10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:  September 30, 2022

Commission File Number:  000-24003

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

State of Minnesota	41-1848181
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
30 East 7th Street, Suite 1300 St. Paul, Minnesota 55101	(651) 227-7333
(Address of principal executive offices)	(Registrant’s telephone number)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
NONE	NONE	NONE

Securities registered pursuant to Section 12(g) of the Act:

Limited Partnership Units

(Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes    ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes    ☐ No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☐ Large accelerated filer	☐ Accelerated filer
☒ Non-accelerated filer	☒ Smaller reporting company
☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes    ☒ No

As of October 31, 2022, there were 11,749.37 Units of limited partnership interest outstanding and owned by nonaffiliates of the registrant.

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

INDEX

				Page
Part I – Financial Information
	Item 1.	Financial Statements (unaudited):
		Balance Sheets as of September 30, 2022 and December 31, 2021		3
		Statements for the Periods ended September 30, 2022 and 2021:
			Income	4
			Cash Flows	5
			Changes in Partners’ Capital	6
		Condensed Notes to Financial Statements		7 – 9
	Item 2.	Management's Discussion and Analysis of Financial
			Condition and Results of Operations	9 - 15
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		15
	Item 4.	Controls and Procedures		15
Part II – Other Information
	Item 1.	Legal Proceedings		15
	Item 1A.	Risk Factors		15
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		16
	Item 3.	Defaults Upon Senior Securities		16
	Item 4.	Mine Safety Disclosures		16
	Item 5.	Other Information		16
	Item 6.	Exhibits		16
Signatures				17

2

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

BALANCE SHEETS

ASSETS

		September 30,		December 31,
		2022		2021
		(unaudited)
Current Assets:
Cash	$	340,906	$	1,291,115
Receivables		0		20,191
Total Current Assets		340,906		1,311,306
Real Estate Investments:
Land		1,966,950		1,867,879
Buildings		5,315,188		5,543,826
Acquired Intangible Lease Assets		1,415,859		1,181,359
Real Estate Held for Investment, at cost		8,697,997		8,593,064
Accumulated Depreciation and Amortization		(1,597,400)		(2,641,740)
Real Estate Held for Investment, Net		7,100,597		5,951,324
Total Assets	$	7,441,503	$	7,262,630

LIABILITIES AND PARTNERS' CAPITAL

Current Liabilities:
Payable to AEI Fund Management, Inc.	$	168,046	$	16,784
Distributions Payable		103,813		105,669
Unearned Rent		14,314		0
Total Current Liabilities		286,173		122,453
Partners’ Capital (Deficit):
General Partners		5,071		(7,021)
Limited Partners – 24,000 Units authorized;    11,749.37 and 12,063.23 Units issued and outstanding    as of 9/30/2022 and 12/31/2021		7,150,259		7,147,198
Total Partners' Capital		7,155,330		7,140,177
Total Liabilities and Partners' Capital	$	7,441,503	$	7,262,630

The accompanying Condensed Notes to Financial Statements are an integral part of these statements.

3

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

STATEMENTS OF INCOME

(unaudited)

		Three Months Ended September 30				Nine Months Ended September 30
		2022		2021		2022		2021
Rental Income	$	100,651	$	127,442	$	324,621	$	381,389
Expenses:
Partnership Administration – Affiliates		26,174		28,110		81,409		87,091
Partnership Administration and Property    Management – Unrelated Parties		8,590		12,787		56,161		44,560
Depreciation and Amortization		46,246		68,555		155,422		205,665
Total Expenses		81,010		109,452		292,992		337,316
Operating Income		19,641		17,990		31,629		44,073
Other Income:
Gain on Sale of Real Estate		0		0		524,668		0
Interest Income		5,446		366		6,974		1,167
Total Other Income		5,446		366		531,642		1,167
Net Income	$	25,087	$	18,356	$	563,271	$	45,240
Net Income Allocated:
General Partners	$	3,091	$	550	$	23,839	$	1,357
Limited Partners		21,996		17,806		539,432		43,883
Total	$	25,087	$	18,356	$	563,271	$	45,240
Net Income per Limited Partnership Unit	$	1.87	$	1.45	$	45.51	$	3.53
Weighted Average Units Outstanding –       Basic and Diluted		11,749		12,307		11,853		12,435

The accompanying Condensed Notes to Financial Statements are an integral part of these statements.

