0001326321-19-000011.txt : 20190329 0001326321-19-000011.hdr.sgml : 20190329 20190329160036 ACCESSION NUMBER: 0001326321-19-000011 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 45 CONFORMED PERIOD OF REPORT: 20181231 FILED AS OF DATE: 20190329 DATE AS OF CHANGE: 20190329 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP CENTRAL INDEX KEY: 0000931755 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 411789725 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-85076 FILM NUMBER: 19716340 BUSINESS ADDRESS: STREET 1: 30 EAST 7TH ST SUITE 1300 CITY: ST PAUL STATE: MN ZIP: 55101 BUSINESS PHONE: 6512277333 MAIL ADDRESS: STREET 1: 30 EAST 7TH ST SUITE 1300 CITY: ST PAUL STATE: MN ZIP: 55101 10-K 1 k214-18.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

For the Fiscal Year Ended:  December 31, 2018

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)
 

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Name of each exchange on which registered
 
 
None
 
None
 

Securities registered pursuant to Section 12(g) of the Act:
 
Limited Partnership Units
 
 
(Title of class)
 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act.     Yes    No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or
Section 15(d) of the Exchange Act.     Yes    No

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 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).     Yes    No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  

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.
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 Act).
Yes    No

As of June 30, 2018, there were 19,402.303 Units of limited partnership interest outstanding and owned by nonaffiliates of the registrant, which Units had an aggregate market value (based solely on the price at which they were sold since there is no ready market for such Units) of $19,402,303.

DOCUMENTS INCORPORATED BY REFERENCE
The registrant has not incorporated any documents by reference into this report.

PART I

ITEM 1.  BUSINESS.

AEI Income & Growth Fund XXI Limited Partnership (the "Partnership" or the "Registrant") is a limited partnership which was organized pursuant to the laws of the State of Minnesota on August 22, 1994.  The registrant is comprised of AEI Fund Management XXI, Inc. ("AFM") as Managing General Partner, Robert P. Johnson, the President and sole director of AFM, as the Individual General Partner, and purchasers of partnership units as Limited Partners.  The Partnership offered for sale up to $24,000,000 of limited partnership interests (the "Units") (24,000 Units at $1,000 per Unit) pursuant to a registration statement effective February 1, 1995.  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 Partnership offering terminated when the maximum subscription limit of 24,000 Limited Partnership Units ($24,000,000) was reached.

The Partnership was organized to acquire existing and newly constructed commercial properties located in the United States, to lease such properties to tenants under net leases, to hold such properties and to eventually sell such properties.  From subscription proceeds, the Partnership purchased ten properties including partial interests in seven properties, at a total cost of $19,686,525.  The balance of the subscription proceeds was applied to organization and syndication costs, working capital reserves and distributions, which represented a return of capital.  The properties are commercial, single tenant buildings leased under net leases.

The Partnership's properties were purchased without any indebtedness.  The Partnership will not finance properties in the future to obtain proceeds for new property acquisitions.  If it is required to do so, the Partnership may incur short-term indebtedness, which may be secured by a portion of the Partnership's properties, to finance day-to-day cash flow requirements (including cash flow necessary to repurchase Units).  The amount of borrowings that may be secured by the properties is limited in the aggregate to 10% of the purchase price of all properties.  The Partnership will not incur borrowings to pay distributions and will not incur borrowings while there is cash available for distributions.

The Partnership will hold its properties until the General Partners determine that the sale or other disposition of the properties is advantageous in view of the Partnership's investment objectives.  In deciding whether to sell properties, the General Partners will consider factors such as potential appreciation, net cash flow and income tax considerations.  The Partnership expects to sell some or all of its properties prior to its final liquidation and to reinvest the proceeds from such sales in additional properties.  The Partnership reserves the right, at the discretion of the General Partners, to either distribute proceeds from the sale of properties to the Partners or to reinvest such proceeds in additional properties, provided that sufficient proceeds are distributed to the Limited Partners to pay federal and state income taxes related to any taxable gain recognized as a result of the sale.

- 2 -

ITEM 1.  BUSINESS.  (Continued)

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 intends to again ask the Limited Partners to vote on the same two proposals.

Leases

Although there are variations in the specific terms of the leases, the following is a summary of the general terms of the Partnership's leases.  The properties are leased to tenants under net leases, classified as operating leases.  Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property.  For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot.  At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years, except for the Tractor Supply Company store, which had a remaining primary term of 7.3 years.  The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term.  The leases provide for base annual rental payments, payable in monthly installments, and contain rent clauses which entitle the Partnership to receive additional rent in future years based on stated rent increases.

Property Activity During the Last Three Years

As of December 31, 2015, the Partnership owned interests in seven properties with a total cost of $14,052,713.  During the year ended December 31, 2017, the Partnership sold one property interest and received net sale proceeds of $1,696,401, which resulted in a net gain of $1,043,829.  During 2016, the Partnership expended $1,809,915 to purchase one additional property as it reinvested cash generated from property sales completed in 2014.  As of December 31, 2018, the Partnership owned interests in seven properties with a total cost of $14,645,171.

Major Tenants

During 2018, five tenants each contributed more than ten percent of the Partnership's total rental income.  The major tenants in aggregate contributed 100% of total rental income in 2018.  It is anticipated that, based on minimum rental payments required under the leases, each major tenant will continue to contribute more than ten percent of rental income in 2019.  Any failure of these major tenants could materially affect the Partnership's net income and cash distributions.

Competition

The Partnership is a minor factor in the commercial real estate business.  There are numerous entities engaged in the commercial real estate business which have greater financial resources than the Partnership.  At the time the Partnership elects to dispose of its properties, the Partnership will be in competition with other persons and entities to find buyers for its properties.
- 3 -

ITEM 1.  BUSINESS.  (Continued)

Employees

The Partnership has no direct employees.  Management services are performed for the Partnership by AEI Fund Management, Inc., an affiliate of AFM.

ITEM 1A.  RISK FACTORS.

Not required for a smaller reporting company.

ITEM 1B.  UNRESOLVED STAFF COMMENTS.

Not required for a smaller reporting company.

ITEM 2.  PROPERTIES.

Investment Objectives

The Partnership's investment objectives are to acquire existing or newly-developed commercial properties throughout the United States that offer the potential for (i) regular cash distributions of lease income; (ii) growth in lease income through rent escalation provisions; (iii) preservation of capital through all-cash transactions; (iv) capital growth through appreciation in the value of properties; and (v) stable property performance through long-term lease contracts.  The Partnership does not have a policy, and there is no limitation, as to the amount or percentage of assets that may be invested in any one property.  However, to the extent possible, the General Partners attempt to diversify the properties by tenant and geographic location.

Description of Properties

The Partnership's properties are commercial, single tenant buildings.  The properties were acquired on a debt-free basis and are leased to tenants under net leases, classified as operating leases.  The Partnership holds an undivided fee simple interest in the properties.

The Partnership's properties are subject to the general competitive conditions incident to the ownership of single tenant investment real estate.  Since each property is leased under a long‑term lease, there is little competition until the Partnership decides to sell the property.  At this time, the Partnership will be competing with other real estate owners, on both a national and local level, in attempting to find buyers for the properties.  In the event of a tenant default, the Partnership would be competing with other real estate owners, who have property vacancies, to attract a new tenant to lease the property.  The Partnership's tenants operate in industries that are competitive and can be affected by factors such as changes in regional or local economies, seasonality and changes in consumer preference.

- 4 -

ITEM 2.  PROPERTIES.  (Continued)

The following table is a summary of the properties that the Partnership acquired and owned as of December 31, 2018.
Property
Purchase
Date
 
Original Property
Cost
 
Tenant
Annual
Lease
Payment
Annual
Rent
Per Sq. Ft.
                   
Jared Jewelry Store
   Hanover, MD
   (50%)
2/9/04
$
1,989,135
 
Sterling
Jewelers Inc.
$
203,946
$
70.22
                   
Jared Jewelry Store
   Auburn Hills, MI
   (40%)
1/14/05
$
1,466,048
 
Sterling
Jewelers Inc.
$
124,049
$
53.85
                   
Best Buy Store
   Eau Claire, WI
   (54%)
1/31/08
$
3,637,706
 
Best Buy
Stores, L.P.
$
282,241
$
11.03
                   
Fresenius Medical Center
   Shreveport, LA
   (55%)
10/2/08
$
1,407,367
 
Bio-Medical
Applications of
Louisiana, LLC
$
112,772
$
24.12
                   
Tractor Supply Company Store
   Canton, GA
   (50%)
5/29/14
$
2,212,500
(1)
Tractor Supply
Company
$
172,573
$
14.45
                   
Gander Mountain Store
   Champaign, IL
   (30%)
7/3/14
$
2,122,500
(1)
None (2)
       
                   
Dollar Tree
   Cincinnati, OH
2/3/16
$
1,809,915
(1)
Dollar Tree
Stores, Inc.
$
122,169
$
12.28
                   

(1)  Does not include acquisition costs that were expensed.
(2)  This property is vacant and listed for lease.

The properties listed above with a partial ownership percentage are owned with the following affiliated entities:  Jared Jewelry store in Hanover, Maryland (AEI Net Lease Income & Growth Fund XX Limited Partnership); Jared Jewelry store in Auburn Hills, Michigan (AEI Income & Growth Fund 25 LLC); Best Buy store (AEI Income & Growth Fund 23 LLC and AEI Income & Growth Fund 26 LLC); Fresenius Medical Center (AEI Income & Growth Fund 24 LLC); Tractor Supply Company store (AEI Accredited Investor Fund V LP); and Gander Mountain store (AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP).

The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method.  Each tenant-in-common owns a separate, undivided interest in the properties.  Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests.  The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses.
- 5 -

ITEM 2.  PROPERTIES.  (Continued)

At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years, except for the Tractor Supply Company store, which had a remaining primary term of 7.3 years.  The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term.  The leases for the Best Buy store and the Fresenius Medical Center were extended to end on January 19, 2023 and June 30, 2027, respectively.

Pursuant to the lease agreements, the tenants are required to provide proof of adequate insurance coverage on the properties they occupy.  The General Partners believe the properties are adequately covered by insurance and consider the properties to be well-maintained and sufficient for the Partnership's operations.

For tax purposes, the Partnership's properties are depreciated under the Modified Accelerated Cost Recovery System (MACRS).  The largest depreciable component of a property is the building which is depreciated using the straight-line method over 39 years.  The remaining depreciable component of a property is land improvements which are depreciated using an accelerated method over 15 years.  Since the Partnership has tax-exempt Partners, the Partnership is subject to the rules of Section 168(h)(6) of the Internal Revenue Code which requires a percentage of the properties' depreciable components to be depreciated over longer lives using the straight-line method.  In general, the federal tax basis of the properties for tax depreciation purposes equals the book depreciable cost of the properties plus the amortizable cost of the related intangible lease assets, except for properties purchased after January 1, 2009.  For those properties, acquisition expenses that were expensed for book purposes were capitalized and added to the basis of the property for tax depreciation purposes.

At December 31, 2018, all properties listed above were 100% occupied.  The only exception is the Gander Mountain store that became vacant in July 2017.

ITEM 3.  LEGAL PROCEEDINGS.

None.

ITEM 4.  MINE SAFETY DISCLOSURES.

Not applicable.


PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
                 HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

(a) As of December 31, 2018, there were 1,068 holders of record of the registrant's Limited Partnership Units.  There is no other class of security outstanding or authorized.  The registrant's Units are not a traded security in any market.  During the period covered by this report, the Partnership did not sell any equity securities that are not registered under the Securities Act of 1933.
- 6 -

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
                 HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Cash distributions of $7,927 and $19,491 were made to the General Partners and $784,800 and $1,929,596 were made to the Limited Partners for 2018 and 2017, respectively.  The distributions were made on a quarterly basis and represented Net Cash Flow, as defined, except as discussed below.  These distributions should not be compared with dividends paid on capital stock by corporations.

As part of the Limited Partners' distributions discussed above, the Partnership distributed net sale proceeds of $264,735 and $1,068,124 in 2018 and 2017, respectively.

(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.

Small Business Issuer Purchases of Equity Securities

Period
Total Number
of Units
Purchased
Average
Price Paid
per Unit
Total Number of Units
Purchased as Part of
Publicly Announced
Plans or Programs
Maximum Number
of Units that May Yet
Be Purchased Under
the Plans or Programs
         
10/1/18 to 10/31/18
73.67
$732.75
4,671.36(1)
(2)
         
11/1/18 to 11/30/18
--
--
--
--
         
12/1/18 to 12/31/18
--
--
--
--

(1)
The Partnership's repurchase plan is mandated by the Partnership Agreement as included in the prospectus related to the original offering of the Units.
(2)
The Partnership Agreement contains annual limitations on repurchases described in the paragraph above and has no expiration date.

- 7 -

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
                 HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Other Information

Effective April 11, 2016, the Financial Industry Regulatory Authority ("FINRA") implemented Rule 2310, a revised rule that requires securities broker-dealers to report on customer account statements the value of investment units of non-traded securities, such as REITs, LLCs and Limited Partnerships, provided that the per unit value is derived using methodology set forth by the rule.

At December 31, 2018, the estimated value of the Partnership's Units was $793 per Unit.  The Managing General Partner is the party responsible for the estimated value per Unit.  The estimated value was derived using methodology that conforms to standard industry practice and based upon material assistance and/or confirmation by third-party valuation expert(s), in accordance with the appraised value method set forth in FINRA Rule 2340(c)(1)(B).

In determining the estimated value of each property, the Managing General Partner relied on some or all of the following external information sources, as well as its own experience in the commercial, net leased property industry and knowledge of each property:

·
Opinions of value from real estate brokerage firms
·
Appraisal reports from independent commercial property appraisers
·
Industry market reports from real estate brokerage and appraisal firms
·
Market values from comparable properties listed for sale or recently sold
·
Interviews with real estate brokers and tenants
·
Tenant financial reports and other credit information, where available

The per Unit value was the aggregate estimated value of the Partnership's assets less the Partnership's liabilities, and less the value attributable to the interest of the General Partners, divided by the number of Units outstanding.  The Partnership's cash, receivables and liabilities were valued at face value.  Each of the Partnership's properties were valued by dividing their annual rental income as of December 1, 2018 by a capitalization rate the Managing General Partner believed, based upon the aforementioned valuation process, to be representative of the retail market for the sale of each property. The resulting value for each property was reviewed to determine that it also reflected circumstances that may have been unique to each specific property.  For recently acquired properties, an appraisal report received at or near the time of acquisition from an independent commercial property appraiser was used to determine the value of the property.  The appraisal report is used to value the property for approximately one year after the date of acquisition.  The valuations were estimates only, and were based on a number of assumptions which may not be accurate or complete.  In addition, property values are subject to change and could decline after the date of the valuations.  Accordingly, this estimated value should not be viewed as the amount at which a Limited Partner may be able to sell his units, or the fair market value of the Partnership properties, nor does it represent the amount of net proceeds Limited Partners would receive if the Partnership properties were sold and the proceeds distributed in a liquidation of the Partnership.


- 8 -

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
                 HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

The following table provides a breakdown of each major asset type, liabilities and the number of Units that were used to calculate the estimated value per Unit as of December 31, 2018 and 2017:

   
December 31,
2018
 
December 31,
2017
Properties
$
14,806,000
$
16,540,000
Cash
 
975,000
 
2,197,000
Current Liabilities
 
(293,000)
 
(243,000)
Value attributable to the interest of the General Partners
 
(155,000)
 
(185,000)
Value attributable to the interest of the Limited Partners
$
15,333,000
$
18,309,000
Limited Partnership Units outstanding
 
19,329
 
19,616
         

ITEM 6.  SELECTED FINANCIAL DATA.

Not required for a smaller reporting company.

ITEM 7.  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 7.  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 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 7.  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.

