AEI Fund 25 Accelerates Liquidation, Distributes $5.87M to Members

TL;DR

**AEI Income & Growth Fund 25 is cashing out, and investors should expect more distributions as the fund liquidates its remaining six properties.**

AI Summary

AEI Income & Growth Fund 25 LLC, a Delaware-organized limited liability company, reported significant asset disposition activity in 2025 as it commenced its final liquidation process. The company sold three property interests, generating net sale proceeds of $5,632,191 and realizing a substantial net gain of $2,257,995. This follows prior sales in 2023 and 2024, which yielded net proceeds of $1,418,133 and $406,688, respectively, with corresponding net gains of $44,186 and $711. As of December 31, 2025, the company owned interests in six properties with a total cost of $16,680,486, down from ten properties with a cost of $27,323,733 at December 31, 2022. Distributions to Limited Members surged to $5,870,999 in 2025 from $1,080,601 in 2024, reflecting the proceeds from property sales. The company repurchased 1,120.98 units at an average price of $502.28 per unit on October 1, 2025, and the estimated value of its Units was $567 per Unit as of December 31, 2025.

Why It Matters

AEI Income & Growth Fund 25 LLC's accelerated liquidation and significant property sales in 2025 directly impact its Limited Members, who saw a substantial increase in distributions to $5,870,999. This move signals the winding down of the fund, shifting focus from property acquisition and management to asset disposition. For investors, the estimated unit value of $567 per unit as of December 31, 2025, provides a benchmark for their illiquid holdings. The fund's reliance on a few major tenants, with five contributing 94% of rental income in 2025, highlights a concentration risk that could affect future distributions during the remaining liquidation phase.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its ongoing liquidation process and high tenant concentration. Five major tenants contributed 94% of total rental income in 2025, meaning any failure of a major tenant could materially affect net income and cash distributions during the final disposition phase. While the company has no direct employees and management services are outsourced, the inherent illiquidity of its LLC Units, which are not traded on any market, presents a challenge for investors seeking to exit their positions outside of the limited repurchase program.

Analyst Insight

Investors should closely monitor the ongoing liquidation process and property sales, as these will directly impact future distributions. Given the illiquid nature of the Units and the limited repurchase program, Limited Members should evaluate their long-term investment horizon and potential tax implications of the distributions from asset sales.

Financial Highlights

debt To Equity

0.0

revenue

$5,632,191

operating Margin

N/A

total Assets

$16,680,486

total Debt

$0

net Income

$2,257,995

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• $5,632,191 — Net sale proceeds from three property interests (Received during the year ended December 31, 2025, as part of the liquidation process)
• $2,257,995 — Net gain from property sales (Realized during the year ended December 31, 2025, from the sale of three property interests)
• $5,870,999 — Distributions to Limited Members (Declared for 2025, a significant increase from $1,080,601 in 2024)
• 6 — Number of properties owned (As of December 31, 2025, down from 10 properties at December 31, 2022)
• $16,680,486 — Total cost of properties owned (As of December 31, 2025, reflecting the reduced portfolio)
• 94% — Contribution of major tenants to total rental income (Five tenants contributed this percentage in 2025, indicating high tenant concentration risk)
• 1,120.98 — Units repurchased (On October 1, 2025, at an average price of $502.28 per unit)
• $567 — Estimated value per Unit (As of December 31, 2025, determined by the Managing Member)
• 35,791.585 — Units of limited membership interest outstanding (Owned by nonaffiliates as of June 30, 2025)
• $35,791,585 — Aggregate market value of outstanding Units (As of June 30, 2025, based on sale price since there is no ready market)

Key Players & Entities

• AEI Income & Growth Fund 25 LLC (company) — Registrant and limited liability company
• AEI Fund Management XXI, Inc. (company) — Managing Member of the LLC
• Robert P. Johnson (person) — Previous Chief Executive Officer and sole director of AFM, Special Managing Member until March 31, 2020
• FINRA (regulator) — Financial Industry Regulatory Authority, implemented Rule 2310
• Jared Jewelry Store (company) — Tenant in Concord, NH property
• Piedmont Health Clinic (company) — Tenant in Macon, GA property
• PetSmart, LLC (company) — Tenant in Gonzales, LA property
• Tractor Supply Company (company) — Tenant in Canton, MS property
• Talecris Plasma Resources, Inc. (company) — Tenant in Dallas, TX property
• Iowa Health (company) — Tenant in Riverside, IA property

