  depreciated  cost basis of the  properties
owned (including properties owned through joint ventures) for federal income tax
purposes was $621.5 million.



<PAGE>


The  following  table  lists the  properties  owned as of  December  31, 2003 by
restaurant chain.

               Restaurant Chain                           Number of Properties

               Jack in the Box                                       54
               International House of Pancakes                       46
               Pizza Hut                                             44
               Golden Corral                                         36
               Arby's                                                35
               Bennigan's                                            26
               Burger King                                           24
               Chevy's Inc.                                          18
               Ruby Tuesday                                          18
               Steak & Ale                                           18
               Baker's Square                                        17
               Denny's                                               15
               Applebee's                                            15
               Boston Market                                         13
               Wendy's                                               12
               Other                                                153
                                                                   -----
               TOTAL:                                               544
                                                                   =====

Management considers the properties to be well maintained and sufficient for the
Company's  operations and believes they are adequately covered by insurance.  In
addition,  the Company has obtained contingent  liability and property coverage.
This  insurance  is intended to reduce the  Company'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 Company leases the properties to operators of selected national and
regional  fast-food  restaurant  chains. The leases are generally on a long-term
"triple-net"  basis,  meaning  that  the  tenant  is  responsible  for  repairs,
maintenance,  property taxes,  utilities and insurance.  Generally,  a lessee is
required,  under the terms of its lease agreement,  to make capital expenditures
to refurbish restaurant buildings, premises, signs and equipment so as to comply
with the lessee's obligations,  if applicable,  under the franchise agreement to
reflect the current  commercial  image of its  restaurant  chain.  These capital
expenditures are required to be paid by the lessee during the term of the lease.
The terms of the leases of the properties  owned by the Company are described in
Item 1. Business - Leases.

The following is a schedule of the average rent per property for the years ended
December 31:

<TABLE>
<CAPTION>

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

Rental Revenues (1)             $ 72,753,603   $   74,504,692     $84,775,244     $91,520,103    $61,907,812
Properties (2)                           515              552             644             725            642
Average Rent Per Property         $  141,269   $      134,972       $ 131,639       $ 126,235      $  96,430
Occupancy                                 95%              95%             92%             95%            97%
</TABLE>

(1)  Rental  income  includes  the  Company's  share of rental  income  from the
     properties owned through joint venture  arrangements.  Rental revenues have
     been  adjusted,  as  applicable,  for any amounts for which the Company has
     established  an allowance for doubtful  accounts.  Rental  revenues for all
     periods   presented   include  rental  revenues  relating  to  discontinued
     operations  for  properties  that  were  either  disposed  of or that  were
     classified as held for sale during the year ended December 31, 2003.

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

The  following  table lists  properties  as of  December  31, 2003 by tenant and
includes  average age of buildings,  annualized total rental revenue and percent
of total revenue.  To calculate  annualized  total rental  revenue,  the monthly
rental  revenue for each  restaurant  property  owned and leased at December 31,
2003 was multiplied by 12 to present  annualized  rental revenues for a 12 month
period.  Contingent  rental income was excluded in the calculation of annualized
total rental revenue.
<TABLE>
<CAPTION>

 <c>
                                                    Total
                                                  Number of        Average Age
                                                  Restaurant      of Buildings       Annualized       Percent of
                                                  Properties         (years)        Total Rental     Total Rental
  Tenant                                             (1)                             Revenue (2)        Revenue
                                                -------------    --------------    --------------   --------------

  S&A Properties Corporation                            35             22.1         $  6,019,849             9.31%
  IHOP Properties, Inc.                                 46              6.4            5,426,195             8.39%
  Golden Corral Corporation                             30              5.1            4,989,411             7.72%
  Jack in the Box, Inc.                                 26              5.2            3,224,498             4.99%
  Jack in the Box Eastern Division, L.P.                29              5.1            3,024,450             4.68%
  Vicorp Restaurant, Inc.                               18             21.7            2,418,886             3.74%
  Boston Market Corp.                                   13              6.8            1,628,959             2.52%
  Pollo Operations, Inc.                                10              8.9            1,446,120             2.24%
  Woodland Group, Inc.                                  10              8.4            1,403,350             2.17%
  Other                                                298              8.8           35,087,731            54.26%
                                                     ------                         -------------      ------------
  Total                                                515                           $64,669,449           100.00%
                                                     ------                         -------------      ------------
</TABLE>

(1)  Excludes  properties that were vacant at December 31, 2003 and that did not
     generate rental revenues during the year.

(2)  The Company has straight-lined  the contractual  increases in rental income
     over the life of each of the leases in order to calculate rental revenue in
     accordance with generally accepted accounting principles.

The  following  table shows the  aggregate  number of leases  which  expire each
calendar  year  through  the year 2018,  as well as the  number of leases  which
expire after  December 31, 2018.  The table does not reflect the exercise of any
of the renewal options provided to the tenant under the terms of such leases.

<TABLE>
<CAPTION>

 <c>
                                                                              Base Rent
                                                              --------------------------------------------
         Year                              Number (1)              Amount (2)                 Percent
                                      ------------------      ------------------       -------------------

          2004                                     1                  $  100,935                  0.16%
          2005                                     4                     427,799                  0.66%
          2006                                     3                     311,337                  0.48%
          2007                                     1                     109,811                  0.17%
          2008                                     1                     117,297                  0.18%
          2009                                     1                      84,059                  0.13%
          2010                                    12                   1,224,173                  1.89%
          2011                                    16                   2,210,272                  3.42%
          2012                                    26                   4,033,945                  6.24%
          2013                                    22                   3,272,302                  5.06%
          2014                                    69                   9,320,587                 14.41%
          2015                                    34                   4,528,935                  7.00%
          2016                                    61                   4,357,442                  6.74%
          2017                                    51                   6,561,902                 10.15%
          2018                                   117                  15,923,362                 24.62%
       Thereafter                                 96                  12,085,291                 18.69%
                                            ---------             ---------------             ----------
         Total                                   515                  64,669,449                100.00%
                                            =========             ===============             ==========
</TABLE>

(1)  Excludes  properties for which the leases have been terminated and excludes
     properties leased on a month to month basis.

(2)  The Company has straight-lined  the contractual  increases in rental income
     over the life of each of the leases in order to calculate rental revenue in
     accordance with generally accepted accounting principles.


Item 3.  Legal Proceedings

As of December 31,  2003,  neither the Company nor any of its  properties  was a
party to or the subject of any material pending legal proceedings.


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

         None.

                                     PART II

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

As of March 1, 2004,  there were 32,378  stockholders of record of common stock.
There is no public  trading market for the Company  Shares,  and even though the
Company  intends to list the  Company  Shares on the New York Stock  Exchange or
other  national  securities  exchange or  over-the-counter  market no later than
December 31, 2005,  there is no  assurance  that listing will occur.  If listing
occurs,  there is no assurance  that a public market for the Company Shares will
develop.  In October  1998,  the Board of  Directors  elected to  implement  the
Company's  redemption  plan.  Under the redemption  plan, the Company elected to
redeem Company Shares,  subject to certain  conditions and  limitations.  During
1999, the Company  terminated the redemption  plan. As of December 31, 2003, the
estimated fair value per share is $17.20.  (For Florida intangible tax purposes,
this is the  equivalent of the Just Value per share.) The Company  obtained this
valuation  from a third party firm,  which based its valuation on an analysis of
comparable  publicly traded real estate  investment trusts and a discounted cash
flow analysis. Because the Company Shares are not publicly traded, investors are
cautioned  that the estimated  fair value of the shares may not be realized upon
sale of the shares.

Stockholders of the Company sold and purchased shares of common stock subject to
negotiation by the purchaser and the selling  stockholder.  The following  table
reflects  the high,  low and average  sales  prices for  transfers  of shares of
common stock for each calendar quarter 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                   $19.00        $10.24         $15.28        $20.00        $11.20        $14.15
   Second Quarter                   20.00         12.81          16.04         19.00         12.94         14.54
   Third Quarter                    20.00         10.00          16.18         19.00         11.88         15.00
   Fourth Quarter                   21.29         13.10          15.73         19.00          7.00         12.87
</TABLE>

(1)  A total of 207,184 and 239,692 shares were  transferred for the years ended
     December 31, 2003 and 2002, respectively.

The Company expects to make  distributions to the  stockholders  pursuant to the
provisions of the Articles of  Incorporation.  For the years ended  December 31,
2003 and 2002,  the Company  declared  cash  distributions  of $69.0 million and
$68.0 million,  respectively, to stockholders.  For federal income tax purposes,
39 percent and 0 percent of distributions  paid in 2003 and 2002,  respectively,
were  considered  to  be  ordinary  income  and  61  percent  and  100  percent,
respectively, were considered to be a return of capital.


<PAGE>


The following table presents total  distributions  and distributions per Company
Share:
<TABLE>
<CAPTION>

 <c>
                                                   (In Thousands, except for per share data)
                                      First          Second          Third          Fourth          Year
                                   -----------     -----------    -----------     -----------    -----------
        2003 Quarter
        ------------
        Total distributions
            declared                   $17,251         $17,250       $ 17,251       $ 17,250         $69,002
        Distributions per
            share                         0.38            0.38           0.38           0.38            1.52

        2002 Quarter
        ------------
        Total distributions
            declared                   $16,803         $16,803       $ 17,134       $ 17,251         $67,991
        Distributions per
            share                         0.38            0.38           0.38           0.38            1.52
</TABLE>

In March 2004, the Company  declared  distributions  to  stockholders of $17.251
million ($0.38124 per Share) payable in March 2004.

The  Company  intends  to  continue  to  declare  distributions  of  cash to the
stockholders.

Equity Compensation Plan Information
<TABLE>
<CAPTION>

 <c>
                                                                                        Number of securities
                                Number of securities                                    remaining available for
                                to be issued upon                                       future issuance under
                                exercise of                 Weighted-average            equity compensation
                                outstanding options,        exercise price of           plans excluding
                                warrants and rights         outstanding options,        securities reflected in
  Plan Category                           (a)               warrants and rights         column (a)
  --------------------------    -----------------------     ------------------------    ------------------------

  Equity compensation
  plans approved by
  security holders                                --              (1)                     $       4,500,000  (2)
  Equity compensation
  plans not approved
  by security holders                             (3)             (3)                                        (3)
                                -----------------------                                 ------------------------
      Total                                       --                                      $       4,500,000
                                =======================                                 ========================
</TABLE>

(1)  During 1999, the  stockholders  approved a performance  incentive plan (the
     "Plan") which became  effective as of February 23, 1999. As of December 31,
     2003, the Company has not granted any awards under the Plan.

(2)  The Plan authorizes the issuance of up to 4,500,000 shares of the Company's
     common  stock  upon the  exercise  of stock  options  (both  incentive  and
     nonqualified),  stock appreciation rights and the award of restricted stock
     ("Stock  Award")  provided  that the  aggregate  number of shares of Common
     Stock that may be issued  pursuant to Options,  stock  appreciation  rights
     ("SARs"),  and Stock Awards granted under the Plan increases  automatically
     to 9,000,000 shares and 12,000,000 shares,  respectively,  when the Company
     has issued and  outstanding  150,000,000  shares  and  200,000,000  shares,
     respectively,  of common stock.  The Plan  terminates on February 23, 2009.
     Key employees,  officers,  directors and persons  performing  consulting or
     advisory  services  for the  Company or its  affiliates,  as defined in the
     Plan,  who are  designated by the  committee  administering  the Plan,  are
     eligible to receive  awards under the Plan.  Awards may be made in the form
     of stock options,  stock awards,  SARs,  Phantom Stock Awards,  Performance
     Awards and Leveraged  Stock Purchase Awards as defined further in the Plan.
     As of December 31, 2003, the Company had not made any awards related to the
     Plan.


<PAGE>


(3)  As of  December  31,  2003,  the  Company  does  not  maintain  any  equity
     compensation plans not approved by security holders.

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

 <c>
                                                 (In Thousands, except for share and per share data)
                                    Year Ended      Year Ended      Year Ended       Year Ended       Year Ended
                                   December 31,    December 31,    December 31,     December 31,     December 31,
                                       2003            2002            2001             2000             1999
                                  ---------------- --------------  --------------  ---------------  ----------------

Continuing Operations:
  Revenues (1)                       $    114,337    $   336,163      $  274,413     $    113,413       $    70,764
                                  ================ ==============  ==============  ===============  ================

Earnings/(loss) from
   continuing operations, net (1)     $     8,176    $    27,407     $   (15,739 )   $     (6,409 )    $    (52,571 )

Discontinued Operations:
  Earnings/(loss) and gains from
   discontinued operations,
   net (1)                                 34,264          8,183          (4,872 )          9,336             2,734
                                  ---------------- --------------  --------------  ---------------  ----------------

Earnings/(loss) before
   cumulative effect if
   accounting change                       42,440         35,590         (20,611 )          2,927           (49,837 )

Cumulative effect of accounting
   change                                      --             --          (3,841 )             --                --
                                  ---------------- --------------  --------------  ---------------  ----------------

Net income/(loss)                     $    42,440     $   35,590      $  (24,452 )    $     2,927      $    (49,837 )
                                  ================ ==============  ==============  ===============  ================

Earnings/(loss) per share (1):
  Continuing operations (1)            $     0.18     $     0.61      $    (0.36 )    $     (0.15 )     $     (1.33 )
  Discontinued operations (1)                0.76           0.19           (0.11 )           0.22              0.07
  Cumulative effect of
     accounting change                         --             --           (0.09 )             --                --

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

Net income/(loss) per share           $      0.94     $     0.80      $    (0.56 )     $     0.07       $     (1.26 )
                                  ================ ==============  ==============  ===============  ================

Funds from operations (2)             $    49,504    $    44,710      $   (6,029 )    $    16,007       $    35,956
                                  ================ ==============  ==============  ===============  ================

Cash distributions declared           $    69,002    $    67,991      $   66,466      $    66,329       $    60,079
                                  ================ ==============  ==============  ===============  ================

Cash distributions declared
  per share                           $      1.52     $     1.52       $    1.52      $      1.52       $      1.52
                                  ================ ==============  ==============  ===============  ================

Weighted average shares
  outstanding:
     Basic                             45,248,670     44,620,235      43,589,985       43,495,919        39,402,941
                                  ================ ==============  ==============  ===============  ================
     Diluted                           45,248,670     44,620,235      43,589,985       43,495,919        39,402,941
                                  ================ ==============  ==============  ===============  ================

At December 31:
     Total assets                   $   1,298,116   $  1,383,450     $ 1,560,117    $   1,605,944      $   1,138,193
                                  ================ ==============  ==============  ===============  ================
     Long-term obligations           $    656,321    $   671,465      $  484,815     $    398,100      $    140,504
                                  ================ ==============  ==============  ===============  ================
     Total stockholders' equity      $    479,886    $   494,151      $  526,182     $    607,738      $    672,214
       (3)                        ================ ==============  ==============  ===============  ================
</TABLE>

For  a  discussion  of  material  events  affecting  the  comparability  of  the
information  reflected  in the  selected  financial  data,  refer to the section
captioned  "Management's  Discussion  and  Analysis of Financial  Condition  and
Results of  Operations"  in Item 7.

(1)  The results of operations  relating to properties that were either disposed
     of or that were  classified as held for sale during the year ended December
     31, 2003 are reported as discontinued operations for all periods presented.

(2)  Funds from operations  ("FFO"),  based on the revised definition adopted by
     the  Board  of  Governors  of  the  National  Association  of  Real  Estate
     Investment Trusts ("NAREIT") and as used herein, except for the add back of
     the advisor  acquisition  expense of $76.3 million  during 1999,  means net
     income/(loss)  determined in accordance with Generally Accepted  Accounting
     Principles  ("GAAP"),  excluding  gains  (losses) from sales of depreciable
     operating  property,  excluding  extraordinary  items (as defined by GAAP),
     including  depreciation  and  amortization  of real estate assets and after
     adjusting for unconsolidated partnerships and joint venture. As a result of
     the restatement,  FFO does not include add backs for impairment  provisions
     or capital lease  principal  components.  These amounts for the years ended
     December 31, 2003,  2002,  2001, 2000 and 1999 (in thousands) were $11,542,
     $13,335,   $26,018,  $2,576  and  $0,  respectively,   for  the  impairment
     provisions and $1,725, $1,852, $2,384, $2,242 and $1,629, respectively, for
     capital lease  principal  components.  Funds from  operations are generally
     considered  by  industry  analysts  to be the most  appropriate  measure of
     performance.  FFO (i) does not  represent  cash  generated  from  operating
     activities determined in accordance with GAAP (which, unlike FFO, generally
     reflects all cash effects of transactions  and other events that enter into
     the determination of net earnings),  (ii) is not necessarily  indicative of
     cash flow  available to fund cash needs and (iii) should not be  considered
     as an alternative to net earnings  determined in accordance with GAAP as an
     indication of the  Company's  operating  performance,  or to cash flow from
     operating  activities  determined in  accordance  with GAAP as a measure of
     either   liquidity  or  the  Company's   ability  to  make   distributions.
     Accordingly,  the  Company  believes  that in order to  facilitate  a clear
     understanding  of the  consolidated  historical  operating  results  of the
     Company,  FFO should be  considered in  conjunction  with the Company's net
     earnings  and  cash  flows as  reported  in the  accompanying  consolidated
     financial  statements and notes thereto.  However, the Company's measure of
     FFO may not be  comparable  to  similarly  titled  measures  of other REITS
     because these REITS may not apply the  definition of FFO in the same manner
     as the Company.

(3)  Includes  subscriptions  received of $0.2 million  during 1999 and includes
     $1.5  million  of stock  issuance  costs  during  each of the  years  ended
     December 31,  2003,  2002,  2001 and 2000 and $1.7 million  during the year
     ended  December  31,  1999.   Stock  issuance  costs  consists  of  selling
     commissions, marketing support and due diligence expense reimbursement fees
     during 1999 and organizational and offering expenses.  Stock issuance costs
     for 2003, 2002, 2001 and 2000 consist of soliciting dealer servicing fees.



<PAGE>


The following is a reconciliation of net earnings to FFO:
<TABLE>
<CAPTION>

 <c>
                                                                      (In Thousands)
                                            2003           2002            2001            2000           1999
                                        -------------  -------------   --------------  -------------  --------------

Net income/(loss)                         $   42,440     $   35,590      $   (24,452 )    $   2,927      $  (49,837 )

Depreciation
    Continuing operations                      9,997         10,512           11,483         12,198           7,460
    Discontinued operations                      665          1,693            1,931            149           1,210

Loss/(Gain) on sale of property
    Continuing operations                          5            181            1,141            721             781
    Discontinued operations                   (3,633 )       (3,295 )             --             --              --

Amortization of joint venture costs               30             29               27             12               9

Advisor acquisition expense                       --             --               --             --          76,333

Cumulative effect of accounting
    change                                        --             --            3,841             --              --
                                        -------------  -------------   --------------  -------------  --------------

FFO (*)                                   $   49,504     $   44,710      $    (6,029 )   $   16,007      $   35,956
                                        =============  =============   ==============  =============  ==============
</TABLE>


(*)  - The Company  restated FFO for the years ended  December  31, 2002,  2001,
     2000 and 1999 to conform to 2003  presentation  that conforms to the NAREIT
     definition  of FFO,  except for the add back by the  Company of the advisor
     acquisition expense of $76.3 million during 1999.


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

The following information,  including,  without limitation, the Quantitative and
Qualitative  Disclosures About Market Risk that are not historical facts, may be
forward-looking  statements  within the meaning of Section 27A of the Securities
Act of 1933 and  Section  21E of the  Securities  Exchange  Act of  1934.  These
statements  generally are  characterized  by the use of terms such as "believe,"
"expect"  and  "may."  Although  the  Company  believes  that  the  expectations
reflected  in  such   forward-looking   statements  are  based  upon  reasonable
assumptions, the Company's actual results could differ materially from those set
forth  in the  forward-looking  statements.  Factors  that  might  cause  such a
difference  include:  changes in general  economic  conditions,  changes in real
estate  conditions,  availability of capital from borrowings under the Company's
credit  facilities,   the  availability  of  other  debt  and  equity  financing
alternatives,  changes in interest  rates  under the  Company's  current  credit
facilities and under any  additional  variable rate debt  arrangements  that the
Company  may enter into in the future,  the ability of the Company to  refinance
amounts  outstanding  under its credit facilities at maturity on terms favorable
to the Company,  the ability of the Company to locate  suitable  tenants for its
restaurant  properties  and  borrowers  for its mortgage  loans,  the ability of
tenants and borrowers to make payments under their  respective  leases,  secured
equipment  leases or  mortgage  loans,  the  ability of the  Company to re-lease
properties  that are currently  vacant or that may become vacant and the ability
of the Company to securitize or sell mortgage loans or net lease properties on a
favorable and timely basis. Given these uncertainties, readers are cautioned not
to place undue reliance on such statements.

Organization and Business

CNL Restaurant Properties,  Inc.  ("CNL-Properties" or the "Company"),  formerly
CNL American  Properties Fund, Inc., is the nation's largest  self-advised  real
estate investment trust ("REIT") focused on the restaurant industry. The Company
has two primary subsidiary operating companies, CNL Restaurant Investments, Inc.
and CNL Restaurant Capital Corp. The Company was founded in 1994 and at December
31, 2003, has financial interests in approximately 1,000 properties  diversified
among more than 120 restaurant  concepts in 43 states.  The Company's total real
estate  holdings  subject  to lease  include  over 640  properties,  of which 90
properties  are classified as held for sale. At December 31, 2003, the servicing
portfolio of net lease properties and mortgages consists of approximately  2,200
units, of which over 1,200 are serviced on behalf of third parties.

The Company operates two business segments - real estate and specialty finance.

   o  The real estate segment, operated principally through the Company's wholly
      owned  subsidiary CNL Restaurant  Investments,  Inc.  ("CNL-Investments"),
      formerly  known as CNL  Restaurant  Properties,  Inc.  (a name used by the
      Company effective June 27, 2003), and its subsidiaries, manage a portfolio
      of primarily long-term triple-net lease properties. Those responsibilities
      include portfolio  management,  property management,  dispositions and the
      opportunistic  acquisition and profitable sale of real estate investments.
      In  addition,  CNL-Investments  services  approximately  $525  million  in
      affiliate  real  estate  portfolios  and  earns  management  fees  related
      thereto.  Revenues from the real estate segment represented  approximately
      75 percent,  26 percent and 32 percent of the Company's  total revenues in
      2003, 2002 and 2001,  respectively.  The increase in 2003 is the result of
      adopting  accounting  rules  that  require a  component  of the  specialty
      finance  revenues to be treated as discontinued  operations,  as described
      below.

   o  The specialty finance segment, operated through the Company's wholly-owned
      subsidiary CNL Restaurant  Capital Corp.  ("CNL-Capital  Corp"),  formerly
      known as CNL  Franchise  Network  Corp.,  is  partnered  with a  financial
      institution,  Bank of  America  ("the  Bank"),  in owning  CNL  Restaurant
      Capital,  LP  ("CNL-Capital").   CNL-Capital,  through  its  subsidiaries,
      delivers  financial  solutions  principally  in the  forms  of  financing,
      advisory  and other  services to national and larger  regional  restaurant
      operators.  It does this  primarily  by acquiring  restaurant  real estate
      properties,  which are subject to a triple-net lease, utilizing short-term
      debt and generally selling such properties at a profit.  Revenues from the
      specialty finance segment represented approximately 25 percent, 74 percent
      and 68 percent of the  Company's  total  revenues in 2003,  2002 and 2002,
      respectively.  The decrease in 2003 was due to  classifying  components of
      revenues into  discontinued  operations in accordance  with new accounting
      requirements.

When the  Company was  created in 1994,  the intent was to provide  stockholders
liquidity by December 31, 2005 through  either  listing on a national  exchange,
merging with another  public company or  liquidating  its assets.  The Company's
officers  and  directors  continue  to actively  monitor the public  markets for
opportunities to satisfy the liquidity  objectives of the Company. The Company's
board  presently  has no  intention to  liquidate  the  Company.  To comply with
certain tax guidelines  governing the significance of taxable REIT subsidiaries,
the Company may pursue  other  alternatives  relative to  CNL-Capital  Corp that
would  provide  stockholder  liquidity  for all or a  portion  of the  Company's
investment.

Liquidity and Capital Resources

General.  Historically,  the Company's  demand for funds has been for payment of
operating  expenses and dividends,  for payment of principal and interest on its
outstanding  indebtedness,  and in the case of CNL-Capital,  for acquisitions of
properties with the intent to sell. The Company's management expects to continue
meeting short-term and long-term liquidity  requirements  through  distributions
from  CNL-Investments,  issuance of debt and sales of common or preferred stock.
To date, the Company has not received  distributions  from  CNL-Capital  because
this  subsidiary has reinvested its earnings in ongoing  operations.  Management
expects  that  distributions  from  CNL-Capital  will begin  within the next two
years.



<PAGE>


Contractual Obligations,  Contingent Liabilities and Commitments.  The following
table presents the Company's  contractual  cash  obligations and related payment
periods as of December 31, 2003:
<TABLE>
<CAPTION>

 <c>
                                                               Payments due by period (In millions)
                                                               ------------------------------------
                                                 Less
                                               than one        2 to 3       4 to 5
Contractual cash obligations:                    year          years         years       Thereafter         Total
-------------------------------------------    ----------     ---------    ----------    ------------     ----------

Borrowings (1)                                    $ 146.0      $ 175.5       $  68.9        $  361.4        $ 751.8
Leased office space (2)                               1.1          2.4           2.4             8.0           13.9
                                               ----------     ---------    ----------    ------------     ----------
Total contractual cash obligations                $ 147.1      $ 177.9       $  71.3        $  369.4        $ 765.7
                                               ==========     =========    ==========    ============     ==========
</TABLE>


The  following  table  presents the  Company's  commitments,  contingencies  and
guarantees and related expiration periods as of December 31, 2003:
<TABLE>
<CAPTION>

 <c>
                                                         Estimated payments due by period (In millions)
                                                         ----------------------------------------------
                                               Less
Commitments, contingencies                    than one        2 to 3         4 to 5
and guarantees                                  year           years          years        Thereafter        Total
----------------------------------------     ----------     -----------    -----------    ------------     ---------

Guaranty of unsecured promissory
     note (2)                                    $  1.3          $  --          $  --           $  --         $ 1.3
Purchase commitments                               82.0             --             --              --          82.0
                                             ----------     -----------    -----------    ------------     ---------
Total commitments, contingencies
and guarantees                                   $ 83.3          $  --          $  --           $  --         $83.3
                                             ==========     ===========    ===========    ============     =========
</TABLE>

(1)  The maturities on outstanding indebtedness assumes that loan repayments are
     made  on  the  mortgage   warehouse   facilities  in  accordance  with  the
     contractual  obligation and that bonds payable  amortize in accordance with
     estimated  payment  amounts.  In the event the mortgage  warehouse  lenders
     continue to renew the  facilities  as  expected,  $146  million of the 2004
     amounts would likely  mature in a later year. In January 2004,  the Company
     renegotiated the Subordinated Debt Facility.  Under the renegotiated terms,
     the Company will make a mandatory  repayment of $11.875 million by December
     31,  2004.   This  repayment  of  $11.875  million  was  reflected  in  the
     "Thereafter" column in this table as of December 31, 2003.

(2)  In May 2002,  the Company  purchased a combined  five  percent  partnership
     interest in CNL Plaza,  Ltd. and CNL Plaza Venture,  Ltd. (the "Plaza") for
     $0.2 million. Affiliates of James M. Seneff, Jr. and Robert A. Bourne, each
     of  which is a  director  of the  Company,  own the  remaining  partnership
     interests.  The  Company  has  severally  guaranteed  8.33  percent or $1.3
     million  of a $15.5  million  unsecured  promissory  note on  behalf of the
     Plaza. The guaranty  continues  through the loan maturity in November 2004.
     Since  November  1999,  the  Company  has leased its office  space from CNL
     Plaza,  Ltd., an affiliate of a member of the Company's board of directors.
     The  Company's  lease  expires  in 2014 and  provides  for  scheduled  rent
     increases  over  the  term of the  lease.  Rental  and  other  expenses  in
     connection  with the lease for the years ended December 31, 2003,  2002 and
     2001 totaled $1.4 million, $1.5 million and $1.2 million, respectively.

Dividends.  The Company's  ability to  internally  fund capital needs is limited
since  it  must  distribute  at  least  90  percent  of its net  taxable  income
(excluding net capital gains) to  stockholders to qualify as a REIT. The Company
is a self-advised real estate investment trust that reflects the earnings of its
two primary segment  subsidiaries,  CNL-Investments  and  CNL-Capital  Corp. The
Company has  continued  to declare and pay  distributions  to its  stockholders.
These  distributions have been primarily funded by  CNL-Investments'  activities
because the Company has elected to reinvest  the  earnings of  CNL-Capital,  its
specialty  finance  business,  to date as contemplated by the agreement with the
partners of  CNL-Capital.  The Company will  continue to reinvest  earnings into
this subsidiary if the subsidiary is able to generate  acceptable  returns.  The
remainder of the distributions to date has been funded by sales of the Company's
common stock to the Company's Chairman through a private company affiliate,  CNL
Financial Group, Inc. ("CFG"), and loans from CFG.

The Company has elected to  distribute  amounts in excess of that  necessary  to
qualify as a REIT.  During the years ended December 31, 2003, 2002 and 2001, the
Company   distributed   $69.0   million,   $68.0  million  and  $66.5   million,
respectively,  or $1.52 per share each year, to its  stockholders.  During 2003,
2002 and 2001, approximately 39 percent, 0 percent and 21 percent, respectively,
of the  distributions  received by  stockholders  were considered to be ordinary
income and approximately 61 percent,  100 percent and 79 percent,  respectively,
were considered a return of capital for federal income tax purposes.  The REIT's
taxable  income in 2003,  2002 and 2001 has not  included  any of  CNL-Capital's
earnings since inception. The Company's cash from operations for the years ended
December 31, 2003, 2002 and 2001 were $108.4  million,  $111.6 million and $48.7
million.  Management  believes that a better  indicator of cash from  operations
would  exclude the changes in the held for sale loans and real estate  portfolio
and proceeds from the sale of loans.  Net cash provided by operating  activities
excluding changes in mortgage loans and inventories of real estate held for sale
is $71.2  million,  $50.0 million and $59.4 million in the years ended  December
31, 2003, 2002 and 2001.

In  order  to  ensure  that  the  Company  maintained  its  historical  level of
distributions to its  stockholders,  the Company's  Chairman,  through CFG, made
advances to the Company in the amount of $18.7 million,  $11.75 million and $8.7
million during the years ended December 31, 2003,  2002 and 2001,  respectively,
in  the   form   of   demand   balloon   promissory   notes.   The   notes   are
non-collateralized, bear interest at LIBOR plus 2.5 percent or at the base rate,
as defined in the agreement,  with interest  payments and outstanding  principal
due upon demand. The principal amount including accrued interest at December 31,
2003 was $23.5 million. In addition, during 2002 and 2001, the Chairman, through
CFG,  received  1,173,354  shares  and  579,722  shares,  respectively,  of  the
Company's stock in exchange for $20.1 million and $9.7 million, respectively, in
cash,  including the conversion of amounts previously treated as advances.  This
provided capital that allowed the Company to reinvest the earnings  generated by
the specialty  finance  business.  The number of shares was determined  using an
estimated  fair  value per  share of $16.78  and  $17.13  during  2001 and 2002,
respectively.  The value per share for 2001 and 2002 was  determined  by a third
party firm,  which based its  valuation  on an analysis of  comparable  publicly
traded real estate  investment  trusts and a discounted cash flow analysis.  The
Company's Chairman is under no obligation to purchase  additional shares or make
advances to the Company. Should the Company's Chairman determine not to purchase
additional shares or loan additional funds to the Company,  and the Company does
not  generate  adequate  cash flow from other  sources,  the Company may have to
reduce its distribution rate.

In connection with  maintaining its historical  distribution  level, the Company
may sell  additional  shares of its common  stock to CNL  Financial  Group or to
third  party  purchasers.  The  Company's  Chairman  is under no  obligation  to
purchase  additional  shares of the  Company's  common stock or loan  additional
funds to the  Company  in order to  guarantee  that the  Company  maintains  its
historical distribution level to stockholders.  Selling additional shares of the
Company's stock may dilute a shareholder's investment and may reduce the value a
shareholder would receive in a future liquidity event. However, selling stock to
enable  CNL-Capital to reinvest earnings may be accretive to the extent that the
value of the specialty finance segment increases.

The Company is  currently  exploring  interest  in an offering of the  Company's
preferred  stock.  The proceeds of any sale of preferred stock would be used for
general corporate purposes, meeting existing payment demands and potentially, to
retire existing debt.

o    Specialty Finance Segment (CNL-Capital).

CNL-Capital  current demand for funds include (i) payment of operating expenses,
(ii) funds  necessary for net lease  originations  to be sold in its  Investment
Property  Sales  Program (as defined  below) and (iii)  payment of principal and
interest  on its  outstanding  indebtedness.  Demands  for funds  diminished  at
CNL-Capital  during  2003 due to a decline in new  originations  of real  estate
properties  and a decrease  in  interest  expense,  and due to  CNL-Capital  not
distributing  to the Company any cash resulting from the "net spread" earned and
not distributing any of the gains realized from the sale of properties under the
Investment Property Sales Program, as described below.

During the years  ended  December  31,  2003,  2002 and 2001,  CNL-Capital  Corp
derived its primary cash flows from lease and interest  income  earned in excess
of interest expense paid ("net spread"),  net gains from the Investment Property
Sales  Program,  advisory  services and  servicing  revenues.  Significant  cash
outflows  consist of operating  expenses,  real  property  purchases and capital
enhancements   in  the  loan  portfolio   (excess  of  investment  over  related
borrowings).  CNL-Capital had cash and cash equivalents of $31.9 million,  $10.4
million and $10.8 million at December 31, 2003, 2002 and 2001, respectively.

CNL-Capital's  longer-term liquidity requirements (beyond one year) are expected
to be met through  successful  renewal of its warehouse  credit  facilities  and
gains  from the  Company's  Investment  Property  Sales  Program.  In  addition,
management  believes  CNL-Capital's  longer term liquidity  requirements will be
satisfied in part by  operating  cash flows  provided by servicing  and advisory
services.  CNL-Capital may also seek additional  debt or equity  financing.  Any
decision to pursue  additional debt or equity capital will depend on a number of
factors,  such as compliance with the terms of existing credit  agreements,  the
Company's  financial  performance,  industry  or market  trends and the  general
availability of attractive financing transactions.

Investment Property Sales Program

As described  above,  the  improvement  in liquidity  has been  primarily due to
Investment Property Sales, further described below,  outpacing new originations.
The Company's Investment Property Sales Program came into being as a reaction to
uncertainty in the franchise asset-backed securitization market. CNL-Capital was
formed in June of 2000 through an alliance between the Company and the Bank. The
original  vision of CNL-Capital  was centered on  securitization.  This business
model was predicated upon the origination of pools of loans or triple-net leases
and the  subsequent  issuance of bonds  collateralized  by real estate and other
restaurant  assets  underlying  the loan or  lease.  The  securitization  market
experienced  considerable  volatility in late 2000 that  continued  through 2003
virtually shutting down that securitization  financing channel for the franchise
asset class.  Rising  delinquencies in securitized loan pools,  falling treasury
rates,  macroeconomic  uncertainties combined with the sluggish restaurant sales
within certain  concepts all contributed to the volatility.  Investors  required
higher  interest  rates on securities  issued in  securitizations  while ratings
agencies  downgraded the quality of the loans  underlying the securities.  While
many of the Company's competitors  experienced  downgrades or ratings actions on
bonds previously  issued,  the Company's prior loan or lease  securitizations to
date have not been subject to any such ratings action.

In 2001,  CNL-Capital  changed its  business  focus to the private  market sales
channels to either  refinance or sell existing  mortgage  loans,  and halted the
origination  of new loans.  In October 2001,  the Company  renegotiated  certain
terms of its alliance with the Bank.  Over the course of 2001 through 2003,  the
Company sold or refinanced the loans described above over a longer term.

The  uncertainty  in  the  franchise  asset-backed   securitization  market  led
management to focus the  originations  effort toward new  long-term,  triple-net
leases on real  estate  with the intent of  selling  these  properties  to third
parties.  In 2001,  CNL-Capital  began  selling  investment  properties to third
parties  (the  "Investment  Property  Sales  Program")  adding  diversity to its
original securitization model. These leased properties may qualify the buyer for
special  tax  treatment  under  Section  1031 of the  Internal  Revenue  Code (a
"Section 1031  Exchange").  Generally,  Section 1031 Exchanges allow an investor
who realizes a gain from selling  appreciated  real estate to defer paying taxes
on such gain by reinvesting  the sales  proceeds in like-kind  real estate.  The
success of this program is dependent upon  achieving an optimal  balance of cash
flows from lease income  earned in excess of holding costs versus a maximum gain
on the sale. The chart below  illustrates  cash flows from  Investment  Property
Sales proceeds and purchases of properties in the years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                                 (In thousands)
                                                                    2003              2002             2001
                                                                -------------     -------------    --------------

   Proceeds from Investment Property Sales program sales           $ 193,850         $ 287,622         $ 128,480
                                                                =============     =============    ==============

   Purchases of properties to be sold under the Investment
        Property Sales program                                     $ 168,965         $ 263,019         $ 118,372
                                                                =============     =============    ==============
</TABLE>

For  properties  acquired  subsequent to December 31, 2001,  generally  accepted
accounting  principles  require that the sale of these investment  properties be
designated as  discontinued  operations.  A  significant  element of the ongoing
activities of the specialty  finance  segment is the  Investment  Property Sales
Program that consists of the  origination of new triple-net  lease  financing on
properties and the subsequent  disposition  of those  properties.  The following
table shows the combined  results of the  Investment  Property Sales Program and
the rest of the operations of the specialty  finance segment  (without  treating
the Investment  Property Sales Program as  discontinued  operations) for each of
the three years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                             (In thousands)
                                                                 2003             2002              2001
                                                             -------------    --------------    -------------
      Revenues:
           Sale of real estate                                   $ 193,850         $ 287,622       $ 128,480
           Rental income                                             9,983            13,165          16,212
           Other revenue items                                      32,020            35,116          46,271
                                                             -------------    --------------    -------------
                                                                   235,853           335,903         190,963
                                                             -------------    --------------    -------------
      Expenses:
           Cost of real estate sold                                168,965           263,019         118,372
           Interest expense                                         25,920            29,608          32,176
           Depreciation and amortization                             1,216             1,243           5,519
           Other expenses                                           31,220            29,466          30,653
                                                             -------------    --------------    -------------
                                                                   227,321           323,336         186,720
                                                             -------------    --------------    -------------

           Income tax benefit                                        6,346                --              --
           Cumulative effect of accounting change                       --                --          (3,841 )
                                                             -------------    --------------    -------------
               Net income                                        $  14,878         $  12,567         $   402
                                                             =============    ==============    =============
</TABLE>

Management  expects  continued  demand for  Investment  Property  Sales  Program
properties  but  continues  to study  other  sales  channels to market net lease
assets.  The success of the  Investment  Property Sales business is dependent on
successfully originating new triple-net leases. For the years ended December 31,
2003, 2002 and 2001,  CNL-Capital originated $137 million, $204 million and $182
million  in net  leases  respectively.  During  2002,  originations  included  a
portfolio of $117 million in properties.  CNL-Capital acquired this portfolio in
September  2002  by  purchasing  all  of the  limited  and  general  partnership
interests  of CNL Net Lease  Investors,  L.P.,  an  affiliate  of the  Company's
Chairman  of  the  Board  and  Vice  Chairman  of  the  Board,  that  until  the
acquisition,  was  a  client  of  CNL-Investment's  property  management  group.
Management  had  contemplated  stronger  demand  for its core  triple-net  lease
financing in 2003 and attributes the slow-down to two competitive factors:

   o  A number of  identified  leases  have been  lost to  competitors  offering
      mortgage debt financing.  With the low prevailing  interest  rates,  large
      national and regional banks have offered  inexpensive  mortgage  financing
      that  many   restaurant   operators  find  more  attractive  than  leases.
      CNL-Capital  does  not  currently  originate  debt  financing  due  to the
      volatility  and  high  cost  of  capital  currently  associated  with  the
      securitization market. CNL-Capital instead earns a fee for the referral of
      such  opportunities  to  the  Bank,  its  financial  institution  partner,
      pursuant to the terms of that alliance.  While debt financing represents a
      threat to the net lease finance  product and, as a result,  the success of
      the  Investment  Property  Sales  program,   management  believes  that  a
      securitized  debt  product  is not  currently  in  the  best  interest  of
      CNL-Capital.  Management continues to monitor the potential reemergence of
      a mortgage loan  product,  but does not expect this market to be viable in
      the near term.

   o  CNL-Capital has lost a few  transactions  as new competitors  have emerged
      with a net lease program styled after  CNL-Capital's  Investment  Property
      Sales  program.  Competitors  have met  mixed  success  at  offering  this
      product, and management believes it can recapture this piece of the market
      through  differentiating its Investment Property Sales program as a highly
      efficient, turnkey program that brings value to our restaurant clients.