- 11 -

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

Results of Operations

For the years ended December 31, 2018 and 2017, the Partnership recognized rental income of $1,036,602 and $1,197,392, respectively.  In 2018, rental income decreased due to the sale of one property in 2017 and the Gander Mountain situation, as discussed below.  These decreases were partially offset by a rent increase on one property.  Based on the scheduled rent for the properties owned as of February 28, 2019, the Partnership expects to recognize rental income of approximately $1,037,000 in 2019.

For the years ended December 31, 2018 and 2017, the Partnership incurred Partnership administration expenses from affiliated parties of $147,914 and $166,178, 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 $97,109 and $110,012, 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.

The Partnership owns a 30% interest in the Gander Mountain store in Champaign, Illinois.  The remaining interests in the property are owned by affiliates of the Partnership.  On March 10, 2017, Gander Mountain Company filed for Chapter 11 reorganization and announced it was closing the store, following a liquidation sale of its on‑site assets.  In June 2017, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2017.  At this time, the tenant returned possession of the property to the owners and the Partnership became responsible for its 30% share of real estate taxes and other costs associated with maintaining the property.  The tenant paid rent through June 2017.  The owners have listed the property for lease with a real estate broker in the Champaign area.  The annual rent from this property represented approximately 13% of the total annual rent of the Partnership's property portfolio.  The loss of rent and increased expenses related to this property decreased the Partnership's cash flow.  Consequently, in the third quarter of 2017, the Partnership reduced its regular quarterly cash distribution rate from $13.18 per Unit to $10.51 per Unit.

As a result of the bankruptcy court terminating the lease for the Gander Mountain store, the Partnership included an additional $270,097 in Depreciation and Amortization in the second quarter of 2017, which represented the unamortized balance of the in-place lease intangible that was created when the property was purchased in 2014.

In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end on June 30, 2022.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $30,000 that was capitalized.  In addition, beginning on April 1, 2017, the tenant received free rent for three months that equaled $36,362.

- 12 -

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

In the first quarter of 2017, the Partnership decided to sell the KinderCare daycare center.  In October 2017, the Partnership entered into an agreement to sell the property to an unrelated third party.  On November 14, 2017, the sale closed with the Partnership receiving net proceeds of $1,696,401, which resulted in a net gain of $1,043,829.  At the time of sale, the cost and related accumulated depreciation was $1,294,207 and $641,635, respectively.

In March 2019, the Partnership entered into an agreement with the tenant of the Jared Jewelry store in Auburn Hills, Michigan to extend the lease term five years to end on December 31, 2024.  As part of the agreement, the annual rent will decrease from $124,049 to $105,560 effective January 1, 2020.

For the years ended December 31, 2018 and 2017, the Partnership recognized interest income of $7,647 and $2,078, respectively.

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 year ended December 31, 2018, the Partnership's cash balances decreased $1,149,087 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 year ended December 31, 2017, the Partnership's cash balances increased $1,451,269 as a result of cash generated from the sale of property, which was partially offset by cash paid for tenant improvement allowances, and 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 $841,326 in 2017 to $907,211 in 2018 as a result of a decrease in Partnership administration and property management expenses in 2018 and net timing differences in the collection of payments from the tenants and the payment of expenses, which were partially offset by a decrease in total rental and interest income in 2018.

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 year ended December 31, 2017, the Partnership generated cash flow from the sale of real estate of $1,696,401.  During the same period, the Partnership expended $76,750 to invest in real properties as the Partnership reinvested cash generated from property sales completed in 2014.

In April 2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to end on June 30, 2027.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $46,750 that was capitalized and will be depreciated.
- 13 -

ITEM 7.  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 years ended December 31, 2018 and 2017, the Partnership declared distributions of $792,727 and $1,949,087, respectively, which were distributed 99% to the Limited Partners and 1% to the General Partners.  The Limited Partners received distributions of $784,800 and $1,929,596 and the General Partners received distributions of $7,927 and $19,491 for the years, respectively.  In December 2017, the Partnership declared a special distribution of net sale proceeds of $1,010,101 which was paid in the first week of January 2018 and resulted in higher distributions paid in 2018 and a higher distributions payable at December 31, 2017.

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $267,409 and $1,078,913 in 2018 and 2017, respectively.  The Limited Partners received distributions of $264,735 and $1,068,124 and the General Partners received distributions of $2,674 and $10,789 for the years, respectively.  The Limited Partners' distributions represented $13.64 and $54.45 per Unit for the years, 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.

During 2018, the Partnership repurchased a total of 287.00 Units for $240,939 from 14 Limited Partners in accordance with the Partnership Agreement.  During 2017, the Partnership repurchased a total of 20.00 Units for $17,616 from one Limited Partner.  The Partnership acquired these Units using Net Cash Flow from operations.  In prior years, the Partnership repurchased a total of 4,364.36 Units for $3,468,426 from 180 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 $2,434 and $177 in 2018 and 2017, respectively.

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 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

Off-Balance Sheet Arrangements

As of December 31, 2018 and 2017, 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 7A.  QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for a smaller reporting company.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

See accompanying index to financial statements.
- 15 -





AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

INDEX TO FINANCIAL STATEMENTS




 
Page
   
Report of Independent Registered Public Accounting Firm
17
   
Balance Sheets as of December 31, 2018 and 2017
18
   
Statements for the Years Ended December 31, 2018 and 2017:
 
   
 
Income
19
     
 
Cash Flows
20
     
 
Changes in Partners' Capital (Deficit)
21
   
Notes to Financial Statements
22 – 34


- 16 -


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners:
AEI Income & Growth Fund XXI Limited Partnership
St. Paul, Minnesota

Opinion on the Financial Statements

We have audited the accompanying balance sheets of AEI Income & Growth Fund XXI Limited Partnership (a Minnesota limited partnership) as of December 31, 2018 and 2017, and the related statements of income, changes in partners' capital (deficit), and cash flows for each of the years in the two-year period ended December 31, 2018, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
 
 /s/ BOULAY PLLP  
Boulay PLLP
 
   
We have served as the Partnership's auditor since 1994
   
Minneapolis, Minnesota
 
March 29, 2019
 
- 17 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
BALANCE SHEETS

ASSETS

   
December 31,
   
December 31,
 
   
2018
   
2017
 
Current Assets:
           
Cash
 
$
993,307
   
$
2,142,394
 
Receivables
   
3,664
     
50,817
 
Total Current Assets
   
996,971
     
2,193,211
 
                 
Real Estate Investments:
               
Land
   
3,659,461
     
3,659,461
 
Buildings
   
10,339,539
     
10,339,539
 
Acquired Intangible Lease Assets
   
807,178
     
807,178
 
Real Estate Held for Investment, at cost
   
14,806,178
     
14,806,178
 
Accumulated Depreciation and Amortization
   
(4,239,689
)
   
(3,769,205
)
Real Estate Held for Investment, Net
   
10,566,489
     
11,036,973
 
Total Assets
 
$
11,563,460
   
$
13,230,184
 

LIABILITIES AND PARTNERS' CAPITAL

Current Liabilities:
           
Payable to AEI Fund Management, Inc.
 
$
107,167
   
$
27,235
 
Distributions Payable
   
198,186
     
1,218,384
 
Total Current Liabilities
   
305,353
     
1,245,619
 
                 
Long-term Liabilities:
               
Acquired Below-Market Lease Intangibles, Net
   
87,655
     
106,755
 
                 
Partners' Capital :
               
General Partners
   
2,998
     
10,072
 
Limited Partners – 24,000 Units authorized;
   19,329 and 19,616 Units issued and outstanding
   as of December 31, 2018 and 2017, respectively
   
11,167,454
     
11,867,738
 
Total Partners' Capital
   
11,170,452
     
11,877,810
 
Total Liabilities and Partners' Capital
 
$
11,563,460
   
$
13,230,184
 



The accompanying Notes to Financial Statements are an integral part of these statements.
- 18 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
STATEMENTS OF INCOME


   
Years Ended December 31
 
   
2018
   
2017
 
             
Rental Income
 
$
1,036,602
   
$
1,197,392
 
                 
Expenses:
               
Partnership Administration – Affiliates
   
147,914
     
166,178
 
Partnership Administration and Property
   Management – Unrelated Parties
   
97,109
     
110,012
 
Depreciation and Amortization
   
470,484
     
760,422
 
Total Expenses
   
715,507
     
1,036,612
 
                 
Operating Income
   
321,095
     
160,780
 
                 
Other Income:
               
Gain on Sale of Real Estate
   
0
     
1,043,829
 
Interest Income
   
7,647
     
2,078
 
Total Other Income
   
7,647
     
1,045,907
 
                 
Net Income
 
$
328,742
   
$
1,206,687
 
                 
Net Income Allocated:
               
General Partners
 
$
3,287
   
$
48,293
 
Limited Partners
   
325,455
     
1,158,394
 
Total
 
$
328,742
   
$
1,206,687
 
                 
Net Income per Limited Partnership Unit:
 
$
16.74
   
$
59.04
 
                 
Weighted Average Units Outstanding –
      Basic and Diluted
   
19,437
     
19,621
 
                 









The accompanying Notes to Financial Statements are an integral part of these statements.
- 19 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS


   
Years Ended December 31
 
   
2018
   
2017
 
             
Cash Flows from Operating Activities:
           
Net Income
 
$
328,742
   
$
1,206,687
 
                 
Adjustments to Reconcile Net Income
To Net Cash Provided by Operating Activities:
               
Depreciation and Amortization
   
451,384
     
741,322
 
Gain on Sale of Real Estate
   
0
     
(1,043,829
)
(Increase) Decrease in Receivables
   
47,153
     
(50,817
)
Increase (Decrease) in Payable to
   AEI Fund Management, Inc.
   
79,932
     
84
 
Increase (Decrease) in Unearned Rent
   
0
     
(12,121
)
Total Adjustments
   
578,469
     
(365,361
)
Net Cash Provided By (Used For)
   Operating Activities
   
907,211
     
841,326
 
                 
Cash Flows from Investing Activities:
               
Investments in Real Estate
   
0
     
(76,750
)
Proceeds from Sale of Real Estate
   
0
     
1,696,401
 
Net Cash Provided By (Used For)
   Investing Activities
   
0
     
1,619,651
 
                 
Cash Flows from Financing Activities:
               
Distributions Paid to Partners
   
(1,812,925
)
   
(991,915
)
Repurchase of Partnership Units
   
(243,373
)
   
(17,793
)
Net Cash Provided By (Used For)
   Financing Activities
   
(2,056,298
)
   
(1,009,708
)
                 
Net Increase (Decrease) in Cash
   
(1,149,087
)
   
1,451,269
 
                 
Cash, beginning of year
   
2,142,394
     
691,125
 
                 
Cash, end of year
 
$
993,307
   
$
2,142,394
 
                 


The accompanying Notes to Financial Statements are an integral part of these statements.
- 20 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)


   
General Partners
   
Limited Partners
   
Total
   
Limited Partnership Units Outstanding
 
                         
                         
Balance, December 31, 2016
 
$
(18,553
)
 
$
12,656,556
   
$
12,638,003
     
19,635.64
 
                                 
Distributions Declared
   
(19,491
)
   
(1,929,596
)
   
(1,949,087
)
       
                                 
Repurchase of Partnership Units
   
(177
)
   
(17,616
)
   
(17,793
)
   
(20.00
)
                                 
Net Income
   
48,293
     
1,158,394
     
1,206,687
         
                                 
Balance, December 31, 2017
   
10,072
     
11,867,738
     
11,877,810
     
19,615.64
 
                                 
Distributions Declared
   
(7,927
)
   
(784,800
)
   
(792,727
)
       
                                 
Repurchase of Partnership Units
   
(2,434
)
   
(240,939
)
   
(243,373
)
   
(287.00
)
                                 
Net Income
   
3,287
     
325,455
     
328,742
         
                                 
Balance, December 31, 2018
 
$
2,998
   
$
11,167,454
   
$
11,170,452
     
19,328.64
 
                                 



















The accompanying Notes to Financial Statements are an integral part of these statements.
- 21 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(1)  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.

- 22 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(1)  Organization – (Continued)

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 intents to again ask the Limited Partners to vote on the same two proposals.

(2)  Summary of Significant Accounting Policies –

Financial Statement Presentation

The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.

Accounting Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP).  Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could differ from those estimates.  Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets.

The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales.  A change in those market events and conditions could have a material effect on the carrying amount of its real estate.

- 23 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(2)  Summary of Significant Accounting Policies – (Continued)

Cash Concentrations of Credit Risk

The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits.

Receivables

Credit terms are extended to tenants in the normal course of business.  The Partnership performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral.

Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary.  Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership's credit terms.  Receivables considered uncollectible are written off.

Income Taxes

The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners.  In general, no recognition has been given to income taxes in the accompanying financial statements.

The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities.  If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly.  Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure.  The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015.

Revenue Recognition

The Partnership's real estate is leased under net leases, classified as operating leases.  The leases provide for base annual rental payments payable in monthly installments.  The Partnership recognizes rental income according to the terms of the individual leases.  For leases that contain stated rental increases, the increases are recognized in the year in which they are effective.  Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases.

- 24 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(2)  Summary of Significant Accounting Policies – (Continued)

Real Estate

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 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.

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.

- 25 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(2)  Summary of Significant Accounting Policies – (Continued)

The Partnership tests real estate 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, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition.  If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property.  For properties held for sale, the Partnership 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.

For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years.  Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease.

The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership's operations and financial results.  Therefore, the results from operating and selling the property are included in continuing operations.

The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method.  Each tenant-in-common owns a separate, undivided interest in the properties.  Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests.  The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses.

The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located.  These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found.  For each property, an environmental assessment is completed prior to acquisition.  In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant's business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage.  Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated.  There were no environmental issues noted or liabilities recorded at December 31, 2018 and 2017.

Fair Value Measurements

As of December 31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.
- 26 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(2)  Summary of Significant Accounting Policies – (Continued)

Income Per Unit

Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented.  Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2018 and 2017.

Reportable Segments

The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries.  Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis.  Therefore, the Partnership's properties are classified as one reportable segment.

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers.  This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.  The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle.  Those steps include the following:  (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation.

Management has concluded that all of the Partnership's material revenue streams fall outside of the scope of this guidance.  The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption.  During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January 1, 2018.  Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard.  The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018, and the standard did not have a material impact on the Partnership's financial statements.

- 27 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(2)  Summary of Significant Accounting Policies – (Continued)

In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption.  We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized.  Prior to the adoption of the new standard, all of our real estate acquisitions completed after January 1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January 1, 2018, and applied this guidance prospectively.  The adoption did not have a material effect on the Partnership's financial statements.

Recently Issued Accounting Pronouncements

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10‑Q for the quarter ended March 31, 2019.

In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases.  The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments.  The accounting guidance for lessors is largely unchanged.  The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted.  It is to be adopted using a modified retrospective approach.  Management is currently evaluating the impact the adoption of this guidance will have on the Partnership's financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership.

- 28 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(3)  Related Party Transactions –

The Partnership owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed:  Jared Jewelry store in Hanover, Maryland (50% – AEI Net Lease Income & Growth Fund XX Limited Partnership); Jared Jewelry store in Auburn Hills, Michigan (40% --– AEI Income & Growth Fund 25 LLC); Best Buy store (54% – AEI Income & Growth Fund 23 LLC and AEI Income & Growth Fund 26 LLC); Fresenius Medical Center (55% – AEI Income & Growth Fund 24 LLC); Tractor Supply Company store (50% – AEI Accredited Investor Fund V LP); and Gander Mountain store (30% – AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP).

AEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31:
     
2018
 
2017
           
a.
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.
$
147,914
$
166,178
           
b.
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management.  These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.
$
97,109
$
110,012
           
c.
AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.
$
0
$
3,132
           

The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b and c.  This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

(4)  Real Estate Investments –

The Partnership leases its properties to tenants under net leases, classified as operating leases.  Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property.  For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot.  At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years, except for the Tractor Supply Company store, which had a remaining primary term of 7.3 years.  The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term.  The leases for the Best Buy store and the Fresenius Medical Center were extended to end on January 19, 2023 and June 30, 2027, respectively.
- 29 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(4)  Real Estate Investments – (Continued)

The Partnership's properties are commercial, single-tenant buildings.  The Jared Jewelry store in Hanover, Maryland was constructed in 2001 and acquired in 2004.  The Jared Jewelry store in Auburn Hills, Michigan was constructed in 1999 and acquired in 2005.  The Best Buy store was constructed in 1990, renovated in 1997 and acquired in 2008.  The Fresenius Medical Center was constructed and acquired in 2008.  The Tractor Supply Company store was constructed in 2006 and acquired in 2014.  The Gander Mountain store was constructed in 1994 and renovated and acquired in 2014.  The Dollar Tree store was constructed in 2015 and acquired in 2016.  There have been no costs capitalized as improvements subsequent to the acquisitions, except for $46,750 of tenant improvements related to the Fresenius Medical Center.

The cost of the properties not held for sale and related accumulated depreciation at December 31, 2018 are as follows:
Property
Land
Buildings
Total
Accumulated
Depreciation
                 
Jared Jewelry, Hanover, MD
$
861,065
$
1,128,070
$
1,989,135
$
671,207
Jared Jewelry, Auburn Hills, MI
 
280,993
 
1,185,055
 
1,466,048
 
661,647
Best Buy, Eau Claire, WI
 
853,357
 
2,784,349
 
3,637,706
 
1,215,827
Fresenius Medical Center, Shreveport, LA
 
102,046
 
1,305,321
 
1,407,367
 
523,033
Tractor Supply, Canton, GA
 
700,000
 
1,407,183
 
2,107,183
 
257,985
Gander Mountain, Champaign, IL
 
507,000
 
1,279,291
 
1,786,291
 
230,274
Dollar Tree, Cincinnati, OH
 
355,000
 
1,250,270
 
1,605,270
 
145,867
 
$
3,659,461
$
10,339,539
$
13,999,000
$
3,705,840
                 

For the years ended December 31, 2018 and 2017, the Partnership recognized depreciation expense of $416,388 and $424,895, respectively.

The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:
   
2018
 
2017
   
Cost
 
Accumulated Amortization
 
Cost
 
Accumulated Amortization
Acquired Intangible Lease Assets
   (in-place lease intangibles with a weighted average
         life of 64 and 76 months, respectively)
$
807,178
$
533,849
$
807,178
$
479,753
                 
Acquired Below-Market Lease Intangibles
   (weighted average life of 59 and 71 months, respectively)
$
161,007
$
73,352
$
161,007
$
54,252
                 

For the years ended December 31, 2018 and 2017, the value of in-place lease intangibles amortized to expense was $54,096 and $335,527, and the increase to rental income for below-market leases was $19,100 and $19,100, respectively.

- 30 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(4)  Real Estate Investments – (Continued)

For lease intangibles not held for sale at December 31, 2018, the estimated amortization for the next five years is as follows:

   
Amortization Expense for
In-Place Lease Intangibles
 
Increase to Rental Income
for Below-Market Leases
             
2019
 
$
54,096
 
$
19,100
2020
   
54,096
   
19,100
2021
   
47,762
   
16,348
2022
   
28,744
   
8,108
2023
   
28,744
   
8,108
   
$
213,442
 
$
70,764
             

The Partnership owns a 30% interest in the Gander Mountain store in Champaign, Illinois.  The remaining interests in the property are owned by affiliates of the Partnership.  On March 10, 2017, Gander Mountain Company filed for Chapter 11 reorganization and announced it was closing the store, following a liquidation sale of its on‑site assets.  In June 2017, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2017.  At this time, the tenant returned possession of the property to the owners and the Partnership became responsible for its 30% share of real estate taxes and other costs associated with maintaining the property.  The tenant paid rent through June 2017.  The owners have listed the property for lease with a real estate broker in the Champaign area.  The annual rent from this property represented approximately 13% of the total annual rent of the Partnership's property portfolio.  The loss of rent and increased expenses related to this property decreased the Partnership's cash flow.  Consequently, in the third quarter of 2017, the Partnership reduced its regular quarterly cash distribution rate from $13.18 per Unit to $10.51 per Unit.

As a result of the bankruptcy court terminating the lease for the Gander Mountain store, the Partnership included an additional $270,097 in Depreciation and Amortization in the second quarter of 2017, which represented the unamortized balance of the in-place lease intangible that was created when the property was purchased in 2014.

In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end on June 30, 2022.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $30,000 that was capitalized.  In addition, beginning on April 1, 2017, the tenant received free rent for three months that equaled $36,362.

- 31 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(4)  Real Estate Investments – (Continued)

In the first quarter of 2017, the Partnership decided to sell the KinderCare daycare center.  In October 2017, the Partnership entered into an agreement to sell the property to an unrelated third party.  On November 14, 2017, the sale closed with the Partnership receiving net proceeds of $1,696,401, which resulted in a net gain of $1,043,829.  At the time of sale, the cost and related accumulated depreciation was $1,294,207 and $641,635, respectively.

In April 2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to end on June 30, 2027.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $46,750 that was capitalized and will be depreciated.

In March 2019, the Partnership entered into an agreement with the tenant of the Jared Jewelry store in Auburn Hills, Michigan to extend the lease term five years to end on December 31, 2024.  As part of the agreement, the annual rent will decrease from $124,049 to $105,560 effective January 1, 2020.

For properties owned as of December 31, 2018, the minimum future rent payments required by the leases are as follows:
2019
$
1,017,750
2020
 
893,701
2021
 
857,067
2022
 
535,877
2023
 
249,357
Thereafter
 
649,221
 
$
4,202,973
     

There were no contingent rents recognized in 2018 and 2017.

- 32 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(5)  Major Tenants –

The following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31:

Tenants
 
Industry
 
2018
 
2017
             
Sterling Jewelers Inc.
 
Retail
$
327,995
$
327,995
Best Buy Stores, L.P.
 
Retail
 
281,992
 
268,800
Tractor Supply Company
 
Retail
 
183,565
 
183,565
Dollar Tree Stores, Inc.
 
Retail
 
130,278
 
130,277
Bio-Medical Applications of Louisiana, LLC
 
Medical
 
112,772
 
N/A
Aggregate rental income of major tenants
   
$
1,036,602
$
910,637
Aggregate rental income of major tenants
as a percentage of total rental income
     
100%
 
76%
             

(6)  Partners' Capital –

For the years ended December 31, 2018 and 2017, the Partnership declared distributions of $792,727 and $1,949,087, respectively.  The Limited Partners received distributions of $784,800 and $1,929,596 and the General Partners received distributions of $7,927 and $19,491 for the years, respectively.  The Limited Partners' distributions represented $40.38 and $98.34 per Limited Partnership Unit outstanding using 19,437 and 19,621 weighted average Units in 2018 and 2017, respectively.  The distributions represented $4.27 and $58.14 per Unit of Net Income and $36.11 and $40.20 per Unit of contributed capital in 2018 and 2017, respectively.

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $267,409 and $1,078,913 in 2018 and 2017, respectively.  The Limited Partners received distributions of $264,735 and $1,068,124 and the General Partners received distributions of $2,674 and $10,789 for the years, respectively.  The Limited Partners' distributions represented $13.64 and $54.45 per Unit for the years, 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.

- 33 -

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017

(6)  Partners' Capital – (Continued)

During 2018, the Partnership repurchased a total of 287.00 Units for $240,939 from 14 Limited Partners in accordance with the Partnership Agreement.  During 2017, the Partnership repurchased a total of 20.00 Units for $17,616 from one Limited Partner.  The Partnership acquired these Units using Net Cash Flow from operations.  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 $2,434 and $177 in 2018 and 2017, respectively.

(7)  Income Taxes –

The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31:

   
2018
 
2017
         
Net Income for Financial Reporting Purposes
$
328,742
$
1,206,687
         
Depreciation for Tax Purposes Under Depreciation
    and Amortization for Financial Reporting Purposes
 
152,847
 
416,749
         
Income Accrued for Tax Purposes Under
    Income for Financial Reporting Purposes
 
0
 
(12,121)
         
Gain on Sale of Real Estate for Tax Purposes
    Under Gain for Financial Reporting Purposes
 
0
 
(113,571)
Taxable Income to Partners
$
481,589
$
1,497,744
         

The following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December 31:
 
   
2018
 
2017
         
Partners' Capital for Financial Reporting Purposes
$
11,170,452
$
11,877,810
         
Adjusted Tax Basis of Investments in Real Estate
    Over Net Investments in Real Estate
    for Financial Reporting Purposes
 
1,727,027
 
1,574,180
         
Syndication Costs Treated as Reduction
    of Capital For Financial Reporting Purposes
 
3,208,043
 
3,208,043
Partners' Capital for Tax Reporting Purposes
$
16,105,522
$
16,660,033
         
- 34 -

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A.  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)  Internal Control Over Financial Reporting.

(i) Management's Report on Internal Control Over Financial Reporting.  The Managing General Partner, through its management, is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act, and for performing an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2018.  Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with US GAAP.  Our system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and that receipts and expenditures of the Partnership are being made only in accordance with authorizations of management of the Managing General Partner; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Partnership's assets that could have a material effect on the financial statements.

Management of the Managing General Partner performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2018 based upon criteria in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO").  Based on our assessment, management of the Managing General Partner determined that our internal control over financial reporting was effective as of December 31, 2018 based on the criteria in Internal Control-Integrated Framework (2013) issued by the COSO.
- 35 -

ITEM 9A.  CONTROLS AND PROCEDURES.  (Continued)

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual report.

(ii)  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.

ITEM 9B.  OTHER INFORMATION.

None.


PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The registrant is a limited partnership and has no officers, directors, or direct employees.  The General Partners manage and control the Partnership's affairs and have general responsibility and the ultimate authority in all matters affecting the Partnership's business.  The General Partners are AEI Fund Management XXI, Inc. ("AFM"), the Managing General Partner, and Robert P. Johnson, Chief Executive Officer, President and sole director of AFM, the Individual General Partner.  AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder.  AFM has only one senior financial executive, its Chief Financial Officer.  The Chief Financial Officer reports directly to Mr. Johnson and is accountable for his actions to Mr. Johnson.  Although Mr. Johnson and AFM require that all of their personnel, including the Chief Financial Officer, engage in honest and ethical conduct, ensure full, fair, accurate, timely, and understandable disclosure, comply with all applicable governmental laws, rules and regulations, and report to Mr. Johnson any deviation from these principles, because the organization is composed of only approximately 50 individuals, because the management of a partnership by an entity that has different interests in distributions and income than investors involves numerous conflicts of interest that must be resolved on a daily basis, and because the ultimate decision maker in all instances is Mr. Johnson, AFM has not adopted a formal code of conduct.  Instead, the materials pursuant to which investors purchase Units disclose these conflicts of interest in detail and Mr. Johnson, as the CEO and sole director of AFM, resolves conflicts to the best of his ability, consistent with his fiduciary obligations to AFM and the fiduciary obligations of AFM to the Partnership.  The director and officers of AFM are as follows:

- 36 -

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
                 (Continued)

Robert P. Johnson, age 74, is Chief Executive Officer, President and sole director and has held these positions since the formation of AFM in August 1994, and has been elected to continue in these positions until December 2019.  From 1970 to the present, he has been employed exclusively in the investment industry, specializing in limited partnership investments.  In that capacity, he has been involved in the development, analysis, marketing and management of public and private investment programs investing in net lease properties as well as public and private investment programs investing in energy development.  Since 1971, Mr. Johnson has been the president, a director and a registered principal of AEI Securities, Inc., which is registered with the SEC as a securities broker-dealer, is a member of the Financial Industry Regulatory Authority (FINRA) and is a member of the Security Investors Protection Corporation (SIPC).  Mr. Johnson has been president, a director and the principal shareholder of AEI Fund Management, Inc., a real estate management company founded by him, since 1978.  Mr. Johnson is currently a general partner or principal of the general partner in nine limited partnerships and a managing member in five LLCs.

Patrick W. Keene, age 59, is Chief Financial Officer, Treasurer and Secretary and has held these positions since January 22, 2003 and has been elected to continue in these positions until December 2019.  Mr. Keene has been employed by AEI Fund Management, Inc. and affiliated entities since 1986.  Prior to being elected to the positions above, he was Controller of the various entities.  From 1982 to 1986, Mr. Keene was with KPMG Certified Public Accountants, first as an auditor and later as a tax manager.  Mr. Keene is responsible for all accounting functions of AFM and the registrant.

Since Mr. Johnson serves as the Individual General Partner of the Partnership, as well as the sole director of AFM, all of the duties that might be assigned to an audit committee are assigned to Mr. Johnson.  Mr. Johnson is not an audit committee financial expert, as defined.  As an officer and majority owner, through a parent company, of AFM, and as the Individual General Partner, Mr. Johnson is not a "disinterested director" and may be subject to a number of conflicts of interests in his capacity as sole director of AFM.

Before the independent auditors are engaged, Mr. Johnson, as the sole director of AFM, approves all audit-related fees, and all permissible nonaudit fees, for services of our auditors.

Section 16(a) Beneficial Ownership Reporting Compliance

Under federal securities laws, the directors and officers of the General Partner of the Partnership, and any beneficial owner of more than 10% of a class of equity securities of the Partnership, are required to report their ownership of the Partnership's equity securities and any changes in such ownership to the Securities and Exchange Commission (the "Commission").  Specific due dates for these reports have been established by the Commission, and the Partnership is required to disclose in this Annual Report on 10-K any delinquent filing of such reports and any failure to file such reports during the fiscal year ended December 31, 2018.  Based upon information provided by officers and directors of the General Partner, all officers, directors and 10% owners filed all reports on a timely basis in the 2018 fiscal year.

- 37 -

ITEM 11.  EXECUTIVE COMPENSATION.

The General Partner and affiliates are reimbursed at cost for all services performed on behalf of the registrant and for all third party expenses paid on behalf of the registrant.  The cost for services performed on behalf of the registrant is based on actual time spent performing such services plus an overhead burden.  These services include organizing the registrant and arranging for the offer and sale of Units, reviewing properties for acquisition and rendering administrative, property management and property sales services.  The amount and nature of such payments are detailed in Item 13 of this annual report on Form 10-K.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                   MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth information pertaining to the ownership of the Units by each person known by the Partnership to beneficially own 5% or more of the Units, by each General Partner, and by each officer or director of the Managing General Partner as of February 28, 2019:

Name and Address
of Beneficial Owner
Number of
Units Held
Percent
of Class
     
AEI Fund Management XXI, Inc.
0
0.00%
Robert P. Johnson
0
0.00%
Patrick W. Keene
0
0.00%
     
Address for all:
   
1300 Wells Fargo Place
30 East 7th Street, St. Paul, Minnesota 55101
   

The General Partners know of no holders of more than 5% of the outstanding Units.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
                   DIRECTOR INDEPENDENCE.

The registrant, AFM and its affiliates have common management and utilize the same facilities.  As a result, certain administrative expenses are allocated among these related entities.  All of such activities and any other transactions involving the affiliates of the General Partner of the registrant are governed by, and are conducted in conformity with, the limitations set forth in the Limited Partnership Agreement of the registrant.  Reference is made to Note 3 of the Financial Statements, as presented, and is incorporated herein by reference, for details of related party transactions for the years ended December 31, 2018 and 2017.

Neither the registrant, nor the Managing General Partner of the registrant, has a board of directors consisting of any members who are "independent."  The sole director of the Managing General Partner, Robert P. Johnson, is also the Individual General Partner of the registrant, and is the Chief Executive Officer, and indirectly the principal owner, of the Managing General Partner.  Accordingly, there is no disinterested board, or other functioning body, that reviews related party transactions, or the transactions between the registrant and the General Partners, except as performed in connection with the audit of its financial statements.

