Aei Income & Growth Fund Xxi LTD Partnership
AEI Income & Growth Fund XXI Ltd Partnership is a U.S. real estate partnership that acquires and operates income-producing properties and generates returns primarily from rental income and property cash flows. Upon acquiring properties, it allocates purchase price between land/buildings and lease-related intangibles such as above- and below-market in-place leases, reflecting a business model focused on stabilized, leased assets. The partnership’s reported results are therefore closely tied to tenant lease terms, market rent movements, and property-level operating performance. It also evaluates properties for impairment when conditions indicate carrying values may not be recoverable, linking performance to local real estate market fundamentals.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRental income and related property-level operations from owned, leased real estate.
Economic effects of above/below-market leases and tenant-related recoveries tied to lease structures.
Gains/losses and other income items associated with dispositions of properties held for sale.
Customers
The partnership’s direct customers are tenants that lease space in the properties it owns, with demand driven by location, property quality, and lease economics versus prevailing market rents. Because acquired properties may include in-place leases, tenant retention and the stability of contractual rent streams are central to cash flow predictability. Tenants effectively “buy” occupancy and operating reliability, while the partnership seeks to capture income and potential rent resets as leases roll. Customer concentration can matter at the property level, where a single large tenant departure can create vacancy and require leasing commissions and tenant improvements to re-lease space.
Occupiers already under contract at acquisition; they provide immediate rental cash flow and reduce initial leasing risk.
Existing tenants extending leases; they help preserve occupancy and limit commissions and tenant improvement spend.
New occupiers signed after expirations or vacancies; they drive re-leasing spreads and absorption but require upfront leasing costs.
Geography
The partnership operates in the United States, with performance primarily influenced by local property market conditions where its assets are located. The provided excerpts do not disclose an authoritative revenue-by-geography table or specific state/metro concentrations, so geographic exposure cannot be quantified from the available information. Even without disclosed splits, U.S. regional differences in supply, demand, and capitalization rates can materially affect valuations, leasing spreads, and impairment risk. Geographic concentration (if present) would increase sensitivity to local economic cycles and tenant demand in those markets.
Risks
A central company-specific risk is valuation and estimation risk in allocating purchase price to land/buildings and lease-related intangibles, which relies on assumptions such as market rents, discount rates, and capitalization rates; errors can distort reported income through amortization and rental income adjustments. The partnership is also exposed to impairment risk if property cash flows weaken or market values decline, potentially leading to write-downs. Tenant-related risks—credit deterioration, lease terminations, and vacancy—can reduce rental income and trigger accelerated recognition of unamortized lease intangibles. More broadly, real estate cycles, interest rate changes (affecting cap rates and financing costs), and local supply/demand shifts can pressure valuations and leasing economics.
Fair values rely on assumptions (market rents, discount/cap rates); errors can misstate rental income and amortization.
Exposure: Acquired properties with above/below-market and in-place lease intangibles
If probability-weighted undiscounted cash flows or fair value less costs to sell fall below carrying value, impairment losses reduce asset values and earnings.
Exposure: Long-lived assets held and operated or held for sale
Termination triggers recognition of remaining unamortized above/below-market lease values and in-place lease assets through rental income/expense adjustments.
Exposure: Properties with significant in-place lease intangible balances
Accounting
Judgemental itemsDetermines intangible assets/liabilities and the pattern of rental income adjustments via amortization.
Impact: Can shift reported rental income and net income across periods
Includes direct costs (commissions, tenant improvements) and opportunity costs amortized over lease terms.
Impact: Affects timing of expense recognition and comparability across acquisitions
Held-and-operate uses probability-weighted undiscounted cash flows; held-for-sale uses fair value less cost to sell.
Impact: Potentially material write-downs when market conditions deteriorate
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Last updated: 11/08/2026