Management  has  responded  to this  slowdown  by  adjusting  net  lease  rates,
identifying larger transactions like the September 2002 portfolio acquisition of
$117 million in properties and by identifying  new areas to reduce costs.  These
originations  provide  inventory  necessary to execute the  Investment  Property
Sales Program and  CNL-Capital  typically  profits from the leases while holding
them. At December 31, 2003, CNL-Capital is involved in several opportunities for
net lease originations with $82 million approved for funding and accepted by the
client,  and an additional $30 million approved with client acceptance  pending.
CNL-Capital's  warehouse facilities provide advances for up to 97 percent of the
real estate purchase value. The Company is reinvesting its operating  profits to
fund the amounts not advanced by the mortgage warehouse facilities.

Indebtedness.

During 2003,  CNL-Capital used the "net spread" earned to pay operating expenses
and  used  borrowings  on its  warehouse  facilities  to fund  new  real  estate
originations.  CNL-Capital has continued to reduce its warehouse credit capacity
to align  triple-net  lease financing  opportunities  to its financing  capacity
requirements and to reduce its overall  financing costs. The Company reduced its
warehouse credit capacity from $385 million at December 31, 2002 to $260 million
at December  31, 2003 thereby  realizing  economies  from the reduced  capacity.
CNL-Capital may be subject to margin calls on its warehouse  credit  facilities.
The Bank and the other lenders monitor  delinquency  assumptions and may require
one or more margin calls to reduce the level of warehouse financing.  During the
years ended December 31, 2003,  2002 and 2001,  CNL-Capital  made $10.1 million,
$16.8 million and $21.3 million in margin calls.

CNL-Capital has the following  borrowing  sources at December 31, 2003, with the
stated total capacity and interest rate:
<TABLE>
<CAPTION>

 <c>
                                                          In thousands
                                               Amount used         Capacity        Maturity     Interest rate (4)
                                               ----------------- -------------  --------------- -------------------

    Note payable (medium term financing) (1)        $   181,955     $ 181,955      Jun 2007           2.53%
    Mortgage warehouse facilities (1)(2)                 93,513       260,000       Annual            2.53%
    Subordinated note payable                            43,750        43,750     June 2007           8.50%
    Series 2001-4 bonds payable (3)                      38,921        38,921    2009 - 2013          8.90%
                                               ----------------- -------------
                                                    $   358,139    $  524,626
                                               ================= =============
</TABLE>

(1)  Average rate excludes the impact of hedge transactions that bring the total
     average rate to 6.13 percent on the medium term  financing and 3.41 percent
     on the warehouse facilities.

(2)  In December 2003,  CNL-Capital lowered the borrowing capacity on one of its
     mortgage warehouse  facilities from $260 million to $160 million because it
     did not require the full  capacity and  extended the maturity  date on this
     facility to March 2004 pending further negotiations with the Bank. In March
     2004,  CNL-Capital  renewed this facility  through  March 2005.  The second
     mortgage warehouse facility of $100 million matures in June 2004.

(3)  Includes   $4,983  in  bonds  held  by   CNL-Investments   eliminated  upon
     consolidation in Company financial statements.

(4)  Excludes debt issuance and other related costs.

Note Payable. In June 2002, in order to repay warehouse  financing,  CNL-Capital
entered into a five-year term $207 million  financing  collateralized  with $225
million in mortgage loans  re-designated  to reflect the Company's  intention to
hold them to maturity.  The  transaction  provides  CNL-Capital  earnings on the
excess of interest income over interest  expense.  This five-year term financing
carries a variable interest rate tied to the weighted average rate of commercial
paper  plus 1.25  percent  with a portion of such  interest  fixed  through  the
initiation of a hedge transaction.

Mortgage Warehouse Facilities.  CNL-Capital management maintains regular contact
with its mortgage  warehouse  facility  lenders and believes that the relatively
low-cost,  high-advance  rate  financing  they  provide  has  been  integral  to
CNL-Capital's  success.  As is  typical  of  revolving  debt  facilities,  these
facilities carry a 364-day maturity and accordingly CNL-Capital is vulnerable to
any changes in the terms of these facilities. The warehouse facilities currently
advance an average of 92.2 percent of the original real estate value.

Company  warehouse   borrowings  were  initially  designed  to  provide  interim
financing  until periodic  securitizations  could occur. In forming the alliance
with the Bank in 2000,  the Bank  provided  a  warehouse  credit  facility  (the
"Warehouse  Credit  Facility")  with an initial  capacity of $500  million.  The
instability  of the  securitization  markets  led to  renegotiated  terms of the
relationship with the Bank in October 2001, including the need to remove certain
loans held as collateral on the Warehouse  Credit  Facility and the  requirement
that  CNL-Investments  guarantee  a portion  of the  repayments.  As part of the
renegotiations,  the  Bank  agreed  to  finance  the  remaining  loans  held  as
collateral on the Warehouse Credit Facility until December 2003.

In December  2003,  CNL-Capital  removed the  remaining  loans on the  Warehouse
Credit Facility by selling them to  CNL-Investments,  the real estate segment of
the Company. CNL-Investments combined these loans with loans it previously owned
and issued $24.9 million of notes  collateralized by approximately $46.6 million
of mortgage loans.  The Company  re-designated  the loans previously held in the
Warehouse  Credit  Facility to reflect the  Company's  intention to hold them to
maturity and terminated the swap hedging these loans.  This financing  carries a
variable  interest rate of LIBOR plus 4.50  percent.  This  transaction  enabled
CNL-Capital  to repay  the  warehouse  financing  and  eliminated  a $2  million
guaranty  previously  provided by  CNL-Investments  on the mortgage  loans.  The
transaction also provides the Company ongoing earnings on the excess of interest
income over interest expense under the refinancing.

In mid December 2003, CNL-Capital renewed the December 2003 maturity date on the
Warehouse Credit Facility through March 2004, pending further  negotiations with
the Bank. As part of the renewal,  CNL-Capital reduced the $260 million capacity
to $160 million and agreed to a 15 basis point unused fee on this facility,  and
the Bank agreed to finance the remaining  loans until March 2004. In March 2004,
CNL-Capital  renewed  this  facility  through  March 2005.  The second  mortgage
warehouse  facility of $100 million with  another  lender  matures in June 2004.
Management  has and may  continue to decrease the  mortgage  warehouse  facility
capacity from its present level in order to economize on its cost, provided that
there  continue to be costs  associated  with excess  capacity.  At December 31,
2003,  CNL-Capital had approximately $94 million in capital  supporting its loan
and lease portfolio.

Subordinated  Note  Payable.  In forming the alliance with the Bank during 2000,
the Bank provided  CNL-Capital with a $43.75 million  subordinated debt facility
(the "Subordinated Debt Facility").  In late December 2003,  CNL-Capital removed
the  remaining  loans  on the  Warehouse  Credit  Facility  by  selling  them to
CNL-Investments.  In January 2004,  CNL-Capital  used these  proceeds along with
additional  funds,  to repay  the  Bank $10  million  on the  Subordinated  Debt
Facility. As part of the repayment,  CNL-Capital and the Bank modified the terms
of the Subordinated Debt Facility. CNL-Capital extended the maturity date on the
Subordinated  Debt  Facility  from June 2007 to  December  2008 and  reduced the
interest rate from 8.50 percent to 7.00 percent per annum.  Under the new terms,
CNL-Capital will make a mandatory  repayment of $11.875 million on this facility
by December 31, 2004. CNL-Capital will then make quarterly payments of principal
and interest to the Bank using a five-year amortization schedule beginning March
2005  with  a  balloon  payment  due  on  December  31,  2008.  As  part  of the
negotiations,  the Bank eliminated a previous  restriction on CNL-Capital to pay
down the Subordinated Debt Facility for every dollar  distributed by CNL-Capital
to the  Company.  In addition,  the Company  agreed to provide a guaranty on the
entire amount  outstanding  under the Subordinated  Debt Facility as part of the
renegotiations.  Prior to the  renegotiations,  only  CNL-Capital had provided a
guaranty on the Subordinated Debt Facility.

Bonds Payable. In May 2001, CNL-Capital issued bonds collateralized by a pool of
mortgages (the "Series 2001-4 Bonds). The proceeds of $42.1 million were applied
to pay down  short-term  debt. At December 31, 2003, 60 mortgage loans served as
collateral  for the bonds  which had a  carrying  value of  approximately  $45.8
million as of December 31, 2003.  The offering  resulted in an initial  weighted
average life of approximately  7.8 years and a rate of interest of approximately
8.90  percent per annum.  The bond  indenture  requires  monthly  principal  and
interest  payments  received from borrowers to be applied to the bonds. The bond
indenture  also  provides  for an  optional  redemption  of the  bonds  at their
remaining  principal balance when the remaining amounts due under the loans that
serve as  collateral  for the bonds are less than 10  percent  of the  aggregate
amounts due under the loans at the time of issuance.

Some  sources  of debt  financing  require  that  CNL-Capital  maintain  certain
standards of financial  performance  such as a  fixed-charge  coverage  ratio, a
tangible net worth requirement and certain levels of available cash. Any failure
to comply with the terms of these covenants  would  constitute a default and may
create an immediate need to find alternate borrowing sources.



<PAGE>


Liquidity Risks.

Tenants or borrowers that are experiencing  financial  difficulties could impact
CNL-Capital's ability to generate adequate amounts of cash to meet its needs. In
the  event the  financial  difficulties  persist,  CNL-Capital's  collection  of
interest and principal payments could be interrupted.  At present, most of these
borrowers  continue to pay  principal and interest  substantially  in accordance
with loan terms.  However,  CNL-Capital  continues  to monitor  each  borrower's
situation  carefully and will take appropriate  action to place CNL-Capital in a
position to maximize the value of its investment.

Liquidity risk also exists from the possibility of borrower delinquencies on the
mortgage  loans  held for sale or held to  maturity.  In the event of a borrower
delinquency,  the Company could suffer not only shortfalls on scheduled payments
but also margin calls by the lenders that provide the warehouse  facilities  and
the five-year note,  subjecting the Company to unanticipated cash outflows.  The
Company is obligated under the provisions of its mortgage  warehouse  facilities
and its  five-year  note to pay  down  certain  debt  associated  with  borrower
delinquencies or defaults within a required time frame. Most properties acquired
on the mortgage  warehouse  facilities  are required to be sold within a certain
time  frame.  Any  delinquency,  default  or delay in the  resale of  properties
financed  through one of these facilities would generally result in an immediate
pay-down of the related  debt and may  restrict  the  Company's  ability to find
alternative  financing for these specific assets. The Company's debt,  excluding
bonds payable,  generally  provides for cross-default  triggers.  A default of a
mortgage warehouse  facility,  for example from a failure to make a margin call,
could result in other Company borrowings becoming immediately due and payable.

For those  borrowers who have  experienced  financial  difficulties  or who have
defaulted under their loans,  management has estimated the loss or impairment on
the related  investments and included such charge in earnings  through  December
31,  2003.  However,  management  acknowledges  that the  estimation  process is
challenging  due to the  number of  possible  outcomes  that may  result  from a
default  situation.  While  management  believes  it  has  recorded  appropriate
reserves at  December  31, 2003 based on an  assessment  of specific  borrowers'
financial difficulties, facts may develop in future periods that may suggest the
need for larger reserve charges.

As of March 12, 2004,  CNL-Capital is under  negotiations  to provide  temporary
debt  service  relief  to  a  borrower/tenant  who  is  experiencing   liquidity
difficulties.  CNL-Capital  anticipates lowering the interest rate over the next
twelve  months on eight  mortgage  loans to provide the  necessary  debt service
relief to the  borrower/tenant.  Repayment  terms would go back to the  original
terms  starting with the  thirteenth  month.  This temporary debt service relief
will have a $1.5 million  negative impact to cash flows of CNL-Capital  over the
next twelve months.  Management does not believe that this temporary  decline in
cash flows will have a material  adverse effect on the overall  liquidity of the
Company.

Additional  liquidity  risks include the possible  occurrence of economic events
that could have a negative  impact on the  franchise  securitization  market and
affect the quality or perception of the loans or leases underlying CNL-Capital's
previous  securitization  transactions.   The  Company  conducted  its  previous
securitizations   using  bankruptcy   remote  entities.   These  entities  exist
independent  from the Company and their assets are not  available to satisfy the
claims of creditors of the Company,  any subsidiary or its affiliates.  To date,
the ratings on the loans underlying the securities issued in these  transactions
have been affirmed unlike the ratings of many  competitors' loan pools that have
been  downgraded.  Upon the occurrence of a significant  amount of delinquencies
and/or defaults,  one or more of the three rating agencies may choose to place a
specific  transaction  on ratings watch or even downgrade one or more classes of
securities  to a lower  rating.  Should  the  loans  underlying  the  securities
default, and the securities undergo a negative ratings action, CNL-Capital could
experience  material  adverse  consequences  impacting  its  ability to continue
earning  income as  servicer,  and its  ability  to engage in future  profitable
securitization  transactions.  CNL-Capital  holds an interest  in the  following
securitizations  (referred to as the 1998-1 and 1999-1 residual interests),  the
assets and liabilities of which are not  consolidated  in the Company  financial
statements:


<PAGE>
<TABLE>
<CAPTION>

 <c>

                                                                                 December 31, 2003
                                                                      -----------------------------------------
                                                                                   (In Thousands)
                                                                       Mortgage loans in   Bonds outstanding
                                                                          pool at par      at face value (1)
                                                                      -----------------------------------------

     Loans and debt supporting 1998-1 Certificates issued by CNL
        Funding 1998-1, LP                                              $     192,801        $     191,144
     Loans and debt supporting 1999-1 Certificates issued by CNL
        Funding 1999-1, LP                                              $     229,044        $     229,044
                                                                      -----------------------------------------

                                                                        $     421,845        $     420,188
                                                                      =========================================
</TABLE>

(1)  Certain   bonds  in  both  the  1998-1  and  1999-1   pools  are  owned  by
     CNL-Investments;  the aggregate amount of these bonds of $27,563 appears as
     investments in the consolidated financial statements of the Company.

Management  believes that the Investment Property Sales Program will continue to
be successful,  but not without risks.  Management  believes that the recent tax
law  changes  decreasing,  but not  eliminating  capital  gains  taxes,  are not
significant  enough to  dissuade  demand  created  by  property  buyers  seeking
continued  tax  deferrals.  However any sweeping  new proposal to eliminate  the
capital gains tax could negatively  impact demand. An increase in general levels
of interest rates could result in buyers  requiring a higher yield.  Neither the
rate of return on leased  properties nor the rate of return  required by a buyer
correlate directly with prevailing interest rates. Net lease properties acquired
in  anticipation  of sales  through the  Investment  Property  Sales program can
typically  be  leased to  tenants  at a rate  that  exceeds  the rate a buyer is
willing to accept.  CNL-Capital  is at risk,  however,  that any  interest  rate
increases  causing buyers to demand higher yields may not be matched with higher
yields from  tenants.  This risk could cause  CNL-Capital  to  experience  lower
average  gains or even losses on the future sales of Investment  Property  Sales
properties.

o    Real Estate Segment (CNL-Investments)

CNL-Investments' demand for funds are predominantly interest expense,  operating
expenses, reinvestment of disposition proceeds and distributions to the Company.
CNL-Investments'  cash flows primarily  consist of rental income from tenants on
restaurant properties owned, interest income on mortgage loans,  dispositions of
properties  and income  from  holding  interests  in prior loan  securitizations
including   those   originated   by   predecessor   entities   of   CNL-Capital.
CNL-Investments had cash and cash equivalents of $4.4 million,  $5.3 million and
$10.2 million at December 31, 2003, 2002 and 2001, respectively.

CNL-Investments' management believes the availability on its line of credit will
permit  it to meet its  short-term  liquidity  objectives.  Long-term  liquidity
requirements  will be met through a combination of selectively  disposing assets
and  reinvesting  the  proceeds  in  high-yielding  investments  and  cash  from
operating activities.

Indebtedness

From time to time,  CNL-Investments  will  borrow  amounts  available  under its
Revolver to fund operating  expenses.  Borrowing  resources at December 31, 2003
for CNL-Investments include:


<PAGE>

<TABLE>
<CAPTION>

 <c>

                                            (In thousands)
                                   Amount Used     Capacity        Maturity     Interest Rate (1)
                                  -------------- -------------- --------------- ------------------

Revolver                              $   2,000      $  30,000     Oct 2004           3.62%
Note payable (2)                            605          5,000       2005             4.40%
Series 2000-A bonds payable             252,477        252,477    2009-2017           7.94%
Series 2001 bonds payable               118,690        118,690     Oct 2006           1.70%
Series 2003 bonds payable                24,906         24,906    2005-2010           5.67%
                                  -------------- --------------
                                     $  398,678     $  431,073
                                  ============== ==============
</TABLE>

(1) Excludes debt issuance and other related costs.

(2) CNL-Investments did not renew the remaining $4.4 million available under the
    note payable when it matured in January 2004.

CNL-Investments  provides a guaranty of up to ten percent of CNL-Capital's  five
year term  financing.  CNL Investments  also provides a 100 percent  guaranty on
CNL-Capital's Subordinated Debt Facility.

CNL-Investments'  short-term  debt consists of a $30 million  revolving  line of
credit  (the   "Revolver")   entered   into  in  October  2001  with  the  Bank.
CNL-Investments  utilizes the Revolver from time to time to manage the timing of
inflows and outflows of cash from operating activities.  The Revolver matured in
October 2003, and at that time  CNL-Investments  exercised its one-year  renewal
option.

In January 2003, a subsidiary of  CNL-Investments,  entered into a Master Credit
Facility  Agreement  ("the Note Payable") with CNL Bank, an affiliate.  The Note
Payable had a total borrowing capacity of $5 million and was established for the
purpose  of  financing  the  acquisition  and   redevelopment   of  real  estate
properties.  At December  31,  2003,  the Company had $0.6  million  outstanding
relating  to this  Note  Payable.  Amounts  outstanding  are  collateralized  by
mortgages on certain real property, bear interest at LIBOR plus 325 basis points
per annum and require monthly interest only payments until maturity in 2005. The
unused  portion of $4.4 million on the credit  facility  expired in January 2004
and management of CNL-Investment elected not to extend the available capacity.

CNL-Investments also has medium-term note and long-term bond financing, referred
to  collectively  as bonds payable,  that was used to restructure  the Company's
indebtedness.  Rental  income  received on 379  properties  and interest  income
received on 34 mortgage loans and four equipment leases pledged as collateral on
medium and  long-term  financing is used to make  scheduled  reductions  in bond
principal and interest.

Some sources of debt financing  require that  CNL-Investments  maintain  certain
standards of financial  performance  such as a fixed-charge  coverage ratio, and
impose a limitation on the  distributions  from  CNL-Investments  to the Company
tied to funds from  operations.  Any  failure to comply  with the terms of these
covenants  could  constitute a default and may create an immediate  need to find
alternate borrowing sources.

Liquidity Risks

Liquidity  risks within the real estate  business  include the potential  that a
tenant's  financial  condition  could  deteriorate,  rendering it unable to make
lease payments. Generally,  CNL-Investments uses a triple-net lease to lease its
properties  to its  tenants.  The  triple-net  lease is a  long-term  lease that
requires  the  tenant  to pay  expenses  on the  property.  The  lease  somewhat
insulates  CNL-Investments  from  significant  cash  outflows  for  maintenance,
repair,  real estate  taxes or  insurance.  However,  if the tenant  experiences
financial  problems,  rental  payments could be interrupted  and in the event of
tenant bankruptcy,  CNL-Investments  may be required to fund certain expenses in
order to retain control or take  possession of the property and its  operations.
This could expose  CNL-Investments  to successor  liabilities and further affect
liquidity.

Management is aware of multi-unit  tenants that are also experiencing  financial
difficulties. In the event the financial difficulties continue, CNL-Investments'
collection of rental  payments could be interrupted.  At present,  most of these
tenants  continue to pay rent  substantially  in  accordance  with lease  terms.
However,  CNL-Investments continues to monitor each tenant's situation carefully
and will take  appropriate  action to place  CNL-Investments  in a  position  to
maximize the value of its  investment.  For those  tenants who have  experienced
financial  difficulties  or have  defaulted  under their leases,  management has
estimated  the loss or impairment  on the related  properties  and included such
charge in earnings through December 31, 2003. However,  management  acknowledges
that the  estimation  process  is  challenging  due to the  number  of  possible
outcomes that may result from a default situation.  While management believes it
has recorded an appropriate impairment charge at December 31, 2003, based on its
assessment  of the  tenants'  financial  difficulties  and its  knowledge of the
properties,  facts may develop in future periods that may suggest the need for a
larger impairment charge.

In October 2003, a tenant of CNL-Investments, Chevy's Holding, Inc. and numerous
operating  subsidiaries,  ("Chevy's")  filed for voluntary  bankruptcy under the
provisions  of Chapter 11.  Chevy's  operates the  Chevy's,  Rio Bravo and Fuzio
concepts. CNL-Investment owns 22 Chevy's units, with a total investment of $56.6
million.  As of December  31,  2003,  Chevy's has  rejected 16 of the 22 leases.
Management has recorded  impairments relating to some of these sites and expects
these rejected  sites to be re-leased or sold.  Chevy's has paid rent on the six
remaining sites since filing bankruptcy in October 2003.

In  February  2004,  The  Ground  Round,  Inc.  ("Ground  Round"),  a tenant  of
CNL-Investments,  filed for voluntary bankruptcy under the provisions of Chapter
11.  Ground  Round  operates  the Ground  Round and Tin Alley  Grills  concepts.
CNL-Investments owns 12 units, with a total investment of $12.9 million.  Ground
Round  had  closed   eight  of  these  sites  as  of  the   bankruptcy   filing.
CNL-Investments  did not collect the February rents but  anticipates  collecting
the March rents in accordance with bankruptcy provisions.  As of March 12, 2004,
Ground Round had neither affirmed nor rejected the 12 leases and CNL-Investments
had determined that no impairment  provisions were deemed necessary.  Management
will continue to monitor developments surrounding the bankruptcy,  including the
potential rejection of some or all of these leases.

As of March 12, 2004, CNL-Investments is under negotiations to provide temporary
rent  forbearance  to a  tenant  who  is  experiencing  liquidity  difficulties.
CNL-Investments  anticipates forbearing the collection of partial rents over the
next twelve months on ten sites to provide the necessary rent relief.  Under the
proposed  negotiations,  the  tenant  will pay the  amounts  deferred  under the
forbearance  agreement over five years. This temporary  forbearance on the rents
will have a $1.8 million negative impact to cash flows of  CNL-Investments  over
the next twelve months but will be collected between months 13 through 72.

CNL-Investments  has  experienced  tenant  bankruptcies  and may commit  further
resources in seeking resolution to these properties including funding restaurant
businesses  directly or on behalf of successor tenants.  For example,  where the
value of the leased real estate is linked to the  financial  performance  of the
tenant,   CNL-Investments   may  allocate   capital  to  invest  in   turnaround
opportunities.  As of December 31, 2003 the Company owned, through an investment
of  $1.8  million,   the  business  restaurant   operations  of  twelve  Denny's
restaurants  that  represented a strategic  move to preserve the Company's  real
estate  investment  when the franchisee of the  restaurants  experienced  severe
financial  difficulties.  CNL-Investment has since successfully  disposed of the
real estate and plans to sell its investment in the business by the end of 2004.
This  activity is not a core  operation or competency of the Company and is only
undertaken in  situations  where  management  believes the course of action best
preserves the Company's position in the real estate or loan investment.

Certain net lease properties are pledged as collateral for the Series 2000-A and
Series 2001  triple-net  lease mortgage bonds payable.  In the event of a tenant
default  relating to pledged  properties,  the  Company may elect to  contribute
additional properties or substitute properties into these securitized pools from
properties  it owns not  otherwise  pledged as  collateral.  These pools contain
properties  potentially  impacted by the recent bankruptcy filing of Chevy's and
the  financial  difficulties  of  other  restaurant  operators.   Management  is
evaluating  the impact to the pools,  including any need to identify  substitute
properties.  In  the  event  that  CNL-Investments  has no  suitable  substitute
property, the adverse performance of the pool might inhibit the Company's future
capital  raising  efforts,  including  the ability to refinance  the Series 2001
bonds  maturing in 2006.  The Series 2000-A and Series 2001  financings  include
certain triggers  relating to delinquency  percentages or debt service coverage.
If certain ratios are exceeded or not maintained, then principal pay down on the
outstanding bonds is accelerated.


<PAGE>


Off-Balance Sheet Transactions

The  Company is not  dependent  on the use of any  off-balance  sheet  financing
arrangements   for  liquidity.   The  Company  holds  a  residual   interest  in
approximately  $422 million in loans transferred to  unconsolidated  trusts that
serve as collateral for the long-term  bonds discussed in "Liquidity and Capital
Resources  -  Specialty   Finance  Segment   (CNL-Capital).   Recent  accounting
pronouncements have not required the consolidation of these trusts.

Interest Rate Risk

Floating  interest  rates on  variable  rate debt expose the Company to interest
rate risk.  The  Company  invests  in assets  with a fixed  return by  sometimes
financing a portion of them with  variable  rate debt.  As of December 31, 2003,
the Company's variable rate debt includes the following:

   o  $2 million on its Revolver;

   o  $94 million on its mortgage warehouse facilities;

   o  $182 million on the June 2002 five-year financing;

   o  $119 million outstanding on the Series 2001 bonds; and

   o  $25 million outstanding on the Series 2003 bonds.

Generally, the Company uses derivative financial instruments (primarily interest
rate swap  contracts) to hedge against  fluctuations  in interest rates from the
time it originates  fixed-rate mortgage loans and leases until the time they are
sold. The Company generally  terminates certain of these contracts upon the sale
of the loans or  properties,  and both the gain or loss on the sale of the loans
and the  additional  gain or loss on the  termination  of the interest rate swap
contracts is recognized in the consolidated statement of operations.

Additionally,  the Company uses  interest  rate swaps and caps to hedge  against
fluctuations  in  variable  cash flows on a portion of its  floating  rate debt.
Under interest rate swaps, the Company agrees with other parties to exchange, at
specified  intervals,   the  difference  between  fixed-rate  and  floating-rate
interest  amounts  calculated by reference to an agreed upon notional  principal
amount.  Under a cap purchase, a third party agrees to assume any interest costs
above a stated rate.  Changes in the values of the  Company's  current  interest
rate swaps and caps are reflected in other comprehensive income.

The Company also invests in  financial  instruments  that are subject to various
forms of  market  risk  such as  interest  rate  fluctuations,  credit  risk and
prepayment  risk.  The  value  of its  mortgage  loans  held  for  sale  and its
investments  change as a result of  fluctuating  interest  rates,  credit  risk,
market  sentiment and other external forces,  which could  materially  adversely
affect liquidity and capital resources.

The Company has entered into the  following  cash flow hedges and interest  rate
caps that are outstanding as of December 31, 2003. The net value associated with
these hedges is reflected on the Company's Consolidated Balance Sheets:

<PAGE>

<TABLE>
<CAPTION>

 <c>
                                                                                                     Estimated
                                                                                                     Value
                                                                                                     (Liability)
                                                                                                     (in
                                                                                                     thousands)
                                       Notional         Cap Strike                                   at
                                      Amount (In         Price or        Trade        Maturity       December
   Type of Hedge                      Thousands)        Swap Rate         Date          Date         31, 2003
   -----------------------------     --------------    -------------    ----------    ----------     -----------

   Pay Fixed Rate - Receive
        Floating Rate Swap              $  144,418           6.590%      6/14/02       3/15/22         $ (10,772 )
   Interest Rate Cap                       132,000           4.500%      9/28/01      12/25/06               730
   Interest Rate Cap                        30,000           3.500%     12/17/03       2/1/11                953
</TABLE>

Management estimates that a one-percentage point increase in short-term interest
rates for the year ended  December  31, 2003 would have  resulted in  additional
interest costs of approximately $2.7 million. This sensitivity analysis contains
certain simplifying assumptions (for example, it does not consider the impact of
changes in prepayment risk or credit spread risk). Therefore,  although it gives
an  indication  of the  Company's  exposure to interest  rate change,  it is not
intended to predict future results and the Company's  actual results will likely
vary.

Management  believes  inflation  has not  significantly  affected the  Company's
earnings  because the  inflation  rate has  remained  low.  During  inflationary
periods, which generally are accompanied by rising interest rates, the Company's
ability to grow may be adversely  affected  because the yield on new investments
may increase at a slower rate than new borrowing costs.  However,  sustained low
inflation could lead to net lease pricing pressure as tenants request decreasing
rates for longer maturities.

Critical Accounting Policies

The Company  accounts  for many asset  categories  that  require  management  to
exercise  extensive  judgment  and make  estimates.  Listed  below  are the more
significant  accounting  policies that require management judgment and estimates
or are otherwise significant to the results of operations:

   o  The Company  records the  acquisition of land,  buildings and equipment at
      cost,  including  acquisition,  closing and  construction  period interest
      costs. Land and buildings are leased to restaurant  operators generally on
      a triple-net  basis,  which means that the tenant is  responsible  for all
      operating  expenses  relating to the property,  including  property taxes,
      insurance,  maintenance  and repairs.  The property and secured  equipment
      leases  held for  investment  are  accounted  for using  either the direct
      financing or the operating  method unless the Company has classified these
      properties pursuant to their intent to sell. Management estimates residual
      values and collectable  rents in determining  whether a lease is accounted
      for as either direct financing or operating.

   o  The Company's  real estate  accounting  differs for assets held by its two
      operating segments based upon management's  intention with respect to such
      asset's disposition.

      o  Real estate held within the real estate  segment is generally  acquired
         with an  intention  to  hold  long-term.  It is  depreciated  over  its
         estimated  useful life and rent is  recorded  giving  consideration  to
         contractual rent increases over the life of the lease. Some real estate
         held by this segment may be  designated  so as to reflect  management's
         intention to dispose of the asset.  In such case all  operating  income
         and expense,  including  depreciation  and accrued rent associated with
         future   contractual   increases,   is  reflected  as  a  component  of
         discontinued  operations  for all periods  presented,  even for periods
         prior to management having stated its intention to sell.

      o  Real estate  held within the  specialty  finance  segment is  generally
         acquired with an intention to sell within one year. It is therefore not
         depreciated,  and  future  contractual  rent  increases  do not  impact
         earnings.   Because  of  a  transition  rule,  the  specialty   finance
         properties are accounted for differently depending on acquisition date.
         All such  properties  acquired  after  December 31, 2001 are treated as
         discontinued operations,  and operating income and expense is reflected
         as a component of discontinued operations.

   o  "Mortgage  loans  held for sale" were loans  originated  that the  Company
      intended to sell or  securitize.  They were  recorded at fair market value
      which was estimated using quoted prices, the present value of the expected
      cash flows and the  estimated  impact of any  defaults,  and may have been
      recorded at an amount  greater than cost.  In December  2003,  the Company
      re-designated  the  majority  of these  loans  to  reflect  the  Company's
      intention to hold them to maturity and terminated  the related  derivative
      instrument hedging these loans.

   o  "Mortgage  notes  receivable"  differ from "mortgage  loans held for sale"
      primarily  because of  management's  intention to hold the mortgage to its
      maturity.  These  financial  assets are  recorded  at the lower of cost or
      market.  Certain assets have been  reclassified  from "mortgage loans held
      for sale" into the "mortgage notes  receivable"  category when, in lieu of
      selling the  mortgages,  the Company  elects to refinance  such  mortgages
      using longer-term debt. In the case of such  reclassified  mortgages,  the
      Company  records  these at the value on the refinance  date.  The value at
      such  date  may  differ  from  the par  value  of the  loan  with any such
      difference  being  amortized to earnings  over the  remaining  life of the
      mortgage loans as a yield adjustment.

   o  Certain loans  originated by the Company were sold to  independent  trusts
      that, in turn, issued securities to investors backed by these assets.  The
      Company  retains the  servicing  rights and  participates  in certain cash
      flows from the trusts.  The present  value of expected  excess of net cash
      flows,   after  payment  of  principal  and  interest  to  bond  or  other
      certificate  holders,  over the estimated cost of servicing is recorded at
      the time of sale as a retained interest. Retained interests in securitized
      assets are  included in other  investments.  Accounting  for the  retained
      interests  requires that the Company  estimate  values using market trends
      and  historical  experience,   expected  prepayments  and  defaults.  This
      information is considered,  along with  prevailing  discount rates and the
      terms of the bonds and certificates,  to arrive at an initial value and to
      periodically review the value for gains or losses.  Permanent impairments,
      representing  the excess of carrying  value over  estimated  current  fair
      value, are recorded as an expense.

   o  Management  reviews,  no less than  annually,  its  long-lived  assets for
      impairment or potential loss as events or circumstances  indicate that the
      carrying amount of the assets may not be recoverable.  Management compares
      the estimated future undiscounted cash flows, including the residual value
      of the property or  collateral,  with the carrying cost of the  individual
      asset.  If  impairment  is  indicated,  the  assets  are  adjusted  to the
      estimated fair value. In addition, management evaluates the carrying value
      of goodwill on a periodic  basis to determine if an  impairment  is deemed
      necessary.

   o  The Company has also entered into certain derivative contracts in order to
      hedge its exposure to fluctuations in interest rates on variable rate debt
      qualifying  for  treatment  as cash flow  hedges.  As long as this certain
      criteria for hedge  accounting  are met the changes in fair value of these
      contracts  is  reflected  in other  comprehensive  income  (loss) and as a
      component  of  stockholders'  equity.  If the  requirements  are not  met,
      changes in the fair value of these contracts are reflected in earnings.

   o  Valuation  of deferred  tax assets.  The Company  accounts for federal and
      state income taxes with  respect to its TRS  subsidiaries  using the asset
      and liability  method.  Deferred tax assets and liabilities are recognized
      for the future tax  consequences  attributable to differences  between the
      consolidated  financial statements carrying amounts of existing assets and
      liabilities  and respective tax bases and operating  losses and tax-credit
      carry  forwards.  Deferred tax assets and  liabilities  are measured using
      enacted  tax rates  expected  to apply to  taxable  income in the years in
      which those temporary differences are expected to be recovered or settled.
      The effect on deferred tax assets and liabilities of a change in tax rates
      is recognized in income in the period that includes the enactment date. In
      the event that these assumptions change the deferred taxes may change.

      Valuation allowances are established when necessary to reduce deferred tax
      assets to the amount expected to be realized.  The valuation  allowance is
      based on the  Company's  estimates  of future  taxable  income and ongoing
      prudent and feasible tax planning strategies. Should the Company determine
      it would not be likely to  realize in full the  deferred  tax asset in the
      future,  the  Company  would  record a valuation  allowance  to reduce the
      deferred  tax  asset  to an  amount  that is more  likely  than  not to be
      realized. An adjustment to the deferred tax asset would decrease income in
      the period the determination was made.

      In estimating  future  taxable  income,  the Company must estimate  future
      income using  historical  data,  the expected  growth rate of revenues and
      expenses,  the  effect of  capital  expenditures,  and  future  market and
      economic  conditions.  Variability  of these and other  assumptions  could
      result in an inability  to recover the carrying  value of the deferred tax
      assets.

New Accounting Pronouncements.

The implementation of certain accounting  pronouncements have not had a material
impact on the Company's  results of  operations.  In January 2003, the Financial
Accounting  Standards Board (the "FASB") issued FAS  Interpretation No. 46 ("FIN
46"),  "Consolidation  of 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.
The consolidation  requirements of FIN 46 apply immediately to variable interest
entities created after January 31, 2003, and to older entities no later than the
first fiscal year or interim period ending after  December 15, 2003.  Management
adopted this standard in 2003 which resulted in the  consolidation of two of the
Company's previously unconsolidated subsidiaries.  Adoption of this standard did
not  change  the  Company's  accounting  for  the  Company's  bankruptcy  remote
securitization  entities.  The Company  restated all prior periods  presented to
conform with the 2003  presentation.  The  consolidation  did not  significantly
impact the Company's financial position or results of operations.

In December 2003, the FASB issued FIN 46R,  "Consolidation  of Variable Interest
Entities".   This  Interpretation   requires  existing  unconsolidated  variable
interest entities to be consolidated by their primary beneficiaries. The primary
beneficiary of a variable  interest  entity is the party that absorbs a majority
of the entity's  expected losses,  receives a majority of its expected  residual
returns,  or both,  as a result of  holding  variable  interests,  which are the
ownership,  contractual,  or other pecuniary  interests in an entity that change
with  changes in the fair value of the entity's  net assets  excluding  variable
interests.  Prior to FIN 46R, a company generally included another entity in its
consolidated  financial  statements  only if it  controlled  the entity  through
voting interests.  Application of FIN 46R is required in financial statements of
public  entities that have interests in variable  interest  entities for periods
ending after March 15, 2004. The Company does not expect that the application of
this  Interpretation will have a significant effect on its financial position or
results of operations.

In May 2003,  the FASB issued  Statement of Financial  Accounting  Standards No.
150, "Accounting for Certain Financial  Instruments with Characteristics of both
Liabilities and Equity" ("FAS 150").  FAS 150  establishes  standards for how an
issuer   classifies   and   measures   certain   financial    instruments   with
characteristics  of both liabilities and equity. FAS 150 will require issuers to
classify  certain  financial  instruments  as  liabilities  (or  assets  in some
circumstances)  that previously were classified as equity.  Some of the examples
of financial  instruments covered by FAS 150 include shares that are mandatorily
redeemable,  and  other  financial  instruments  that  embody an  obligation  to
repurchase   outstanding  shares  or  a  conditional  obligation  that  requires
settlement  by issuing a variable  number of the entity's  shares.  FAS 150 also
requires that minority  interests  for majority  owned finite lived  entities be
classified as a liability  and recorded at fair market value.  FAS 150 initially
applied immediately to all financial  instruments entered into or modified after
May 31, 2003,  and otherwise was effective at the beginning of the first interim
period  beginning  after June 15,  2003.  Effective  October 29,  2003,  the FAS
deferred  implementation  of FAS 150,  as it applies to  minority  interests  of
finite  lived  Partnerships.  The  deferral of these  provisions  is expected to
remain in effect while these  interests  are addressed in either Phase II of the
FASB's  Liabilities  and  Equity  project  or  Phase II of the  FASB's  Business
Combinations  Project;  therefore,  no specific timing for the implementation of
these provisions has been stated. The implementation of the currently  effective
aspects of FAS 150 did not have a material  impact on the  Company's  results of
operations.

Results from Operations

The  Company  generated  net  income  of $42.4  million  and $35.6  million  and
generated a loss of $24.5  million for the years ended  December 31, 2003,  2002
and  2001,  respectively.  The 19  percent  increase  in net  income  in 2003 as
compared  to 2002 was the result of a  combination  of factors  including  lower
general,  operating  and  administrative  expense  and  decreased  losses in the
mortgage  loans held for sale.  The Company  undertook an  initiative  to reduce
general operating expenses by transferring  certain functions out of the Company
as  described  below.  In  addition,  property  expenses  were  lower in 2003 as
compared to 2002 due to  resolutions  of 2002  bankruptcies  and selling  vacant
properties  that  incurred  property  expenses  during  2002.  The Company  also
benefited from a decrease in interest expense  resulting from low interest rates
in the  economy as well as having  lower  amounts  outstanding  under its credit
facilities  than in 2002. The decrease in amounts  outstanding  under its credit
facilities  was the result of paying  down  principal  in  accordance  with loan
repayment  terms,  selling  properties  financed with debt under the  Investment
Sales Program and not having to borrow as much due to low  originations  volume.
The  loss  during  2001  was  primarily  the  result  of the  Company  recording
provisions for loan losses and impairment  provisions relating to several tenant
and borrowers who  experienced  financial  difficulties or filed for bankruptcy.
Net  earnings  in 2003 and 2002 also  benefited  from  creating  the  Investment
Property Sales Program that only had a partial year benefit in 2001.