4

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

(unaudited)

		Nine Months Ended September 30
		2022		2021
Cash Flows from Operating Activities:
Net Income	$	563,271	$	45,240
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization		202,122		252,366
Gain on Sale of Real Estate		(524,668)		0
(Increase) Decrease in Receivables		20,191		0
Increase (Decrease) in Payable to    AEI Fund Management, Inc.		151,262		17,328
Increase (Decrease) in Unearned Rent		14,314		20,718
Total Adjustments		(136,779)		290,412
Net Cash Provided By (Used For)    Operating Activities		426,492		335,652
Cash Flows from Investing Activities:
Investments in Real Estate		(3,027,474)		0
Proceeds from Sale of Real Estate		2,200,747		0
Net Cash Provided By (Used For)    Investing Activities		(826,727)		0
Cash Flows from Financing Activities:
Distributions Paid to Partners		(315,151)		(325,572)
Repurchase of Partnership Units		(234,823)		(288,927)
Net Cash Provided By (Used For)    Financing Activities		(549,974)		(614,499)
Net Increase (Decrease) in Cash		(950,209)		(278,847)
Cash, beginning of period		1,291,115		1,802,014
Cash, end of period	$	340,906	$	1,523,167

The accompanying Condensed Notes to Financial Statements are an integral part of these statements.

5

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

(unaudited)

		General Partners		Limited Partners		Total	Limited Partnership Units Outstanding
Balance, December 31, 2020	$	8,557	$	7,965,924	$	7,974,481	12,691.78
Distributions Declared		(3,279)		(106,001)		(109,280)
Net Income		444		14,368		14,812
Balance, March 31, 2021		5,722		7,874,291		7,880,013	12,691.78
Distributions Declared		(3,210)		(103,803)		(107,013)
Repurchase of Partnership Units		(2,889)		(286,038)		(288,927)	(385.24)
Net Income		363		11,709		12,072
Balance, June 30, 2021		(14)		7,496,159		7,496,145	12,306.54
Distributions Declared		(3,210)		(103,803)		(107,013)
Net Income		550		17,806		18,356
Balance, September 30, 2021	$	(2,674)	$	7,410,162	$	7,407,488	12,306.54
Balance, December 31, 2021	$	(7,021)	$	7,147,198	$	7,140,177	12,063.23
Distributions Declared		(3,170)		(102,498)		(105,668)
Net Income		13,281		312,177		325,458
Balance, March 31, 2022		3,090		7,356,877		7,359,967	12,063.23
Distributions Declared		(3,115)		(100,699)		(103,814)
Repurchase of Partnership Units		(2,348)		(232,475)		(234,823)	(313.86)
Net Income		7,467		205,259		212,726
Balance, June 30, 2022		5,094		7,228,962		7,234,056	11,749.37
Distributions Declared		(3,114)		(100,699)		(103,813)
Net Income		3,091		21,996		25,087
Balance, September 30, 2022	$	5,071	$	7,150,259	$	7,155,330	11,749.37

The accompanying Condensed Notes to Financial Statements are an integral part of these statements.

6

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

(unaudited)

(1)  The condensed statements included herein have been prepared by the registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of operations for the interim period, on a basis consistent with the annual audited statements. The adjustments made to these condensed statements consist only of normal recurring adjustments. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations, although the registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the summary of significant accounting policies and notes thereto included in the registrant’s latest annual report on Form 10K.

(2)  Organization –

AEI Income & Growth Fund XXII Limited Partnership (“Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner. The Estate of Robert P. Johnson serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Robert P. Johnson Trust and Patricia Johnson own a majority interest. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership.

(3)  Recently Issued Accounting Pronouncements –

In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Partnership would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance.

Other accounting standards that have been issued or proposed by the FASB are currently not applicable to the Partnership or are not expected to have a significant impact on the Partnership’s financial position, results of operations and cash flows.

7

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

(4)  Real Estate Investments –

In February 2022, the Partnership entered into an agreement to sell its 33% interest in the Best Buy store in Lake Geneva, Wisconsin to an unrelated third party. On March 29, 2022, the sale closed with the Partnership receiving net proceeds of $1,438,654, which resulted in a net gain of $319,006. At the time of sale, the cost and related accumulated depreciation was $2,022,246 and $902,598, respectively.

In June 2022, the Partnership entered into an agreement to sell its 28% interest in the Staples store in Clermont, Florida to an unrelated third party. On June 30, 2022, the sale closed with the Partnership receiving net proceeds of $762,093, which resulted in a net gain of $205,662. At the time of sale, the cost and related accumulated depreciation was $900,295 and $343,864, respectively.

