UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

For the Fiscal Year Ended: December 31, ~~2023~~2024

Commission file number: 000-29274

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

	State of Minnesota		41-1789725
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

	30 East 7^th Street, Suite 1300 St. Paul, Minnesota 55101		(651) 227-7333
	(Address of principal executive offices)		(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		None		None

Securities registered pursuant to Section 12(g) of the Act:

	Limited Partnership Units
	(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the

Securities Act. ☐ Yes ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or

Section 15(d) of the Exchange Act. ☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☐ Large accelerated filer	☐ Accelerated filer
☒ Non-accelerated filer	☒ Smaller reporting company
☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

☐ Yes ☒ No

As of June 30, ~~2023~~2024, there were 17,076.71 Units of limited partnership interest outstanding and owned by nonaffiliates of the registrant, which Units had an aggregate market value (based solely on the price at which they were sold since there is no ready market for such Units) of $17,076,710.

DOCUMENTS INCORPORATED BY REFERENCE

The registrant has not incorporated any documents by reference into this report.

PART I

ITEM 1. BUSINESS.

AEI Income & Growth Fund XXI Limited Partnership (the "Partnership" or the "Registrant") is a limited partnership which was organized pursuant to the laws of the State of Minnesota on August 22, 1994. The registrant is comprised of AEI Fund Management XXI, Inc. (“AFM”) as Managing General Partner, the Estate of Robert P. Johnson as the Individual General Partner, and purchasers of partnership units as Limited Partners. The Partnership offered for sale up to $24,000,000 of limited partnership interests (the "Units") (24,000 Units at $1,000 per Unit) pursuant to a registration statement effective February 1, 1995. The Partnership commenced operations on April 14, 1995 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted. On January 31, 1997, the Partnership offering terminated when the maximum subscription limit of 24,000 Limited Partnership Units ($24,000,000) was reached.

The Partnership was organized to acquire existing and newly constructed commercial properties located in the United States, to lease such properties to tenants under net leases, to hold such properties and to eventually sell such properties. From subscription proceeds, the Partnership purchased ten properties, including partial interests in seven properties, at a total cost of $19,686,525. The balance of the subscription proceeds was applied to organization and syndication costs, working capital reserves and distributions, which represented a return of capital. The properties are commercial, single tenant buildings leased under net leases.

The Partnership's properties were purchased without any indebtedness. The Partnership will not finance properties in the future to obtain proceeds for new property acquisitions. If it is required to do so, the Partnership may incur short-term indebtedness, which may be secured by a portion of the Partnership's properties, to finance day-to-day cash flow requirements (including cash flow necessary to repurchase Units). The amount of borrowings that may be secured by the properties is limited in the aggregate to 10% of the purchase price of all properties. The Partnership will not incur borrowings to pay distributions and will not incur borrowings while there is cash available for distributions.

The Partnership will hold its properties until the General Partners determine that the sale or other disposition of the properties is advantageous in view of the Partnership's investment objectives. In deciding whether to sell properties, the General Partners will consider factors such as potential appreciation, net cash flow and income tax considerations. The Partnership expects to sell some or all of its properties prior to its final liquidation and to reinvest the proceeds from such sales in additional properties. The Partnership reserves the right, at the discretion of the General Partners, to either distribute proceeds from the sale of properties to the Partners or to reinvest such proceeds in additional properties, provided that sufficient proceeds are distributed to the Limited Partners to pay federal and state income taxes related to any taxable gain recognized as a result of the sale.

ITEM 1. BUSINESS. (Continued)

In January 2021, the Managing General Partner mailed a Consent Statement (Proxy) seeking the consent of the Limited Partners to continue the Partnership for an additional 60 months or to initiate the final disposition, liquidation and distribution of all of the Partnership’s properties and assets. On March 3, 2021, the votes were counted and neither proposal received the required majority vote. As a result, the Managing General Partner will continue the operations of the Partnership for an additional 60 months at which time it will ask the Limited Partners to vote on the same two proposals.

Leases

Although there are variations in the specific terms of the leases, the following is a summary of the general terms of the Partnership's leases. The properties are leased to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years. The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term. The leases provide for base annual rental payments, payable in monthly installments, and contain rent clauses which entitle the Partnership to receive additional rent in future years based on stated rent increases.

Property Activity During the Last Three Years

As of December 31, ~~2020~~2021, the Partnership owned interests in five properties with a total cost of $1110,~~088~~708,~~747~~539. During the ~~years~~year ended December 31, ~~2021,~~ 2022 ~~and 2023~~, the Partnership sold ~~two~~one property ~~interests~~interest and received net sale proceeds of $2,~~477,214, and $2,~~450,634, which resulted in a net ~~gains~~gain of $~~13,198, and $~~1,268,078~~, respectively~~. During ~~2021,~~ the ~~Partnership~~year ~~expended~~ended $1December 31,~~805,735~~ ~~to purchase one additional property interest as it reinvested cash generated from property sales. During~~ 2022, the Partnership expended $5,338,093 to purchase two additional property interests, one of which was related to an existing property, as it reinvested cash generated from property sales. ~~During the year ended December 31, 2023, the Partnership did not acquire or sell any property interests.~~ As of December 31, ~~2023~~2024, the Partnership owned interests in five properties with a total cost of $14,057,497.

Major Tenants

During ~~2023~~2024, five tenants each contributed more than ten percent of the Partnership's total rental income. The major tenants in aggregate contributed 100% of total rental income in ~~2023~~2024. It is anticipated that, based on minimum rental payments required under the leases, each major tenant will continue to contribute more than ten percent of rental income in ~~2024~~2025. Any failure of these major tenants could materially affect the Partnership’s net income and cash distributions.

ITEM 1. BUSINESS. (Continued)

Competition

The Partnership is a minor factor in the commercial real estate business. There are numerous entities engaged in the commercial real estate business which have greater financial resources than the Partnership. At the time the Partnership elects to dispose of its properties, the Partnership will be in competition with other persons and entities to find buyers for its properties.

Employees

The Partnership has no direct employees. Management services are performed for the Partnership by AEI Fund Management, Inc. (the “Management Company”), an affiliate of AFM. The ~~For~~Management Company made reductions to the ~~past~~employee ~~two~~headcount ~~fiscal~~in ~~years~~2024, ~~the~~which ~~Management~~in ~~Company~~turn ~~has~~resulted ~~not~~in ~~made~~expense ~~any~~ reductions toin ~~employee~~ compensation plans orand employee benefit plans.

The Management Company believes the people who work for the Company are its most important resources and are critical to its continued success. The Management Company focuses significant attention toward attracting and retaining talented and experienced individuals to manage and support its operations. The Management Company’s people are expected to exhibit and promote honest, ethical and respectful conduct in the workplace. All of the Management Company’s employees must adhere to a code of conduct that is outlined in AEI’s employee handbook which sets standards for appropriate behavior which includes preventing, identifying, reporting and stopping any type of discrimination.

Compensation and Benefits

The Management Company believes its compensation package and benefits are competitive with others in its industry. In addition to base pay, all eligible employees participate in the Management Company bonus program. The Management Company also offers employees a broad range of benefits, including medical, dental and ancillary health benefits and paid parental leave.

Workplace Safety and Wellness

The safety and well-being of the Management Company’s employees is its priority. The Management Company has implemented an Employee Well Being Preparedness Plan which includes safety protocols to assist in mitigating the risk of exposure to its employees and visitors to contagions. These protocols include complying with health and safety standards as required by federal, state and local government agencies, taking into consideration guidelines of the Centers for Disease Control and Prevention and other public health authorities. Many of the Management Company’s operational functions have required modification, including most of its employees having the capability to work remotely. The Management Company’s experienced teams of people have adapted to the changes in the work environment.

ITEM 1A. RISK FACTORS.

Not required for a smaller reporting company.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

Not required for a smaller reporting company.

ITEM 1C. CYBERSECURITY.

In the past ~~two~~three years and with the guidance of a qualified third-party, the Management Company has made improvements in the cybersecurity program across the Entity, and has developed processes for deterring, detecting, evaluating, and responding to potential cybersecurity incidents. In doing so, the Management Company focuses on its employees, networks, applications and data with a cybersecurity plan, informed by nationally recognized frameworks.

The Management Company’s third-party advisor has performed cybersecurity risk assessments of its information technology security processes and implemented technologies to lessen risk. Using third party services, the Management Company monitors, scans, assesses, audits, and remediates identified vulnerabilities across its networks, as appropriate. Furthermore, recognizing that the Management Company’s employees are an essential line of defense in cybersecurity, it requires employees to participate in training and testing programs through which it provides education on the risk of potential cybersecurity incidents, methods for identification of such incidents and appropriate responses. The Management Company’s policies and processes are informed by industry standard practices regarding application security, access management, device protection, network management, and data loss prevention and recovery.

The Management Company’s cybersecurity incident response plan includes retention of external experts for prompt assistance following discovery of any material incident. This cybersecurity incident response plan is part of its ongoing cybersecurity vulnerability management, and it endeavors to maintain appropriate controls to identify, monitor, analyze and address potential cybersecurity incidents, including potential unauthorized access to its networks and applications, along with detection of potential unusual activity within its networks or applications. Any potential cybersecurity incident is immediately reported to the President and Chief Financial Officer, and the Audit Committee or the full Board, as appropriate.

The Audit Committee of the Board of Directors oversees the Management Company’s cybersecurity posture and the steps taken by management to monitor, identify, and mitigate cybersecurity risks. The Information Technology team briefs the Audit Committee on the effectiveness of the Entity’s cyber risk management program, typically on an annual basis.

There have been no cybersecurity incidents which have materially affected the Management Company to date, including its business strategy, results of operations or financial condition. However, any future potential risks from cybersecurity threats, including but not limited to exploitation of vulnerabilities, ransomware, denial of service, supply chain attacks, or other similar threats may materially affect the Management Company, including its execution of business strategy, reputation, results of operations and/or financial condition.