FAQ

Risk Factors

• Tenant Concentration Risk [high — financial]: In 2025, five major tenants accounted for 94% of the Company's total rental income. This high concentration indicates a significant risk, as the failure of any one of these major tenants could materially impact the Company's net income and cash distributions.
• Market and Economic Conditions [medium — market]: The value of the Company's properties and the rental income they generate are subject to market and economic conditions. Fluctuations in the real estate market or broader economic downturns could negatively affect the Company's financial performance.
• Dependence on Net Leases [medium — financial]: The Company's properties are leased under net leases, where tenants are responsible for most operating expenses. While this structure can reduce the Company's direct costs, it also means the Company's income is heavily reliant on the financial stability and operational success of its tenants.
• Liquidation Process Uncertainty [medium — financial]: As the Company is in its final liquidation process, the timing and success of property dispositions are critical. Delays or lower-than-expected sale prices for the remaining six properties could impact the final distributions to Limited Members.
• Limited Indebtedness Policy [low — financial]: The Company's policy of acquiring properties without indebtedness and not financing future acquisitions with debt limits its growth potential but also reduces financial leverage risk. However, the ability to incur short-term debt for cash flow requirements or refurbishing properties introduces some financial risk.

Industry Context

The commercial real estate sector is characterized by its cyclical nature, influenced by economic conditions, interest rates, and local market dynamics. Companies like AEI Income & Growth Fund 25 LLC typically operate by acquiring properties, generating rental income, and eventually selling them. The current trend in the industry involves adapting to evolving tenant needs, the impact of e-commerce on retail spaces, and the increasing importance of sustainability.

Regulatory Implications

As a limited liability company operating in real estate, AEI Income & Growth Fund 25 LLC is subject to various state and federal regulations concerning securities offerings, property management, and taxation. The company's liquidation process must adhere to the terms of its operating agreement and relevant legal frameworks to ensure fair distribution of assets to its members.

What Investors Should Do

1. Monitor property disposition progress
2. Evaluate tenant concentration risk
3. Understand the estimated Unit value
4. Review distribution history and projections

Key Dates

• 2002-06-24: Company organized — Marks the legal inception of AEI Income & Growth Fund 25 LLC.
• 2003-09-11: Company commenced operations — Indicates the start of the Company's investment activities after meeting minimum subscription requirements.
• 2024-01-02: Premier Diagnostic Imaging Center property sold — One of the property dispositions, impacting the portfolio size and asset base.
• 2025-10-01: Company repurchased 1,120.98 units — Demonstrates a capital return to members and a reduction in outstanding units during the liquidation phase.
• 2025-12-31: Company owned interests in six properties — Reflects the significant reduction in the property portfolio as part of the liquidation process.
• 2025-12-31: Estimated value per Unit determined — Provides an indication of the residual value for Limited Members as the liquidation progresses.

Glossary

Net Lease

A lease agreement where the tenant is responsible for paying all property operating expenses, including taxes, insurance, and maintenance, in addition to rent. (The Company's properties are leased under net leases, which shifts operational cost burdens to tenants and impacts the Company's revenue and expense structure.)

Limited Members

Purchasers of LLC Units who are investors in the Company, contributing capital and entitled to distributions. (These are the primary investors in the Fund, and their distributions are a key focus, especially during the liquidation process.)

Managing Member

AEI Fund Management XXI, Inc. (AFM), responsible for the overall management and decision-making of the Company, including property disposition. (The Managing Member directs the liquidation strategy and property sales, influencing the timing and outcome of distributions to Limited Members.)

LLC Units

Limited membership interests in the Company, representing ownership stakes sold to investors. (The value and distribution of proceeds related to these units are central to the Company's financial reporting and investor returns.)

Net Sale Proceeds

The amount of cash received from the sale of an asset after deducting any selling expenses. (This figure is crucial for understanding the cash generated from property dispositions, which directly funds distributions to Limited Members.)

Liquidation Process

The process of winding down a company's operations, selling its assets, and distributing the proceeds to its stakeholders. (The Company is actively engaged in this process, making the sale of properties and distribution of capital the primary focus of its current activities.)

