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, 2015

Commission File Number:  000-29274

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

State of Minnesota	41-1789725
(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)

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.     x Yes    o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).     x Yes    o No

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

o Large accelerated filer	o Accelerated filer
o Non-accelerated filer	x Smaller reporting company

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

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

INDEX

				Page
Part I – Financial Information
	Item 1.	Financial Statements:
		Balance Sheets as of September 30, 2015 and December 31, 2014		3
		Statements for the Periods ended September 30, 2015 and 2014:
			Income	4
			Cash Flows	5
			Changes in Partners’ Capital (Deficit)	6
		Notes to Financial Statements		7 - 12
	Item 2.	Management's Discussion and Analysis of Financial
			Condition and Results of Operations	12 - 18
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		19
	Item 4.	Controls and Procedures		19
Part II – Other Information
	Item 1.	Legal Proceedings		19
	Item 1A.	Risk Factors		19
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		20
	Item 3.	Defaults Upon Senior Securities		20
	Item 4.	Mine Safety Disclosures		20
	Item 5.	Other Information		20
	Item 6.	Exhibits		20
Signatures				21

Page 2 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

BALANCE SHEETS

ASSETS

	September 30,			December 31,
	2015			2014
	(unaudited)
Current Assets:
Cash	$	3,481,106		$	4,540,920
Real Estate Investments:
Land		3,484,216			3,484,216
Buildings		10,126,971			10,126,971
Acquired Intangible Lease Assets		522,129			522,129
Real Estate Held for Investment, at cost		14,133,316			14,133,316
Accumulated Depreciation and Amortization		(3,014,248	)		(2,674,423	)
Real Estate Held for Investment, Net		11,119,068			11,458,893
Total Assets	$	14,600,174		$	15,999,813

LIABILITIES AND PARTNERS' CAPITAL

Current Liabilities:
Payable to AEI Fund Management, Inc.	$	19,458		$	30,299
Distributions Payable		270,502			291,921
Unearned Rent		35,215			12,121
Total Current Liabilities		325,175			334,341
Long-term Liabilities:
Acquired Below-Market Lease Intangibles, Net		65,947			74,191
Partners’ Capital (Deficit):
General Partners		(2,843	)		10,980
Limited Partners – 24,000 Units authorized;    20,710 and 21,829 Units issued and outstanding    as of 9/30/15 and 12/31/14, respectively		14,211,895			15,580,301
Total Partners' Capital		14,209,052			15,591,281
Total Liabilities and Partners' Capital	$	14,600,174		$	15,999,813

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

Page 3 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

STATEMENTS OF INCOME

(unaudited)

	Three Months Ended September 30				Nine Months Ended September 30
	2015		2014		2015		2014
Rental Income	$	294,898	$	313,659	$	884,694	$	813,070
Expenses:
Partnership Administration – Affiliates		52,025		57,078		165,505		165,388
Partnership Administration and Property    Management – Unrelated Parties		7,668		11,194		35,486		43,877
Property Acquisition		0		30,653		0		56,473
Depreciation and Amortization		113,275		120,510		339,825		303,500
Total Expenses		172,968		219,435		540,816		569,238
Operating Income		121,930		94,224		343,878		243,832
Other Income:
Income from Equity Method Investment		0		258,367		0		258,367
Interest Income		2,543		2,097		8,337		9,449
Total Other Income		2,543		260,464		8,337		267,816
Income from Continuing Operations		124,473		354,688		352,215		511,648
Income from Discontinued Operations		0		99,528		0		635,587
Net Income	$	124,473	$	454,216	$	352,215	$	1,147,235
Net Income Allocated:
General Partners	$	1,245	$	4,542	$	3,522	$	11,472
Limited Partners		123,228		449,674		348,693		1,135,763
Total	$	124,473	$	454,216	$	352,215	$	1,147,235
Income per Limited Partnership Unit:
Continuing Operations	$	5.95	$	15.50	$	16.54	$	22.36
Discontinued Operations		.00		4.35		.00		27.78
Total – Basic and Diluted	$	5.95	$	19.85	$	16.54	$	50.14
Weighted Average Units Outstanding –       Basic and Diluted		20,710		22,653		21,083		22,653

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

Page 4 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

(unaudited)

	Nine Months Ended September 30
	2015			2014
Cash Flows from Operating Activities:
Net Income	$	352,215		$	1,147,235
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization		331,581			299,836
Income from Equity Method Investments		0			(870,359	)
Increase (Decrease) in Payable to    AEI Fund Management, Inc.		(10,841	)		32,405
Increase (Decrease) in Unearned Rent		23,094			23,094
Total Adjustments		343,834			(515,024	)
Net Cash Provided By (Used For)    Operating Activities		696,049			632,211
Cash Flows from Investing Activities:
Investments in Real Estate		0			(4,335,000	)
Cash Paid for Equity Method Investments		0			(37,488	)
Proceeds from Equity Method Investments		0			3,103,100
Net Cash Provided By (Used For)    Investing Activities		0			(1,269,388	)
Cash Flows from Financing Activities:
Distributions Paid to Partners		(844,237	)		(875,765	)
Repurchase of Partnership Units		(911,626	)		0
Net Cash Provided By (Used For)    Financing Activities		(1,755,863	)		(875,765	)
Net Increase (Decrease) in Cash		(1,059,814	)		(1,512,942	)
Cash, beginning of period		4,540,920			5,553,960
Cash, end of period	$	3,481,106		$	4,041,018
Supplemental Disclosure of Non-Cash Investing Activities:
Contribution of Real Estate (at carrying value)    in Exchange for Equity Method Investment	$	0		$	3,190,628

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

Page 5 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

(unaudited)

	General Partners			Limited Partners			Total			Limited Partnership Units Outstanding
Balance, December 31, 2013	$	11,205		$	15,878,354		$	15,889,559			22,653.11
Distributions Declared		(8,757	)		(867,008	)		(875,765	)
Net Income		11,472			1,135,763			1,147,235
Balance, September 30, 2014	$	13,920		$	16,147,109		$	16,161,029			22,653.11
Balance, December 31, 2014	$	10,980		$	15,580,301		$	15,591,281			21,828.71
Distributions Declared		(8,228	)		(814,590	)		(822,818	)
Repurchase of Partnership Units		(9,117	)		(902,509	)		(911,626	)		(1,118.25	)
Net Income		3,522			348,693			352,215
Balance, September 30, 2015	$	(2,843	)	$	14,211,895		$	14,209,052			20,710.46

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

 

Page 6 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2015

(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 10-K.