ITEM 2. PROPERTIES.

Investment Objectives

The Partnership's investment objectives are to acquire existing or newly-developed commercial properties throughout the United States that offer the potential for (i) regular cash distributions of lease income; (ii) growth in lease income through rent escalation provisions; (iii) preservation of capital through all-cash transactions; (iv) capital growth through appreciation in the value of properties; and (v) stable property performance through long-term lease contracts. The Partnership does not have a policy, and there is no limitation, as to the amount or percentage of assets that may be invested in any one property. However, to the extent possible, the General Partners attempt to diversify the properties by tenant and geographic location.

Description of Properties

The Partnership's properties are commercial, single tenant buildings. The properties were acquired on a debt-free basis and are leased to tenants under net leases, classified as operating leases. The Partnership holds an undivided fee simple interest in the properties.

The Partnership's properties are subject to the general competitive conditions incident to the ownership of single tenant investment real estate. Since each property is leased under a long‑term lease, there is little competition until the Partnership decides to sell the property. At this time, the Partnership will be competing with other real estate owners, on both a national and local level, in attempting to find buyers for the properties. In the event of a tenant default, the Partnership would be competing with other real estate owners, who have property vacancies, to attract a new tenant to lease the property. The Partnership's tenants operate in industries that are competitive and can be affected by factors such as changes in regional or local economies, seasonality and changes in consumer preference.

ITEM 2. PROPERTIES. (Continued)

The following table is a summary of the properties that the Partnership acquired and owned as of December 31, ~~2023~~2024.

Property	Purchase Date		Original Property Cost		Tenant	Annual Lease Payment		Annual Rent Per Sq. Ft.
Jared Jewelry Store Auburn Hills, MI (40%)	1/14/05	$	1,466,048		Sterling Jewelers Inc.	$	105,560	$	45.82
Best Buy Store Eau Claire, WI	1/31/08	$	7,057,096		Best Buy Stores, L.P.	$	548,801	$	11.58
Dollar Tree Cincinnati, OH	2/3/16	$	1,809,915	(1)	Dollar Tree Stores, Inc.	$	122,169	$	12.28
Advance Auto Chelsea, AL	5/14/21	$	1,760,000		Advance Auto Parts Inc.	$	110,000	$	15.71
Memorial Hospital Diamondhead, MS (40%)	3/22/22	$	1,580,000		Memorial Hospital at Gulfport, Inc.	$	~~104~~106,~~373~~460	$	9.0422

(1) Does not include acquisition costs that were expensed.

The properties listed above with a partial ownership percentage are owned with the following affiliated entities: Jared Jewelry store in Auburn Hills, Michigan (AEI Income & Growth Fund 25 LLC) and Memorial Hospital in Diamondhead, Mississippi (AEI Net Lease Income Fund 36 LP).

The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Partnership's percentage share of the properties' land, building, intangible assets, liabilities, revenues and expenses.

At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years. The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term. The ~~leases~~lease for the ~~Best Buy store in Eau Claire, Wisconsin and~~ Jared Jewelry store in Auburn Hills, Michigan ~~were~~was extended to end on ~~January 19, 2028 and~~ December 31, 2029~~, respectively~~.

Pursuant to the lease agreements, the tenants are required to provide proof of adequate insurance coverage on the properties they occupy. The General Partners believe the properties are adequately covered by insurance and consider the properties to be well-maintained and sufficient for the Partnership's operations.

ITEM 2. PROPERTIES. (Continued)

For tax purposes, the Partnership's properties are depreciated under the Modified Accelerated Cost Recovery System (MACRS). The largest depreciable component of a property is the building which is depreciated using the straight-line method over 39 years. The remaining depreciable component of a property is land improvements which are depreciated using an accelerated method over 15 years. Since the Partnership has tax-exempt Partners, the Partnership is subject to the rules of Section 168(h)(6) of the Internal Revenue Code which requires a percentage of the properties' depreciable components to be depreciated over longer lives using the straight-line method. In general, the federal tax basis of the properties for tax depreciation purposes equals the book depreciable cost of the properties plus the amortizable cost of the related intangible lease assets, except for properties purchased during 2009 through 2017. For those properties, acquisition expenses that were expensed for book purposes were capitalized and added to the basis of the property for tax depreciation purposes.

At December 31, ~~2023~~2024, all properties listed above were 100% occupied.

ITEM 3. LEGAL PROCEEDINGS.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCK-

HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

(a) As of December 31, ~~2023~~2024, there were ~~937~~945 holders of record of the registrant's Limited Partnership Units. There is no other class of security outstanding or authorized. The registrant's Units are not a traded security in any market. During the period covered by this report, the Partnership did not sell any equity securities that are not registered under the Securities Act of 1933.

Distributions of $6,929 ~~and $6,904~~ were declared to the General Partners and $686,004 ~~and $683,503~~ were declared to the Limited Partners for ~~2023~~2024 and ~~2022, respectively~~2023. The distributions were made on a quarterly basis and represented Net Cash Flow, as defined in the Partnership Agreement, except as discussed below. These distributions should not be compared with dividends paid on capital stock by corporations.

(b) Not applicable.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCK-

HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

(c) Pursuant to Section 7.7 of the Partnership Agreement, as amended, each Limited Partner has the right to present Units to the Partnership for purchase by submitting notice to the Managing General Partner during January or July of each year. The purchase price of the Units is equal to 95% of the net asset value per Unit, as of the first business day of January or July of each year, as determined by the Managing General Partner in accordance with the provisions of the Partnership Agreement. Units tendered to the Partnership during January and July may be repurchased on April 1st and October 1st, respectively, of each year subject to the following limitations. The Partnership will not be obligated to purchase in any year more than 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership.

Units tendered to the Partnership during January and July may be repurchased on April 1st and October 1st, respectively, of each year subject to the following limitations. The Partnership will not be obligated to purchase in any year more than 2% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership. During the last three months of ~~2023~~2024, the Partnership did not purchase any Units.

Other Information

Effective April 11, 2016, the Financial Industry Regulatory Authority (“FINRA”) implemented Rule 2310, a revised rule that requires securities broker-dealers to report on customer account statements the value of investment units of non-traded securities, such as REITs, LLCs and Limited Partnerships, provided that the per unit value is derived using methodology set forth by the rule.

At December 31, ~~2023~~2024, the estimated value of the Partnership's Units was $~~796~~767 per Unit. The Managing General Partner is the party responsible for the estimated value per Unit. The estimated value was derived using methodology that conforms to standard industry practice and based upon material assistance and/or confirmation by third-party valuation expert(s), in accordance with the appraised value method set forth in FINRA Rule 2340(c)(1)(B).

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCK-

HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

In determining the estimated value of each property, the Managing General Partner relied on some or all of the following external information sources, as well as its own experience in the commercial, net leased property industry and knowledge of each property:

●

Opinions of value from real estate brokerage firms

●

Appraisal reports from independent commercial property appraisers

●

Industry market reports from real estate brokerage and appraisal firms

●

Market values from comparable properties listed for sale or recently sold

●

Interviews with real estate brokers and tenants

●

Tenant financial reports and other credit information, where available

The per Unit value was the aggregate estimated value of the Partnership's assets less the Partnership's liabilities, and less the value attributable to the interest of the General Partners, divided by the number of Units outstanding. The Partnership's cash, receivables and liabilities were valued at face value as of September 30, ~~2023~~2024. Each of the Partnership's properties were valued by dividing their annual rental income as of December 1, ~~2023~~2024 by a capitalization rate the Managing General Partner believed, based upon the aforementioned valuation process, to be representative of the retail market for the sale of each property. The resulting value for each property was reviewed to determine that it also reflected circumstances that may have been unique to each specific property. For recently acquired properties, an appraisal report received at or near the time of acquisition from an independent commercial property appraiser was used to determine the value of the property. The appraisal report is used to value the property for approximately one year after the date of acquisition. The valuations were estimates only, and were based on a number of assumptions which may not be accurate or complete. In addition, property values are subject to change and could decline after the date of the valuations. Accordingly, this estimated value should not be viewed as the amount at which a Limited Partner may be able to sell units, or the fair market value of the Partnership properties, nor does it represent the amount of net proceeds Limited Partners would receive if the Partnership properties were sold and the proceeds distributed in a liquidation of the Partnership.

The following table provides a breakdown of each major asset type, liabilities and the number of Units that were used to calculate the estimated value per Unit, using the methodology described above, as of December 31~~, 2023 and 2022~~:

		December 31, 2023		December 31, 2022
		December 31, 2024		December 31, 2023
Properties	$	13,~~847~~313,000	$	1513,~~116~~847,000
Cash		~~207~~195,000		~~175~~207,000
Rent receivable		0		0
Liabilities		(270,000)		(323,000)
Current liabilities		(323,000)		(349,000)
Value attributable to the interest of the General Partners		(132,000)		(138,000)
Value attributable to the interest of the General Partners		(138,000)		(149,000)
Value attributable to the interest of the Limited Partners	$	13,106,000	$	13,593,000
Value attributable to the interest of the Limited Partners	$	13,593,000	$	14,793,000
Limited Partnership Units outstanding		17,076.71		17,076.71
Limited Partnership Units outstanding		17,076		17,076

ITEM 6. (Reserved)

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS.

