AEI Income & Growth Fund XXII Limited Partnership

Overview

AEI Income & Growth Fund XXII Limited Partnership is a Minnesota limited partnership organized on July 31, 1996. The partnership offered up to 24,000 limited partnership interests at $1,000 per unit under a registration statement effective January 10, 1997. Subscriptions began May 1, 1997 and the offering terminated January 9, 1999, with 16,917.222 units subscribed (approximately $16.9 million).

Structure and governance

• Managing General Partner: AEI Fund Management XXI, Inc. (AFM)
• Individual General Partner: The Estate of Robert P. Johnson
• Limited Partners: Purchasers of partnership units
• The Managing General Partner may liquidate the Partnership upon sale or disposition of all or substantially all assets; liquidation activities have begun under the Partnership Agreement.

Investment strategy

• Target assets: Existing and newly constructed single-tenant commercial properties in the United States.
• Lease strategy: Net leases where tenants pay real estate taxes, insurance, maintenance, and operating expenses; the Partnership may remain responsible for certain structural repairs, roofs, and parking lot maintenance.
• Financing policy: Properties were initially purchased debt-free. The Partnership does not plan to use leverage for acquisitions; if debt is used, it is expected to be short-term and secured by the properties, with secured borrowings limited to 10% of the aggregate purchase price of all properties.
• Distribution policy: The Partnership will not incur borrowings to pay distributions when cash is available. Proceeds from sales may be distributed or reinvested, with distributions calibrated to address federal and state tax consequences for Limited Partners.

Portfolio (as of December 31, 2025)

• Number of properties: 2
• Total cost of properties: $5,797,359
• Occupancy: 100% occupied

Properties:

1. Talecris Plasma Facility — Dallas, TX

   • Acquisition date: July 31, 2020
   • Cost: $2,746,350
   • Tenant: Talecris Plasma Resources, Inc.
   • 2025 annual rent received: $217,359
   • Rent per square foot: $43.13
   • Ownership: 50% (tenant-in-common with AEI Income & Growth Fund 25 LLC)
   • Accounting: Partnership accounts for tenant-in-common interests using the proportionate consolidation method.

2. DaVita Dialysis Facility — Hempstead, TX

   • Acquisition date: September 22, 2022
   • Cost: $3,051,009
   • Tenant: Bollinger Dialysis, LLC
   • 2025 annual rent received: $200,430
   • Rent per square foot: $29.22
   • Ownership: 100% by the Partnership

Leasing and tenants

• Lease terms: Original lease terms ranged from 7.75 to 20 years. Renewal options typically include multiple 5-year options; the Talecris Dallas facility has one 10-year renewal option.
• Tenant concentration: Three tenants each contributed more than 10% of total rental income in 2025 and together accounted for all rental income for the year. The Advance Auto Parts facility in Indianapolis was a major tenant but was sold in 2025.

Historical financial highlights

• 2023: Recorded an impairment of $35,000 on one partnership interest (the interest was subsequently sold).
• 2024: Sold one property; net sale proceeds of $661,301 and a net gain on sale of $32,817.
• 2025: Sold one property; net sale proceeds of $920,594 and a net gain on sale of $200,237.
• Year-end 2025: Partnership owned interests in two properties with a total cost of $5,797,359.

Tax and depreciation

• Depreciation method: Modified Accelerated Cost Recovery System (MACRS).
• Major components: Building depreciated over 39 years (straight-line); land improvements over 15 years (accelerated).
• Section 168(h)(6): Presence of tax-exempt partners requires portions of depreciable components to be depreciated over longer lives.
• Basis treatment: For most properties, federal tax basis equals book depreciable cost plus amortizable lease intangible assets. Properties purchased from 2009–2017 had acquisition costs expensed for book purposes but capitalized for tax depreciation.

Management, employees, and cybersecurity

• Employees: The Partnership has no direct employees. Management services are provided by AEI Fund Management, Inc., an affiliate of AFM.
• Staffing: The Management Company reduced headcount in 2024, which reduced compensation and benefits expenses.
• Conduct and controls: Management maintains a code of conduct and ethics in its employee handbook.
• Cybersecurity: The Management Company maintains a formal cybersecurity program that includes third-party assessments, vulnerability management, employee training, and an incident response plan. The Audit Committee oversees cyber risk management. No material cybersecurity incidents have affected the Management Company to date.

Other matters

• Competition: The Partnership competes in a market with larger and better-resourced participants.
• Insurance: Tenants are required to provide proof of adequate insurance; the Partnership considers the properties adequately insured.
• Real estate strategy: The Partnership intends to hold properties long term but may sell some or all assets to reinvest or distribute proceeds, with distributions managed to address tax implications for Limited Partners.

Legal and regulatory

• Legal proceedings: None reported.
• Mine safety: Not applicable.

Summary

AEI Income & Growth Fund XXII focuses on owning and leasing single-tenant commercial properties under net leases in the U.S., maintaining a conservative approach to debt. As of December 31, 2025, the Partnership held interests in two fully occupied properties (a 50% tenant-in-common interest in the Talecris Dallas facility and a 100% interest in the DaVita Hempstead facility) with annual rents of $217,359 and $200,430, respectively. The Partnership has a record of property dispositions and gains, is managed by an affiliated management company, and maintains formal tax, depreciation, and cybersecurity practices.