(2)  Organization –

AEI Income & Growth Fund XXI 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.  Robert P. Johnson, the President and sole director of AFM, serves as the Individual General Partner.  AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder.  AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership.

The terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer.  The Partnership commenced operations on April 14, 1995 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted.  On January 31, 1997, the offering terminated when the maximum subscription limit of 24,000 Limited Partnership Units was reached.  Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $24,000,000 and $1,000, respectively.

During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 90% to the Limited Partners and 10% to the General Partners; provided, however, that such distributions to the General Partners will be subordinated to the Limited Partners first receiving an annual, noncumulative distribution of Net Cash Flow equal to 10% of their Adjusted Capital Contribution, as defined, and, provided further, that in no event will the General Partners receive less than 1% of such Net Cash Flow per annum.  Distributions to Limited Partners will be made pro rata by Units.

 

Page 7 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

(Continued)

(2)  Organization – (Continued)

Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 10% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow;  (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners.  Distributions to the Limited Partners will be made pro rata by Units.

For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year.  Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed.  Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.

For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 10% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners.  Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.

The General Partners are not required to currently fund a deficit capital balance.  Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions.

In January 2014, the Managing General Partner mailed a Consent Statement (Proxy) seeking the consent of the Limited Partners to continue the Partnership for an additional 60 months or to initiate the final disposition, liquidation and distribution of all of the Partnership’s properties and assets.  On February 14, 2014, the proposal to continue the Partnership was approved with a majority of Units voted in favor of the continuation proposal.  As a result, the Managing General Partner will continue the operations of the Partnership for an additional 60 months at which time it will again ask the Limited Partners to vote on the same two proposals.

 

Page 8 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

(Continued)

(3)  Real Estate Investments –

On May 29, 2014, the Partnership purchased a 50% interest in a Tractor Supply Company store in Canton, Georgia for $2,212,500.  The Partnership allocated $185,920 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles and allocated $80,603 to Acquired Below-Market Lease Intangibles. The Partnership incurred $27,970 of acquisition expenses related to the purchase that were expensed.  The property is leased to Tractor Supply Company under a Lease Agreement with a remaining primary term of 7.3 years (as of the date of purchase) and annual rent of $164,355 for the interest purchased.  The remaining interest in the property was purchased by AEI Accredited Investor Fund V LP, an affiliate of the Partnership.

On July 3, 2014, the Partnership purchased a 30% interest in a Gander Mountain store in Champaign, Illinois for $2,122,500.  The Partnership allocated $336,209 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The Partnership incurred $34,052 of acquisition expenses related to the purchase that were expensed.  The property is leased to Gander Mountain Company under a Lease Agreement with a remaining primary term of 14.9 years and annual rent of $167,772 for the interest purchased.  The remaining interests in the property were purchased by AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP, affiliates of the Partnership.

(4) Equity Method Investments –

In the fourth quarter of 2013, the Partnership decided to sell its 20% interest in the CarMax Auto Superstore in Lithia Springs, Georgia.  At December 31, 2013, the property was classified as Real Estate Held for Sale with a carrying value of $1,508,930.  The remaining interests in the property were owned by three affiliated entities, AEI Income & Growth Fund 24 LLC, AEI Income & Growth Fund 25 LLC and AEI Private Net Lease Millennium Fund Limited Partnership.  On March 7, 2014, to facilitate the sale of the property, the Partnership and affiliated entities contributed their respective interests in the property via a limited liability company to CM Lithia Springs DST (“CMLS”), a Delaware statutory trust (“DST”), in exchange for Class B ownership interests in CMLS.  In addition, a small amount of cash was contributed for working capital.  A DST is a recognized mechanism for selling property to investors who are looking for replacement real estate to complete like-kind exchanges under Section 1031 of the Internal Revenue Code.  As investors purchased Class A ownership interests in CMLS, the proceeds received were used to redeem, on a one-for-one basis, the Class B ownership interests of the Partnership and affiliated entities.  From March 13, 2014 to July 25, 2014, CMLS sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Partnership and affiliated entities.  As of December 31, 2014, the Partnership had no ongoing interest in CMLS.

Page 9 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

(Continued)

(4) Equity Method Investments – (Continued)

On August 29, 2014, to facilitate the sale of its 63% interest in the Tractor Supply Company store in Rapid City, South Dakota, the Partnership contributed the property via a limited liability company to AEI Net Lease Portfolio DST (“ANLP”) in exchange for 16.95% of the Class B ownership interests in ANLP.  The remaining interest in the property, owned by an affiliated entity, along with two other properties owned by two other affiliated entities, were also contributed to ANLP in exchange for 83.05% of the Class B ownership interests in ANLP.  In addition, cash was contributed for working capital.  From September 5, 2014 to October 30, 2014, ANLP sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Partnership and affiliated entities. As of December 31, 2014, the Partnership had no ongoing interest in ANLP.

The investments in CMLS and ANLP were recorded using the equity method of accounting in the accompanying financial statements.  Under the equity method, the investments were stated at cost and adjusted for the Partnership’s share of net income or losses and reduced by proceeds received from the sale of the Class B ownership interests of the DSTs as well as distributions from net rental income.  During 2014, the investment balances consisted of the following:

Activity Through September 30, 2014:		CMLS		ANLP		Total
Real Estate Contributed (at carrying value)	$	1,508,930	$	1,681,698	$	3,190,628
Cash Contributed		12,169		25,319		37,488
Net Income – Rental Activity		32,956		9,148		42,104
Net Income – Gain on Sale of Real Estate		579,036		249,219		828,255
Distributions from Net Rental Income		(32,956)		(9,148)		(42,104)
Proceeds from Sale of Class B Interests		(2,087,044)		(973,952)		(3,060,996)
Equity Method Investments at September 30, 2014		13,091		982,284		995,375
Activity After September 30, 2014:
Net Income – Rental Activity		9		2,602		2,611
Net Income – Gain on Sale of Real Estate		11,781		260,690		272,471
Distributions from Net Rental Income		(9)		(2,602)		(2,611)
Proceeds from Sale of Class B Interests		(24,872)		(1,242,974)		(1,267,846)
Equity Method Investments at December 31, 2014	$	0	$	0	$	0

(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.