This section contains "forward-looking statements" which represent management's expectations or beliefs concerning future events, including statements regarding anticipated application of cash, expected returns from rental income, growth in revenue, the sufficiency of cash to meet operating expenses, rates of distribution, and other matters. These, and other forward-looking statements, should be evaluated in the context of a number of factors that may affect the Partnership's financial condition and results of operations, including the following:

—

Market and economic conditions which affect the value of the properties the Partnership owns and the cash from rental income such properties generate;

—

the federal income tax consequences of rental income, deductions, gain on sales and other items and the effects of these consequences for the Partners;

—

resolution by the General Partners of conflicts with which they may be confronted;

—

the success of the General Partners of locating properties with favorable risk return characteristics;

—

the effect of tenant defaults; and

—

the condition of the industries in which the tenants of properties owned by the Partnership operate.

Application of Critical Accounting Policies

The Partnership’s financial statements have been prepared in accordance with US GAAP. Preparing the financial statements requires management to use judgment in the application of these accounting policies, including making estimates and assumptions. These judgments will affect the reported amounts of the Partnership’s assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and will affect the reported amounts of revenue and expenses during the reporting periods. It is possible that the carrying amount of the Partnership’s assets and liabilities, or the results of reported operations, ~~will~~would be affected if management’s estimates or assumptions prove inaccurate.

Management of the Partnership evaluates the following accounting estimates on an ongoing basis, and has discussed the development and selection of these estimates and the management discussion and analysis disclosures regarding them with the Managing General Partner of the Partnership.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Allocation of Purchase Price of Acquired Properties

Upon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market ~~leases and the value of~~ in-place leases. The allocation of the purchase price is based upon the relative fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset.

The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized on a straight-line basis as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized on a straight-line basis as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income.

The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The determination of the relative fair values of the assets and liabilities acquired will require the use of significant assumptions with regard to the current market rental rates, rental growth rates, discount and capitalization rates, interest rates and other variables. If management’s estimates or assumptions prove inaccurate, the result would be an inaccurate allocation of purchase price, which could impact the amount of reported net income.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Carrying Value of Properties

Properties are carried at original cost, less accumulated depreciation and amortization. The Partnership tests long-lived assets for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, management determines whether impairment has occurred by comparing the property’s probability-weighted future undiscounted cash flows to its current carrying value. For properties held for sale, management determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value. Changes in these assumptions or analysis may cause material changes in the carrying value of the properties.

Allocation of Expenses

~~AEI~~The ~~Fund~~ Management, ~~Inc.~~Company allocates expenses to each of the funds they manage primarily on the basis of the number of hours devoted by their employees to each fund’s affairs. They also allocate expenses at the end of each month that are not directly related to a fund’s operations based upon the number of investors in the fund and the fund’s capitalization relative to other funds they manage. The Partnership reimburses these expenses subject to detailed limitations contained in the Partnership Agreement.

Factors Which May Influence Results of Operations

The Partnership is not aware of any material trends or uncertainties, other than national economic conditions affecting real estate generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues and investment property value. However, due to current economic factors, higher interest rates, and inflation in the US and globally, our tenants and operating partners may be impacted.

Results of Operations

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Partnership recognized rental income of $~~997~~999,~~334~~825 and $~~885~~997,~~848~~334, respectively. In ~~2023~~2024, rental income increased due ~~to generating a full year of income on a property that was acquired in May 2022. Additionally, there were~~ rent increases on two properties in ~~2023 which were partially offset by the sale of one property in February 2022~~2024. Based on the scheduled rent for the properties owned as of February 28, ~~2024~~2025, the Partnership expects to recognize rental income of approximately $~~992~~1,002,000 in ~~2024~~2025.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Partnership incurred Partnership administration expenses from affiliated parties of $~~162~~156,~~933~~179 and $~~138~~162,~~597~~933, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Partners. During the same periods, the Partnership incurred Partnership administration and property management expenses from unrelated parties of $8374,~~356~~777 and $4683,~~992~~356, respectively. These expenses represent direct payments to third parties for legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.

In July 2021, the Partnership entered into an agreement with the tenant of the Jared Jewelry store in Hanover, Maryland to extend the lease term seven years to end on January 31, 2029. As part of the agreement, the annual rent will decrease from $224,340 to $167,500 effective February 1, 2022.

In December 2021, the Partnership entered into an agreement to sell its 50% interest in the Jared Jewelry store in Hanover, Maryland to an unrelated third party. On February 14, 2022, the sale closed with the Partnership receiving net proceeds of $2,450,634, which resulted in a net gain of $1,268,078. At the time of sale, the cost and related accumulated depreciation was $1,989,135 and $806,579, respectively.

On March 22, 2022, the Partnership purchased a 40% interest of the Memorial Hospital property in Diamondhead, Mississippi for $1,610,422. The Partnership allocated $114,052 of the purchase price to Acquired Lease Assets, representing in-place intangibles. The property is leased to Memorial Hospital at Gulfport, Incorporated under a lease agreement with a remaining primary term of 5.3 years (as of date of purchase) and annual rent of $100,320, scheduled to increase annually at 2%.

On May 11, 2022, the Partnership purchased an additional 46% interest in the Best Buy store in Eau Claire, Wisconsin for $3,726,043 from AEI Income & Growth Fund 26 LLC, an affiliate of the Partnership. The purchase price of the property was based upon the property’s fair market value as determined by an independent third party, commercial property appraiser. The property interest became available because AEI Income & Growth Fund 26 LLC was in the process of liquidating its property portfolio. The Partnership now owns 100% interest in the property. The Partnership allocated $306,653 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The annual rent for the additional 46% interest that was purchased is $240,432.

In November 2023, the Partnership entered into an agreement with the tenant of the Jared Jewelry Store in Auburn Hills, Michigan to extend the lease term 5 years commencing on January 1, 2025 and expiring on December 31, 2029. As part of the agreement, the annual rent stays flat at $105,560.

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Partnership recognized interest income of $3,~~139~~823 and $23,~~518~~139, respectively.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

Management believes inflation has not significantly affected income from operations. Leases may contain rent increases, based on the increase in the Consumer Price Index over a specified period, which will result in an increase in rental income over the term of the leases. Inflation also may cause the real estate to appreciate in value. However, inflation and changing prices may have an adverse impact on the operating margins of the properties' tenants, which could impair their ability to pay rent and subsequently reduce the Net Cash Flow available for distributions.

Liquidity and Capital Resources

During the year ended December 31, ~~2023~~2024, the Partnership's cash balance ~~decreased~~increased $1459,~~309~~499 primarily as a result of ~~distributions~~cash ~~paid~~generated tofrom ~~the~~operating ~~Partners~~activities in excess of ~~cash~~distributions ~~generated~~paid ~~from~~to ~~operating~~the ~~activities~~Partners. During the year ended December 31, ~~2022~~2023, the Partnership's cash balance decreased $314,~~030,757~~309 primarily as a result of ~~cash used for property and lease acquisition costs,~~ distributions paid to the Partners, ~~and~~in ~~cash~~excess ~~used~~of ~~to repurchase units, which was partially offset by~~ cash generated from ~~the~~operating ~~sale of a property~~activities.

Net cash provided by operating activities ~~decreased~~increased from $~~816~~678,~~752~~624 in ~~2022~~2023 to $~~678~~752,~~624~~432 in ~~2023~~2024 as a result of ~~net timing differences in the collection of payments from the tenants and the payment of expenses, which was partially offset by~~ an increase in ~~administrative expenses, increase in~~ total rental income and ~~increase~~a decrease in ~~interest~~Partnership ~~income~~administration inand ~~2023~~property management expenses.

The major components of the Partnership's cash flow from investing activities are investments in real estate and proceeds from the sale of real estate. During the ~~year~~years ended December 31, 2024 and 2023, the Partnership did not sell or invest in real estate. ~~During the year ended December 31, 2022, the Partnership generated cash flow from the sale of real estate of $2,450,634 and $5,338,093 to invest in real estate.~~

The Partnership's primary use of cash flow, other than investment in real estate, is distribution payments to Partners and cash used to repurchase Units. The Partnership declares its regular quarterly distributions before the end of each quarter and pays the distribution in the first week after the end of each quarter. The Partnership attempts to maintain a stable distribution rate from quarter to quarter. The Partnership may repurchase tendered Units on April 1st and October 1st of each year subject to limitations. 14

For the years ended December 31, 2023 and 2022, the Partnership declared distributions of $692,933 and $690,407, respectively, which were distributed 99% to the Limited Partners and 1% to the General Partners. The Limited Partners were allocated distributions of $686,004 and $683,503 and the General Partners were allocated distributions of $6,929 and $6,904 for the years ended December 31, 2023 and 2022, respectively.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

For the years ended December 31, 2024 and 2023, the Partnership declared distributions of $692,933, which are to be allocated 99% to the Limited Partners and 1% to the General Partners. The Limited Partners were allocated declared distributions of $686,004 and the General Partners were allocated declared distributions of $6,929 for the years ended December 31, 2024 and 2023.

The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership.

During 2024 and 2023, the Partnership did not repurchase any units. On April 1, 2022, the Partnership repurchased a total of 352.29 Units for $266,947 from 30 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using Net Cash Flow from operations. The repurchases increased the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $2,696 in 2022.

The continuing rent payments from the properties, together with cash generated from property sales, should be adequate to fund continuing distributions and meet other Partnership obligations on both a short-term and long-term basis.

Off-Balance Sheet Arrangements

As of December 31, ~~2023~~2024 and ~~2022~~2023, the Partnership had no material off-balance sheet arrangements that had or are reasonably likely to have current or future effects on its financial condition, results of operations, liquidity or capital resources.

ITEM 7A. QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for a smaller reporting company.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

See accompanying index to financial statements.