The following  discussion of results from operations is by segment.  All segment
results are before  eliminating  adjustments and results of the holding company.
As a result,  the sum of amounts  applicable  to each  segment will not, in some
cases,  equal the Company total amount  reflected in the condensed  consolidated
statement of operations.  Company  earnings by segment reflect  restatements for
prior periods resulting from consolidating previously unconsolidated entities in
accordance with the  implementation  of new accounting  pronouncements.  Company
earnings are as follows for each of the years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                      (In Millions)
                                                      % of                        % of                      % of
Net income/(loss) by segment              2003         Total         2002          Total         2001       Total
                                        ----------    --------    -----------    ----------    ---------    -------

Real estate segment                       $  27.7       65%        $  23.2           65%       $ (22.8 )     (93% )
Specialty finance segment                    14.9       35            12.6           35            0.4         2
Other holding company results,
   results for periods prior to
   segment reporting and
   consolidating eliminations                (0.2)      --            (0.2  )        --           (2.1 )      (9  )
                                        ----------    --------    -----------    ----------    ---------    -------
     Net income/(loss)                    $  42.4      100%        $  35.6          100%       $ (24.5 )    (100% )
                                        ==========    ========    ===========    ==========    =========    =======
</TABLE>

o    The real estate segment  posted a 19 percent  increase in earnings in 2003.
     The improved  operating  performance  was due to incurring  lower  general,
     operating  and  administrative  expenses,  interest  expense  and  property
     expenses  in 2003 as  compared  to 2002.  The real  estate  segment  posted
     earnings  in 2002 as compared  to a loss in 2001 that  resulted  when $28.2
     million in loan reserves and $26.9 million in real estate  impairments were
     recorded  in  2001  in   connection   with  certain   borrower  and  tenant
     delinquencies.  Exclusive  of these  charges  in each  year,  the  improved
     performance  of the  real  estate  segment  during  the  comparative  years
     reflects the 2002 initiative to sell vacant and under-performing properties
     and use the  proceeds to reduce debt.  The sales  resulted in a net gain of
     $3.3 million and generated  sales  proceeds that were applied to reduce the
     business segment's overall debt by $44.7 million during 2002.

o    The specialty  finance segment  reported an 18 percent increase in earnings
     in 2003 as compared to 2002 due to a one time  benefit from income taxes of
     approximately  $6.5 million.  The benefit resulted from the reversal of the
     valuation  allowance on deferred tax assets,  as further  described  below.
     Absent this one time benefit,  operating results would have decreased by 33
     percent to $8.4  million in 2003,  as  compared  to $12.6  million in 2002.
     Despite a decrease in interest  expense,  overall net income was lowered by
     an increase in provisions  for loan losses and a decrease in the net spread
     between the segment's rental and interest income and its interest  expense.
     The decrease in the spread was primarily due to a decrease in rental income
     from lower originations  volume and less inventory levels available to earn
     this spread income pending the sale of the properties  under the Investment
     Property Sales Program.  Operating  results of $12.6 million were higher in
     2002 as compared to  operating  results of $0.4  million in 2001 due to the
     expansion of the Investment  Property Sales Program which sold $288 million
     of real estate  properties during 2002 as compared to $128 million in 2001,
     representing an increase of 125 percent.  Gains from these sales were $24.6
     during 2002 as compared to $10.1 during 2001,  representing  an increase of
     144 percent.

Revenues
<TABLE>
<CAPTION>

 <c>
                                                              For the year ended December 31,

    Total revenues by segment (in                         % of                   % of                    % of
       millions)                               2003       Total       2002       Total        2001       Total
                                              --------    ------     --------    -------     --------    ------

    Real estate segment                        $ 85.2      75%       $   88.6        26%        $ 88.7      32%
    Specialty finance segment*                   32.3      28           250.8        75          190.1      69
    Other holding company results,
       results for periods prior to
       segment reporting and
       consolidating eliminations                (3.2)     (3  )         (3.2 )      (1 )        (4.4)      (1 )
                                              --------    ------     --------    -------     --------    ------
         Total revenues*                      $ 114.3     100%        $ 336.2       100%       $ 274.4     100%
                                              ========    ======     ========    =======     ========    ======
</TABLE>

*    See  discussion  below  for  accounting  treatment  of sales of  restaurant
     properties as discontinued operations.

Revenues are discussed based on the individual  segment  results  beginning with
the results of the real estate segment through CNL-Investments:
<TABLE>
<CAPTION>

 <c>
                                                             For the year ended December 31,

   Real estate segment revenues by                      % of                   % of                    % of
      line item (in millions)                2003       Total      2002       Total        2001       Total
                                            --------    -------  ---------    -------     -------     ------
   Rental income from operating
      leases and earned income from
      direct financing leases                 $72.1     85%       $ 72.1        81%       $ 73.3       82%
   Interest income from mortgage
      equipment and other notes
      receivable                                4.2      5           4.2        5            4.3        5
   Investment and interest income               4.5      5           4.8        5            5.1        6
   Other income                                 4.4      5           7.5        9            6.0        7
                                            --------    -------  ---------    -------     -------     ------
        Total segment revenues               $ 85.2      100%     $ 88.6       100%       $ 88.7      100%
                                            ========    =======  =========    =======     =======     ======
</TABLE>

The rental  revenue from vacant and other  properties  sold was  classified as a
component  of  discontinued  operations  for all periods  presented  and was not
included in the segment  revenues  above.  The combined  amount of rental income
from  operating  leases and earned  income  from  direct  financing  leases from
continuing  operations for 2003, 2002 and 2001 did not change  significantly for
each of the years presented.

Other  income in the real estate  segment  decreased  during 2003 as compared to
2002 as a result of decreased  billings of direct costs to third  parties  using
CNL-Investments  for property  management  services.  During  2003,  the Company
transferred certain functions to CFG, an affiliate, thereby reducing general and
operating expenses, as well as reducing the billings of these expenses collected
from third parties.  Other income was higher in 2002 as compared to each of 2003
and 2001 due to the fact that during 2002, the Company earned  disposition  fees
and recorded as income the settlement proceeds collected from one of its tenants
who filed for bankruptcy. No such amounts were recorded during 2003 or 2001.


<PAGE>


The revenues of the  specialty  finance  segment  through  CNL-Capital  are more
variable than those of the real estate  segment.  The following  table  provides
additional information relating to the revenues of this segment:
<TABLE>
<CAPTION>

 <c>
                                                             For the year ended December 31,
   Specialty finance segment
      revenues by line item (in                         % of                    % of                    % of
      millions)                              2003       Total        2002       Total        2001       Total
                                            --------    -------    ---------    -------     -------     ------
   Sale of real estate                       $ --         --%      $ 209.5        84%      $ 128.5       68%
   Rental income from operating
      leases and earned income from
      direct financing leases                  --         --           7.7         3          15.4        8
   Interest income from mortgage
      equipment and other notes
      receivable                               25.6       79          30.4        12          36.6       19
   Investment and interest income               0.8        2           1.4        --           1.5        1
   Net decrease in value of mortgage
      loans  held  for  sale,   net  of
      related hedge                            (1.9)      (5 )        (5.4 )      (2 )       (5.1)       (3 )
   Gain on sale of mortgage loans                --                     --                    4.1         2
   Other income                                 7.8        24          7.2         3          9.1         5
                                            --------    -------    ---------    -------     -------     ------
                                             $ 32.3       100%     $ 250.8       100%      $ 190.1      100%
                                            ========    =======    =========    =======     =======     ======
</TABLE>

The  comparability  of the specialty  finance segment  revenues is significantly
impacted  by the  method of  accounting  for its sales of real  estate  that are
recorded  pursuant to  discontinued  operations  guidance.  This program was not
started until 2001. The following  information  presents the Investment Property
Sales Program sales:

<TABLE>
<CAPTION>

 <c>

Specialty finance segment Investment Property Sales                      For the year ended December 31,
     Program sales (in millions)                                  2003             2002             2001
                                                             ------------    -------------     -----------
Sale of real estate, as reported                                   $  --         $  209.5       $ 128.5
Cost of real estate sold, as reported                                 --           (193.2)       (118.4  )
Gain on disposal of discontinued operations, net as
      reported                                                      24.9              8.3            --
                                                             ------------    ------------     -----------

         Total gains from Investment Property Sales
            Program sales                                        $  24.9         $   24.6       $  10.1
                                                             ============    ============     ===========
</TABLE>

CNL-Capital sold 147, 182 and 90 properties under the Investment  Property Sales
Program in 2003, 2002 and 2001,  respectively.  Additional information on actual
proceeds,  purchases  and  related  gains is located in  "Liquidity  and Capital
Resources - Specialty Finance Segment  (CNL-Capital) - Investment Property Sales
Program."

Other matters impacting the comparability of the various  components of revenues
during the three years ended December 31, 2003, 2002 and 2001 include:

o    Rental income from operating leases reflects a decrease because in 2002 and
     2001,  rental revenues  associated with properties  acquired after December
     31,  2001  were  recorded  as  a  component  of  income  from  discontinued
     operations while properties acquired prior to January 1, 2002 were recorded
     in rental income.  Beginning January 1, 2003,  however,  these revenues are
     recorded in discontinued  operations regardless of the date of acquisition.
     All properties owned by this segment are held with the intent to be sold.

o    Interest  income  from  mortgage,  equipment  and  other  notes  receivable
     decreased 16 percent and 17 percent during 2003 and 2002,  each as compared
     to the previous year, as a result of normal principal repayments as well as
     foreclosure  actions,  the  modification  of terms  and  other  impacts  of
     delinquent loans between years. The Company has not originated new mortgage
     loans  since May of 2001,  focusing  instead  on the  opportunity  to refer
     potential borrowers to CNL-Capital's financial institution partner.

o    Despite a hedging  strategy  designed to address  market  volatility in the
     value of loans held for sale, the loan valuation increases  associated with
     decreases  in  interest  rates for  mortgage  loans  held for sale,  net of
     related hedge, were more than offset by estimated  potential default losses
     and  valuation  decreases  (liability  increases) in hedge  contracts.  The
     results  improved in 2003 as compared  to 2002 due to  improvements  in the
     hedge valuations  partially offset by increased  potential  default related
     loan   reserves.   In  addition,   the  decrease  in  2003   resulted  from
     CNL-Capital's sale of its remaining loans to CNL-Investments in conjunction
     with CNL-Investments issuing bonds on the new 2003 pool.

o    Investment and interest income  associated  with retained  interests in the
     off balance sheet loan pools decreased by 43 percent in 2003 as a result of
     certain pool defaults and prepayments in 2002 and 2003.

o    During 2001,  CNL-Capital sold a portfolio of approximately $127 million in
     loans through private market sales channels  resulting in a gain on sale of
     mortgage  loans of $4.1  million.  No such sales  occurred  during 2002 and
     2003.

o    Other income  reflects,  among other items,  fees from  advisory  services,
     servicing  income and referral  fees for loans and other  products from the
     Bank. Other income was 21 percent lower during 2002 as compared to 2001 due
     to a decrease of approximately  $0.8 million in referral fees from the Bank
     in 2002 as compared to 2001. Other income was higher in 2001 as compared to
     each of 2003  and  2002 by  approximately  $1  million  due to the  Company
     selling  approximately  $127  million in loans  during  2001 using  private
     market sales channels. The sale of these loans triggered the recognition of
     the remaining $1 million in deferred  origination  fees  collected on these
     loans when they were originated.

Expenses

Excluding  costs of sales,  expenses  decreased  during  2003 and 2002,  each as
compared to the previous year. General operating and administrative expenses and
interest  expense  were lower  during  2003 and 2002,  each as  compared  to the
previous year, due to the Company's  initiative of outsourcing some functions to
reduce  expenses.  Interest  expense was lower for each period  presented due to
declining  interest  rates  and  having  lower  amounts  outstanding  under  its
borrowings.

Cost of real  estate  sold is  associated  with the  Investment  Property  Sales
Program of the specialty finance segment and relates to properties held for sale
at the end of  2001  that  were  sold by  December  31,  2002.  In  2002,  costs
associated with properties acquired after 2001 were required to be included as a
component of the gain on disposal of discontinued operations, while in 2003 this
treatment  is  required  regardless  of  acquisition  date.  A table and related
discussion of the comparative  results is reported above under the discussion of
related revenues.

General   operating   and   administrative   expenses   consist   primarily   of
payroll-related and legal and other professional  expenses.  The following table
illustrates the comparative period expenses by segment:


<PAGE>

<TABLE>
<CAPTION>

 <c>

                                                              For the year ended December 31,
    General operating and admini-
       strative expenses by segment (in                   % of                   % of                    % of
       millions)                               2003       Total       2002       Total        2001       Total
                                             --------    ------     --------    -------    --------     ------

    Real estate segment                       $ 9.0         36%       $ 11.8        42%      $ 8.8        30%
    Specialty finance segment                  18.6         74          19.0        67        22.6        76
    Other holding company results,
        results for periods prior to
       segment reporting and
       consolidating eliminations              (2.4)       (10 )        (2.4 )      (9 )      (1.8)       (6 )
                                             --------    ------     --------    -------    --------    ------
         Total general operating and
           administrative expenses           $ 25.2        100%       $ 28.4       100%     $ 29.6       100%
                                             ========    ======     ========    =======    ========    ======
</TABLE>

o    CNL-Investments' general operating and administrative expenses decreased by
     24 percent  during  2003 as  compared  to 2002 as a result of  transferring
     certain financial and strategic functions,  including  transferring certain
     employees  relating to the  management  of the  external  portfolios,  to a
     subsidiary of CFG, an affiliate.  General and administrative functions were
     34 percent  higher  during 2002 as compared to 2001  because  during  2002,
     CNL-Investments  increased its workout activity to deal with several tenant
     defaults  and  bankruptcies  that it did not  experience  during  2001.  If
     CNL-Investments  had not transferred  certain  functions to a subsidiary of
     CFG during 2003, general operating and  administrative  expenses would have
     been comparable between 2002 and 2003.

o    CNL-Capital's  general  operating and  administrative  expenses were fairly
     constant  between  2003 and  2002.  General  operating  and  administrative
     expenses  decreased  by 16 percent  during  2002 as compared to 2001 due to
     CNL-Capital  undertaking  cost cutting  initiatives in 2001 that included a
     reduction of employees.  CNL-Capital has continued to control personnel and
     payroll related costs in this segment.  In addition,  general operating and
     administrative expenses in 2001 included higher legal expenses incurred due
     to  resolution  of  troubled  loans and were at levels  higher  than  those
     incurred during 2003 and 2002.

Interest  expense  constitutes one of the most significant  operating  expenses,
excluding cost of real estate sold by  CNL-Capital,  which is a component of the
gain from the disposal of discontinued  operations for properties acquired after
2001.   Certain  interest   expense  is  included  in  operating   results  from
discontinued   operations.   Components  of  interest  expense  from  continuing
operations are as follows:
<TABLE>
<CAPTION>

 <c>
                                                              For the year ended December 31,

    Interest expense by segment (in                       % of                   % of                    % of
       millions)                               2003       Total       2002       Total        2001       Total
                                              --------    ------     --------    -------    --------    ------

    Real estate segment                          $ 27.5      54%       $ 30.6        52%      $ 38.8      56%
    Specialty finance segment                      23.7      47          28.5        49         31.8      45
    Other holding company results and
       consolidating eliminations                  (0.6)     (1 )        (0.7 )      (1 )       (0.8)     (1 )
                                              --------    ------     --------    -------     --------    ------
         Total interest expense                  $ 50.6     100%       $ 58.4       100%      $ 69.8     100%
                                              ========    ======     ========    =======     ========    ======

</TABLE>


<PAGE>



o    CNL-Investments  decreased  its level of debt  throughout  most of 2003 and
     2002 through the sales of real estate.  The segment  realized a decrease of
     10  percent  and  21  percent  in  interest   expense  in  2003  and  2002,
     respectively,  each as compared to the previous  year. The decrease in 2002
     resulted from the repayment of the Note Payable with proceeds of the Series
     2001 Bonds issued in October 2001,  which carried a lower rate of interest.
     Interest  expense also decreased due a decline in weighted average balances
     outstanding on its borrowings during 2003 as compared to 2002.

o    CNL-Capital has reduced its  interest-bearing  debt,  partly due to holding
     lower  inventory  levels of  properties  held for sale.  The  reduction  in
     available  inventory occurred because  CNL-Capital  generated $194 and $288
     million in Investment  Property Sales properties  throughout 2003 and 2002,
     respectively,  while acquiring only $169 and $263 million, respectively, in
     new properties. Declining interest rates also contributed to lower interest
     expense  in 2003 and 2002,  each as  compared  to the  previous  year.  The
     weighted average interest charged by the mortgage  warehouse  facilities to
     fund property  acquisitions  decreased from 5.13 percent to 4.07 percent to
     3.41  percent in 2001,  2002 and 2003,  respectively.  The  decrease in the
     weighted  average rates charged on borrowings  from the mortgage  warehouse
     facilities was partially  offset by the 5.87 percent  weighted average rate
     charged by the  five-year  financing of over $225  million  entered into in
     June 2002. By removing these assets from warehouse  financing,  CNL-Capital
     complied with the terms of the warehouse  facility and was able to preserve
     net spread  resulting from the excess of the interest  income received over
     the interest  expense paid,  despite the increased  interest expense on the
     five-year financing.

Property  expenses  typically  occur when  properties  are defaulted in the real
estate  segment.  The Company  recognized  $0.9  million,  $3.2 million and $2.0
million in property expenses during 2003, 2002 and 2001, respectively.  Property
expenses  were  higher  in 2002 and 2001 due to three  major  tenants  declaring
bankruptcy and rejecting  numerous leases that resulted in the Company incurring
real estate taxes, insurance,  repairs and maintenance and legal fees related to
dealing with resolution of the assets within  bankruptcies.  Phoenix  Restaurant
Group, Inc. and its subsidiaries,  (collectively referred to as "PRG") filed for
bankruptcy in 2001 and Roadhouse Grill, Inc.  ("Roadhouse Grill") and Houlihan's
Restaurant  Group  ("Houlihan's")  filed for bankruptcy in 2002. In 2003,  fewer
vacant  properties  were on hand incurring these expenses as opposed to 2002 and
2001.  Some  expenses  formerly  presented  in  this  category  associated  with
properties treated as discontinued  operations are incorporated in the income or
loss from discontinued operations for all years presented.

Depreciation and  amortization  expenses reflect the level of assets invested in
leased  properties  held by the real estate  segment.  Certain of these expenses
have been  reflected as a component of  discontinued  operations.  The specialty
finance segment does not depreciate its properties held for sale, but along with
CNL-Investments,  CNL-Capital  has recorded  depreciation on office and computer
equipment   during  2003,  2002  and  2001,   respectively.   Depreciation   and
amortization expense during 2001 included goodwill amortization of $3.1 million.
As a result of new accounting rules, no amortization of goodwill was recorded in
2002 and 2003.

CNL-Capital  recorded a loss on  termination  of cash flow hedge of $0.5 million
and  $8.1  million  in 2003  and  2001,  respectively.  Most of the loss in 2001
resulted  when  CNL-Capital  focused on its  Investment  Property  Sales Program
instead of on securitizations. This change in focus was the result of changes in
market  conditions.  The loss during 2003 relates to the  prepayment of mortgage
loans by a borrower  causing  CNL-Capital  to pay down a portion of the  related
debt  collateralized by these mortgage loans and to also unwind a portion of the
related swap.

Impairments  and  provisions on assets  consist of bad debt expense  relating to
receivables  that management  deemed  uncollectible,  provisions for loan losses
associated  with  non-performing  loans,  valuation  allowances  associated with
investments  in  the  1998-1  and  1999-1  residual   interests  and  impairment
provisions  on  properties  (excluding  impairments  on  properties  treated  as
discontinued operations as described below). The following table illustrates the
comparative period expenses by segment:


<PAGE>

<TABLE>
<CAPTION>

 <c>

                                                            For the year ended December 31,

    Impairments and provisions on                        % of                   % of                    % of
       assets (in millions)                   2003       Total       2002       Total        2001       Total
                                            --------    ------     --------    -------     --------   ------

    Real estate segment                       $ 5.5      38%        $ 4.5        47%        $ 41.0      99%
    Specialty finance segment                   8.8      62           5.1        53            0.5       1
                                            --------    ------     --------    -------     --------    ------
                                             $ 14.3     100%        $ 9.6       100%        $ 41.5     100%
                                            ========    ======     ========    =======     ========    ======
</TABLE>

CNL-Investments  recorded  provisions  for loan losses of $0.8 million and $28.2
million  during  2003 and 2001,  respectively,  associated  with  non-performing
loans.  The  provisions  for loan losses during 2001 related  primarily to loans
from  PRG,   which   declared   bankruptcy  in  2001,   based  on   questionable
collectibility of the loans.  CNL-Investments  recorded impairment provisions of
$4.7  million,  $4.5  million  and $12.8  million  during  2003,  2002 and 2001,
respectively,  excluding  impairments  on  properties  treated  as  discontinued
operations  as described  below.  The  impairments  related to  properties  from
defaulted  tenants,  including  properties  previously leased to PRG,  Roadhouse
Grill,  Houlihan's and Chevy's, all of which declared bankruptcy during 2001 and
2002. The impairments  represented the difference between the net carrying value
of the properties and the estimated fair value of the properties.

CNL-Capital recorded provisions for loan losses of $4.7 million and $3.2 million
in 2003 and 2002, respectively, associated with non-performing loans. Management
evaluates its loan  portfolio  and records a reserve as potential  losses become
evident.  CNL-Capital also recorded reserves or write-offs of $1.6 million, $1.9
million and $0.1 million during 2003, 2002 and 2001,  respectively,  relating to
its 1998-1 and 1999-1  residual  interests.  CNL-Capital  recorded these amounts
based on its determination that a permanent  impairment in value had occurred as
a result of certain  borrower  delinquencies  within  these  securitized  pools.
CNL-Capital  also  recorded  bad debt  expense of $2.5  million and $0.4 million
during 2003 and 2001,  respectively,  relating to  receivables  that  management
elected to write-off.

Discontinued Operations

The Company  accounts for certain of its  revenues  and expenses as  originating
from  discontinued  operations  pursuant to Statement  of  Financial  Accounting
Standard  No. 144  "Accounting  for the  Impairment  or Disposal  of  Long-Lived
Assets"  ("FAS  144").  FAS 144  requires  that  sales  of real  estate,  or the
designation of a real estate asset as held for sale, be treated as  discontinued
operations.  Any gain or loss from such disposition,  and any income or expenses
associated with these real estate assets,  are included in the income  statement
as discontinued  operations.  CNL-Capital's Investment Property Sales program, a
vital piece of its ongoing  operating  strategy,  falls under the new  guidance.
Therefore,  gains from  properties  sold  under the  Investment  Property  Sales
program are included as discontinued operations, unless the gain was realized in
2002 for  properties  acquired  before  January  1, 2002.  Income  and  expenses
associated  with  Investment  Property Sales program assets are also included in
discontinued  operations,  except for 2002 income and expenses  associated  with
properties  acquired  before  January 1, 2002 and sold by December 31, 2002.  In
addition,  CNL-Investments  has  designated  certain  real estate  assets  since
December  31,  2001 as held  for  sale  and has  included  income  and  expenses
associated with the assets as well as the gain or loss from any  dispositions of
these assets as discontinued operations for all periods presented.

During 2002,  the Company  purchased the operations of certain  restaurants.  In
December 2003, the Company  decided to dispose of these  restaurant  operations.
All operating results relating to these restaurant operations have been recorded
as  discontinued  operations.  The table  below  illustrates  the  treatment  of
discontinued operations by segment for each of the years ended December 31:


<PAGE>

<TABLE>
<CAPTION>

 <c>

Income from discontinued operations
  by segment (in millions)                             2003          2002           2001
                                                   -------------  ------------   -----------

Real estate segment discontinued operations:
     Operating loss                                    $   (6.2 )     $  (6.6 )     $  (5.3 )
     Gains on disposal                                      3.7           3.3            --
Specialty finance segment discontinued operations:
     Operating income                                       5.9           3.2           0.4
     Gains on disposal                                     24.6           8.3            --
     Income tax benefit                                     6.3            --            --
                                                   -------------  ------------   -----------
       Total income (loss) from discontinued
          operations                                   $   34.3       $   8.2       $  (4.9 )
                                                   =============  ============   ===========
</TABLE>

The operating loss of the real estate segment includes impairment  provisions of
$6.8  million,  $8.9  million  and $14.1  million  during  2003,  2002 and 2001,
respectively.  These impairments  related primarily to properties from defaulted
tenants that were later designated as held for sale or sold through December 31,
2003. The operating income of the specialty finance segment includes  impairment
provisions of $1.4 million and $0.7 million during 2003 and 2002,  respectively,
that were  related to  properties  designated  as held for sale or sold  through
December 31, 2003. The restaurant operations generated revenues of $13.7 million
and $2.4  million  during 2003 and 2002,  respectively,  and  generated  related
expenses of $14.2 million and $2.8 million, respectively.

Income Tax Benefit

The Company is primarily treated as a REIT and generally records no tax expense.
However,  effective  January 1, 2001, the activities of CNL-Capital  and certain
activities of CNL-Investments  are taxable pursuant to rules governing TRSs. The
Company has not  reflected  an income tax expense to date  through  December 31,
2003. This is attributed to the following:

      o  At the time of the election,  differences  existed  between the tax and
         the  financial  reporting  treatment of certain items such as loan loss
         reserves  and  reserves  for  impairment  and   depreciation.   In  the
         aggregate,  these differences served to defer deductions and accelerate
         income  reported for tax purposes  prior to the TRS election,  with the
         benefit of the reversal of such differences attributed to the TRS. This
         benefit gave rise to a deferred tax asset.  Management  did not believe
         that the  realization  of the  deferred  tax asset was more likely than
         not.  Therefore  the  deferred  tax  asset was  completely  offset by a
         valuation allowance, and no benefit was recognized January 1, 2001.

      o  As the  CNL-Capital  TRS generated  earnings  subsequent to its initial
         year,  management reversed the extent of the valuation allowance,  thus
         recognizing some net deferred tax asset as adjusted by current changes.
         This  reversal  created a net  deferred  tax asset  that had  generally
         approximated  the  cumulative  tax being paid. As of December 31, 2003,
         CNL-Capital reversed the valuation allowance of $6.3 million previously
         recorded  by the  CNL-Capital  TRS  against  its  deferred  tax  asset.
         CNL-Capital  determined  that is was more  likely  than  not that  this
         deferred tax asset will be realized  based on  historical  earnings and
         projected  future income of  CNL-Capital.  As of December 31, 2003, the
         CNL-Investments TRS had a deferred tax asset of $0.8 million.  This TRS
         has not yet generated any taxable  income.  Therefore,  CNL-Investments
         established a valuation allowance to completely offset the deferred tax
         asset.

Item 7a. Quantitative and Qualitative Disclosures About Market Risk

This  information  is described  above in Item 7.  Management's  Discussion  and
Analysis of Financial Condition and Results of Operations.

Item 8.  Financial Statements and Supplementary Data


<PAGE>











               Report of Independent Certified Public Accountants



To the Board of Directors and Stockholders of
CNL Restaurant Properties, Inc.


In our opinion,  the  accompanying  consolidated  balance sheets and the related
consolidated statements of operations, of stockholders' equity and comprehensive
income/(loss),  and of cash flows present fairly, in all material respects,  the
financial  position of CNL Restaurant  Properties,  Inc. and its subsidiaries at
December 31, 2003 and 2002,  and the results of their  operations and their 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  consolidated  financial  statements.  These  financial  statements  and
financial   statement   schedules  are  the   responsibility  of  the  Company'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  discussed  in Notes 1 and 8 to the  consolidated  financial  statements,  on
January 1, 2001 the Company  changed  its method of  accounting  for  derivative
financial  instruments  and on January  1, 2002 the  Company  adopted  Financial
Accounting Standards No. 142 "Goodwill and other Intangible Assets", and No. 144
"Accounting for the Impairment or Disposal of Long-Lived Assets."



/s/ PricewaterhouseCoopers LLP

Orlando, Florida
March 12, 2004




<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (In thousands except for share data)

<TABLE>
<CAPTION>

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

Real estate investment properties                                           $    542,972             $    553,730
Net investment in direct financing leases                                        103,662                  110,926
Real estate and restaurant assets held for sale                                  131,210                  185,718
Mortgage loans held for sale                                                       1,490                   37,407
Mortgage, equipment  and  other  notes  receivable, net of
   allowance of $13,964 and $12,062, respectively                                320,900                  334,499
Other investments                                                                 29,671                   32,163
Cash and cash equivalents                                                         36,955                   16,579
Restricted cash                                                                   12,462                    4,574
Receivables, less allowance for doubtful accounts
    of $872 and $1,182, respectively                                               3,382                    3,214
Accrued rental income                                                             25,935                   21,920
Goodwill                                                                          56,260                   56,260
Other assets                                                                      33,217                   26,460
                                                                       ------------------       ------------------
                                                                           $   1,298,116            $   1,383,450
                                                                       ==================       ==================

LIABILITIES AND STOCKHOLDERS' EQUITY

Revolver                                                                    $      2,000             $     14,000
Note payable                                                                     182,560                  203,207
Mortgage warehouse facilities                                                     93,513                  145,758
Subordinated note payable                                                         43,750                   43,750
Bonds payable                                                                    430,011                  424,508
Due to related parties                                                            25,038                    5,702
Other payables                                                                    34,096                   33,512
                                                                       ------------------       ------------------
    Total liabilities                                                            810,968                  870,437
                                                                       ------------------       ------------------

Minority interests, including redeemable partnership interest                      7,262                   18,862

Commitments and contingencies (Note 15)

Stockholders' equity:
    Preferred stock, without par value.  Authorized
       and unissued 3,000,000 shares                                                  --                       --
    Excess shares, $0.01 par value per share.
       Authorized and unissued 78,000,000 shares                                      --                       --
    Common stock, $0.01 par value per share.  Authorized
       62,500,000 shares, issued 45,286,297 and 45,286,297
       shares, respectively, outstanding 45,248,670 and
       45,248,670 shares, respectively                                               452                      452
    Capital in excess of par value                                               826,627                  816,745
    Accumulated other comprehensive loss                                         (14,447 )                (16,862 )
    Accumulated distributions in excess of net earnings                         (332,746 )               (306,184 )
                                                                       ------------------       ------------------
       Total stockholders' equity                                                479,886                  494,151
                                                                       ------------------       ------------------

                                                                           $   1,298,116            $   1,383,450
                                                                       ==================       ==================
</TABLE>
          See accompanying notes to consolidated financial statements.

<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for share data and per share data)

<TABLE>
<CAPTION>

 <c>
                                                                               Year Ended December 31,
                                                                    2003                 2002                 2001
                                                                --------------       -------------        -------------
Revenues:
    Sale of real estate                                              $     --          $   209,498         $   128,480
    Rental income from operating leases                                61,293               67,939              74,558
    Earned income from direct financing leases                         10,890               11,892              12,387
    Interest income from mortgage, equipment and other
       notes receivables                                               29,807               34,555              40,831
    Investment and interest income                                      4,586                5,344               5,845
    Other income                                                        9,614               12,303              13,262
    Net decrease in value of mortgage loans
       held for sale, net of related hedge                             (1,853 )             (5,368 )            (5,070 )
    Gain on sale of mortgage loans                                         --                   --               4,120
                                                               ---------------      ---------------      --------------
                                                                      114,337              336,163             274,413
                                                               ---------------      ---------------      --------------
Expenses:
    Cost of real estate sold                                               --              193,179             118,372
    General operating and administrative                               25,208               28,433              29,592
    Interest expense                                                   50,576               58,401              69,750
    Property expenses                                                     933                3,241               1,954
    State and other taxes                                                 209                   88                 931
    Depreciation and amortization                                      12,521               13,133              17,715
    Loss on termination of cash flow hedges                               502                   --               8,060
    Impairments and provisions on assets                               14,250                9,626              41,488
                                                                                    ---------------      --------------
                                                               ---------------
                                                                      104,199              306,101             287,862
                                                               ---------------      ---------------      --------------
Earnings/(loss) from continuing operations before minority
    interest  in income of  consolidated  joint  ventures,
    equity in earnings of  unconsolidated  joint  ventures
    and loss on sale of assets                                         10,138               30,062             (13,449 )

Minority interest in income of consolidated joint ventures             (1,913 )             (2,409 )            (1,250 )

Equity in earnings of unconsolidated joint ventures                       108                  101                  98

Loss on sale of assets                                                   (157 )               (347 )            (1,138 )
                                                               ---------------      ---------------      --------------

Earnings/(loss) from continuing operations, net                         8,176               27,407             (15,739 )

Earnings/(loss) from discontinued operations, net of
   income tax benefit                                                  34,264                8,183              (4,872 )
                                                               ---------------      ---------------      --------------

Earnings/(loss) before cumulative effect of accounting
    change                                                             42,440               35,590             (20,611 )
                                                               ---------------      ---------------      --------------

Cumulative effect of accounting change                                     --                   --              (3,841 )
                                                               ---------------      ---------------      --------------

Net income/(loss)                                                 $    42,440       $       35,590         $   (24,452 )
                                                               ===============      ===============      ==============

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

<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands except for share data and per share data)

<TABLE>
<CAPTION>

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

Earnings/(loss) per share of common stock (basic and diluted):

       From continuing operations                                  $     0.18           $     0.61         $     (0.36 )

       From discontinued operations                                      0.76                 0.19               (0.11 )
                                                               ---------------      ---------------      --------------

       Before cumulative effect of accounting change                     0.94                 0.80               (0.47 )

       Cumulative effect of accounting change                              --                   --               (0.09 )
                                                               ---------------      ---------------      --------------

Net income/(loss)                                                  $     0.94           $     0.80         $     (0.56 )
                                                               ===============      ===============      ==============

Weighted average number of shares
    of common stock outstanding                                    45,248,670           44,620,235          43,589,985
                                                               ===============      ===============      ==============

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

<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
                            EQUITY AND COMPREHENSIVE
                            INCOME/(LOSS) Years Ended
                        December 31, 2003, 2002 and 2001
             (In thousands except for share data and per share data)

<TABLE>
<CAPTION>

 <c>

                                                                          Accumulated    Accumulated
                                    Common stock                         distributions     other                           Compre-
                               -----------------------   Capital in       in excess        compre-                         hensive
                                 Number        Par        excess of         of net         hensive                         income/
                               of shares      value       par value        earnings      income/(loss)       Total         (loss)
                               -----------  ----------  --------------   -------------   -------------    -------------   ----------

Balance at December 31, 2000   43,495,919     $   435    $    789,926    $   (182,865 )    $    242     $    607,738       $

Shares issued                     579,722           6           9,722              --            --            9,728

Stock issuance costs                   --          --          (1,494 )            --            --           (1,494 )

Net loss                               --          --              --         (24,452 )          --          (24,452 )    (24,452 )

Other comprehensive income,
    market revaluation on
    available for sale
    securities                         --          --              --              --           839              839         839

Cumulative effect adjustment
    to recognize  fair value
    of cash flow hedges                --          --              --              --        (5,172 )         (5,172 )     (5,172 )

Reclassification of cash
    flow hedge losses to
    statement of operations            --          --              --              --         8,060            8,060        8,060

Current period adjustment to
    recognize change in fair
    value of cash flow hedges,
    net of tax                         --          --              --              --        (2,599 )         (2,599 )     (2,599 )
                                                                                                                        ----------

Total comprehensive loss               --          --              --              --            --               --    $ (23,324 )
                                                                                                                        ==========

Distributions declared and
    paid ($1.52 per share)             --          --              --         (66,466 )          --          (66,466 )
                               -----------  ----------  --------------   -------------   -----------    -------------

Balance at December 31, 2001   44,075,641   $     441     $   798,154      $ (273,783 )       1,370          526,182    $

Shares issued                   1,173,354          11          20,088              --            --           20,099

Retirement of common stock           (325 )        --              (4 )            --            --               (4 )

Stock issuance costs                   --          --          (1,493 )            --            --           (1,493 )

Net income                             --          --              --          35,590            --           35,590        35,590

Other comprehensive loss,
    market revaluation on
    available for  sale
    securities                         --          --              --              --          (775 )           (775 )        (775 )

Current period adjustment to
    recognize  change in fair
    value of cash flow hedges,
    net of tax                         --          --              --              --       (17,457 )        (17,457 )     (17,457 )
                                                                                                                        -----------

Total comprehensive income             --          --              --              --            --               --    $   17,358
                                                                                                                        ===========

Distributions declared and
    paid ($1.52 per share)             --          --              --         (67,991 )          --          (67,991 )
                               -----------  ----------  --------------   -------------   -----------    -------------

Balance at December 31, 2002   45,248,670   $     452         816,745        (306,184 )     (16,862 )        494,151
                               ===========  ==========  ==============   =============   ===========    =============
</TABLE>

          See accompanying notes to consolidated financial statements.

<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
                            EQUITY AND COMPREHENSIVE
                            INCOME/(LOSS) Years Ended
                        December 31, 2003, 2002 and 2001
             (In thousands except for share data and per share data)

<TABLE>
<CAPTION>

 <c>

                                                                          Accumulated    Accumulated
                                    Common stock                         distributions     other                           Compre-
                               -----------------------   Capital in       in excess        compre-                         hensive
                                 Number        Par        excess of         of net         hensive                         income/
                               of shares      value       par value        earnings      income/(loss)       Total         (loss)
                               -----------  ----------  --------------   -------------   -------------    -------------   ----------

Balance at December 31, 2002   45,248,670   $     452     $   816,745      $ (306,184)      (16,862)       494,151         $

Acquisition of minority
   interest                            --          --          11,375              --            --         11,375

Stock issuance costs                   --          --          (1,493 )            --            --         (1,493 )

Net income                             --          --              --          42,440            --         42,440          42,440

Reclassification of market
    revaluation  on available
    for sale securities to
    statement of operations            --          --              --              --           (78 )          (78 )           (78 )

Reclassification of cash
    flow hedge losses to
    statement of operations            --          --              --              --           502            502             502

Current period adjustment to
    recognize  change in fair
    value of cash flow hedges,
    net of $1,750 in tax benefit       --          --              --              --         1,991          1,991           1,991
                                                                                                                        -----------

Total comprehensive income             --          --              --              --            --             --      $   44,855
                                                                                                                        ===========

Distributions declared and
    paid ($1.52 per share)             --          --              --         (69,002 )          --        (69,002 )
                               -----------  ----------  --------------   -------------   -----------    -----------

Balance at December 31, 2003   45,248,670     $   452    $    826,627    $   (332,746 )  $  (14,447 )   $  479,886
                               ===========  ==========  ==============   =============   ===========    ===========

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

                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)

<TABLE>
<CAPTION>

 <c>
                                                                                    Year Ended December 31,
                                                                           2003                 2002             2001
                                                                       --------------       -------------    -------------
Cash flows from operating activities:

   Net income/(loss)                                                      $   42,440         $   35,590        $   (24,452)
   Adjustments to reconcile net income/(loss) to net cash
      provided by operating activities:
         Depreciation and amortization                                        13,466             14,826            19,646
         Impairments and provisions on assets                                 22,405             19,165            55,595
         (Gain)/loss on sales of assets                                       (3,475 )           (2,947 )           1,137
         Gain on sale of mortgage loans                                           --                 --            (4,120 )
         Income tax benefit                                                   (6,346 )               --                --
         Cumulative effect of accounting change                                   --                 --             3,841
         Net decrease in value of mortgage loans held for sale,
             net of related hedge                                              1,853              5,368             5,070
         Proceeds from sale of loans                                              --                 --           105,975
         Investment in mortgage loans held for sale                             (112 )             (226 )         (94,520 )
         Collection on mortgage loans held for sale                            7,635             16,356            24,604
         Changes in inventories of real estate held for sale                  29,618             45,471           (46,704 )
         Changes in other operating assets and liabilities                       888            (22,016 )           2,662
                                                                       --------------      --------------   --------------
      Net cash provided by operating activities                              108,372             111,587           48,734
                                                                       --------------      --------------   --------------

Cash flows from investing activities:
   Additions to real estate investment properties                                 --              (7,212 )        (26,052 )
   Proceeds from sale of assets                                               25,312              67,085           12,659
   Decrease/(increase) in restricted cash                                     (7,888 )             6,357           (9,055 )
   Investment in joint venture                                                    --                (150 )            (10 )
   Investment in mortgage, equipment and other notes receivable                   --              (6,607 )        (11,458 )
   Collection on mortgage, equipment and other notes receivable               29,075              15,481            9,325
   Proceeds from sale or maturities of securities                                 19                  --              982
                                                                       --------------      --------------   --------------
      Net cash provided by (used in) investing activities                     46,518              74,954          (23,609 )
                                                                       --------------      --------------   --------------
</TABLE>
          See accompanying notes to consolidated financial statements.

