A profitable property sale and rising distributions mark the final chapter for the 30-year-old commercial real estate partnership.

March 30, 2026

Strong 2025 Results Driven by Property Sale

AEI Income & Growth Fund XXI Limited Partnership, a Minnesota-based commercial real estate investment vehicle, has announced that its Managing General Partner has decided to begin the final liquidation process by disposing of the fund’s remaining assets. The decision comes as the Partnership reported a sharp increase in net income for the fiscal year ended December 31, 2025, fueled largely by the profitable sale of one of its property interests.

The Partnership, organized in 1994 and operational since 1995, was formed to acquire, lease, and eventually sell commercial properties across the United States under net lease arrangements. It raised the maximum allowed amount of 24 million dollars through the sale of limited partnership units before its offering closed in January 1997. From those proceeds, the fund purchased ten properties, including partial interests in seven, at a total cost of approximately 19.7 million dollars.

As of December 31, 2025, the Partnership held interests in four remaining properties with a combined original cost of roughly 12.6 million dollars. All four were fully occupied at year-end. The portfolio includes a Best Buy store in Eau Claire, Wisconsin, a Dollar Tree in Cincinnati, Ohio, an Advance Auto Parts in Chelsea, Alabama, and a 40 percent interest in a Memorial Hospital facility in Diamondhead, Mississippi.

Net Income Jumps to Over One Million Dollars

Net income surged to approximately 1.06 million dollars, up from roughly 260,000 dollars in 2024. The increase was driven almost entirely by a gain of about 826,000 dollars from the sale of the Partnership’s 40 percent interest in a Jared Jewelry store in Auburn Hills, Michigan. That transaction closed on March 31, 2025, with the fund receiving net proceeds of approximately 1.35 million dollars.

Rental income declined modestly to roughly 922,000 dollars from about 1 million dollars in 2024, attributed to the loss of revenue from the sold property, though partially offset by a rent increase on one remaining property. Management expects rental income of approximately 896,000 dollars in 2026.

Administration costs paid to the affiliated management company fell from about 156,000 dollars to approximately 112,000 dollars, reflecting headcount reductions made in 2024. However, expenses paid to unrelated third parties rose from around 75,000 dollars to about 124,000 dollars, primarily due to timing of tax and audit services.

Rising Distributions and Unit Repurchases

Distributions to partners increased significantly. The Partnership declared total distributions of roughly 872,000 dollars, compared to approximately 693,000 dollars the prior year. Limited partners received about 864,000 dollars, translating to approximately 53.15 dollars per unit — up from 40.17 dollars per unit in 2024.

The fund also repurchased approximately 1,106 units from 46 limited partners for about 795,000 dollars, funded by net sales proceeds, at an average price of roughly 718 dollars per unit. No units were repurchased in 2024. Outstanding units fell from approximately 17,077 to about 15,971 as a result.

The estimated value per unit stood at 754 dollars as of December 31, 2025, derived using capitalization rates applied to annual rental income, supplemented by independent appraisals, brokerage opinions, and comparable sales data.

Balance Sheet and Lease Developments

Total assets decreased to approximately 9.4 million dollars from about 10.1 million dollars, reflecting the property sale and ongoing depreciation. Cash on hand more than doubled to roughly 612,000 dollars. Total partners’ capital declined to about 9.2 million dollars, as distributions and unit repurchases more than offset net income.

In a notable lease development, the Partnership extended the Dollar Tree lease in Cincinnati for five additional years through January 2031, with annual rent scheduled to increase to approximately 127,000 dollars. Minimum future rent payments across all properties totaled roughly 2.6 million dollars at year-end.

Concentration Risk and Road Ahead

The fund’s four major tenants — Best Buy, Dollar Tree, Advance Auto Parts, and Memorial Hospital — collectively accounted for 97 percent of total rental income in 2025, underscoring meaningful concentration risk. Management acknowledged that any failure by these key tenants could materially affect net income and distributions.

With the Managing General Partner now moving toward final liquidation, remaining limited partners can expect the fund to continue disposing of its four remaining properties in an orderly fashion. The Partnership has stated it will not incur new debt for acquisitions and will distribute sale proceeds in accordance with the Partnership Agreement.