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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20459


                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

                         Date of Report: April 12, 1999
                                        ---------------
                        (Date of earliest event reported)

                          CAPTEC NET LEASE REALTY, INC.
                          -----------------------------
             (Exact name of registrant as specified in its charter)

                                    Delaware 
                                    -------- 
                 (State or other jurisdiction of incorporation)



                                                          

                  1045281                                              38-3368333
                  -------                                              ----------
         (Commission File Number)                         (IRS Employer Identification No.)

24 Frank Lloyd Wright Drive, Ann Arbor, Michigan                            48106
- ------------------------------------------------                            -----
  (Address of principal executive offices)                               (Zip Code)


       Registrant's telephone number, including area code: (734) 994-5505

ITEM 5.  OTHER EVENTS.

         Captec Net Lease Realty, Inc. (the "Company"), through a wholly-owned
subsidiary, has formed a joint venture (the "Joint Venture") with an affiliate
of Fidelity Management Trust Company, one of the largest investment managers in
the United States (the "Joint Venture Partner"), on behalf of its institutional
clients. The Joint Venture, FC Venture I, LLC, was formed to develop and acquire
net-leased restaurant and retail properties similar to those which the Company
develops and acquires. The Joint Venture Partner and the Company have committed
to provide $24 million and $7 million, respectively, of equity capital for the
Joint Venture. The Company will be the Joint Venture's managing member. The
Joint Venture's objective is to leverage its capital through borrowing to
acquire up to $100 million in properties. As properties are acquired, the
Company will receive management fees and participate in any distributions from
the Joint Venture as provided in the Limited Liability Company Agreement (the
"Agreement"). See Exhibit 10.14. The Company will utilize any proceeds from the
Joint Venture as working capital, including for the acquisition of properties
for its portfolio. The Joint Venture Partner has been granted an option to
convert either 25% or 75% of its Joint Venture interest into the Company's
common stock at times and on terms and conditions set forth in the Agreement.
The Company expects that any management fees or other revenues from the Joint
Venture will be accretive to funds from operations (FFO) with no corresponding
negative impact to its balance sheet. The Company believes an additional benefit
of the Joint Venture will be the expansion of the Company's preferred developer
network and business opportunities which will result from its exposure to
significant new business development partners.


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FORWARD-LOOKING STATEMENTS

         This Form 8-K contains certain "forward-looking statements" which
represent the Company's expectations or beliefs, including, but not limited to,
statements concerning industry performance and the Company's operations,
performance, financial condition, plans, growth and strategies. Any statements
contained in this Form 8-K which are not statements of historical fact may be
deemed to be forward-looking statements. Without limiting the generality of the
foregoing, words such as "may," "will," "expect," "anticipate," "intent,"
"could," "estimate" or "continue" or the negative or other variations thereof or
comparable terminology are intended to identify forward-looking statements.
These statements by their nature involve substantial risks and uncertainties,
certain of which are beyond the Company's control, and actual results may differ
materially depending on a variety of important factors, many of which are beyond
the control of the Company.

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

Exhibits

Exhibit No.              Description

Exhibit 10.14            FC Venture I, LLC Limited Liability Company Agreement.

                                    SIGNATURE

         Pursuant to the requirements 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 date indicated.

                                   CAPTEC NET LEASE REALTY, INC.


April 22, 1999                     /s/ W. Ross Martin
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                                   W. Ross Martin
                                   Executive Vice President and Chief Financial
                                   Officer