Page 10 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

(Continued)

(6)  Discontinued Operations –

In the fourth quarter of 2013, the Partnership decided to sell its 20% interest in the CarMax Auto Superstore in Lithia Springs, Georgia.  At December 31, 2013, the property was classified as Real Estate Held for Sale with a carrying value of $1,508,930.  On March 7, 2014, to facilitate the sale of the property, the Partnership contributed its interest in the property via a limited liability company to CM Lithia Springs DST as described in Note 4.

The financial results for this property are reflected as Discontinued Operations in the accompanying financial statements.  The following are the results of discontinued operations:

	Three Months Ended September 30					Nine Months Ended September 30
	2015		2014			2015		2014
Rental Income	$	0	$	0		$	0	$	26,740
Property Management Expenses		0		(117	)		0		(3,145	)
Income from Equity Method Investment    Held for Sale		0		99,645			0		611,992
Income from Discontinued Operations	$	0	$	99,528		$	0	$	635,587

	Three Months Ended September 30					Nine Months Ended September 30
	2015		2014			2015		2014
Cash Flows from Discontinued Operations:
Operating Activities	$	0	$	(117	)	$	0	$	23,595
Investing Activities	$	0	$	520,000		$	0	$	2,107,831

(7)  Partners’ Capital –

For the nine months ended September 30, 2015 and 2014, the Partnership declared distributions of $822,818 and $875,765, respectively.  The Limited Partners received distributions of $814,590 and $867,008 and the General Partners received distributions of $8,228 and $8,757 for the periods, respectively.  The Limited Partners' distributions represented $38.64 and $38.27 per Limited Partnership Unit outstanding using 21,083 and 22,653 weighted average Units in 2015 and 2014, respectively.  The distributions represented $16.54 and $38.27 per Unit of Net Income and $22.10 and $0 per Unit of return of contributed capital for the periods, respectively.

Page 11 of 21

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

(Continued)

(7)  Partners’ Capital – (Continued)

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $139,022 and $200,478 in 2015 and 2014, respectively.  The Limited Partners received distributions of $137,632 and $198,473 and the General Partners received distributions of $1,390 and $2,005 for the periods, respectively.  The Limited Partners’ distributions represented $6.51 and $8.76 per Unit for the periods, respectively.

On April 1, 2015, the Partnership repurchased a total of 1,118.25 Units for $902,509 from 27 Limited Partners in accordance with the Partnership Agreement.  The Partnership acquired these Units using net sale proceeds.  During the first nine months of 2014, the Partnership did not repurchase any Units from the Limited Partners. 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 $9,117 in 2015.

(8)  Fair Value Measurements –

As of September 30, 2015 and December 31, 2014, 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.

Page 12 of 21

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 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 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 terms of the respective leases.  Below market leases 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.

Page 13 of 21

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 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.

Page 14 of 21

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

Results of Operations

For the nine months ended September 30, 2015 and 2014, the Partnership recognized rental income from continuing operations of $884,694 and $813,070, respectively.  In 2015, rental income increased due to additional rent received from two property acquisitions in 2014 and a rent increase on one property.  These increases in rental income were partially offset by a decrease in rent due to the sale of the Tractor Supply Company store in Rapid City, South Dakota.  Based on the scheduled rent for the properties as of October 31, 2015, the Partnership expects to recognize rental income from continuing operations of approximately $1,180,000 and $1,188,000 in 2015 and 2016, respectively.

For the nine months ended September 30, 2015 and 2014, the Partnership incurred Partnership administration expenses from affiliated parties of $165,505 and $165,388, respectively.  These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communication with the Limited Partners.  During the same periods, the Partnership incurred Partnership administration and property management expenses from unrelated parties of $35,486 and $43,877, 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, 2014, the Partnership incurred property acquisition expenses of $25,958 related to the purchase of the Tractor Supply Company store in Canton, Georgia and $30,515 related to the Gander Mountain store in Champaign, Illinois.

On August 29, 2014, to facilitate the sale of its 63% interest in the Tractor Supply Company store in Rapid City, South Dakota, the Partnership contributed the property via a limited liability company to AEI Net Lease Portfolio DST (“ANLP”), a Delaware statutory trust (“DST”), in exchange for 16.95% of the Class B ownership interests in ANLP.  The remaining interest in the property, owned by an affiliated entity, along with two other properties owned by two other affiliated entities, were also contributed to ANLP in exchange for 83.05% of the Class B ownership interests in ANLP.  In addition, cash was contributed for working capital.  A DST is a recognized mechanism for selling property to investors who are looking for replacement real estate to complete like-kind exchanges under Section 1031 of the Internal Revenue Code.  As investors purchase Class A ownership interests in ANLP, the proceeds received will be used to redeem, on a one-for-one basis, the Class B ownership interests of the Partnership and affiliated entities.  From August 29, 2014 to October 30, 2014, ANLP sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Partnership and affiliated entities.  As of December 31, 2014, the Partnership had no ongoing interest in ANLP.

The investment in ANLP was recorded using the equity method of accounting in the accompanying financial statements.  Under the equity method, the investment was stated at cost and adjusted for the Partnership’s share of net income or losses and reduced by proceeds received from the sale of the Class B ownership interests of the DST as well as distributions from net rental income.  For the nine months ended September 30, 2014, the Partnership’s share of net income of ANLP was $258,367.

Page 15 of 21

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

For the nine months ended September 30, 2015 and 2014, the Partnership recognized interest income of $8,337 and $9,449, respectively.

Prior to January 1, 2014, upon complete disposal of a property or classification of a property as Real Estate Held for Sale, the Partnership included the operating results and sale of the property in discontinued operations.  In addition, the Partnership reclassified the prior periods’ operating results of the property to discontinued operations.  For the nine months ended September 30, 2014, the Partnership recognized income from discontinued operations of $635,587, representing rental income less property management expenses of $23,595 and income from an equity method investment held for sale of $611,992.