1615

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

INDEX TO FINANCIAL STATEMENTS

		Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 542)		17 – 18
Balance Sheets as of December 31, 2023 and 2022		19
Balance Sheets as of December 31, 2024 and 2023		19
Statements for the Years Ended December 31, 2023 and 2022:
Statements for the Years Ended December 31, 2024 and 2023:
	Income	20
	Cash Flows	21
	Changes in Partners’ Capital	22
Notes to Financial Statements		23 – 3433

1716

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners:

AEI Income & Growth Fund XXI Limited Partnership

St. Paul, Minnesota

Opinion on the Financial Statements

We have audited the accompanying balance sheets of AEI Income & Growth Fund XXI Limited Partnership (a Minnesota limited partnership) (the "Partnership”) as of December 31, ~~2023~~2024 and ~~2022~~2023, and the related statements of income, changes in partners’ capital, and cash flows for each of the years in the two-year period ended December 31, ~~2023~~2024, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, ~~2023~~2024 and ~~2022~~2023, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, ~~2023~~2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.

~~/s/ Boulay PLLP We have served as the Partnership’s auditor since 1994. Minneapolis, Minnesota March 21, 2024~~17

/s/ Boulay PLLP

We have served as the Partnership’s auditor since 1994.
Minneapolis, Minnesota
March 28, 2025

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

BALANCE SHEETS

ASSETS

		December 31,		December 31,
		2023		2022
		2024		2023
Current Assets:
Cash	$	~~180~~240,~~560~~059	$	~~194~~180,~~869~~560
Total Current Assets		~~180~~240,~~560~~059		~~194~~180,~~869~~560
Real Estate Investments:
Land		3,447,796		3,447,796
Buildings		9,825,615		9,825,615
Acquired Intangible Lease Assets		864,490		864,490
Real Estate Held for Investment, at Cost		14,137,901		14,137,901
Accumulated Depreciation and Amortization		(34,~~808~~321,~~959~~261)		(3,~~296~~808,~~657~~959)
Real Estate Held for Investment, Net		109,~~328~~816,~~942~~640		10,~~841~~328,~~244~~942
Total Assets	$	10,~~509~~056,~~502~~699	$	1110,~~036~~509,~~113~~502

LIABILITIES AND PARTNERS' CAPITAL

Current Liabilities:
Payable to AEI Fund Management, Inc.	$	~~101~~89,~~262~~055	$	~~168~~101,~~714~~262
Distributions Payable		173,233		173,233
Total Current Liabilities		274,495		341,947
Unearned Rent		55		0
Total Current Liabilities		262,343		274,495
Long-term Liabilities:
Acquired Below-Market Lease Intangibles, Net		168,~~891~~783		2416,~~999~~891
Partners’ Capital:
General Partners		83,~~101~~776		128,~~611~~101
Limited Partners – 24,000 Units authorized; 17,077 Units issued and outstanding as of December 31, 2023 and 2022		10,210,015		10,656,556
Limited Partners – 24,000 Units authorized; 17,077 Units issued and outstanding as of December 31, 2024 and 2023		9,781,797		10,210,015
Total Partners' Capital		109,~~218~~785,~~116~~573		10,~~669~~218,~~167~~116
Total Liabilities and Partners' Capital	$	10,~~509~~056,~~502~~699	$	1110,~~036~~509,~~113~~502

The accompanying Notes to Financial Statements are an integral part of these statements.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

STATEMENTS OF INCOME

		Years Ended December 31
		2023		2022
		2024		2023
Rental Income	$	~~997~~999,~~334~~825	$	~~885~~997,~~848~~334
Expenses:
Partnership Administration – Affiliates		~~162~~156,~~933~~179		~~138~~162,~~597~~933
Partnership Administration and Property Management – Unrelated Parties		8374,~~356~~777		4683,~~992~~356
Depreciation and Amortization		512,302		~~439~~512,~~670~~302
Total Expenses		~~758~~743,~~591~~258		~~625~~758,~~259~~591
Operating Income		~~238~~256,~~743~~567		~~260~~238,~~589~~743
Other Income:
Gain on Sale of Real Estate		0		1,268,078
Interest Income		3,823		3,139
Interest Income		3,139		2,518
Net Income	$	260,390	$	241,882
Total Other Income		3,139		1,270,596
Net Income	$	241,882	$	1,531,185
Net Income Allocated:
General Partners	$	2,~~419~~604	$	222,~~102~~419
Limited Partners		~~239~~257,~~463~~786		1239,~~509,083~~463
Total	$	~~241~~260,~~882~~390	$	1241,~~531,185~~882
Net Income per Limited Partnership Unit:	$	1415.0210	$	8714.9202
Weighted Average Units Outstanding – Basic and Diluted		17,077		17,~~165~~077

The accompanying Notes to Financial Statements are an integral part of these statements.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

		Years Ended December 31
		2023		2022
		2024		2023
Cash Flows from Operating Activities:
Net Income	$	~~241~~260,~~882~~390	$	1241,~~531,185~~882
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization		504,194		~~431~~504,~~562~~194
Gain on Sale of Real Estate		0		(1,268,078)
Increase (Decrease) in Unearned Rent		55		0
(Increase) Decrease in Receivables		0		4,299
Increase (Decrease) in Payable to AEI Fund Management, Inc.		(12,207)		(67,452)
Increase (Decrease) in Payable to AEI Fund Management, Inc.		(67,452)		117,784
Total Adjustments		492,042		436,742
Total Adjustments		436,742		(714,433)
Net Cash Provided By (Used For) Operating Activities		752,432		678,624
Net Cash Provided By (Used For) Operating Activities		678,624		816,752
Cash Flows from Investing Activities:
Investments in Real Estate		0		(5,338,093)
Proceeds from Sale of Real Estate		0		2,450,634
Net Cash Provided By (Used For) Investing Activities		0		(2,887,459)
Cash Flows from Financing Activities:
Distributions Paid to Partners		(692,933)		(~~690~~692,~~407~~933)
Repurchase of Partnership Units		0		(269,643)
Net Cash Provided By (Used For) Financing Activities		(692,933)		(692,933)
Net Cash Provided By (Used For) Financing Activities		(692,933)		(960,050)
Net Increase (Decrease) in Cash		59,499		(14,309)
Net Increase (Decrease) in Cash		(14,309)		(3,030,757)
Cash, beginning of year		180,560		194,869
Cash, beginning of year		194,869		3,225,626
Cash, end of year	$	240,059	$	180,560
Cash, end of year	$	180,560	$	194,869

The accompanying Notes to Financial Statements are an integral part of these statements.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

		General Partners		Limited Partners		Total	Limited Partnership Units Outstanding
Balance, December 31, 2021	$	109	$	10,097,923	$	10,098,032	17,429.00
Balance, December 31, 2022	$	12,611	$	10,656,556	$	10,669,167	17,076.71
Distributions Declared		(6,904)		(683,503)		(690,407)
Repurchase of Partnership Units		(2,696)		(266,947)		(269,643)	(352.29)
Net Income		22,102		1,509,083		1,531,185
Balance, December 31, 2022		12,611		10,656,556		10,669,167	17,076.71
Distributions Declared		(6,929)		(686,004)		(692,933)
Net Income		2,419		239,463		241,882
Balance, December 31, 2023	$	8,101	$	10,210,015	$	10,218,116	17,076.71
Distributions Declared		(6,929)		(686,004)		(692,933)
Net Income		2,604		257,786		260,390
Balance, December 31, 2024	$	3,776	$	9,781,797	$	9,785,573	17,076.71

The accompanying Notes to Financial Statements are an integral part of these statements.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(1) Organization –

AEI Income & Growth Fund XXI Limited Partnership (the “Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership'’s operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner. The Estate of Robert P. Johnson serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Credit Trust fbo Patricia Johnson and Patricia Johnson, ~~the wife of the deceased,~~ own a majority interest. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership.

The terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer. The Partnership commenced operations on April 14, 1995 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted. On January 31, 1997, the offering terminated when the maximum subscription limit of 24,000 Limited Partnership Units was reached. Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $24,000,000 and $1,000, respectively.

During operations, any Net Cash Flow, as defined in the Partnership Agreement, which the General Partners determine to distribute will be distributed 90% to the Limited Partners and 10% to the General Partners; provided, however, that such distributions to the General Partners will be subordinated to the Limited Partners first receiving an annual, noncumulative distribution of Net Cash Flow equal to 10% of their Adjusted Capital Contribution, as defined, and, provided further, that in no event will the General Partners receive less than 1% of such Net Cash Flow per annum. Distributions to Limited Partners will be made pro rata by Units.

Any Net Proceeds of Sale, as defined in the Partnership Agreement, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 10% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units.

For tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year. Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed. Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(1) Organization – (Continued)

For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those ~~partners~~Partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 10% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.

The General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions.

(2) Summary of Significant Accounting Policies –

Financial Statement Presentation

The accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.

Accounting Estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with United States Generally Accepted Accounting Principles (US GAAP). Those estimates and assumptions may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates, and the difference could be material. Significant items, subject to such estimates and assumptions, include the carrying value of real estate held for investment, real estate held for sale, the allocation of overhead expenses, and the allocation of purchase price of real estate assets and intangible assets.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(2) Summary of Significant Accounting Policies – (Continued)

The Partnership regularly assesses whether market events and conditions indicate that it is reasonably possible to recover the carrying amounts of its investments in real estate from future operations and sales. A change in those market events and conditions could have a material effect on the carrying amount of its real estate.

Cash Concentrations of Credit Risk

The Partnership's cash is deposited in one financial institution and at times during the year it may exceed FDIC insurance limits.

Rent Receivables

Credit terms are extended to tenants in the normal course of business. The Partnership performs ongoing credit evaluations of its ~~customers~~tenants’ financial condition and, generally, requires no collateral.

Rent receivables are recorded at their estimated net realizable value. The Partnership follows a policy of providing an allowance for credit losses; however, based on historical experience, and its evaluation of the current status of receivables, the Partnership is of the belief that such accounts, if any, will be collectible in all material respects and thus an allowance is not necessary. Accounts are considered past due if payment is not made on a timely basis in accordance with the Partnership’s credit terms. Receivables considered uncollectible are written off. The Partnership did not have an opening balance of rent receivables as of January 1, 2023.

