AEI Income & Growth Fund XXI Limited Partnership - 2025 Annual Review

This guide helps you understand how AEI Income & Growth Fund XXI performed this past year so you can decide how this investment fits into your current financial goals.

1. What does this company do?

AEI Income & Growth Fund XXI owns a small group of commercial properties across the U.S. The fund focuses on long-term income by buying single-tenant buildings. Tenants sign "net leases," meaning they pay for property taxes, insurance, and maintenance. This structure protects the fund from rising building costs. Additionally, the fund carries no debt, which removes the risk of foreclosure or interest rate spikes that often impact other real estate investments.

2. How did they perform this year?

The fund is currently in its final stage, known as "wind-down" mode. The primary goal is to sell the remaining properties and return the cash to partners.

As of December 31, 2025, the fund owns four properties:

• Best Buy: Wisconsin
• Dollar Tree: Ohio
• Advance Auto Parts: Alabama
• Mississippi Hospital: A partial interest in a medical facility

All four properties are fully occupied and provide steady rent while management actively seeks buyers.

3. Financial health and value

The estimated value per unit is $754 as of December 31, 2025. This value is based on independent appraisals of similar properties. Please note that this is an estimate, not a guaranteed sale price.

• Distributions: In 2025, the fund paid out $863,744 to partners. This represents a 25.9% increase over the $686,004 paid in 2024, driven by the sale of assets earlier in the wind-down process.
• Liquidity: These units are not traded on a public stock exchange, meaning they are not easily sold. The fund offers a limited buy-back program twice a year. In October 2025, the fund bought back 10 units at $718.38 each, based on internal value and available cash.

4. Key risks

• The "Exit" Challenge: High interest rates have slowed down commercial real estate sales. The fund competes with large firms that have cheaper access to cash, which could potentially impact the final sale prices of the remaining properties.
• Tenant Concentration: With only four properties, the fund lacks variety. If one tenant leaves or goes bankrupt, the fund’s cash flow could drop significantly, potentially forcing a quick, lower-price sale of that specific property.
• Valuation Uncertainty: The $754 estimate is a snapshot in time. Because real estate is not always liquid, the true value is only confirmed when a sale closes. If market demand for these specific types of buildings shifts, your final payout could differ from the current estimate.

5. Future outlook

The strategy is now entirely focused on selling the remaining assets. Management is actively looking for buyers for the four properties, and the fund will not buy new buildings or make major improvements. The growth phase is over; the focus is now on protecting your capital and returning it to you. You can expect the fund to shrink as properties are sold, with a final payment issued once the last asset is liquidated and all debts are settled.

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Next Steps for You: Since this fund is in its final wind-down phase, your primary consideration should be your own timeline for needing these funds. Because there is no set date for the final liquidation, ensure this investment remains a "wait and see" portion of your portfolio rather than a source of immediate liquidity. If you have questions about your specific unit holdings, you may want to reach out to the fund’s investor relations team for the most recent updates on property sale progress.