UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~June~~September 30, 2025

Commission File Number: 000-50609

AEI INCOME & GROWTH FUND 25 LLC

(Exact name of registrant as specified in its charter)

State of Delaware		75-3074973
(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)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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 Liability Company Units
	(Title of class)

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 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of ~~July~~October 31, 2025 there were 3534,~~791~~670.5961 Units of limited membership interest outstanding and owned by nonaffiliates of the registrant.

AEI INCOME & GROWTH FUND 25 LLC

INDEX

				Page
Part I – Financial Information
	Item 1.	Condensed Financial Statements (unaudited):
		Balance Sheets as of June 30, 2025 and December 31, 2024		3
		Balance Sheets as of September 30, 2025 and December 31, 2024		3
		Statements for the Periods ended June 30, 2025 and 2024:
		Statements for the Periods ended September 30, 2025 and 2024:
			Income	4
			Cash Flows	5
			Changes in Members' Equity	6
		Condensed Notes to Financial Statements		7 – 98
	Item 2.	Management's Discussion and Analysis of Financial
			Condition and Results of Operations	9 - 13
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		13
	Item 4.	Controls and Procedures		14
Part II – Other Information
	Item 1.	Legal Proceedings		15
	Item 1A.	Risk Factors		15
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		15
	Item 3.	Defaults Upon Senior Securities		1615
	Item 4.	Mine Safety Disclosures		1615
	Item 5.	Other Information		1615
	Item 6.	Exhibits		16
Signatures				16

AEI INCOME & GROWTH FUND 25 LLC

BALANCE SHEETS

ASSETS

		June 30,		December 31,
		September 30,		December 31,
		2025		2024
		(unaudited)
Current Assets:
Cash	$	3,~~203~~509,~~987~~383	$	1,697,116
Real Estate Investments:
Land		5,~~447~~157,~~301~~640		5,868,790
Buildings		13,~~543~~163,~~450~~135		15,321,028
Acquired Intangible Lease Assets		2,178,056		2,178,056
Real Estate Held for Investment, at Cost		2120,~~168~~498,~~807~~831		23,367,874
Accumulated Depreciation and Amortization		(87,~~088~~974,~~698~~853)		(9,163,754)
Real Estate Held for Investment, Net		1312,~~080~~523,~~109~~978		14,204,120
Total Assets	$	16,~~284~~033,~~096~~361	$	15,901,236

LIABILITIES AND MEMBERS’ EQUITY

Current Liabilities:
Payable to AEI Fund Management, Inc.	$	~~163~~202,~~440~~279	$	151,147
Distributions Payable		~~561~~2,~~899~~092,203		278,351
Unearned Rent		2744,~~058~~690		61,749
Total Current Liabilities		~~752~~2,~~397~~339,172		491,247
Members’ Equity:
Managing Member		1213,~~223~~081		(803)
Limited Members – 50,000 Units authorized; 35,791.59 and 36,986.36 Units issued and outstanding as of 6/30/2025 and 12/31/2024, respectively		15,519,476		15,410,792
Limited Members – 50,000 Units authorized; 35,791.59 and 36,986.36 Units issued and outstanding as of 9/30/2025 and 12/31/2024, respectively		13,681,108		15,410,792
Total Members’ Equity		1513,~~531~~694,~~699~~189		15,409,989
Total Liabilities and Members’ Equity	$	16,~~284~~033,~~096~~361	$	15,901,236

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

AEI INCOME & GROWTH FUND 25 LLC

STATEMENTS OF INCOME

(unaudited)