Year-Over-Year Comparison

The Company's financial profile has significantly shifted towards liquidation. Total assets, represented by the cost of properties, have decreased from $27,323,733 as of December 31, 2022, to $16,680,486 as of December 31, 2025, reflecting substantial property dispositions. Correspondingly, net sale proceeds and net gains from property sales have dramatically increased in 2025 ($5,632,191 and $2,257,995, respectively) compared to prior years, driving a significant rise in distributions to Limited Members from $1,080,601 in 2024 to $5,870,999 in 2025.

Key Financial Figures

• $35,791,585 — e is no ready market for such Units) of $35,791,585. DOCUMENTS INCORPORATED BY REFERENCE
• $50,000,000 — ers. The Company offered for sale up to $50,000,000 of limited membership interests (the "U
• $1,000 — nterests (the "Units") (50,000 Units at $1,000 per Unit) pursuant to a registration st
• $1,500,000 — nimum subscriptions of 1,500 LLC Units ($1,500,000) were accepted. The offering terminated
• $42,434,763 — d Managing Members contributed funds of $42,434,763 and $1,000, respectively. The Company
• $36,389,018 — in eight properties, at a total cost of $36,389,018. The balance of the subscription procee
• $27,323,733 — in ten properties with a total cost of $27,323,733. During the year ended December 31, 202
• $1,217,438 — December 31, 2023 the Company expended $1,217,438 to purchase one additional property int
• $1,418,133 — rests and received net sale proceeds of $1,418,133 and $406,688 which resulted in net gain
• $406,688 — ved net sale proceeds of $1,418,133 and $406,688 which resulted in net gains of $44,186
• $44,186 — $406,688 which resulted in net gains of $44,186 and $711, respectively. During the year
• $711 — ch resulted in net gains of $44,186 and $711, respectively. During the year ended De
• $1,086,000 — , the Company recorded an impairment of $1,086,000 on one property interest, which was sub
• $5,632,191 — rests and received net sale proceeds of $5,632,191, which resulted in a net gain of $2,257
• $2,257,995 — 32,191, which resulted in a net gain of $2,257,995. As of December 31, 2025, the Company o

Filing Documents

• aei25-20251231.htm (10-K) — 564KB
• ex31-125.htm (EX-31.1) — 8KB
• ex31-225.htm (EX-31.2) — 8KB
• ex3225.htm (EX-32) — 9KB
• 0001185198-26-000003.txt ( ) — 2936KB
• aei25-20251231.xsd (EX-101.SCH) — 32KB
• aei25-20251231_def.xml (EX-101.DEF) — 105KB
• aei25-20251231_lab.xml (EX-101.LAB) — 194KB
• aei25-20251231_pre.xml (EX-101.PRE) — 117KB
• aei25-20251231_cal.xml (EX-101.CAL) — 27KB
• aei25-20251231_htm.xml (XML) — 338KB

BUSINESS

ITEM 1. BUSINESS. AEI Income & Growth Fund 25 LLC (the "Company" or the "Registrant") is a limited liability company which was organized pursuant to the laws of the State of Delaware on June 24, 2002. The registrant is comprised of AEI Fund Management XXI, Inc. ("AFM"), as the Managing Member, Robert P. Johnson, the previous Chief Executive Officer and sole director of AFM, as the Special Managing Member until his withdrawal date effective March 31, 2020, and purchasers of LLC Units as Limited Members. The Company offered for sale up to $50,000,000 of limited membership interests (the "Units") (50,000 Units at $1,000 per Unit) pursuant to a registration statement effective May 13, 2003. The Company commenced operations on September 11, 2003 when minimum subscriptions of 1,500 LLC Units ($1,500,000) were accepted. The offering terminated May 12, 2005 when the extended offering period ended. The Company received subscriptions for 42,434.763 LLC Units. Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $42,434,763 and $1,000, respectively. The Company was organized to acquire existing and newly constructed commercial properties, to lease such properties to tenants under net leases, to hold such properties and to eventually sell such properties. From subscription proceeds, the Company purchased fifteen properties, including partial interests in eight properties, at a total cost of $36,389,018. The balance of the subscription proceeds was applied to organization and syndication costs. The properties are commercial, single tenant buildings leased under net leases. The Company's properties were purchased without any indebtedness. The Company will not finance properties in the future to obtain proceeds for new property acquisitions. If it is required to do so, the Company may incur short-term indebtedness to finance day-to-day cash flow requirements (including cash flow necessary to repurchase Units). The Company