In September 2022, the Partnership purchased a 100% interest in the DaVita property in Hempstead, TX for $3,027,474. The Partnership allocated $351,453 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles of $273,715 and above-market lease intangibles of $77,738. The property is leased to Bollinger Dialysis, LLC under a lease agreement with a remaining primary term of approximately 7.75 years (as of date of purchase) and annual rent of $182,209.

(5)  Payable to AEI Fund Management, Inc. –

AEI Fund Management, Inc. performs the administrative and operating functions for the Partnership. The payable to AEI Fund Management represents the balance due for those services. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

(6)  Partners’ Capital –

For the nine months ended September 30, 2022 and 2021, the Partnership declared distributions of $313,295 and $323,306, respectively. The Limited Partners were allocated distributions of $303,896 and $313,607 and the General Partners were allocated distributions of $9,399 and $9,699 for the periods, respectively. The Limited Partners' distributions represented $25.64 and $25.22 per Limited Partnership Unit outstanding using 11,853 and 12,435 weighted average Units in 2022 and 2021, respectively. The distributions represented $25.64 and $3.53 per Unit of Net Income and $0 and $21.69 per Unit of return of capital in 2022 and 2021, respectively.

8

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

(6)  Partners’ Capital (Continued) –

On April 1, 2022, the Partnership repurchased a total of 313.86 Units for $232,475 from 21 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. For the nine months ended September 30, 2021, the Partnership repurchased a total of 385.24 Units for $286,038 from 31 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. The repurchases increase the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $2,348 and $2,889 in 2022 and 2021, respectively.

(7)  Fair Value Measurements –

As of September 30, 2022 and December 31, 2021, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS.

This section contains "forward-looking statements" which represent management's expectations or beliefs concerning future events, including statements regarding anticipated application of cash, expected returns from rental income, growth in revenue, the sufficiency of cash to meet operating expenses, rates of distribution, and other matters. These, and other forward-looking statements, should be evaluated in the context of a number of factors that may affect the Partnership's financial condition and results of operations, including the following:

—

Market and economic conditions which affect the value of the properties the Partnership owns and the cash from rental income such properties generate;

—

the federal income tax consequences of rental income, deductions, gain on sales and other items and the effects of these consequences for the Partners;

—

resolution by the General Partners of conflicts with which they may be confronted;

—

the success of the General Partners of locating properties with favorable risk return characteristics;

—

the effect of tenant defaults; and

—

the condition of the industries in which the tenants of properties owned by the Partnership operate.

9

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Application of Critical Accounting Policies

The Partnership’s financial statements have been prepared in accordance with US GAAP. Preparing the financial statements requires management to use judgment in the application of these accounting policies, including making estimates and assumptions. These judgments will affect the reported amounts of the Partnership’s assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and will affect the reported amounts of revenue and expenses during the reporting periods. It is possible that the carrying amount of the Partnership’s assets and liabilities, or the results of reported operations, will be affected if management’s estimates or assumptions prove inaccurate.

Management of the Partnership evaluates the following accounting estimates on an ongoing basis, and has discussed the development and selection of these estimates and the management discussion and analysis disclosures regarding them with the managing partner of the Partnership.

Allocation of Purchase Price of Acquired Properties

Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the relative fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset.

The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income.

10

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The determination of the relative fair values of the assets and liabilities acquired will require the use of significant assumptions with regard to the current market rental rates, rental growth rates, discount and capitalization rates, interest rates and other variables. If management’s estimates or assumptions prove inaccurate, the result would be an inaccurate allocation of purchase price, which could impact the amount of reported net income.

Carrying Value of Properties

Properties are carried at original cost, less accumulated depreciation and amortization. The Partnership tests long-lived assets for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, management determines whether impairment has occurred by comparing the property’s probability-weighted future undiscounted cash flows to its current carrying value. For properties held for sale, management determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. Changes in these assumptions or analysis may cause material changes in the carrying value of the properties.

Allocation of Expenses

AEI Fund Management, Inc. allocates expenses to each of the funds they manage primarily on the basis of the number of hours devoted by their employees to each fund’s affairs. They also allocate expenses at the end of each month that are not directly related to a fund’s operations based upon the number of investors in the fund and the fund’s capitalization relative to other funds they manage. The Partnership reimburses these expenses subject to detailed limitations contained in the Partnership Agreement.

11

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Factors Which May Influence Results of Operations

The Partnership is not aware of any material trends or uncertainties, other than national economic conditions affecting real estate generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues and investment property value. However, due to the outbreak and continuing effect the coronavirus (COVID-19) in the U.S. and globally, our tenants and operating partners may be impacted.