In the fourth quarter of 2013, the Partnership decided to sell its 20% interest in the CarMax Auto Superstore in Lithia Springs, Georgia.  At December 31, 2013, the property was classified as Real Estate Held for Sale with a carrying value of $1,508,930.  The remaining interests in the property were owned by three affiliated entities, AEI Income & Growth Fund 24 LLC, AEI Income & Growth Fund 25 LLC and AEI Private Net Lease Millennium Fund Limited Partnership.  On March 7, 2014, to facilitate the sale of the property, the Partnership and affiliated entities contributed their respective interests in the property via a limited liability company to CM Lithia Springs DST (“CMLS”) in exchange for Class B ownership interests in CMLS.  In addition, a small amount of cash was contributed for working capital.  From March 13, 2014 to July 25, 2014, CMLS sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Partnership and affiliated entities. As of December 31, 2014, the Partnership had no ongoing interest in CMLS.  The investment in CMLS was recorded using the equity method of accounting in the accompanying financial statements.  For the nine months ended September 30, 2014, the Partnership’s share of net income of CMLS was $611,992.

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.

Liquidity and Capital Resources

During the nine months ended September 30, 2015, the Partnership's cash balances decreased $1,059,814 as a result of distributions paid to the Partners and cash used to repurchase Units in excess of cash generated from operating activities.  During the nine months ended September 30, 2014, the Partnership's cash balances decreased $1,512,942 as a result of cash used to purchase property, distributions paid to the Partners in excess of cash generated from operating activities, and cash paid for equity method investments, which were partially offset by proceeds received from equity method investments.

Page 16 of 21

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

Net cash provided by operating activities increased from $632,211 in 2014 to $696,049 in 2015 as a result of an increase in total rental and interest income in 2015 and a decrease in Partnership administration and property management expenses in 2015, which were partially offset by net timing differences in the collection of payments from the tenants and the payment of expenses.  During 2014, cash from operations was reduced by $56,473 of acquisition expenses related to the purchase of real estate.  Pursuant to accounting guidance, these expenses were reflected as operating cash outflows.  However, pursuant to the Partnership Agreement, acquisition expenses were funded with proceeds from property sales.

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, including proceeds from equity method investments.  During the nine months ended September 30, 2014, the Partnership expended $4,335,000 to invest in real properties as the Partnership reinvested cash generated from property sales.  During the same period, the Partnership paid cash for equity method investments of $37,488.  During the same period, the Partnership received proceeds from an equity method investment of $3,103,100.  All but a small portion of these proceeds were generated from the sales of the CarMax Auto Superstore and the Tractor Supply Company store as discussed above.

On May 29, 2014, the Partnership purchased a 50% interest in a Tractor Supply Company store in Canton, Georgia for $2,212,500.  The property is leased to Tractor Supply Company under a Lease Agreement with a remaining primary term of 7.3 years (as of the date of purchase) and annual rent of $164,355 for the interest purchased.  The remaining interest in the property was purchased by AEI Accredited Investor Fund V LP, an affiliate of the Partnership.

On July 3, 2014, the Partnership purchased a 30% interest in a Gander Mountain store in Champaign, Illinois for $2,122,500.  The property is leased to Gander Mountain Company under a Lease Agreement with a remaining primary term of 14.9 years and annual rent of $167,772 for the interest purchased.  The remaining interests in the property were purchased by AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP, affiliates of the Partnership.

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, 2015 and 2014, the Partnership declared distributions of $822,818 and $875,765, respectively, which were distributed 99% to the Limited Partners and 1% to the General Partners.  The Limited Partners received distributions of $814,590 and $867,008 and the General Partners received distributions of $8,228 and $8,757 for the periods, respectively.

Page 17 of 21

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

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $139,022 and $200,478 in 2015 and 2014, respectively.  The Limited Partners received distributions of $137,632 and $198,473 and the General Partners received distributions of $1,390 and $2,005 for the periods, respectively.  The Limited Partners’ distributions represented $6.51 and $8.76 per Unit for the periods, respectively.  The Partnership anticipates the remaining net sale proceeds will either be reinvested in additional property or distributed to the Partners in the future.

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 more than 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.

On April 1, 2015, the Partnership repurchased a total of 1,118.25 Units for $902,509 from 27 Limited Partners in accordance with the Partnership Agreement.  The Partnership acquired these Units using net sale proceeds.  During the first nine months of 2014, the Partnership did not repurchase any Units from the Limited Partners. 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 $9,117 in 2015.

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.

Off-Balance Sheet Arrangements

As of September 30, 2015 and December 31, 2014, 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.

Page 18 of 21

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.

Page 19 of 21

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, as amended, 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 95% 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 1st and October 1st, respectively, of each year subject to the following limitations.  The Partnership will not be obligated to purchase in any year more than 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.

Page 20 of 21

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, 2015	AEI Income & Growth Fund XXI
	Limited Partnership
	By:	AEI Fund Management XXI, Inc.
	Its:	Managing General Partner
	By:	/s/ ROBERT P JOHNSON
		Robert P. Johnson
		President
		(Principal Executive Officer)
	By:	/s/ PATRICK W KEENE
		Patrick W. Keene
		Chief Financial Officer
		(Principal Accounting Officer)

Page 21 of 21

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Robert P. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AEI Income & Growth Fund XXI 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, 2015	/s/ ROBERT P JOHNSON
	Robert P. Johnson, President
	AEI Fund Management XXI, Inc.
	Managing General Partner

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Patrick W. Keene, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AEI Income & Growth Fund XXI 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, 2015	/s/ PATRICK W KEENE
	Patrick W. Keene, 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 XXI Limited Partnership (the “Partnership”) on Form 10-Q for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Robert P. Johnson, President of AEI Fund Management XXI, Inc., the Managing General Partner of the Partnership, and Patrick W. Keene, 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/ ROBERT P JOHNSON

Robert P. Johnson, President

AEI Fund Management XXI, Inc.

Managing General Partner

November 11, 2015

/s/ PATRICK W KEENE

Patrick W. Keene, Chief Financial Officer

AEI Fund Management XXI, Inc.