BUSINESS. (Continued)

ITEM 1. BUSINESS. (Continued) Leases Although there are variations in the specific terms of the leases, the following is a summary of the general terms of the Company's leases. The properties are leased to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Company is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 8.1 to 20 years, except for the Premier Diagnostic Imaging Center in Terre Haute, Indiana, which had a remaining primary term of 7.8 years. The property in Terre Haute, Indiana was sold on January 2, 2024. The leases provide the tenants with one to five five-year renewal options subject to the same terms and conditions as the primary term except for the Talecris Plasma Facility in Dallas, Texas which has one ten-year renewal option. The leases provide for base annual rental payments, payable in monthly installments, and contain rent clauses which entitle the Company to receive additional rent in future years based on stated rent increases. Property Activity During the Last Three Years As of December 31, 2022, the Company owned interests in ten properties with a total cost of $27,323,733. During the year ended December 31, 2023 the Company expended $1,217,438 to purchase one additional property interest. During the years ended December 31, 2023 and 2024, the Company sold two property interests and received net sale proceeds of $1,418,133 and $406,688 which resulted in net gains of $44,186 and $711, respectively. During the year ended December 31, 2023, the Company recorded an impairment of $1,086,000 on one property interest, which was subsequently sold. During the year ended December 31, 2025, the Company sold three property interests and recei

BUSINESS. (Continued)

ITEM 1. BUSINESS. (Continued) Employees The Company has no direct employees. Management services are performed for the Company by AEI Fund Management, Inc. (the "Management Company" or "AEI"), an affiliate of AFM. The Management Company made reductions to the employee headcount in 2024, which in turn resulted in expense reductions in compensation plans and employee benefit plans. The Management Company believes the people who work for the Company are its most important resources and are critical to its continued success. The Management Company focuses significant attention toward attracting and retaining talented and experienced individuals to manage and support its operations. The Management Company's people are expected to exhibit and promote honest, ethical and respectful conduct in the workplace. All of the Management Company's employees must adhere to a code of conduct that is outlined in AEI's employee handbook which sets standards for appropriate behavior which includes preventing, identifying, reporting and stopping any type of discrimination. Compensation and Benefits The Management Company believes its compensation package and benefits are competitive with others in its industry. In addition to base pay, all eligible employees participate in the Management Company bonus program. The Management Company also offers employees a broad range of benefits, including medical, dental and ancillary health benefits and paid parental leave.

RISK FACTORS

ITEM 1A. RISK FACTORS. Not required for a smaller reporting company.

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS. Not required for a smaller reporting company. 4

CYBERSECURITY

ITEM 1C. CYBERSECURITY. In the past three years and with the guidance of a qualified third-party, the Management Company has made improvements in the cybersecurity program across the Entity, and has developed processes for deterring, detecting, evaluating, and responding to potential cybersecurity incidents. In doing so, the Management Company focuses on its employees, networks, applications and data with a cybersecurity plan, informed by nationally recognized frameworks. The Management Company's third-party advisor has performed cybersecurity risk assessments of its information technology security processes and implemented technologies to lessen risk. Using third party services, the Management Company monitors, scans, assesses, audits, and remediates identified vulnerabilities across its networks, as appropriate. Furthermore, recognizing that the Management Company's employees are an essential line of defense in cybersecurity, it requires employees to participate in training and testing programs through which it provides education on the risk of potential cybersecurity incidents, methods for identification of such incidents and appropriate responses. The Management Company's policies and processes are informed by industry standard practices regarding application security, access management, device protection, network management, and data loss prevention and recovery. The Management Company's cybersecurity incident response plan includes retention of external experts for prompt assistance following discovery of any material incident. This cybersecurity incident response plan is part of its ongoing cybersecurity vulnerability management, and it endeavors to maintain appropriate controls to identify, monitor, analyze and address potential cybersecurity incidents, including potential unauthorized access to its networks and applications, along with detection of potential unusual activity within its networks or applications. Any potential cybersecurity incident is

