AEI Income & Growth Fund XXII Reports Q3 2025 Net Income of $225,143

AEI Income & Growth Fund XXII Limited Partnership reported its financial results for the third quarter of 2025, revealing a net income of $225,143 for the three months ending September 30, compared to a modest net income of $3,276 during the same period in 2024. For the nine months ended September 30, 2025, the Partnership recorded a net income of $236,353, a significant recovery from a net loss of $31,701 in the prior year. The increase in profitability was primarily driven by a gain on the sale of real estate, which contributed $200,237 to other income, alongside a rise in interest income to $16,840 from $4,007 year-over-year.

The Partnership's total assets decreased to $6,339,219 as of September 30, 2025, down from $6,609,145 at the end of 2024. This decline was largely attributed to a reduction in real estate investments, particularly in land and buildings, which saw a combined decrease of approximately $1.5 million. However, cash reserves increased significantly to $1,568,774, up from $914,846, reflecting improved cash flow management and proceeds from the sale of real estate.

Operationally, the Partnership's rental income for the nine months ended September 30, 2025, was $320,654, a slight decrease from $329,070 in the same period of 2024. This decline was influenced by the sale of a property in July 2025, although it was partially offset by rent increases from two existing properties. The Partnership's total expenses also decreased to $301,378 from $364,778, primarily due to lower partnership administration expenses from affiliated parties, which fell to $58,254 from $91,682.

In terms of strategic developments, the Partnership successfully closed the sale of its 65% interest in a property leased to Advance Auto Parts in Indianapolis, Indiana, generating net proceeds of $920,594. This transaction not only provided a substantial cash influx but also allowed the Partnership to realize a gain that significantly bolstered its financial performance for the quarter. Additionally, the Partnership repurchased 486.25 units from limited partners for $269,139, which increased the ownership interest of remaining partners.

Looking ahead, the Partnership anticipates recognizing approximately $418,000 in rental income for the remainder of 2025, based on scheduled rents for properties owned as of October 31, 2025. Management remains cautious about potential impacts from market conditions, including inflation and interest rates, which could affect tenant performance and rental income. However, the ongoing cash flow from properties and recent asset sales are expected to support continued distributions and operational obligations.