- 38 -

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
                   DIRECTOR INDEPENDENCE.  (Continued)

The limitations included in the Partnership Agreement require that the cumulative reimbursements to the General Partners and their affiliates for certain expenses will not exceed an amount equal to the sum of (i) 20% of gross offering proceeds, (ii) 5% of Net Cash Flow for property management, (iii) 3% of Net Proceeds of Sale, and (iv) 10% of Net Cash Flow less the Net Cash Flow actually distributed to the General Partners. The cumulative reimbursements subject to this limitation are reimbursements for (i) organization and offering expenses, including commissions, (ii) acquisition expenses, (iii) services provided in the sales effort of properties, and (iv) expenses of controlling persons and overhead expenses directly attributable to the forgoing services or attributable to administrative services. As of December 31, 2018, these cumulative reimbursements to the General Partners and their affiliates did not exceed the limitation amount.

The following table sets forth the forms of compensation, distributions and cost reimbursements paid by the registrant to the General Partners or their Affiliates in connection with the operation of the Fund for the period from inception through December 31, 2018.

Person or Entity
Receiving
Compensation
Form and Method
of Compensation
Amount Incurred From
Inception (August 22, 1994)
To December 31, 2018
       
AEI Securities, Inc.
Selling Commissions equal to 8% of proceeds plus a 2% nonaccountable expense allowance, most of which was reallowed to Participating Dealers.
$
2,400,000
       
General Partners and Affiliates
Reimbursement at Cost for other Organization and Offering Costs.
$
877,000
       
General Partners and Affiliates
Reimbursement at Cost for all Acquisition Expenses.
$
862,540
       
General Partners and Affiliates
Reimbursement at Cost for providing administrative services to the Fund, including all expenses related to management of the Fund's properties and all other transfer agency, reporting, partner relations and other administrative functions.
$
5,284,250
       
General Partners and Affiliates
Reimbursement at Cost for providing services related to the disposition of the Fund's properties.
$
1,370,837
       
General Partners
1% of Net Cash Flow in any fiscal year until the Limited Partners have received annual, non-cumulative distributions of Net Cash Flow equal to 10% of their Adjusted Capital Contributions and 10% of any remaining Net Cash Flow in such fiscal year.
$
292,457
       

- 39 -

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
                   DIRECTOR INDEPENDENCE.  (Continued)

Person or Entity
Receiving
Compensation
Form and Method
of Compensation
Amount Incurred From
Inception (August 22, 1994)
To December 31, 2018
       
General Partners
1% of distributions of Net Proceeds of Sale until Limited Partners have received an amount equal to (a) their Adjusted Capital Contributions, plus (b) an amount equal to 12% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously distributed. 10% of distributions of Net Proceeds of Sale thereafter.
$
109,891

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES.

The following is a summary of the fees billed to the Partnership by Boulay PLLP for professional services rendered for the years ended December 31, 2018 and 2017:

Fee Category
 
2018
 
2017
         
Audit Fees
$
19,585
$
19,650
Audit-Related Fees
 
0
 
0
Tax Fees
 
0
 
0
All Other Fees
 
0
 
0
Total Fees
$
19,585
$
19,650
         

Audit Fees - Consists of fees billed for professional services rendered for the audit of the Partnership's annual financial statements and review of the interim financial statements included in quarterly reports, and services that are normally provided by Boulay PLLP in connection with statutory and regulatory filings or engagements.

Audit-Related Fees - Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." These services include consultations concerning financial accounting and reporting standards.

Tax Fees - Consists of fees billed for professional services for federal and state tax compliance, tax advice and tax planning.

All Other Fees - Consists of fees for products and services other than the services reported above.

Policy for Preapproval of Audit and Permissible Non-Audit Services

Before the Independent Registered Public Accounting Firm is engaged by the Partnership to render audit or non-audit services, the engagement is approved by Mr. Johnson acting as the Partnership's audit committee.
- 40 -

PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) (1) A list of the financial statements contained herein is set forth on page 16.

(a) (2) Schedules are omitted because of the absence of conditions under which they are required or because the required information is presented in the financial statements or related notes.

(a) (3) The Exhibits filed in response to Item 601 of Regulation S-K are listed below.

3.1
Certificate of Limited Partnership (incorporated by reference to Exhibit 3.1 of the registrant's Registration Statement on Form SB‑2 filed October 10, 1994 [File No. 33-85076C]).

3.2
Restated Limited Partnership Agreement to the Prospectus (incorporated by reference to Exhibit A of Amendment No. 2 of the registrant's Registration Statement on Form SB-2 filed January 20, 1995 [File No. 33-85076C]).

10.1
Assignment and Assumption of Lease dated February 9, 2004 between the Partnership, AEI Net Lease Income & Growth Fund XX Limited Partnership and Transmills, LLC relating to the Property at 7684 Arundel Mills, Hanover, Maryland (incorporated by reference to Exhibit 10.2 of Form 8-K filed February 24, 2004).

10.2
Assignment and Assumption of Lease dated January 14, 2005 between the Partnership, AEI Income & Growth Fund 25 LLC and LMB Auburn Hills I LLC relating to the Property at 3960 Baldwin Road, Auburn Hills, Michigan (incorporated by reference to Exhibit 10.26 of Form 10-KSB filed March 30, 2005).

10.3
Assignment and Assumption of Lease dated January 31, 2008 between the Partnership, AEI Income & Growth Fund 23 LLC, AEI Income & Growth Fund 26 LLC and Eau Claire Equity Fund Limited Partnership relating to the Property at 4090 Commonwealth Avenue, Eau Claire, Wisconsin (incorporated by reference to Exhibit 10.2 of Form 8-K filed February 6, 2008).

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.



- 41 -

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 
AEI INCOME & GROWTH FUND XXI
 
Limited Partnership
 
By:
AEI Fund Management XXI, Inc.
   
Its Managing General Partner
     
     
March 29, 2019
By:
 /s/ MARNI J NYGARD
   
Marni J Nygard, Chief Investment Officer
   
(Acting Principal Executive Officer)


Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Name
 
Title
 
Date
         
         
 /s/ MARNI J NYGARD  
Chief Investment Officer
 
March 29, 2019
Marni J Nygard
 
(Acting Principal Executive Officer)
   
   
 
   
         
 /s/ PATRICK W KEENE  
Chief Financial Officer and Treasurer
 
March 29, 2019
Patrick W. Keene
 
(Principal Accounting Officer)
   

- 42 -
EX-31.1 3 ex31-121.htm
Exhibit 31.1
CERTIFICATIONS

I, Marni J Nygard, certify that:

1. I have reviewed this annual report on Form 10-K 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:  March 29, 2019
 /s/ MARNI J NYGARD
 
Marni J Nygard, Chief Investment Officer
 
AEI Fund Management XXI, Inc.
 
Managing General Partner

 
EX-31.2 4 ex31-221.htm

Exhibit 31.2
CERTIFICATIONS

I, Patrick W. Keene, certify that:

1. I have reviewed this annual report on Form 10-K 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:  March 29, 2019
 /s/ PATRICK W KEENE
 
Patrick W. Keene, Chief Financial Officer
 
AEI Fund Management XXI, Inc.
 
Managing General Partner



EX-32 5 ex32-21.htm
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 Annual Report of AEI Income & Growth Fund XXI Limited Partnership (the "Partnership") on Form 10-K for the period ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Marni J. Nygard, Chief Investment Officer 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/ MARNI J NYGARD  
 
Marni J Nygard, Chief Investment Officer
 
 
AEI Fund Management XXI, Inc.
 
 
Managing General Partner
 
 
March 29, 2019
 
     
     
     
   /s/ PATRICK W KEENE  
 
Patrick W. Keene, Chief Financial Officer
 
 
AEI Fund Management XXI, Inc.
 