<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
                                 (In thousands)

<TABLE>
<CAPTION>

 <c>
                                                                                      Year Ended December 31,
                                                                           2003                 2002                 2001
                                                                      ---------------      ---------------      ---------------
   Cash flows from financing activities:
      Payment of stock issuance costs                                   $     (1,493 )       $    (1,493 )        $    (1,493 )
      Proceeds from borrowings on credit facility, note
         payable and subordinated note payable                                34,104             249,334               63,949
      Payment on credit facility, note payable and
         subordinated note payable                                           (66,751 )           (90,874 )           (159,666 )
      Proceeds from borrowings on mortgage warehouse facilities              124,127             189,901              325,264
      Payments on mortgage warehouse facilities                             (176,372 )          (474,312 )           (358,860 )
      Issuance of bonds                                                       24,906                  --              177,223
      Retirement of bonds payable                                            (19,403 )           (16,436 )            (10,066 )
      Payment of loan costs and bond issuance costs                           (2,231 )               (27 )             (9,634 )
      Proceeds from sale of shares                                                --               9,750                3,692
      Loan from stockholder                                                   18,710              11,750                8,708
      Retirement of shares of common stock                                        --                  (4 )                 --
      Distributions to minority interest                                      (1,867 )            (1,484 )               (234 )
      Distributions to stockholders                                          (68,244 )           (67,991 )            (66,466 )
                                                                      ---------------      --------------       --------------
             Net cash used in financing activities                          (134,514 )          (191,886 )            (27,583 )
                                                                      ---------------      --------------       --------------

Net increase (decrease) in cash and cash equivalents                          20,376              (5,345 )             (2,458 )

Cash and cash equivalents at beginning of year                                16,579              21,924               24,382
                                                                      ---------------      --------------       --------------

Cash and cash equivalents at end of year                                $     36,955          $   16,579          $    21,924
                                                                      ===============      ==============       ==============

Supplemental disclosures of cash flow information:

      Interest paid                                                     $     48,114         $    52,704          $    58,417
                                                                      ===============      ==============       ==============

      Interest capitalized                                                $       95          $      113            $     568
                                                                      ===============      ==============       ==============

      Income taxes paid                                                  $     4,019          $      193            $      34
                                                                      ===============      ==============       ==============

Supplemental disclosures of non-cash investing and financing activities:

      Mortgage notes accepted in exchange for sale of
         properties                                                      $     1,394            $     --             $     --
                                                                      ===============      ==============       ==============

      Financing of computer software acquisition                         $     1,788            $     --             $     --
                                                                      ===============      ==============       ==============

      Distributions declared and unpaid at December 31                    $      758            $     --             $     --
                                                                      ===============      ==============       ==============

      Conversion  of  related  party  advances  into  shares of            $      --         $    10,350             $     --
         common stock                                                 ===============      ==============       ==============

      Redemption  of  minority  interest  in lieu of payment on
         accounts receivable                                              $      317            $     --             $     --
                                                                      ===============      ==============       ==============

      Acquisition of minority interest                                  $     11,375            $     --             $     --
                                                                      ===============      ==============       ==============

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

<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


1. Significant Accounting Policies:

   Organization - CNL Restaurant  Properties,  Inc. ("the Company") formerly CNL
   American  Properties Fund, Inc. was organized in Maryland in May of 1994, and
   is a  self-administered  real  estate  investment  trust  ("REIT").  The term
   "Company"  includes,  unless the context otherwise  requires,  CNL Restaurant
   Properties,  Inc. and its majority owned and controlled  subsidiaries.  These
   subsidiaries  include CNL Restaurant  Investments,  Inc.  ("CNL-Investments")
   formerly CNL Restaurant  Properties,  Inc. and CNL  Restaurant  Capital Corp.
   ("CNL-Capital  Corp.")  formerly CNL Franchise  Network  Corp.  The Company's
   operations are divided into two business segments,  real estate and specialty
   finance. The real estate segment,  operated principally through the Company's
   wholly  owned  subsidiary  CNL-Investments  and its  subsidiaries,  owns  and
   manages a portfolio of primarily long-term  triple-net lease properties.  Its
   activities   include   portfolio   management,    property   management   and
   dispositions.   In  addition,  it  services  approximately  $525  million  in
   affiliate portfolios and earns management fees related thereto. The specialty
   finance  segment,  CNL  Restaurant  Capital,  LP  ("CNL-Capital"),   and  its
   subsidiaries,  is operated  through  the  Company's  wholly-owned  subsidiary
   CNL-Capital  Corp.,  a  partnership  with Bank of America  (the  "Bank")  and
   CNL/CAS Corp., an affiliate of the Company's Chairman.  CNL-Capital  provides
   financing,  servicing,  development  and  advisory  services to national  and
   regional restaurant operators.

   Effective January 1, 2003, CNL-Capital modified certain terms relating to the
   alliance  with the Bank that  resulted  in the Bank  reducing  its  ownership
   interest in  CNL-Capital.  The Bank's  ownership  interest in  CNL-Capital is
   redeemable at their option under certain  conditions  after a specified  date
   for a cash  payment  of $4.3  million.  In  conjunction  with  the  ownership
   reduction,  the  Bank  agreed  to  assume  certain  costs  of  its  portfolio
   operations  and decreased  the referral fees paid by the Bank to  CNL-Capital
   under the referral program between the Bank and CNL-Capital. In addition, CNL
   CAS/Corp.  agreed to reduce its  interest in  CNL-Capital.  As a result,  the
   Company's effective  ownership interest in CNL-Capital  increased from 84.39%
   to  96.26%.   The  Company  reduced  the  minority   interest  and  increased
   stockholders' equity by approximately $11.4 million to reflect this change in
   ownership.

   Principles of  Consolidation - The consolidated  financial  statements of the
   Company include its majority owned and controlled affiliates. All significant
   intercompany  balances and transactions  among  consolidated  affiliates have
   been  eliminated.  The  equity  method  of  accounting  is  applied  to those
   investments  in joint ventures that are not subject to control by the Company
   due to the significance of rights held by other parties.

   Use of Estimates - Preparation of the financial statements in accordance with
   generally  accepted   accounting   principles  requires  management  to  make
   estimates and assumptions relating to the reporting of assets and liabilities
   and  the  disclosure  of  contingent  assets  and  liabilities.   Significant
   estimates  include  provisions  for  impairment  of real  estate  and  loans,
   valuation  of loans held for sale,  deferred  tax assets,  goodwill  and long
   lived assets. Actual results could differ from those estimates.

   Real  Estate  and Lease  Accounting  - The  Company  records  its  properties
   comprised of land,  buildings and equipment at cost.  Management  reviews its
   properties  for  impairment  whenever  events  or  changes  in  circumstances
   indicate that their carrying amount may not be recoverable through operations
   or sale.  Management  determines  whether impairment in value has occurred by
   comparing  the  estimated  future  undiscounted  cash  flows,  including  the
   residual  value of the  property,  with the carrying  cost of the  individual
   property.  If impairment  is indicated,  the assets are adjusted to estimated
   fair value.

   Properties  leased to  restaurant  operators  are  generally  on a triple-net
   basis,  which  means the tenant is  responsible  for all  operating  expenses
   relating to the property,  including property taxes,  insurance,  maintenance
   and repairs.  The leases are accounted for using either the direct  financing
   or the operating method.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


1. Significant Accounting Policies - Continued:

            Direct  financing method - The leases accounted for using the direct
            financing  method are recorded at the net  investment  that,  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 net
            investment in the leases.

            Operating method - Land,  building and secured  equipment leases are
            accounted for using the operating  method.  Revenue is recognized as
            rentals are earned and  depreciation  is charged to  operations on a
            straight-line  basis  over the life of the  related  assets.  Rental
            income is recognized on a  straight-line  basis over the lease term.
            Buildings and equipment are depreciated on the straight-line  method
            over  their   estimated   useful   lives  of  30  and  seven  years,
            respectively.

   Properties acquired that the Company intends to sell or securitize within one
   year of acquisition are recorded at cost. Rental income is recognized without
   regard to potential  future rent increases and the asset is not  depreciated.
   Revenue  from sale of real estate is  recognized  at the time of closing when
   collectibility  of the sales price is  reasonably  assured  and the  earnings
   process is substantially complete.

   Loans - The Company has  originated  loans to restaurant  operators  that are
   generally secured by real estate or equipment. The Company accounts for loans
   depending on the following classification:

            Mortgage  loans held for sale - Loans  originated  that the  Company
            intends  to  sell  or  securitize   generally  within  one  year  of
            origination  are recorded at cost and adjusted for changes in market
            value  under the  Company's  hedging  strategy.  Quoted  prices  for
            similar  loans and the present  value of the expected cash flows net
            of the estimated  impact of any defaults are used to determine  fair
            value.

            Mortgage,  equipment and other notes  receivable - Loans  originated
            that are expected to be held until maturity are recorded at cost and
            are reduced for any estimated future loss.  Whenever it appears that
            future  collection on specific notes appears  doubtful,  a valuation
            allowance is  established.  The allowance  represents the difference
            between the  carrying  amount and the amount  management  expects to
            receive.  Increases and decreases in the allowance due to changes in
            the  measurement of the impaired loans are included in the provision
            for loss on loans.  Loans  continue  to be  classified  as  impaired
            unless  they  are  brought  fully  current  and  the  collection  of
            scheduled interest and principal is considered probable. When a loan
            or portion of a loan,  including an impaired  loan, is determined to
            be  uncollectible,  the  portion  deemed  uncollectible  is  charged
            against  the  allowance  and  subsequent  recoveries,  if  any,  are
            credited to the allowance.  Accrual of interest is discontinued when
            management   believes,   after  considering  economic  and  business
            conditions and  collection  efforts,  that the borrowers'  financial
            condition  is  such  that   collection   of  interest  is  doubtful.
            Subsequent interest is recorded as income.

   Securitizations  - Certain loans are originated and sold to entities that, in
   turn,  issue  securities  to investors  backed by these  assets.  The Company
   retains the servicing rights and participates in cash flows from the retained
   equity  positions  and  lower  rated  securities.  The  present  value of the
   expected  cash flows for each retained  security,  after payment of principal
   and interest to third-party bond or certificate  holders,  over the estimated
   cost of  servicing  is recorded  at the time of sale as a retained  interest.
   Retained  interests in securitized  assets are included in other investments.
   Accounting for the retained  interests requires the Company to estimate their
   value using market trends and historical experience, expected prepayments and
   defaults.  This  information is considered,  along with  prevailing  discount
   rates and the terms of the bonds and certificates,  to arrive at current fair
   value  amounts  and  determine  whether a permanent  impairment  in value has
   occurred.



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


1. Significant Accounting Policies - Continued:

   Restricted Cash - Restricted cash relates to cash received in connection with
   assets held as  collateral  for certain  debt and is subject to  restrictions
   until released by the trustee.

   Cash  and  Cash  Equivalents  -  The  Company  considers  all  highly  liquid
   investments with a maturity of three months or less when purchased to be cash
   equivalents.  These amounts may exceed federally insured levels, however, the
   Company has not experienced any losses in such accounts.

   Derivative   Financial   Instruments  -  The  Company   utilizes   derivative
   instruments to partially  offset the effect of fluctuating  interest rates on
   the value of its mortgage  loans held for sale and the cash flows  associated
   with a portion of its  variable-rate  debt. The Company adopted  Statement of
   Financial Accounting Standards No. 133 ("FAS 133"), as amended, on January 1,
   2001, which requires all derivative instruments to be recorded on the balance
   sheet at fair  value.  Changes in the value of  derivatives  associated  with
   hedge  transactions  are  recorded  either in  current  earnings  or in other
   comprehensive income depending on the type.

            Fair-value  hedge  transactions - When the Company hedges changes in
            the fair value of an asset or liability,  the  effective  changes in
            the value of the derivative  instrument are generally  offset in the
            income statement by changes in the value of the hedged item.

            Cash-flow hedge  transactions - When the Company hedges  variability
            of cash flows  related to a  variable-rate  asset or  liability or a
            forecasted  transaction,  effective  changes  in  the  value  of the
            derivative instrument are reported in other comprehensive income and
            subsequently  recognized  in  operations  in the  periods  in  which
            earnings  are impacted by the  variability  of the cash flows of the
            hedged item or forecasted transaction.

   The ineffective portion of all hedges are reflected in earnings.

   Effective   January  1,  2001,  the  Company  recorded  a  cumulative  effect
   adjustment  loss of $21.2  million to recognize  the value of all  derivative
   instruments  that were  designated as fair-value  hedging  instruments and an
   offsetting  cumulative  effect  adjustment  of $17.4 million to recognize the
   excess of the fair values of related  hedged assets over the carrying  value.
   In addition, effective January 1, 2001 a cumulative effect adjustment through
   stockholders'  equity of $5.2 million was recorded to recognize at fair value
   all  derivative   instruments  that  were  designated  as  cash-flow  hedging
   instruments.

   During  2003,  the  Company  recorded  a $0.5  million  charge to  results of
   operations  upon  unwinding a portion of a cash flow hedge as a result of the
   collection of a note  receivable  and  repayment of the related debt.  During
   2001, the Company  determined that a forecasted debt issuance would not occur
   and also terminated a cash flow hedge upon repayment of the related debt. The
   termination of the hedges and the hedge accounting for the related derivative
   instruments   resulted  in  an  $8.1  million  charge  to  the  statement  of
   operations.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


1. Significant Accounting Policies - Continued:

   Loan  Costs  -  Loan  costs  incurred  in  connection  with  debt  have  been
   capitalized  and are being  amortized over the term of the related debt using
   the effective interest method. Loan costs are included in other assets in the
   financial  statements.  As of  December  31,  2003 and 2002,  the Company had
   capitalized  loan costs of $25.6 million and $26.0 million,  respectively and
   recorded   accumulated   amortization  of  $6.9  million  and  $8.3  million,
   respectively.

   Equity  Compensation  Plan  -  During  1999,  the  stockholders   approved  a
   performance  incentive  plan  (the  "Plan"),  which  became  effective  as of
   February 23, 1999. The Plan authorized the issuance of up to 4,500,000 shares
   of the  Company's  common  stock upon the  exercise  of stock  options  (both
   incentive  and  nonqualified),  stock  appreciation  rights  and the award of
   restricted stock ("Stock Award") provided that the aggregate number of shares
   of Common Stock that may be issued  pursuant to Options,  stock  appreciation
   rights  ("SARs"),  and Stock  Awards  granted  under the Plan would  increase
   automatically to 9,000,000 shares and 12,000,000 shares,  respectively,  when
   the Company had issued and  outstanding  150,000,000  shares and  200,000,000
   shares,  respectively,  of common stock.  The Plan terminates on February 23,
   2009. Key employees, officers, directors and persons performing consulting or
   advisory services for the Company or its affiliates,  as defined in the Plan,
   who are designated by the committee  administering  the Plan, are eligible to
   receive  awards  under  the  Plan.  Awards  may be made in the  form of stock
   options,  stock awards,  SARs,  Phantom Stock Awards,  Performance Awards and
   Leveraged  Stock  Purchase  Awards as  defined  further  in the  Plan.  As of
   December 31, 2003, the Company had not made any awards related to the Plan.

   Income  Taxes - The  Company  has made an  election to be taxed as a REIT for
   federal  income tax purposes.  The Company  generally  will not be subject to
   federal  corporate  income  taxes on  amounts  distributed  to  stockholders,
   providing it  distributes at least 90 percent of its taxable income and meets
   certain other  requirements  for qualifying as a REIT.  Earnings and profits,
   which  determine  the  taxability of dividends to  stockholders,  differ from
   reported net income as a result of differing treatment of items for financial
   reporting  versus tax purposes,  such as different  lives and methods used to
   depreciate investment properties. Notwithstanding qualification as a REIT for
   tax purposes, the Company is subject to certain state taxes on its income and
   property.

   Effective  January 1, 2001,  the  Company's  subsidiary,  CNL-Capital  Corp.,
   elected to be treated as a taxable REIT  subsidiary  ("TRS")  pursuant to the
   provisions  of  the  REIT   Modernization   Act.  As  a  TRS,  its  operating
   Partnership, CNL-Capital, is able to engage in activities resulting in income
   that previously would have been  disqualified from being eligible REIT income
   under the federal income tax regulations.  Certain  activities  reside within
   CNL-Capital Corp. that are therefore  subject to federal income taxes.  Also,
   effective  January 1, 2001, a subsidiary  of  CNL-Investments,  elected to be
   treated as a TRS. Operations commenced during 2002 and are subject to federal
   income taxes.

   Earnings Per Share - Basic earnings per share are  calculated  based upon net
   earnings (income  available to common  stockholders)  divided by the weighted
   average  number of shares of common stock  outstanding  during the  reporting
   period.   The  Company's   subsidiary,   CNL-Capital,   has  entered  into  a
   subordinated  note payable  with a conversion  feature that allows one of the
   partners to convert the note into additional ownership of the subsidiary. For
   the  years  ended  December  31,  2003,  2002  and 2001  the  impact  of this
   conversion feature was not dilutive.



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


1. Significant Accounting Policies - Continued:

   Consolidated  Statement of Cash Flows - Supplemental  Disclosure - During the
   years  ended   December  31,  2003  and  2001,   the  Company   re-designated
   approximately $23.7 and $60.9 million, respectively, from mortgage loans held
   for sale to held for  investment.  The loans  serve as  collateral  for bonds
   issued by the Company. In June 2002, the Company  redesignated  approximately
   $225 million from mortgage  loans held for sale to held for  investment.  The
   loans serve as collateral for a five year borrowing facility.

   During  2003 and 2002,  the  Company  foreclosed  on loans held for sale from
   borrowers and accepted the  underlying  real estate  collateral as settlement
   for the mortgage  loans.  The collateral  received during 2003 and 2002 had a
   net realizable value of $4.6 and $3.7 million, respectively.

   During the years  ended  December  31, 2002 and 2001,  the Company  converted
   $10.3 million and $6.0 million,  respectively,  of outstanding  loans payable
   plus accrued interest payable under the loans into 604,177 shares and 359,722
   shares, respectively, of Company stock (see Note 12).

   During the year ended December 31, 2002, a tenant and borrower of the Company
   assigned  loans in the amount of $7.5  million to an  affiliate.  The Company
   agreed to the assignment in exchange for an interest in a participating  loan
   from the affiliate (see Note 12).

   From time to time,  properties  classified  as long-term  investments  may be
   subsequently  re-designated  to held for  sale  classification.  The  Company
   identified 30 and 83 such properties with a net book value of $26.2 and $80.6
   million during 2003 and 2002, respectively, as held for sale.

   New   Accounting   Standards  -  In  January   2003,   the  FASB  issued  FAS
   Interpretation  No.  46  ("FIN  46"),  "Consolidation  of  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.   The   consolidation
   requirements  of FIN 46  apply  immediately  to  variable  interest  entities
   created after January 31, 2003, and to older entities no later than the first
   fiscal year or interim  period  ending after  December  15, 2003.  Management
   adopted this standard in 2003 which resulted in the  consolidation  of two of
   the  Company's  previously  unconsolidated  subsidiaries.  Adoption  of  this
   standard did not change the Company's accounting for the Company's bankruptcy
   remote  securitization  entities.  The  Company  restated  all prior  periods
   presented to conform with the 2003  presentation.  The  consolidation did not
   significantly   impact  the  Company's   financial  position  or  results  of
   operations.

   In  December  2003,  the FASB  issued  FIN 46R,  "Consolidation  of  Variable
   Interest  Entities".  This  Interpretation  requires existing  unconsolidated
   variable interest entities to be consolidated by their primary beneficiaries.
   The  primary  beneficiary  of a  variable  interest  entity is the party that
   absorbs a majority of the entity's  expected  losses,  receives a majority of
   its  expected  residual  returns,  or both,  as a result of holding  variable
   interests, which are the ownership, contractual, or other pecuniary interests
   in an entity that change with  changes in the fair value of the  entity's net
   assets excluding  variable  interests.  Prior to FIN 46R, a company generally
   included another entity in its consolidated  financial  statements only if it
   controlled  the entity through  voting  interests.  Application of FIN 46R is
   required in financial  statements of public  entities that have  interests in
   variable  interest  entities for periods  ending  after March 15,  2004.  The
   Company does not expect that the application of this Interpretation will have
   a significant effect on its financial position or results of operations.



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


1. Significant Accounting Policies - Continued:

   In May 2003,  the Financial  Accounting  Standards  Board (the "FASB") issued
   Statement of Financial  Accounting Standards No. 150, "Accounting for Certain
   Financial  Instruments with  Characteristics  of both Liabilities and Equity"
   ("FAS 150"). FAS 150 establishes  standards for how an issuer  classifies and
   measures  certain  financial   instruments  with   characteristics   of  both
   liabilities  and equity.  FAS 150 will  require  issuers to classify  certain
   financial  instruments as liabilities (or assets in some  circumstances) that
   previously  were  classified  as equity.  Some of the  examples of  financial
   instruments   covered  by  FAS  150  include  shares  that  are   mandatorily
   redeemable,  and other  financial  instruments  that embody an  obligation to
   repurchase  outstanding  shares or a  conditional  obligation  that  requires
   settlement by issuing a variable number of the entity's shares.  FAS 150 also
   requires that minority  interests for majority owned finite lived entities be
   classified  as a  liability  and  recorded  at  fair  market  value.  FAS 150
   initially applied  immediately to all financial  instruments  entered into or
   modified  after May 31, 2003, and otherwise was effective at the beginning of
   the first interim period beginning after June 15, 2003. Effective October 29,
   2003, the FASB deferred  implementation of FAS 150, as it applies to minority
   interests of finite lived  Partnerships.  The deferral of these provisions is
   expected to remain in effect while these  interests  are  addressed in either
   Phase II of the  FASB's  Liabilities  and  Equity  project or Phase II of the
   FASB's Business Combinations Project;  therefore,  no specific timing for the
   implementation of these provisions has been stated. The implementation of the
   currently  effective aspects of FAS 150 did not have a material impact on the
   Company's results of operations.

   Reclassification  - Certain  items in the prior years'  financial  statements
   have  been   reclassified  to  conform  to  the  2003   presentation.   These
   reclassifications had no effect on stockholders' equity or net income.

2. Real Estate Investment Properties:

   Real estate investment properties consist of the following at December 31:
<TABLE>
<CAPTION>

 <c>
                                                                           (In thousands)
                                                                    2003                     2002
                                                              ------------------       -----------------

                Land                                               $    281,400             $   282,222
                Buildings                                               311,197                 308,586
                Equipment                                                 1,673                   2,031
                                                              ------------------       -----------------
                                                                        594,270                 592,839
                Less accumulated depreciation                           (52,468 )               (41,898 )
                                                              ------------------       -----------------
                                                                        541,802                 550,941
                Construction in progress                                  1,170                   2,789
                                                              ------------------       -----------------

                                                                   $    542,972            $    553,730
                                                              ==================       =================
</TABLE>

   During 2002 and 2001, the Company sold several  properties and equipment that
   were  subject to  operating  leases and received net proceeds of $0.9 million
   and $11.2 million,  respectively, and recorded net losses of $0.3 million and
   $1.1 million, respectively.

   In 2003,  2002,  and 2001 the Company  recorded  provisions for impairment of
   $4.6 million,  $3.6 million and $10.9 million,  respectively.  The tenants of
   these properties  experienced financial difficulties and/or ceased payment of
   rents under the terms of their lease agreements. The provisions represent the
   amount  necessary to reduce the carrying value to the estimated fair value of
   the properties.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  Years Ended December 31, 2003, 2002 and 2001


2. Real Estate Investment Properties - Continued:

   For the years ended  December  31, 2003,  2002,  and 2001 tenants paid or are
   expected  to pay  directly to real estate  taxing  authorities  approximately
   $10.3 million, $9.4 million and $10.8 million,  respectively,  in real estate
   taxes in accordance with the terms of their triple-net leases.

   Substantially  all property leases have initial terms of 10 to 25 years (most
   expiring between 2004 and 2024) and provide for scheduled rent increases, and
   in some cases,  contingent  rent.  The leases  generally  allow the tenant to
   purchase the property at the greater of the Company's  purchase  price plus a
   specified  percentage  or fair market  value at  specified  times.  Fixed and
   determinable lease revenues are recognized on a straight-line  basis over the
   terms of the leases.  For the years ended  December 31, 2003,  2002 and 2001,
   the  Company  recognized  $6.2  million,   $5.7  million  and  $6.7  million,
   respectively, of such accrued rental income.

   Future minimum contractual lease payments to be received under noncancellable
   operating leases at December 31, 2003 are as follows:

                                                  (In thousands)
                                                --------------------

                        2004                           $     54,267
                        2005                                 55,179
                        2006                                 55,187
                        2007                                 55,760
                        2008                                 56,878
                        Thereafter                          461,535
                                                --------------------

                                                      $     738,806
                                                ====================

3. Net Investment in Direct Financing Leases:

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

 <c>
                                                                     (In thousands)
                                                              2003               2002
                                                           ------------      -------------

            Minimum lease payments
                receivable                                   $ 194,191          $ 217,448
            Estimated residual values                           25,779             26,674
            Interest receivable from
                secured equipment leases                             6                 15
            Less unearned income                              (116,314 )         (133,211 )
                                                           ------------      -------------

            Net investment in direct financing
                leases                                       $ 103,662          $ 110,926
                                                           ============      =============
</TABLE>



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


3. Net Investment in Direct Financing Leases - Continued:

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

                                                      (In thousands)
                                                     ----------------

                        2004                             $    12,631
                        2005                                  12,551
                        2006                                  12,548
                        2007                                  12,603
                        2008                                  12,660
                        Thereafter                           131,198
                                                     ----------------

                                                         $   194,191
                                                     ================

   The Company's  real estate segment  recorded  provisions for losses on direct
   financing leases totaling $0.1 million,  $0.9 million and $2.2 million during
   the years ended December 31, 2003, 2002 and 2001,  respectively.  The tenants
   of these properties  experienced financial difficulties and ceased payment of
   rents under the terms of their lease agreements. The provisions represent the
   amount necessary to reduce the carrying values of the direct financing leases
   to their estimated fair value.

4. Real Estate and Restaurant Assets Held for Sale:

   Real estate and  restaurant  assets held for sale consist of the following at
   December 31:

                                                  (In thousands)
                                             2003                2002
                                         --------------     ---------------

                Land and buildings          $  129,597          $  184,322
                Restaurant assets                1,613               1,396
                                         --------------     ---------------

                                            $  131,210          $  185,718
                                         ==============     ===============

   The Company's specialty finance subsidiary CNL-Capital actively acquires real
   estate  assets  subject to leases  with the intent to sell.  Assets  acquired
   after December 31, 2001 are subject to FAS 144, and the operating results and
   gains or losses are recorded as discontinued operations.

   The Company's real estate investment subsidiary, CNL-Investments, will divest
   properties  from  time  to  time  when  it  is  strategic  to  the  Company's
   longer-term  goals.  When  CNL-Investments  establishes  its intent to sell a
   property,  all operating  results relating to the properties and the ultimate
   gain or loss on disposition  of the  properties  are treated as  discontinued
   operations for all periods  presented.  These  financial  statements  reflect
   reclassifications  of  rental  related  income,  interest  expense  and other
   categories so as to conform with the  requirements  of FAS 144.  During 2002,
   the Company  purchased  the  operations of certain  restaurants.  In December
   2003,  the Company  decided to dispose of these  restaurant  operations.  All
   operating  results  relating to these  restaurant  operations are recorded as
   discontinued operations.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


4. Real Estate and Restaurant Assets Held for Sale - Continued:

   The operating results of the discontinued  operations were as follows for the
   years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                  (In thousands)
                                                      2003              2002           2001
                                                   ------------      -----------    ------------

             Rental income                           $  11,758         $ 12,081       $  12,518

             Food and beverage income                   13,728            2,428              --

             Interest expense                           (2,267 )         (2,348 )          (389 )

             Other property related expense             (1,620 )         (3,182 )        (1,931 )

             Impairment provisions                      (8,155 )         (9,539 )       (14,106 )

             Food and beverage expenses                (13,856 )         (2,836 )          (964 )
                                                   ------------      -----------    ------------


             Loss from discontinued
                operations, net                           (412 )         (3,396 )        (4,872 )
                                                   ------------      -----------    ------------

             Sales of real estate                      226,250          148,875              --

             Cost of real estate sold                 (197,920 )       (137,296 )            --
                                                   ------------      -----------    ------------

             Gain on disposal of discontinued
                operations                              28,330           11,579              --
                                                   ------------      -----------    ------------

             Income tax benefit                          6,346               --              --
                                                   ------------      -----------    ------------

             Earnings/(loss)from discontinued
                operations, net                      $  34,264          $ 8,183       $  (4,872 )
                                                   ============      ===========    ============
</TABLE>

5. Mortgage Loans Held for Sale:

   Mortgage loans held for sale are wholly or partially  collateralized by first
   mortgages on land and/or  buildings of franchised  restaurant  businesses and
   consist of  approximately  $4.5 million in  fixed-rate  loans at December 31,
   2003.  The loans  carry a weighted  average  interest  rate of 8.33  percent.
   Mortgage  loans are due in monthly  installments  with maturity dates ranging
   from 2004 to 2022 and generally  prohibit  prepayment for certain  periods or
   include prepayment penalties.

   Mortgage loans held for sale consist of the following at December 31:

                                                    (In thousands)
                                                 2003             2002
                                             -------------    -------------

            Outstanding principal               $   4,531        $  45,462
            Accrued interest income                    45              890
            Deferred financing income                 (22 )            (90 )
            Valuation adjustment                   (3,064 )         (8,855 )
                                             -------------    -------------
                                                $   1,490        $  37,407
                                             =============    =============

   The  valuation  adjustment at December 31, 2003 and 2002 include a decline in
   value associated with borrower delinquencies.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


6. Mortgage, Equipment and Other Notes Receivable:

   Mortgage,  equipment and other notes  receivable  consist of the following at
   December 31:

                                                        (In thousands)
                                                    2003              2002
                                                --------------    -------------

          Outstanding principal                     $ 332,924        $ 343,832
          Accrued interest income                       3,377            3,696
          Deferred financing income                    (1,530 )         (1,926 )
          Unamortized deferred costs                       93              959
          Allowance for uncollectible notes           (13,964 )        (12,062 )
                                                --------------    -------------
                                                    $ 320,900        $ 334,499
                                                ==============    =============

   Approximately  $308  million and $318  million of the  outstanding  principal
   balance  as of  December  31,  2003 and 2002,  respectively,  is  secured  by
   mortgages.  The  remaining  principal  is  secured by  franchised  restaurant
   equipment  and  other   collateral.   As  of  December  31,  2003  and  2002,
   approximately  $8 million and $14 million in notes  receivable are considered
   impaired and  approximately $3 million and $5 million are non-accrual  status
   with regard to recognition of interest.  The Company  recognized $0.4 million
   and $0.75  million  of  interest  income as of  December  31,  2003 and 2002,
   respectively, on impaired loans.

   Changes in the allowance for loan losses for 2003 and 2002 are  summarized as
   follows:
<TABLE>
<CAPTION>

 <c>
                                                                    (In thousands)
                                                                 2003             2002
                                                             --------------    ------------

            Balance at beginning of year                         $  12,062        $ 32,752
            Provision for loan losses                                5,463           3,099
            Recoveries on loans previously charged off                (944 )            --
            Interest income reserves                                   964             600
            Loans charged off                                       (3,581 )       (24,389 )
                                                             --------------    ------------
            Balance at end of year                               $  13,964        $ 12,062
                                                             ==============    ============
</TABLE>

   Management  believes the net carrying  value of the notes  approximates  fair
   value  based  on  current  rates  at  which  similar  loans  would be made to
   borrowers with similar credit and for similar maturities.

7. Other Investments:

   The Company  holds the  following  franchise  loan  investments  arising from
   securitization  transactions which were either purchased from affiliates (the
   1998 Series) or retained in  connection  with a  transaction  executed by the
   Company  (the  1999  Series).  The  carrying  amounts  of these  investments,
   including accrued interest, consist of the following at December 31:


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


7. Other Investments - Continued:
<TABLE>
<CAPTION>

 <c>
                                                              (In Thousands)
                                                          2003             2002
                                                      -------------    --------------

        1998-1 Fixed Rate Certificates                    $  9,605         $   9,605
        1998-1 Floating Rate Certificates                    6,582             6,582
        1998-1 Interest Only Certificate                       249               346
        1998-1 Residual Interest                             1,980             4,358
        1999-1 Fixed Rate Certificates                      11,255            11,272
                                                      -------------    --------------
                                                         $  29,671         $  32,163
                                                      =============    ==============
</TABLE>


   The 1998-1 and 1999-1 Fixed Rate  Certificates  bear interest at pass through
   rates of 8.40 percent and 8.5 percent,  respectively. As of December 31, 2003
   and 2002 the pass through rates on the 1998 Floating Rate  Certificates  were
   3.37 percent and 3.67 percent, respectively.

   The key assumptions used in calculating the value of these investments at the
   time of securitization are based on normal market assumptions as follows:

   o  five percent  prepayment  penalty computed after taking into consideration
      the period of time  covered by yield  maintenance  and lockout  prepayment
      penalties;
   o  a cumulative default ratio (CDR) of zero; and
   o  prevailing market discount rates at the time of securitization

   Subsequently,  the values of the held to  maturity  retained  securities  are
   measured using updated  prepayment and CDR  assumptions  with  adjustments to
   prevailing  market  discount  rates based on  consultations  with  investment
   bankers.  If the resulting change in fair value is considered to be permanent
   in nature, the carrying value of the investment is adjusted through earnings.
   Securities  designated  as held for sale are  recorded at fair market  value,
   with adjustments recorded through earnings.

   During the years ended December 31, 2003, 2002 and 2001, the Company recorded
   either  reserves or write-offs  amounting to $1.6  million,  $2.0 million and
   $0.1  million,  respectively,  relating  to its 1999-1  and  1998-1  residual
   interests. The Company recorded these amounts based on its determination that
   a permanent  impairment in value had occurred as a result of certain borrower
   delinquencies.





<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


7. Other Investments - Continued:

   The  following  table  shows the  effects  on an  individual  key  assumption
   affecting  the  original  fair value of the retained  certificates  under two
   negative  scenarios  by  altering  the  original  assumptions  at the time of
   securitization.  Reasonable  prepayment  assumptions would not have a further
   material impact on these scenarios.
<TABLE>
<CAPTION>

 <c>
                                                                            1998-1                  1999-1
                                                                         Certificates            Certificates
                                                                       ($ in millions)         ($ in millions)
                                                                       -----------------       -----------------

           Fair value of retained certificates                              $ 18.4                   $ 11.3

           Residual cash flows discount rate (annual):

           Impact on fair value of 100 bp adverse change                    $(0.54)                  $(0.61)
           Impact on fair value of 200 bp adverse change                    $(1.05)                  $(1.20)

           Expected Credit Losses (annual rate):

           Impact on fair value of 2 percent adverse change                 $ 0.12                   $ 0.45
           Impact on fair value of 3 percent adverse change                 $ 0.10                   $(0.92)
</TABLE>

   These sensitivities are hypothetical and should be used with caution. Changes
   in fair value based on a percentage variation in assumptions generally cannot
   be extrapolated  because the  relationship of the change in assumption to the
   change in fair value may not be linear.  Also, the effect of a variation in a
   particular   assumption   on  the  original   fair  values  of  the  retained
   certificates is calculated without changing any other assumption; in reality,
   changes  in one  factor  may  result in  changes  in  another  (for  example,
   increases  in market  interest  rates may  result  in lower  prepayments  and
   increased   credit   losses),   which  might   magnify  or   counteract   the
   sensitivities.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


7. Other Investments - Continued:

   The following  table  represents  the  securitized  portfolio and all managed
   loans as of December 31:
<TABLE>
<CAPTION>

 <c>
                                                                                        Principal Amount > 60
                                                                                                Days
                                                          Total Principal Amount              Past Due
                                                              (In thousands)               (In thousands)
                                                        ---------------------------   --------------------------
                                                            2003          2002           2003          2002
                                                        ------------   ------------   ------------  ------------

           Mortgage loans                                  $ 735,517      $ 809,756      $ 16,011      $ 35,226
           Equipment and other loans                          23,783         29,082           199         1,713
                                                        ------------   ------------   ------------  ------------

           Total loans managed or securitized                759,300        838,838        16,210        36,939

           Less:
                Loans securitized                           (421,845)      (449,544)       (3,599 )     (11,557 )
                Loans held for sale or securitization         (4,531)       (45,462)       (1,969 )     (10,271 )
                                                        ------------   ------------   ------------  ------------

           Loans held in portfolio (Note 6)                $ 332,924      $ 343,832      $ 10,642      $ 15,111
                                                        ============   ============   ============  ============
</TABLE>

   The Company had net  charge-offs  during the years ended  December  31, 2003,
   2002 and 2001 of $11.3 million, $24.9 million and $3.4 million, respectively.

   The  following  table  summarizes  cash  flows  received  from  and  paid  to
   securitization trusts for the years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                                  (In thousands)
                                                                        2003           2002         2001
                                                                     ------------   -----------  ------------

                Servicing fees received                                 $ 1,597       $ 1,625      $  1,730
                Other cash flows received on retained interests         $ 4,332       $ 5,272      $  6,978
                Servicing advances paid                                 $(4,128 )     $(6,253 )    $ (5,746 )
                Collection of servicing advances                        $ 3,603       $ 5,115      $  3,796
</TABLE>

8. Goodwill:

   In July 2001, the FASB issued Statement of Financial Accounting Standards No.
   142, "Goodwill and Other Intangible Assets" ("FAS 142"). FAS 142 requires the
   use of a  nonamortization  approach to account  for  purchased  goodwill  and
   certain intangibles.  Under a nonamortization approach,  goodwill and certain
   intangibles will not be amortized into results of operations, but instead are
   reviewed for impairment and written down and charged to results of operations
   only in the periods in which the recorded  value is more than its fair value.
   The Company  adopted the provisions of this statement on January 1, 2002. The
   Company's  goodwill relates to its specialty finance segment.  As a result of
   the adoption of this standard,  the Company  stopped  amortizing the goodwill
   commencing January 1, 2002.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


8. Goodwill - Continued:

   Goodwill  represents  the excess of the purchase price and related costs over
   the fair  value  assigned  to the net  assets  and  liabilities  of  acquired
   operations.  On  September  1, 1999,  the  Company  acquired  CNL  Restaurant
   Advisors,  Inc.,  formerly  CNL Fund  Advisors,  Inc.  (the  "Advisor"),  CNL
   Financial  Corporation  and CNL Financial  Services,  Inc.  ("CNL  Restaurant
   Financial  Services  Group") by issuing  6.15  million  shares.  Prior to the
   acquisition, the Advisor and CNL Restaurant Financial Services Group had been
   affiliated with the Company.  The  acquisitions  were accounted for under the
   purchase method of accounting.  The Company expensed the $76.3 million excess
   of the purchase  price of the Advisor over the fair value of the net acquired
   assets.  The Company  recognized $45.7 million as goodwill,  representing the
   excess  purchase price of CNL Restaurant  Financial  Services  Group. In June
   2000, the Company  recorded  goodwill  related to the Bank's alliance and CNL
   Financial Group,  Inc.'s  ("CFG's")  advisory  services  operations that were
   acquired as part of the formation of CNL-Capital.  The Company  evaluated its
   goodwill  balance of $56.3  million  and did not record  any  impairments  to
   goodwill  during the years ended  December 31, 2003 or 2002.  An  independent
   business   valuation  company  determined  the  fair  market  value  using  a
   discounted  cash  flow  valuation  approach  and a capital  market  valuation
   approach.  The discounted  cash flow approach values the Company based on the
   present value of future forecasted cash flows that an investor in the Company
   would anticipate receiving through continued  operations.  The capital market
   approach  values the company  using an analysis  of the  multiples  of market
   values of comparable publicly traded companies.

