AEI Income & Growth Fund XXII Reports Improved Net Income and Stable Rental Income for First Half of 2025

AEI Income & Growth Fund XXII Limited Partnership reported its financial results for the six months ending June 30, 2025, showing a net income of $11,210, a significant improvement compared to a net loss of $34,977 for the same period in 2024. The Partnership's rental income remained stable, totaling $219,843, slightly up from $219,039 in the prior year. Total expenses decreased to $217,758 from $256,728, primarily due to reduced partnership administration expenses from affiliated parties, which fell from $64,804 to $37,727. This reduction in expenses contributed to the Partnership's positive operating income of $2,085, compared to an operating loss of $37,689 in the previous year.

The Partnership's total assets decreased to $6,185,967 as of June 30, 2025, down from $6,609,145 at the end of 2024. This decline was largely attributed to a reduction in cash reserves, which fell to $632,041 from $914,846. The decrease in cash was influenced by distributions paid to partners and cash used for the repurchase of partnership units, which totaled $271,858 during the first half of 2025. The total partners' capital also saw a decline, dropping to $6,058,921 from $6,456,623, reflecting the impact of these distributions and unit repurchases.

In terms of operational developments, the Partnership repurchased 486.25 units from limited partners on April 1, 2025, which increased the ownership interest of remaining limited partners. The Partnership declared distributions of $137,054 for the first half of 2025, slightly lower than the $138,440 declared in the same period of 2024. The distributions per limited partnership unit were $11.55 for 2025, compared to $11.43 in 2024. The Partnership's weighted average units outstanding decreased to 11,263 from 11,749, reflecting the repurchase activity.

Looking ahead, the Partnership anticipates recognizing approximately $418,000 in rental income for the full year 2025, based on scheduled rents for properties owned as of July 31, 2025. Management noted that while inflation has not significantly impacted income from operations, it could affect tenants' ability to pay rent, potentially reducing net cash flow available for distributions. The Partnership remains focused on maintaining stable distribution rates and managing its cash flow effectively to meet ongoing obligations. Additionally, in July 2025, the Partnership completed the sale of its 65% interest in an Advance Auto Parts Store in Indianapolis, generating net proceeds of approximately $925,000, which is expected to further enhance liquidity.