		Three Months Ended June 30				Six Months Ended June 30
		Three Months Ended September 30				Nine Months Ended September 30
		2025		2024		2025		2024
Rental Income	$	~~391~~386,~~406~~868	$	~~384~~426,~~430~~786	$	~~819~~1,~~260~~206,128	$	~~807~~1,~~014~~233,800
Expenses:
LLC Administration – Affiliates		3947,~~069~~509		5950,~~965~~264		91138,~~401~~910		~~129~~180,~~765~~029
LLC Administration and Property Management – Unrelated Parties		5260,~~119~~044		4512,~~928~~580		~~107~~167,~~332~~376		7083,~~854~~434
Depreciation and Amortization		~~156~~152,~~454~~653		174,231		~~312~~465,~~909~~562		~~354~~528,~~209~~440
Total Expenses		~~247~~260,~~642~~206		~~280~~237,~~124~~075		~~511~~771,~~642~~848		~~554~~791,~~828~~903
Operating Income		~~143~~126,~~764~~662		~~104~~189,~~306~~711		~~307~~434,~~618~~280		~~252~~441,~~186~~897
Other Income:
Gain on Sale of Real Estate		0107,789		0		1,~~238~~346,~~455~~244		711
Miscellaneous Other Income		~~600~~0		0		600		0
Interest Income		1920,~~878~~242		11,~~082~~590		3050,~~176~~418		2234,~~497~~087
Total Other Income		20128,~~478~~031		11,~~082~~590		1,~~269~~397,~~231~~262		2334,~~208~~798
Net Income	$	~~164~~254,~~242~~693	$	~~115~~201,~~388~~301	$	1,~~576~~831,~~849~~542	$	~~275~~476,~~394~~695
Net Income Allocated:
Managing Member	$	1727,~~125~~260	$	788,~~800~~327	$	3865,~~624~~884	$	8391,~~600~~927
Limited Members		~~147~~227,~~117~~433		36192,~~588~~974		1,~~538~~765,~~225~~658		~~191~~384,~~794~~768
Total	$	~~164~~254,~~242~~693	$	~~115~~201,~~388~~301	$	1,~~576~~831,~~849~~542	$	~~275~~476,~~394~~695
Net Income per LLC Unit	$	46.1135	$	05.9922	$	4248.2779	$	510.1739
Weighted Average Units Outstanding – Basic and Diluted		35,792		36,986		36,~~389~~190		37,~~072~~043

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

AEI INCOME & GROWTH FUND 25 LLC

STATEMENTS OF CASH FLOWS

(unaudited)

		Six Months Ended June 30
		Nine Months Ended September 30
		2025		2024
Cash Flows from Operating Activities:
Net Income	$	1,~~576~~831,~~849~~542	$	~~275~~476,~~394~~695
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization		~~344~~512,~~048~~270		~~389~~579,~~429~~230
Gain on Sale of Real Estate		(1,~~238~~346,~~455~~244)		(711)
Increase (Decrease) in Payable to AEI Fund Management, Inc.		1251,~~293~~132		(7175,~~361~~678)
Increase (Decrease) in Unearned Rent		(3417,~~691~~059)		(3033,~~572~~734)
Total Adjustments		(~~916~~799,~~805~~901)		~~286~~469,~~785~~107
Net Cash Provided By Operating Activities		~~660~~1,~~044~~031,641		~~562~~945,~~179~~802
Cash Flows from Investing Activities:
Proceeds from Sale of Real Estate		2,~~018~~514,~~418~~116		406,688
Cash Flows from Financing Activities:
Distributions Paid to Members		(~~556~~1,~~702~~118,601)		(~~563~~841,~~507~~858)
Repurchase of Member Units		(614,889)		(93,909)
Net Cash Used For Financing Activities		(1,~~171~~733,~~591~~490)		(~~657~~935,~~416~~767)
Net Increase in Cash		1,~~506~~812,~~871~~267		~~311~~416,~~451~~723
Cash, beginning of period		1,697,116		1,161,433
Cash, end of period	$	3,~~203~~509,~~987~~383	$	1,~~472~~578,~~884~~156

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

AEI INCOME & GROWTH FUND 25 LLC

STATEMENTS OF CHANGES IN MEMBERS' EQUITY

(unaudited)

