AEI Income & Growth Fund 25 LLC Annual Report - How They Did This Year

I’ve updated our guide with the latest details from the 2025 year-end report. Because this fund is winding down, the story is about how the team is turning buildings into cash for you.

1. What does this company do?

AEI Income & Growth Fund 25 invested in commercial properties, usually leasing them to single tenants. As of December 31, 2025, only four properties remain. The fund is now selling these final assets, paying off debts, and returning the remaining cash to you before closing the fund permanently.

2. How did they perform this year?

The fund is shrinking as planned, and 2025 was a big year for selling assets.

Because the fund sold five properties, rental income dropped to $1.57 million, down from $1.66 million in 2024. However, the main goal was turning property into cash. The fund brought in $5.6 million from sales in 2025, up from just $406,000 in 2024. This surge in cash allowed the fund to pay out significantly more to investors.

3. Financial health and your units

The fund keeps a conservative balance sheet to ensure it can pay its final bills and return money to members.

• Distributions: The fund paid out $5.87 million to members in 2025. This is a 443% increase over the $1.08 million paid in 2024, reflecting the faster pace of selling properties.
• Buying back units: The fund runs a limited buyback program. In 2025, it bought back 2,315 units for about $505 each, totaling $1.17 million. This is a sharp increase from the 171 units bought back in 2024, showing management’s effort to provide you with cash as the fund nears its end.
• Cash on hand: The fund ended 2025 with $4.2 million in cash, up from $1.7 million in 2024. This buffer covers property expenses, taxes, and the costs of closing the fund.

4. Important note on management

AEI Fund Management, Inc. runs the fund. Because they manage several other AEI funds, they may face conflicts when deciding how to spend their time or resources. There is no independent board of directors; Marni J. Nygard, the President of the management company, oversees everything. While the operating agreement includes caps on expenses to protect you, management decides when to sell properties, which directly affects your final payout.

5. Key risks to watch

• Concentration Risk: With only four properties left, the fund is fragile. About 94% of rental income comes from a very small group of tenants. If one tenant leaves or stops paying, the value of your investment could drop significantly.
• No Secondary Market: These units do not trade on public exchanges. You cannot sell your units to others, so you must rely on the fund’s buyback program or the final liquidation to get your money out.
• Liquidation Uncertainty: Your final payout is not guaranteed. It depends on market conditions, finding buyers for specialized properties, and settling final legal or tax costs.

6. Future outlook

Management is in "exit mode." They started 2026 with momentum, selling a New Hampshire jewelry store for $4.4 million in March. As the portfolio shrinks, expect more cash distributions. The goal remains to sell the remaining properties and close the fund once all assets are sold and debts are paid.

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Bottom Line: Since this fund is in its final stages, your focus should be on the pace of property sales and the resulting cash distributions. Keep an eye on future updates from management regarding the final three properties, as these will determine the timing and size of your final payout.