PROPERTIES

ITEM 2. PROPERTIES. Investment Objectives The Company's investment objectives are to acquire existing or newly-developed commercial properties that provide (i) regular rental income; (ii) growth in lease income through rent escalation provisions; (iii) capital growth through appreciation in the value of properties; (iv) reduced occupancy risks as a result of long-term leases with creditworthy corporate tenants; and (v) passive income that may be offset by eligible passive losses from other investments for tax purposes. The Company does not have a policy, and there is no limitation, as to the amount or percentage of assets that may be invested in any one property. However, to the extent possible, the Managing Members attempt to diversify the properties by tenant and geographic location. Description of Properties The Company's properties are commercial, single tenant buildings. The properties were acquired on a debt-free basis and are leased to tenants under net leases, classified as operating leases. The Company holds an undivided fee simple interest in the properties. The Company's properties are subject to the general competitive conditions incident to the ownership of single tenant investment real estate. Since each property is leased under a longterm lease, there is little competition until the Company decides to sell the property. At this time, the Company will be competing with other real estate owners, on both a national and local level, in attempting to find buyers for the properties. In the event of a tenant default, the Company would be competing with other real estate owners, who have property vacancies, to attract a new tenant to lease the property. The Company's tenants operate in industries that are competitive and can be affected by factors such as changes in regional or local economies, seasonality and changes in consumer preference. The following table is a summary of the properties that the Company acquired and owned as of December 31, 2

PROPERTIES. (Continued)

ITEM 2. PROPERTIES. (Continued) Property Purchase Date Original Property Cost Tenant Annual Lease Payment Annual Rent Per Sq. Ft. Tractor Supply Company Store Canton, MS 11/30/18 $ 3,429,590 Tractor Supply Company $ 242,000 $ 12.67 Talecris Plasma Facility Dallas, TX (50%) 7/31/20 $ 2,746,350 Talecris Plasma Resources, Inc. $ 217,359 $ 43.13 University of Iowa- Riverside Riverside, IA (30%) 8/3/23 $ 1,191,542 Iowa Health $ 78,845 $ 34.72 (1) Does not include acquisition costs that were expensed. The properties listed above with a partial ownership percentage are owned with the following affiliated entities with common ownership: Talecris Plasma Facility in Dallas, Texas (AEI Income & Growth Fund XXII Limited Partnership) and University of Iowa Health Facility in Riverside, Iowa (AEI Healthcare Fund LLC). The Company accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Company's percentage share of the properties' land, building, intangible assets, liabilities, revenues and expenses. At the time the properties were acquired, the remaining primary lease terms varied from 8.1 to 20 years. The leases provide the tenants with one to five five-year renewal options subject to the same terms and conditions as the primary term, except for the Talecris Plasma Facility in Dallas, Texas which has one ten-year renewal option. The leases for the Piedmont Health facility in Macon, Georgia, PetSmart Store in Gonzales, Louisiana, and Jared Jewelry Store in Concord, New Hampshire, were extended to end on June 30, 2031, January 31, 2028 and January 3

PROPERTIES. (Continued)

ITEM 2. PROPERTIES. (Continued) For tax purposes, the Company's properties are depreciated under the Modified Accelerated Cost Recovery System (MACRS). The largest depreciable component of a property is the building which is depreciated using the straight-line method over 39 years. The remaining depreciable component of a property is land improvements which are depreciated using an accelerated method over 15 years. Since the Company has tax-exempt Members, the Company is subject to the rules of Section 168(h)(6) of the Internal Revenue Code which requires a percentage of the properties' depreciable components to be depreciated over longer lives using the straight-line method. In general, the federal tax basis of the properties for tax depreciation purposes equals the book depreciable cost of the properties plus the amortizable cost of the related intangible lease assets, except for properties whose carrying value was reduced by a real estate impairment and properties purchased during 2009 through 2017. Real estate impairments, which are recorded against the book cost of the land and depreciable property, are not recognized for tax purposes. For properties purchased during 2009 through 2017, acquisition expenses that were expensed for book purposes were capitalized and added to the basis of the property for tax depreciation purposes. At December 31, 2025, all properties listed above were 100% occupied.