Managing General Partner

November 11, 2015

XML

Discontinued Operations (Details) - Cash Flows from Discontinued Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Discontinued Operations:
Operating Activities	$ 0	$ (117)	$ 0	$ 23,595
Investing Activities	$ 0	$ 520,000	$ 0	$ 2,107,831

XML

Real Estate Held for Investment

9 Months Ended

Sep. 30, 2015

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(3) Real Estate Investments –

On May 29, 2014, the Partnership purchased a 50% interest in a Tractor Supply Company store in Canton, Georgia for $2,212,500. The Partnership allocated $185,920 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles and allocated $80,603 to Acquired Below-Market Lease Intangibles. The Partnership incurred $27,970 of acquisition expenses related to the purchase that were expensed. The property is leased to Tractor Supply Company under a Lease Agreement with a remaining primary term of 7.3 years (as of the date of purchase) and annual rent of $164,355 for the interest purchased. The remaining interest in the property was purchased by AEI Accredited Investor Fund V LP, an affiliate of the Partnership.

On July 3, 2014, the Partnership purchased a 30% interest in a Gander Mountain store in Champaign, Illinois for $2,122,500. The Partnership allocated $336,209 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The Partnership incurred $34,052 of acquisition expenses related to the purchase that were expensed. The property is leased to Gander Mountain Company under a Lease Agreement with a remaining primary term of 14.9 years and annual rent of $167,772 for the interest purchased. The remaining interests in the property were purchased by AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP, affiliates of the Partnership.

XML

Organization

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

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

(2) Organization –

AEI Income & Growth Fund XXI 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. Robert P. Johnson, the President and sole director of AFM, serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership.

The terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer. The Partnership commenced operations on April 14, 1995 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted. On January 31, 1997, the offering terminated when the maximum subscription limit of 24,000 Limited Partnership Units was reached. Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $24,000,000 and $1,000, respectively.

During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 90% to the Limited Partners and 10% to the General Partners; provided, however, that such distributions to the General Partners will be subordinated to the Limited Partners first receiving an annual, noncumulative distribution of Net Cash Flow equal to 10% of their Adjusted Capital Contribution, as defined, and, provided further, that in no event will the General Partners receive less than 1% of such Net Cash Flow per annum. Distributions to Limited Partners will be made pro rata by Units.

Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 10% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units.

For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year. Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed. Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.

For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 10% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.

The General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions.

In January 2014, the Managing General Partner mailed a Consent Statement (Proxy) seeking the consent of the Limited Partners to continue the Partnership for an additional 60 months or to initiate the final disposition, liquidation and distribution of all of the Partnership’s properties and assets. On February 14, 2014, the proposal to continue the Partnership was approved with a majority of Units voted in favor of the continuation proposal. As a result, the Managing General Partner will continue the operations of the Partnership for an additional 60 months at which time it will again ask the Limited Partners to vote on the same two proposals.

XML

Balance Sheet - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash	$ 3,481,106	$ 4,540,920
Real Estate Investments:
Land	3,484,216	3,484,216
Buildings	10,126,971	10,126,971
Acquired Intangible Lease Assets	522,129	522,129
Real Estate Held for Investment, at cost	14,133,316	14,133,316
Accumulated Depreciation and Amortization	3,014,248	2,674,423
Real Estate Held for Investment, Net	11,119,068	11,458,893
Total Assets	14,600,174	15,999,813
Current Liabilities:
Payable to AEI Fund Management, Inc.	19,458	30,299
Distributions Payable	270,502	291,921
Unearned Rent	35,215	12,121
Total Current Liabilities	325,175	334,341
Long-term Liabilities:
Acquired Below-Market Lease Intangibles, Net	65,947	74,191
Partners’ Capital (Deficit) :
General Partners	(2,843)	10,980
Limited Partners – 24,000 Units authorized; 20,710 and 21,829 Units issued and outstanding as of 9/30/15 and 12/31/14, respectively	14,211,895	15,580,301
Total Partners' Capital	14,209,052	15,591,281
Total Liabilities and Partners' Capital	14,600,174	15,999,813
Limited Partner [Member]
Partners’ Capital (Deficit) :
Total Partners' Capital	$ 14,211,895	$ 15,580,301

XML

Statement of Changes in Partners' Capital - USD ($)	General Partner [Member]	Limited Partner [Member]	Total
Balance at Dec. 31, 2013	$ 11,205	$ 15,878,354	$ 15,889,559
Balance (in Shares) at Dec. 31, 2013		22,653.11
Balance at Sep. 30, 2014	13,920	$ 16,147,109	16,161,029
Balance (in Shares) at Sep. 30, 2014		22,653.11
Distributions Declared	8,757	$ 867,008	875,765
Net Income	11,472	1,135,763	1,147,235
Balance at Dec. 31, 2014	10,980	$ 15,580,301	15,591,281
Balance (in Shares) at Dec. 31, 2014		21,829
Balance at Sep. 30, 2015	(2,843)	$ 14,211,895	14,209,052
Balance (in Shares) at Sep. 30, 2015		20,710
Distributions Declared	8,228	$ 814,590	822,818
Repurchase of Partnership Units	9,117	$ 902,509	911,626
Repurchase of Partnership Units (in Shares)		1,118.25
Net Income	$ 3,522	$ 348,693	$ 352,215

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Equity Method Investments (Details) - Equity Method Investments - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Schedule of Equity Method Investments [Line Items]
Net Income – Rental Activity	$ 2,611	$ 42,104
Net Income – Gain on Sale of Real Estate	272,471	828,255
Distributions from Net Rental Income	(2,611)	(42,104)
Proceeds from Sale of Class B Interests	(1,267,846)	(3,060,996)
Equity Method Investments at December 31, 2014	0	995,375
CM Lithia Springs DST
Schedule of Equity Method Investments [Line Items]
Net Income – Rental Activity	9	32,956
Net Income – Gain on Sale of Real Estate	11,781	579,036
Distributions from Net Rental Income	(9)	(32,956)
Proceeds from Sale of Class B Interests	(24,872)	(2,087,044)
Equity Method Investments at December 31, 2014	0	13,091
AEI Net Lease Portfolio DST
Schedule of Equity Method Investments [Line Items]
Net Income – Rental Activity	2,602	9,148
Net Income – Gain on Sale of Real Estate	260,690	249,219
Distributions from Net Rental Income	(2,602)	(9,148)
Proceeds from Sale of Class B Interests	(1,242,974)	(973,952)
Equity Method Investments at December 31, 2014	$ 0	$ 982,284

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Discontinued Operations (Details) - Discontinued Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Discontinued Operations [Abstract]
Rental Income	$ 0	$ 0	$ 0	$ 26,740
Property Management Expenses	0	(117)	0	(3,145)
Income from Equity Method Investment Held for Sale	0	99,645	0	611,992
Income from Discontinued Operations	$ 0	$ 99,528	$ 0	$ 635,587

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Basis of Accounting

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [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.