 
Managing General Partner
 
 
March 29, 2019
 


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(&#x201c;AFM&#x201d;), the Managing General Partner.&#xa0;&#xa0;Robert P. Johnson, the President and sole director of AFM, serves as the Individual General Partner.&#xa0;&#xa0;AFM is a wholly owned subsidiary of AEI Capital Corporation of which Mr. Johnson is the majority shareholder.&#xa0;&#xa0;AEI Fund Management, Inc. (&#x201c;AEI&#x201d;), an affiliate of AFM, performs the administrative and operating functions for the Partnership.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer.&#xa0;&#xa0;The Partnership commenced operations on April&#xa0;14, 1995 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted.&#xa0;&#xa0;On January&#xa0;31, 1997, the offering terminated when the maximum subscription limit of 24,000 Limited Partnership Units was reached.&#xa0;&#xa0;Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $24,000,000 and $1,000, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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.&#xa0;&#xa0;Distributions to Limited Partners will be made pro rata by Units.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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;&#xa0;&#xa0;(ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners.&#xa0;&#xa0;Distributions to the Limited Partners will be made pro rata by Units.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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.&#xa0;&#xa0;Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed.&#xa0;&#xa0;Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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.&#xa0;&#xa0;Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The General Partners are not required to currently fund a deficit capital balance.&#xa0;&#xa0;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.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>In January&#xa0;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&#x2019;s properties and assets.&#xa0;&#xa0;On February&#xa0;14, 2014, the proposal to continue the Partnership was approved with a majority of Units voted in favor of the continuation proposal.&#xa0;&#xa0;As a result, the Managing General Partner will continue the operations of the Partnership for an additional 60 months at which time it intents to again ask the Limited Partners to vote on the same two proposals.</font> </div><br/></div> 1000 1500 1500000 24000 24000000 1000 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.&#xa0;&#xa0;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;&#xa0;&#xa0;(ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners.&#xa0;&#xa0;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.&#xa0;&#xa0;Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed.&#xa0;&#xa0;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.&#xa0;&#xa0;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.&#xa0;&#xa0;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 <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>(2)&#xa0;&#xa0;Summary of Significant Accounting Policies &#x2013; </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Financial Statement Presentation</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Accounting Estimates</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP).&#xa0;&#xa0;Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.&#xa0;&#xa0;Actual results could differ from those estimates.&#xa0;&#xa0;Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets.&#xa0;&#xa0;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales.&#xa0;&#xa0;A change in those market events and conditions could have a material effect on the carrying amount of its real estate.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Cash Concentrations of Credit Risk</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Receivables </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Credit terms are extended to tenants in the normal course of business.&#xa0;&#xa0;The Partnership performs ongoing credit evaluations of its customers&#x2019; financial condition and, generally, requires no collateral.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary.&#xa0;&#xa0;Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership&#x2019;s credit terms.&#xa0;&#xa0;Receivables considered uncollectible are written off.&#xa0;&#xa0;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Income Taxes</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners.&#xa0;&#xa0;In general, no recognition has been given to income taxes in the accompanying financial statements.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities.&#xa0;&#xa0;If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly.&#xa0;&#xa0;Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure.&#xa0;&#xa0;The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Revenue Recognition</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's real estate is leased under net leases, classified as operating leases.&#xa0;&#xa0;The leases provide for base annual rental payments payable in monthly installments.&#xa0;&#xa0;The Partnership recognizes rental income according to the terms of the individual leases.&#xa0;&#xa0;For leases that contain stated rental increases, the increases are recognized in the year in which they are effective.&#xa0;&#xa0;Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Real Estate</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Upon acquisition of real properties, the Partnership records them in the financial statements at cost.&#xa0;&#xa0;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.&#xa0;&#xa0;The allocation of the purchase price is based upon the fair value of each component of the property.&#xa0;&#xa0;Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management&#x2019;s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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)&#xa0;the contractual amounts to be paid pursuant to the in-place leases and (ii)&#xa0;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.&#xa0;&#xa0;The above market and below market lease values will be capitalized as intangible lease assets or liabilities.&#xa0;&#xa0;Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases.&#xa0;&#xa0;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.&#xa0;&#xa0;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.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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.&#xa0;&#xa0;Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management&#x2019;s consideration of current market costs to execute a similar lease.&#xa0;&#xa0;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.&#xa0;&#xa0;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.&#xa0;&#xa0;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.&#xa0;&#xa0;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. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable.&#xa0; For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition.&#xa0; If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property.&#xa0; For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property&#x2019;s estimated fair value less cost to sell to its current carrying value.&#xa0; 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. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years.&#xa0;&#xa0;Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership&#x2019;s operations and financial results.&#xa0;&#xa0;Therefore, the results from operating and selling the property are included in continuing operations.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method.&#xa0;&#xa0;Each tenant-in-common owns a separate, undivided interest in the properties.&#xa0;&#xa0;Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests.&#xa0;&#xa0;The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located.&#xa0;&#xa0;These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found.&#xa0;&#xa0;For each property, an environmental assessment is completed prior to acquisition.&#xa0;&#xa0;In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant&#x2019;s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage.&#xa0;&#xa0;Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated.&#xa0;&#xa0;There were no environmental issues noted or liabilities recorded at December&#xa0;31, 2018 and 2017.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Fair Value Measurements</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>As of December&#xa0;31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Income Per Unit</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented.&#xa0;&#xa0;Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December&#xa0;31, 2018 and 2017.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Reportable Segments</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries.&#xa0; Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis.&#xa0; Therefore, the Partnership&#x2019;s properties are classified as one reportable segment.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Recently Adopted Accounting Pronouncements</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <a name="_Hlk1726897"></a><font>In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers.&#xa0;&#xa0;This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.&#xa0;&#xa0;The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.&#xa0;&#xa0;Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle.&#xa0;&#xa0;Those steps include the following:&#xa0;&#xa0;(i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Management has concluded that all of the Partnership&#x2019;s material revenue streams fall outside of the scope of this guidance.&#xa0;&#xa0;The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption.&#xa0;&#xa0;During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January&#xa0;1, 2018.&#xa0;&#xa0;Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard.&#xa0;&#xa0;The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January&#xa0;1, 2018, and the standard did not have a material impact on the Partnership&#x2019;s financial statements.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"><font>In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.&#xa0;&#xa0;The guidance is effective for annual periods beginning after December&#xa0;15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption.&#xa0;&#xa0;We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized.&#xa0;&#xa0;Prior to the adoption of the new standard, all of our real estate acquisitions completed after January&#xa0;1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January&#xa0;1, 2018, and applied this guidance prospectively.&#xa0;&#xa0;The adoption did not have a material effect on the Partnership&#x2019;s financial statements.</font></div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>Recently Issued Accounting Pronouncements</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <a name="_Hlk1726939"></a><a name="_Hlk1727063"></a><font>In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10Q for the quarter ended March&#xa0;31, 2019.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <a name="_Hlk1727088"></a><font>In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases.&#xa0;&#xa0;The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments.&#xa0;&#xa0;The accounting guidance for lessors is largely unchanged.&#xa0;&#xa0;The ASU is effective for annual and interim periods beginning after December&#xa0;15, 2018 with early adoption permitted.&#xa0;&#xa0;It is to be adopted using a modified retrospective approach.&#xa0;&#xa0;Management is currently evaluating the impact the adoption of this guidance will have on the Partnership&#x2019;s financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership.</font> </div><br/></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Financial Statement Presentation</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Accounting Estimates</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP).&#xa0;&#xa0;Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.&#xa0;&#xa0;Actual results could differ from those estimates.&#xa0;&#xa0;Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets.&#xa0;&#xa0;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales.&#xa0;&#xa0;A change in those market events and conditions could have a material effect on the carrying amount of its real estate.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Cash Concentrations of Credit Risk</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Receivables </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Credit terms are extended to tenants in the normal course of business.&#xa0;&#xa0;The Partnership performs ongoing credit evaluations of its customers&#x2019; financial condition and, generally, requires no collateral.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary.&#xa0;&#xa0;Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership&#x2019;s credit terms.&#xa0;&#xa0;Receivables considered uncollectible are written off.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Income Taxes</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners.&#xa0;&#xa0;In general, no recognition has been given to income taxes in the accompanying financial statements.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities.&#xa0;&#xa0;If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly.&#xa0;&#xa0;Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure.&#xa0;&#xa0;The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Revenue Recognition</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's real estate is leased under net leases, classified as operating leases.&#xa0;&#xa0;The leases provide for base annual rental payments payable in monthly installments.&#xa0;&#xa0;The Partnership recognizes rental income according to the terms of the individual leases.&#xa0;&#xa0;For leases that contain stated rental increases, the increases are recognized in the year in which they are effective.&#xa0;&#xa0;Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Real Estate</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Upon acquisition of real properties, the Partnership records them in the financial statements at cost.&#xa0;&#xa0;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.&#xa0;&#xa0;The allocation of the purchase price is based upon the fair value of each component of the property.&#xa0;&#xa0;Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management&#x2019;s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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)&#xa0;the contractual amounts to be paid pursuant to the in-place leases and (ii)&#xa0;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.&#xa0;&#xa0;The above market and below market lease values will be capitalized as intangible lease assets or liabilities.&#xa0;&#xa0;Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases.&#xa0;&#xa0;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.&#xa0;&#xa0;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.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>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.&#xa0;&#xa0;Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management&#x2019;s consideration of current market costs to execute a similar lease.&#xa0;&#xa0;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.&#xa0;&#xa0;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.&#xa0;&#xa0;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.&#xa0;&#xa0;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. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable.&#xa0; For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition.&#xa0; If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property.&#xa0; For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property&#x2019;s estimated fair value less cost to sell to its current carrying value.&#xa0; 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. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years.&#xa0;&#xa0;Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership&#x2019;s operations and financial results.&#xa0;&#xa0;Therefore, the results from operating and selling the property are included in continuing operations.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method.&#xa0;&#xa0;Each tenant-in-common owns a separate, undivided interest in the properties.&#xa0;&#xa0;Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests.&#xa0;&#xa0;The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located.&#xa0;&#xa0;These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found.&#xa0;&#xa0;For each property, an environmental assessment is completed prior to acquisition.&#xa0;&#xa0;In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant&#x2019;s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage.&#xa0;&#xa0;Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated.&#xa0;&#xa0;There were no environmental issues noted or liabilities recorded at December&#xa0;31, 2018 and 2017.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Fair Value Measurements</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>As of December&#xa0;31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Income Per Unit</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented.&#xa0;&#xa0;Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December&#xa0;31, 2018 and 2017</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Reportable Segments</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries.&#xa0; Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis.&#xa0; Therefore, the Partnership&#x2019;s properties are classified as one reportable segment</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Recently Adopted Accounting Pronouncements</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <a name="_Hlk1726897"></a><font>In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers.&#xa0;&#xa0;This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.&#xa0;&#xa0;The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.&#xa0;&#xa0;Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle.&#xa0;&#xa0;Those steps include the following:&#xa0;&#xa0;(i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>Management has concluded that all of the Partnership&#x2019;s material revenue streams fall outside of the scope of this guidance.&#xa0;&#xa0;The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption.&#xa0;&#xa0;During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January&#xa0;1, 2018.&#xa0;&#xa0;Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard.&#xa0;&#xa0;The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January&#xa0;1, 2018, and the standard did not have a material impact on the Partnership&#x2019;s financial statements.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"><font>In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.&#xa0;&#xa0;The guidance is effective for annual periods beginning after December&#xa0;15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption.&#xa0;&#xa0;We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized.&#xa0;&#xa0;Prior to the adoption of the new standard, all of our real estate acquisitions completed after January&#xa0;1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January&#xa0;1, 2018, and applied this guidance prospectively.&#xa0;&#xa0;The adoption did not have a material effect on the Partnership&#x2019;s financial statements.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"><font>Recently Issued Accounting Pronouncements</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <a name="_Hlk1726939"></a><a name="_Hlk1727063"></a><font>In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10Q for the quarter ended March&#xa0;31, 2019.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <a name="_Hlk1727088"></a><font>In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases.&#xa0;&#xa0;The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments.&#xa0;&#xa0;The accounting guidance for lessors is largely unchanged.&#xa0;&#xa0;The ASU is effective for annual and interim periods beginning after December&#xa0;15, 2018 with early adoption permitted.&#xa0;&#xa0;It is to be adopted using a modified retrospective approach.&#xa0;&#xa0;Management is currently evaluating the impact the adoption of this guidance will have on the Partnership&#x2019;s financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership.</font></div></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>(3)&#xa0;&#xa0;Related Party Transactions &#x2013;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed:&#xa0;&#xa0;Jared Jewelry store in Hanover, Maryland (50% &#x2013; AEI Net Lease Income &amp; Growth Fund XX Limited Partnership); Jared Jewelry store in Auburn Hills, Michigan (40% &#x2013; AEI Income &amp; Growth Fund 25 LLC); Best Buy store (54% &#x2013; AEI Income &amp; Growth Fund 23 LLC and AEI Income &amp; Growth Fund 26 LLC); Fresenius Medical Center (55% &#x2013; AEI Income &amp; Growth Fund 24 LLC); Tractor Supply Company store (50% &#x2013; AEI Accredited Investor Fund V LP); and Gander Mountain store (30% &#x2013; AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP).</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>AEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2018</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2017</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; vertical-align: middle;"> <div> <font>AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">147,914</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">166,178</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management.&#xa0;&#xa0;These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">97,109</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">110,012</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; vertical-align: middle;"> <div> <font>AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">0</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">3,132</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> </table><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b and c.&#xa0;&#xa0;This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.</font> </div><br/></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> Related Party Transactions<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2018</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2017</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; vertical-align: middle;"> <div> <font>AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">147,914</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">166,178</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management.&#xa0;&#xa0;These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">97,109</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">110,012</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; vertical-align: middle;"> <div> <font>AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">0</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">3,132</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 21.6pt; padding-left: 5.75pt; padding-right: 5.75pt;">&#xa0; </td> <td style="padding: 0; width: 284.4pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> </table></div> 0 3132 <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>(4)&#xa0;&#xa0;Real Estate Investments &#x2013;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership leases its properties to tenants under net leases, classified as operating leases.&#xa0;&#xa0;Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property.&#xa0;&#xa0;For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot.&#xa0;&#xa0;At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years, except for the Tractor Supply Company store, which had a remaining primary term of 7.3 years.&#xa0;&#xa0;The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term.&#xa0;&#xa0;The leases for the Best Buy store and the Fresenius Medical Center were extended to end on January 19, 2023 and June&#xa0;30, 2027, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership's properties are commercial, single-tenant buildings.&#xa0;&#xa0;The Jared Jewelry store in Hanover, Maryland was constructed in 2001 and acquired in 2004.&#xa0;&#xa0;The Jared Jewelry store in Auburn Hills, Michigan was constructed in 1999 and acquired in 2005.&#xa0;&#xa0;The Best Buy store was constructed in 1990, renovated in 1997 and acquired in 2008.&#xa0;&#xa0;The Fresenius Medical Center was constructed and acquired in 2008.&#xa0;&#xa0;The Tractor Supply Company store was constructed in 2006 and acquired in 2014.&#xa0;&#xa0;The Gander Mountain store was constructed in 1994 and renovated and acquired in 2014.&#xa0;&#xa0;The Dollar Tree store was constructed in 2015 and acquired in 2016.&#xa0;&#xa0;There have been no costs capitalized as improvements subsequent to the acquisitions, except for $46,750 of tenant improvements related to the Fresenius Medical Center.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The cost of the properties not held for sale and related accumulated depreciation at December&#xa0;31,&#xa0;2018 are as follows:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="height: 0px;"> <td style="width: 213.85pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 57.6pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 57.6pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 57.6pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 57.6pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div> <font style="text-decoration: underline;">Property</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font style="text-decoration: underline;">Land</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font style="text-decoration: underline;">Buildings</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font style="text-decoration: underline;">Total</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font>Accumulated</font> </div> <div style="text-align: center;"> <font style="text-decoration: underline;">Depreciation</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Jared Jewelry, Hanover, MD</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">861,065</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,128,070</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,989,135</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">671,207</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Jared Jewelry, Auburn Hills, MI</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">280,993</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,185,055</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,466,048</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">661,647</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Best Buy, Eau Claire, WI</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">853,357</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">2,784,349</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">3,637,706</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,215,827</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Fresenius Medical Center, Shreveport, LA</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">102,046</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,305,321</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,407,367</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">523,033</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Tractor Supply, Canton, GA</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">700,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,407,183</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">2,107,183</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">257,985</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Gander Mountain, Champaign, IL</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">507,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,279,291</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,786,291</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">230,274</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Dollar Tree, Cincinnati, OH</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">355,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">1,250,270</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">1,605,270</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">145,867</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">3,659,461</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">10,339,539</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">13,999,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">3,705,840</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> </table><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For the years ended December 31, 2018 and 2017, the Partnership recognized depreciation expense of $416,388 and $424,895, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December&#xa0;31:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="height: 0px;"> <td style="width: 216.0pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 52.55pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 64.8pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 52.55pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 64.8pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td colspan="3" style="padding: 0; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>2018</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td colspan="3" style="padding: 0; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>2017</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Cost</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Accumulated Amortization</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Cost</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Accumulated Amortization</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div> <font>Acquired Intangible Lease Assets</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;</font><font style="font-size: 8.0pt;">(in-place lease intangibles with a weighted average </font> </div> <div> <font style="font-size: 8.0pt;">&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;life of 64 and 76 months, respectively)</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">807,178</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">533,849</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">807,178</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">479,753</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; vertical-align: bottom;"> <div> <font>Acquired Below-Market Lease Intangibles</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;</font><font style="font-size: 8.0pt;">(weighted average life of 59 and 71 months, respectively)</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">161,007</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">73,352</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">161,007</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">54,252</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> </table><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For the years ended December&#xa0;31, 2018 and 2017, the value of in-place lease intangibles amortized to expense was $54,096 and $335,527, and the increase to rental income for below-market leases was $19,100 and $19,100, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For lease intangibles not held for sale at December 31, 2018, the estimated amortization for the next five years is as follows:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="height: 0px;"> <td style="width: 47.5pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 26.65pt;"> </td> <td style="width: 108.0pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 26.65pt;"> </td> <td style="width: 108.0pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: bottom;">&#xa0; </td> <td colspan="2" style="padding: 0; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Amortization Expense for</font> </div> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>In-Place Lease Intangibles</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: bottom;">&#xa0; </td> <td colspan="2" style="padding: 0; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Increase to Rental Income</font> </div> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>for Below-Market Leases</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2019</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">54,096</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">19,100</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2020</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">54,096</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">19,100</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2021</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">47,762</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">16,348</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2022</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">28,744</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">8,108</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2023</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">28,744</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">8,108</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">213,442</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">70,764</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> </tr> </table><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership owns a 30% interest in the Gander Mountain store in Champaign, Illinois.&#xa0;&#xa0;The remaining interests in the property are owned by affiliates of the Partnership.&#xa0;&#xa0;On March 10, 2017, Gander Mountain Company filed for Chapter 11 reorganization and announced it was closing the store, following a liquidation sale of its onsite assets.&#xa0;&#xa0;In June 2017, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June&#xa0;30, 2017. At this time, the tenant returned possession of the property to the owners and the Partnership became responsible for its 30% share of real estate taxes and other costs associated with maintaining the property. The tenant paid rent through June 2017.&#xa0;&#xa0;The owners have listed the property for lease with a real estate broker in the Champaign area.&#xa0;&#xa0;The annual rent from this property represented approximately 13% of the total annual rent of the Partnership's property portfolio.