   The following table  summarizes the effect of adopting FAS 142 during 2002 on
   reported  earnings before  cumulative  effect of accounting change and on net
   earnings:
<TABLE>
<CAPTION>

 <c>
                                                                                (In thousands)
                                                                      2003            2002           2001
                                                                   -----------     -----------    ------------

              Reported earnings/(loss) before cumulative
                  effect of accounting change                         $42,440         $35,590        $ (20,611)
              Add back: Goodwill amortization                              --              --            3,142
                                                                   -----------     -----------    ------------

              Adjusted earnings/(loss) before cumulative
                  effect of accounting change                         $42,440         $35,590        $ (17,469)
                                                                   ===========     ===========    ============


              Reported net income/(loss)                              $42,440         $35,590        $ (24,452)
              Add back: Goodwill amortization                              --              --            3,142
                                                                   -----------     -----------    ------------

              Adjusted net income/(loss)                              $42,440         $35,590        $ (21,310)
                                                                   ===========     ===========    ============
</TABLE>



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


8. Goodwill - Continued:

   The following table  summarizes the effect of adopting FAS 142 during 2002 on
   earnings/(loss) per share of common stock (basic and diluted):
<TABLE>
<CAPTION>

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

             Reported earnings/(loss) before cumulative
                 effect of accounting change                           $   0.94        $ 0.80        $   (0.47)
             Add back: Goodwill amortization                                 --            --             0.07
                                                                -----------------    ----------    ------------

             Adjusted earnings/(loss) before cumulative
                 effect of accounting change                           $   0.94        $ 0.80        $   (0.40)
                                                                =================    ==========    ============

             Reported net income/(loss)                                $   0.94        $ 0.80        $   (0.56)
             Add back: Goodwill amortization                                 --            --             0.07
                                                                -----------------    ----------    ------------

             Adjusted net income/(loss)                                $   0.94       $  0.80        $   (0.49)
                                                                =================    ==========    ============
</TABLE>

9. Borrowings:

   Borrowings consist of the following at December 31:
<TABLE>
<CAPTION>

 <c>
                                                                  2003                          2002
                                                     ------------------------------- ----------------------------
                                                          Amount        Average          Amount       Average
                                                      (In thousands)      Rate       (In thousands)     Rate
                                                     ------------------------------- ----------------------------


               Revolver                                    $    2,000    3.62%          $   14,000      3.92%
               Note payable                                   182,560    6.13%             203,207      5.99%
               Mortgage warehouse facilities                   93,513    3.41%             145,758      4.07%
               Subordinated note payable                       43,750    8.50%              43,750      8.50%
               Series 2000-A bonds payable                    252,477    7.94%             261,369      7.94%
               Series 2001-4 bonds payable                     33,938    8.90%              38,441      8.90%
               Series 2001 bonds payable                      118,690    1.70%             124,698      2.28%
               Series 2003 bonds payable                       24,906    5.67%                  --        --
                                                     -----------------               --------------

                                                          $   751,834                   $  831,223
                                                     =================               ==============
</TABLE>




<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


9. Borrowings - Continued:

   Borrowing resources at December 31, 2003 include:
<TABLE>
<CAPTION>

 <c>


                                                                  (In thousands)
                                                       ---------------     -------------       Expected
                                                          Balance                              Maturity/
                                                        Outstanding          Capacity       Retirement Date1
                                                       ---------------     -------------    ----------------

                Revolver                                    $   2,000         $  30,000      October 2004
                Note payable                                  182,560           186,955           (1)
                Mortgage warehouse facilities                  93,513           260,000         Annual
                Subordinated note payable                      43,750            43,750        June 2007
                Series 2000-A bonds payable                   252,477           252,477        2009-2017
                Series 2001-4 bonds payable                    33,938            33,938        2009-2013
                Series 2001 bonds payable                     118,690           118,690      October 2006
                Series 2003 bonds payable                      24,906            24,906        2005-2010
                                                       ---------------     -------------

                                                            $ 751,834         $ 950,716
                                                       ===============     =============
</TABLE>


   (1) $0.6  million  matures  in 2005 and $182  million  matures  in 2007.  The
       Company  elected  to not  renew  the  remaining  $4.4  million  available
       capacity that expired in January 2004.

   The  Revolver  bears  interest  at a rate of LIBOR plus 225 basis  points per
   annum,  which  includes  an unused  fee of 25 basis  points  per  annum,  and
   includes  financial  covenants  that provide for the  maintenance  of certain
   financial  ratios.  The Company was in  compliance  with all  covenants as of
   December 31, 2003.

   The Company  entered into a note payable (the "Note  Payable") in 1999 in the
   amount of $147.0 million.  During 2001, the Company applied proceeds received
   from the  issuance of bonds to pay down the note.  Borrowings  under the note
   bore initial  interest at the rate of the lender's  commercial  paper plus 56
   basis points per annum. During 2002, the Company used net sales proceeds from
   the sales of properties and paid off the entire outstanding principal balance
   relating to the Note Payable.  In June 2002, the Company  entered into a loan
   and security agreement with Nieuw Amsterdam  Receivables  Corporation with an
   initial borrowing amount of approximately $207 million that bears interest at
   a rate of weighted average  commercial paper plus 1.25 percent per annum (the
   "Note  Payable").  Collateral  for the Note Payable  consists of 172 mortgage
   loans that had a carrying  value of $209.8  million at December 31, 2003. The
   Company  used the  proceeds  from the new  facility  to  refinance  a pool of
   franchise loans formerly held on its other mortgage warehouse facilities. The
   loan has an initial term of five years with a renewal  provision based on the
   Company's request and the lender's consent.

   In January 2003, the Company entered into a Master Credit Facility  Agreement
   ("the Note  Payable")  with CNL Bank,  an  affiliate.  The Note Payable had a
   total  borrowing  capacity of $5 million and was  established to finance real
   estate  properties.  At December  31,  2003,  the  Company  had $0.6  million
   outstanding  collateralized  by mortgages  which bears interest at LIBOR plus
   325 basis points per annum and require  monthly  interest only payments until
   maturity in 2005. The Company elected not to renew the remaining $4.4 million
   available capacity that expired in January 2004.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


9. Borrowings - Continued:

   CNL-Capital  maintains  mortgage  warehouse  facilities  which  have a  total
   borrowing  capacity of $260.0  million at December 31, 2003 and bear interest
   at a weighted average rate of 3.41 percent.

   The $160 million warehouse credit facility has been extended until March 2005
   and the $100  million  mortgage  warehouse  facility  matures  in June  2004.
   Management  believes  the  lender  will  grant a  one-year  extension  to the
   Company.

   The Company is  obligated  under the  provisions  of its  mortgage  warehouse
   facilities  and its Note  Payable to pay down certain  debt  associated  with
   borrower  delinquencies  or  defaults  within a  required  time  frame.  Most
   properties  acquired on the mortgage warehouse  facilities are required to be
   sold within a certain time frame.  Any  delinquency,  default or delay in the
   resale of properties financed through one of these facilities would generally
   result in an immediate pay-down of the related debt.

   In June 2000,  CNL-Capital  entered into a $43.75 million senior subordinated
   note payable  with the Bank that bore  interest at a rate of 8.50 percent per
   annum.  In January 2004, the Company  amended the  subordinated  note payable
   agreement while at the same time making a $10 million prepayment reducing the
   balance  to  $33.75  million  and  reducing  the  Bank's  ownership  from the
   conversion  feature in CNL-Capital from 13.1 percent to 10.11 percent.  As of
   December 31, 2003,  the Bank had not  exercised  its  conversion  option.  In
   addition,  the  Company  agreed to make a  mandatory  prepayment  of  $11.875
   million prior to or on December 31, 2004.  The interest rate was reduced from
   8.50 percent to 7.00 percent per annum. The  subordinated  note will amortize
   over five years with a balloon payment due December 31, 2008.

   Collateral for the Series 2000-A bonds consist of 258 commercial  real estate
   properties  operated as restaurants leased to tenants,  with a carrying value
   of $330.0 million at December 31, 2003. The Series 2000-A bonds bear interest
   at a weighted average fixed rate of 7.9 percent per annum. The bond indenture
   provides for an optional redemption at their remaining principal balance when
   remaining  rents due under the leases that serve as collateral  are less than
   ten percent of the aggregate initial rents due under the leases.

   Collateral for the Series 2001-4 bonds consists of 60 mortgage loans that had
   a carrying value of approximately  $45.8 million as of December 31, 2003. The
   Series  2001-4 bonds bear  interest at a rate of 8.90 percent per annum.  The
   bond indenture requires monthly principal and interest payments received from
   borrowers to be applied to the bonds. The bond indenture also provides for an
   optional  redemption of the bonds at their remaining  principal  balance when
   the remaining  amounts due under the loans that serve as  collateral  for the
   bonds are less than ten percent of the aggregate  amounts due under the loans
   at the time of issuance.

   Collateral  for the Series 2001 bonds consist of 121  commercial  real estate
   properties  operated  as  restaurant  units  which have a  carrying  value of
   approximately $183.6 million as of December 31, 2003. The bonds are scheduled
   to amortize over a 15-year  period,  but mature in 2006.  The 2001 bonds bear
   interest  at a rate of LIBOR  plus 48 basis  points per  annum.  The  Company
   entered into an interest rate cap agreement with a strike rate of 4.5 percent
   to protect against future increases in LIBOR.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


9. Borrowings - Continued:

   In  December  2003,  the Company  issued  notes  collateralized  by a pool of
   mortgage loans,  Series 2003. The proceeds of $25 million were applied to pay
   down  short-term and medium term debt. The Company  applied 34 mortgage loans
   and 4  equipment  leases as  collateral  for the bonds,  which had a carrying
   value of  approximately  $46.6 million as of December 31, 2003.  The offering
   resulted in an initial weighted  average maturity of approximately  3.8 years
   and rate of  interest  of  approximately  5.67  percent  per annum.  The bond
   indenture  requires  monthly  principal and interest  payments  received from
   borrowers  to be applied to the bonds.  The Company  entered into an interest
   rate cap  agreement  with a strike  rate of 3.5  percent to  protect  against
   future increases in LIBOR.

   The following  schedule of maturities on  outstanding  indebtedness  does not
   reflect the annual  extensions on the warehouse  facilities  but assumes that
   bonds payable amortize in accordance with estimated payment amounts:

                                                   (In thousands)
                                                  -----------------

                         2004                          $   145,959
                         2005                               36,621
                         2006                              138,886
                         2007                               32,780
                         2008                               36,089
                         Thereafter                        361,499
                                                  -----------------

                                                       $   751,834
                                                  =================

   Management  believes that net carrying  value of the debt  approximates  fair
   value  based on current  rates at which  similar  loans  would be made to the
   Company at similar credit levels and similar maturities.

10.Income Tax:

   The Company elected to be taxed as a REIT under the Internal Revenue Code. To
   qualify  as a REIT,  the  Company  must meet a number of  organizational  and
   operational requirements,  including a current requirement that it distribute
   at least 90 percent of its taxable income to its stockholders.  As a REIT the
   Company  generally will not be subject to corporate  level federal income tax
   on net income it distributes to its stockholders,  except taxes applicable to
   its taxable REIT subsidiaries ("TRSs").

   For income tax purposes the Company has two TRSs in which  activities  of the
   specialty  finance  segment and select  activities of the real estate segment
   are  conducted.  Prior to  January  1, 2001,  Company  subsidiaries  were not
   subject to federal income tax.

   Loan valuation adjustments, loss reserves, loan fees, and depreciation, among
   other items,  are treated  differently  for tax than for financial  reporting
   purposes.  In the  aggregate,  the Company's TRSs have an excess of available
   future  deductible items over future taxable items and as such may more fully
   benefit  from these  items when the  related  subsidiaries  produce a greater
   level of taxable  income.  The CNL  Investments  TRS does not have sufficient
   historical  earnings on which to expect a full  potential  future  benefit of
   these  future  deductions.  Therefore  the Company  has  recorded a valuation
   allowance of $0.8 million against the  CNL-Investments TRS deferred tax asset
   associated with the future deductible items.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


10.Income Tax - Continued:

   The  consolidated  provision for federal income taxes differs from the amount
   computed by applying the statutory federal income tax rate to the income from
   continuing  operations as follows for each of the three years ended  December
   31:
<TABLE>
<CAPTION>

 <c>
                                                                           (In thousands)
                                                               2003           2002              2001
                                                            ------------  -------------     -------------

                Expected tax at U.S. statutory rate             $  2,761       $  9,180         $  (5,351 )
                REIT income not subject to U.S.
                    income tax                                   (10,288 )       (9,004 )           5,949
                Goodwill amortization                                 --             --               902
                Change in valuation allowance                      7,527           (176 )          (1,500 )
                                                            ------------  -------------     -------------
                Provision for income taxes                         $  --         $   --            $   --
                                                            ------------  -------------     -------------
</TABLE>


   As of December 31, 2003,  the Company  reversed  the  valuation  allowance of
   approximately  $7 million  previously  recorded in the  CNL-Capital  TRS. The
   Company  determined  that it is more likely than not that this  deferred  tax
   asset will be realized  based on  historical  earnings and  projected  future
   income.

   The  components  of the net deferred tax asset  consists of the  following at
   December 31:
<TABLE>
<CAPTION>

 <c>
                                                                                   (In thousands)
                                                                                2003           2002
                                                                              ----------    -----------

                  Deferred tax asset:
                         Cash flow hedge related difference                      $ 4,039        $ 5,789
                         Loan valuation and related hedge differences               (155 )        1,899
                         Loan origination fees                                       646            619
                         Real estate loss reserves                                 1,303            300
                         Reserve for investment losses                             1,200            736
                         Net operating losses                                      1,092            250
                         Other                                                       449            (19 )
                                                                              ----------    -----------
                           Total                                                   8,574          9,574
                  Valuation allowance                                               (842 )       (7,846 )
                                                                              ----------    -----------
                               Net recorded deferred tax asset                   $ 7,732        $ 1,728
                                                                              ==========    ===========
</TABLE>



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


10.Income Tax - Continued:

   The income tax provision  (benefit) consists of the following  components for
   each of the years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                (In thousands)
                                                    2003             2002            2001
                                                 ------------     -----------    -------------

                 Current:
                        Federal                      $  2,678         $ 1,487           $  --
                        State                             458             241              --
                                                 ------------     -----------    -------------
                                                        3,136           1,728              --
                                                 ------------     -----------    -------------
                 Deferred:
                        Federal                        (8,466 )        (1,487 )            --
                        State                          (1,016 )          (241 )            --
                                                 ------------     -----------    -------------
                                                       (9,482 )        (1,728 )            --
                                                 ------------     -----------    -------------
                 Total provision/(benefit)           $ (6,346 )         $  --           $  --
                                                 ============     ===========    =============
</TABLE>


   The income tax benefit has been allocated as follows:
<TABLE>
<CAPTION>

 <c>
                                                                       (In thousands)
                                                            2003             2002           2001
                                                         ------------     -----------    ------------

                 Continuing operations                        $  --           $  --          $  --
                 Discontinued operations                      (6,346)            --             --
                                                         ------------     -----------    ------------

                 Total income tax benefit                  $  (6,346)         $  --          $  --
                                                         ============     ===========    ============
</TABLE>

11.Distributions:

   For the years  ended  December  31,  2003,  2002 and 2001,  approximately  39
   percent,  0  percent  and 21  percent,  respectively,  of  the  distributions
   received  by   stockholders   were  considered  to  be  ordinary  income  and
   approximately  61 percent,  100 percent  and 79 percent,  respectively,  were
   considered a return of capital for federal  income tax purposes.  The Company
   has continued to declare and pay  distributions to its stockholders  that are
   primarily funded by distributions from  CNL-Investments.  The Company elected
   to reinvest the earnings of the specialty  finance  segment  since 2001.  The
   remainder  of the  distributions  were funded by sales of its common stock to
   the Company's  Chairman through a private company  affiliate,  CFG, and loans
   from CFG.



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


12.Related Party Transactions:

   The following table and disclosures summarize related party transactions with
   affiliated entities for the years ended December 31:
<TABLE>
<CAPTION>

 <c>
                                                                               (In thousands)
                                                                   ---------------------------------------
                        Amounts received (paid):                      2003          2002         2001
                                                                   ------------  ------------ ------------

                        Services purchased from affiliates (1)        $ (3,094)     $ (3,954)    $ (4,564)

                        Rental and other expenses to affiliates
                           for office space (2)                       $ (1,445)     $ (1,479)    $ (1,237)

                        Servicing fees from affiliates (3)            $  4,612      $  5,938     $  6,771

                        Referral fees from the Bank                   $  1,109      $    734     $  1,580

                        Sale of properties to an affiliate (4)           $  --      $ 25,857     $ 13,430

                        Sale of equipment leases to an affiliate(5)      $  --         $  --     $  1,100
</TABLE>

   (1) Services purchased from affiliates include human resources,  tax planning
       and compliance,  computer systems support,  investor  relations and other
       services.

   (2) In May 2002,  the Company  purchased a combined five percent  partnership
       interest in CNL Plaza, Ltd. and CNL Plaza Venture, Ltd. (the "Plaza") for
       $0.2 million.  Affiliates  of James M. Seneff,  Jr. and Robert A. Bourne,
       each of which is a director of the Company, own the remaining partnership
       interests.  The Company has  severally  guaranteed  8.33  percent or $1.3
       million of a $15.5  million  unsecured  promissory  note on behalf of the
       Plaza. The guaranty continues through the loan maturity in November 2004.
       The Company  received  distributions  of $0.07  million and $0.1  million
       during the years ended December 31, 2003 and 2002, respectively, from the
       Plaza.  Since November 1999, the Company has leased its office space from
       CNL Plaza,  Ltd.,  an  affiliate  of a member of the  Company's  board of
       directors. The Company's lease expires in 2014 and provides for scheduled
       rent increases over the term of the lease.  Rental and other expenses for
       the years ended December 31, 2003,  2002 and 2001 include  accrued rental
       expense (the additional rent expense  resulting from the  straight-lining
       of scheduled  rent  increases  over the term of the lease) and  executory
       costs.  Future commitments due under the office space operating lease are
       as follows:

                                                  (In thousands)
                                               -------------------

                2004                            $       1,106
                2005                                    1,139
                2006                                    1,173
                2007                                    1,209
                2008                                    1,245
                Thereafter                              8,042
                                               -------------------

                                                $      13,914
                                               ===================



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


12.Related Party Transactions - Continued:

   (3) Property  management  and  other  administrative   services  provided  to
       affiliates investing in restaurant net lease properties and loans.

   (4) Proceeds  received from  affiliates from the sale of 22 properties and 11
       properties  during  2002 and 2001,  respectively,  for which the  Company
       recorded losses of $0.9 million and gains of $0.1 million, respectively.

   (5) Proceeds received from an affiliate for the purchase of collection rights
       of the current and future cash flows of three equipment leases, for which
       no gain or loss was recognized.

   During the year ended  December 31, 2001,  CFG, an  affiliate,  advanced $6.0
   million to the Company in the form of a demand balloon  promissory  note. The
   loan bore interest at a rate of LIBOR plus 2.5 percent or at the base rate as
   defined in the  agreement.  During  the year ended  December  31,  2001,  the
   Company  converted the outstanding  principal  balance plus accrued  interest
   under the advances into 359,722  shares of Company  stock.  During 2001,  the
   Company also issued  220,000  shares to CFG in exchange for $3.7 million paid
   to the  Company  in cash.  As of  December  31,  2001,  CFG had  advanced  an
   additional $2.7 million under the same terms as the previous advances. During
   2002,  CFG advanced an additional  $7.5 million to the Company under the same
   terms of the previous advances. In June 2002, the Company converted the $10.3
   million of outstanding  principal  plus accrued  interest under the advances,
   into 604,177 shares of stock.  During  September 2002 the Company also issued
   569,177  additional  shares to CFG in exchange for $9.75  million paid to the
   Company in cash.  During the years 2003 and 2002,  CFG advanced an additional
   $18.7 million and $4.25 million,  respectively, to the Company under the same
   terms as the previous  advances.  The balance  outstanding as of December 31,
   2003 was $23.5 million, which included accrued interest.

   During the year ended  December  2003,  OrangeDen,  LLC, a subsidiary  of the
   Company entered into a collateral  contribution  agreement (`the  Agreement")
   with two separate affiliates,  CFG and Cherry Den, LLC, to provide collateral
   for a letter of credit to an insurance company for worker's  compensation and
   general  liability  coverage  relating to employees  leased to the restaurant
   operations within CNL-Investments. The collateral consists of certificates of
   deposit with  one-year  terms  amounting to $353,000 and are included in real
   estate and  restaurant  assets held for sale at December 31, 2003 relating to
   this Agreement.

   During the year ended December 31, 2002  CNL-Capital  acquired a portfolio of
   109 real estate properties,  which have been classified as held for sale, for
   approximately  $117  million by  acquiring  all of the  limited  partner  and
   general partners interests in CNL Net Lease Investors,  LP, ("NLI"). Eight of
   the  properties  acquired were vacant and the remaining 101  properties  were
   leased to  restaurant  operators  under  triple-net  leases,  which means the
   tenant is responsible  for all operating  expenses  relating to the property,
   including property taxes, insurance, maintenance and repairs. The Chairman of
   the Board and Vice Chairman of the Board of Directors of the Company, through
   an affiliate,  owned the 0.1 percent general partner interest in NLI prior to
   the  acquisition by  CNL-Capital  and agreed to waive their rights to benefit
   from the transaction. Of the original 109 properties, 92 have been sold as of
   December 31, 2003.

   During the year ended December 31, 2002, a tenant and borrower of the Company
   assigned loans in the amount of $7.5 million to Restaurants  Acquisitions  I,
   LLC, an affiliate of the Company.  The Company  agreed to the  assignment and
   advanced an additional $3.6 million to the affiliate in exchange for an $11.1
   million  participating note. The note bears interest at a rate of ten percent
   per annum and matures on May 1, 2014.  The  participating  note  entitles the
   Company to receive a percentage  of all cash flows  generated by the borrower
   on a quarterly basis until the note matures.  The Company earned $1.1 million
   and $0.7 million in interest income from the affiliate  during 2003 and 2002,
   respectively.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


12.Related Party Transactions - Continued:

   During the year ended December 31, 2001, an affiliate advanced  approximately
   $5.8  million  to  Phoenix   Restaurant  Group,  Inc.  and  its  subsidiaries
   (collectively  referred to as "PRG"),  a tenant and  borrower of the Company.
   PRG used these proceeds to pay outstanding obligations, including obligations
   to the Company.

13.Concentration of Credit Risk:

   No  individual  lessee  or  borrower  (or  affiliated  groups of  lessees  or
   borrowers)  or  restaurant  chains  represented  more than ten percent of the
   Company's  revenues  relating to its properties,  loans and secured equipment
   leases during the years ended December 31, 2003, 2002 or 2001.

   Although the Company's  properties are geographically  diverse throughout the
   United  States and  lessees  and  borrowers  operate a variety of  restaurant
   concepts,  15  restaurant  chains  constitute  72  percent  of the  Company's
   properties.  Failure of any one of these restaurant chains or any significant
   lessees or borrowers could significantly  impact results of operations if the
   Company is not able to timely protect its interest.

14.Segment Information:

   The Company has established CNL-Investments and CNL-Capital Corp. as separate
   legal  entities to operate and measure the real estate and specialty  finance
   segments, respectively.

   CNL-Investments  is the parent  company of CNL APF Partners LP, a real estate
   company that  acquires and holds real estate,  mortgage and  equipment  loans
   generally until maturity.  CNL-Capital Corp. is the parent of CNL-Capital,  a
   specialty  finance  company that offers  financing,  servicing,  advisory and
   other services to restaurant operators.  CNL-Capital acquires restaurant real
   estate properties  subject to triple-net leases,  utilizing  short-term debt,
   and then sells them generally within one year.


<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


14.Segment Information - Continued:

   The following  tables summarize the results for the years 2003, 2002 and 2001
   for  CNL-Investments  and CNL-Capital  Corp.  Consolidating  eliminations and
   other results of the parent of  CNL-Investments  and  CNL-Capital  Corp.  are
   reflected in the "other" column.
<TABLE>
<CAPTION>

 <c>
                                                                      Year Ended December 31, 2003
                                                                             (In thousands)

                                                          CNL-        CNL-Capital                    Consolidated
                                                       Investments       Corp.          Other           Totals
                                                      -------------   --------------  -------------  ---------------

          Revenues                                       $  85,263       $   32,254      $  (3,180 )     $  114,337
                                                      -------------   --------------  -------------  ---------------

          General operating and administrative               8,980           18,645         (2,417 )         25,208
          Interest expense                                  27,481           23,653           (558 )         50,576
          Property expenses, state and other taxes           1,145               (3 )           --            1,142
          Depreciation and amortization                     11,587              934             --           12,521
          Loss on termination of cash flow hedges               --              502             --              502
          Impairments and provisions on assets               5,494            8,756             --           14,250
          Minority interest net of equity in
             earnings                                          114            1,691             --            1,805
          Loss on sale of assets                               148                9             --              157
                                                      -------------   --------------  -------------  ---------------
                                                            54,949           54,187         (2,975 )        106,161
                                                      -------------   --------------  -------------  ---------------
          Discontinued operations:
          Earnings/(loss) from discontinued
             operations, net of income tax benefit          (2,547 )         36,811             --           34,264
                                                      -------------   --------------  -------------  ---------------

          Net income                                     $  27,767       $   14,878       $   (205 )     $   42,440
                                                      =============   ==============  =============  ===============

          Assets at December 31, 2003                    $ 811,203       $  491,923      $  (5,010 )    $ 1,298,116
                                                      =============   ==============  =============  ===============

          Investments accounted for under the
          equity method at December 31, 2003             $   1,038          $    --         $   --        $   1,038
                                                      =============   ==============  =============  ===============
</TABLE>





<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


14.Segment Information - Continued:
<TABLE>
<CAPTION>

 <c>
                                                                      Year Ended December 31, 2002
                                                                             (In thousands)

                                                          CNL-          CNL-Capital                  Consolidated
                                                       Investments          Corp.         Other          Totals
                                                      --------------   --------------  -----------  ---------------

         Revenues                                         $  88,600       $  250,784     $ (3,221 )     $  336,163
                                                      --------------   --------------  -----------  ---------------

         Cost of real estate sold                                --          193,179           --          193,179
         General operating and administrative                11,764           19,064       (2,395 )         28,433
         Interest expense                                    30,590           28,490         (679 )         58,401
         Property expenses, state and other taxes             2,939              390           --            3,329
         Depreciation and amortization                       11,890            1,243           --           13,133
         Impairments and provisions on assets                 4,476            5,150           --            9,626
         Minority interest net of equity in earnings            128            2,180           --            2,308
         Loss on sale of assets                                 330               17           --              347
                                                      --------------   --------------  -----------  ---------------
                                                             62,117          249,713       (3,074 )        308,756
                                                      --------------   --------------  -----------  ---------------
         Discontinued operations:
            Earnings/(loss) from discontinued
                operations,   net  of   income   tax
                benefit                                      (3,313 )         11,496           --            8,183
                                                      --------------   --------------  -----------  ---------------

         Net income                                       $  23,170       $   12,567      $  (147 )     $   35,590
                                                      ==============   ==============  ===========  ===============

         Assets at December 31, 2002                      $ 831,491       $  555,971     $ (4,012 )    $ 1,383,450
                                                      ==============   ==============  ===========  ===============

         Investments accounted for under the
           equity method at December 31, 2002             $   1,121          $    --        $  --        $   1,121
                                                      ==============   ==============  ===========  ===============
</TABLE>






<PAGE>
                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


14.Segment Information - Continued:
<TABLE>
<CAPTION>

 <c>
                                                                      Year Ended December 31, 2001
                                                                             (In thousands)

                                                          CNL-         CNL-Capital                   Consolidated
                                                      Investments         Corp.          Other          Totals
                                                      -------------   ---------------  -----------  ---------------

         Revenues                                        $  88,641       $   190,123     $ (4,351 )     $  274,413
                                                      -------------   ---------------  -----------  ---------------

         Cost of real estate sold                               --           118,372           --          118,372
         General operating and administrative                8,757            22,564       (1,729 )         29,592
         Interest expense                                   38,765            31,787         (802 )         69,750
         Property expenses, state and other taxes            2,528               143          214            2,885
         Depreciation and amortization                      12,196             5,519           --           17,715
         Loss on termination of cash flow hedges             1,643             6,417           --            8,060
         Impairments and provisions on assets               41,000               488           --           41,488
         Minority interest and equity in earnings              132             1,020           --            1,152
         Loss on sale of assets                              1,116                22           --            1,138
         Cumulative effect of accounting change                 --             3,841           --            3,841
                                                      -------------   ---------------  -----------  ---------------
                                                           106,137           190,173       (2,317 )        293,993
                                                      -------------   ---------------  -----------  ---------------
         Discontinued operations:
             Earnings/(loss) from discontinued
                operations, net of income tax
                benefit                                    (5,324 )             452           --           (4,872 )
                                                      -------------   ---------------  -----------  ---------------

         Net income/(loss)                              $  (22,820 )       $     402     $ (2,034 )     $  (24,452 )
                                                      =============   ===============  ===========  ===============


         Assets at December 31, 2001                     $ 920,911       $   643,154     $ (3,948 )    $ 1,560,117
                                                      =============   ===============  ===========  ===============

         Investments accounted for under the
              equity method at December 31, 2001         $   1,058          $     --        $  --        $   1,058
                                                      =============   ===============  ===========  ===============

</TABLE>



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


15.Commitments and Contingencies:

   In the ordinary course of business,  the Company has outstanding  commitments
   to qualified borrowers and tenants. These commitments,  including development
   agreements,  if accepted by the potential borrowers,  obligate the Company to
   provide funding.  At December 31, 2003, the Company had committed to fund $88
   million to qualified tenants.

   Certain  operating  leases  provide  that, in the event the Company sells the
   leased property before the fifth lease year, the annual rent will increase to
   the fifth year annual  rent  effective  on the day of the sale,  and that the
   Company will  compensate  the tenant for such increase using a portion of the
   proceeds from the sale of the property.

16.Selected Quarterly Financial Data:

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

 <c>

                                                                (In thousands except for share data)

                     2003 Quarter                 First         Second         Third         Fourth          Year
           ---------------------------------    -----------    ----------    ----------    -----------    -----------

           Continuing operations:
               Revenues (1)                        $ 26,915      $ 29,381       $30,121        $27,920      $ 114,337
                                                ===========    ==========    ==========    ===========    ===========

               Earnings/(loss) from continuing
                  operations, net (1)                $  718       $ 1,642       $ 5,947         $ (131  )     $ 8,176

           Discontinued operations:
               Earnings and gains
                  from discontinued
                  operations, net (1)                 7,301         8,949         7,101         10,913         34,264
                                                -----------    ----------    ----------    -----------    -----------

           Net Income                               $ 8,019      $ 10,591       $13,048        $10,782       $ 42,440
                                                ===========    ==========    ==========    ===========    ===========

           Earnings per share:

               Continuing operations (1)            $  0.02        $ 0.04       $  0.13        $ (0.01  )     $  0.18
                                                ===========    ==========    ==========    ===========    ===========

               Discontinued operations (1)          $  0.16        $ 0.19       $  0.16        $  0.25        $  0.76
                                                ===========    ==========    ==========    ===========    ===========
</TABLE>




<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                  Years Ended December 31, 2003, 2002 and 2001


16.Selected Quarterly Financial Data - Continued:

<TABLE>
<CAPTION>
<S> <C>
                                                              (In thousands except for share data)

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

         Continuing operations:
             Revenues (1)                        $69,525      $ 137,498       $80,658       $48,482       $ 336,163
                                              ==========    ===========    ==========    ==========    ============

             Earnings/(loss) from continuing
                operations, net (1)                6,215         13,944         8,040          (792  )       27,407

         Discontinued operations:
             Earnings and gains
                from discontinued
                operations, net (1)                  217          1,098         3,203         3,665           8,183
                                              ----------    -----------    ----------    ----------    ------------

         Net Income                               $6,432       $ 15,042       $11,243       $ 2,873        $ 35,590
                                              ==========    ===========    ==========    ==========    ============

         Earnings/(loss) per share:

             Continuing operations (1)            $ 0.14        $  0.32       $  0.18       $ (0.03  )      $  0.61
                                              ==========    ===========    ==========    ==========    ============

             Discontinued operations (1)          $ 0.01        $  0.02       $  0.07        $ 0.09         $  0.19
                                              ==========    ===========    ==========    ==========    ============
</TABLE>

   (1) The  results  of  operations  relating  to  properties  that were  either
       disposed  of or that were  classified  as held for sale  during  the year
       ended December 31, 2003 and 2002 are reported as discontinued operations.
       In  addition,  management  adopted  FIN 46 in 2003 which  resulted in the
       consolidation   of  two  of  the  Company's   previously   unconsolidated
       subsidiaries.  The Company restated all prior periods to conform with the
       2003 presentation.



<PAGE>


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

         None.

Item 9A.Controls and Procedures

Quarterly  Evaluation.  Management  carried out an evaluation as of December 31,
2003  of the  effectiveness  of  the  design  and  operation  of  the  Company's
"disclosure  controls  and  procedures,"  which  management  refers  to  as  the
Company's  disclosure  controls.  This evaluation was done under the supervision
and  with  the  participation  of  management,  including  the  Company's  Chief
Executive Officer and Chief Financial  Officer.  Rules adopted by the Commission
require that management  present the conclusions of the Chief Executive  Officer
and Chief Financial Officer about the effectiveness of the Company's  disclosure
controls as of the end of the period covered by this annual report.

CEO and CFO  Certifications.  Included as Exhibits  31.1 and 31.2 to this Annual
Report  on Form  10-K  are  forms  of  "Certification"  of the  Company's  Chief
Executive  Officer and Chief Financial  Officer.  The forms of Certification are
required in accordance with Section 302 of the  Sarbanes-Oxley Act of 2002. This
section of the Annual Report on Form 10-K which you are currently reading is the
information   concerning  the   evaluation   referred  to  in  the  Section  302
certifications.  This information should be read in conjunction with the Section
302 certifications for a more complete understanding of the topics presented.

Disclosure   Controls  and  Procedures  and  Internal   Control  over  Financial
Reporting. Disclosure controls and procedures are designed with the objective of
ensuring  that  information  required to be disclosed in the  Company's  reports
filed or submitted  under the Exchange  Act,  such as this Annual Report on Form
10-K, is recorded,  processed,  summarized and reported  within the time periods
specified  in  the  Commission's  rules  and  forms.   Disclosure  controls  and
procedures   are  also  designed  with  the  objective  of  ensuring  that  such
information  is  accumulated  and  communicated  to  the  Company's  management,
including the Company's Chief Executive Officer and Chief Financial Officer,  as
appropriate, to allow timely decisions regarding required disclosure.

Internal control over financial reporting is a process designed by, or under the
supervision  of, the  Company's  Chief  Executive  Officer  and Chief  Financial
Officer, and effected by the Company's Board of Directors,  management and other
personnel,   to  provide  reasonable  assurance  regarding  the  reliability  of
financial  reporting and the  preparation  of financial  statements for external
purposes  in  accordance  with  generally  accepted  accounting  principles  and
includes those policies and procedures that:

   o   pertain  to  the  maintenance  of  records  that  in  reasonable   detail
       accurately and fairly reflect the  transactions  and  dispositions of our
       assets;

   o   provide reasonable  assurance that transactions are recorded as necessary
       to  permit  preparation  of  financial   statements  in  accordance  with
       generally accepted accounting principles, and that the Company's receipts
       and expenditures are being made only in accordance with authorizations of
       management or the Company's Board; and

   o   provide reasonable  assurance regarding prevention or timely detection of
       unauthorized acquisition, use or disposition of the Company's assets that
       could  have  a  material  adverse  effect  on  the  Company's   financial
       statements.

Limitations  on  the  Effectiveness  of  Controls.  Management,   including  the
Company's Chief Executive  Officer and Chief  Financial  Officer,  do not expect
that the Company's  disclosure controls and procedures or the Company's internal
control  over  financial  reporting  will  prevent  all errors and all fraud.  A
control  system,  no matter how well  conceived and  operated,  can provide only
reasonable,  not absolute,  assurance  that the objectives of the control system
are met.  Further,  the design of a control  system  must  reflect the fact that
there are resource constraints,  and the benefits of controls must be considered
relative to their  costs.  Because of the  inherent  limitations  in all control
systems,  no  evaluation  of controls can provide  absolute  assurance  that all
control  issues and  instances  of fraud,  if any,  within the company have been
detected.  These  inherent  limitations  include the realities that judgments in
decision-making  can be faulty,  and that breakdowns can occur because of simple
error or mistake.  Additionally,  controls can be circumvented by the individual
acts of some  persons,  by collusion of two or more people,  or by  management's
override of the control.  The design of any system of controls  also is based in
part upon certain  assumptions about the likelihood of future events,  and there
can be no assurance  that any design will succeed in achieving  its stated goals
under all potential future conditions; over time, controls may become inadequate
because of changes in conditions,  or the degree of compliance with the policies
or  procedures  may  deteriorate.  Because  of  the  inherent  limitations  in a
cost-effective control system, misstatements due to error or fraud may occur and
not be detected.

Conclusions.  Based upon the evaluation,  the Company's Chief Executive  Officer
and Chief  Financial  Officer have  concluded  that, as of December 31, 2003 and
subject to the limitations  noted above, the Company's  disclosure  controls and
procedures  were  effective  at the  reasonable  assurance  level to ensure that
material  information  relating to the Company  and the  Company's  consolidated
subsidiaries  is  made  known  to  management,  including  the  Company's  Chief
Executive Officer and Chief Financial Officer.

During the three months  ended  December  31,  2003,  there were no  significant
changes in the Company's  internal  control over  financial  reporting  that has
materially  affected,  or  are  reasonably  likely  to  materially  affect,  the
Company's internal control for financial reporting.


                                    PART III


Item 10. Directors and Executive Officers of the Registrant

         The  information  required by this Item is incorporated by reference to
the  Company's  Definitive  Proxy  Statement to be filed with the  Commission no
later than April 30, 2004.

Item 11. Executive Compensation

         The  information  required by this Item is incorporated by reference to
the  Company's  Definitive  Proxy  Statement to be filed with the  Commission no
later than April 30, 2004.

Item 12. Security Ownership of Certain Beneficial Owners and Management

         The  information  required by this Item is incorporated by reference to
the  Company's  Definitive  Proxy  Statement to be filed with the  Commission no
later than April 30, 2004.

Item 13. Certain Relationships and Related Transactions

         The  information  required by this Item is incorporated by reference to
the  Company's  Definitive  Proxy  Statement to be filed with the  Commission no
later than April 30, 2004.

Item 14. Principal Accountant Fees and Services

         The  information  required by this Item is incorporated by reference to
the  Company's  Definitive  Proxy  Statement to be filed with the  Commission no
later than April 30, 2004.


                                     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.  Consolidated Financial Statements

           Report of Independent Certified Public Accountants.

           Consolidated Balance Sheets at December 31, 2003 and 2002.

           Consolidated  Statements of Operations  for the years ended  December
           31, 2003, 2002 and 2001.

           Consolidated  Statements of  Stockholders'  Equity and  Comprehensive
           Income/(Loss) for the years ended December 31, 2003, 2002 and 2001.

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

           Notes to Consolidated 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.

           Schedule IV - Mortgage Loans on Real Estate 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

           2.1     Agreement  and Plan of Merger,  by and among the  Registrant,
                   CFA Acquisition Corp., CNL Fund Advisors, Inc. and CNL Group,
                   Inc.,  dated March 11, 1999 (included as Exhibit 10.38 to the
                   Registrant's Registration Statement No. 333-74329 on Form S-4
                   (the "Form S-4") as originally filed and incorporated  herein
                   by reference).

           2.2     Agreement  and Plan of Merger,  by and among the  Registrant,
                   CFC Acquisition  Corp., CFS Acquisition  Corp., CNL Financial
                   Corp., CNL Financial  Services,  Inc., CNL Group,  Inc., Five
                   Arrows Realty Securities L.L.C.,  Robert A. Bourne, Curtis B.
                   McWilliams and Brian Fluck, dated March 11, 1999 (included as
                   Exhibit  10.39  to the  Form  S-4  as  originally  filed  and
                   incorporated herein by reference).