Income Taxes

The income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the ~~partners~~Partners. In general, no recognition has been given to income taxes in the accompanying financial statements.

The tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Partnership income or loss, the taxable income of the partners would be adjusted accordingly. Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure. The Partnership is no longer subject to U.S. federal income tax examinations for tax years before ~~2020~~2021, and with few exceptions, is no longer subject to state tax examinations for tax years before ~~2020~~2021.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(2) Summary of Significant Accounting Policies – (Continued)

Revenue Recognition

The Partnership's real estate is leased under net leases, classified as operating leases. The leases provide for base annual rental payments payable in monthly installments. The Partnership recognizes rental income according to the terms of the individual leases. For unearned rent, the Partnership records a current liability for any amounts received but not yet earned. The Partnership did not have an opening balance of unearned rent as of January 1,2023. For leases that contain stated rental increases, the increases are recognized in the year in which they are effective. Contingent rental payments are recognized when the contingencies on which the payments are based are satisfied and the rental payments become due under the terms of the leases.

Real Estate Investments

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(2) Summary of Significant Accounting Policies – (Continued)

The Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, it compares the carrying amount of the property to the estimated probability-weighted future undiscounted cash flows expected to result from the property and its eventual disposition. If the sum of the expected future cash flows is less than the carrying amount of the property, the Partnership recognizes an impairment loss equal to the amount by which the carrying amount of the property exceeds the fair value of the property. For properties held for sale, the Partnership determines whether impairment has occurred by comparing the property’s estimated fair value less cost to sell to its current carrying value. If the carrying value is greater than the net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value.

For financial reporting purposes, the buildings owned by the Partnership are depreciated using the straight-line method over an estimated useful life of 25 years. Intangible lease assets are amortized using the straight-line method for financial reporting purposes ~~based~~over on the remaining life of the lease.

The disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations.

The Partnership accounts for properties owned as tenants-in-common with affiliated entities and/or unrelated third parties using the proportionate consolidation method. Each tenant-in-common owns a separate, undivided interest in the properties. Any tenant-in-common that holds more than a 50% interest does not control decisions over the other tenant-in-common interests. The financial statements reflect only this Partnership's percentage share of the properties’ land, building, intangible assets, liabilities, revenues and expenses.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(2) Summary of Significant Accounting Policies – (Continued)

The Partnership's properties are subject to environmental laws and regulations adopted by various governmental entities in the jurisdiction in which the properties are located. These laws could require the Partnership to investigate and remediate the effects of the release or disposal of hazardous materials at these locations if found. For each property, an environmental assessment is completed prior to acquisition. In addition, the lease agreements typically strictly prohibit the production, handling, or storage of hazardous materials (except where incidental to the tenant’s business such as use of cleaning supplies) in violation of applicable law to restrict environmental and other damage. Environmental liabilities are recorded when it is determined the liability is probable and the costs can reasonably be estimated. There were no environmental issues noted or liabilities recorded at December 31, ~~2023~~2024 and ~~2022~~2023.

Fair Value Measurements

AsFair ofvalue, ~~December~~as defined by US 31GAAP, ~~2023~~is ~~and~~the ~~2022~~price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. US GAAP establishes a hierarchy in determining the fair value of an asset or liability. The fair value hierarchy has three levels of inputs, both observable and unobservable. US GAAP requires the ~~Partnership~~utilization ~~had~~of nothe lowest possible level of input to determine fair value. Level 1 inputs include quoted market prices in an active market for identical assets or liabilities. ~~measured~~Level at2 ~~fair~~inputs ~~value~~are onmarket adata, ~~recurring~~other ~~basis~~than Level 1 inputs, that are observable either directly or ~~nonrecurring~~indirectly. ~~basis~~Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no market data.

As of December 31, 2024 and 2023, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

Income Per Unit

Income per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, ~~2023~~2024 and ~~2022~~2023.

Reportable Segments

The Partnership invests in single tenant commercial properties throughout the United States that are net leased to tenants in various industries. Because these net leased properties have similar economic characteristics, the Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment.

Recently Adopted Accounting Pronouncements

Effective January 1, 2023, the Partnership adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326). This guidance changes the methodology to be used to measure credit losses for certain financial instruments and financial assets, including receivables. The new methodology requires the recognition of an allowance that reflects the current estimate of credit losses expected to be incurred over the life of the financial assets. The adoption of the guidance did not have a material impact on the Partnership’s financial statements.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(2) Summary of Significant Accounting Policies – (Continued)

Recently ~~Other~~Adopted ~~accounting~~Accounting standards that have been issued or proposed by the FASB are currently not applicable to the Partnership or are not expected to have a significant impact on the Partnership’s financial position, results of operations and cash flows. Pronouncements

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07: Improvements to Reportable Segment Disclosures. This ASU, which amends Topic 280: Segment Reporting, improves disclosure requirements for reportable segments. The Partnership has a single reportable segment based on the nature of its services and regulatory environment under which it operates. The nature of business and the accounting policies of the segment are the same as described throughout Notes 1 and 2. The Partnership’s Chief Operating Decision Maker is the General Partners.

The Partnership adopted the standard as of January 1, 2024. The adoption did not have a material impact on the Partnership’s financial statements.

(3) Related Party Transactions –

The Partnership owns the percentage interest shown below in the following properties as tenants-in-common with the affiliated entities listed: Jared Jewelry store in Auburn Hills, Michigan (40% – AEI Income & Growth Fund 25 LLC) and Memorial Hospital in Diamondhead, Mississippi (40% - AEI Net Lease Income Fund 36 LP).

The Partnership owned a 50% interest in a Jared Jewelry store in Hanover, Maryland. AEI Net Lease Income & Growth Fund XX LP, an affiliate of the Partnership, owned a 50% interest in this property until the property was sold to an unrelated third party in 2022.

AEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31:

		2023		2022
		2024		2023
AEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.	$	~~162~~156,~~933~~179	$	~~138~~162,~~597~~933
AEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.	$	8374,~~356~~777	$	4683,~~992~~356
AEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of property on behalf of the Partnership.	$	0	$	~~58,789~~0
AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.	$	0	$	~~18,516~~0

The payable to AEI Fund Management, Inc. represents the balance due for the services described in 3a, b, c and d. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(3) Related Party Transactions – (Continued)

The payable to AEI represents the balance due for the services described in 3a, b, c and d. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

(4) Real Estate Investments –

The Partnership leases its properties to tenants under net leases, classified as operating leases. Under a net lease, the tenant is responsible for real estate taxes, insurance, maintenance, repairs and operating expenses for the property. For some leases, the Partnership is responsible for repairs to the structural components of the building, the roof, and the parking lot. At the time the properties were acquired, the remaining primary lease terms varied from 10 to 18 years. The leases provide the tenants with two to four five-year renewal options subject to the same terms and conditions as the primary term. The ~~leases~~lease for the ~~Best Buy store in Eau Claire, Wisconsin and~~ Jared Jewelry store in Auburn Hills, Michigan ~~were~~was extended on November 9, 2023 to ~~end~~have onan ~~January 19,~~end ~~2028~~date ~~and~~of December 31, 2029~~, respectively~~.

The Partnership's properties are commercial, single-tenant buildings. The Jared Jewelry store in Auburn Hills, Michigan was constructed in 1999 and acquired in 2005. The Best Buy store in Eau Claire, Wisconsin was constructed in 1990, renovated in 1997 and acquired in 2008. The Dollar Tree store in Cincinnati, Ohio was constructed in 2015 and acquired in 2016. The Advance Auto store in Chelsea, Alabama was constructed in 2006 and acquired in 2021. The Memorial Hospital in Diamondhead, Mississippi was constructed in 2008 and acquired in 2022. There have been no costs capitalized as improvements subsequent to the acquisitions.

The cost of the properties not held for sale and related accumulated depreciation at December 31, ~~2023~~2024 are as follows:

Property	Land		Buildings		Total		Accumulated Depreciation
Jared Jewelry, Auburn Hills, MI	$	280,993	$	1,185,055	$	1,466,048	$	~~898~~946,~~649~~051
Best Buy, Eau Claire, WI		2,068,739		4,988,357		7,057,096		12,~~915~~115,~~949~~484
Dollar Tree, Cincinnati, OH		355,000		1,250,270		1,605,270		~~395~~445,~~926~~937
Advance Auto, Chelsea, AL		420,654		1,226,345		1,646,999		~~128~~177,~~767~~821
Memorial Hospital, Diamondhead, MS		322,410		1,175,588		1,497,998		82129,~~292~~315
	$	3,447,796	$	9,825,615	$	13,273,411	$	3,~~421~~814,~~583~~608

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Partnership recognized depreciation expense of $393,025 ~~and $348,206, respectively~~.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(4) Real Estate Investments – (Continued)

The following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:

		2023				2022
		2024				2023
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 49 and 61 months, respectively)	$	864,490	$	387,375	$	864,490	$	268,098
Acquired Intangible Lease Assets (in-place lease intangibles with a weighted average life of 37 and 49 months, respectively)	$	864,490	$	506,653	$	864,490	$	387,376
Acquired Below-Market Lease Intangibles (weighted average life of 25 and 37 months, respectively)	$	80,404	$	63,513	$	80,404	$	55,405
Acquired Below-Market Lease Intangibles (weighted average life of 13 and 25 months, respectively)	$	80,404	$	71,621	$	80,404	$	63,513

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the value of in-place lease intangibles amortized to expense was $119,277 ~~and $91~~,~~464,~~ and the increase to rental income for below-market leases was $8,108~~, respectively~~. For lease intangibles not held for sale as of December 31, ~~2023~~2024, the estimated amortization expense is $119,277 for ~~each of~~ the next ~~two~~ succeeding ~~years~~year, $92,930 for the year ended December 31, 2026, $83,514 for the year ended December 31, 2027, $19,871 for the year ended December 31, 2028, and $15,362 for the year ended December 31, ~~2028~~2029. The estimated increase to rental income for below-market leases is $8,108 for ~~each of~~ the next ~~two~~ succeeding ~~years~~year and $675 for the year ended December 31, 2026.