Results of Operations

For the nine months ended September 30, 2022 and 2021, the Partnership recognized rental income of $324,621 and $381,389, respectively. In 2022, rental income decreased due to the sale of two properties. This decrease was partially offset by a rent increase on two properties. Based on the scheduled rent for the properties owned as of October 31, 2022, the Partnership expects to recognize rental income of approximately $462,000 in 2022.

For the nine months ended September 30, 2022 and 2021, the Partnership incurred Partnership administration expenses from affiliated parties of $81,409 and $87,091, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Partners. During the same periods, the Partnership incurred Partnership administration and property management expenses from unrelated parties of $56,161 and $44,560, respectively. These expenses represent direct payments to third parties for legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.

For the nine months ended September 30, 2022 and 2021, the Partnership recognized interest income of $6,974 and $1,167, respectively. In 2022, interest income increased due to the Company having more money invested in a money market account and higher money market interest rates in 2022.

Management believes inflation has not significantly affected income from operations. Leases may contain rent increases, based on the increase in the Consumer Price Index over a specified period, which will result in an increase in rental income over the term of the leases. Inflation also may cause the real estate to appreciate in value. However, inflation and changing prices may have an adverse impact on the operating margins of the properties' tenants, which could impair their ability to pay rent and subsequently reduce the Net Cash Flow available for distributions.

12

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Liquidity and Capital Resources

During the nine months ended September 30, 2022, the Partnership's cash balances decreased $950,209 as a result of cash used to purchase property, distributions paid to the Partners and cash used to repurchase Units in excess of cash generated from operating activities, which was partially offset by proceeds received from the sale of real estate. During the nine months ended September 30, 2021, the Partnership's cash balances decreased $278,847 as a result of distributions paid to the Partners and cash used to repurchase Units in excess of cash generated from operating activities.

Net cash provided by operating activities increased from $335,652 in 2021 to $426,492 in 2022 as a result of net timing differences in the collection of payments from the tenants and payment of expenses, which was partially offset by a gain recorded on the sale of real estate, a decrease in total rental income in 2022 and an increase in Partnership administration and property management expenses in 2022.

The major components of the Partnership's cash flow from investing activities are investments in real estate and proceeds from the sale of real estate. During the nine months ended September 30, 2022, the Partnership generated cash flow from the sale of real estate of $2,200,747. During the same period, the Partnership expended $3,027,474 to invest in real properties.

In February 2022, the Partnership entered into an agreement to sell its 33% interest in the Best Buy store in Lake Geneva, Wisconsin to an unrelated third party. On March 29, 2022, the sale closed with the Partnership receiving net proceeds of $1,438,654, which resulted in a net gain of $319,006. At the time of sale, the cost and related accumulated depreciation was $2,022,246 and $902,598, respectively.

In June 2022, the Partnership entered into an agreement to sell its 28% interest in the Staples store in Clermont, Florida to an unrelated third party. On June 30, 2022, the sale closed with the Partnership receiving net proceeds of $762,093, which resulted in a net gain of $205,662. At the time of sale, the cost and related accumulated depreciation was $900,295 and $343,864, respectively.

In September 2022, the Partnership purchased a 100% interest in  the DaVita property in Hempstead, TX for $3,027,474. The Partnership allocated $351,453 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles of $273,715 and above-market lease intangibles of $77,738. The property is leased to Bollinger Dialysis, LLC under a lease agreement with a remaining primary term of approximately 7.75 years (as of date of purchase) and annual rent of $182,209.

13

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

The Partnership's primary use of cash flow, other than investment in real estate, is distribution payments to Partners and cash used to repurchase Units. The Partnership declares its regular quarterly distributions before the end of each quarter and pays the distribution in the first week after the end of each quarter. The Partnership attempts to maintain a stable distribution rate from quarter to quarter. The Partnership may repurchase tendered Units on April 1st and October 1st of each year subject to limitations.

For the nine months ended September 30, 2022 and 2021, the Partnership declared distributions of $313,295 and $323,306, respectively. Pursuant to the Partnership Agreement, distributions of Net Cash Flow were allocated 97% to the Limited Partners and 3% to the General Partners. Distributions of Net Proceeds of Sale were allocated 99% to the Limited Partners and 1% to the General Partners. The Limited Partners were allocated distributions of $303,896 and $313,607 and the General Partners were allocated distributions of $9,399 and $9,699 for the periods, respectively.

The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership.

For the nine months ended September 30, 2022, the Partnership repurchased a total of 313.86 Units for $232,475 from 21 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. For the nine months ended September 30, 2021, the Partnership repurchased a total of 385.24 Units for $286,038 from 31 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds

The continuing rent payments from the properties, together with cash generated from property sales, should be adequate to fund continuing distributions and meet other Partnership obligations on both a short-term and long-term basis.

