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: ~~March~~June 3130, 2022

Commission File Number: 000-23778

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

State of Minnesota		41-1729121
(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 Partnership 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 ~~May~~July 1031, 2022, there were 18,219.68 Units of limited partnership interest outstanding and owned by nonaffiliates of the registrant.

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

INDEX

				Page
Part I – Financial Information
	Item 1.	Financial Statements (unaudited):
		Balance Sheets as of March 31, 2022 and December 31, 2021		3
		Balance Sheets as of June 30, 2022 and December 31, 2021		3
		Statements for the Periods ended March 31, 2022 and 2021:
		Statements for the Periods ended June 30, 2022 and 2021:
			Income	4
			Cash Flows	5
			Changes in Partners’ Capital	6
		Condensed Notes to Financial Statements		7 - 910
	Item 2.	Management's Discussion and Analysis of Financial
			Condition and Results of Operations	911 - 14
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		1415
	Item 4.	Controls and Procedures		1415
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		1516
	Item 3.	Defaults Upon Senior Securities		1516
	Item 4.	Mine Safety Disclosures		1517
	Item 5.	Other Information		1517-18
	Item 6.	Exhibits		1618
Signatures				1619

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

BALANCE SHEETS

ASSETS

		March 31,		December 31,
		June 30,		December 31,
		2022		2021
		(unaudited)
Current Assets:
Cash	$	3991,~~524,041~~696	$	5,307,993
Rent Receivable		0		2,833
Total Current Assets		3991,~~524,041~~696		5,310,826
Real Estate Investments:
Land		~~300,000~~0		300,000
Buildings		~~635,489~~0		635,489
Acquired Intangible Lease Assets		~~475,411~~0		475,411
Real Estate Held for Investment, at cost		~~1,410,900~~0		1,410,900
Accumulated Depreciation and Amortization		~~(669,083)~~0		(651,801)
Real Estate Held for Investment, Net		~~741,817~~0		759,099
Real Estate Held for Sale		0374,536		1,316,981
Total Real Estate Investments		~~741~~374,~~817~~536		2,076,080
Total Assets	$	41,~~265~~366,~~858~~232	$	7,386,906

LIABILITIES AND PARTNERS' CAPITAL

Current Liabilities:
Payable to AEI Fund Management, Inc.	$	4,~~739~~260	$	7,599
Distributions Payable		278,~~519,599~~488		4,236,774
Total Current Liabilities		282,~~524,338~~748		4,244,373
Partners’ Capital:
General Partners		11,~~160~~079		7,700
Limited Partners – 24,000 Units authorized; 18,220 Units issued and outstanding as of 3/31/2022 and 12/31/2021		1,730,360		3,134,833
Limited Partners – 24,000 Units authorized; 18,219.68 Units issued and outstanding as of 6/30/2022 and 12/31/2021		1,272,405		3,134,833
Total Partners' Capital		1,~~741~~283,~~520~~484		3,142,533
Total Liabilities and Partners' Capital	$	41,~~265~~366,~~858~~232	$	7,386,906

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

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

STATEMENTS OF INCOME

(unaudited)

		Three Months Ended March 31
		Three Months Ended June 30				Six Months Ended June 30
		2022		2021		2022		2021
Rental Income	$	4722,~~985~~809	$	~~265~~237,~~302~~995	$	70,794	$	503,297
Expenses:
Partnership Administration – Affiliates		3717,~~812~~860		4527,~~992~~620		55,672		73,612
Partnership Administration and Property Management – Unrelated Parties		1524,~~721~~799		2320,~~722~~680		40,520		44,402
Depreciation and Amortization		10,~~110~~109		9064,~~584~~556		20,219		155,140
Total Expenses		63,643		160,298
Real Estate Impairment		350,000		546,923		350,000		546,923
Operating Income (Loss)		(15,658)		105,004
Total Expenses		402,768		659,779		466,411		820,077
Other Income:
Operating Income (Loss)		(379,959)		(421,784)		(395,617)		(316,780)
Gain (Loss) on Sale of Real Estate		1,133,641		0
Other Income:
Interest Income		603		691
Gain on Sale of Real Estate		0		913,017		1,133,641		913,017
Total Other Income (Loss)		1,134,244		691
Interest Income		411		899		1,014		1,590
Net Income	$	1,118,586	$	105,695
Total Other Income		411		913,916		1,134,655		914,607
Net Income (Loss) Allocated:
Net Income (Loss)	$	(379,548)	$	492,132	$	739,038	$	597,827
General Partners	$	28,656	$	1,057
Net Income (Loss) Allocated:
Limited Partners		1,089,930		104,638
General Partners	$	704	$	4,921	$	29,360	$	5,978
Total	$	1,118,586	$	105,695
Limited Partners		(380,252)		487,211		709,678		591,849
Net Income (Loss) per Limited Partnership Unit	$	59.82	$	5.49
Total	$	(379,548)	$	492,132	$	739,038	$	597,827
Weighted Average Units Outstanding – Basic and Diluted		18,220		19,051
Net Income (Loss) per Limited Partnership Unit	$	(20.87)	$	26.59	$	38.95	$	31.68
Weighted Average Units Outstanding – Basic and Diluted		18,220		18,320		18,220		18,685