In ~~July~~For ~~2021,~~properties ~~the~~owned ~~Partnership~~as ~~entered into an agreement with the tenant~~ of ~~the Jared Jewelry store in Hanover, Maryland to extend the lease term seven years to end on January~~ December 31, ~~2029. As part of the agreement~~2024, the ~~annual~~minimum future rent ~~will~~payments ~~decrease~~required ~~from~~by ~~$224,340~~the toleases ~~$167,500~~are ~~effective~~as ~~February~~follows: ~~1, 2022.~~

2025	$	993,830
2026		883,988
2027		831,425
2028		243,590
2029		215,560
Thereafter		192,500
	$	3,360,893

There Onwere ~~March~~no ~~22,~~contingent ~~2022,~~rents ~~the~~recognized ~~Partnership purchased a 40% interest of the Memorial Hospital property~~ in ~~Diamondhead,~~2024 Mississippi for $1,610,422. The Partnership allocated $114,052 of the purchase price to Acquired Lease Assets, representing in-place intangibles. The property is leased to Memorial Hospital at Gulfport, Incorporated under a lease agreement with a remaining primary term of 5.3 years (as of date of purchase) and ~~annual rent of $100,320, scheduled to increase annually at 2%~~2023.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(4) Real Estate Investments – (Continued)

For properties owned as of December 31, 2023, the minimum future rent payments required by the leases are as follows:

2024	$	991,773
2025		993,878
2026		874,806
2027		810,512
2028		243,590
Thereafter		408,060
	$	4,322,619

There were no contingent rents recognized in 2023 and 2022.

(5) Major Tenants –

The following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31:

Tenants		~~2023~~2024		~~2022~~2023
Sterling Jewelers Inc.	$	105,560	$	~~130~~105,~~736~~560
Best Buy Stores, L.P.		548,~~318~~801		~~436~~548,~~062~~318
Dollar Tree Stores, Inc.		130,277		130,277
Advance Auto Parts, Inc.		110,000		110,000
Memorial Hospital		~~103~~105,~~179~~187		0103,179
Aggregate rental income of major tenants	$	~~997~~999,~~334~~825	$	~~807~~997,~~075~~334
Aggregate rental income of major tenants as a percentage of total rental income		100%		90100%

(6) Partners’ Capital –

For the years ended December 31, 2024 and 2023, the Partnership declared distributions of $692,933. The Limited Partners were allocated distributions of $686,004 and the General Partners were allocated distributions of $6,929 for the years ended December 31, 2024 and 2023. The Limited Partners' declared distributions represented $40.17 per Limited Partnership Unit outstanding using 17,077 weighted average Units in 2024 and 2023. The declared distributions represented $40.17 per Unit of Net Income and $0 per Unit of contributed capital in 2024 and 2023.

During 2024 and 2023, the Partnership did not repurchase any units.

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, ~~2023~~2024 AND ~~2022~~2023

(6) Partners’ Capital –

For the years ended December 31, 2023 and 2022, the Partnership declared distributions of $692,933 and $690,407, respectively. The Limited Partners were allocated distributions of $686,004 and $683,503 and the General Partners were allocated distributions of $6,929 and $6,904 for the years ended December 31, 2023 and 2022, respectively. The Limited Partners' distributions represented $40.17 and $39.82 per Limited Partnership Unit outstanding using 17,077 and 17,165 weighted average Units in 2023 and 2022, respectively. The distributions represented $40.17 and $39.82 per Unit of Net Income and $0 and $0 per Unit of contributed capital in 2023 and 2022, respectively.

During 2023, the Partnership did not repurchase any units. On April 1, 2022, the Partnership repurchased a total of 352.29 Units for $266,947 from 30 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using Net Cash Flow from operations. The repurchases increase the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $2,696 in 2022.

(7) Income Taxes –

The following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31:

		2023		2022
		2024		2023
Net Income for Financial Reporting Purposes	$	~~241~~260,~~882~~390	$	1241,~~531,185~~882
Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes		~~227~~233,~~564~~390		~~179~~227,~~184~~564
Gain on Sale of Real Estate for Tax Purposes Under Gain for Financial Reporting Purposes		0		(1,268,078)
Income Accrued for Tax Purposes Over (Under) Income for Financial Reporting Purposes		55		0
Taxable Income to Partners	$	469,446	$	442,291
Gain on Sale of Real Estate for Tax Purposes Under Gain for Financial Reporting Purposes		0		0
Taxable Income to Partners	$	493,835	$	469,446

AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023 AND 2022

(6) Income Taxes – (Continued)

The following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December 31:

		2023		2022
		2024		2023
Partners' Capital for Financial Reporting Purposes	$	109,~~218~~785,~~116~~573	$	10,~~669~~218,~~167~~116
Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes		~~428~~661,~~216~~661		~~200~~428,~~652~~216
Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes		3,208,043		3,208,043
Partners' Capital for Tax Reporting Purposes	$	13,~~854~~655,~~375~~277	$	1413,~~077~~854,~~862~~375

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON

ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

(a) Disclosure Controls and Procedures.

Under the supervision and with the participation of management, including its President and Chief Financial Officer, the Managing General Partner of the Partnership evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, the President and Chief Financial Officer of the Managing General Partner concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to management, including the President and Chief Financial Officer of the Managing General Partner, in a manner that allows timely decisions regarding required disclosure.

(b) Internal Control Over Financial Reporting.

(i) Management’s Report on Internal Control Over Financial Reporting. The Managing General Partner, through its management, is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act, and for performing an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2024. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with US GAAP. Our system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and that receipts and expenditures of the Partnership are being made only in accordance with authorizations of management of the Managing General Partner; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Partnership's assets that could have a material effect on the financial statements.

Management of the Managing General Partner performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2024 based upon criteria in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment, management of the Managing General Partner determined that our internal control over financial reporting was effective as of December 31, 2024 based on the criteria in Internal Control-Integrated Framework (2013) issued by the COSO.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.

ITEM 9A. CONTROLS AND PROCEDURES. (Continued)

(i) Management’s Report on Internal Control Over Financial Reporting. The Managing General Partner, through its management, is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act, and for performing an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2023. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with US GAAP. Our system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and that receipts and expenditures of the Partnership are being made only in accordance with authorizations of management of the Managing General Partner; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Partnership's assets that could have a material effect on the financial statements.

Management of the Managing General Partner performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2023 based upon criteria in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment, management of the Managing General Partner determined that our internal control over financial reporting was effective as of December 31, 2023 based on the criteria in Internal Control-Integrated Framework (2013) issued by the COSO.

(ii) Changes in Internal Control Over Financial Reporting. During the most recent period covered by this report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION.

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The registrant is a limited partnership and has no officers, directors, or direct employees. The General Partners manage and control the Partnership's affairs and have general responsibility and the ultimate authority in all matters affecting the Partnership's business. The General Partners are AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner, and the Estate of Robert P. Johnson, the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Credit Trust fbo of Patricia Johnson and Patricia Johnson own a majority interest. AFM has only one senior financial executive, its Chief Financial Officer. The Chief Financial Officer reports directly to Marni J. Nygard, President of AFM, and Kevin Steele, Chief Operating Officer of AFM, and is accountable for his actions to both. Although AFM requires that all of its personnel, including the Chief Financial Officer, engage in honest and ethical conduct, ensure full, fair, accurate, timely, and understandable disclosure, comply with all applicable governmental laws, rules and regulations, and report to Ms. Nygard and Mr. Steele any deviation from these principles, because the organization is composed of only approximately 40 individuals, because the management of a company by an entity that has different interests in distributions and income than investors involves numerous conflicts of interest that must be resolved on a daily basis, and because the ultimate decision makers in all instances is Ms. Nygard and Mr. Steele, AFM has not adopted a formal code of conduct. Instead, the materials pursuant to which investors purchase Units disclose these conflicts of interest in detail and Ms. Nygard, as the President of AFM, and Mr. Steele, as Chief Operating Officer of AFM, resolve conflicts to the best of their ability, consistent with their fiduciary obligations to AFM and the fiduciary obligations of AFM to the Partnership. The director and officers of AFM are as follows:

~~The director and officers of AFM are as follows:~~ 35

Robert P. Johnson, deceased, was Chief Executive Officer and sole director and had held these positions since the formation of AFM in August 1994, and had been elected to continue in these positions until December 2021. He was President of AFM from August 1994 to July 2019. From 1970 to his date of death, May 22, 2021, he had been employed exclusively in the investment industry, specializing in limited partnership investments. In that capacity, he was involved in the development, analysis, marketing and management of public and private investment programs investing in net lease properties as well as public and private investment programs investing in energy development. Since 1971, Mr. Johnson was the president, a director and a registered principal of AEI Securities, Inc., which is registered with the SEC as a securities broker-dealer, is a member of the Financial Industry Regulatory Authority (FINRA) and is a member of the Security Investors Protection Corporation (SIPC). Mr. Johnson was Chief Executive Officer, a director and the principal shareholder of AEI Fund Management, Inc., a real estate management company founded by him, since 1978. Mr. Johnson was a general partner or principal of the general partner in eight limited partnerships up until his date of death.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

(Continued)