		Managing Member		Limited Members		Total	Limited Member Units Outstanding
Balance, December 31, 2023	$	(66,695)	$	16,015,144	$	15,948,449	37,158.30
Distributions Declared		(8,369)		(270,600)		(278,969)
Net Income		4,800		155,206		160,006
Balance, March 31, 2024	$	(70,264)	$	15,899,750	$	15,829,486	37,158.30
Distributions Declared		(8,351)		(270,000)		(278,351)
Repurchase of Member Units		(939)		(92,970)		(93,909)	(171.94)
Net Income		78,800		36,588		115,388
Balance, June 30, 2024	$	(754)	$	15,573,368	$	15,572,614	36,986.36
Distributions Declared		(8,351)		(270,000)		(278,351)
Net Income		8,327		192,974		201,301
Balance, September 30, 2024	$	(778)	$	15,496,342	$	15,495,564	36,986.36
Balance, December 31, 2024	$	(803)	$	15,410,792	$	15,409,989	36,986.36
Distributions Declared		(8,350)		(270,001)		(278,351)
Net Income		21,499		1,391,108		1,412,607
Balance, March 31, 2025	$	12,346	$	16,531,899	$	16,544,245	36,986.36
Distributions Declared		(11,099)		(550,800)		(561,899)
Repurchase of Member Units		(6,149)		(608,740)		(614,889)	(1,194.77)
Repurchase of Member Units Repurchase of Partnership Units		(6,149)		(608,740)		(614,889)	(1,194.77)
Net Income		17,125		147,117		164,242
Balance, June 30, 2025	$	12,223	$	15,519,476	$	15,531,699	35,791.59

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

Distributions Declared		(26,402)		(2,065,801)		(2,092,203)

Net Income		27,260		227,433		254,693

Balance, September 30, 2025	$	13,081	$	13,681,108	$	13,694,189	35,791.59

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

AEI INCOME & GROWTH FUND 25 LLC

CONDENSED NOTES TO FINANCIAL STATEMENTS

~~JUNE~~SEPTEMBER 30, 2025

(unaudited)

(1) Basis of Presentation –

The condensed financial statements included herein have been prepared by the registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of operations for the interim period, on a basis consistent with the annual audited financial statements. The adjustments made to these condensed financial statements consist only of normal recurring adjustments. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations, although the registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the summary of significant accounting policies and notes thereto included in the registrant’s latest annual report on Form 10‑K.

(2) Organization –

AEI Income & Growth Fund 25 LLC (the “Company”), a Limited Liability Company, was formed on June 24, 2002 to acquire and lease commercial properties to operating tenants. The Company's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing Member. Robert P. Johnson, the previous Chief Executive Officer and sole director of AFM, served as the Special Managing Member until his withdrawal date effective March 31, 2020. 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. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Company.

(3) Recently Adopted Accounting Pronouncements –

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board are currently not applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows.

(4) Real Estate Investments –

On January 2, 2024, the Company closed the sale of its 100% interest in the Premier Diagnostic Imaging Center in Terre Haute, Indiana. The Company received net proceeds of $406,688, which resulted in a net gain of $711. At the time of sale, the cost and related accumulated depreciation was $1,248,000 and $842,023, respectively.

On March 31, 2025, the Company closed the sale of its 60% interest in the Jared Jewelry in Auburn Hills, Michigan to an unrelated third party. The Company received net proceeds of $2,018,418, which resulted in a net gain of $1,238,455. At the time of sale, the cost and related accumulated depreciation was $2,199,067 and $1,419,104, respectively.

AEI INCOME & GROWTH FUND 25 LLC

CONDENSED NOTES TO FINANCIAL STATEMENTS

(4) Real Estate Investments – (Continued)

On July 29, 2025, the Company closed the sale of its 35% interest in the Advance Auto Parts in Indianapolis, Indiana to an unrelated third party. The Company received net proceeds of $495,698, which resulted in a net gain of $107,789. At the time of the sale, the cost and related accumulated depreciation was $669,976 and $282,067, respectively.

In October 2025, the Company entered into a preliminary agreement to sell its 100% interest in the Jared Jewelry in Aurora, Illinois to an unrelated third party. The sale is non-binding and may not be completed.

(5) Payable to Related Party –

AEI Fund Management, Inc. performs the administrative and operating functions for the Company. The payable to AEI Fund Management represents the balance due for those services. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

(6) Members’ Equity –

For the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, the Company declared distributions of $~~840~~2,~~250~~932,453 and $~~557~~835,~~320~~671, respectively. The Limited Members were allocated declared distributions of $~~820~~2,~~801~~886,602 and $~~540~~810,600 and the Managing Member was allocated declared distributions of $1945,~~449~~851 and $1625,~~720~~071 for the periods ended ~~June~~September 30, 2025 and 2024, respectively. The Limited Members’ declared distributions represented $2279.5676 and $1421.5888 per LLC Unit outstanding using 36,~~389~~190 and 37,~~072~~043 weighted average Units for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, respectively. The declared distributions represented $2248.5679 and $510.1739 per Unit of Net Income and $030.97 and $911.4149 per Unit of return of contributed capital for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, respectively.

