AEI Income & Growth Fund XXI Posts $879K Q1 Profit

The fund's quarterly net income surged more than 15-fold as it capitalized on a strategic real estate divestment.

May 14, 2025

Strong Quarter Backed by Strategic Sale

AEI Income & Growth Fund XXI had a strong first quarter. Net income climbed to $879,343 for the period ending March 31, 2025—up from just over $54,000 a year ago. The main driver: a targeted sale of the fund’s 40% stake in a Jared Jewelry property in Auburn Hills, Michigan. The deal closed in late March and delivered $1.35 million in proceeds, generating a gain of more than $825,000.

This sale set the tone for the quarter. Core operating income stayed steady at around $52,000, while rental income edged up slightly to $249,991. That increase came from a scheduled rent escalation on one property. Based on leases in place as of April 30, the fund expects full-year rental income to reach roughly $922,000.

Cost Movement and Operational Flow

Administrative costs moved in both directions. Expenses tied to affiliated entities declined compared to the same period in 2024. At the same time, third-party expenses—covering tax prep, audit services, and filings—rose. That timing offset helped keep total expenses in check. Interest income also saw a minor bump year over year.

Liquidity improved meaningfully. The fund started the quarter with $240,059 in cash and ended it with $1.61 million. This wasn’t just from operations—the Auburn Hills sale was the key contributor. Operating cash flow increased from $156,000 to $198,000, reflecting better timing on collections and fund management payments.

Distribution and Outlook

Distributions to partners held steady. The fund declared $173,233 in distributions for the quarter, with $171,501 going to limited partners. That comes out to $10.04 per unit. No new units were repurchased, and no new properties were added.

The fund continues to rely on two core cash sources:

• Rent from leased properties


• Proceeds from real estate sales

Both supported operations and distributions this quarter. While inflation and higher rates may weigh on tenants, management expects current rent flows and cash on hand to be enough to meet obligations in the months ahead.

Compliance and Risk Snapshot

No impairments or off-balance sheet items were reported. Controls and procedures remained unchanged from the prior quarter, and no legal issues or defaults were disclosed.