AEI Income & Growth Fund 25 LLC

Company structure and offering

• Organized as a Delaware limited liability company on June 24, 2002.
• Managing Member: AEI Fund Management XXI, Inc. (AFM). Robert P. Johnson served as Special Managing Member until his withdrawal on March 31, 2020. Other investors participate as Limited Members holding LLC Units.
• Offering: Up to $50,000,000 of limited membership interests (50,000 Units at $1,000 per Unit), registered May 13, 2003. Operations commenced September 11, 2003 after meeting minimum subscriptions of 1,500 Units ($1,500,000). Offering terminated May 12, 2005.
• Subscriptions issued: 42,434.763 LLC Units. Limited Members contributed $42,434,763; Managing Members contributed $1,000 each.

Investment strategy and objectives

• Purpose: Acquire existing and newly constructed commercial properties, lease them under net leases, hold properties, and ultimately sell.
• Lease structure: Single-tenant, commercial, net leases where tenants pay real estate taxes, insurance, maintenance, and operating expenses. The Company may handle certain structural, roof, or parking-lot repairs in specific cases.
• Debt policy: Properties were initially purchased without indebtedness. There is no plan to finance acquisitions with long-term debt, though short-term indebtedness may be incurred for cash-flow needs or property refurbishments. Properties are held until liquidation or sale is deemed advantageous.
• Disposition strategy: The Company expects to sell some or all properties prior to final liquidation and may reinvest proceeds in additional properties. Distributions to Limited Members may be made to cover taxes on recognized gains.

Property portfolio (as of 12/31/2025)

• Six properties owned (some held via tenancy-in-common structures with affiliated entities). Total cost of properties: $16,680,486. All six properties were 100% occupied as of 12/31/2025.
• Details by property:
  • Jared Jewelry Store — Concord, NH
    • Purchase date: 12/01/2005
    • Cost: $4,157,634
    • Tenant: Sterling Jewelers Inc.
    • Annual rent: $381,325
    • Rent per sq. ft.: $64.98
    • Ownership: 100% (direct)
  • Piedmont Health Clinic (fka Coliseum Health) — Macon, GA
    • Purchase date: 7/25/2012
    • Cost: $967,500
    • Tenant: Macon Healthcare, LLC
    • Annual rent: $167,375
    • Rent per sq. ft.: $25.75
    • Ownership: 30% (affiliated co-ownership)
  • PetSmart Store — Gonzales, LA
    • Purchase date: 6/12/2013
    • Cost: $3,109,055
    • Tenant: PetSmart, LLC
    • Annual rent: $258,336
    • Rent per sq. ft.: $21.31
    • Ownership: 100% (direct)
  • Tractor Supply Company Store — Canton, MS
    • Purchase date: 11/30/2018
    • Cost: $3,429,590
    • Tenant: Tractor Supply Company
    • Annual rent: $242,000
    • Rent per sq. ft.: $12.67
    • Ownership: 100% (direct)
  • Talecris Plasma Facility — Dallas, TX
    • Purchase date: 7/31/2020
    • Cost: $2,746,350
    • Tenant: Talecris Plasma Resources, Inc.
    • Annual rent: $217,359
    • Rent per sq. ft.: $43.13
    • Ownership: 50% (affiliated tenancy-in-common)
  • University of Iowa Health Facility — Riverside, IA
    • Purchase date: 8/3/2023
    • Cost: $1,191,542
    • Tenant: Iowa Health (affiliated)
    • Annual rent: $78,845
    • Rent per sq. ft.: $34.72
    • Ownership: 30% (affiliated tenancy-in-common)
• Lease terms: Original primary lease terms ranged from approximately 8.1 to 20 years. Renewal options generally range from one to five five-year options; the Talecris facility has a single 10-year renewal option. Several leases have been extended (Piedmont Health, PetSmart, Jared Jewelry).

Financial highlights

• Rental income (Company share) from the six properties for 2025: $1,345,240 (sum of the annual rents listed above).
• Tenant concentration: In 2025, five tenants each contributed more than 10% of the Company’s total rental income; collectively those tenants accounted for about 94% of total rental income.
• Property disposals and associated gains/losses:
  • Terre Haute property sold on 1/2/2024.
  • 2023: Sold one property with an impairment of $1,086,000 recorded on that property (later sold).
  • 2023 and 2024: Two properties sold with net sale proceeds of $1,418,133 (2023) and $406,688 (2024), resulting in net gains of $44,186 (2023) and $711 (2024).
  • 2025: Three properties sold with net sale proceeds of $5,632,191, resulting in a net gain of $2,257,995.
• Revenue composition: Properties were acquired debt-free; income is primarily rental income, supplemented by gains on disposition of properties.

Tax and depreciation

• Tax depreciation: Properties are depreciated under MACRS. The largest component is building depreciation using a 39-year straight-line approach; land improvements are depreciated over 15 years.
• Tax-exempt Members: The presence of tax-exempt Members activates Internal Revenue Code section 168(h)(6), which affects depreciation lives.
• Tax treatment: Real estate impairment reductions are not recognized for tax purposes. For properties purchased from 2009–2017, certain acquisition costs that were expensed for book purposes were capitalized for tax basis.

Operations and governance

• Employees: The Company has no direct employees.
• Management: Management services are provided by AEI Fund Management, Inc. (the Management Company), an affiliate of AFM. The Management Company reduced headcount in 2024, resulting in lower compensation and benefits expenses.
• Cybersecurity and oversight: The Management Company maintains a cybersecurity program that includes third-party risk assessments, monitoring, and staff training. The Audit Committee oversees cyber risk management. No material cybersecurity incidents have affected the Company to date.

Historical context and liquidation strategy

• Origin: The Company began with a plan to acquire multiple properties using subscription proceeds and initially purchased fifteen properties for about $36.39 million, holding them debt-free.
• Liquidation approach: The Managing General Partner initiated a final liquidation approach tied to the sale or disposition of substantially all assets, consistent with the partnership agreement.

Summary

AEI Income & Growth Fund 25 LLC is a Delaware-structured real estate investment vehicle focused on single-tenant, net-leased commercial properties. The Company generates revenue primarily from rental income and periodic gains on property dispositions, concentrates credit exposure among a small number of major tenants, relies on an affiliated management firm for operations, and follows a planned liquidation pathway as assets are sold.