~~Marni~~Robert JP. ~~Nygard~~Johnson, ~~Esq.~~deceased, ~~age~~was ~~49,~~the isprevious ~~President~~Chief ofExecutive ~~AFM~~Officer and ~~has~~sole director and had held ~~this~~these ~~position~~positions since ~~July~~the ~~11,~~formation ~~2019,~~of ~~when~~AFM ~~she~~in ~~assumed~~August ~~the~~1994, ~~role~~and ~~from~~had ~~Mr.~~been ~~Johnson.~~elected ~~Ms.~~to ~~Nygard~~continue ~~continues~~in asthese ~~Chief~~positions ~~Investment~~until ~~Officer~~December ~~for~~2021. ~~AEI~~He ~~and~~was isPresident aof ~~General~~AFM ~~Securities~~from ~~Principal~~August of1994 ~~AEI~~to ~~Securities,~~July ~~Inc~~2019. ~~She~~From ~~joined~~1970 ~~AEI~~to inhis ~~2005~~date ~~and~~of isdeath, ~~responsible~~May ~~for~~22, ~~the~~2021, ~~implementation~~he ofhad ~~AEI’s~~been ~~acquisition~~employed exclusively in the investment ~~objectives~~industry, ~~and~~specializing ~~strategies~~in limited partnership investments. AsIn ~~President~~that capacity, ~~she~~he ~~drives~~was ~~corporate~~involved ~~initiatives~~in ~~for~~ the development, analysis, marketing and management of ~~AEI~~ public and private ~~Funds~~investment programs investing in net ~~leased~~lease ~~commercial~~ properties as well as public and private investment programs investing in energy development. ~~Prior~~Since to1971, ~~joining~~Mr. Johnson was the president, a director and a registered principal of AEI Securities, ~~she~~Inc., ~~was~~which ~~employed~~is registered with the SEC as ana ~~attorney~~securities atbroker-dealer, CIis ~~Title~~a inmember Stof the Financial Industry Regulatory Authority (FINRA) and is a member of the Security Investors Protection Corporation (SIPC). ~~Paul~~ Mr. Johnson was Chief Executive Officer, ~~Minnesota~~a indirector and the ~~residential~~principal ~~and~~shareholder ~~commercial~~of ~~property~~AEI ~~departments~~Fund Management, Inc., a real estate management company founded by him, since 1978. Mr. Johnson was a general partner or principal of the general partner in eight limited partnerships up until his date of death.

~~Kevin~~Marni SJ. ~~Steele~~Nygard, Esq., age 6050, is ~~Chief~~President ~~Operations~~of ~~Officer~~AFM and has held this position since ~~August~~July 111, ~~2020.~~ He2019, ~~joined~~when ~~AEI~~she inassumed ~~2012~~the ~~and~~role isfrom ~~responsible~~Mr. ~~for~~Johnson. ~~AEI’s~~Ms. ~~net~~Nygard ~~lease~~continues ~~commercial~~as ~~property~~Chief ~~acquisition~~Investment ~~strategy~~Officer ~~and~~for ~~sourcing~~AEI ~~through~~and ~~the~~is ~~development~~a ofGeneral ~~business~~Securities ~~relationships~~Principal ~~with~~of ~~preferred~~AEI ~~corporate developers~~Securities, ~~tenant~~Inc. ~~corporations,~~She ~~and~~joined ~~net~~AEI ~~lease~~in ~~property~~2005 ~~owners.~~and ~~Kevin~~ is responsible for ~~leading~~ the ~~execution~~implementation of ~~the~~AEI’s ~~organizational~~acquisition ~~strategy~~investment ~~established~~objectives byand ~~the~~strategies. ~~leadership~~As ~~team. Kevin~~President, ~~has~~she ~~more~~drives ~~than~~corporate 30initiatives ~~years~~for ofthe ~~sales~~development, ~~marketing~~analysis, marketing and ~~corporate~~management ~~business~~of ~~operations~~AEI ~~experience~~public and private Funds investing in net leased commercial properties. Prior to joining AEI, heshe was employed ~~with~~as ~~Sheraton~~an ~~Hotels~~attorney ~~and~~at ~~Stan~~CI ~~Johnson~~Title ~~Company~~in asSt. Paul, ~~well~~Minnesota asin the ~~owner~~residential ~~operator~~and ofcommercial aproperty ~~Midwest grocery company~~departments.

~~Keith~~Kevin ES. ~~Petersen~~Steele, ~~CPA (inactive),~~ age 4961, is Chief ~~Financial~~Operating Officer, ~~Treasurer~~ and ~~Secretary of AFM and~~ has held ~~these~~this ~~positions~~position since ~~February~~August 1, 2020. ~~Mr.~~He ~~Petersen~~joined ~~has~~AEI ~~been~~in ~~employed~~2012 byand is responsible for AEI’s ~~Fund~~net ~~Management,~~lease ~~Inc.~~commercial ~~and~~property ~~affiliated~~acquisition ~~entities~~strategy ~~since~~and ~~November~~sourcing ~~2016.~~through ~~Prior~~the todevelopment ~~being~~of ~~elected~~business torelationships ~~the~~with ~~positions~~preferred ~~above~~corporate developers, hetenant ~~was~~corporations, ~~Controller~~and ofnet ~~the~~lease ~~various~~property ~~entities~~owners. ~~Prior~~Kevin tois ~~joining~~responsible ~~AEI,~~for ~~Keith~~leading ~~was~~the ~~employed~~execution ~~with~~of ~~Pine~~the ~~River~~organizational ~~Capital~~strategy ~~Management~~established asby the ~~Vice~~leadership ~~President~~team. Kevin has more than 30 years of ~~Tax~~sales, ~~Compliance~~marketing, and ~~with~~corporate ~~Deloitte~~business operations experience. Prior to joining AEI, anhe ~~international~~was ~~accounting~~employed with Sheraton Hotels and ~~auditing~~Stan ~~firm,~~Johnson Company as well as the owner and operator of a ~~Senior~~Midwest ~~Tax~~grocery ~~Manager~~company.

Keith E. Petersen, CPA (inactive), age 50, is Chief Financial Officer, Treasurer and Secretary of AFM and has held these positions since February 1, 2020. Mr. Petersen has been employed by AEI Fund Management, Inc. and affiliated entities since November 2016. Prior to being elected to the positions above, he was Controller of the various entities. Prior to joining AEI, Keith was employed with Pine River Capital Management as the Vice President of Tax Compliance and with Deloitte, an international accounting and auditing firm, as a Senior Tax Manager.

All of the duties that might be assigned to an audit committee are assigned to Patricia Johnson, the wife of the deceased. Mrs. Johnson is not an audit committee financial expert, as defined.

Before the independent auditors are engaged, Mrs. Johnson, as the sole director of AFM, approves all audit-related fees, and all permissible nonaudit fees, for services of our auditors.

Section 16(a) Beneficial Ownership Reporting Compliance

Under federal securities laws, the directors and officers of the General Partner of the Partnership, and any beneficial owner of more than 10% of a class of equity securities of the Partnership, are required to report their ownership of the Partnership's equity securities and any changes in such ownership to the Securities and Exchange Commission (the "Commission"). Specific due dates for these reports have been established by the Commission, and the Partnership is required to disclose in this Annual Report on 10-K any delinquent filing of such reports and any failure to file such reports during the fiscal year ended December 31, ~~2023~~2024. Based upon information provided by officers and directors of the General Partner, all officers, directors and 10% owners filed all reports on a timely basis in the ~~2023~~2024 fiscal year.

ITEM 11. EXECUTIVE COMPENSATION.

The General Partner and affiliates are reimbursed at cost for all services performed on behalf of the registrant and for all third party expenses paid on behalf of the registrant. The cost for services performed on behalf of the registrant is based on actual time spent performing such services plus an overhead burden. These services include organizing the registrant and arranging for the offer and sale of Units, reviewing properties for acquisition and rendering administrative, property management and property sales services. The amount and nature of such payments are detailed in Item 13 of this annual report on Form 10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND

MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth information pertaining to the ownership of the Units by each person known by the Partnership to beneficially own 5% or more of the Units, by each General Partner, and by each officer or director of the Managing General Partner as of February 28, ~~2024~~2025:

Name and Address of Beneficial Owner	Number of Units Held	Percent of Class

AEI Fund Management XXI, Inc.	0	0.00%
Patricia L. Johnson	0	0.00%
Marni J. Nygard	0	0.00%
Kevin S. Steele	0	0.00%
Keith E. Petersen	0	0.00%

Address for all: 1300 Wells Fargo Place 30 East 7th Street, St. Paul, Minnesota 55101

David & Mary Edsall CRT	927.83505	5.43%
84 N Audubon Road, Indianapolis, IN 46219
Donna & Reginald Hill CRT	927.83505	5.43%
1912 Lakeside Lane, Indianapolis, IN 46229

The persons set forth in the preceding table hold sole voting power and power of disposition with respect to all of the Units set forth opposite their names.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND

DIRECTOR INDEPENDENCE.

The registrant, AFM and its affiliates have common management and utilize the same facilities. As a result, certain administrative expenses are allocated among these related entities. All of such activities and any other transactions involving the affiliates of the General Partner of the registrant are governed by, and are conducted in conformity with, the limitations set forth in the Limited Partnership Agreement of the registrant. Reference is made to Note 3 of the Financial Statements, as presented, and is incorporated herein by reference, for details of related party transactions for the years ended December 31, ~~2023~~2024 and ~~2022~~2023.

Neither the registrant, nor the Managing General Partner of the registrant, has a board of directors consisting of any members who are “independent.” In 2020 through date of his death, the sole director of the Managing General Partner, Robert P. Johnson, was also the Individual General Partner of the registrant, and was the Chief Executive Officer, and indirectly the principal owner, of the Managing General Partner. Patricia Johnson now serves as the sole director of the Managing General Partner. Accordingly, there is no disinterested board, or other functioning body, that reviews related party transactions, or the transactions between the registrant and the General Partners, except as performed in connection with the audit of its financial statements.