14

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Off-Balance Sheet Arrangements

As of September 30, 2022 and December 31, 2021, the Partnership had no material off-balance sheet arrangements that had or are reasonably likely to have current or future effects on its financial condition, results of operations, liquidity or capital resources.

ITEM 3. QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES.

(a)  Disclosure Controls and Procedures.

Under the supervision and with the participation of management, including its President and Chief Financial Officer, the Managing General Partner of the Partnership evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, the President and Chief Financial Officer of the Managing General Partner concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to management, including the President and Chief Financial Officer of the Managing General Partner, in a manner that allows timely decisions regarding required disclosure.

(b)  Changes in Internal Control Over Financial Reporting.

During the most recent period covered by this report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

There are no material pending legal proceedings to which the Partnership is a party or of which the Partnership's property is subject.

ITEM 1A. RISK FACTORS.

Not required for a smaller reporting company.

15

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES & USE OF PROCEEDS.

(a) None.

(b) Not applicable.

(c) Pursuant to Section 7.7 of the Partnership Agreement, each Limited Partner has the right to present Units to the Partnership for purchase by submitting notice to the Managing General Partner during January or July of each year. The purchase price of the Units is equal to 90% of the net asset value per Unit, as of the first business day of January or July of each year, as determined by the Managing General Partner in accordance with the provisions of the Partnership Agreement. Units tendered to the Partnership during January and July may be repurchased on April 1^st and October 1^st, respectively, of each year subject to the following limitations. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership. During the period covered by this report, the Partnership did not purchase any Units.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

31.1

Certification of Chief Executive Officer of General Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Chief Financial Officer of General Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002.

32

Certification of Chief Executive Officer and Chief Financial Officer of General Partner pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:  November 11, 2022	AEI Income & Growth Fund XXII
	Limited Partnership
	By:	AEI Fund Management XXI, Inc.
	Its:	Managing General Partner
	By:	/s/ Marni Nygard
		Marni J. Nygard
		President
		(Principal Executive Officer)
	By:	/s/ Keith Petersen
		Keith E. Petersen
		Chief Financial Officer
		(Principal Accounting Officer)

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Marni J. Nygard, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AEI Income & Growth Fund XXII Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 11, 2022	/s/ Marni Nygard
	Marni J. Nygard, President
	AEI Fund Management XXI, Inc.
	Managing General Partner

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Keith E. Petersen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AEI Income & Growth Fund XXII Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  November 11, 2022	/s/ Keith Petersen
	Keith E. Petersen, Chief Financial Officer
	AEI Fund Management XXI, Inc.
	Managing General Partner

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AEI Income & Growth Fund XXII Limited Partnership (the “Partnership”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Marni J. Nygard, President of AEI Fund Management XXI, Inc., the Managing General Partner of the Partnership, and Keith E. Petersen, Chief Financial Officer of AEI Fund Management XXI, Inc., each certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Marni Nygard

Marni J. Nygard, President

AEI Fund Management XXI, Inc.

Managing General Partner

November 11, 2022

/s/ Keith Petersen

Keith E. Petersen, Chief Financial Officer

AEI Fund Management XXI, Inc.

Managing General Partner

November 11, 2022

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information Line Items
Entity Registrant Name	AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		11,749.37
Amendment Flag	false
Entity Central Index Key	0001023458
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Entity File Number	000-24003
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1848181
Entity Address, Address Line One	30 East 7th Street, Suite 1300
Entity Address, City or Town	St. Paul
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55101
City Area Code	651
Local Phone Number	227-7333
Entity Information, Former Legal or Registered Name	Not Applicable
No Trading Symbol Flag	true
Security Exchange Name	NONE
Title of 12(g) Security	Limited Partnership Units
Entity Interactive Data Current	Yes
Document Transition Report	false

XML

Balance Sheet - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current Assets:
Cash	$ 340,906	$ 1,291,115
Receivables	0	20,191
Total Current Assets	340,906	1,311,306
Land	1,966,950	1,867,879
Buildings	5,315,188	5,543,826
Acquired Intangible Lease Assets	1,415,859	1,181,359
Real Estate Held for Investment, at cost	8,697,997	8,593,064
Accumulated Depreciation and Amortization	(1,597,400)	(2,641,740)
Real Estate Held for Investment, Net	7,100,597	5,951,324
Total Assets	7,441,503	7,262,630
Payable to AEI Fund Management, Inc.	168,046	16,784
Distributions Payable	103,813	105,669
Unearned Rent	14,314	0
Total Current Liabilities	286,173	122,453
Partners’ Capital (Deficit):
General Partners	5,071	(7,021)
Limited Partners – 24,000 Units authorized; 11,749.37 and 12,063.23 Units issued and outstanding as of 9/30/2022 and 12/31/2021	7,150,259	7,147,198
Total Partners' Capital	7,155,330	7,140,177
Total Liabilities and Partners' Capital	$ 7,441,503	$ 7,262,630

