AEI Income & Growth Fund XXI Reports Significant Net Income Increase to $879,343 for Q1 2025

AEI Income & Growth Fund XXI Limited Partnership reported significant financial performance for the three months ending March 31, 2025, with a net income of $879,343, a substantial increase from $54,609 in the same period of the previous year. This increase was primarily driven by a gain on the sale of real estate amounting to $825,611, which was not present in the prior year. Rental income remained relatively stable, totaling $249,991 compared to $249,753 in the previous year, reflecting a slight increase attributed to a rent hike on one of the properties.

The Partnership's total expenses for the first quarter of 2025 were $197,527, slightly higher than the $196,013 reported in 2024. Notably, expenses related to partnership administration from affiliates decreased significantly from $45,803 to $29,275, while expenses from unrelated parties increased from $22,135 to $52,027, largely due to the timing of tax and audit services. The overall operating income for the period was $52,464, down from $53,740 in the previous year, indicating a marginal decline in operational efficiency.

In terms of cash flow, the Partnership experienced a notable increase in cash balance, rising by $1,370,231 to $1,610,290 as of March 31, 2025, primarily due to proceeds from the sale of real estate. The cash flow from operating activities also improved, increasing from $155,963 in 2024 to $197,857 in 2025, attributed to timing differences in payments and collections. The Partnership declared distributions of $173,233 for both periods, with limited partners receiving the majority of the allocation.

Strategically, the Partnership completed the sale of its 40% interest in a property in Auburn Hills, Michigan, which closed on March 31, 2025. This transaction not only generated significant cash flow but also resulted in a net gain that positively impacted the overall financial results for the quarter. The Partnership continues to manage its properties with a focus on maintaining stable distributions and exploring opportunities for further acquisitions or sales that align with its investment strategy.

Looking ahead, the Partnership anticipates recognizing approximately $922,000 in rental income for the year based on scheduled rents as of April 30, 2025. Management remains cautious about potential impacts from economic conditions, including inflation and interest rates, which could affect tenant performance and, consequently, rental income. The Partnership's ongoing strategy includes monitoring market conditions and tenant stability to ensure continued financial health and operational success.