The limitations included in the Partnership Agreement require that the cumulative reimbursements to the General Partners and their affiliates for certain expenses will not exceed an amount equal to the sum of (i) 20% of gross offering proceeds, (ii) 5% of Net Cash Flow for property management, (iii) 3% of Net Proceeds of Sale, and (iv) 10% of Net Cash Flow less the Net Cash Flow actually distributed to the General Partners. The cumulative reimbursements subject to this limitation are reimbursements for (i) organization and offering expenses, including commissions, (ii) acquisition expenses, (iii) services provided in the sales effort of properties, and (iv) expenses of controlling persons and overhead expenses directly attributable to the forgoing services or attributable to administrative services. As of December 31, 2024, these cumulative reimbursements to the General Partners and their affiliates did not exceed the limitation amount.

The following table sets forth the forms of compensation, distributions and cost reimbursements paid by the registrant to the General Partners or their Affiliates in connection with the operation of the Fund for the period from inception through December 31, 2024.


Person or Entity Receiving Compensation	Form and Method of Compensation	Amount Incurred From Inception (August 22, 1994) To December 31, 2024

AEI Securities, Inc.	Selling Commissions equal to 8% of proceeds plus a 2% nonaccountable expense allowance, most of which was reallowed to Participating Dealers.		$	2,400,000

General Partners and Affiliates	Reimbursement at Cost for other Organization and Offering Costs.		$	877,000

General Partners and Affiliates	Reimbursement at Cost for all Acquisition Expenses.		$	1,045,009

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND

DIRECTOR INDEPENDENCE. (Continued)

~~Neither~~Person ~~the~~or ~~registrant,~~Entity ~~nor~~Receiving ~~the~~Compensation ~~Managing~~Form General Partner of the registrant, has a board of directors consisting of any members who are “independent.” In 2020 through date of his death, the sole director of the Managing General Partner, Robert P. Johnson, was also the Individual General Partner of the registrant, and ~~was~~Method ~~the Chief Executive Officer, and indirectly the principal owner,~~ of ~~the~~Compensation ~~Managing~~Amount ~~General~~Incurred ~~Partner.~~From ~~Patricia~~Inception ~~Johnson~~(August ~~now serves as the sole director of the Managing General Partner. Accordingly~~22, ~~there~~1994) isTo noDecember ~~disinterested board~~31, or other functioning body, that reviews related party transactions, or the transactions between the registrant and the General Partners, except as performed in connection with the audit of its financial statements. 2024

The limitations included in the Partnership Agreement require that the cumulative reimbursements to the General Partners and their affiliates for certain expenses will not exceed an amount equal to the sum of (i) 20% of gross offering proceeds, (ii) 5% of Net Cash Flow for property management, (iii) 3% of Net Proceeds of Sale, and (iv) 10% of Net Cash Flow less the Net Cash Flow actually distributed to the General Partners. The cumulative reimbursements subject to this limitation are reimbursements for (i) organization and offering expenses, including commissions, (ii) acquisition expenses, (iii) services provided in the sales effort of properties, and (iv) expenses of controlling persons and overhead expenses directly attributable to the forgoing services or attributable to administrative services. As of December 31, 2023, these cumulative reimbursements to the General Partners and their affiliates did not exceed the limitation amount.

Person or Entity Receiving Compensation	Form and Method of Compensation	Amount Incurred From Inception (August 22, 1994) To December 31, 2023
AEI Securities, Inc.	Selling Commissions equal to 8% of proceeds plus a 2% nonaccountable expense allowance, most of which was reallowed to Participating Dealers.		$	2,400,000
General Partners and Affiliates	Reimbursement at Cost for other Organization and Offering Costs.		$	877,000
General Partners and Affiliates	Reimbursement at Cost for all Acquisition Expenses.		$	1,045,009
General Partners and Affiliates	Reimbursement at Cost for providing administrative services to the Fund, including all expenses related to management of the Fund's properties and all other transfer agency, reporting, partner relations and other administrative functions.		$	6,038,831
General Partners and Affiliates	Reimbursement at Cost for providing services related to the disposition of the Fund's properties.		$	1,426,478

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND

General Partners and Affiliates	Reimbursement at Cost for providing administrative services to the Fund, including all expenses related to management of the Fund's properties and all other transfer agency, reporting, partner relations and other administrative functions.	$	6,195,010
General Partners and Affiliates	Reimbursement at Cost for providing services related to the disposition of the Fund's properties.	$	1,426,478
General Partners	1% of Net Cash Flow in any fiscal year until the Limited Partners have received annual, non-cumulative distributions of Net Cash Flow equal to 10% of their Adjusted Capital Contributions and 10% of any remaining Net Cash Flow in such fiscal year.	$	332,797
General Partners	1% of distributions of Net Proceeds of Sale until Limited Partners have received an amount equal to (a) their Adjusted Capital Contributions, plus (b) an amount equal to 12% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously distributed. 10% of distributions of Net Proceeds of Sale thereafter.	$	126,659

DIRECTOR INDEPENDENCE. (Continued)

Person or Entity Receiving Compensation	Form and Method of Compensation	Amount Incurred From Inception (August 22, 1994) To December 31, 2023
General Partners	1% of Net Cash Flow in any fiscal year until the Limited Partners have received annual, non-cumulative distributions of Net Cash Flow equal to 10% of their Adjusted Capital Contributions and 10% of any remaining Net Cash Flow in such fiscal year.		$	325,868
General Partners	1% of distributions of Net Proceeds of Sale until Limited Partners have received an amount equal to (a) their Adjusted Capital Contributions, plus (b) an amount equal to 12% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously distributed. 10% of distributions of Net Proceeds of Sale thereafter.		$	126,659

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

The following is a summary of the fees billed to the Partnership by Boulay PLLP for professional services rendered for the years ended December 31~~, 2023 and 2022~~:

Fee Category		~~2023~~2024		~~2022~~2023
Audit Fees	$	2319,~~825~~500	$	2223,~~950~~825
Audit-Related Fees		0		0
Tax Fees		0		0
All Other Fees		0		0
Total Fees	$	2319,~~825~~500	$	2223,~~950~~825

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. (Continued)

Audit Fees - Consists of fees billed for professional services rendered for the audit of the Partnership’s annual financial statements and review of the interim financial statements included in quarterly reports, and services that are normally provided by Boulay PLLP in connection with statutory and regulatory filings or engagements.

Audit-Related Fees - Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." These services include consultations concerning financial accounting and reporting standards.

Tax Fees - Consists of fees billed for professional services for federal and state tax compliance, tax advice and tax planning.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. (Continued)

All Other Fees - Consists of fees for products and services other than the services reported above.

Policy for Preapproval of Audit and Permissible Non-Audit Services

Before the Independent Registered Public Accounting Firm is engaged by the Partnership to render audit or non-audit services, the engagement is approved by Mrs. Johnson acting as the Partnership’s audit committee.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) (1) A list of the financial statements contained herein is set forth on page 17.

(a) (2) Schedules are omitted because of the absence of conditions under which they are required or because the required information is presented in the financial statements or related notes.

(a) (3) The Exhibits filed in response to Item 601 of Regulation S-K are listed below.

3.1

Certificate of Limited Partnership (incorporated by reference to Exhibit 3.1 of the registrant's Registration Statement on Form SB‑2 filed October 10, 1994 [File No. 33-85076C]).

3.2

Restated Limited Partnership Agreement to the Prospectus (incorporated by reference to Exhibit A of Amendment No. 2 of the registrant's Registration Statement on Form SB-2 filed January 20, 1995 [File No. 33-85076C]).

10.1

Assignment and Assumption of Lease dated February 9, 2004 between the Partnership, AEI Net Lease Income & Growth Fund XX Limited Partnership and Transmills, LLC relating to the Property at 7684 Arundel Mills, Hanover, Maryland (incorporated by reference to Exhibit 10.2 of Form 8-K filed February 24, 2004).

10.2

Assignment and Assumption of Lease dated January 14, 2005 between the Partnership, AEI Income & Growth Fund 25 LLC and LMB Auburn Hills I LLC relating to the Property at 3960 Baldwin Road, Auburn Hills, Michigan (incorporated by reference to Exhibit 10.26 of Form 10-KSB filed March 30, 2005).

10.3

Assignment and Assumption of Lease dated January 31, 2008 between the Partnership, AEI Income & Growth Fund 23 LLC, AEI Income & Growth Fund 26 LLC and Eau Claire Equity Fund Limited Partnership relating to the Property at 4090 Commonwealth Avenue, Eau Claire, Wisconsin (incorporated by reference to Exhibit 10.2 of Form 8-K filed February 6, 2008).

10.4

Purchase and Sale Agreement dated September 17, 2019 between the Partnership, AEI Accredited Investor Fund V LP and ExchangeRight Real Estate, LLC relating to the property at 2860 East Cherokee Drive, Canton, Georgia (incorporated by reference to Exhibit 10.1 of Form 8-K filed October 29, 2019).

31.1

Certification of President of General Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Chief Financial Officer of General Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of President and Chief Financial Officer of General Partner pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AEI INCOME & GROWTH FUND XXI
	Limited Partnership
	By:	AEI Fund Management XXI, Inc.
		Its Managing General Partner
March 21, 2024	By:	/s/ Marni J. Nygard
March 28, 2025	By:	/s/ Marni J. Nygard
		Marni J. Nygard, President
		(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Title	Date
/s/ Marni J. Nygard	President	March 2128, ~~2024~~2025
Marni J. Nygard	(Principal Executive Officer)
/s/ Keith E. Petersen	Chief Financial Officer and Treasurer	March 2128, ~~2024~~2025
Keith E. Petersen	(Principal Accounting Officer)

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