XML

Balance Sheet (Parentheticals) - Limited Partner [Member] - shares	Sep. 30, 2022	Dec. 31, 2021
Limited Partners, units authorized	24,000	24,000
Limited Partners, units issued	11,749.37	12,063.23
Limited Partners, units outstanding	11,749.37	12,063.23

XML

Statement of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Rental Income	$ 100,651	$ 127,442	$ 324,621	$ 381,389
Expenses:
Partnership Administration – Affiliates	26,174	28,110	81,409	87,091
Partnership Administration and Property Management – Unrelated Parties	8,590	12,787	56,161	44,560
Depreciation and Amortization	46,246	68,555	155,422	205,665
Total Expenses	81,010	109,452	292,992	337,316
Operating Income	19,641	17,990	31,629	44,073
Other Income:
Gain on Sale of Real Estate	0	0	524,668	0
Interest Income	5,446	366	6,974	1,167
Total Other Income	5,446	366	531,642	1,167
Net Income	25,087	18,356	563,271	45,240
Net Income Allocated:
General Partners	3,091	550	23,839	1,357
Limited Partners	21,996	17,806	539,432	43,883
Net Income	$ 25,087	$ 18,356	$ 563,271	$ 45,240
Net Income per Limited Partnership Unit (in Dollars per share)	$ 1.87	$ 1.45	$ 45.51	$ 3.53
Weighted Average Units Outstanding – Basic and Diluted (in Shares)	11,749	12,307	11,853	12,435

XML

Statement of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net Income	$ 563,271	$ 45,240
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization	202,122	252,366
Gain on Sale of Real Estate	(524,668)	0
(Increase) Decrease in Receivables	20,191	0
Increase (Decrease) in Payable to AEI Fund Management, Inc.	151,262	17,328
Increase (Decrease) in Unearned Rent	14,314	20,718
Total Adjustments	(136,779)	290,412
Net Cash Provided By (Used For) Operating Activities	426,492	335,652
Cash Flows from Investing Activities:
Investments in Real Estate	(3,027,474)	0
Proceeds from Sale of Real Estate	2,200,747	0
Net Cash Provided By (Used For) Investing Activities	(826,727)	0
Cash Flows from Financing Activities:
Distributions Paid to Partners	(315,151)	(325,572)
Repurchase of Partnership Units	(234,823)	(288,927)
Net Cash Provided By (Used For) Financing Activities	(549,974)	(614,499)
Net Increase (Decrease) in Cash	(950,209)	(278,847)
Cash, beginning of period	1,291,115	1,802,014
Cash, end of period	$ 340,906	$ 1,523,167