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Balance Sheet (Parentheticals) - shares	Sep. 30, 2015	Dec. 31, 2014
Limited Partner [Member]
Limited Partners, units authorized	24,000	24,000
Limited Partners, units issued	20,710	21,829
Limited Partners, units outstanding	20,710	21,829

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

Discontinued Operations

		Three Months Ended September 30				Nine Months Ended September 30
		2015		2014		2015		2014
Rental Income	$	0	$	0	$	0	$	26,740
Property Management Expenses		0		(117)		0		(3,145)
Income from Equity Method Investment Held for Sale		0		99,645		0		611,992
Income from Discontinued Operations	$	0	$	99,528	$	0	$	635,587

Cash Flow, Supplemental Disclosures [Text Block]

Cash Flows from Discontinued Operations

		Three Months Ended September 30				Nine Months Ended September 30
		2015		2014		2015		2014
Cash Flows from Discontinued Operations:
Operating Activities	$	0	$	(117)	$	0	$	23,595
Investing Activities	$	0	$	520,000	$	0	$	2,107,831

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Document And Entity Information	9 Months Ended
	Sep. 30, 2015 USD ($) shares
Document and Entity Information [Abstract]
Entity Registrant Name	AEI Income & Growth Fund XXI Ltd Partnership
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	20,710
Entity Public Float | $	$ 0
Amendment Flag	false
Entity Central Index Key	0000931755
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

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Organization (Details) - USD ($)	Jan. 31, 1997	Apr. 14, 1995
Accounting Policies [Abstract]
Capital Units, Value		$ 1,000
Limited Partners' Capital Account, Units Outstanding (in Shares)	24,000	1,500
Limited Partners' Contributed Capital	$ 24,000,000	$ (1,500,000)
General Partners' Contributed Capital	$ 1,000

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Statement of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Rental Income	$ 294,898	$ 313,659	$ 884,694	$ 813,070
Expenses:
Partnership Administration – Affiliates	52,025	57,078	165,505	165,388
Partnership Administration and Property Management – Unrelated Parties	7,668	11,194	35,486	43,877
Property Acquisition	0	30,653	0	56,473
Depreciation and Amortization	113,275	120,510	339,825	303,500
Total Expenses	172,968	219,435	540,816	569,238
Operating Income	121,930	94,224	343,878	243,832
Other Income:
Income from Equity Method Investment	0	258,367	0	258,367
Interest Income	2,543	2,097	8,337	9,449
Total Other Income	2,543	260,464	8,337	267,816
Income from Continuing Operations	124,473	354,688	352,215	511,648
Income from Discontinued Operations	0	99,528	0	635,587
Net Income	124,473	454,216	352,215	1,147,235
Net Income Allocated:
General Partners	1,245	4,542	3,522	11,472
Limited Partners	$ 123,228	$ 449,674	$ 348,693	$ 1,135,763
Income per Limited Partnership Unit:
Continuing Operations (in Dollars per share)	$ 5.95	$ 15.50	$ 16.54	$ 22.36
Discontinued Operations (in Dollars per share)	0.00	4.35	0.00	27.78
Total – Basic and Diluted (in Dollars per share)	$ 5.95	$ 19.85	$ 16.54	$ 50.14
Weighted Average Units Outstanding – Basic and Diluted (in Shares)	20,710	22,653	21,083	22,653

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Discontinued Operations

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

(6) Discontinued Operations –

In the fourth quarter of 2013, the Partnership decided to sell its 20% interest in the CarMax Auto Superstore in Lithia Springs, Georgia. At December 31, 2013, the property was classified as Real Estate Held for Sale with a carrying value of $1,508,930. On March 7, 2014, to facilitate the sale of the property, the Partnership contributed its interest in the property via a limited liability company to CM Lithia Springs DST as described in Note 4.

The financial results for this property are reflected as Discontinued Operations in the accompanying financial statements. The following are the results of discontinued operations:

		Three Months Ended September 30				Nine Months Ended September 30
		2015		2014		2015		2014
Rental Income	$	0	$	0	$	0	$	26,740
Property Management Expenses		0		(117)		0		(3,145)
Income from Equity Method Investment Held for Sale		0		99,645		0		611,992
Income from Discontinued Operations	$	0	$	99,528	$	0	$	635,587

		Three Months Ended September 30				Nine Months Ended September 30
		2015		2014		2015		2014
Cash Flows from Discontinued Operations:
Operating Activities	$	0	$	(117)	$	0	$	23,595
Investing Activities	$	0	$	520,000	$	0	$	2,107,831

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Payable to AEI Fund Management, Inc.

9 Months Ended

Sep. 30, 2015

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.

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Discontinued Operations (Details)	Dec. 31, 2013 USD ($)
CarMax Auto Superstore Lithia Springs GA
Discontinued Operations (Details) [Line Items]
Real Estate Held-for-sale	$ 1,508,930

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Real Estate Held for Investment (Details) - USD ($)			12 Months Ended
	Jul. 03, 2014	May. 29, 2014	Jul. 03, 2015	May. 29, 2015
Tractor Supply Canton GA
Real Estate Held for Investment (Details) [Line Items]
Business Acquisition, Effective Date of Acquisition		May 29, 2014
Business Acquisition, Percentage of Voting Interests Acquired		50.00%
Business Acquisition, Name of Acquired Entity		Tractor Supply Company
Business Combination, Consideration Transferred		$ 2,212,500
Business Acquisition, Transaction Costs		$ 27,970
Average Lease Term		7.3 years
Real Estate Revenue, Net				$ 164,355
Gander Mountain Champaign IL
Real Estate Held for Investment (Details) [Line Items]
Business Acquisition, Effective Date of Acquisition	Jul. 03, 2014
Business Acquisition, Percentage of Voting Interests Acquired	30.00%
Business Acquisition, Name of Acquired Entity	Gander Mountain
Business Combination, Consideration Transferred	$ 2,122,500
Business Acquisition, Transaction Costs	$ 34,052
Average Lease Term	14.9 years
Real Estate Revenue, Net			$ 167,772
Leases, Acquired-in-Place [Member] | Tractor Supply Canton GA
Real Estate Held for Investment (Details) [Line Items]
Finite-Lived Intangible Asset, Acquired-in-Place Leases		$ 185,920
Leases, Acquired-in-Place [Member] | Gander Mountain Champaign IL
Real Estate Held for Investment (Details) [Line Items]
Finite-Lived Intangible Asset, Acquired-in-Place Leases	$ 336,209
Off Market Unfavorable Lease Member | Tractor Supply Canton GA
Real Estate Held for Investment (Details) [Line Items]
Below Market Lease, Acquired		$ 80,603