           3.1     CNL Restaurant  Properties,  Inc. Second Amended and Restated
                   Articles  of  Incorporation  (included  as Exhibit 3.3 to the
                   Registrant's  Form 10-Q for the  quarter  ended June 30, 2000
                   and incorporated herein by reference).

           3.2     Articles of Amendment to Second Amended and Restated Articles
                   of Incorporation of CNL Restaurant Properties, Inc. (included
                   as Exhibit 3.4 to the Registrant's  Form 10-Q for the quarter
                   ended June 30, 2002 and incorporated herein by reference).

           3.3     Articles of Amendment to Second Amended and Restated Articles
                   of  Incorporation  of  CNL  American  Properties  Fund,  Inc.
                   (included  as Exhibit 3.5 to the  Registrant's  Form 10-Q for
                   the quarter  ended June 30, 2003 and  incorporated  herein by
                   reference).

           3.4     Second Amended and Restated Bylaws of CNL American Properties
                   Fund, Inc.  (included as Exhibit 3.6 to the Registrant's Form
                   10-Q  for  the   quarter   ended   September   30,  2003  and
                   incorporated herein by reference).

           4.1     Form of Stock  Certificate  (included  as Exhibit  4.5 to the
                   Registrant's Registration Statement No. 33-78790 on Form S-11
                   and incorporated herein by reference).

           10.1    Form of Indemnification Agreement dated as of April 18, 1995,
                   between  the  Registrant  and each of James M.  Seneff,  Jr.,
                   Robert A. Bourne,  G.  Richard  Hostetter,  J. Joseph  Kruse,
                   Richard C. Huseman,  John T. Walker,  Jeanne A. Wall, Lynn E.
                   Rose and Edgar J.  McDougall,  dated as of January 27,  1997,
                   between the Registrant and Steven D. Shackelford, dated as of
                   February  18,  1998,  between  the  Registrant  and Curtis B.
                   McWilliams,  and dated as of September  1, 1999,  between the
                   Registrant  and each of Howard  J.  Singer,  John L.  Farren,
                   Timothy  J.  Neville,  Michael  I.  Wood and  Barry  L.  Goff
                   (included  as Exhibit 10.9 to the  Registrant's  Registration
                   Statement No. 333-15411 on Form S-11 and incorporated  herein
                   by reference).

           10.2    Amended and Restated Agreement of Limited  Partnership of CNL
                   APF Partners,  LP (included as Exhibit 10.50 to Amendment No.
                   2 to the Form S-4 and incorporated herein by reference).

           10.3    Franchise Receivable Funding and Servicing Agreement dated as
                   of October 14, 1999 between CNL APF Partners,  LP and Neptune
                   Funding   Corporation   (included  as  Exhibit  10.5  to  the
                   Registrant's  Form 10-K for the year ended  December 31, 1999
                   and incorporated herein by reference).

           10.4    Interim Wholesale  Mortgage  Warehouse and Security Agreement
                   dated as of September 18, 1998, and Amended  Agreement  dated
                   as of  August  30,  1999  between  CNL APF  Partners,  LP and
                   Prudential Securities Credit Corporation (included as Exhibit
                   10.6  to the  Registrant's  Form  10-K  for  the  year  ended
                   December 31, 1999 and incorporated herein by reference).

           10.5    1999 Performance  Incentive Plan (included as Exhibit 10.1 to
                   Amendment  No. 1 to the Form S-4 and  incorporated  herein by
                   reference).

           10.6    Registration  Rights  Agreement by and among the  Registrant,
                   Robert A.  Bourne,  Curtis  B.  McWilliams,  John T.  Walker,
                   Howard Singer,  Steven D.  Shackelford  and CNL Group,  Inc.,
                   dated as of March 11,  1999  (included  as  Exhibit  10.40 to
                   Amendment  No. 1 to the Form S-4 and  incorporated  herein by
                   reference).

           10.7    Registration  Rights  Agreement by and among the  Registrant,
                   Five Arrows Realty Securities L.L.C.,  James M. Seneff,  Jr.,
                   Robert A. Bourne,  Curtis B. McWilliams and CNL Group,  Inc.,
                   dated as of March 11,  1999  (included  as  Exhibit  10.41 to
                   Amendment  No. 1 to the Form S-4 and  incorporated  herein by
                   reference).

           10.8    Employment  Agreement  by and  between  Barry L. Goff and the
                   Registrant,  dated  September  15, 1999  (included as Exhibit
                   10.46 to  Amendment  No.  2 to the Form S-4 and  incorporated
                   herein by reference).

           10.9    Employment  Agreement by and between Robert W. Chapin and the
                   Registrant,  dated  September  15, 1999  (included as Exhibit
                   10.47 to  Amendment  No.  2 to the Form S-4 and  incorporated
                   herein by reference).

           10.10   Employment  Agreement  by and  between  Michael  Wood and the
                   Registrant,  dated August 31, 1999 (included as Exhibit 10.19
                   to the Registrant's Form 10-Q for the quarter ended March 31,
                   2001 and incorporated herein by reference).

           10.11   Employment  Agreement  by and  between  Brent  Heaton and the
                   Registrant,  dated  September  29, 1999  (included as Exhibit
                   10.20 to the  Registrant's  Form 10-Q for the  quarter  ended
                   March 31, 2001 and incorporated herein by reference).


<PAGE>



           10.12   Addendum  to  Employment  Agreement  dated as of  November 1,
                   1999, between the Registrant and Curtis McWilliams  (included
                   as  Exhibit  10.21  to the  Registrant's  Form  10-Q  for the
                   quarter  ended  March  31,  2001 and  incorporated  herein by
                   reference). The following persons have signed a substantially
                   identical  Addendum  relating to their respective  employment
                   agreements;  Steve Shackelford (dated November 1, 1999), John
                   Walker (dated  November 3, 1999),  Barry Goff (dated November
                   1, 1999), and Brent Heaton (dated November 3, 1999).

           10.13   Addendum  to  Employment  Agreement  dated as of  November 1,
                   1999,  between the Registrant and Robert Chapin  (included as
                   Exhibit 10.22 to the  Registrant's  Form 10-Q for the quarter
                   ended March 31, 2001 and  incorporated  herein by reference).
                   The following  persons have signed a substantially  identical
                   Addendum relating to their respective employment  agreements:
                   Howard Singer (dated  November 1, 1999),  Michael Wood (dated
                   November 8, 1999) and Timothy  Neville  (dated  November  24,
                   1999).

           10.14   Second Addendum to Employment  Agreement dated as of June 16,
                   2000, between the Registrant and Curtis McWilliams  (included
                   as  Exhibit  10.23  to the  Registrant's  Form  10-Q  for the
                   quarter  ended  March  31,  2001 and  incorporated  herein by
                   reference). The following persons have signed a substantially
                   identical  Second  Addendum   relating  to  their  respective
                   employment  agreements:  Howard Singer (dated June 19, 2000),
                   Robert  Chapin  (dated June 20, 2000) and Brent Heaton (dated
                   October 30, 2000).

           10.15   Second  Addendum to Employment  Agreement  dated as of August
                   20, 2000,  between the Registrant and Barry Goff (included as
                   Exhibit 10.24 to the  Registrant's  Form 10-Q for the quarter
                   ended March 31, 2001 and incorporated herein by reference).

           10.16   Second  Addendum to Employment  Agreement dated as of October
                   24, 2000,  between the  Registrant and Michael Wood (included
                   as  Exhibit  10.27  to the  Registrant's  Form  10-Q  for the
                   quarter  ended  March  31,  2001 and  incorporated  herein by
                   reference).

           10.17   Amended and Restated  Master  Purchase  Agreement dated as of
                   October 11, 2001, among Bank of America,  N.A., CNL Financial
                   VII, LP and CNL  Franchise  Network,  LP (included as Exhibit
                   10.29  to the  Registrant's  Form  10-K  for the  year  ended
                   December 31, 2001 and incorporated herein by reference).

           10.18   Third  Amended and  Restated  Side Letter dated as of October
                   11, 2001, among Bank of America,  N.A., CNL Financial VII, LP
                   and CNL Franchise  Network,  LP (included as Exhibit 10.30 to
                   the  Registrant's  Form 10-K for the year ended  December 31,
                   2001 and incorporated herein by reference).

           10.19   Loan and Security Agreement dated as of June 14, 2002 between
                   CNL  Financial  IX,  LP  and  Nieuw   Amsterdam   Receivables
                   Corporation  (included as Exhibit  10.31 to the  Registrant's
                   Form  10-Q  for  the   quarter   ended  June  30,   2002  and
                   incorporated herein by reference).

           10.20   Letter  Agreement  dated  December  15, 2003  between Bank of
                   America,  N.A.,  CNL  Financial  VII,  LP and CNL  Restaurant
                   Capital, LP (filed herewith).

           10.21   Employment  Agreement  dated as of May 5, 2003 by and between
                   CNL  Franchise  Network GP Corp.  and  Steven D.  Shackelford
                   (filed herewith).

           10.22   Employment  Agreement  dated as of May 5, 2003 by and between
                   CNL  Franchise  Network  GP Corp.  and  Curtis B.  McWilliams
                   (filed herewith).

           21      Subsidiaries of the Registrant (filed herewith).

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

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

           32.1    Certification  of  Chief  Executive  Officer  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  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 12th day of
March, 2004.

                       CNL RESTAURANT PROPERTIES, INC.

                       By:

                            /s/ CURTIS B. McWILLIAMS
                            ----------------------------------
                            Curtis B. McWilliams
                            Chief Executive Officer
                            (Principal Executive Officer)



                            /s/ STEVEN D. SHACKELFORD
                            ----------------------------------
                            Steven D. Shackelford
                            Chief Financial Officer
                            (Principal Financial and Accounting Officer)





<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/ CURTIS B. McWILLIAMS                         Chief Executive Officer                        March 12, 2004
---------------------------------------------    (Principal Executive Officer)
Curtis B. McWilliams



/s/ STEVEN D. SHACKELFORD                        Chief Financial Officer                        March 12, 2004
---------------------------------------------    (Principal Financial and Accounting
Steven D. Shackelford                                Officer)



/s/ JAMES M. SENEFF, JR.                         Director, Chairman of the Board                March 12, 2004
---------------------------------------------
James M. Seneff, Jr.



/s/ ROBERT A. BOURNE                             Director                                       March 12, 2004
---------------------------------------------
Robert A. Bourne



/s/ G. RICHARD HOSTETTER                         Director                                       March 12, 2004
---------------------------------------------
G. Richard Hostetter



/s/ J. JOSEPH KRUSE                              Director                                       March 12, 2004
---------------------------------------------
J. Joseph Kruse



/s/ RICHARD C. HUSEMAN                           Director                                       March 12, 2004
---------------------------------------------
Richard C. Huseman


</TABLE>




<PAGE>




                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
                  Years Ended December 31, 2003, 2002 and 2001
                                 (In thousands)

<TABLE>
<CAPTION>

 <c>

                                                       Additions                        Deductions
                                              -----------------------------    ------------------------------

                                Balance at     Charged to     Charged to         Deemed                            Balance
                                Beginning      Costs and        Other           Uncollec-        Collected/        at End
  Year        Description        of Year        Expenses       Accounts           tible          Recovered         of Year
---------   -----------------  -------------  -------------  --------------    -------------    -------------  ---------------

  2001      Allowance for
                doubtful
                accounts (a)      $   9,968       $   452       $   1,101  (b)    $  2,557  (c)    $   4,119        $    4,845

            Deferred tax
                asset
                valuation
                allowance                 0            --           7,703               --                --             7,703
                               -------------  -------------  --------------    -------------    -------------  ---------------
                                  $   9,968       $   452       $   8,804         $  2,557         $   4,119        $   12,548
                               =============  =============  ==============    =============    =============  ===============

  2002      Allowance for
                doubtful
                accounts (a)      $   4,845       $   627       $   2,695  (b)    $  4,408  (c)    $   1,206        $    2,553

            Deferred tax
                asset
                valuation
                allowance             7,703            --           1,871               --             1,728             7,846
                               -------------  -------------  --------------    -------------    -------------  ---------------
                                  $  12,548       $   627       $   4,566         $  4,408         $   2,934        $   10,399
                               =============  =============  ==============    =============    =============  ===============

  2003      Allowance for
                doubtful
                accounts (a)      $   2,553      $  4,771        $    532  (b)    $  4,181  (c)     $    399        $    3,276

            Deferred tax
                asset
                valuation
                allowance             7,846            --             842               --             7,846               842
                               -------------  -------------  --------------    -------------    -------------  ---------------
                                  $  10,399      $  4,771       $   1,374         $  4,181         $   8,245        $    4,118
                               =============  =============  ==============    =============    =============  ===============
</TABLE>

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

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

(c)   Amounts written off as uncollectible.


<PAGE>


                CNL RESTARAUNT PROPERTIES, INC. AND SUBSIDIARIES
             SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                December 31, 2003
                                 (In thousands)
<TABLE>
<CAPTION>

 <c>

                                                                               Costs Capitalized      Gross Amount at Which
                                                          Initial Cost     Subsequent to Acquisition Carried at Close of Period
                                         Impair- Encum-        Buildings and Improve-  Carrying          Building and
                                          ment   brances Land   Improvements  ments     Costs      Land   Improvements  Total
Properties the Company
has invested in Under

Operating Leases:

Applebee's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Antioch, Tennessee                          -     (i)       610        770          -         -       610          770    1,380
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Clarksville, Tennessee                      -     (i)       556        983          -         -       556          983    1,539
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Columbia, Tennessee                         -     (i)       626        936          -         -       626          936    1,562
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cookeville, Tennessee                       -     (i)       490      1,004          -         -       490        1,004    1,493
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hendersonville, Tennessee                   -     (i)       550        967          -         -       550          967    1,516
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hermitage, Tennessee                        -     (i)       735        827          -         -       735          827    1,563
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hopkinsville, Kentucky                      -     (i)       390        943          -         -       390          943    1,333
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lebanon, Tennessee                          -     (i)       568        925          -         -       568          925    1,493
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Madison, Tennessee                          -     (i)       740        836          -         -       740          836    1,576
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Montclair, California                       -               874-         -        880         -       874          880    1,755
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Moscow, Idaho                               -               537-         -      1,194         -       537        1,194    1,731
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Rockford, Illinois                          -     (i)       604          -          -         -       604            -      604
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Salem, Oregon                               -               778-         -      1,154         -       778        1,154    1,932
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arby's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Allen, Texas                                -     (i)       509          -          -         -       509            -      509
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arab, Alabama                               -     (i)       231        456          -         -       231          456      687
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Atlanta, Georgia                            -     (i)       648          -        655         -       648          655    1,304
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Auburndale, Florida                         -     (i)       327        391          -         -       327          391      718
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Avon, Indiana                               -     (i)       338        497          -         -       338          497      836
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bartow, Florida                             -     (i)       226        414          -         -       226          414      641
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Brooksville, Florida                        -     (i)       267        422          -         -       267          422      688
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Brooksville, Florida                        -     (i)       248        369          -         -       248          369      617
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Canton, Georgia                             -     (i)       586          -        607         -       586          607    1,193
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Columbus, Ohio                              -     (i)       442          -        594         -       442          594    1,036
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Columbus, Ohio                              -     (i)       484          -        576         -       484          576    1,060
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Douglasville, Georgia                       -     (i)       709          -        546         -       709          546    1,255
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Flower Mound, Texas                         -     (i)       434          -        618         -       434          618    1,052
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Grand Rapids, Michigan                      -     (i)       313          -          -         -       313            -      313
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Greensboro, North Carolina                  -     (i)       363        405          -         -       363          405      768
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Greenville, North Carolina                  -     (i)       278        490          -         -       278          490      768
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hudson, Florida                             -     (i)       271        489          -         -       271          489      759
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Indianapolis, Indiana                       -     (i)       440          -        677         -       440          677    1,117
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jonesville, North Carolina                  -     (i)       225        540          -         -       225          540      765
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Kernersville, North Carolina                -     (i)       273        413          -         -       273          413      686
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Kinston, North Carolina                     -     (i)       269        485          -         -       269          485      754
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lakeland, Florida                           -     (i)       236        452          -         -       236          452      688
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lexington, North Carolina                   -     (i)       321        463          -         -       321          463      784
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Myrtle Beach, South Carolina                -     (i)       421          -        633         -       421          633    1,055
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Port Richey, Florida                    -     (i)       243        398          -         -       243          398      641
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orange Park, Florida                        -     (i)       463          -        593         -       463          593    1,056
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Plant City, Florida                         -     (i)       196        444          -         -       196          444      640
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Redford , Michigan                          -     (i)       413          -        673         -       413          673    1,086
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tampa, Florida                              -     (i)       322        372          -         -       322          372      694
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
The Colony, Texas                           -     (i)       504          -          -         -       504            -      504
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Vancouver, Washington                       -     (i)       733          -        666         -       733          666    1,399
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Walker, Michigan                            -     (i)       498          -        701         -       498          701    1,200
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Whitehall, Ohio                             -     (i)       523          -        289         -       523          289      812
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bakers Square Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Alsip, Illinois                             -     (i)       449        728          -         -       449          728    1,177
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Burbank, Illinois                           -     (i)       680      1,041          -         -       680        1,041    1,721
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cherry Valley, Illinois                     -     (i)       419        849          -         -       419          849    1,268
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Coon Rapids, Minnesota                      -     (i)       544      1,132          -         -       544        1,132    1,676
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Deerfield, Illinois                         -     (i)       573        468          -         -       573          468    1,041
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Downers Grove, Illinois                     -     (i)       538        778          -         -       538          778    1,316
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Homewood, Illinois                          -     (i)       601        760          -         -       601          760    1,362
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
LaGrange, Illinois                          -     (i)       591        770          -         -       591          770    1,362
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lansing, Illinois                           -     (i)       648        870          -         -       648          870    1,517
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mankato, Minnesota                          -     (i)       489      1,142          -         -       489        1,142    1,631
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Matteson, Illinois                          -     (i)       664        853          -         -       664          853    1,517
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Merrillville, Indiana                       -     (i)       567      1,177          -         -       567        1,177    1,744
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Palatine, Illinois                          -     (i)       687        675          -         -       687          675    1,362
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Palos Heights, Illinois                     -     (i)       375        734          -         -       375          734    1,110
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Charles, Illinois                     -     (i)       615        631          -         -       615          631    1,245
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Westmont, Illinois                          -     (i)       518        591          -         -       518          591    1,109
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Willowbrook, Illinois                       -     (i)       586        718          -         -       586          718    1,304
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bandana's Bar-B-Q Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arnold, Missouri                           (j)    (i)       373        873          -         -       373          873    1,247
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Collinsville, Illinois                     (j)    (i)       347        829          -         -       347          829    1,176
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Columbia, Missouri                         (j)    (i)       502          -        920         -       502          920    1,422
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Crystal City, Missouri                     (j)              273-       903          -         -       273          903    1,177
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fenton, Missouri                           (j)              624-     1,028          -         -       624        1,028    1,652
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bennigan's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arvada, Colorado                            -     (i)       714      1,303          -         -       714        1,303    2,017
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bedford, Texas                              -     (i)       768          -          -         -       768            -      768
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Canton, Ohio                                -     (i)     1,434          -        835         -     1,434          835    2,269
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Clearwater, Florida                         -     (i)       900          -          -         -       900            -      900
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Colorado Springs, Colorado                  -     (i)       794          -          -         -       794            -      794
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Copley, Ohio                                -     (i)     1,434          -        835         -     1,434          835    2,269
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Englewood, Colorado                         -     (i)       665          -          -         -       665            -      665
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Englewood, New Jersey                       -     (i)     1,460        901          -         -     1,460          901    2,361
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Florham Park, New Jersey                    -     (i)     1,078          -          -         -     1,078            -    1,078
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Glenview, Illinois                          -     (i)     1,019          -      1,790         -     1,019        1,790    2,809
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Grapevine, Texas                            -     (i)     1,039          -      1,523         -     1,039        1,523    2,562
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Houston, Texas                              -     (i)       909          -          -         -       909            -      909
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Jacksonville, Florida                       -     (i)       833          -          -         -       833            -      833
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Jacksonville, Florida                       -     (i)       779          -          -         -       779            -      779
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Lone Tree, Colorado                         -     (i)     1,075          -      1,502         -     1,075        1,502    2,578
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Mount Laurel, New Jersey                    -     (i)     1,306      1,031          -         -     1,306        1,031    2,337
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North Richland Hills, Texas                 -     (i)       886          -          -         -       886            -      886
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Ocala, Florida                              -     (i)       693      1,073          -         -       693        1,073    1,766
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Oklahoma City, Oklahoma                     -               757-         -          -         -       757            -      757
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Orlando, Florida                            -     (i)     1,585        874          -         -     1,585          874    2,460
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Pensacola, Florida                          -     (i)       692          -          -         -       692            -      692
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Saint Louis Park, Minnesota                 -     (i)       885          -          -         -       885            -      885
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Tampa, Florida                              -               741-         -          -         -       741            -      741
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Woodridge, Illinois                         -     (i)       790          -          -         -       790            -      790
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Black Angus Restaurants:
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Dublin, California                          -     (i)     1,023          -      1,275         -     1,023        1,275    2,298
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Fort Worth, Texas                          (j)              679-         -      1,029         -       679        1,029    1,708
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Glendale, Arizona                          (j)              745-         -      1,083         -       745        1,083    1,828
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Grapevine, Texas                           (j)              412-         -      1,804         -       412        1,804    2,216
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Hillsboro, Texas                            -               405-         -          -         -       405            -      405
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Orem, Utah                                  -     (i)       799          -      1,233         -       799        1,233    2,032
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Boston Market Restaurants:
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Atlanta, Georgia                            -     (i)       774          -        508         -       774          508    1,282
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Cary, North Carolina                        -               533-       801          -         -       533          801    1,334
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Chandler, Arizona                           -               440-       476          -         -       440          476      916
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Columbus, Ohio                              -     (i)       354        606          -         -       354          606      960
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Gambrills, Maryland                         -     (i)       668          -        662         -       668          662    1,330
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Glendale, Arizona                           -     (i)       567        404          -         -       567          404      970
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Indianapolis, Indiana                       -     (i)       886          -        649         -       886          649    1,534
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Lake Worth, Florida                         -               570-         -        900         -       570          900    1,470
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Lansing, Michigan                           -     (i)       516          -        573         -       516          573    1,089
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Riverdale, Maryland                         -     (i)       526        504          -         -       526          504    1,031
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Scottsdale, Arizona                         -               522-       410          -         -       522          410      932
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Waldorf, Maryland                           -     (i)       652        776          -         -       652          776    1,428
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Warwick, Rhode Island                       -     (i)       235        589          -         -       235          589      824
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Burger King Restaurants:
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Burbank, Illinois                           -     (i)       543          -        552         -       543          552    1,096
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Chadbourn, North Carolina                   -               217-         -        859         -       217          859    1,076
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Chattanooga, Tennessee                      -     (i)       680          -        527         -       680          527    1,207
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Chattanooga, Tennessee                     (j)    (i)       770        377          -         -       770          377    1,147
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Chicago, Illinois                           -     (i)       918          -        713         -       918          713    1,631
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Clinton, North Carolina                     -               350-         -        663         -       350          663    1,012
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Cut Off, Louisiana                          -               323-     1,219          -         -       323        1,219    1,542
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Highland, Indiana                           -     (i)       650          -        600         -       650          600    1,250
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Kent, Ohio                                  -     (i)       233        690          -         -       233          690      923
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Lacey, Washington                           -               308-       754          -         -       308          754    1,062
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Lake Charles, Louisiana                     -               360-     1,063          -         -       360        1,063    1,423
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Lynnwood, Washington                       (j)              449-       627          -         -       449          627    1,076
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Manchester, New Hampshire                   -               776-       459          -         -       776          459    1,235
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Natchez, Mississippi                        -               273-       718          -         -       273          718      992
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Oak Lawn, Illinois                          -     (i)     1,211          -        741         -     1,211          741    1,953
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Olympia, Washington                         -                 --       712          -         -    (h)             712      712
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Ooltewah, Tennessee                         -     (i)       546          -        659         -       546          659    1,205
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Opelousas, Louisiana                        -               625-       959          -         -       625          959    1,584
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Portland, Oregon                            -               500-         -          -         -       500            -      500
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Shelton, Washington                         -               424-       822          -         -       424          822    1,247
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Spanaway, Washington                        -               417-       762          -         -       417          762    1,179
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Warren, Michigan                            -               376-       821          -         -       376          821    1,197
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Wilmington, North Carolina                  -               349-         -        702         -       349          702    1,050
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Chevy's Fresh Mex Restaurants:
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Altamonte Springs, Florida                  -     (i)     1,260      1,623          -         -     1,260        1,623    2,883
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Annapolis, Maryland                         -             1,372-         -          -         -     1,372            -    1,372
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Arapahoe, Colorado                          -     (i)       986      1,680          -         -       986        1,680    2,667
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Atlanta, Georgia                           (j)    (i)     1,464      1,874          -         -     1,464        1,874    3,338
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Beaverton, Oregon                           -     (i)       938      1,682          -         -       938        1,682    2,620
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Bloomington, Minnesota                      -     (i)       869      1,310          -         -       869        1,310    2,179
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Brandon, Florida                           (j)    (i)       844      1,426          -         -       844        1,426    2,270
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Clearwater, Florida                        (j)    (i)       984      1,104          -         -       984        1,104    2,088
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Greenbelt, Maryland                         -     (i)       945      1,475          -         -       945        1,475    2,421
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Jacksonville, Florida                      (j)    (i)     1,725      1,574          -         -     1,725        1,574    3,300
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Kissimmee, Florida                          -     (i)       571      1,536          -         -       571        1,536    2,107
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Lake Mary, Florida                         (j)    (i)        88      2,019          -         -        88        2,019    2,107
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Lake Oswego, Oregon                         -     (i)       963      1,506          -         -       963        1,506    2,469
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Las Vegas, Nevada                           -     (i)     1,157      1,188          -         -     1,157        1,188    2,345
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Merriam, Kansas                            (j)    (i)     1,032      1,075          -         -     1,032        1,075    2,107
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Naperville, Illinois                        -     (i)       961      1,366          -         -       961        1,366    2,326
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Nashville, Tennessee                        -     (i)       957      2,692          -         -       957        2,692    3,649
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Orlando, Florida                           (j)    (i)     1,496      1,675          -         -     1,496        1,675    3,170
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Tampa, Florida                              -     (i)       869      1,549          -         -       869        1,549    2,418
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Tampa, Florida                             (j)    (i)       878      1,449          -         -       878        1,449    2,327
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Taylor, Michigan                           (j)    (i)       845      1,712          -         -       845        1,712    2,557
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Chick-Fil-A Restaurant:
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Rockwall, Texas                             -     (i)       528          -        340         -       528          340      868
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Chipotle Mexican Grill Restaurant:
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Upland, California                          -     (i)       788          -        209         -       788          209      998
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Culpepper Restaurant:
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Bridgeton, Missouri                        (j)                --       596          -         -    (h)             596      596
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Darryl's Restaurants:
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Mobile, Alabama                             -               495-       937          -         -       495          937    1,432
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Montgomery, Alabama                        (j)              346-       870          -         -       346          870    1,216
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Orlando, Florida                            -             1,486-       773          -         -     1,486          773    2,258
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Raleigh, North Carolina                    (j)              841-       465          -         -       841          465    1,306
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Richmond, Virginia                         (j)              618-       698          -         -       618          698    1,316
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Del Taco Restaurant:
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Mesa, Arizona                               -     (i)       642          -        582         -       642          582    1,224
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Denny's Restaurants:
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Duncan, South Carolina                      -     (i)       220          -          -         -       220            -      220
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Greensboro, North Carolina                  -     (i)       361        572          -         -       361          572      933
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Greenville, South Carolina                  -     (i)       458        455          -         -       458          455      912
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Houston, Texas                              -     (i)       393        665          -         -       393          665    1,058
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Kansas City, Missouri                       -               401-       901          -         -       401          901    1,302
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Landrum, South Carolina                     -     (i)       155          -          -         -       155            -      155
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Lee's Summit, Missouri                     (j)              540-       670          -         -       540          670    1,210
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Merriam, Kansas                            (j)              645-       992          -         -       645          992    1,637
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Mooresville, North Carolina                 -     (i)       307          -          -         -       307            -      307
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North Kansas City, Missouri                (j)              450-       761          -         -       450          761    1,211
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Pasadena, Texas                             -               467-       506          -         -       467          506      973
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Sedalia, Missouri                          (j)              319-         -      1,013         -       319        1,013    1,332
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Topeka, Kansas                              -     (i)       415          -          -         -       415            -      415
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Winter Springs, Florida                     -     (i)       555          -          -         -       555            -      555
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Einstein Brothers' Bagels Restaurants:
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Dearborn, Michigan                          -               465-       178          -         -       465          178      643
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Springfield, Virginia                       -               634-         -          -         -       634            -      634
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Fazoli's Restaurant:
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Southaven, Mississippi                      -     (i)       485          -        587         -       485          587    1,072
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Golden Corral Family Steakhouse Restaurants:
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Bellevue, Nebraska                          -     (i)       441          -      1,039         -       441        1,039    1,480
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Brunswick, Georgia                          -               457-         -      1,171         -       457        1,171    1,627
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Carlsbad, New Mexico                        -               384-         -        644         -       384          644    1,028
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Cleburne, Texas                             -               359-         -        654         -       359          654    1,013
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Clovis, New Mexico                          -     (i)       409        806          -         -       409          806    1,214
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Columbia, Missouri                          -     (i)       848          -      1,009         -       848        1,009    1,857
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Columbus, Ohio                              -             1,031-         -      1,093         -     1,031        1,093    2,124
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Cookeville, Tennessee                       -               806-         -      1,087         -       806        1,087    1,893
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Corpus Christi, Texas                       -               577-         -        935         -       577          935    1,511
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Council Bluffs, Iowa                        -               546-         -        993         -       546          993    1,539
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Davenport, Iowa                             -     (i)       601      1,344          -         -       601        1,344    1,945
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Dover, Delaware                             -             1,043-         -        978         -     1,043          978    2,021
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Dubuque, Iowa                               -               564-         -      1,056         -       564        1,056    1,621
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Duncan, Oklahoma                            -               161-         -      1,029         -       161        1,029    1,190
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Evansville, Indiana                         -               601-         -      1,195         -       601        1,195    1,796
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Evansville, Indiana                         -               588-         -      1,393         -       588        1,393    1,981
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Flowood, Mississippi                        -     (i)       596          -      1,094         -       596        1,094    1,690
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Fort Dodge, Iowa                            -               321-         -      1,156         -       321        1,156    1,477
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Fort Walton Beach, Florida                  -               591-         -      1,176         -       591        1,176    1,767
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Fort Wayne, Indiana                         -     (i)       744          -      1,276         -       744        1,276    2,020
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Fort Worth, Texas                           -               640-       898          -         -       640          898    1,538
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Henderson, Kentucky                         -     (i)       377          -      1,117         -       377        1,117    1,494
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Jacksonville, Florida                       -               593-         -      1,184         -       593        1,184    1,777
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Jacksonville, Florida                       -               541-         -      1,174         -       541        1,174    1,715
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Jacksonville, Florida                       -               684-         -      1,259         -       684        1,259    1,943
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Lufkin, Texas                               -               479-         -        954         -       479          954    1,433
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Moberly, Missouri                           -               374-         -        838         -       374          838    1,213
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Omaha, Nebraska                             -               570-         -      1,272         -       570        1,272    1,842
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Orlando, Florida                            -                67-         -          -         -        67            -       67
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Palatka, Florida                            -               322-         -        987         -       322          987    1,310
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Pensacola, Florida                          -               658-         -      1,347         -       658        1,347    2,005
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Port Richey, Florida                        -               627-         -      1,131         -       627        1,131    1,758
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Rock Hill, South Carolina                   -     (i)       718          -      1,202         -       718        1,202    1,920
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Tampa, Florida                              -               826-         -      1,161         -       826        1,161    1,987
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Texarkana, Texas                            -               665-         -      1,080         -       665        1,080    1,745
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Tulsa , Oklahoma                            -     (i)       705          -      1,305         -       705        1,305    2,010
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Ground Round Restaurants:
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Allentown, Pennsylvania                     -     (i)       406        885          -         -       406          885    1,291
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Cincinnati, Ohio                            -     (i)       282        535          -         -       282          535      817
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Dubuque, Iowa                               -     (i)       694        810          -         -       694          810    1,504
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Ewing Township, New Jersey                  -     (i)       371        686          -         -       371          686    1,057
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Janesville, Wisconsin                       -     (i)       451        548          -         -       451          548      999
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Kalamazoo, Michigan                         -     (i)       287        712          -         -       287          712      999
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Parma, Ohio                                 -     (i)       389        793          -         -       389          793    1,182
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Reading, Pennsylvania                       -     (i)       729        793          -         -       729          793    1,522
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Waterloo, Iowa                              -     (i)       436        659          -         -       436          659    1,096
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Wauwatosa, Wisconsin                        -     (i)       628        804          -         -       628          804    1,432
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Guthrie's Restaurant:
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Hoover, Alabama                             -     (i)       494        620          -         -       494          620    1,113
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Houlihan's Restaurants:
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Bethel Park, Pennsylvania                   -               846-       596          -         -       846          596    1,442
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Langhorne, Pennsylvania                    (j)              817-       649          -         -       817          649    1,466
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Plymouth Meeting, Pennsylvania              -             1,181-       909          -         -     1,181          909    2,090
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International House Of Pancakes Restaurants:
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Auburn, Washington                          -     (i)       633      1,135          -         -       633        1,135    1,768
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Castle Rock, Colorado                       -     (i)       541          -      1,196         -       541        1,196    1,737
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Clarksville, Tennessee                      -     (i)       376        964          -         -       376          964    1,340
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Corpus Christi, Texas                       -     (i)       567          -          -         -       567            -      567
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Fort Worth, Texas                           -     (i)       501        746          -         -       501          746    1,248
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Fort Worth, Texas                           -     (i)       566        924          -         -       566          924    1,489
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Greeley, Colorado                           -     (i)       416          -        868         -       416          868    1,284
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Greenville, South Carolina                  -     (i)       477        962          -         -       477          962    1,438
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Hollywood, California                       -     (i)     1,407          -          -         -     1,407            -    1,407
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Homewood, Alabama                           -     (i)       545      1,030          -         -       545        1,030    1,575
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Houston, Texas                              -     (i)       645        790          -         -       645          790    1,436
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Kansas City, Missouri                       -     (i)       512        831          -         -       512          831    1,344
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Killeen, Texas                              -     (i)       381        776          -         -       381          776    1,156
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Lake Jackson, Texas                         -     (i)       460        744          -         -       460          744    1,204
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Leesburg, Virginia                          -     (i)       665        581          -         -       665          581    1,246
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Leon Valley, Texas                          -     (i)       594        918          -         -       594          918    1,512
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Loveland, Colorado                          -     (i)       488          -          -         -       488            -      488
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Murfreesboro, Tennessee                     -     (i)       647        871          -         -       647          871    1,519
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Phoenix, Arizona                            -     (i)       668        942          -         -       668          942    1,610
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Port Arthur, Texas                          -     (i)       383        958          -         -       383          958    1,341
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Poughkeepsie, New York                      -     (i)       505        807          -         -       505          807    1,311
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Pueblo, Colorado                            -     (i)       388        892          -         -       388          892    1,280
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Roseville, Michigan                         -     (i)       283        844          -         -       283          844    1,127
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Southaven, Mississippi                      -     (i)       579      1,176          -         -       579        1,176    1,756
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Stockbridge, Georgia                        -     (i)       766        653          -         -       766          653    1,418
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Victoria, Texas                             -     (i)       319          -          -         -       319            -      319
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J. Gilbert's Restaurant:
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McLean, Virginia                            -               945-       689          -         -       945          689    1,634
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Jack in the Box Restaurants:
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Allen, Texas                                -     (i)       712          -        726         -       712          726    1,438
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Avondale, Arizona                           -     (i)       605          -        623         -       605          623    1,228
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Bacliff, Texas                              -     (i)       419          -        698         -       419          698    1,117
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Carson, California                          -     (i)       458          -        709         -       458          709    1,166
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Chandler, Arizona                           -     (i)       481          -        637         -       481          637    1,118
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Chandler, Arizona                           -     (i)       605          -        601         -       605          601    1,205
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Channelview, Texas                          -               361-         -        712         -       361          712    1,073
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Corinth, Texas                              -     (i)       397          -        576         -       397          576      973
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Dallas, Texas                               -     (i)       370          -        468         -       370          468      838
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Enumclaw, Washington                        -     (i)       124        774          -         -       124          774      898
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Florissant, Missouri                        -     (i)       389          -        779         -       389          779    1,168
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Folsom, California                          -     (i)       635          -        652         -       635          652    1,288
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Fort Worth, Texas                           -     (i)       482        716          -         -       482          716    1,199
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Fresno, California                          -     (i)       287          -        607         -       287          607      893
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Georgetown, Texas                           -     (i)       500          -        866         -       500          866    1,366
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Granbury, Texas                             -     (i)       404          -        832         -       404          832    1,236
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Gun Barrel City, Texas                      -     (i)       284          -        549         -       284          549      834
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Hillsboro, Oregon                           -     (i)       700          -        865         -       700          865    1,565
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Hollister, California                       -     (i)       537          -        593         -       537          593    1,130
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Houston, Texas                              -     (i)       545          -        527         -       545          527    1,073
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Houston, Texas                              -     (i)       376          -        643         -       376          643    1,019
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Houston, Texas                              -               403-         -        611         -       403          611    1,014
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Houston, Texas                              -     (i)       370          -        548         -       370          548      918
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Houston, Texas                              -     (i)       421          -        543         -       421          543      964
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Humble, Texas                               -     (i)       438          -        592         -       438          592    1,030
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Hutchins, Texas                             -     (i)       273          -        654         -       273          654      927
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Irvine, California                          -     (i)       900          -        734         -       900          734    1,634
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Kent, Washington                            -     (i)       737          -        554         -       737          554    1,291
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Las Vegas, Nevada                           -     (i)       731          -        547         -       731          547    1,278
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--------------------------------------------------------------------------------------------------------------------------------
Los Angeles, California                     -     (i)       741          -        678         -       741          678    1,419
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Los Angeles, California                     -     (i)       912          -        531         -       912          531    1,443
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Los Angeles, California                     -     (i)       854          -        602         -       854          602    1,456
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lufkin, Texas                               -     (i)       418          -        651         -       418          651    1,069
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lufkin, Texas                               -     (i)       364          -        777         -       364          777    1,141
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Moscow, Idaho                               -     (i)       218          -        752         -       218          752      970
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Nacogdoches, Texas                          -     (i)       384          -        643         -       384          643    1,027
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ontario, California                         -     (i)       771          -        793         -       771          793    1,564
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orange, Texas                               -     (i)       388          -        788         -       388          788    1,175
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Oxnard, California                          -     (i)       682          -        643         -       682          643    1,325
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Palmdale, California                        -     (i)       631          -        568         -       631          568    1,199
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Peoria, Arizona                             -     (i)       497          -        722         -       497          722    1,218
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pflugerville, Texas                         -     (i)       717          -        658         -       717          658    1,375
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Louis, Missouri                       -     (i)       474          -        727         -       474          727    1,202
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Salem, Oregon                               -     (i)       501          -        699         -       501          699    1,200
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
San Antonio, Texas                          -     (i)       274          -        782         -       274          782    1,056
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
San Antonio, Texas                          -     (i)       311          -        701         -       311          701    1,012
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Spring, Texas                               -     (i)       476          -        719         -       476          719    1,195
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tacoma, Washington                          -     (i)       496          -        760         -       496          760    1,255
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tigard, Oregon                              -     (i)       353          -        905         -       353          905    1,258
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tyler, Texas                                -     (i)       289          -        700         -       289          700      989
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Waxahachie, Texas                           -     (i)       478          -        538         -       478          538    1,016
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Weatherford, Texas                          -     (i)       465          -        785         -       465          785    1,250
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
West Sacramento, California                 -     (i)       523          -        617         -       523          617    1,140
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Woodland, California                        -     (i)       358          -        668         -       358          668    1,027
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jack in the Box/Arco Gas Station-Convenience Stores:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Benicia, California                         -     (i)       746      1,552          -         -       746        1,552    2,297
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Coachella, California                       -     (i)       371      1,407          -         -       371        1,407    1,777
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Joe's Crab Shack Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lilburn, Georgia                            -     (i)     1,089        932          -         -     1,089          932    2,021
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jose Pepper's Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Blue Springs, Missouri                     (j)              251-       738          -         -       251          738      989
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
KFC Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Baton Rouge, Louisiana                      -               181-         -        463         -       181          463      645
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Orleans, Louisiana                      -               159-       492          -         -       159          492      651
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Orleans, Louisiana                      -               311-       533          -         -       311          533      843
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Orleans, Louisiana                      -               206-       564          -         -       206          564      770
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Orleans, Louisiana                      -               315-       542          -         -       315          542      857
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Putnam, Connecticut                         -               302-         -          -         -       302            -      302
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Krystal Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Brandon, Mississippi                        -     (i)       340        687          -         -       340          687    1,028
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Chattanooga, Tennessee                      -     (i)       445        595          -         -       445          595    1,040
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Greenville, Alabama                         -     (i)       190        614          -         -       190          614      804
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Montgomery, Alabama                         -     (i)       311        507          -         -       311          507      818
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Scottsboro, Alabama                         -     (i)       255        561          -         -       255          561      817
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Leeann Chin Chinese Cuisine Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Chanhassen, Minnesota                       -     (i)       377        640          -         -       377          640    1,017
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Golden Valley, Minnesota                    -     (i)       665          -        481         -       665          481    1,147
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Little Lake Bryan Land:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orlando, Florida                            -             6,288-         -          -         -     6,288            -    6,288
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orlando, Florida                            -               361-         -          -         -       361            -      361
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
McDonalds:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Palm Bay, Florida                           -               615-         -          -         -       615            -      615
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pizza Hut Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Adrian, Michigan                            -               242-         -          -         -       242            -      242
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Beaver, West Virginia                       -               212-         -          -         -       212            -      212
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Beckley, West Virginia                      -               209-         -          -         -       209            -      209
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bedford, Ohio                               -               175-         -          -         -       175            -      175
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bluefield, West Virginia                    -               120-         -          -         -       120            -      120
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bolivar, Ohio                               -               190-       410          -         -       190          410      600
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bowling Green, Ohio                         -               200-         -          -         -       200            -      200
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bowling Green, Ohio                        (j)              136-       192          -         -       136          192      327
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Carrollton, Ohio                            -               187-       533          -         -       187          533      721
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cleveland, Ohio                             -               226-         -          -         -       226            -      226
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cleveland, Ohio                             -               117-         -          -         -       117            -      117
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cleveland, Ohio                             -               126-         -          -         -       126            -      126
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cooper City, Florida                        -     (i)       268        128          -         -       268          128      396
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cross Lanes, West Virginia                  -               216-         -          -         -       216            -      216
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Defiance, Ohio                              -               242-         -          -         -       242            -      242
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
East Cleveland, Ohio                        -               194-         -          -         -       194            -      194
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Euclid, Ohio                                -               202-         -          -         -       202            -      202
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Huntington, West Virginia                   -               212-         -          -         -       212            -      212
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hurricane, West Virginia                    -               181-         -          -         -       181            -      181
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lambertville, Michigan                      -                99-         -          -         -        99            -       99
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Marathon, Florida                           -     (i)       161        235          -         -       161          235      396
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Marietta, Ohio                              -               169-         -          -         -       169            -      169
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mayfield Heights, Ohio                      -               203-         -          -         -       203            -      203
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Middleburg Heights, Ohio                    -               217-         -          -         -       217            -      217
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Millersburg, Ohio                           -               213-       635          -         -       213          635      848
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Milton, West Virginia                       -               100-         -          -         -       100            -      100
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Monroe, Michigan                            -               152-         -          -         -       152            -      152
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Philadelphia, Ohio                      -               224-       443          -         -       224          443      667
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
New Philadelphia, Ohio                      -               149-       388          -         -       149          388      538
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
North Olmsted, Ohio                         -               260-         -          -         -       260            -      260
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Norwalk, Ohio                               -               262-         -          -         -       262            -      262
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Rocky River, Ohio                           -               143-         -          -         -       143            -      143
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ronceverte, West Virginia                   -               100-         -          -         -       100            -      100
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Sandusky, Ohio                              -               260-         -          -         -       260            -      260
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Seven Hills, Ohio                           -               239-         -          -         -       239            -      239
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Steubenville, Ohio                          -               228-       475          -         -       228          475      704
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Strongsville, Ohio                          -               186-         -          -         -       186            -      186
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Toledo, Ohio                                -               197-         -          -         -       197            -      197
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Toledo, Ohio                                -               208-         -          -         -       208            -      208
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Toledo, Ohio                                -               176-         -          -         -       176            -      176
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Toledo, Ohio                                -               129-         -          -         -       129            -      129
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Uhrichsville, Ohio                          -               280-       563          -         -       280          563      842
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Weirton, West Virginia                     (j)                --       178          -         -    (h)             178      178
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Wellsburg, West Virginia                    -               167-       168          -         -       167          168      336
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pollo Tropical Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Coral Springs, Florida                      -     (i)       853      1,108          -         -       853        1,108    1,961
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Davie, Florida                              -     (i)       713        873          -         -       713          873    1,586
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fort Lauderdale, Florida                    -     (i)       398        924          -         -       398          924    1,322
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lake Worth, Florida                         -     (i)       435        915          -         -       435          915    1,351
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Miami, Florida                              -     (i)       655      1,196          -         -       655        1,196    1,851
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Miami, Florida                              -     (i)       911      1,012          -         -       911        1,012    1,923
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Miami, Florida                              -     (i)     1,245        918          -         -     1,245          918    2,163
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
North Miami, Florida                        -     (i)       918        764          -         -       918          764    1,682
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ponderosa Restuarants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Appleton, Wisconsin                         -               181-       562          -         -       181          562      743
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Blue Springs, Missouri                      -     (i)       692          -      1,137         -       692        1,137    1,829
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Eureka, Missouri                            -               380-       604          -         -       380          604      984
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Indiana, Pennsylvania                       -               715-         -      1,317         -       715        1,317    2,032
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Johnstown, Pennsylvania                     -     (i)       599          -      1,160         -       599        1,160    1,759
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Kissimmee, Florida                          -               638-       824          -         -       638          824    1,462
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Massena, New York                           -               130-       659          -         -       130          659      789
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Middletown, New York                        -               214-       854          -         -       214          854    1,068
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Oneonta, New York                           -               367-       524          -         -       367          524      891
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Popeye's Famous Fried Chicken Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Thomasville, Georgia                        -     (i)       114        407          -         -       114          407      521
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Valdosta, Georgia                           -     (i)       159        378          -         -       159          378      537
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Red Robin Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Columbus, Ohio                              -               722-         -      1,366         -       722        1,366    2,088
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Roadhouse Grill Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Brandon, Florida                            -     (i)       914          -        691         -       914          691    1,605
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Centerville, Ohio                          (j)            1,228-         -        762         -     1,228          762    1,990
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Clearwater, Florida                         -     (i)     1,370          -        947         -     1,370          947    2,317
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fairfield, Ohio                             -     (i)     1,152          -        910         -     1,152          910    2,062
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Grove City, Ohio                            -               650-         -        978         -       650          978    1,628
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida                       -     (i)       394          -      1,443         -       394        1,443    1,837
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida                       -             1,314-         -        888         -     1,314          888    2,201
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Rock Hill, South Carolina                  (j)              609-         -        904         -       609          904    1,513
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Union Township, Ohio                        -               704-         -      1,054         -       704        1,054    1,757
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Rubio's Baja Grill Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Taylorsville, Utah                          -     (i)       890          -        487         -       890          487    1,377
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
Ruby Tuesday's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bartow, Florida                             -     (i)       416          -        963         -       416          963    1,380
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Champlin, Minnesota                         -     (i)       506          -          -         -       506            -      506
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Colorado Springs, Colorado                  -     (i)       696          -      1,006         -       696        1,006    1,702
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Coral Springs, Florida                      -     (i)       715          -      1,013         -       715        1,013    1,728
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Dillon, Colorado                            -     (i)       557          -      1,133         -       557        1,133    1,690
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Draper, Utah                                -     (i)       519          -          -         -       519            -      519
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Independence, Missouri                      -               981-         -          -         -       981            -      981
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Kansas City, Missouri                       -               633-         -          -         -       633            -      633
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lakeland, Florida                           -     (i)       574        743          -         -       574          743    1,317
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lakewood, Washington                        -               431-         -          -         -       431            -      431
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
London, Kentucky                            -     (i)       354          -          -         -       354            -      354
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orange City, Florida                        -     (i)       720          -          -         -       720            -      720
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Somerset, Kentucky                          -     (i)       546          -        869         -       546          869    1,414
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Vero Beach, Florida                         -     (i)       537          -      1,268         -       537        1,268    1,804
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ruth's Chris Steak House Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
King of Prussia, Pennsylvania               -     (i)       965        550          -         -       965          550    1,515
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tampa, Florida                              -     (i)     1,076      1,063          -         -     1,076        1,063    2,139
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ryan's Family Steak House Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Spring Hill, Florida                        -     (i)       591          -      1,175         -       591        1,175    1,767
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Louis Bread Company Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Florissant, Missouri                        -     (i)       706          -        627         -       706          627    1,332
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Shoney's Restaurant
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Debary, Florida                            (j)              900-         -          -         -       900            -      900
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Smokey Bones
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Morrow, Georgia                            (j)    (i)       935      1,843          -         -       935        1,843    2,778
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
Sonny's Real Pit Bar-B-Q Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Athens, Georgia                             -     (i)       629        963          -         -       629          963    1,591
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Conyers, Georgia                            -               371-       593          -         -       371          593      964
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Doraville, Georgia                          -     (i)       585        813          -         -       585          813    1,398
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Marietta, Georgia                           -     (i)       528        871          -         -       528          871    1,398
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Norcross, Georgia                           -     (i)       734        961          -         -       734          961    1,695
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Smyrna, Georgia                             -     (i)       634        643          -         -       634          643    1,278
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Thomasville, Georgia                        -     (i)       263          -          -         -       263            -      263
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Venice, Florida                             -               499-       960          -         -       499          960    1,458
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Sprint PCS Retail Store:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Joseph, Missouri                     (j)              379-         -        388         -       379          388      767
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Steak & Ale Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Altamonte Springs, Florida                  -     (i)     1,006        691          -         -     1,006          691    1,697
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Birmingham, Alabama                         -               715-         -          -         -       715            -      715
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
College Park, Georgia                       -     (i)       802          -          -         -       802            -      802
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Conroe, Texas                               -     (i)       591          -          -         -       591            -      591
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Greenville, South Carolina                  -     (i)       671          -          -         -       671            -      671
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                              -     (i)       964          -          -         -       964            -      964
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                              -     (i)       777          -          -         -       777            -      777
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Huntsville, Alabama                         -     (i)       641          -          -         -       641            -      641
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida                       -               670-         -          -         -       670            -      670
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Maitland, Florida                           -     (i)       684          -          -         -       684            -      684
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Memphis, Tennessee                          -     (i)       810        798          -         -       810          798    1,609
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mesquite, Texas                             -     (i)       592          -          -         -       592            -      592
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Miami, Florida                              -     (i)       594          -          -         -       594            -      594
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Middletown, New Jersey                      -     (i)       934        763          -         -       934          763    1,697
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Norcross, Georgia                           -     (i)       740          -          -         -       740            -      740
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orlando, Florida                            -     (i)       923        725          -         -       923          725    1,648
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pensacola, Florida                          -     (i)       354          -          -         -       354            -      354
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tulsa, Oklahoma                             -     (i)       434          -          -         -       434            -      434
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Super Smokers BBQ Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Peters, Missouri                      -               377-       692          -         -       377          692    1,069
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Taco Bell Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Colonial Heights, Virginia                  -     (i)       447        384          -         -       447          384      831
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hayes, Virginia                             -     (i)       300          -          -         -       300            -      300
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Livingston, Tennessee                       -     (i)       212          -          -         -       212            -      212
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Richmond, Virginia                          -     (i)       403          -          -         -       403            -      403
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Richmond, Virginia                          -     (i)       405        451          -         -       405          451      856
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Richmond, Virginia                          -     (i)       475        479          -         -       475          479      954
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Louis, Missouri                       -     (i)       350          -          -         -       350            -      350
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Louis, Missouri                       -     (i)       309        351          -         -       309          351      660
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Wentzville, Missouri                        -     (i)       339          -        491         -       339          491      830
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Williamsburg, Virginia                      -     (i)       344          -          -         -       344            -      344
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
Taco Bell/Pizza Hut Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arlington, Texas                            -               277-         -        550         -       277          550      827
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Dallas, Texas                               -     (i)       335        695          -         -       335          695    1,030
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Dallas, Texas                               -               356-         -        497         -       356          497      853
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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Texas Roadhouse Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ammon, Idaho                                -     (i)       506          -        806         -       506          806    1,312
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arvada, Colorado                            -     (i)       538          -      1,149         -       538        1,149    1,687
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Aurora, Colorado                            -     (i)       657          -      1,209         -       657        1,209    1,866
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Cedar Rapids, Iowa                          -               582-         -      1,085         -       582        1,085    1,667
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
College Station, Texas                      -     (i)       520          -      1,074         -       520        1,074    1,594
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Concord, North Carolina                     -     (i)       664          -        987         -       664          987    1,651
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Dickson City, Pennsylvania                  -     (i)       596          -      1,079         -       596        1,079    1,675
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Gastonia, North Carolina                    -     (i)       235          -      1,116         -       235        1,116    1,351
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hickory, North Carolina                     -     (i)       560          -      1,032         -       560        1,032    1,593
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Shively, Kentucky                           -     (i)       714        996          -         -       714          996    1,709
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
TGI Friday's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Goodyear, Arizona                           -     (i)       967          -      1,727         -       967        1,727    2,694
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Henderson, Nevada                           -     (i)     1,385          -          -         -     1,385            -    1,385
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Independence, Missouri                      -     (i)       856          -          -         -       856            -      856
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Leawood, Kansas                             -     (i)     2,459          -          -         -     2,459            -    2,459
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mesa, Arizona                               -     (i)       914          -          -         -       914            -      914
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Shawnee, Kansas                             -     (i)       885          -          -         -       885            -      885
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Temecula, California                        -     (i)     1,240          -          -         -     1,240            -    1,240
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Union City, California                      -     (i)     1,213          -          -         -     1,213            -    1,213
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
Tin Alley Grill Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Crystal, Minnesota                          -     (i)       371        432          -         -       371          432      802
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Gloucester, New Jersey                      -     (i)       422        529          -         -       422          529      951
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TropiGrill Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Altamonte Springs, Florida                  -     (i)       549        701          -         -       549          701    1,250
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orlando, Florida                            -     (i)       618        631          -         -       618          631    1,250
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
Village Inn Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Omaha, Nebraska                             -     (i)       512        756          -         -       512          756    1,268
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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--------------------------------------------------------------------------------------------------------------------------------
Wendy's Old Fashioned Hamburgers Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Atascadero, California                      -     (i)       486          -        706         -       486          706    1,192
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Camarillo, California                       -     (i)       640          -        689         -       640          689    1,329
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Knoxville, Tennessee                        -     (i)       358          -        445         -       358          445      803
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Knoxville, Tennessee                        -     (i)       556          -        442         -       556          442      998
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Paso Robles, California                     -     (i)       489          -        736         -       489          736    1,225
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Westlake Village, California                -     (i)       841          -        699         -       841          699    1,540
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
     TOTAL:                                             282,205    174,608    148,783             282,205      323,391  605,596
--------------------------------------------------------===================-====================-===============================
--------------------------------------------------------===================-====================-===============================