XML

Statement of Changes in Partners' Capital - USD ($)	General Partner [Member]	Limited Partner [Member]	Total
Balance at Dec. 31, 2020	$ 8,557	$ 7,965,924	$ 7,974,481
Balance (in Shares) at Dec. 31, 2020		12,691.78
Distributions Declared	(3,279)	$ (106,001)	(109,280)
Net Income	444	14,368	14,812
Balance at Mar. 31, 2021	5,722	$ 7,874,291	7,880,013
Balance (in Shares) at Mar. 31, 2021		12,691.78
Balance at Dec. 31, 2020	8,557	$ 7,965,924	7,974,481
Balance (in Shares) at Dec. 31, 2020		12,691.78
Distributions Declared	(9,699)	$ (313,607)	(323,306)
Repurchase of Partnership Units	(2,889)	$ (286,038)
Units Repurchased (in Shares)		(385.24)
Net Income			45,240
Balance at Sep. 30, 2021	(2,674)	$ 7,410,162	7,407,488
Balance (in Shares) at Sep. 30, 2021		12,306.54
Balance at Mar. 31, 2021	5,722	$ 7,874,291	7,880,013
Balance (in Shares) at Mar. 31, 2021		12,691.78
Distributions Declared	(3,210)	$ (103,803)	(107,013)
Repurchase of Partnership Units	(2,889)	$ (286,038)	(288,927)
Units Repurchased (in Shares)		(385.24)
Net Income	363	$ 11,709	12,072
Balance at Jun. 30, 2021	(14)	$ 7,496,159	7,496,145
Balance (in Shares) at Jun. 30, 2021		12,306.54
Distributions Declared	(3,210)	$ (103,803)	(107,013)
Net Income	550	17,806	18,356
Balance at Sep. 30, 2021	(2,674)	$ 7,410,162	7,407,488
Balance (in Shares) at Sep. 30, 2021		12,306.54
Balance at Dec. 31, 2021	(7,021)	$ 7,147,198	7,140,177
Balance (in Shares) at Dec. 31, 2021		12,063.23
Distributions Declared	(3,170)	$ (102,498)	(105,668)
Net Income	13,281	312,177	325,458
Balance at Mar. 31, 2022	3,090	$ 7,356,877	7,359,967
Balance (in Shares) at Mar. 31, 2022		12,063.23
Balance at Dec. 31, 2021	(7,021)	$ 7,147,198	7,140,177
Balance (in Shares) at Dec. 31, 2021		12,063.23
Distributions Declared	(9,399)	$ (303,896)	$ (313,295)
Repurchase of Partnership Units	(2,348)	(232,475)
Units Repurchased (in Shares)			(313.86)
Net Income			$ 563,271
Balance at Sep. 30, 2022	5,071	$ 7,150,259	7,155,330
Balance (in Shares) at Sep. 30, 2022		11,749.37
Balance at Mar. 31, 2022	3,090	$ 7,356,877	7,359,967
Balance (in Shares) at Mar. 31, 2022		12,063.23
Distributions Declared	(3,115)	$ (100,699)	(103,814)
Repurchase of Partnership Units	(2,348)	$ (232,475)	(234,823)
Units Repurchased (in Shares)		(313.86)
Net Income	7,467	$ 205,259	212,726
Balance at Jun. 30, 2022	5,094	$ 7,228,962	7,234,056
Balance (in Shares) at Jun. 30, 2022		11,749.37
Distributions Declared	(3,114)	$ (100,699)	(103,813)
Net Income	3,091	21,996	25,087
Balance at Sep. 30, 2022	$ 5,071	$ 7,150,259	$ 7,155,330
Balance (in Shares) at Sep. 30, 2022		11,749.37

XML

Basis of Accounting

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Accounting [Text Block]

(1)  The condensed statements included herein have been prepared by the registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of operations for the interim period, on a basis consistent with the annual audited statements. The adjustments made to these condensed statements consist only of normal recurring adjustments. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations, although the registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the summary of significant accounting policies and notes thereto included in the registrant’s latest annual report on Form 10K.

XML

Organization

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

(2)  Organization –

AEI Income & Growth Fund XXII Limited Partnership (“Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner. The Estate of Robert P. Johnson serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Robert P. Johnson Trust and Patricia Johnson own a majority interest. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership.

XML

Recently Issued Accounting Pronouncements

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

(3)  Recently Issued Accounting Pronouncements –

In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Partnership would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance.

Other accounting standards that have been issued or proposed by the FASB are currently not applicable to the Partnership or are not expected to have a significant impact on the Partnership’s financial position, results of operations and cash flows.

XML

Real Estate Investments

9 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(4)  Real Estate Investments –

In February 2022, the Partnership entered into an agreement to sell its 33% interest in the Best Buy store in Lake Geneva, Wisconsin to an unrelated third party. On March 29, 2022, the sale closed with the Partnership receiving net proceeds of $1,438,654, which resulted in a net gain of $319,006. At the time of sale, the cost and related accumulated depreciation was $2,022,246 and $902,598, respectively.

In June 2022, the Partnership entered into an agreement to sell its 28% interest in the Staples store in Clermont, Florida to an unrelated third party. On June 30, 2022, the sale closed with the Partnership receiving net proceeds of $762,093, which resulted in a net gain of $205,662. At the time of sale, the cost and related accumulated depreciation was $900,295 and $343,864, respectively.

In September 2022, the Partnership purchased a 100% interest in the DaVita property in Hempstead, TX for $3,027,474. The Partnership allocated $351,453 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles of $273,715 and above-market lease intangibles of $77,738. The property is leased to Bollinger Dialysis, LLC under a lease agreement with a remaining primary term of approximately 7.75 years (as of date of purchase) and annual rent of $182,209.

XML

Payable to AEI Fund Management, Inc.

