AEI Income & Growth Fund XXI Files Q2 2025 10-Q

TL;DR

**AEI INCOME & GROWTH FUND XXI is playing by the rules, but this filing offers no real meat for traders.**

AI Summary

AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP, a non-accelerated and smaller reporting company, filed its 10-Q for the quarter ended June 30, 2025. The filing indicates the partnership has 15,980.84 Units of limited partners as of July 31, 2025. The company confirmed it has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days. Furthermore, the registrant has electronically submitted every Interactive Data File required by Rule 405 of Regulation S-T during the preceding 12 months. No specific revenue or net income figures were provided in the excerpt, nor were any key business changes or strategic outlooks detailed. The filing confirms the company is not a shell company.

Why It Matters

For investors, this filing confirms AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP's ongoing compliance with SEC reporting requirements, indicating transparency and adherence to regulatory standards. The disclosure of 15,980.84 Limited Partnership Units provides a baseline for understanding the partnership's structure and investor base. In a competitive real estate market, consistent regulatory filings are crucial for maintaining investor confidence, especially for a non-accelerated and smaller reporting company. This compliance helps differentiate it from less transparent entities, potentially attracting or retaining investors seeking stability.

Risk Assessment

Risk Level: low — The risk level is low because the filing indicates full compliance with SEC reporting requirements, including Section 13 or 15(d) of the Securities Exchange Act of 1934 and Rule 405 of Regulation S-T. The company also explicitly states it is not a shell company, reducing speculative risk.

Analyst Insight

Investors should note AEI INCOME & GROWTH FUND XXI's consistent regulatory compliance, which suggests operational stability. However, without financial specifics like revenue or net income, investors should seek further disclosures to assess the partnership's performance and valuation before making investment decisions.

Key Numbers

• 15,980.84 — Limited Partnership Units (Represents the total units outstanding as of July 31, 2025, indicating the scale of investor participation.)

Key Players & Entities

• AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP (company) — registrant for the 10-Q filing
• SEC (regulator) — recipient of the 10-Q filing
• 15,980.84 (dollar_amount) — number of Limited Partnership Units as of July 31, 2025
• June 30, 2025 (date) — end of the quarterly period reported
• July 31, 2025 (date) — date for the count of Limited Partnership Units
• Minnesota (location) — state of incorporation for the registrant
• 30 East 7th Street, Suite 1300 St. Paul, Minnesota 55101 (location) — principal executive offices address
• 651-227-7333 (phone_number) — registrant's telephone number

FAQ

Industry Context

AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP operates within the Real Estate sector. This sector is characterized by its sensitivity to interest rates, economic cycles, and local market conditions. Companies in this space often focus on property acquisition, development, and management to generate income and capital appreciation.

Regulatory Implications

As a non-accelerated and smaller reporting company, AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP is subject to specific SEC filing requirements. The confirmation of filing all required reports under Section 13 or 15(d) and submitting Interactive Data Files indicates compliance with these ongoing disclosure obligations.

What Investors Should Do

1. Review full 10-Q for detailed financial statements.
2. Monitor future filings for operational and financial updates.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance and condition. (This document is the 10-Q filing for AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP, detailing its performance for the quarter ended June 30, 2025.)

Limited Partnership Units

Represents ownership stakes in a limited partnership, similar to shares in a corporation. (The filing states there were 15,980.84 Limited Partnership Units outstanding as of July 31, 2025, indicating the scale of investor participation.)

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

These sections of the Act mandate that public companies and certain other entities file periodic reports (like 10-Qs and 10-Ks) with the SEC. (The partnership confirmed it has met these filing requirements for the preceding 12 months, indicating ongoing compliance.)

Rule 405 of Regulation S-T

This rule requires companies to submit Interactive Data Files (XBRL) electronically with their SEC filings. (The registrant confirmed it has submitted all required Interactive Data Files electronically over the past 12 months.)

Shell Company

A company with no or nominal operations, and often with very few assets, typically formed to acquire the assets or shares of an existing company. (The filing explicitly states that AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP is not a shell company, suggesting it has active operations.)

Year-Over-Year Comparison

Information to compare metrics against a previous filing is not available in the provided excerpt. Key financial figures such as revenue, net income, and balance sheet items are not disclosed, preventing a year-over-year or sequential comparison.