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Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Distribution Policy, Members or Limited Partners, Description	During operations, any Net Cash Flow, as defined, which the General Partners determine to distribute will be distributed 90% to the Limited Partners and 10% to the General Partners; provided, however, that such distributions to the General Partners will be subordinated to the Limited Partners first receiving an annual, noncumulative distribution of Net Cash Flow equal to 10% of their Adjusted Capital Contribution, as defined, and, provided further, that in no event will the General Partners receive less than 1% of such Net Cash Flow per annum. Distributions to Limited Partners will be made pro rata by Units.Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 10% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units.
Key Provisions of Operating or Partnership Agreement, Description	For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year. Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed. Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 10% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.The General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions.

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Partners' Capital

9 Months Ended

Sep. 30, 2015

Partners' Capital Notes [Abstract]

Partners' Capital Notes Disclosure [Text Block]

(7) Partners’ Capital –

For the nine months ended September 30, 2015 and 2014, the Partnership declared distributions of $822,818 and $875,765, respectively.  The Limited Partners received distributions of $814,590 and $867,008 and the General Partners received distributions of $8,228 and $8,757 for the periods, respectively. The Limited Partners' distributions represented $38.64 and $38.27 per Limited Partnership Unit outstanding using 21,083 and 22,653 weighted average Units in 2015 and 2014, respectively. The distributions represented $16.54 and $38.27 per Unit of Net Income and $22.10 and $0 per Unit of return of contributed capital for the periods, respectively.

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $139,022 and $200,478 in 2015 and 2014, respectively. The Limited Partners received distributions of $137,632 and $198,473 and the General Partners received distributions of $1,390 and $2,005 for the periods, respectively. The Limited Partners’ distributions represented $6.51 and $8.76 per Unit for the periods, respectively.

On April 1, 2015, the Partnership repurchased a total of 1,118.25 Units for $902,509 from 27 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sale proceeds. During the first nine months of 2014, the Partnership did not repurchase any Units from the Limited Partners. 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 $9,117 in 2015.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

(8) Fair Value Measurements –

As of September 30, 2015 and December 31, 2014, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

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Equity Method Investments (Tables)

3 Months Ended

9 Months Ended

Dec. 31, 2014

Sep. 30, 2014

Accounting Policies [Abstract]

Equity Method Investments [Table Text Block]

Equity Method Investments

Activity After September 30, 2014:
Net Income – Rental Activity		9		2,602		2,611
Net Income – Gain on Sale of Real Estate		11,781		260,690		272,471
Distributions from Net Rental Income		(9)		(2,602)		(2,611)
Proceeds from Sale of Class B Interests		(24,872)		(1,242,974)		(1,267,846)
Equity Method Investments at December 31, 2014	$	0	$	0	$	0

Equity Method Investments

Activity Through September 30, 2014:		CMLS		ANLP		Total
Real Estate Contributed (at carrying value)	$	1,508,930	$	1,681,698	$	3,190,628
Cash Contributed		12,169		25,319		37,488
Net Income – Rental Activity		32,956		9,148		42,104
Net Income – Gain on Sale of Real Estate		579,036		249,219		828,255
Distributions from Net Rental Income		(32,956)		(9,148)		(42,104)
Proceeds from Sale of Class B Interests		(2,087,044)		(973,952)		(3,060,996)
Equity Method Investments at September 30, 2014		13,091		982,284		995,375

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Equity Method Investments (Details) - Equity Method Investments - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Equity Method Investments [Line Items]
Real Estate Contributed (at carrying value)		$ 0	$ 3,190,628
Cash Contributed		$ 0	37,488
Net Income – Rental Activity	$ 2,611		42,104
Net Income – Gain on Sale of Real Estate	272,471		828,255
Distributions from Net Rental Income	(2,611)		(42,104)
Proceeds from Sale of Class B Interests	(1,267,846)		(3,060,996)
Equity Method Investments at September 30, 2014	0		995,375
CM Lithia Springs DST
Schedule of Equity Method Investments [Line Items]
Real Estate Contributed (at carrying value)			1,508,930
Cash Contributed			12,169
Net Income – Rental Activity	9		32,956
Net Income – Gain on Sale of Real Estate	11,781		579,036
Distributions from Net Rental Income	(9)		(32,956)
Proceeds from Sale of Class B Interests	(24,872)		(2,087,044)
Equity Method Investments at September 30, 2014	0		13,091
AEI Net Lease Portfolio DST
Schedule of Equity Method Investments [Line Items]
Real Estate Contributed (at carrying value)			1,681,698
Cash Contributed			25,319
Net Income – Rental Activity	2,602		9,148
Net Income – Gain on Sale of Real Estate	260,690		249,219
Distributions from Net Rental Income	(2,602)		(9,148)
Proceeds from Sale of Class B Interests	(1,242,974)		(973,952)
Equity Method Investments at September 30, 2014	$ 0		$ 982,284

