Aei Income & Growth Fund Xxii LTD Partnership
AEI Income & Growth Fund XXII Ltd Partnership is a U.S. real estate partnership that owns and operates income-producing properties and generates returns primarily from rental income and property cash flows. The partnership’s business model centers on acquiring properties with existing tenant leases and managing those leases over time, including renewals and tenant turnover. Its reporting emphasizes property-level valuation, purchase price allocation, and the accounting treatment of in-place leases and related intangibles. Results are therefore closely tied to occupancy, market rental rates, and the valuation assumptions used for property and lease-related assets.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRental income earned from tenants occupying the partnership’s properties under lease contracts.
Non-cash adjustments to rental income/expense from amortizing above/below-market leases and in-place lease intangibles.
Gains/losses and ancillary income associated with property dispositions and other operating items.
Customers
The partnership’s customers are the tenants that lease space in its owned properties and pay contractual rent. Tenant demand is driven by location, suitability of the space, and the economics of the lease relative to market rates. Because the partnership acquires properties with in-place leases, tenant retention and the ability to re-lease space at attractive market rents are central to sustaining cash flows. Tenant turnover can also require incremental spending such as commissions and tenant improvements, which the partnership explicitly considers in valuing in-place leases and related intangibles.
Provide contracted rental cash flows; retention reduces vacancy and avoids re-leasing costs embedded in in-place lease valuations.
Extend occupancy and stabilize cash flows; renewals can include bargain renewal periods that affect below-market lease amortization.
Backfill space after expirations/terminations; typically require commissions, tenant improvements, and absorption time.
Geography
The partnership is based in the United States and its operations are tied to the local markets where its properties are located. No authoritative revenue-by-geography table was provided in the available excerpts, so a quantified regional split cannot be stated from the supplied materials. Geographic exposure matters because market rents, absorption periods, and capitalization/discount rates used in valuations vary by local conditions. Local economic cycles and tenant demand in the partnership’s property markets can therefore drive occupancy, rental rate resets, and impairment risk.
Risks
A central company-specific risk is valuation and purchase price allocation risk: the partnership uses significant assumptions (market rents, growth, discount/cap rates, interest rates) to value in-place leases and acquired assets, and errors can affect reported net income through amortization patterns. Property impairment risk is also material because recoverability testing depends on probability-weighted undiscounted cash flow forecasts (for held-and-operated assets) or fair value less costs to sell (for held-for-sale assets). Operationally, lease termination and tenant turnover can reduce rental income and accelerate recognition of unamortized lease intangibles into income/expense, increasing earnings volatility. More broadly, real estate market risks—higher interest rates, weaker tenant demand, and declining property values—can pressure occupancy, refinancing terms, and disposition outcomes.
Fair values depend on assumptions for market rents, growth, discount/cap rates and interest rates; inaccuracies can misallocate purchase price and impact reported net income (loss).
Exposure: Acquisitions and ongoing amortization of above/below-market and in-place lease intangibles
Recoverability testing compares probability-weighted undiscounted cash flows (held/operated) or fair value less cost to sell (held for sale) to carrying value; assumption changes can cause material write-downs.
Exposure: Long-lived assets and properties carried at cost less accumulated depreciation
Accounting
Judgemental itemsRecorded as intangible lease assets/liabilities and amortized as rental income adjustments; assumptions and lease term changes affect reported revenue.
Impact: Can shift rental income timing and increase volatility upon early termination
Capitalizes estimated commissions, tenant improvements, and avoided downtime; amortized to expense over remaining lease term.
Impact: Affects operating expense recognition and comparability across periods
Impairment is based on probability-weighted undiscounted cash flows (held) or fair value less cost to sell (held for sale), both sensitive to assumptions.
Impact: Potentially material write-downs and step-changes in earnings
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Last updated: 11/08/2026