On April 1, 2025, the Company repurchased a total of 1,194.77 Units for $608,740 from 37 Limited Members in accordance with the Operating Agreement. The Company acquired these Units using net sales proceeds. The repurchase increases the remaining Limited Members' ownership interest in the Company. As a result of this repurchase and pursuant to the Operating Agreement, the Managing Member received distributions of $6,149 in the second quarter of 2025. On April 1, 2024, the Company repurchased a total of 171.94 Units for $92,970 from 8 Limited Members in accordance with the Operating Agreement. The Company acquired these Units using net sales proceeds. The repurchase increases the remaining Limited Members' ownership interest in the Company. As a result of this repurchase and pursuant to the Operating Agreement, the Managing Member received distributions of $939 in the second quarter of 2024.

(7) Fair Value Measurements –

At ~~June~~September 30, 2025 and December 31, 2024, the Company had no financial assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

~~(8) Subsequent Event –~~ 9

In July 2025, the Company entered into an agreement to sell its 35% interest in the Advance Auto Parts Store in Indianapolis, Indiana to an unrelated third party. On July 29, 2025, the sale closed with the Company receiving net proceeds of approximately $498,000, which resulted in a net gain of approximately $110,000. At the time of sale, the cost basis of the property and related accumulated depreciation was approximately $670,000 and $282,000, respectively.

ITEM 2. 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 Company’s financial condition and results of operations, including the following:

—

Market and economic conditions which affect the value of the properties the Company 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 Members;

—

resolution by the Managing Member of conflicts with which they may be confronted;

—

the success of the Managing Member 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 Company operate.

Application of Critical Accounting Policies

The Company’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 Company’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 Company’s assets and liabilities, or the results of reported operations, would be affected if management’s estimates or assumptions prove inaccurate.

Management of the Company 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 Member of the Company.

Allocation of Purchase Price of Acquired Properties

Upon acquisition of real properties, the Company 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 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.

910

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.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS. (Continued)

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 on a straight-line basis 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 on a straight-line basis 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.

Carrying Value of Properties

Properties are carried at original cost, less accumulated depreciation and amortization. The Company tests long-lived assets for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Company 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.

1011

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.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS. (Continued)

Allocation of Expenses

AEI Fund Management, Inc. 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 Company reimburses these expenses subject to detailed limitations contained in the Operating Agreement.

Factors Which May Influence Results of Operations

The Company 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 the current economic factors, higher interest rates, and inflation in the U.S. and globally, our tenants and operating partners may be impacted.

Results of Operations

For the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, the Company recognized rental income of $~~819~~1,~~260~~206,128 and $~~807~~1,~~014~~233,800, respectively. Rental income ~~increased~~decreased due to ~~multiple~~the ~~rent~~sale ~~increases~~ of ~~various~~two properties in 2025. This ~~increase~~decrease was partially offset by ~~the~~rent ~~sale~~increases ofto ~~one~~multiple ~~property in March of 2025~~properties. Based on the scheduled rent for the properties owned as of ~~July~~October 31, ~~2024~~2025, the Company expects to recognize rental income of approximately $1,592,000 in 2025.

For the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, the Company incurred LLC administration expenses from affiliated parties of $91138,~~401~~910 and $~~129~~180,~~765~~029, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Members. These expenses were lower in 2025, when compared to 2024, mainly due to a decrease in property related management expenses. During the same periods, the Company incurred LLC administration and property management expenses from unrelated parties of $~~107~~167,~~332~~376 and $7083,~~854~~434, 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. These expenses were higher in 2025, when compared to 2024, mainly due to timing of tax and audit services.