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Partners' Capital (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 shares	Sep. 30, 2014 shares	Sep. 30, 2015 USD ($) $ / shares $ / item shares	Sep. 30, 2014 USD ($) $ / shares $ / item shares
Partners' Capital (Details) [Line Items]
Partners' Capital Account, Distributions			$ 822,818	$ 875,765
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares) | shares	20,710	22,653	21,083	22,653
Sale Proceeds Distribution Made To Member Or Limited Partner			$ 139,022	$ 200,478
Partners' Capital Account, Redemptions			911,626
Limited Partner [Member]
Partners' Capital (Details) [Line Items]
Partners' Capital Account, Distributions			$ 814,590	$ 867,008
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share) | $ / shares			$ 38.64	$ 38.27
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares) | shares			21,083	22,653
DistributionsPerUnitOfNetIncome (in Dollars per Item) | $ / item			16.54	38.27
Return Of Capital Distribution Made To Member Or Limited Partner Distributions Paid Per Unit (in Dollars per share) | $ / shares			$ 22.10	$ 0
Sale Proceeds Distribution Made To Member Or Limited Partner			$ 137,632	$ 198,473
Sale Proceeds Distribution Made to Limited Partner Per Unit (in Dollars per Item) | $ / item			6.51	8.76
Partners' Capital Account, Units, Redeemed (in Shares) | shares			1,118.25
Partners' Capital Account, Redemptions			$ 902,509
General Partner [Member]
Partners' Capital (Details) [Line Items]
Partners' Capital Account, Distributions			8,228	$ 8,757
Sale Proceeds Distribution Made To Member Or Limited Partner			1,390	$ 2,005
Partners' Capital Account, Redemptions			$ 9,117

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Statement of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net Income	$ 352,215	$ 1,147,235
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization	331,581	299,836
Income from Equity Method Investments	0	870,359
Increase (Decrease) in Payable to AEI Fund Management, Inc.	(10,841)	32,405
Increase (Decrease) in Unearned Rent	23,094	23,094
Total Adjustments	343,834	(515,024)
Net Cash Provided By (Used For) Operating Activities	696,049	632,211
Cash Flows from Investing Activities:
Investments in Real Estate	0	4,335,000
Cash Paid for Equity Method Investments	0	37,488
Proceeds from Equity Method Investments	0	3,103,100
Net Cash Provided By (Used For) Investing Activities	0	(1,269,388)
Cash Flows from Financing Activities:
Distributions Paid to Partners	844,237	875,765
Repurchase of Partnership Units	911,626	0
Net Cash Provided By (Used For) Financing Activities	(1,755,863)	(875,765)
Net Increase (Decrease) in Cash	(1,059,814)	(1,512,942)
Cash, beginning of period	4,540,920	5,553,960
Cash, end of period	3,481,106	4,041,018
Supplemental Disclosure of Non-Cash Investing Activities:
Contribution of Real Estate (at carrying value) in Exchange for Equity Method Investment	$ 0	$ 3,190,628

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Equity Method Investments

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

(4) Equity Method Investments –

In the fourth quarter of 2013, the Partnership decided to sell its 20% interest in the CarMax Auto Superstore in Lithia Springs, Georgia. At December 31, 2013, the property was classified as Real Estate Held for Sale with a carrying value of $1,508,930. The remaining interests in the property were owned by three affiliated entities, AEI Income & Growth Fund 24 LLC, AEI Income & Growth Fund 25 LLC and AEI Private Net Lease Millennium Fund Limited Partnership. On March 7, 2014, to facilitate the sale of the property, the Partnership and affiliated entities contributed their respective interests in the property via a limited liability company to CM Lithia Springs DST (“CMLS”), a Delaware statutory trust (“DST”), in exchange for Class B ownership interests in CMLS. In addition, a small amount of cash was contributed for working capital. A DST is a recognized mechanism for selling property to investors who are looking for replacement real estate to complete like-kind exchanges under Section 1031 of the Internal Revenue Code. As investors purchased Class A ownership interests in CMLS, the proceeds received were used to redeem, on a one-for-one basis, the Class B ownership interests of the Partnership and affiliated entities. From March 13, 2014 to July 25, 2014, CMLS sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Partnership and affiliated entities. As of December 31, 2014, the Partnership had no ongoing interest in CMLS.

On August 29, 2014, to facilitate the sale of its 63% interest in the Tractor Supply Company store in Rapid City, South Dakota, the Partnership contributed the property via a limited liability company to AEI Net Lease Portfolio DST (“ANLP”) in exchange for 16.95% of the Class B ownership interests in ANLP. The remaining interest in the property, owned by an affiliated entity, along with two other properties owned by two other affiliated entities, were also contributed to ANLP in exchange for 83.05% of the Class B ownership interests in ANLP. In addition, cash was contributed for working capital. From September 5, 2014 to October 30, 2014, ANLP sold 100% of its Class A ownership interests to investors and redeemed 100% of the Class B ownership interests from the Partnership and affiliated entities. As of December 31, 2014, the Partnership had no ongoing interest in ANLP.

The investments in CMLS and ANLP were recorded using the equity method of accounting in the accompanying financial statements. Under the equity method, the investments were stated at cost and adjusted for the Partnership’s share of net income or losses and reduced by proceeds received from the sale of the Class B ownership interests of the DSTs as well as distributions from net rental income. During 2014, the investment balances consisted of the following:

Activity Through September 30, 2014:		CMLS		ANLP		Total
Real Estate Contributed (at carrying value)	$	1,508,930	$	1,681,698	$	3,190,628
Cash Contributed		12,169		25,319		37,488
Net Income – Rental Activity		32,956		9,148		42,104
Net Income – Gain on Sale of Real Estate		579,036		249,219		828,255
Distributions from Net Rental Income		(32,956)		(9,148)		(42,104)
Proceeds from Sale of Class B Interests		(2,087,044)		(973,952)		(3,060,996)
Equity Method Investments at September 30, 2014		13,091		982,284		995,375

Activity After September 30, 2014:
Net Income – Rental Activity		9		2,602		2,611
Net Income – Gain on Sale of Real Estate		11,781		260,690		272,471
Distributions from Net Rental Income		(9)		(2,602)		(2,611)
Proceeds from Sale of Class B Interests		(24,872)		(1,242,974)		(1,267,846)
Equity Method Investments at December 31, 2014	$	0	$	0	$	0

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Equity Method Investments (Details)	Aug. 29, 2014	Mar. 07, 2014
CM Lithia Springs DST | CarMax Auto Superstore Lithia Springs GA
Equity Method Investments (Details) [Line Items]
Equity Method Investment, Ownership Percentage		20.00%
Business Acquisition, Effective Date of Acquisition		Mar. 07, 2014
AEI Net Lease Portfolio DST
Equity Method Investments (Details) [Line Items]
Equity Method Investment, Ownership Percentage	16.95%
AEI Net Lease Portfolio DST | Tractor Supply Rapid City SD
Equity Method Investments (Details) [Line Items]
Business Acquisition, Effective Date of Acquisition	Aug. 29, 2014