AEI Income & Growth Fund XXII Reports Decline in Rental and Net Income for First Half of 2026

AEI Income & Growth Fund XXII Limited Partnership reported its financial results for the six months ended June 30, 2026, revealing a decline in both rental income and net income compared to the same period in the previous year. The Partnership generated rental income of $193,457, down from $219,843 in 2025, primarily due to the sale of one property in July 2025. Net income for the first half of 2026 was $7,400, a decrease from $11,210 in 2025. The net income per limited partnership unit also fell to $0.65 from $0.95 year-over-year.

The Partnership's total assets decreased to $5,033,827 as of June 30, 2026, from $5,180,225 at the end of 2025. This decline was attributed to a reduction in net real estate investments, which fell to $4,581,075 from $4,707,322, largely due to increased accumulated depreciation and amortization. Current liabilities also decreased to $124,496 from $148,932, reflecting a reduction in distributions payable and unearned rent.

Operationally, the Partnership did not engage in any property acquisitions or sales during the reporting period, as it is in the process of final liquidation. The management noted that the decrease in rental income was partially offset by rent increases on two properties effective in mid-2025. The Partnership's cash balance at the end of the period was $452,752, down from $472,903 at the end of 2025, primarily due to distributions paid to partners exceeding cash generated from operations.

In terms of expenses, the Partnership reported a decrease in partnership administration expenses from affiliated parties, which totaled $34,565 in 2026 compared to $37,727 in 2025. Similarly, expenses from unrelated parties decreased to $44,610 from $55,097, reflecting lower management costs as fewer properties are being managed. Interest income also declined significantly to $3,928 from $9,125 year-over-year.

Looking ahead, the Partnership anticipates recognizing approximately $389,000 in rental income for the remainder of 2026 based on scheduled rents. Management remains cautious about the impact of economic conditions, including inflation and interest rates, on tenant performance and overall cash flow. The Partnership continues to focus on maintaining stable distributions while navigating the final stages of its liquidation process.