On January 2, 2024, the Company closed the sale of its 100% interest in the Premier Diagnostic Imaging Center in Terre Haute, Indiana. The Company received net proceeds of $406,688, which ~~resulted in a net gain of $711. At the time of sale, the cost and related accumulated depreciation was $1,248,000 and $842,023, respectively.~~

In January 2025, the Partnership entered into an agreement to sell its 60% interest in the Jared Jewelry in Auburn Hills, Michigan to an unrelated third party. On March 31, 2025, the sale closed with the Company receiving net proceeds of $2,018,418, which resulted in a net gain of $1,238,455. At the time of sale, the cost and related accumulated depreciation was $2,199,067 and $1,419,104, respectively. 12

11 resulted in a net gain of $711. At the time of sale, the cost and related accumulated depreciation was $1,248,000 and $842,023, respectively.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS. (Continued)

~~For~~In January 2025, the ~~six~~Partnership ~~months~~entered ~~ended~~into ~~June~~an 30agreement to sell its 60% interest in the Jared Jewelry in Auburn Hills, ~~2025~~Michigan ~~and~~to ~~2024~~an unrelated third party. On March 31, 2025, the sale closed with the Company ~~recognized~~receiving ~~interest~~net ~~income~~proceeds of $302,~~176~~018,418, which resulted in a net gain of $1,238,455. At the time of sale, the cost and related accumulated depreciation was $222,~~497~~199,067 and $1,419,104, respectively.

For the nine months ended September 30, 2025 and 2024, the Company recognized interest income of $50,418 and $34,087, respectively.

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 ~~six~~nine months ended ~~June~~September 30, 2025, the Company's cash balances increased $1,~~506~~812,~~871~~267 as a result of cash received from the sale of real estate and cash received from operations, which was partially offset by distributions paid to Members and cash used to repurchase Units. During the ~~six~~nine months ended ~~June~~September 30, 2024, the Company's cash balances increased $~~311~~416,~~451~~723 asdue ato ~~result of~~ cash received from the sale of real estate and cash received from operations, which was partially offset by distributions paid to Members and ~~cash~~the ~~used to~~ repurchase ~~Units in excess~~ of ~~cash~~Member ~~generated from operating activities~~Units.

Net cash provided by operating activities increased from $~~562~~945,~~179~~802 in the ~~six~~nine months ended ~~June~~September 30, 2024 to $~~660~~1,~~045~~ 031,641 in the ~~six~~nine months ended ~~June~~September 30, 2025 as a result of an increase in ~~rental~~interest income, antiming ~~increase~~of inexpense ~~interest~~payments ~~income~~ and a decrease in LLC administration and property management expenses from affiliated parties in 2025. This was partially offset by net timing differences in the collection of payments from the tenants, a decrease in rental income, and an increase in LLC administration and property management expenses from unrelated parties in 2025.

The major components of the Company's cash flow from investing activities are investments in real estate and proceeds from the sale of real estate. During the six months ended June 30, 2025 and June 30, 2024, the Company generated cash flow from the sale of real estate of $2,018,418 and $408,688, respectively. 13

The ~~Company's~~major ~~primary~~components ~~use~~ of the Company's cash flow, ~~other~~from ~~than~~investing ~~investment~~activities are investments in real estate, ~~is distribution payments to Members~~ and ~~cash~~proceeds ~~used~~from ~~to repurchase Units. The Company declares its regular quarterly distributions before~~ the ~~end~~sale of ~~each~~real ~~quarter~~estate. ~~and~~During ~~pays~~ the ~~distribution~~nine inmonths ~~the~~ended ~~first~~September ~~week~~30, ~~after~~2025 ~~the~~and ~~end~~September of30, ~~each~~2024, ~~quarter.~~the ~~The~~ Company ~~attempts~~generated tocash ~~maintain~~flow ~~a stable distribution rate~~ from ~~quarter~~the tosale ~~quarter.~~of ~~The~~real ~~Company~~estate ~~may~~of ~~repurchase~~$2,514,116 ~~tendered Units on April 1st~~ and ~~October 1st~~$406,688, ~~of each year subject to limitations~~respectively.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS. (Continued)