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--------------------------------------------------------------------------------------------------------------------------------
Property of Joint Venture in Which
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
the Company has a 59.22% Interest
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
and has Invested in Under
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
an Operating Lease:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bennigan's Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orlando, Florida                            -               708-         -      1,008         -       708        1,008    1,716
--------------------------------------------------------========------------==========-----------===============================
--------------------------------------------------------========------------==========-----------===============================

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--------------------------------------------------------------------------------------------------------------------------------
Properties the Company
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
has invested in Under
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Direct Financing Leases:
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--------------------------------------------------------------------------------------------------------------------------------

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Applebee's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Freeport, Illinois                                (i)-      198      1,009          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Rockford, Illinois                                (i)-        -      1,096          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tullahoma, Tennessee                              (i)-      324      1,009          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Arby's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Allen, Texas                                      (i)-        -          -        609         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Grand Rapids, Michigan                            (i)-        -        938          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Huntsville, Alabama                                  -        --         -        596         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Newark, Ohio                                         -        --         -        340         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
The Colony, Texas                                 (i)-        -          -        593         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bennigan's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Bedford, Texas                                    (i)-        -        955          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Clearwater, Florida                               (i)-        -      1,043          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Colorado Springs, Colorado                        (i)-        -        903          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Englewood, Colorado                               (i)-        -      1,131          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Florham Park, New Jersey                          (i)-        -      1,092          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                                    (i)-        -        985          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida                             (i)-        -      1,061          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida                             (i)-        -        819          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
North Richland Hills, Texas                       (i)-        -        983          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Oklahoma City, Oklahoma                              -        --     1,015          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pensacola, Florida                                (i)-        -        980          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Louis Park, Minnesota                       (i)-        -      1,280          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tampa, Florida                                       -        --     1,325          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Winston-Salem, North Carolina                     (i)-      248        993          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Woodridge, Illinois                               (i)-        -        992          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Black-eyed Pea Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Dallas, Texas                                        -        --       686          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fort Worth, Texas                                    -        --       655          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hendersonville, Tennessee                            -        --       735          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hillsboro, Texas                                     -        --         -        716         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Burger King Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Port Angeles, Washington                             -        --       696          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Chevys Fresh Mex Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Annapolis, Maryland                                  -        --         -      1,540         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Clay Pit
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Addison, Texas                                       -        --       568          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Denny's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Akron, Ohio                                       (i)-      137        938          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Duncan, South Carolina                            (i)-        -        827          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Landrum, South Carolina                           (i)-        -        493          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mooresville, North Carolina                       (i)-        -        737          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Topeka, Kansas                                    (i)-        -        700          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Winter Springs, Florida                           (i)-        -          -        887         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fresh Choice
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Dallas, Texas                                        -        --       382          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
International House Of Pancakes Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Alexandria, Virginia                              (i)-        -        853          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Anderson, South Carolina                          (i)-        -        957          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Blue Bell, Pennsylvania                           (i)-        -        830          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Chesapeake, Virginia                              (i)-        -      1,059          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Christiansburg, Virginia                          (i)-        -        918          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Corpus Christi, Texas                             (i)-        -        864          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Crestwood, Illinois                               (i)-        -        935          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Flagstaff, Arizona                                (i)-      294      1,121          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fredericksburg, Virginia                          (i)-        -        973          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hickory, North Carolina                           (i)-        -      1,202          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hollywood, California                             (i)-        -        995          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                                    (i)-        -      1,017          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                                    (i)-        -        765          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Loveland, Colorado                                (i)-        -        964          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Maryville, Tennessee                              (i)-      244        963          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Montgomery, Alabama                               (i)-        -        843          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pittsburg, California                             (i)-        -      1,014          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Plano, Texas                                      (i)-        -        982          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Salem, New Hampshire                              (i)-        -        779          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
San Antonio, Texas                                (i)-        -      1,081          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tuscaloosa, Alabama                               (i)-        -        931          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Victoria, Texas                                   (i)-        -        814          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Virginia Beach, Virginia                          (i)-        -      1,014          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Warner Robins, Georgia                            (i)-        -        833          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
KFC Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Baton Rouge, Louisiana                               -       85-       609          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Port Allen, Louisiana                             (i)-        -        953          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Putnam, Connecticut                                  -        --       531          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
NI's International Buffet Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Eastlake, Ohio                                       -      256-     1,473          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Popeye's Famous Fried Chicken Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Starke, Florida                                   (i)-      209        427          -         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Ruby Tuesday's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Champlin, Minnesota                               (i)-        -          -      1,152         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Draper, Utah                                      (i)-        -          -      1,036         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Independence, Missouri                               -        --         -        554         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Kansas City, Missouri                                -        --         -      1,115         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Lakewood, Washington                                 -        --         -      1,127         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
London, Kentucky                                  (i)-        -          -        845         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Louisville, Kentucky                              (i)-        -          -      1,052         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Orange City, Florida                              (i)-        -          -      1,047         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Puyallup, Washington                                 -        --         -        934         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint George, Utah                                   -        --         -        896         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Sebring, Florida                                  (i)-      231          -        776         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Sonny's Real Pit Bar-B-Q Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Thomasville, Georgia                              (i)-        -          -        989         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Steak & Ale Restaurants:                             -        --       682          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
College Park, Georgia                             (i)-        -        910          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Conroe, Texas                                     (i)-        -      1,033          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Greenville, South Carolina                        (i)-        -      1,180          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                                    (i)-        -        979          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Houston, Texas                                    (i)-        -      1,093          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Huntsville, Alabama                               (i)-        -        810          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida                                -        --       879          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Maitland, Florida                                 (i)-        -        792          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mesquite, Texas                                   (i)-        -        908          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Miami, Florida                                    (i)-        -      1,177          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Norcross, Georgia                                 (i)-        -        967          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Pensacola, Florida                                (i)-        -        826          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Tulsa, Oklahoma                                   (i)-        -      1,068          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Taco Bell Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Hayes, Virginia                                   (i)-        -        443          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Livingston, Tennessee                             (i)-        -          -        436         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Richmond, Virginia                                (i)-        -        575          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Saint Louis, Missouri                             (i)-        -        472          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Williamsburg, Virginia                            (i)-        -        438          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Texas Roadhouse Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Fayetteville, North Carolina                         -        --       944          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
TGI Friday's Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Henderson, Nevada                                 (i)-        -          -      1,974         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Independence, Missouri                            (i)-        -          -      1,665         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Leawood, Kansas                                   (i)-        -          -      1,430         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Mesa, Arizona                                     (i)-        -          -      1,440         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Shawnee, Kansas                                   (i)-        -          -      1,749         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Temecula, California                              (i)-        -          -      1,477         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Union City, California                            (i)-        -          -      1,985         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
TGI Friday's/Redfish Looziana Roadhouse Restaurant:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
San Diego, California                             (i)-    2,400          -      3,646         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Wendy's Old Fashioned Hamburgers Restaurants:
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Carmel Mountain, California                       (i)-        -        595          -         -    (h)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Knoxville, Tennessee                              (i)-        -          -        464         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
San Diego, California                             (i)-        -          -        590         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Santa Maria, California                           (i)-        -          -        700         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Sevierville, Tennessee                            (i)-        -          -        532         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Seymour, Tennessee                                (i)-        -          -        473         -    (e)        (e)        (e)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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

--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
     TOTAL:                                               4,626     70,500     35,364
--------------------------------------------------------===================-====================--------------------------------
--------------------------------------------------------===================-====================--------------------------------

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

<page>


----------------------------------------
                            Depreciation in
----------------------------------------
----------------------------------------
             Date           Latest Income
----------------------------------------
----------------------------------------
Accumulated  of Con-    Date   Statement is
----------------------------------------
----------------------------------------
Depreciation struction Acquired Computed
----------------------------------------
----------------------------------------

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

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

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

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

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

----------------------------------------
----------------------------------------
        137  1991    8/98       (c)
----------------------------------------
----------------------------------------
        175  1995    8/98       (c)
----------------------------------------
----------------------------------------
        167  1996    8/98       (c)
----------------------------------------
----------------------------------------
        179  1993    8/98       (c)
----------------------------------------
----------------------------------------
        173  1994    8/98       (c)
----------------------------------------
----------------------------------------
        148  1992    8/98       (c)
----------------------------------------
----------------------------------------
        168  1997    8/98       (c)
----------------------------------------
----------------------------------------
        165  1998    8/98       (c)
----------------------------------------
----------------------------------------
        149  1995    8/98       (c)
----------------------------------------
----------------------------------------
        153  1997    12/96      (c)
----------------------------------------
----------------------------------------
         63  1999    8/99       (c)
----------------------------------------
----------------------------------------
         (d) 1996    1/99       (d)
----------------------------------------
----------------------------------------
        162  1999    10/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         (d) 1999    12/99      (d)
----------------------------------------
----------------------------------------
         84  1988    5/98       (c)
----------------------------------------
----------------------------------------
         91  1998    8/98       (c)
----------------------------------------
----------------------------------------
         65  1995    1/99       (c)
----------------------------------------
----------------------------------------
        121  1996    9/96       (c)
----------------------------------------
----------------------------------------
         47  1995    1/99       (c)
----------------------------------------
----------------------------------------
         48  1994    1/99       (c)
----------------------------------------
----------------------------------------
         42  1984    1/99       (c)
----------------------------------------
----------------------------------------
        102  1998    12/98      (c)
----------------------------------------
----------------------------------------
         83  1998    7/98       (c)
----------------------------------------
----------------------------------------
         97  1999    12/98      (c)
----------------------------------------
----------------------------------------
         72  1999    12/99      (c)
----------------------------------------
----------------------------------------
         81  2000    1/00       (c)
----------------------------------------
----------------------------------------
         (d) 1995    8/95       (d)
----------------------------------------
----------------------------------------
         86  1990    8/97       (c)
----------------------------------------
----------------------------------------
        105  1995    8/97       (c)
----------------------------------------
----------------------------------------
         56  1993    1/99       (c)
----------------------------------------
----------------------------------------
         94  2000    12/99      (c)
----------------------------------------
----------------------------------------
        115  1995    8/97       (c)
----------------------------------------
----------------------------------------
         88  1994    8/97       (c)
----------------------------------------
----------------------------------------
        104  1995    8/97       (c)
----------------------------------------
----------------------------------------
         51  1990    1/99       (c)
----------------------------------------
----------------------------------------
        100  1992    7/97       (c)
----------------------------------------
----------------------------------------
         92  1999    7/99       (c)
----------------------------------------
----------------------------------------
         45  1992    1/99       (c)
----------------------------------------
----------------------------------------
         84  1998    5/98       (c)
----------------------------------------
----------------------------------------
         52  1991    1/99       (c)
----------------------------------------
----------------------------------------
        109  1998    1/99       (c)
----------------------------------------
----------------------------------------
         61  1992    1/99       (c)
----------------------------------------
----------------------------------------
         (d) 1999    12/99      (d)
----------------------------------------
----------------------------------------
        106  1999    3/99       (c)
----------------------------------------
----------------------------------------
         99  1999    9/99       (c)
----------------------------------------
----------------------------------------
         49  1998    12/98      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         99  1978    10/99      (c)
----------------------------------------
----------------------------------------
        142  1987    10/99      (c)
----------------------------------------
----------------------------------------
        116  1979    10/99      (c)
----------------------------------------
----------------------------------------
        154  1991    10/99      (c)
----------------------------------------
----------------------------------------
         64  1980    10/99      (c)
----------------------------------------
----------------------------------------
         89  1978    10/99      (c)
----------------------------------------
----------------------------------------
         87  1978    10/99      (c)
----------------------------------------
----------------------------------------
         88  1977    10/99      (c)
----------------------------------------
----------------------------------------
        119  1977    10/99      (c)
----------------------------------------
----------------------------------------
        156  1992    10/99      (c)
----------------------------------------
----------------------------------------
        116  1970    10/99      (c)
----------------------------------------
----------------------------------------
        161  1978    10/99      (c)
----------------------------------------
----------------------------------------
         77  1999    10/99      (c)
----------------------------------------
----------------------------------------
        100  1977    10/99      (c)
----------------------------------------
----------------------------------------
         86  1977    10/99      (c)
----------------------------------------
----------------------------------------
         81  1980    10/99      (c)
----------------------------------------
----------------------------------------
         98  1977    10/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        116  1999    6/99       (c)
----------------------------------------
----------------------------------------
        123  1987    3/99       (c)
----------------------------------------
----------------------------------------
         83  1985    1/99       (c)
----------------------------------------
----------------------------------------
        121  1999    8/99       (c)
----------------------------------------
----------------------------------------
        159  1986    3/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        293  1997    4/97       (c)
----------------------------------------
----------------------------------------
         (d) 1986    6/98       (d)
----------------------------------------
----------------------------------------
         97  2000    5/00       (c)
----------------------------------------
----------------------------------------
         (d) 1979    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1979    6/98       (d)
----------------------------------------
----------------------------------------
         97  2000    5/00       (c)
----------------------------------------
----------------------------------------
         (d) 1984    6/98       (d)
----------------------------------------
----------------------------------------
        166  1982    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1983    6/98       (d)
----------------------------------------
----------------------------------------
        189  2000    11/00      (c)
----------------------------------------
----------------------------------------
        207  1999    11/99      (c)
----------------------------------------
----------------------------------------
         (d) 1979    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1981    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1983    6/98       (d)
----------------------------------------
----------------------------------------
        179  1999    6/00       (c)
----------------------------------------
----------------------------------------
        190  1982    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1979    6/98       (d)
----------------------------------------
----------------------------------------
        152  1998    12/98      (c)
----------------------------------------
----------------------------------------
         (d) 1986    6/98       (d)
----------------------------------------
----------------------------------------
        162  1978    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1983    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1976    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1980    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1987    12/98      (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        181  1999    9/99       (c)
----------------------------------------
----------------------------------------
        132  1999    11/99      (c)
----------------------------------------
----------------------------------------
        157  1998    4/99       (c)
----------------------------------------
----------------------------------------
        172  1999    9/99       (c)
----------------------------------------
----------------------------------------
         (d) 1996    10/97      (d)
----------------------------------------
----------------------------------------
        173  1999    10/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        114  1997    4/97       (c)
----------------------------------------
----------------------------------------
         45  1995    9/02       (c)
----------------------------------------
----------------------------------------
         27  1995    9/02       (c)
----------------------------------------
----------------------------------------
        119  1997    5/98       (c)
----------------------------------------
----------------------------------------
        142  1997    8/97       (c)
----------------------------------------
----------------------------------------
         80  1997    4/98       (c)
----------------------------------------
----------------------------------------
        137  1997    9/97       (c)
----------------------------------------
----------------------------------------
         50  1995    9/02       (c)
----------------------------------------
----------------------------------------
        119  1997    10/97      (c)
----------------------------------------
----------------------------------------
        105  1997    10/97      (c)
----------------------------------------
----------------------------------------
         24  1996    9/02       (c)
----------------------------------------
----------------------------------------
        168  1997    7/97       (c)
----------------------------------------
----------------------------------------
        117  1994    4/98       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         75  1996    8/96       (c)
----------------------------------------
----------------------------------------
        127  1999    4/99       (c)
----------------------------------------
----------------------------------------
         72  1997    5/97       (c)
----------------------------------------
----------------------------------------
         39  1997    5/97       (c)
----------------------------------------
----------------------------------------
         97  1996    2/97       (c)
----------------------------------------
----------------------------------------
         10  1999    2/00       (c)
----------------------------------------
----------------------------------------
        195  1991    3/99       (c)
----------------------------------------
----------------------------------------
        158  1996    8/96       (c)
----------------------------------------
----------------------------------------
        159  1970    12/96      (c)
----------------------------------------
----------------------------------------
         22  1993    1/99       (c)
----------------------------------------
----------------------------------------
        170  1988    3/99       (c)
----------------------------------------
----------------------------------------
         95  1988    1/99       (c)
----------------------------------------
----------------------------------------
         73  1971    3/99       (c)
----------------------------------------
----------------------------------------
        115  1973    3/99       (c)
----------------------------------------
----------------------------------------
        101  1996    9/96       (c)
----------------------------------------
----------------------------------------
         21  1996    1/99       (c)
----------------------------------------
----------------------------------------
         90  1997    7/97       (c)
----------------------------------------
----------------------------------------
        153  1974    3/99       (c)
----------------------------------------
----------------------------------------
         (d) 2001    10/01      (d)
----------------------------------------
----------------------------------------
        133  1995    1/99       (c)
----------------------------------------
----------------------------------------
         74  1998    2/01       (c)
----------------------------------------
----------------------------------------
        131  1987    3/99       (c)
----------------------------------------
----------------------------------------
        105  1999    4/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        254  1999    4/99       (c)
----------------------------------------
----------------------------------------
         (d) 1999    12/99      (d)
----------------------------------------
----------------------------------------
        341  1994    12/97      (c)
----------------------------------------
----------------------------------------
        263  1999    4/99       (c)
----------------------------------------
----------------------------------------
        341  1995    12/97      (c)
----------------------------------------
----------------------------------------
        206  1999    4/99       (c)
----------------------------------------
----------------------------------------
        218  1999    4/99       (c)
----------------------------------------
----------------------------------------
        171  1999    4/99       (c)
----------------------------------------
----------------------------------------
        299  1994    12/97      (c)
----------------------------------------
----------------------------------------
        228  1999    4/99       (c)
----------------------------------------
----------------------------------------
        242  1999    4/99       (c)
----------------------------------------
----------------------------------------
        318  1999    4/99       (c)
----------------------------------------
----------------------------------------
        305  1995    12/97      (c)
----------------------------------------
----------------------------------------
        195  1997    12/98      (c)
----------------------------------------
----------------------------------------
        143  1999    4/99       (c)
----------------------------------------
----------------------------------------
        258  1990    5/98       (c)
----------------------------------------
----------------------------------------
        424  1999    4/99       (c)
----------------------------------------
----------------------------------------
        241  1999    4/99       (c)
----------------------------------------
----------------------------------------
        244  1999    4/99       (c)
----------------------------------------
----------------------------------------
        217  1999    4/99       (c)
----------------------------------------
----------------------------------------
        258  1999    4/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         84  1996    10/96      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         52  1996    7/96       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         57  1989    3/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         56  1983    6/97       (c)
----------------------------------------
----------------------------------------
         41  1984    6/97       (c)
----------------------------------------
----------------------------------------
        171  1983    6/97       (c)
----------------------------------------
----------------------------------------
         49  1980    6/97       (c)
----------------------------------------
----------------------------------------
         (d) 1982    6/97       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         81  1999    10/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         (d) 1992    3/99       (d)
----------------------------------------
----------------------------------------
         91  1992    3/99       (c)
----------------------------------------
----------------------------------------
         73  1985    3/99       (c)
----------------------------------------
----------------------------------------
        106  1985    3/99       (c)
----------------------------------------
----------------------------------------
        125  1997    6/99       (c)
----------------------------------------
----------------------------------------
         (d) 1992    3/99       (d)
----------------------------------------
----------------------------------------
         93  1979    5/99       (c)
----------------------------------------
----------------------------------------
        147  1981    5/99       (c)
----------------------------------------
----------------------------------------
         (d) 1992    3/99       (d)
----------------------------------------
----------------------------------------
        111  1979    5/99       (c)
----------------------------------------
----------------------------------------
        141  1981    9/95       (c)
----------------------------------------
----------------------------------------
        150  1999    5/99       (c)
----------------------------------------
----------------------------------------
         (d) 1989    3/99       (d)
----------------------------------------
----------------------------------------
         (d) 1994    3/99       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         39  1997    7/97       (c)
----------------------------------------
----------------------------------------
         (d) 1997    7/97       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         41  1999    2/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        163  1999    4/99       (c)
----------------------------------------
----------------------------------------
        206  1998    9/98       (c)
----------------------------------------
----------------------------------------
        179  1995    9/95       (c)
----------------------------------------
----------------------------------------
        180  1995    10/95      (c)
----------------------------------------
----------------------------------------
        147  1997    7/98       (c)
----------------------------------------
----------------------------------------
        168  1999    1/99       (c)
----------------------------------------
----------------------------------------
        298  1995    11/95      (c)
----------------------------------------
----------------------------------------
        161  1999    7/99       (c)
----------------------------------------
----------------------------------------
        197  1997    9/97       (c)
----------------------------------------
----------------------------------------
        179  1998    8/98       (c)
----------------------------------------
----------------------------------------
        211  1998    4/99       (c)
----------------------------------------
----------------------------------------
        263  1995    12/95      (c)
----------------------------------------
----------------------------------------
        191  1998    8/98       (c)
----------------------------------------
----------------------------------------
        209  1997    11/97      (c)
----------------------------------------
----------------------------------------
        166  1999    7/99       (c)
----------------------------------------
----------------------------------------
        194  1999    12/99      (c)
----------------------------------------
----------------------------------------
        146  1999    12/99      (c)
----------------------------------------
----------------------------------------
        191  1999    1/99       (c)
----------------------------------------
----------------------------------------
        235  1997    1/98       (c)
----------------------------------------
----------------------------------------
        175  1999    12/99      (c)
----------------------------------------
----------------------------------------
        252  1995    8/95       (c)
----------------------------------------
----------------------------------------
        172  1999    4/99       (c)
----------------------------------------
----------------------------------------
        250  1997    9/97       (c)
----------------------------------------
----------------------------------------
        248  1997    9/97       (c)
----------------------------------------
----------------------------------------
        173  1999    12/99      (c)
----------------------------------------
----------------------------------------
        225  1997    1/97       (c)
----------------------------------------
----------------------------------------
        186  1997    5/97       (c)
----------------------------------------
----------------------------------------
        209  1998    12/98      (c)
----------------------------------------
----------------------------------------
         (d) 2001    5/00       (d)
----------------------------------------
----------------------------------------
        201  1997    12/97      (c)
----------------------------------------
----------------------------------------
        222  1999    3/99       (c)
----------------------------------------
----------------------------------------
        278  1996    9/96       (c)
----------------------------------------
----------------------------------------
        170  1999    10/99      (c)
----------------------------------------
----------------------------------------
        306  1995    2/96       (c)
----------------------------------------
----------------------------------------
        127  2000    7/00       (c)
----------------------------------------
----------------------------------------
        185  1999    9/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        184  1983    10/97      (c)
----------------------------------------
----------------------------------------
        111  1981    10/97      (c)
----------------------------------------
----------------------------------------
        169  1982    10/97      (c)
----------------------------------------
----------------------------------------
        141  1979    11/97      (c)
----------------------------------------
----------------------------------------
        114  1982    10/97      (c)
----------------------------------------
----------------------------------------
        148  1980    10/97      (c)
----------------------------------------
----------------------------------------
        165  1977    10/97      (c)
----------------------------------------
----------------------------------------
        165  1982    10/97      (c)
----------------------------------------
----------------------------------------
        137  1982    10/97      (c)
----------------------------------------
----------------------------------------
        167  1977    10/97      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        131  1997    9/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        131  1972    6/97       (c)
----------------------------------------
----------------------------------------
        115  1976    6/97       (c)
----------------------------------------
----------------------------------------
        199  1974    6/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        174  1997    4/99       (c)
----------------------------------------
----------------------------------------
        163  1999    10/99      (c)
----------------------------------------
----------------------------------------
        162  1997    12/98      (c)
----------------------------------------
----------------------------------------
         (d) 1997    8/99       (d)
----------------------------------------
----------------------------------------
        137  1997    9/98       (c)
----------------------------------------
----------------------------------------
        144  1998    4/99       (c)
----------------------------------------
----------------------------------------
        146  1998    12/98      (c)
----------------------------------------
----------------------------------------
        158  1998    12/98      (c)
----------------------------------------
----------------------------------------
         (d) 1996    6/97       (d)
----------------------------------------
----------------------------------------
        173  1996    12/98      (c)
----------------------------------------
----------------------------------------
        110  1996    7/97       (c)
----------------------------------------
----------------------------------------
        146  1998    9/98       (c)
----------------------------------------
----------------------------------------
        136  1997    9/98       (c)
----------------------------------------
----------------------------------------
        104  1997    8/97       (c)
----------------------------------------
----------------------------------------
        129  1994    5/97       (c)
----------------------------------------
----------------------------------------
        151  1997    12/98      (c)
----------------------------------------
----------------------------------------
         (d) 1997    8/97       (d)
----------------------------------------
----------------------------------------
        146  1998    12/98      (c)
----------------------------------------
----------------------------------------
        147  1998    4/99       (c)
----------------------------------------
----------------------------------------
        157  1997    12/98      (c)
----------------------------------------
----------------------------------------
        147  1996    7/98       (c)
----------------------------------------
----------------------------------------
        150  1997    12/98      (c)
----------------------------------------
----------------------------------------
        141  1997    12/98      (c)
----------------------------------------
----------------------------------------
        193  1997    12/98      (c)
----------------------------------------
----------------------------------------
         91  1997    7/97       (c)
----------------------------------------
----------------------------------------
         (d) 1997    8/97       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        151  1971    6/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        117  1999    3/99       (c)
----------------------------------------
----------------------------------------
         87  1998    8/98       (c)
----------------------------------------
----------------------------------------
        149  1997    8/97       (c)
----------------------------------------
----------------------------------------
         97  1999    10/99      (c)
----------------------------------------
----------------------------------------
        110  1998    9/98       (c)
----------------------------------------
----------------------------------------
         94  1999    4/99       (c)
----------------------------------------
----------------------------------------
        150  1997    9/97       (c)
----------------------------------------
----------------------------------------
         80  1997    9/97       (c)
----------------------------------------
----------------------------------------
         65  1997    3/97       (c)
----------------------------------------
----------------------------------------
        167  1997    7/97       (c)
----------------------------------------
----------------------------------------
        154  1997    2/98       (c)
----------------------------------------
----------------------------------------
         89  1997    9/97       (c)
----------------------------------------
----------------------------------------
        102  1999    8/99       (c)
----------------------------------------
----------------------------------------
        130  1997    8/97       (c)
----------------------------------------
----------------------------------------
        118  1999    12/99      (c)
----------------------------------------
----------------------------------------
        109  1999    12/99      (c)
----------------------------------------
----------------------------------------
         76  1998    5/98       (c)
----------------------------------------
----------------------------------------
        120  1999    9/99       (c)
----------------------------------------
----------------------------------------
        133  1997    4/97       (c)
----------------------------------------
----------------------------------------
        138  1996    3/96       (c)
----------------------------------------
----------------------------------------
        157  1996    9/96       (c)
----------------------------------------
----------------------------------------
        149  1996    9/96       (c)
----------------------------------------
----------------------------------------
        122  1997    5/97       (c)
----------------------------------------
----------------------------------------
        119  1997    6/97       (c)
----------------------------------------
----------------------------------------
        145  1996    9/96       (c)
----------------------------------------
----------------------------------------
         91  1998    4/98       (c)
----------------------------------------
----------------------------------------
        116  1999    4/99       (c)
----------------------------------------
----------------------------------------
         77  1997    4/97       (c)
----------------------------------------
----------------------------------------
         76  1997    4/97       (c)
----------------------------------------
----------------------------------------
        137  1997    9/97       (c)
----------------------------------------
----------------------------------------
         72  1997    5/97       (c)
----------------------------------------
----------------------------------------
         82  1998    5/98       (c)
----------------------------------------
----------------------------------------
        112  1998    9/98       (c)
----------------------------------------
----------------------------------------
        126  1999    2/99       (c)
----------------------------------------
----------------------------------------
        169  1992    4/97       (c)
----------------------------------------
----------------------------------------
         89  1998    5/98       (c)
----------------------------------------
----------------------------------------
        126  1999    4/99       (c)
----------------------------------------
----------------------------------------
        124  1999    4/99       (c)
----------------------------------------
----------------------------------------
        139  1997    7/97       (c)
----------------------------------------
----------------------------------------
        126  1997    5/97       (c)
----------------------------------------
----------------------------------------
        114  1999    4/99       (c)
----------------------------------------
----------------------------------------
         91  1998    6/98       (c)
----------------------------------------
----------------------------------------
         99  1998    9/98       (c)
----------------------------------------
----------------------------------------
         97  1999    6/99       (c)
----------------------------------------
----------------------------------------
        125  1999    3/99       (c)
----------------------------------------
----------------------------------------
        110  1999    4/99       (c)
----------------------------------------
----------------------------------------
        100  1999    9/99       (c)
----------------------------------------
----------------------------------------
        119  1999    4/99       (c)
----------------------------------------
----------------------------------------
        152  1999    12/98      (c)
----------------------------------------
----------------------------------------
        109  1999    5/99       (c)
----------------------------------------
----------------------------------------
         75  1998    4/98       (c)
----------------------------------------
----------------------------------------
        123  1999    3/99       (c)
----------------------------------------
----------------------------------------
        130  1997    9/97       (c)
----------------------------------------
----------------------------------------
        139  1997    10/97      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        198  1999    1/00       (c)
----------------------------------------
----------------------------------------
        183  1999    2/00       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        147  1999    4/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        107  1982    6/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         35  2000    8/00       (c)
----------------------------------------
----------------------------------------
         64  1991    5/99       (c)
----------------------------------------
----------------------------------------
         69  1992    5/99       (c)
----------------------------------------
----------------------------------------
         73  1995    5/99       (c)
----------------------------------------
----------------------------------------
         70  1991    5/99       (c)
----------------------------------------
----------------------------------------
         (d) 1997    7/97       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         95  2000    12/99      (c)
----------------------------------------
----------------------------------------
         93  1994    3/99       (c)
----------------------------------------
----------------------------------------
         73  2000    5/00       (c)
----------------------------------------
----------------------------------------
         70  2000    12/99      (c)
----------------------------------------
----------------------------------------
         73  1999    12/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        174  1995    11/95      (c)
----------------------------------------
----------------------------------------
        118  1996    9/96       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         (d) 2001    9/98       (d)
----------------------------------------
----------------------------------------
         (d) 2001    9/98       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         (d) 1986    9/02       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         (d) 1989    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1986    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1978    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1975    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1986    5/96       (d)
----------------------------------------
----------------------------------------
         54  1996    3/97       (c)
----------------------------------------
----------------------------------------
         (d) 1985    1/96       (d)
----------------------------------------
----------------------------------------
         19  1992    2/97       (c)
----------------------------------------
----------------------------------------
         70  1990    3/97       (c)
----------------------------------------
----------------------------------------
         (d) 1987    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1978    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1986    1/96       (d)
----------------------------------------
----------------------------------------
         14  1998    10/00      (c)
----------------------------------------
----------------------------------------
         (d) 1990    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1977    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1986    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1983    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1978    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1978    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1994    1/96       (d)
----------------------------------------
----------------------------------------
         25  1980    10/00      (c)
----------------------------------------
----------------------------------------
         (d) 1986    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1980    4/96       (d)
----------------------------------------
----------------------------------------
         (d) 1975    1/96       (d)
----------------------------------------
----------------------------------------
         84  1989    3/97       (c)
----------------------------------------
----------------------------------------
         (d) 1986    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1994    1/96       (d)
----------------------------------------
----------------------------------------
         58  1983    3/97       (c)
----------------------------------------
----------------------------------------
         51  1975    3/97       (c)
----------------------------------------
----------------------------------------
         (d) 1976    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1993    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1977    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1991    5/96       (d)
----------------------------------------
----------------------------------------
         (d) 1978    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1983    1/96       (d)
----------------------------------------
----------------------------------------
         63  1983    3/97       (c)
----------------------------------------
----------------------------------------
         (d) 1976    4/96       (d)
----------------------------------------
----------------------------------------
         (d) 1978    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1975    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1985    1/96       (d)
----------------------------------------
----------------------------------------
         (d) 1988    4/96       (d)
----------------------------------------
----------------------------------------
         74  1983    3/97       (c)
----------------------------------------
----------------------------------------
         37  1979    3/97       (c)
----------------------------------------
----------------------------------------
         39  1980    3/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        191  1994    9/98       (c)
----------------------------------------
----------------------------------------
        150  1993    9/98       (c)
----------------------------------------
----------------------------------------
        159  1996    9/98       (c)
----------------------------------------
----------------------------------------
        158  1994    9/98       (c)
----------------------------------------
----------------------------------------
        210  1994    9/98       (c)
----------------------------------------
----------------------------------------
        178  1993    9/98       (c)
----------------------------------------
----------------------------------------
        154  1994    12/98      (c)
----------------------------------------
----------------------------------------
        134  1995    9/98       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         79  1980    10/99      (c)
----------------------------------------
----------------------------------------
        207  1997    4/98       (c)
----------------------------------------
----------------------------------------
         85  1999    10/99      (c)
----------------------------------------
----------------------------------------
        161  2000    5/00       (c)
----------------------------------------
----------------------------------------
        197  1998    11/98      (c)
----------------------------------------
----------------------------------------
        116  1980    10/99      (c)
----------------------------------------
----------------------------------------
         93  1988    10/99      (c)
----------------------------------------
----------------------------------------
        120  1979    10/99      (c)
----------------------------------------
----------------------------------------
         74  1999    10/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         70  1998    9/98       (c)
----------------------------------------
----------------------------------------
         67  1998    9/98       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        103  1999    1/00       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        110  1999    2/99       (c)
----------------------------------------
----------------------------------------
         63  2000    3/00       (c)
----------------------------------------
----------------------------------------
        146  1999    4/99       (c)
----------------------------------------
----------------------------------------
        129  1999    10/99      (c)
----------------------------------------
----------------------------------------
        138  1999    10/99      (c)
----------------------------------------
----------------------------------------
        243  1998    12/98      (c)
----------------------------------------
----------------------------------------
        116  1999    2/00       (c)
----------------------------------------
----------------------------------------
         75  1998    7/00       (c)
----------------------------------------
----------------------------------------
        105  2000    4/00       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        107  1997    6/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        134  1999    11/99      (c)
----------------------------------------
----------------------------------------
         (d) 1999    3/00       (d)
----------------------------------------
----------------------------------------
        146  1999    7/99       (c)
----------------------------------------
----------------------------------------
        151  1999    7/99       (c)
----------------------------------------
----------------------------------------
        157  1999    11/99      (c)
----------------------------------------
----------------------------------------
         (d) 1999    5/99       (d)
----------------------------------------
----------------------------------------
         (d) 1999    3/99       (d)
----------------------------------------
----------------------------------------
         (d) 1999    2/00       (d)
----------------------------------------
----------------------------------------
        127  1998    11/98      (c)
----------------------------------------
----------------------------------------
         (d) 1999    1/00       (d)
----------------------------------------
----------------------------------------
         (d) 1997    11/97      (d)
----------------------------------------
----------------------------------------
         (d) 1999    4/99       (d)
----------------------------------------
----------------------------------------
        159  1998    7/98       (c)
----------------------------------------
----------------------------------------
        162  1999    1/00       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        121  1977    6/97       (c)
----------------------------------------
----------------------------------------
        235  1996    6/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        276  1996    1/97       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        148  1996    12/96      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         (d) 1991    2/02       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        270  1999    4/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        179  1981    6/98       (c)
----------------------------------------
----------------------------------------
        110  1994    6/98       (c)
----------------------------------------
----------------------------------------
        151  1990    6/98       (c)
----------------------------------------
----------------------------------------
        162  1988    6/98       (c)
----------------------------------------
----------------------------------------
        179  1986    6/98       (c)
----------------------------------------
----------------------------------------
        120  1981    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1999    12/99      (d)
----------------------------------------
----------------------------------------
          6  1978    7/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         87  1996    9/96       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        128  1979    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1993    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1973    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1993    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1976    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1973    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1972    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1974    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1977    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1969    6/98       (d)
----------------------------------------
----------------------------------------
        134  1979    12/98      (c)
----------------------------------------
----------------------------------------
         (d) 1988    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1974    6/98       (d)
----------------------------------------
----------------------------------------
        141  1985    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1984    12/98      (d)
----------------------------------------
----------------------------------------
        134  1978    6/98       (c)
----------------------------------------
----------------------------------------
         (d) 1978    6/98       (d)
----------------------------------------
----------------------------------------
         (d) 1969    6/98       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        107  1981    3/99       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         61  1994    2/99       (c)
----------------------------------------
----------------------------------------
         (d) 1994    2/99       (d)
----------------------------------------
----------------------------------------
         (d) 1998    10/98      (d)
----------------------------------------
----------------------------------------
         (d) 1994    2/99       (d)
----------------------------------------
----------------------------------------
         72  1994    2/99       (c)
----------------------------------------
----------------------------------------
         76  1994    2/99       (c)
----------------------------------------
----------------------------------------
         (d) 1991    10/98      (d)
----------------------------------------
----------------------------------------
         61  1991    10/98      (c)
----------------------------------------
----------------------------------------
         28  2000    5/00       (c)
----------------------------------------
----------------------------------------
         (d) 1994    2/99       (d)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         63  2000    8/00       (c)
----------------------------------------
----------------------------------------
        101  1997    7/99       (c)
----------------------------------------
----------------------------------------
         61  2000    4/00       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        111  1999    12/99      (c)
----------------------------------------
----------------------------------------
        125  2000    9/00       (c)
----------------------------------------
----------------------------------------
        154  1999    3/00       (c)
----------------------------------------
----------------------------------------
        136  2000    5/00       (c)
----------------------------------------
----------------------------------------
        125  2000    6/00       (c)
----------------------------------------
----------------------------------------
        118  2000    5/00       (c)
----------------------------------------
----------------------------------------
         81  2000    11/00      (c)
----------------------------------------
----------------------------------------
        151  1999    12/99      (c)
----------------------------------------
----------------------------------------
        143  1999    9/99       (c)
----------------------------------------
----------------------------------------
        137  1998    11/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        223  1999    2/00       (c)
----------------------------------------
----------------------------------------
         (d) 1999    10/99      (d)
----------------------------------------
----------------------------------------
         (d) 1999    3/99       (d)
----------------------------------------
----------------------------------------
         (d) 2000    6/00       (d)
----------------------------------------
----------------------------------------
         (d) 1997    5/98       (d)
----------------------------------------
----------------------------------------
         (d) 1999    3/00       (d)
----------------------------------------
----------------------------------------
         (d) 1999    12/99      (d)
----------------------------------------
----------------------------------------
         14  1999    4/00       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         90  1981    10/97      (c)
----------------------------------------
----------------------------------------
        110  1981    10/97      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        121  1994    9/98       (c)
----------------------------------------
----------------------------------------
        109  1994    9/98       (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
        103  1989    10/99      (c)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
         81  2000    7/00       (c)
----------------------------------------
----------------------------------------
        172  1996    7/96       (c)
----------------------------------------
----------------------------------------
        111  1996    5/96       (c)
----------------------------------------
----------------------------------------
         79  1998    8/98       (c)
----------------------------------------
----------------------------------------
        102  1999    9/99       (c)
----------------------------------------
----------------------------------------
        132  1998    5/98       (c)
----------------------------------------
----------------------------------------