&#xa0;&#xa0;The loss of rent and increased expenses related to this property decreased the Partnership's cash flow.&#xa0;&#xa0;Consequently, in the third quarter of 2017, the Partnership reduced its regular quarterly cash distribution rate from $13.18 per Unit to $10.51 per Unit.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>As a result of the bankruptcy court terminating the lease for the Gander Mountain store, the Partnership included an additional $270,097 in Depreciation and Amortization in the second quarter of 2017, which represented the unamortized balance of the in-place lease intangible that was created when the property was purchased in 2014. </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end on June&#xa0;30, 2022.&#xa0;&#xa0;The annual rent will remain the same throughout the remainder of the extended lease term.&#xa0;&#xa0;As part of the agreement, the Partnership paid a tenant improvement allowance of $30,000 that was capitalized.&#xa0;&#xa0;In addition, beginning on April&#xa0;1, 2017, the tenant received free rent for three months that equaled $36,362.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>In the first quarter of 2017, the Partnership decided to sell the KinderCare daycare center.&#xa0;&#xa0;In October&#xa0;2017, the Partnership entered into an agreement to sell the property to an unrelated third party.&#xa0;&#xa0;On November&#xa0;14, 2017, the sale closed with the Partnership receiving net proceeds of $1,696,401, which resulted in a net gain of $1,043,829.&#xa0;&#xa0;At the time of sale, the cost and related accumulated depreciation was $1,294,207 and $641,635, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>In April&#xa0;2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to end on June&#xa0;30, 2027.&#xa0;&#xa0;The annual rent will remain the same throughout the remainder of the extended lease term.&#xa0;&#xa0;As part of the agreement, the Partnership paid a tenant improvement allowance of $46,750 that was capitalized and will be depreciated.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>In March 2019, the Partnership entered into an agreement with the tenant of the Jared Jewelry store in Auburn Hills, Michigan to extend the lease term five years to end on December&#xa0;31, 2024.&#xa0;&#xa0;As part of the agreement, the annual rent will decrease from $124,049 to $105,560 effective January&#xa0;1, 2020.&#xa0;&#xa0;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For properties owned as of December&#xa0;31, 2018, the minimum future rent payments required by the leases are as follows:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2019</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,017,750</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2020</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">893,701</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2021</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">857,067</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2022</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">535,877</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2023</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">249,357</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">Thereafter</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">649,221</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 10.8pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font>$</font> </div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">4,202,973</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> </table><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>There were no contingent rents recognized in 2018 and 2017.</font> </div><br/></div> 416388 424895 54096 335527 19100 19100 13.18 10.51 270097 In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end on June&#xa0;30, 2022. 30000 36362 2017-11-14 1696401 1043829 1294207 641635 In April&#xa0;2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to end on June&#xa0;30, 2027. 46750 124049 105560 <div style="font-family: Times New Roman; font-size: 12.0pt; "> Properties not held for sale<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="height: 0px;"> <td style="width: 213.85pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 57.6pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 57.6pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 57.6pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 57.6pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div> <font style="text-decoration: underline;">Property</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font style="text-decoration: underline;">Land</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font style="text-decoration: underline;">Buildings</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font style="text-decoration: underline;">Total</font> </div> </td> <td colspan="2" style="padding: 0; vertical-align: bottom;"> <div style="text-align: center;"> <font>Accumulated</font> </div> <div style="text-align: center;"> <font style="text-decoration: underline;">Depreciation</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Jared Jewelry, Hanover, MD</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">861,065</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,128,070</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,989,135</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">671,207</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Jared Jewelry, Auburn Hills, MI</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">280,993</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,185,055</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,466,048</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">661,647</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Best Buy, Eau Claire, WI</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">853,357</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">2,784,349</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">3,637,706</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,215,827</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Fresenius Medical Center, Shreveport, LA</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">102,046</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,305,321</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,407,367</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">523,033</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Tractor Supply, Canton, GA</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">700,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,407,183</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">2,107,183</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">257,985</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Gander Mountain, Champaign, IL</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">507,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,279,291</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,786,291</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">230,274</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: middle;"> <div> <font>Dollar Tree, Cincinnati, OH</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">355,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">1,250,270</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">1,605,270</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">145,867</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">3,659,461</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">10,339,539</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">13,999,000</font> </div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">3,705,840</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 213.85pt; padding-left: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 57.6pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> </table></div> 861065 1128070 1989135 671207 280993 1185055 1466048 661647 853357 2784349 3637706 1215827 102046 1305321 1407367 523033 700000 1407183 2107183 257985 507000 1279291 1786291 230274 355000 1250270 1605270 145867 3659461 10339539 13999000 3705840 <div style="font-family: Times New Roman; font-size: 12.0pt; "> Acquired lease intangibles not held for sale<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="height: 0px;"> <td style="width: 216.0pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 52.55pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 64.8pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 52.55pt;"> </td> <td style="width: 7.2pt;"> </td> <td style="width: 64.8pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td colspan="3" style="padding: 0; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>2018</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td colspan="3" style="padding: 0; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>2017</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Cost</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Accumulated Amortization</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Cost</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Accumulated Amortization</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div> <font>Acquired Intangible Lease Assets</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;</font><font style="font-size: 8.0pt;">(in-place lease intangibles with a weighted average </font> </div> <div> <font style="font-size: 8.0pt;">&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;life of 64 and 76 months, respectively)</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">807,178</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">533,849</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">807,178</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">479,753</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; vertical-align: bottom;"> <div> <font>Acquired Below-Market Lease Intangibles</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;</font><font style="font-size: 8.0pt;">(weighted average life of 59 and 71 months, respectively)</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">161,007</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">73,352</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">161,007</font> </div> </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">54,252</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 216.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 52.55pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 7.2pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 64.8pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> </tr> </table></div> 807178 533849 807178 479753 161007 73352 161007 54252 P64M P76M P59M P71M <div style="font-family: Times New Roman; font-size: 12.0pt; "> Estimated Amortization<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="height: 0px;"> <td style="width: 47.5pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 26.65pt;"> </td> <td style="width: 108.0pt;"> </td> <td style="width: 9.35pt;"> </td> <td style="width: 26.65pt;"> </td> <td style="width: 108.0pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: bottom;">&#xa0; </td> <td colspan="2" style="padding: 0; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Amortization Expense for</font> </div> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>In-Place Lease Intangibles</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: bottom;">&#xa0; </td> <td colspan="2" style="padding: 0; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>Increase to Rental Income</font> </div> <div style="border-bottom: 1pt solid black; text-align: center;"> <font>for Below-Market Leases</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2019</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">54,096</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">19,100</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2020</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">54,096</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">19,100</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2021</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">47,762</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">16,348</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2022</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">28,744</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">8,108</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2023</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">28,744</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">8,108</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">213,442</font> </div> </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">70,764</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 47.5pt; padding-left: 5.75pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 9.35pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 26.65pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 108.0pt; padding-left: 5.75pt; padding-right: 36.0pt; background-color: #auto; vertical-align: middle;">&#xa0; </td> </tr> </table></div> 54096 19100 54096 19100 47762 16348 28744 8108 28744 8108 213442 70764 <div style="font-family: Times New Roman; font-size: 12.0pt; "> Minimum future rent<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2019</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,017,750</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2020</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">893,701</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2021</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">857,067</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2022</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">535,877</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">2023</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">249,357</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font style="font-size: 11.0pt;">Thereafter</font> </div> </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">649,221</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 10.8pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font>$</font> </div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">4,202,973</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 90.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 10.8pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> </table></div> 1017750 893701 857067 535877 249357 649221 4202973 <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>(5)&#xa0;&#xa0;Major Tenants &#x2013;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font style="text-decoration: underline;">Tenants</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2018</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2017</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Sterling Jewelers Inc.</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">327,995</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">327,995</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Best Buy Stores, L.P.</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">281,992</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">268,800</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Tractor Supply Company</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">183,565</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">183,565</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Dollar Tree Stores, Inc.</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">130,278</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">130,277</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Bio-Medical Applications of Louisiana, LLC</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">112,772</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">0</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; vertical-align: middle;"> <div><font>Aggregate rental income of major tenants</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">1,036,602</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">910,637</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; vertical-align: bottom;"> <div><font>Aggregate rental income of major tenants</font></div> <div><font>as a percentage of total rental income</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">100%</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">76%</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> Major Tenants<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font style="text-decoration: underline;">Tenants</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2018</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2017</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Sterling Jewelers Inc.</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">327,995</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">327,995</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Best Buy Stores, L.P.</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">281,992</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">268,800</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Tractor Supply Company</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">183,565</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">183,565</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Dollar Tree Stores, Inc.</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">130,278</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">130,277</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div><font>Bio-Medical Applications of Louisiana, LLC</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>&#xa0;</div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">112,772</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">0</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; vertical-align: middle;"> <div><font>Aggregate rental income of major tenants</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">1,036,602</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">910,637</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; vertical-align: bottom;"> <div><font>Aggregate rental income of major tenants</font></div> <div><font>as a percentage of total rental income</font></div> </td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">100%</font></div> </td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">76%</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 230.4pt; padding-left: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 7.2pt;">&#xa0;</td> <td style="padding: 0; width: 79.2pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 9.35pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 72.0pt; padding-right: 5.75pt; vertical-align: bottom;">&#xa0;</td> </tr> </table></div> 327995 327995 281992 268800 183565 183565 130278 130277 112772 0 1036602 910637 1.00 0.76 <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>(6)&#xa0;&#xa0;Partners&#x2019; Capital &#x2013;</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>For the years ended December&#xa0;31, 2018 and 2017, the Partnership declared distributions of $792,727 and $1,949,087, respectively.&#xa0;&#xa0;The Limited Partners received distributions of $784,800 and $1,929,596 and the General Partners received distributions of $7,927 and $19,491 for the years, respectively.&#xa0;&#xa0;The Limited Partners' distributions represented $40.38 and $98.34 per Limited Partnership Unit outstanding using 19,437 and 19,621 weighted average Units in 2018 and 2017, respectively.&#xa0;&#xa0;The distributions represented $4.27 and $58.14 per Unit of Net Income and $36.11 and $40.20 per Unit of contributed capital in 2018 and 2017, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>As part of the distributions discussed above, the Partnership distributed net sale proceeds of $267,409 and $1,078,913 in 2018 and 2017, respectively.&#xa0;&#xa0;The Limited Partners received distributions of $264,735 and $1,068,124 and the General Partners received distributions of $2,674 and $10,789 for the years, respectively.&#xa0;&#xa0;The Limited Partners&#x2019; distributions represented $13.64 and $54.45 per Unit for the years, respectively.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership.&#xa0;&#xa0;Such Units may be acquired at a discount.&#xa0;&#xa0;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&#xa0;1 of such year.&#xa0;&#xa0;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.</font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>During 2018, the Partnership repurchased a total of 287.00 Units for $240,939 from 14 Limited Partners in accordance with the Partnership Agreement.&#xa0;&#xa0;During 2017, the Partnership repurchased a total of 20.00 Units for $17,616 from one Limited Partner. The Partnership acquired these Units using Net Cash Flow from operations.&#xa0;&#xa0;The repurchases increase the remaining Limited Partners' ownership interest in the Partnership.&#xa0;&#xa0;As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $2,434 and $177 in 2018 and 2017, respectively.</font> </div><br/></div> 40.38 98.34 19437 19621 4.27 58.14 36.11 40.20 267409 1078913 264735 1068124 2674 10789 13.64 54.45 <div style="font-family: Times New Roman; font-size: 12.0pt; "> <div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt; font-weight: bold;"> <font>(7)&#xa0;&#xa0;Income Taxes &#x2013; </font> </div><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December&#xa0;31:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2018</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2017</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Net Income for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">328,742</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,206,687</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Depreciation for Tax Purposes Under Depreciation</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;&#xa0;and Amortization for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">152,847</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">416,749</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Income Accrued for Tax Purposes Under</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;&#xa0;Income for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">0</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 2.15pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">(12,121)</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Gain on Sale of Real Estate for Tax Purposes</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;&#xa0;Under Gain for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">0</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 2.15pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">(113,571)</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="margin-left: 36.0pt;"> <font>Taxable Income to Partners</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">481,589</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">1,497,744</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> </table><br/><div style="text-align: justify; font-family: Times New Roman; font-size: 12.0pt;"> <font>The following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December&#xa0;31:</font> </div><br/><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2018</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2017</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>Partners' Capital for Financial Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">11,170,452</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">11,877,810</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>Adjusted Tax Basis of Investments in Real Estate</div> <div>&#xa0;&#xa0;&#xa0;&#xa0;Over Net Investments in Real Estate</div> <div>&#xa0;&#xa0;&#xa0;&#xa0;for Financial Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">1,727,027</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">1,574,180</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>Syndication Costs Treated as Reduction</div> <div>&#xa0;&#xa0;&#xa0;&#xa0;of Capital For Financial Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">3,208,043</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">3,208,043</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="margin-left: 36.0pt;">Partners' Capital for Tax Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">16,105,522</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">16,660,033</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> </table><br/></div> <div style="font-family: Times New Roman; font-size: 12.0pt; "> Reconciliation of net income for financial reporting<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2018</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"> <font style="text-decoration: underline;">2017</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Net Income for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">328,742</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">1,206,687</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Depreciation for Tax Purposes Under Depreciation</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;&#xa0;and Amortization for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">152,847</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">416,749</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Income Accrued for Tax Purposes Under</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;&#xa0;Income for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">0</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 2.15pt; vertical-align: bottom;"> <div style="text-align: right;"> <font style="font-size: 11.0pt;">(12,121)</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div> <font>Gain on Sale of Real Estate for Tax Purposes</font> </div> <div> <font>&#xa0;&#xa0;&#xa0;&#xa0;Under Gain for Financial Reporting Purposes</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">0</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 2.15pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"> <font style="font-size: 11.0pt;">(113,571)</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="margin-left: 36.0pt;"> <font>Taxable Income to Partners</font> </div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">481,589</font> </div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"> <font style="font-size: 11.0pt;">$</font> </div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"> <font style="font-size: 11.0pt;">1,497,744</font> </div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0; </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0; </td> </tr> </table></div> 152847 416749 0 -12121 0 -113571 481589 1497744 <div style="font-family: Times New Roman; font-size: 12.0pt; "> Reconciliation of Partners' capital for financial reporting<br /><br /><table style="border-spacing: 0px; border-collapse: collapse; margin: auto;"> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2018</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: center;"><font style="text-decoration: underline;">2017</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>Partners' Capital for Financial Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">11,170,452</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">11,877,810</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>Adjusted Tax Basis of Investments in Real Estate</div> <div>&#xa0;&#xa0;&#xa0;&#xa0;Over Net Investments in Real Estate</div> <div>&#xa0;&#xa0;&#xa0;&#xa0;for Financial Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">1,727,027</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="text-align: right;"><font style="font-size: 11.0pt;">1,574,180</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;"> <div>Syndication Costs Treated as Reduction</div> <div>&#xa0;&#xa0;&#xa0;&#xa0;of Capital For Financial Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">3,208,043</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 1pt solid black; text-align: right;"><font style="font-size: 11.0pt;">3,208,043</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="margin-left: 36.0pt;">Partners' Capital for Tax Reporting Purposes</div> </td> <td style="padding: 0; width: 8.65pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">16,105,522</font></div> </td> <td style="padding: 0; width: 23.75pt; vertical-align: bottom;"> <div style="margin-bottom: 2.0pt; text-align: right;"><font style="font-size: 11.0pt;">$</font></div> </td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: bottom;"> <div style="border-bottom: 3px double black; text-align: right;"><font style="font-size: 11.0pt;">16,660,033</font></div> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0; width: 306.0pt; padding-left: 5.75pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 8.65pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 70.55pt; padding-right: 5.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; width: 23.75pt; vertical-align: middle;">&#xa0;</td> <td style="padding: 0; 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Document And Entity Information
12 Months Ended
Dec. 31, 2018
USD ($)
shares
Document and Entity Information [Abstract]  
Entity Registrant Name AEI Income & Growth Fund XXI Ltd Partnership
Document Type 10-K
Current Fiscal Year End Date --12-31
Entity Common Stock, Shares Outstanding | shares 19,329
Entity Public Float | $ $ 0
Amendment Flag false
Entity Central Index Key 0000931755
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Filer Category Non-accelerated Filer
Entity Well-known Seasoned Issuer No
Document Period End Date Dec. 31, 2018
Document Fiscal Year Focus 2018
Document Fiscal Period Focus FY
Entity Small Business true
Entity Emerging Growth Company false
Entity Shell Company false
Entity Ex Transition Period false
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Balance Sheet - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Current Assets:    
Cash $ 993,307 $ 2,142,394
Receivables 3,664 50,817
Total Current Assets 996,971 2,193,211
Real Estate Investments:    
Land 3,659,461 3,659,461
Buildings 10,339,539 10,339,539
Acquired Intangible Lease Assets 807,178 807,178
Real Estate Held for Investment, at cost 14,806,178 14,806,178
Accumulated Depreciation and Amortization (4,239,689) (3,769,205)
Real Estate Held for Investment, Net 10,566,489 11,036,973
Total Assets 11,563,460 13,230,184
Current Liabilities:    
Payable to AEI Fund Management, Inc. 107,167 27,235
Distributions Payable 198,186 1,218,384
Total Current Liabilities 305,353 1,245,619
Long-term Liabilities:    
Acquired Below-Market Lease Intangibles, Net 87,655 106,755
Partners’ Capital :    
General Partners 2,998 10,072
Limited Partners – 24,000 Units authorized; 19,329 and 19,616 Units issued and outstanding as of December 31, 2018 and 2017, respectively 11,167,454 11,867,738
Total Partners' Capital 11,170,452 11,877,810
Total Liabilities and Partners' Capital $ 11,563,460 $ 13,230,184
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Balance Sheet (Parentheticals) - Limited Partner [Member] - shares
Dec. 31, 2018
Dec. 31, 2017
Limited Partners, units authorized 24,000 24,000
Limited Partners, units issued 19,329 19,616
Limited Partners, units outstanding 19,329 19,616
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Statement of Income - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Rental Income $ 1,036,602 $ 1,197,392
Expenses:    
Partnership Administration – Affiliates 147,914 166,178
Partnership Administration and Property Management – Unrelated Parties 97,109 110,012
Depreciation and Amortization 470,484 760,422
Total Expenses 715,507 1,036,612
Operating Income 321,095 160,780
Other Income:    
Gain on Sale of Real Estate 0 1,043,829
Interest Income 7,647 2,078
Total Other Income 7,647 1,045,907
Net Income 328,742 1,206,687
Net Income Allocated:    
General Partners 3,287 48,293
Limited Partners $ 325,455 $ 1,158,394
Net Income per Limited Partnership Unit: (in Dollars per share) $ 16.74 $ 59.04
Weighted Average Units Outstanding – Basic and Diluted (in Shares) 19,437 19,621
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Statement of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Cash Flows from Operating Activities:    
Net Income $ 328,742 $ 1,206,687
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:    
Depreciation and Amortization 451,384 741,322
Gain on Sale of Real Estate 0 (1,043,829)
(Increase) Decrease in Receivables 47,153 (50,817)
Increase (Decrease) in Payable to AEI Fund Management, Inc. 79,932 84
Increase (Decrease) in Unearned Rent 0 (12,121)
Total Adjustments 578,469 (365,361)
Net Cash Provided By (Used For) Operating Activities 907,211 841,326
Cash Flows from Investing Activities:    
Investments in Real Estate 0 (76,750)
Proceeds from Sale of Real Estate 0 1,696,401
Net Cash Provided By (Used For) Investing Activities 0 1,619,651
Cash Flows from Financing Activities:    
Distributions Paid to Partners (1,812,925) (991,915)
Repurchase of Partnership Units (243,373) (17,793)
Net Cash Provided By (Used For) Financing Activities (2,056,298) (1,009,708)
Net Increase (Decrease) in Cash (1,149,087) 1,451,269
Cash, beginning of year 2,142,394 691,125
Cash, end of year $ 993,307 $ 2,142,394
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Statement of Changes in Partners' Capital - USD ($)
General Partner [Member]
Limited Partner [Member]
Total
Balance at Dec. 31, 2016 $ (18,553) $ 12,656,556 $ 12,638,003
Balance (in Shares) at Dec. 31, 2016   19,635.64  
Balance at Dec. 31, 2017 10,072 $ 11,867,738 11,877,810
Balance (in Shares) at Dec. 31, 2017   19,616  
Distributions Declared (19,491) $ (1,929,596) (1,949,087)
Repurchase of Partnership Units (177) $ (17,616) (17,793)
Units Repurchased (in Shares)   (20.00)  
Net Income 48,293 $ 1,158,394 1,206,687
Balance at Dec. 31, 2018 2,998 $ 11,167,454 11,170,452
Balance (in Shares) at Dec. 31, 2018   19,329  
Distributions Declared (7,927) $ (784,800) (792,727)
Repurchase of Partnership Units (2,434) $ (240,939) (243,373)
Units Repurchased (in Shares)   (287.00)  
Net Income $ 3,287 $ 325,455 $ 328,742
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.19.1
Organization
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]
(1)  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 intents to again ask the Limited Partners to vote on the same two proposals.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.19.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
(2)  Summary of Significant Accounting Policies –