~~For~~The ~~the~~Company's ~~six~~primary ~~months~~use ~~ended~~of ~~June~~cash 30flow, ~~2025~~other ~~and~~than ~~2024,~~investment ~~the~~in ~~Company~~real ~~declared distributions of $840~~estate,~~250~~ ~~and~~is ~~$557,320,~~distribution ~~respectively.~~payments ~~Pursuant~~ to ~~the~~Members ~~Operating~~and ~~Agreement,~~cash ~~distributions~~used ~~of Net Cash Flow are~~ to berepurchase ~~allocated~~Units. ~~97%~~The toCompany ~~the~~declares ~~Limited~~its ~~Members~~regular ~~and~~quarterly 3%distributions tobefore the ~~Managing~~end ~~Member. Distributions~~ of ~~Net~~each ~~Proceeds~~quarter ofand ~~Sale~~pays ~~are~~the todistribution bein ~~allocated 99% to~~ the ~~Limited~~first ~~Members~~week ~~and~~after 1%the toend ~~the~~of ~~Managing~~each ~~Member~~quarter. The ~~Limited~~Company ~~Members~~attempts ~~were~~to ~~allocated~~maintain ~~declared~~a ~~distributions~~stable ofdistribution ~~$820,801~~rate ~~and~~from ~~$540,600~~quarter ~~and~~to ~~the~~quarter. ~~Managing~~The ~~Member~~Company ~~was~~may ~~allocated~~repurchase ~~declared~~tendered ~~distributions~~Units ofon ~~$19,449~~April 1st and ~~$16,720~~October 1st ~~for~~of ~~the~~each ~~periods~~year ~~ended~~subject ~~June~~to ~~30, 2025 and 2024, respectively~~limitations.

For the nine months ended September 30, 2025 and 2024, the Company declared distributions of $2,932,453 and $835,671, respectively. Pursuant to the Operating Agreement, distributions of Net Cash Flow are to be allocated 97% to the Limited Members and 3% to the Managing Member. Distributions of Net Proceeds of Sale are to be allocated 99% to the Limited Members and 1% to the Managing Member. The Limited Members were allocated declared distributions of $2,886,602 and $810,600 and the Managing Member was allocated declared distributions of $45,851 and $25,071 for the periods ended September 30, 2025 and 2024, respectively.

The Company may repurchase Units from Limited Members who have tendered their Units to the Company. Such Units may be acquired at a discount. The Company 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 Company be obligated to purchase Units if, in the sole discretion of the Managing Member, such purchase would impair the capital or operation of the Company.

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

Off-Balance Sheet Arrangements

As of ~~June~~September 30, 2025 and December 31, 2024, the Company 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 3. QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for a smaller reporting company.

ITEM 4. 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 Member of the Company 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 Member 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 Member, in a manner that allows timely decisions regarding required disclosure.

(b) 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.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

There are no material pending legal proceedings to which the Company is a party or of which the Company's property is subject.

ITEM 1A. RISK FACTORS.

Not required for a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES & USE OF PROCEEDS.

(a) None.

(b) Not applicable.

(c) Pursuant to Section 7.7 of the Operating Agreement, each Limited Member has the right to present Units to the Company for purchase by submitting notice to the Managing Member during January or July of each year. The purchase price of the Units is equal to 80% 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 Member in accordance with the provisions of the Operating Agreement. Units tendered to the Company during January and July may be repurchased on April 1st and October 1st, respectively, of each year subject to the following limitations. The Company 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 Company be obligated to purchase Units if, in the sole discretion of the Managing Member, such purchase would impair the capital or operation of the Company. OnDuring ~~April~~the 1period covered by this report, defined as the three months ended September 30, 2025, the Company ~~repurchased~~did ~~1,195~~not ~~units~~purchase any Units.

Small Business Issuer Purchases of Equity Securities

Period	Total Number of Units Purchased	Average Price Paid per Unit	Total Number of Units Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Units that May Yet Be Purchased Under the Plans or Programs
4/1/25 to 4/30/25	1,194.77	$509.50	6,643.18 (1)	(2)
5/1/25 to 5/31/25	--	--	--	--
6/1/25 to 6/30/25	--	--	--	--

(1)

The Company’s repurchase plan is mandated by the Operating Agreement as included in the prospectus related to the original offering of the Units.

(2)

The Operating Agreement contains annual limitations on repurchases described in the paragraph above and has no expiration date.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

31.1

Certification of President of Managing Member 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 Managing Member 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 Managing Member pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: August 11, 2025	AEI Income & Growth Fund 25 LLC
Dated: November 12, 2025	AEI Income & Growth Fund 25 LLC
	By:	AEI Fund Management XXI, Inc.
	Its:	Managing Member
	By:	/s/ Marni J Nygard
		Marni J. Nygard
		President
		(Principal Executive Officer)
	By:	/s/ Keith E Petersen
		Keith E. Petersen
		Chief Financial Officer
		(Principal Accounting Officer)

1617

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