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS. None.

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK- HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. (a) As of December 31, 2025, there were 1,019 holders of record of the registrant's LLC Units. There is no other class of security outstanding or authorized. The registrant's Units are not a traded security in any market. During the period covered by this report, the Company did not sell any equity securities that are not registered under the Securities Act of 1933. Distributions of $81,452 and $33,421 were declared to the Managing Members and $5,870,999 and $1,080,601 were declared to the Limited Members for 2025 and 2024, respectively. The distributions were made on a quarterly basis and represented Net Cash Flow, as defined in the Operating Agreement, except as discussed below. These distributions should not be compared with dividends paid on capital stock by corporations. (b) Not applicable. 8

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK- HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. (Continued) (c) Pursuant to Section 7.7 of the Operating Agreement, each Limited Member has the right to present Units to the Company for purchase by submitting notice to the Managing Member during January or July of each year. The purchase price of the Units is equal to 80% of the net asset value per Unit, as of the first business day of January or July of each year, as determined by the Managing Member in accordance with the provisions of the Operating Agreement. Units tendered to the Company during January and July may be repurchased on April 1st and October 1st, respectively, of each year subject to the following limitations. The Company will not be obligated to purchase in any year more than 2% of the total number of Units outstanding on January 1 of such year. In no event shall the Company be obligated to purchase Units if, in the sole discretion of the Managing Member, such purchase would impair the capital or operation of the Company. On October 1, 2025, the Company repurchased 1,120.98 units. Small Business Issuer Purchases of Equity Securities Period Total Number of Units Purchased Average Price Paid per Unit Total Number of Units Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Units that May Yet Be Purchased Under the Plans or Programs 10/1/25 to 10/31/25 1,120.98 $502.28 7,764.16 (1) (2) 11/1/25 to 11/30/25 -- -- -- -- 12/1/25 to 12/31/25 -- -- -- -- (1) The Company's repurchase plan is mandated by the Operating Agreement as included in the prospectus related to the original offering of the Units. (2) The Operating Agreement contains annual limitations on repurchases described in the paragraph above and has no expiration date. Other Information Effective April 11, 2016, the Financial Industry Regulatory Authority ("FINRA") implement

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK- HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. (Continued) In determining the estimated value of each property, the Managing Member relied on some or all of the following external information sources, as well as its own experience in the commercial, net leased property industry and knowledge of each property: Opinions of value from real estate brokerage firms Appraisal reports from independent commercial property appraisers Industry market reports from real estate brokerage and appraisal firms Market values from comparable properties listed for sale or recently sold Interviews with real estate brokers and tenants Tenant financial reports and other credit information, where available The per Unit value was the aggregate estimated value of the Company's assets less the Company's liabilities, and less the value attributable to the interest of the Managing Members, divided by the number of Units outstanding. The Company's cash, receivables and liabilities were valued at face value as of September 30, 2025. Each of the Company's properties were valued by dividing their annual rental income as of December 1, 2025 by a capitalization rate the Managing Member believed, based upon the aforementioned valuation process, to be representative of the retail market for the sale of each property. The resulting value for each property was reviewed to determine that it also reflected circumstances that may have been unique to each specific property. For recently acquired properties, an appraisal report received at or near the time of acquisition from an independent commercial property appraiser was used to determine the value of the property. The appraisal report is used to value the property for approximately one year after the date of acquisition. The valuations were estimates only, and were based on a number of assumptions which may not be accurate or complete. In addition, property values a

Properties

Properties $ 18,866,000 $ 23,038,000 Cash 3,509,000 1,578,000 Current liabilities, net of sale proceeds (2,509,000) (477,000) Value attributable to the interest of the Managing Members (199,000) (242,000) Value attributable to the interest of the Limited Members $ 19,667,000 $ 23,897,000 LLC Units outstanding 34,671 36,986 10

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

ITEM 7. 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 Company's financial condition and results of operations, including the following: — Market and economic conditions which affect the value of the properties the Company 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 Members; — resolution by the Managing Members of conflicts with which they may be confronted; — the success of the Managing Members 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 Company operate. Application of Critical Accounting Policies The Company'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 Company'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 re

View Full Filing

View this 10-K filing on SEC EDGAR