Key Financial Figures

• $473,876 — Partnership recognized rental income of $473,876 and $499,506, respectively. In 2025, re
• $499,506 — ecognized rental income of $473,876 and $499,506, respectively. In 2025, rental income d
• $922,000 — ecognize rental income of approximately $922,000 in 2025. 11 ITEM 2. MANAGEMENT'S DIS
• $57,850 — ion expenses from affiliated parties of $57,850 and $85,448, respectively. These admini
• $85,448 — from affiliated parties of $57,850 and $85,448, respectively. These administration exp
• $82,997 — ment expenses from unrelated parties of $82,997 and $62,401, respectively. These expens
• $62,401 — s from unrelated parties of $82,997 and $62,401, respectively. These expenses represent
• $6,386 — rtnership recognized interest income of $6,386 and $1,755, respectively. Management
• $1,755 — ecognized interest income of $6,386 and $1,755, respectively. Management believes in
• $550,323 — e Partnership's cash balances increased $550,323 as a result of cash received from the s
• $19,898 — e Partnership's cash balances decreased $19,898 as a result of distributions paid to th
• $326,568 — by operating activities increased from $326,568 in 2024 to $346,485 in 2025 as a result
• $346,485 — ties increased from $326,568 in 2024 to $346,485 in 2025 as a result of the timing of pa
• $1,345,607 — sh flow from the sale of real estate of $1,345,607. During the six months ended June 30, 2
• $825,611 — 45,607, which resulted in a net gain of $825,611. At the time of sale, the cost basis of

Filing Documents

• aei21-20250630.htm (10-Q) — 306KB
• ex2131-1.htm (EX-31.1) — 8KB
• ex2131-2.htm (EX-31.2) — 8KB
• ex2132.htm (EX-32) — 9KB
• 0000931755-25-000015.txt ( ) — 1191KB
• aei21-20250630.xsd (EX-101.SCH) — 11KB
• aei21-20250630_def.xml (EX-101.DEF) — 43KB
• aei21-20250630_lab.xml (EX-101.LAB) — 104KB
• aei21-20250630_pre.xml (EX-101.PRE) — 64KB
• aei21-20250630_cal.xml (EX-101.CAL) — 19KB
• aei21-20250630_htm.xml (XML) — 55KB

– Financial Information

Part I – Financial Information Item 1. Condensed Financial Statements (unaudited): Balance Sheets as of June 30, 2025 and December 31, 2024 3 Income 4 Cash Flows 5 Changes in Partners' Capital 6 Condensed Notes to Financial Statements 7 - 8 Item 2.

Management's Discussion and Analysis of Financial

Management's Discussion and Analysis of Financial Condition and Results of Operations 9 - 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 13 Item 4.

Controls and Procedures

Controls and Procedures 14

– Other Information

Part II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 15 Item 1A.

Risk Factors

Risk Factors 15 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 15 Item 3. Defaults Upon Senior Securities 16 Item 4. Mine Safety Disclosures 16 Item 5. Other Information 16 Item 6. Exhibits 16

Signatures

Signatures 16 2 AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP BALANCE SHEETS ASSETS June 30, December 31, 2025 2024 (unaudited) Current Assets: Cash $ 790,382 $ 240,059 Real Estate Investments: Land 3,166,803 3,447,796 Buildings 8,640,560 9,825,615 Acquired Intangible Lease Assets 864,490 864,490 Real Estate Held for Investment, at Cost 12,671,853 14,137,901 Accumulated Depreciation and Amortization ( 3,607,658 ) ( 4,321,261 ) Real Estate Held for Investment, Net 9,064,195 9,816,640 Total Assets $ 9,854,577 $ 10,056,699 LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Payable to AEI Fund Management, Inc. $ 91,069 $ 89,055 Distributions Payable 367,780 173,233 Unearned Rent 9,167 55 Total Current Liabilities 468,016 262,343 Long-term Liabilities: Acquired Below-Market Lease Intangibles, Net 4,729 8,783 Partners' Capital : General Partner 8,171 3,776 Limited Partners – 24,000 Units authorized; 15,980.84 and 17,076.71 Units issued and outstanding as of 6/30/2025 and 12/31/2024, respectively 9,373,661 9,781,797 Total Partners' Capital 9,381,832 9,785,573 Total Liabilities and Partners' Capital $ 9,854,577 $ 10,056,699 The accompanying Condensed Notes to Financial Statements are an integral part of these statements. 3 AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP (unaudited) Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Rental Income $ 223,885 $ 249,753 $ 473,876 $ 499,506 Expenses: Partnership Administration – Affiliates 28,575 39,645 57,850 85,448 Partnership Administration and Property Management – Unrelated Parties 30,970 40,266 82,997 62,401 Depreciation and Amortization 116,226 128,076 232,451 256,151 Total Expenses 175,771 207,987 373,298 404,000 Operating Income 48,114