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

(5)  Payable to AEI Fund Management, Inc. –

AEI Fund Management, Inc. performs the administrative and operating functions for the Partnership. The payable to AEI Fund Management represents the balance due for those services. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

XML

Partners' Capital

9 Months Ended

Sep. 30, 2022

Partners' Capital Notes [Abstract]

Partners' Capital Notes Disclosure [Text Block]

(6)  Partners’ Capital –

For the nine months ended September 30, 2022 and 2021, the Partnership declared distributions of $313,295 and $323,306, respectively. The Limited Partners were allocated distributions of $303,896 and $313,607 and the General Partners were allocated distributions of $9,399 and $9,699 for the periods, respectively. The Limited Partners' distributions represented $25.64 and $25.22 per Limited Partnership Unit outstanding using 11,853 and 12,435 weighted average Units in 2022 and 2021, respectively. The distributions represented $25.64 and $3.53 per Unit of Net Income and $0 and $21.69 per Unit of return of capital in 2022 and 2021, respectively.

On April 1, 2022, the Partnership repurchased a total of 313.86 Units for $232,475 from 21 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. For the nine months ended September 30, 2021, the Partnership repurchased a total of 385.24 Units for $286,038 from 31 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. The repurchases increase the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $2,348 and $2,889 in 2022 and 2021, respectively.

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

(7)  Fair Value Measurements –

As of September 30, 2022 and December 31, 2021, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

XML

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Description	In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Partnership would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance. Other accounting standards that have been issued or proposed by the FASB are currently not applicable to the Partnership or are not expected to have a significant impact on the Partnership’s financial position, results of operations and cash flows.

XML

Real Estate Investments (Details) - USD ($)				3 Months Ended		9 Months Ended
	Sep. 22, 2022	Jun. 30, 2022	Mar. 29, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Real Estate Investments (Details) [Line Items]
Proceeds from Sale of Real Estate			$ 1,438,654
Gain (Loss) on Disposition of Assets			319,006	$ 0	$ 0	$ 524,668	$ 0
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Cost of Investment in Real Estate Sold			2,022,246
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation			$ 902,598
Payments to Acquire Real Estate	$ 3,027,474					$ 3,027,474	$ 0
AverageLeaseTerm	The property is leased to Bollinger Dialysis, LLC under a lease agreement with a remaining primary term of approximately 7.75 years
Revenue from Contract with Customer, Excluding Assessed Tax	$ 182,209
Best Buy Lake Geneva WI 'Member'
Real Estate Investments (Details) [Line Items]
Disposal Date			Mar. 29, 2022
Staples Clermont FL 'Member'
Real Estate Investments (Details) [Line Items]
Disposal Date		Jun. 30, 2022
PetSmart Galveston TX
Real Estate Investments (Details) [Line Items]
Proceeds from Sale of Real Estate		$ 762,093
Gain (Loss) on Disposition of Assets		205,662
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Cost of Investment in Real Estate Sold		900,295
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation		$ 343,864
Leases, Acquired-in-Place [Member]
Real Estate Investments (Details) [Line Items]
Finite-Lived Intangible Asset, Acquired-in-Place Leases	273,715
Above Market Leases [Member]
Real Estate Investments (Details) [Line Items]
Finite-Lived Intangible Asset, off-Market Lease, Favorable, Gross	$ 77,738

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Partners' Capital (Details) - USD ($)	3 Months Ended						6 Months Ended	9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Partners' Capital (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 103,813	$ 103,814	$ 105,668	$ 107,013	$ 107,013	$ 109,280		$ 313,295	$ 323,306
Partners' Capital Account, Units, Redeemed (in Shares)								313.86
Partners' Capital Account, Redemptions		234,823			288,927
Limited Partner [Member]
Partners' Capital (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Declared	100,699	$ 100,699	102,498	103,803	$ 103,803	106,001		$ 303,896	$ 313,607
Distribution Made to Limited Partner, Distributions Declared, Per Unit (in Dollars per share)							$ 25.64		$ 25.22
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares)								11,853	12,435
DistributionsPerUnitOfNetIncome (in Dollars per share)								$ 25.64	$ 3.53
DistributionsPerUnitOfReturnOfCapital (in Dollars per share)								$ 0	$ 21.69
Partners' Capital Account, Units, Redeemed (in Shares)		313.86			385.24				385.24
Partners' Capital Account, Redemptions		$ 232,475			$ 286,038			$ 232,475	$ 286,038
General Partner [Member]
Partners' Capital (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 3,114	3,115	$ 3,170	$ 3,210	3,210	$ 3,279		9,399	9,699
Partners' Capital Account, Redemptions		$ 2,348			$ 2,889			$ 2,348	$ 2,889