Financial Statement Presentation

The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.

Accounting Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP).  Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could differ from those estimates.  Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets.  

The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales.  A change in those market events and conditions could have a material effect on the carrying amount of its real estate.

Cash Concentrations of Credit Risk

The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits.

Receivables

Credit terms are extended to tenants in the normal course of business.  The Partnership performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral.

Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary.  Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms.  Receivables considered uncollectible are written off.  

Income Taxes

The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners.  In general, no recognition has been given to income taxes in the accompanying financial statements.

The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities.  If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly.  Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure.  The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015.

Revenue Recognition

The Partnership's real estate is leased under net leases, classified as operating leases.  The leases provide for base annual rental payments payable in monthly installments.  The Partnership recognizes rental income according to the terms of the individual leases.  For leases that contain stated rental increases, the increases are recognized in the year in which they are effective.  Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases.

Real Estate

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 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.

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 Partnership tests real estate 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, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition.  If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property.  For properties held for sale, the Partnership 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.

For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years.  Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease.

The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results.  Therefore, the results from operating and selling the property are included in continuing operations.

The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method.  Each tenant-in-common owns a separate, undivided interest in the properties.  Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests.  The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses.

The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located.  These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found.  For each property, an environmental assessment is completed prior to acquisition.  In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage.  Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated.  There were no environmental issues noted or liabilities recorded at December 31, 2018 and 2017.

Fair Value Measurements

As of December 31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

Income Per Unit

Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented.  Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2018 and 2017.

Reportable Segments

The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries.  Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis.  Therefore, the Partnership’s properties are classified as one reportable segment.

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers.  This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.  The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle.  Those steps include the following:  (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation.

Management has concluded that all of the Partnership’s material revenue streams fall outside of the scope of this guidance.  The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption.  During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January 1, 2018.  Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard.  The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018, and the standard did not have a material impact on the Partnership’s financial statements.

In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption.  We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized.  Prior to the adoption of the new standard, all of our real estate acquisitions completed after January 1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January 1, 2018, and applied this guidance prospectively.  The adoption did not have a material effect on the Partnership’s financial statements.

Recently Issued Accounting Pronouncements

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10Q for the quarter ended March 31, 2019.

In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases.  The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments.  The accounting guidance for lessors is largely unchanged.  The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted.  It is to be adopted using a modified retrospective approach.  Management is currently evaluating the impact the adoption of this guidance will have on the Partnership’s financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.19.1
Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
(3)  Related Party Transactions –

The Partnership owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed:  Jared Jewelry store in Hanover, Maryland (50% – AEI Net Lease Income & Growth Fund XX Limited Partnership); Jared Jewelry store in Auburn Hills, Michigan (40% – AEI Income & Growth Fund 25 LLC); Best Buy store (54% – AEI Income & Growth Fund 23 LLC and AEI Income & Growth Fund 26 LLC); Fresenius Medical Center (55% – AEI Income & Growth Fund 24 LLC); Tractor Supply Company store (50% – AEI Accredited Investor Fund V LP); and Gander Mountain store (30% – AEI Accredited Investor Fund V LP and AEI National Income Property Fund VIII LP).

AEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31:

     
2018
 
2017
           
 
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.
$
147,914
$
166,178
           
 
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management.  These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.
$
97,109
$
110,012
           
 
AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.
$
0
$
3,132
           

The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b and c.  This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments
12 Months Ended
Dec. 31, 2018
Real Estate [Abstract]  
Real Estate Disclosure [Text Block]
(4)  Real Estate Investments –

The Partnership leases its properties to tenants under net leases, classified as operating leases.  Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property.  For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot.  At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years, except for the Tractor Supply Company store, which had a remaining primary term of 7.3 years.  The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term.  The leases for the Best Buy store and the Fresenius Medical Center were extended to end on January 19, 2023 and June 30, 2027, respectively.

The Partnership's properties are commercial, single-tenant buildings.  The Jared Jewelry store in Hanover, Maryland was constructed in 2001 and acquired in 2004.  The Jared Jewelry store in Auburn Hills, Michigan was constructed in 1999 and acquired in 2005.  The Best Buy store was constructed in 1990, renovated in 1997 and acquired in 2008.  The Fresenius Medical Center was constructed and acquired in 2008.  The Tractor Supply Company store was constructed in 2006 and acquired in 2014.  The Gander Mountain store was constructed in 1994 and renovated and acquired in 2014.  The Dollar Tree store was constructed in 2015 and acquired in 2016.  There have been no costs capitalized as improvements subsequent to the acquisitions, except for $46,750 of tenant improvements related to the Fresenius Medical Center.

The cost of the properties not held for sale and related accumulated depreciation at December 31, 2018 are as follows:

Property
Land
Buildings
Total
Accumulated
Depreciation
                 
Jared Jewelry, Hanover, MD
$
861,065
$
1,128,070
$
1,989,135
$
671,207
Jared Jewelry, Auburn Hills, MI
 
280,993
 
1,185,055
 
1,466,048
 
661,647
Best Buy, Eau Claire, WI
 
853,357
 
2,784,349
 
3,637,706
 
1,215,827
Fresenius Medical Center, Shreveport, LA
 
102,046
 
1,305,321
 
1,407,367
 
523,033
Tractor Supply, Canton, GA
 
700,000
 
1,407,183
 
2,107,183
 
257,985
Gander Mountain, Champaign, IL
 
507,000
 
1,279,291
 
1,786,291
 
230,274
Dollar Tree, Cincinnati, OH
 
355,000
 
1,250,270
 
1,605,270
 
145,867
 
$
3,659,461
$
10,339,539
$
13,999,000
$
3,705,840
                 

For the years ended December 31, 2018 and 2017, the Partnership recognized depreciation expense of $416,388 and $424,895, respectively.

The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:

   
2018
 
2017
   
Cost
 
Accumulated Amortization
 
Cost
 
Accumulated Amortization
Acquired Intangible Lease Assets
   (in-place lease intangibles with a weighted average
         life of 64 and 76 months, respectively)
$
807,178
$
533,849
$
807,178
$
479,753
                 
Acquired Below-Market Lease Intangibles
   (weighted average life of 59 and 71 months, respectively)
$
161,007
$
73,352
$
161,007
$
54,252
                 

For the years ended December 31, 2018 and 2017, the value of in-place lease intangibles amortized to expense was $54,096 and $335,527, and the increase to rental income for below-market leases was $19,100 and $19,100, respectively.

For lease intangibles not held for sale at December 31, 2018, the estimated amortization for the next five years is as follows:

   
Amortization Expense for
In-Place Lease Intangibles
 
Increase to Rental Income
for Below-Market Leases
             
2019
 
$
54,096
 
$
19,100
2020
   
54,096
   
19,100
2021
   
47,762
   
16,348
2022
   
28,744
   
8,108
2023
   
28,744
   
8,108
   
$
213,442
 
$
70,764
             

The Partnership owns a 30% interest in the Gander Mountain store in Champaign, Illinois.  The remaining interests in the property are owned by affiliates of the Partnership.  On March 10, 2017, Gander Mountain Company filed for Chapter 11 reorganization and announced it was closing the store, following a liquidation sale of its onsite assets.  In June 2017, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2017. At this time, the tenant returned possession of the property to the owners and the Partnership became responsible for its 30% share of real estate taxes and other costs associated with maintaining the property. The tenant paid rent through June 2017.  The owners have listed the property for lease with a real estate broker in the Champaign area.  The annual rent from this property represented approximately 13% of the total annual rent of the Partnership's property portfolio.  The loss of rent and increased expenses related to this property decreased the Partnership's cash flow.  Consequently, in the third quarter of 2017, the Partnership reduced its regular quarterly cash distribution rate from $13.18 per Unit to $10.51 per Unit.

As a result of the bankruptcy court terminating the lease for the Gander Mountain store, the Partnership included an additional $270,097 in Depreciation and Amortization in the second quarter of 2017, which represented the unamortized balance of the in-place lease intangible that was created when the property was purchased in 2014.

In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end on June 30, 2022.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $30,000 that was capitalized.  In addition, beginning on April 1, 2017, the tenant received free rent for three months that equaled $36,362.

In the first quarter of 2017, the Partnership decided to sell the KinderCare daycare center.  In October 2017, the Partnership entered into an agreement to sell the property to an unrelated third party.  On November 14, 2017, the sale closed with the Partnership receiving net proceeds of $1,696,401, which resulted in a net gain of $1,043,829.  At the time of sale, the cost and related accumulated depreciation was $1,294,207 and $641,635, respectively.

In April 2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to end on June 30, 2027.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Partnership paid a tenant improvement allowance of $46,750 that was capitalized and will be depreciated.

In March 2019, the Partnership entered into an agreement with the tenant of the Jared Jewelry store in Auburn Hills, Michigan to extend the lease term five years to end on December 31, 2024.  As part of the agreement, the annual rent will decrease from $124,049 to $105,560 effective January 1, 2020.  

For properties owned as of December 31, 2018, the minimum future rent payments required by the leases are as follows:

2019
$
1,017,750
2020
 
893,701
2021
 
857,067
2022
 
535,877
2023
 
249,357
Thereafter
 
649,221
 
$
4,202,973
     

There were no contingent rents recognized in 2018 and 2017.

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Major Tenants
12 Months Ended
Dec. 31, 2018
Policy Text Block [Abstract]  
Major Customers, Policy [Policy Text Block]
(5)  Major Tenants –

The following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31:

Tenants
 
 
 
2018
 
2017
             
Sterling Jewelers Inc.
 
 
$
327,995
$
327,995
Best Buy Stores, L.P.
 
 
 
281,992
 
268,800
Tractor Supply Company
 
 
 
183,565
 
183,565
Dollar Tree Stores, Inc.
 
 
 
130,278
 
130,277
Bio-Medical Applications of Louisiana, LLC
 
 
 
112,772
 
0
Aggregate rental income of major tenants
   
$
1,036,602
$
910,637
Aggregate rental income of major tenants
as a percentage of total rental income
     
100%
 
76%
             

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.19.1
Partners' Capital
12 Months Ended
Dec. 31, 2018
Partners' Capital Notes [Abstract]  
Partners' Capital Notes Disclosure [Text Block]
(6)  Partners’ Capital –

For the years ended December 31, 2018 and 2017, the Partnership declared distributions of $792,727 and $1,949,087, respectively.  The Limited Partners received distributions of $784,800 and $1,929,596 and the General Partners received distributions of $7,927 and $19,491 for the years, respectively.  The Limited Partners' distributions represented $40.38 and $98.34 per Limited Partnership Unit outstanding using 19,437 and 19,621 weighted average Units in 2018 and 2017, respectively.  The distributions represented $4.27 and $58.14 per Unit of Net Income and $36.11 and $40.20 per Unit of contributed capital in 2018 and 2017, respectively.

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $267,409 and $1,078,913 in 2018 and 2017, respectively.  The Limited Partners received distributions of $264,735 and $1,068,124 and the General Partners received distributions of $2,674 and $10,789 for the years, respectively.  The Limited Partners’ distributions represented $13.64 and $54.45 per Unit for the years, 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.

During 2018, the Partnership repurchased a total of 287.00 Units for $240,939 from 14 Limited Partners in accordance with the Partnership Agreement.  During 2017, the Partnership repurchased a total of 20.00 Units for $17,616 from one Limited Partner. The Partnership acquired these Units using Net Cash Flow from operations.  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 $2,434 and $177 in 2018 and 2017, respectively.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
(7)  Income Taxes –

The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31:

   
2018
 
2017
         
Net Income for Financial Reporting Purposes
$
328,742
$
1,206,687
         
Depreciation for Tax Purposes Under Depreciation
    and Amortization for Financial Reporting Purposes
 
152,847
 
416,749
         
Income Accrued for Tax Purposes Under
    Income for Financial Reporting Purposes
 
0
 
(12,121)
         
Gain on Sale of Real Estate for Tax Purposes
    Under Gain for Financial Reporting Purposes
 
0
 
(113,571)
Taxable Income to Partners
$
481,589
$
1,497,744
         

The following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December 31:

   
2018
 
2017
         
Partners' Capital for Financial Reporting Purposes
$
11,170,452
$
11,877,810
         
Adjusted Tax Basis of Investments in Real Estate
    Over Net Investments in Real Estate
    for Financial Reporting Purposes
 
1,727,027
 
1,574,180
         
Syndication Costs Treated as Reduction
    of Capital For Financial Reporting Purposes
 
3,208,043
 
3,208,043
Partners' Capital for Tax Reporting Purposes
$
16,105,522
$
16,660,033
         

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.19.1
Accounting Policies, by Policy (Policies)
12 Months Ended
Dec. 31, 2018
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
Basis of Accounting, Policy [Policy Text Block]
Financial Statement Presentation

The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.
Use of Estimates, Policy [Policy Text Block]
Accounting Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP).  Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could differ from those estimates.  Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale and related intangible assets.  

The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales.  A change in those market events and conditions could have a material effect on the carrying amount of its real estate.
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Cash Concentrations of Credit Risk

The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits.
Receivables, Policy [Policy Text Block]
Receivables

Credit terms are extended to tenants in the normal course of business.  The Partnership performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral.

Receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for doubtful accounts; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary.  Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms.  Receivables considered uncollectible are written off.
Income Tax, Policy [Policy Text Block]
Income Taxes

The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the partners.  In general, no recognition has been given to income taxes in the accompanying financial statements.

The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities.  If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly.  Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure.  The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2015, and with few exceptions, is no longer subject to state tax examinations for tax years before 2015
Revenue Recognition, Leases [Policy Text Block]
Revenue Recognition

The Partnership's real estate is leased under net leases, classified as operating leases.  The leases provide for base annual rental payments payable in monthly installments.  The Partnership recognizes rental income according to the terms of the individual leases.  For leases that contain stated rental increases, the increases are recognized in the year in which they are effective.  Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases.
Property, Plant and Equipment, Policy [Policy Text Block]
Real Estate

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 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.

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 Partnership tests real estate 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, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition.  If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss by the amount by which the carrying amount of the property exceeds the fair value of the property.  For properties held for sale, the Partnership 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.

For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years.  Intangible lease assets are amortized using the straight-line method for financial reporting purposes based on the remaining life of the lease.

The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results.  Therefore, the results from operating and selling the property are included in continuing operations.

The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method.  Each tenant-in-common owns a separate, undivided interest in the properties.  Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests.  The financial statements reflect only this Partnership's percentage share of the properties' land, building, liabilities, revenues and expenses.

The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located.  These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found.  For each property, an environmental assessment is completed prior to acquisition.  In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage.  Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated.  There were no environmental issues noted or liabilities recorded at December 31, 2018 and 2017.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair Value Measurements

As of December 31, 2018 and 2017, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.
Earnings Per Share, Policy [Policy Text Block]
Income Per Unit

Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented.  Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2018 and 2017
Segment Reporting, Policy [Policy Text Block]
Reportable Segments

The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries.  Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis.  Therefore, the Partnership’s properties are classified as one reportable segment
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09 regarding ASC Topic 606, Revenue from Contracts with Customers.  This standard was developed to enable financial statement users to better understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.  The update's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  Entities are to use a five-step contract review model to ensure revenue is recognized, measured and disclosed in accordance with this principle.  Those steps include the following:  (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to each performance obligation in the contract, and (v) recognize revenue when or as the entity satisfies a performance obligation.