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. This section contains "forward-looking statements" which represent management's expectations or beliefs concerning future events, including statements regarding anticipated application of cash, expected returns from rental income, growth in revenue, the sufficiency of cash to meet operating expenses, rates of distribution, and other matters. These, and other forward-looking statements, should be evaluated in the context of a number of factors that may affect the Partnership's financial condition and results of operations, including the following: — Market and economic conditions which affect the value of the properties the Partnership owns and the cash from rental income such properties generate; — the federal income tax consequences of rental income, deductions, gain on sales and other items and the effects of these consequences for the Partners; — resolution by the General Partner of conflicts with which they may be confronted; — the success of the General Partner of locating properties with favorable risk return characteristics; — the effect of tenant defaults; and — the condition of the industries in which the tenants of properties owned by the Partnership operate. Application of Critical Accounting Policies The Partnership's financial statements have been prepared in accordance with US GAAP. Preparing the financial statements requires management to use judgment in the application of these accounting policies, including making estimates and assumptions. These judgments will affect the reported amounts of the Partnership's assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and will affect the reported amounts of revenue and expenses during the reporting periods. It is possible that the carrying amount of the Partnership's assets and liabilities, or the results of repo

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) Allocation of Purchase Price of Acquired Properties Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market in-place leases. The allocation of the purchase price is based upon the relative fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management's assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized on a straight-line basis as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized on a straight-line basis as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) Carrying Value of Properties Properties are carried at original cost, less accumulated depreciation and amortization. The Partnership tests long-lived assets for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, management determines whether impairment has occurred by comparing the property's probability-weighted future undiscounted cash flows to its current carrying value. For properties held for sale, management determines whether impairment has occurred by comparing the property's estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. Changes in these assumptions or analysis may cause material changes in the carrying value of the properties. Allocation of Expenses AEI Fund Management, Inc. allocates expenses to each of the funds they manage primarily on the basis of the number of hours devoted by their employees to each fund's affairs. They also allocate expenses at the end of each month that are not directly related to a fund's operations based upon the number of investors in the fund and the fund's capitalization relative to other funds they manage. The Partnership reimburses these expenses subject to detailed limitations contained in the Partnership Agreement. Factors Which May Influence Results of Operations The Partnership is not aware of any material trends or uncertainties, other than national economic conditions affecting real estate generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues and investment property value. However, due to current economic factors, higher interest rates, and inflation in the US and globally, our tenants and opera

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) For the six months ended June 30, 2025 and 2024, the Partnership incurred Partnership administration expenses from affiliated parties of $57,850 and $85,448, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Partners. These expenses were lower in 2025, when compared to 2024, mainly due to a decrease in property related management expenses. During the same periods, the Partnership incurred Partnership administration and property management expenses from unrelated parties of $82,997 and $62,401, respectively. These expenses represent direct payments to third parties for legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. These expenses were higher in 2025, when compared to 2024, mainly due to timing of tax and audit services. For the six months ended June 30, 2025 and 2024, the Partnership recognized interest income of $6,386 and $1,755, respectively. Management believes inflation has not significantly affected income from operations. Leases may contain rent increases, based on the increase in the Consumer Price Index over a specified period, which will result in an increase in rental income over the term of the leases. Inflation also may cause the real estate to appreciate in value. However, inflation and changing prices may have an adverse impact on the operating margins of the properties' tenants, which could impair their ability to pay rent and subsequently reduce the Net Cash Flow available for distributions. Liquidity and Capital Resources During the six months ended June 30, 2025, the Partnership's cash balances increased $550,323 as a result of cash received from the sale of real estate and cash received from operations, which was partially offset by distributions paid to Partners and cash u

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) The Partnership's primary use of cash flow, other than investment in real estate, is distribution payments to Partners and cash used to repurchase Units. The Partnership declares its regular quarterly distributions before the end of each quarter and pays the distribution in the first week after the end of each quarter. The Partnership attempts to maintain a stable distribution rate from quarter to quarter. The Partnership may repurchase tendered Units on April 1st and October 1st of each year subject to limitations. For the six months ended June 30, 2025 and 2024, the Partnership declared distributions of $541,013 and $346,466, which are to be distributed 99% to the Limited Partners and 1% to the General Partner, respectively. The Limited Partners were allocated declared distributions of $535,603 and $343,002 and the General Partner was allocated declared distributions of $5,410 and $3,464 for the periods ended June 30, 2025 and 2024, respectively. The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership. On April 1, 2025, the Partnership repurchased a total of 1,095.87 Units for $787,350 from 45 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. The repurchase increases the remaining Limit

QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Not required for a smaller reporting company. 13

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES. (a) Disclosure Controls and Procedures. Under the supervision and with the participation of management, including its President and Chief Financial Officer, the Managing General Partner of the Partnership evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")). Based upon that evaluation, the President and Chief Financial Officer of the Managing General Partner concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to management, including the President and Chief Financial Officer of the Managing General Partner, in a manner that allows timely decisions regarding required disclosure. (b) Changes in Internal Control Over Financial Reporting. During the most recent period covered by this report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected,

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