AEI Income & Growth Fund XXII Ltd Partnership (XAEIU)
AEI Income & Growth Fund XXII Limited Partnership is a closed-end partnership that was formed to acquire and lease commercial properties to operating tenants. The partnership is in the final stages of liquidation, disposing of its real estate assets and returning capital to its limited partners as sales and rental income permit.
What the partnership is
The partnership was established in the mid-1990s to own net-leased commercial real estate — properties occupied by tenants under long-term leases where the tenant pays most or all of the operating costs. The managing general partner is AEI Fund Management XXI, Inc., while limited partners hold units representing their fractional ownership. Historically, the partnership offered up to 24,000 limited partnership units at $1,000 per unit to raise capital for property acquisition. The partnership structure means income flows through to unit holders for tax purposes rather than the partnership itself paying corporate income tax.
How it made money (and still does, in decline)
Rental income was the primary revenue stream. In 2025, the partnership collected $417,382 in rent from its remaining properties, down from $440,126 in 2024. The decline reflected the sale of a property interest in July 2025 — specifically, the partnership sold its 65 percent stake in an Advance Auto Parts location. That sale generated a $200,237 gain that pushed net income to $241,738 for the year, a significant jump from just $16,521 in 2024. In the first quarter of 2026, quarterly rental income dropped to $96,729 as the partnership continued to shrink its footprint.
The partnership currently owns interests in two net-leased properties with a combined original cost of roughly $5.8 million, both of which are fully occupied. Rental payments arrive regularly, but as properties sell or tenants depart, the income base steadily erodes.
Why it entered liquidation
The partnership agreement gives the Managing General Partner authority to dispose of assets under specified circumstances. In early 2026, management decided to execute a final liquidation. This shift reflects the reality that most older closed-end partnerships reach a point where the cost of holding individual properties no longer justifies continuing operations. The real estate may have appreciated, sale proceeds can now be returned to partners, and the partnership structure becomes less attractive than simply holding the capital elsewhere.
What unit holders receive
The partnership distributes cash to limited partners as rental income arrives and as properties sell. In early 2026, the partnership paid quarterly distributions of $5.92 per unit, characterized as a return of capital rather than income, because the partnership is drawing down its asset base. The total cash balance as of March 31, 2026 was $439,080, enough to cover near-term obligations but modest in size given the partnership’s age and scale.
Research and remaining questions
Anyone evaluating XAEIU would want to examine the partnership’s most recent 10-K filing (SEC CIK 0001023458) to see the specific lease terms on the remaining two properties, their occupancy rates, and rent escalation clauses. Quarterly 10-Q filings will show the rate at which cash is being deployed for distributions and any changes in lease status. The key metric to watch is the speed of asset disposition — whether the remaining properties remain leased and stable or whether tenant departures force faster liquidation at less favorable prices. Understand as well that this is a winding-down vehicle; there is no growth story, only the orderly return of shrinking capital pools.