Management has concluded that all of the Partnership’s material revenue streams fall outside of the scope of this guidance.  The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption.  During 2018, the Partnership selected the modified retrospective transition method as of the date of adoption effective January 1, 2018.  Management has concluded that the majority of total revenues consist of rental income from leasing arrangements, which are specifically excluded from the standard.  The Partnership analyzed its remaining revenue streams, inclusive of gains and losses on real estate sales, and concluded there are no changes in revenue recognition with the adoption of the new standard. As such, adoption of the standard did not result in a cumulative adjustment recognized as of January 1, 2018, and the standard did not have a material impact on the Partnership’s financial statements.

In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted, and is required to be applied prospectively to any transactions occurring within the period of adoption.  We expect the new standard will result in all of our real estate acquisitions being considered asset acquisitions, whereby substantially all acquisition costs related to our real estate acquisitions will be capitalized.  Prior to the adoption of the new standard, all of our real estate acquisitions completed after January 1, 2009, were considered acquisitions of businesses, whereby all acquisition-related costs were expensed as incurred. During 2018, the Partnership has adopted the accounting pronouncement effective January 1, 2018, and applied this guidance prospectively.  The adoption did not have a material effect on the Partnership’s financial statements.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Issued Accounting Pronouncements

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements for the analysis of partners' capital for interim financial statements. Under the amendments, an analysis of changes in each caption of partners' capital presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Partnership anticipates its first presentation of year-to-date quarterly changes in partners' capital will be included in its Form 10Q for the quarter ended March 31, 2019.

In February 2016, the FASB issued ASU 2016-02, which provides guidance for accounting for leases.  The new guidance requires companies to recognize the assets and liabilities for the rights and obligations created by leased assets, initially measured at the present value of the lease payments.  The accounting guidance for lessors is largely unchanged.  The ASU is effective for annual and interim periods beginning after December 15, 2018 with early adoption permitted.  It is to be adopted using a modified retrospective approach.  Management is currently evaluating the impact the adoption of this guidance will have on the Partnership’s financial statements and does not expect this guidance will have a material impact on the financial statements given the nature of the leases held by the Partnership.
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.1
Related Party Transactions (Tables)
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions [Table Text Block]
Related Party Transactions

     
2018
 
2017
           
 
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.
$
147,914
$
166,178
           
 
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management.  These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.
$
97,109
$
110,012
           
 
AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.
$
0
$
3,132
           
XML 27 R16.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Tables)
12 Months Ended
Dec. 31, 2018
Real Estate [Abstract]  
Property, Plant and Equipment [Table Text Block]
Properties not held for sale

Property
Land
Buildings
Total
Accumulated
Depreciation
                 
Jared Jewelry, Hanover, MD
$
861,065
$
1,128,070
$
1,989,135
$
671,207
Jared Jewelry, Auburn Hills, MI
 
280,993
 
1,185,055
 
1,466,048
 
661,647
Best Buy, Eau Claire, WI
 
853,357
 
2,784,349
 
3,637,706
 
1,215,827
Fresenius Medical Center, Shreveport, LA
 
102,046
 
1,305,321
 
1,407,367
 
523,033
Tractor Supply, Canton, GA
 
700,000
 
1,407,183
 
2,107,183
 
257,985
Gander Mountain, Champaign, IL
 
507,000
 
1,279,291
 
1,786,291
 
230,274
Dollar Tree, Cincinnati, OH
 
355,000
 
1,250,270
 
1,605,270
 
145,867
 
$
3,659,461
$
10,339,539
$
13,999,000
$
3,705,840
                 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]
Acquired lease intangibles not held for sale

   
2018
 
2017
   
Cost
 
Accumulated Amortization
 
Cost
 
Accumulated Amortization
Acquired Intangible Lease Assets
   (in-place lease intangibles with a weighted average
         life of 64 and 76 months, respectively)
$
807,178
$
533,849
$
807,178
$
479,753
                 
Acquired Below-Market Lease Intangibles
   (weighted average life of 59 and 71 months, respectively)
$
161,007
$
73,352
$
161,007
$
54,252
                 
Finite-lived Intangible Assets Amortization Expense [Table Text Block]
Estimated Amortization

   
Amortization Expense for
In-Place Lease Intangibles
 
Increase to Rental Income
for Below-Market Leases
             
2019
 
$
54,096
 
$
19,100
2020
   
54,096
   
19,100
2021
   
47,762
   
16,348
2022
   
28,744
   
8,108
2023
   
28,744
   
8,108
   
$
213,442
 
$
70,764
             
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
Minimum future rent

2019
$
1,017,750
2020
 
893,701
2021
 
857,067
2022
 
535,877
2023
 
249,357
Thereafter
 
649,221
 
$
4,202,973
     
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.19.1
Major Tenants (Tables)
12 Months Ended
Dec. 31, 2018
Policy Text Block [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]
Major Tenants

Tenants
 
 
 
2018
 
2017
             
Sterling Jewelers Inc.
 
 
$
327,995
$
327,995
Best Buy Stores, L.P.
 
 
 
281,992
 
268,800
Tractor Supply Company
 
 
 
183,565
 
183,565
Dollar Tree Stores, Inc.
 
 
 
130,278
 
130,277
Bio-Medical Applications of Louisiana, LLC
 
 
 
112,772
 
0
Aggregate rental income of major tenants
   
$
1,036,602
$
910,637
Aggregate rental income of major tenants
as a percentage of total rental income
     
100%
 
76%
             
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule Of GAAP To Federal Taxable Income
Reconciliation of net income for financial reporting

   
2018
 
2017
         
Net Income for Financial Reporting Purposes
$
328,742
$
1,206,687
         
Depreciation for Tax Purposes Under Depreciation
    and Amortization for Financial Reporting Purposes
 
152,847
 
416,749
         
Income Accrued for Tax Purposes Under
    Income for Financial Reporting Purposes
 
0
 
(12,121)
         
Gain on Sale of Real Estate for Tax Purposes
    Under Gain for Financial Reporting Purposes
 
0
 
(113,571)
Taxable Income to Partners
$
481,589
$
1,497,744
         
Schedule Of GAAP To Federal Tax Basis
Reconciliation of Partners' capital for financial reporting

   
2018
 
2017
         
Partners' Capital for Financial Reporting Purposes
$
11,170,452
$
11,877,810
         
Adjusted Tax Basis of Investments in Real Estate
    Over Net Investments in Real Estate
    for Financial Reporting Purposes
 
1,727,027
 
1,574,180
         
Syndication Costs Treated as Reduction
    of Capital For Financial Reporting Purposes
 
3,208,043
 
3,208,043
Partners' Capital for Tax Reporting Purposes
$
16,105,522
$
16,660,033
         
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.19.1
Organization (Details) - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 31, 1997
Apr. 14, 1995
Limited Partner [Member]          
Organization (Details) [Line Items]          
Capital Units, Value         $ 1,000
Limited Partners' Capital Account, Units Outstanding (in Shares) 19,329 19,616 19,635.64 24,000 1,500
Limited Partners' Contributed Capital       $ 24,000,000 $ 1,500,000
General Partner [Member]          
Organization (Details) [Line Items]          
General Partners' Contributed Capital       $ 1,000  
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.19.1
Related Party Transactions (Details) - Related Party Transactions - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Related Party Transactions [Abstract]    
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners. $ 147,914 $ 166,178
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs. 97,109 110,012
AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership. $ 0 $ 3,132
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Nov. 14, 2017
Apr. 01, 2017
Mar. 01, 2017
Jun. 30, 2017
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Real Estate Investments (Details) [Line Items]                    
Depreciation, Nonproduction                 $ 416,388 $ 424,895
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share)         $ 10.51 $ 13.18        
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property                 0 1,043,829
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation                 3,705,840  
Leases, Acquired-in-Place [Member]                    
Real Estate Investments (Details) [Line Items]                    
Amortization of Intangible Assets                 54,096 335,527
Off Market Unfavorable Lease                    
Real Estate Investments (Details) [Line Items]                    
Amortization of above and below Market Leases                 19,100 $ 19,100
KinderCare Andover MN                    
Real Estate Investments (Details) [Line Items]                    
AverageLeaseTerm     In March 2017, the Partnership entered into an agreement with the tenant of the KinderCare daycare center in Andover, Minnesota to extend the lease term five years to end on June 30, 2022.              
Payments for Tenant Improvements     $ 30,000              
Allowance for Notes, Loans and Financing Receivable, Current   $ 36,362                
Disposal Date Nov. 14, 2017                  
Proceeds from Sale of Real Estate $ 1,696,401                  
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property 1,043,829                  
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Cost of Investment in Real Estate Sold 1,294,207                  
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation $ 641,635                  
Gander Mountain Champaign IL                    
Real Estate Investments (Details) [Line Items]                    
Amortization of Intangible Assets       $ 270,097            
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation                 230,274  
Fresenius Medical Center Shreveport LA                    
Real Estate Investments (Details) [Line Items]                    
AverageLeaseTerm   In April 2017, the Partnership entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to end on June 30, 2027.                
Payments for Tenant Improvements   $ 46,750                
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation                 523,033  
Jared Jewelry Auburn Hills MI                    
Real Estate Investments (Details) [Line Items]                    
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation                 $ 661,647  
Revenue from Contract with Customer, Excluding Assessed Tax             $ 105,560 $ 124,049    
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Details) - Real Estate Held for Investment
Dec. 31, 2018
USD ($)
Property, Plant and Equipment [Line Items]  
Land $ 3,659,461
Buildings 10,339,539
Total 13,999,000
Accumulated Depreciation 3,705,840
Jared Jewelry Hanover MD  
Property, Plant and Equipment [Line Items]  
Land 861,065
Buildings 1,128,070
Total 1,989,135
Accumulated Depreciation 671,207
Jared Jewelry Auburn Hills MI  
Property, Plant and Equipment [Line Items]  
Land 280,993
Buildings 1,185,055
Total 1,466,048
Accumulated Depreciation 661,647
Best Buy Eau Claire WI  
Property, Plant and Equipment [Line Items]  
Land 853,357
Buildings 2,784,349
Total 3,637,706
Accumulated Depreciation 1,215,827
Fresenius Medical Center Shreveport LA  
Property, Plant and Equipment [Line Items]  
Land 102,046
Buildings 1,305,321
Total 1,407,367
Accumulated Depreciation 523,033
Tractor Supply Canton GA  
Property, Plant and Equipment [Line Items]  
Land 700,000
Buildings 1,407,183
Total 2,107,183
Accumulated Depreciation 257,985
Gander Mountain Champaign IL  
Property, Plant and Equipment [Line Items]  
Land 507,000
Buildings 1,279,291
Total 1,786,291
Accumulated Depreciation 230,274
Dollar Tree Cincinnati OH  
Property, Plant and Equipment [Line Items]  
Land 355,000
Buildings 1,250,270
Total 1,605,270
Accumulated Depreciation $ 145,867
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Details) - Acquired Lease Intangibles - USD ($)
Dec. 31, 2018
Dec. 31, 2017
Leases, Acquired-in-Place [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Cost $ 807,178 $ 807,178
Accumulated Amortization 533,849 479,753
Off Market Unfavorable Lease    
Acquired Finite-Lived Intangible Assets [Line Items]    
Cost 161,007 161,007
Accumulated Amortization $ 73,352 $ 54,252
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Details) - Acquired Lease Intangibles (Parentheticals)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Leases, Acquired-in-Place [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted average life 64 months 76 months
Off Market Unfavorable Lease    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted average life 59 months 71 months
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Details) - Estimated Amortization of Lease Intangibles - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases, Acquired-in-Place [Member]          
Real Estate Investments (Details) - Estimated Amortization of Lease Intangibles [Line Items]          
Amortization Expense for In-Place Lease Intangibles         $ 54,096
Amortization Expense for In-Place Lease Intangibles       $ 54,096  
Amortization Expense for In-Place Lease Intangibles     $ 47,762    
Amortization Expense for In-Place Lease Intangibles   $ 28,744      
Amortization Expense for In-Place Lease Intangibles $ 28,744        
Amortization Expense for In-Place Lease Intangibles 213,442        
Off Market Unfavorable Lease          
Real Estate Investments (Details) - Estimated Amortization of Lease Intangibles [Line Items]          
Increase to Rental Income for Below-Market Leases         $ 19,100
Increase to Rental Income for Below-Market Leases       $ 19,100  
Increase to Rental Income for Below-Market Leases     $ 16,348    
Increase to Rental Income for Below-Market Leases   $ 8,108      
Increase to Rental Income for Below-Market Leases 8,108        
Increase to Rental Income for Below-Market Leases $ 70,764        
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.19.1
Real Estate Investments (Details) - Future Minimum Rent Payments - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Future Minimum Rent Payments [Abstract]          
2019         $ 1,017,750
2020       $ 893,701  
2021     $ 857,067    
2022   $ 535,877      
2023 $ 249,357        
Thereafter 649,221        
$ 4,202,973        
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.19.1
Major Tenants (Details) - Major Tenants - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Revenue, Major Customer [Line Items]    
Major Tenants $ 1,036,602 $ 910,637
Aggregate rental income of major tenants as a percentage of total rental income 100.00% 76.00%
Sterling Jewelers Inc    
Revenue, Major Customer [Line Items]    
Major Tenants $ 327,995 $ 327,995
Best Buy Stores LP    
Revenue, Major Customer [Line Items]    
Major Tenants 281,992 268,800
Tractor Supply Company    
Revenue, Major Customer [Line Items]    
Major Tenants 183,565 183,565
Dollar Tree Stores Inc    
Revenue, Major Customer [Line Items]    
Major Tenants 130,278 130,277
Bio-Medical Applications of Louisana LLC    
Revenue, Major Customer [Line Items]    
Major Tenants $ 112,772 $ 0
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.19.1
Partners' Capital (Details) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2018
Dec. 31, 2017
Partners' Capital (Details) [Line Items]        
Partners' Capital Account, Distributions     $ 792,727 $ 1,949,087
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share) $ 10.51 $ 13.18    
Sale Proceeds Distribution Made To Member Or Limited Partner     267,409 1,078,913
Partners' Capital Account, Redemptions     243,373 17,793
Limited Partner [Member]        
Partners' Capital (Details) [Line Items]        
Partners' Capital Account, Distributions     $ 784,800 $ 1,929,596
Distributions Per Limited Partnership Unit Outstanding, Basic (in Dollars per share)     $ 40.38 $ 98.34
Weighted Average Limited Partnership Units Outstanding, Basic (in Shares)     19,437 19,621
DistributionsPerUnitOfNetIncome (in Dollars per Share)     4.27 58.14
DistributionsPerUnitOfReturnOfCapital (in Dollars per Share)     36.11 40.20
Sale Proceeds Distribution Made To Member Or Limited Partner     $ 264,735 $ 1,068,124
SaleProceedsDistributionMadetoLimitedPartnerPerUnit     $ 13.64 $ 54.45
Partners' Capital Account, Units, Redeemed (in Shares)     287.00 20.00
Partners' Capital Account, Redemptions     $ 240,939 $ 17,616
General Partner [Member]        
Partners' Capital (Details) [Line Items]        
Partners' Capital Account, Distributions     7,927 19,491
Sale Proceeds Distribution Made To Member Or Limited Partner     2,674 10,789
Partners' Capital Account, Redemptions     $ 2,434 $ 177
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes (Details) - Federal Taxable Income Reconciliation - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Federal Taxable Income Reconciliation [Abstract]    
Net Income for Financial Reporting Purposes $ 328,742 $ 1,206,687
Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes 152,847 416,749
Income Accrued for Tax Purposes Under Income for Financial Reporting Purposes 0 (12,121)
Gain on Sale of Real Estate for Tax Purposes Under Gain for Financial Reporting Purposes 0 (113,571)
Taxable Income to Partners $ 481,589 $ 1,497,744
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.19.1
Income Taxes (Details) - Federal Tax Partners' Capital - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Federal Tax Partners' Capital [Abstract]    
Partners' Capital for Financial Reporting Purposes $ 11,170,452 $ 11,877,810
Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes 1,727,027 1,574,180
Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes 3,208,043 3,208,043
Partners' Capital for Tax Reporting Purposes $ 16,105,522 $ 16,660,033
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