----------------------------------------
----------------------------------------
     51,449
============----------------------------
============----------------------------

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

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

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

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

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

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

----------------------------------------
----------------------------------------
        173  1998    11/98      (c)
============----------------------------
============----------------------------

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

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

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

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

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

----------------------------------------
----------------------------------------
    (g)      1996    2/99       (g)
----------------------------------------
----------------------------------------
    (f)      1996    1/99       (f)
----------------------------------------
----------------------------------------
    (g)      1995    8/98       (g)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1999    12/99      (f)
----------------------------------------
----------------------------------------
    (f)      1995    8/95       (f)
----------------------------------------
----------------------------------------
    (f)      1978    12/99      (f)
----------------------------------------
----------------------------------------
    (f)      1999    12/99      (f)
----------------------------------------
----------------------------------------
    (f)      1999    12/99      (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1986    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1979    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1979    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1984    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1983    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1979    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1981    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1983    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1979    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1986    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1983    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1976    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1980    6/98       (f)
----------------------------------------
----------------------------------------
    (g)      1982    6/98       (g)
----------------------------------------
----------------------------------------
    (f)      1987    12/98      (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1994    8/99       (f)
----------------------------------------
----------------------------------------
    (f)      1991    3/97       (f)
----------------------------------------
----------------------------------------
    (f)      1974    8/97       (f)
----------------------------------------
----------------------------------------
    (f)      1996    10/97      (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1985    1/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1999    12/99      (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1991    10/97      (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (g)      1992    3/99       (g)
----------------------------------------
----------------------------------------
    (f)      1992    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      1992    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      1992    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      1989    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      1994    3/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1996    3/97       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1972    5/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    10/98      (f)
----------------------------------------
----------------------------------------
    (f)      1997    10/99      (f)
----------------------------------------
----------------------------------------
    (f)      1998    12/99      (f)
----------------------------------------
----------------------------------------
    (f)      1998    1/00       (f)
----------------------------------------
----------------------------------------
    (f)      1997    8/99       (f)
----------------------------------------
----------------------------------------
    (f)      1996    11/98      (f)
----------------------------------------
----------------------------------------
    (g)      1997    5/99       (g)
----------------------------------------
----------------------------------------
    (f)      1997    9/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      1996    6/97       (f)
----------------------------------------
----------------------------------------
    (f)      1997    7/99       (f)
----------------------------------------
----------------------------------------
    (f)      1998    1/00       (f)
----------------------------------------
----------------------------------------
    (f)      1997    8/97       (f)
----------------------------------------
----------------------------------------
    (g)      1997    12/98      (g)
----------------------------------------
----------------------------------------
    (f)      1998    11/99      (f)
----------------------------------------
----------------------------------------
    (f)      1998    4/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    9/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    4/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    6/99       (f)
----------------------------------------
----------------------------------------
    (f)      1998    8/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    8/97       (f)
----------------------------------------
----------------------------------------
    (f)      1997    4/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    8/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (g)      1987    6/99       (g)
----------------------------------------
----------------------------------------
    (f)      1996    5/99       (f)
----------------------------------------
----------------------------------------
    (f)      1997    7/97       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (g)      1996    12/96      (g)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (g)      1997    9/97       (g)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1999    3/00       (f)
----------------------------------------
----------------------------------------
    (f)      1999    5/99       (f)
----------------------------------------
----------------------------------------
    (f)      1999    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      1999    2/00       (f)
----------------------------------------
----------------------------------------
    (f)      1999    1/00       (f)
----------------------------------------
----------------------------------------
    (f)      1997    11/97      (f)
----------------------------------------
----------------------------------------
    (f)      1999    10/99      (f)
----------------------------------------
----------------------------------------
    (f)      1999    4/99       (f)
----------------------------------------
----------------------------------------
    (f)      1999    6/99       (f)
----------------------------------------
----------------------------------------
    (f)      1999    9/99       (f)
----------------------------------------
----------------------------------------
    (f)      1999    7/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1999    12/99      (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1993    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1973    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1993    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1976    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1973    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1972    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1974    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1977    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1969    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1988    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1974    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1984    12/98      (f)
----------------------------------------
----------------------------------------
    (f)      1978    6/98       (f)
----------------------------------------
----------------------------------------
    (f)      1969    6/98       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1994    2/99       (f)
----------------------------------------
----------------------------------------
    (f)      1998    10/98      (f)
----------------------------------------
----------------------------------------
    (f)      1994    2/99       (f)
----------------------------------------
----------------------------------------
    (f)      1991    10/98      (f)
----------------------------------------
----------------------------------------
    (f)      1994    2/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1998    2/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1999    10/99      (f)
----------------------------------------
----------------------------------------
    (f)      1999    3/99       (f)
----------------------------------------
----------------------------------------
    (f)      2000    6/00       (f)
----------------------------------------
----------------------------------------
    (f)      1997    5/98       (f)
----------------------------------------
----------------------------------------
    (f)      1999    3/00       (f)
----------------------------------------
----------------------------------------
    (f)      1999    12/99      (f)
----------------------------------------
----------------------------------------
    (f)      1999    4/00       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1998    3/99       (f)
----------------------------------------
----------------------------------------

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

----------------------------------------
----------------------------------------
    (f)      1997    10/98      (f)
----------------------------------------
----------------------------------------
    (f)      1998    9/98       (f)
----------------------------------------
----------------------------------------
    (f)      1996    12/96      (f)
----------------------------------------
----------------------------------------
    (f)      2000    4/00       (f)
----------------------------------------
----------------------------------------
    (f)      1996    6/96       (f)
----------------------------------------
----------------------------------------
    (f)      1998    10/98      (f)

</TABLE>



<PAGE>

                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
        NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
                                December 31, 2003


(a)   Transactions in real estate and accumulated depreciation during 2003, 2002
      and 2001 are summarized  below.  The balances in 2002,  2001 and 2000 have
      been adjusted to reflect the  reclassification of properties accounted for
      as discontinued operations.
<TABLE>
<CAPTION>

 <c>
                                                                            (In thousands)

                                                                      Cost           Accumulated
                                                                     (b)(j)          Depreciation
                                                                -----------------   ----------------
              Properties the Company has Invested
                  in Under Operating Leases:

                   Balance, December 31, 2000                        $   599,904       $    19,489
                   Acquisitions                                            6,127                --
                   Dispositions                                          (19,047 )            (642  )
                   Reclassifications from direct
                      financing leases                                     6,053                --
                   Depreciation expense (c)                                   --            11,515
                                                                -----------------   ----------------

                   Balance, December 31, 2001                            593,037            30,632
                   Acquisitions                                            6,183               325
                   Dispositions                                           (2,541 )            (166  )
                   Reclassifications from direct
                      financing leasing                                    3,809                --
                   Depreciation expense (c)                                   --            10,529
                                                                -----------------   ----------------

                   Balance, December 31, 2002                            600,488            41,050
                   Acquisitions                                               --                --
                   Dispositions                                              (43 )              --
                   Reclassifications from direct financing
                      leases                                               5,151                --
                   Depreciation expense (c)                                   --            10,399
                                                                -----------------   ----------------
                   Balance December 31, 2003                         $   605,596       $    51,449
                                                                =================   ================

              Property of Joint Venture in Which the Company
                  has a 59.22% Interest and has Invested in
                  Under an Operating Lease:

                   Balance, December 31, 2000                       $  1,716,405       $    72,087
                   Depreciation expense                                       --            33,603
                                                                -----------------   ----------------

                   Balance, December 31, 2001                          1,716,405           105,690
                   Depreciation expense                                       --            33,604
                                                                -----------------   ----------------

                   Balance, December 31, 2002                          1,716,405           139,294
                   Depreciation Expense                                       --            33,604
                                                                -----------------   ----------------
                   Balance, December 31, 2003                       $  1,716,405       $   172,898
                                                                =================   ================
</TABLE>

(b)   As of  December  31,  2003,  2002  and  2001,  the  aggregate  cost of the
      properties  owned by the Company and its  subsidiaries  for federal income
      tax  purposes  was $621.5  million,  $657.3  million  and $745.3  million,
      respectively.  Substantially,  all of the leases are treated as  operating
      leases for federal income tax purposes.
<page>
                         CNL RESTAURANT PROPERTIES, INC.
      AND SUBSIDIARIES NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                            DEPRECIATION - CONTINUED
                                December 31, 2003


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

(d)   The building  portion of this property is owned by the tenant;  therefore,
      depreciation is not applicable.

(e)   For financial reporting purposes, certain components of the lease relating
      to land and/or  building have been recorded as a direct  financing  lease.
      Accordingly,  costs  relating  to these  components  of this lease are not
      shown.

(f)   For financial  reporting  purposes,  the portion of this lease relating to
      the building has been recorded as direct  financing lease. The cost of the
      building has been included in net investment in direct  financing  leases;
      therefore, depreciation is not applicable.

(g)   For financial reporting purposes,  the lease for the land and building has
      been recorded as 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.

(h)   The  Company  owns the  building  only  relating  to this  property.  This
      property  is  subject  to  a  ground  lease  between  the  tenant  and  an
      unaffiliated  third party.  In connection  therewith,  the Company entered
      into  either a  tri-party  agreement  with the tenant and the owner of the
      land or an assignment of interest in the ground lease with the landlord of
      the land.  The tri-party  agreement or assignment of interest each provide
      that the tenant is responsible for all obligations  under the ground lease
      and provide  certain rights to the Company to help protect its interest in
      the  building  in the event of a default by the tenant  under the terms of
      the ground lease.

(i)   The property is encumbered at December 31, 2003.

(j)   For financial reporting purposes,  the undepreciated cost of the following
      properties  was  written  down  to  its  net  realizable  value  due to an
      anticipated impairment in value. The Company recognized the impairments by
      recording  an  allowance  for loss on land and/or  building in the amounts
      listed below for each property as of December 31, 2003. The impairments at
      December  31,  2003  represent  the  difference  between  the  properties'
      carrying values and the property  manager's estimate of the net realizable
      value of the properties based upon anticipated  sales prices to interested
      third parties.  The cost of the  properties  presented on this schedule is
      the gross  amount at which the  properties  were  carried at December  31,
      2003, excluding the allowances for loss.



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC.
                                AND SUBSIDIARIES
               NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
                            DEPRECIATION - CONTINUED
                                December 31, 2003

(j) (continued)

    The  following  are a list of  properties  and  the  related  impairment  at
    December 31, 2003:

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

             Big Boy - Arnold, MO                             $  190,000
             Big Boy - Blue Springs, MO                          160,587
             Big Boy, Bridgeton, MO                              150,000
             Big Boy - Collinsville, IL                          134,764
             Big Boy, Columbia, MO                               133,333
             Big Boy - Crystal City, MO                          133,333
             Big Boy - Fenton, MO                                150,000
             Big Boy - Lee's Summit, MO                          189,769
             Big Boy - Merriam, KS                               183,425
             Big Boy - N. Kansas City, MO                        190,000
             Big Boy - Sedalia, MO                               189,914
             Black-eyed Pea - Fort Worth, TX                     312,735
             Black-eyed Pea - Glendale, AZ                       380,415
             Black-eyed Pea - Grapevine, TX                      873,196
             Boston Market - St. Joseph, MO                      143,132
             Burger King - Chattanooga, TN                        41,016
             Burger King - Lynnwood, WA                          240,163
             Chevys Fresh Mex - Brandon, FL                      103,029
             Chevys Fresh Mex - Clearwater, FL                     6,245
             Chevys Fresh Mex - Merriam, KS                    1,139,377
             Chevys Fresh Mex - Orlando, FL                      714,979
             Chevys Fresh Mex - Tampa. FL                        257,331
             Chevys Fresh Mex - Taylor, MI                       232,197
             Darryl's - Montgomery, AL                           436,392
             Darryl's - Raleigh, NC                              172,363
             Darryl's - Richmond, VA                             546,174
             Houlihan's - Langhorne, PA                          616,693
             Pizza Hut - Bowling Green, OH                       187,305
             Pizza Hut - Weirton, WV                             108,163
             Rio Bravo Fresh Mex - Atlanta, GA                   880,618
             Rio Bravo Fresh Mex - Jacksonville, FL            1,300,911
             Rio Bravo Fresh Mex - Lake Mary, FL                  43,500
             Rio Bravo Fresh Mex - Morrow, GA                    520,833
             Roadhouse Grill - Centerville, OH                   956,295
             Roadhouse Grill - Rock Hill, SC                     655,260
             Shoney's-Debary, FL                                 324,790
                                                        -----------------
                                                            $ 12,998,237
                                                        =================



<PAGE>


                         CNL RESTAURANT PROPERTIES, INC
                                AND SUBSIDIARIES
                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                               December 31, 2003
                    (In thousands except for number of loans)
<TABLE>
<CAPTION>

 <c>

                                             Interest           Final          Periodic      Prior       Face Amount
          Description                          Rate         Maturity Date    Payment Term    Liens       of Mortgages

          Mortgage note receivables:
          PRB Management, LLC             9.44% to 10.25%      2/1/2021         Note 1                   $ 27,224

          US Beef Corporation                  9.80%          12/1/2020         Note 1                   $ 19,926

          Metro Corral                         9.62%           1/1/2021         Note 1                   $ 16,968

          Kessler Family, LLC                 10.51%           2/1/2020         Note 1                   $ 15,299

          HR IV, LLC                          10.20%          11/1/2020         Note 1                   $ 12,668

          174 loans as mortgage loans
             on franchised restaurant
             businesses with original
             amounts ranging from
             $69 to $8,640                 3.09 % to 11.37% 07/01/2005 to
                                                            09/01/2023             N/A         N/A          N/A

          Total mortgage note receivables

          8 loans held for sale on
              franchised restaurant
              businesses with original
              amounts ranging
              from $300 to $17,924         5.00% to 9.00%  12/03/2004 to           N/A          N/A         N/A
                                                           10/01/2013


<page>

       Carrying Amount Principal Amount of Loans
        of Mortgages  Subject to Delinquent
          Note (4)    Principal or Interest


            $ 25,512             $ -

              18,808               -

              15,987               -

              13,671               -

              11,943               -






             215,615             9,092

             301,536             9,092



              1,490              2,937
----------------------------------------
Note(3)   $ 303,026           $ 12,029
========================================




<page>

                                                     2003               2002         2001
          Balance at beginning of period        $ 351,811          $ 387,992    $ 377,922
Note (2)  New mortgage loans - non-cash               621              4,571            -
          New mortgage loans                            -             15,047        3,479
          Accrued interest                         (1,933)             1,441        2,974
          Loans written off                        (1,206)            (7,368)           -
          Collection of principal                 (38,627)           (32,183)        (762)
          Deferred financing income                   205                206         (440)
          Unamortized loan costs                      (59)              (147)      (1,963)
          Valuation adjustment                        455            (15,839)      15,823
          Provision for uncollectible mortgage note(8,241)            (1,909)      (9,041)
          Balance at end of period              $ 303,026          $ 351,811    $ 387,992


Note (1)  Principal and interest payable at level amount over life.  Prepayment penalty terms - Loans may prepay during agreed
          number of years with assessed premiums based on Treasury rate or swap breakage costs; then, 1% of the entire unpaid
          principal balance.
Note (2)  Sold properties and took note for portion of proceeds and accepted mortagage note in lieu of other receivables.
Note (3)  Amounts do not include equipment and other notes receivable of $18,583.
Note (4)  Carrying amount is net of provisions for loan losses.


</TABLE>













<PAGE>

                                    EXHIBITS




<PAGE>


                                  EXHIBIT INDEX


       Exhibit Number

          2.1   Agreement and Plan of Merger,  by and among the Registrant,  CFA
                Acquisition Corp., CNL Fund Advisors,  Inc. and CNL Group, Inc.,
                dated  March  11,  1999   (included  as  Exhibit  10.38  to  the
                Registrant's  Registration  Statement No.  333-74329 on Form S-4
                (the "Form S-4") as originally filed and incorporated  herein by
                reference).

          2.2   Agreement and Plan of Merger,  by and among the Registrant,  CFC
                Acquisition  Corp., CFS Acquisition  Corp., CNL Financial Corp.,
                CNL  Financial  Services,  Inc.,  CNL Group,  Inc.,  Five Arrows
                Realty Securities L.L.C., Robert A. Bourne, Curtis B. McWilliams
                and Brian Fluck, dated March 11, 1999 (included as Exhibit 10.39
                to the Form S-4 as originally filed and  incorporated  herein by
                reference).

          3.1   CNL  Restaurant  Properties,  Inc.  Second  Amended and Restated
                Articles  of  Incorporation  (included  as  Exhibit  3.3  to the
                Registrant's  Form 10-Q for the quarter  ended June 30, 2000 and
                incorporated herein by reference).

          3.2   Articles of Amendment to Second Amended and Restated Articles of
                Incorporation of CNL Restaurant  Properties,  Inc.  (included as
                Exhibit 3.4 to the Registrant's  Form 10-Q for the quarter ended
                June 30, 2002 and incorporated herein by reference).

          3.3   Articles of Amendment to Second Amended and Restated Articles of
                Incorporation of CNL American Properties Fund, Inc. (included as
                Exhibit 3.5 to the Registrant's  Form 10-Q for the quarter ended
                June 30, 2003 and incorporated herein by reference).

          3.4   Second  Amended and Restated  Bylaws of CNL American  Properties
                Fund,  Inc.  (included as Exhibit 3.6 to the  Registrant's  Form
                10-Q for the quarter ended  September 30, 2003 and  incorporated
                herein by reference).

          4.1   Form  of  Stock  Certificate  (included  as  Exhibit  4.5 to the
                Registrant's  Registration  Statement No.  33-78790 on Form S-11
                and incorporated herein by reference).

          10.1  Form of  Indemnification  Agreement  dated as of April 18, 1995,
                between the Registrant and each of James M. Seneff,  Jr., Robert
                A. Bourne,  G. Richard  Hostetter,  J. Joseph Kruse,  Richard C.
                Huseman,  John T. Walker, Jeanne A. Wall, Lynn E. Rose and Edgar
                J.  McDougall,  dated  as  of  January  27,  1997,  between  the
                Registrant and Steven D.  Shackelford,  dated as of February 18,
                1998, between the Registrant and Curtis B. McWilliams, and dated
                as of  September  1, 1999,  between the  Registrant  and each of
                Howard J. Singer, John L. Farren, Timothy J. Neville, Michael I.
                Wood  and  Barry  L.  Goff  (included  as  Exhibit  10.9  to the
                Registrant's  Registration  Statement No. 333-15411 on Form S-11
                and incorporated herein by reference).

          10.2  Amended and Restated Agreement of Limited Partnership of CNL APF
                Partners,  LP (included as Exhibit  10.50 to Amendment  No. 2 to
                the Form S-4 and incorporated herein by reference).

          10.3  Franchise Receivable Funding and Servicing Agreement dated as of
                October  14,  1999  between  CNL APF  Partners,  LP and  Neptune
                Funding   Corporation   (included   as   Exhibit   10.5  to  the
                Registrant's  Form 10-K for the year ended December 31, 1999 and
                incorporated herein by reference).


<PAGE>



          10.4  Interim  Wholesale  Mortgage  Warehouse  and Security  Agreement
                dated as of September 18, 1998, and Amended  Agreement  dated as
                of August 30, 1999 between CNL APF Partners,  LP and  Prudential
                Securities Credit  Corporation  (included as Exhibit 10.6 to the
                Registrant's  Form 10-K for the year ended December 31, 1999 and
                incorporated herein by reference).

          10.5  1999  Performance  Incentive  Plan  (included as Exhibit 10.1 to
                Amendment  No.  1 to the  Form S-4 and  incorporated  herein  by
                reference).

          10.6  Registration  Rights  Agreement  by and  among  the  Registrant,
                Robert A. Bourne,  Curtis B. McWilliams,  John T. Walker, Howard
                Singer,  Steven D. Shackelford and CNL Group,  Inc., dated as of
                March 11, 1999  (included as Exhibit 10.40 to Amendment No. 1 to
                the Form S-4 and incorporated herein by reference).

          10.7  Registration Rights Agreement by and among the Registrant,  Five
                Arrows Realty Securities L.L.C., James M. Seneff, Jr., Robert A.
                Bourne,  Curtis B. McWilliams and CNL Group,  Inc.,  dated as of
                March 11, 1999  (included as Exhibit 10.41 to Amendment No. 1 to
                the Form S-4 and incorporated herein by reference).

          10.8  Employment  Agreement  by and  between  Barry  L.  Goff  and the
                Registrant,  dated September 15, 1999 (included as Exhibit 10.46
                to Amendment  No. 2 to the Form S-4 and  incorporated  herein by
                reference).

          10.9  Employment  Agreement  by and  between  Robert W. Chapin and the
                Registrant,  dated September 15, 1999 (included as Exhibit 10.47
                to Amendment  No. 2 to the Form S-4 and  incorporated  herein by
                reference).

          10.10 Employment  Agreement  by  and  between  Michael  Wood  and  the
                Registrant,  dated August 31, 1999 (included as Exhibit 10.19 to
                the Registrant's  Form 10-Q for the quarter ended March 31, 2001
                and incorporated herein by reference).

          10.11 Employment  Agreement  by  and  between  Brent  Heaton  and  the
                Registrant,  dated September 29, 1999 (included as Exhibit 10.20
                to the  Registrant's  Form 10-Q for the quarter  ended March 31,
                2001 and incorporated herein by reference).

          10.12 Addendum to Employment  Agreement  dated as of November 1, 1999,
                between  the  Registrant  and  Curtis  McWilliams  (included  as
                Exhibit  10.21 to the  Registrant's  Form  10-Q for the  quarter
                ended March 31, 2001 and incorporated herein by reference).  The
                following persons have signed a substantially identical Addendum
                relating  to  their  respective  employment  agreements;   Steve
                Shackelford   (dated  November  1,  1999),  John  Walker  (dated
                November 3,  1999),  Barry Goff  (dated  November 1, 1999),  and
                Brent Heaton (dated November 3, 1999).

          10.13 Addendum to Employment  Agreement  dated as of November 1, 1999,
                between the  Registrant  and Robert Chapin  (included as Exhibit
                10.22 to the Registrant's  Form 10-Q for the quarter ended March
                31, 2001 and  incorporated  herein by reference).  The following
                persons have signed a substantially  identical Addendum relating
                to their respective employment agreements:  Howard Singer (dated
                November 1,  1999),  Michael  Wood (dated  November 8, 1999) and
                Timothy Neville (dated November 24, 1999).

          10.14 Second  Addendum to  Employment  Agreement  dated as of June 16,
                2000, between the Registrant and Curtis McWilliams  (included as
                Exhibit  10.23 to the  Registrant's  Form  10-Q for the  quarter
                ended March 31, 2001 and incorporated herein by reference).  The
                following  persons have signed a substantially  identical Second
                Addendum  relating to their  respective  employment  agreements:
                Howard Singer  (dated June 19, 2000),  Robert Chapin (dated June
                20, 2000) and Brent Heaton (dated October 30, 2000).

          10.15 Second  Addendum to Employment  Agreement dated as of August 20,
                2000, between the Registrant and Barry Goff (included as Exhibit
                10.24 to the Registrant's  Form 10-Q for the quarter ended March
                31, 2001 and incorporated herein by reference).

          10.16 Second Addendum to Employment  Agreement dated as of October 24,
                2000,  between the  Registrant  and Michael  Wood  (included  as
                Exhibit  10.27 to the  Registrant's  Form  10-Q for the  quarter
                ended March 31, 2001 and incorporated herein by reference).

          10.17 Amended  and  Restated  Master  Purchase  Agreement  dated as of
                October 11, 2001,  among Bank of America,  N.A.,  CNL  Financial
                VII, LP and CNL Franchise Network, LP (included as Exhibit 10.29
                to the  Registrant's  Form 10-K for the year ended  December 31,
                2001 and incorporated herein by reference).

          10.18 Third  Amended and Restated  Side Letter dated as of October 11,
                2001, among Bank of America, N.A., CNL Financial VII, LP and CNL
                Franchise  Network,   LP  (included  as  Exhibit  10.30  to  the
                Registrant's  Form 10-K for the year ended December 31, 2001 and
                incorporated herein by reference).

          10.19 Loan and  Security  Agreement  dated as of June 14, 2002 between
                CNL Financial IX, LP and Nieuw Amsterdam Receivables Corporation
                (included as Exhibit 10.31 to the Registrant's Form 10-Q for the
                quarter  ended  June  30,  2002  and   incorporated   herein  by
                reference).

          10.20 Letter  Agreement  dated  December  15,  2003  between  Bank  of
                America, N.A., CNL Financial VII, LP and CNL Restaurant Capital,
                LP (filed herewith)

          10.21 Employment  Agreement dated as of May 5, 2003 by and between CNL
                Franchise  Network  GP Corp.  and Steven D.  Shackelford  (filed
                herewith).

          10.22 Employment Agreement dated as of May 5, 2003, by and between CNL
                Franchise  Network  GP Corp.  and  Curtis B.  McWilliams  (filed
                herewith).

          21    Subsidiaries of the Registrant (filed herewith).

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

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

          32.1  Certification  of Chief Executive  Officer 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 pursuant to 18 U.S.C.
                Section  1350  as  adopted   pursuant  to  Section  906  of  the
                Sarbanes-Oxley Act of 2002 (filed herewith).


<PAGE>




                                  EXHIBIT 10.20
                    LETTER AGREEMENT DATED DECEMBER 15, 2003
                         BETWEEN BANK OF AMERICA, N.A.,
                            CNL FINANCIAL VII, LP AND
                           CNL RESTAURANT CAPITAL, LP



<PAGE>




                                  EXHIBIT 10.21
                              EMPLOYMENT AGREEMENT
                              STEVEN D. SHACKELFORD



<PAGE>




                                  EXHIBIT 10.22
                              EMPLOYMENT AGREEMENT
                              CURTIS B. MCWILLIAMS


<PAGE>






                                   EXHIBIT 21
                         SUBSIDIARIES OF THE REGISTRANT



<PAGE>


                                  EXHIBIT 31.1

             RULE 13a-14(a) CERTIFICATION OF CHIEF EXECUTIVE OFFICER

<PAGE>




                                  EXHIBIT 31.2

             RULE 13a-14(a) CERTIFICATION OF CHIEF FINANCIAL OFFICER

<PAGE>




                                  EXHIBIT 32.1

              SECTION 1350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER




<PAGE>




                                  EXHIBIT 32.2

              SECTION 1350 CERTIFICATION OF CHIEF FINANCIAL OFFICER