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

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

(unaudited)

		Three Months Ended March 31
		Six Months Ended June 30
		2022		2021
Cash Flows from Operating Activities:
Net Income	$	1739,~~118,586~~038	$	~~105~~597,~~695~~827
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization		1734,~~282~~563		87151,~~166~~838
Gain on Sale of Real Estate		(1,133,641)		0
Real Estate Impairment		350,000		546,923
(Increase) Decrease in Rent Receivable		2,833		23,538
Gain on Sale of Real Estate		(1,133,641)		(913,017)
Increase (Decrease) in Payable to AEI Fund Management, Inc.		(2,860)		16,481
(Increase) Decrease in Rent Receivable		2,833		35,074
Total Adjustments		(1,116,386)		127,185
Increase (Decrease) in Payable to AEI Fund Management, Inc.		(3,339)		28,682
Net Cash Provided By (Used For) Operating Activities		2,200		232,880
Total Adjustments		(749,584)		(150,500)
Net Cash Provided By (Used For) Operating Activities		(10,546)		447,327
Cash Flows from Investing Activities:
Proceeds from Sale of Real Estate		2,450,622		04,168,888
Cash Flows from Financing Activities:
Distributions Paid to Partners		(46,~~236~~756,~~774~~373)		(~~198~~396,~~381~~762)
Net Increase (Decrease) in Cash		(1,783,952)		34,499
Repurchase of Partnership Units		0		(541,730)
Net Cash Provided By (Used For) Financing Activities		(6,756,373)		(938,492)
Net Increase (Decrease) in Cash		(4,316,297)		3,677,723
Cash, beginning of period		5,307,993		2,882,411
Cash, end of period	$	3991,~~524,041~~696	$	26,~~916~~560,~~910~~134

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

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

(unaudited)

		General Partners		Limited Partners		Total	Limited Partnership Units Outstanding
Balance, December 31, 2020	$	38,384	$	13,944,984	$	13,983,368	19,051.11
Distributions Declared		(1,984)		(196,397)		(198,381)
Net Income		1,057		104,638		105,695
Balance, March 31, 2021	$	37,457	$	13,853,225	$	13,890,682	19,051.11
Distributions Declared		(22,170)		(2,194,806)		(2,216,976)
Repurchase of Partnership Units		(5,417)		(536,313)		(541,730)	(731.58)
Net Income		4,921		487,211		492,132
Balance, June 30, 2021	$	14,791	$	11,609,317	$	11,624,108	18,319.53
Balance, December 31, 2021	$	7,700	$	3,134,833	$	3,142,533	18,219.68
Distributions Declared		(25,196)		(2,494,403)		(2,519,599)
Net Income		28,656		1,089,930		1,118,586
Balance, March 31, 2022	$	11,160	$	1,730,360	$	1,741,520	18,219.68
Distributions Declared		(785)		(77,703)		(78,488)
Net Income (Loss)		704		(380,252)		(379,548)
Balance, June 30, 2022	$	11,079	$	1,272,405	$	1,283,484	18,219.68

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

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

~~MARCH~~JUNE 3130, 2022

(unaudited)

(1) The condensed 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 statements. The adjustments made to these condensed 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 10K.

(2) Organization –

AEI Net Lease Income & Growth Fund XX Limited Partnership (“Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership's operations are managed by AEI Fund Management XX, 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 Robert P. Johnson Trust and Patricia Johnson, own a majority interest. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Partnership.

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 within 24 to 36 months. Approval of either proposal required the affirmative vote of holders of a majority of the outstanding units. On March 3, 2021, the proposal was approved with a majority of Units voting in favor of the proposal. As a result, the Managing General Partner is proceeding with the planned liquidation of the Partnership.

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

(3) Recently Issued Accounting Pronouncements –

In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Partnership would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance.

Other 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.

(4) Real Estate Investments –

In March 2021, the Partnership entered into an agreement to sell the Dollar Tree store in Indianapolis, Indiana to an unrelated third party. On April 20, 2021, the sale closed with the Partnership receiving net proceeds of $1,608,689, which resulted in a net gain of $187,451. At the time of sale, the cost and related accumulated depreciation and amortization was $1,739,074 and $317,836, respectively.

In May 2021, the Partnership entered into an agreement to sell the Fresenius Medical Center in Green, Ohio to an unrelated third party. On June 29, 2021, the sale closed with the Partnership receiving net proceeds of $2,560,199, which resulted in a net gain of $725,566. At the time of sale, the cost and related accumulated depreciation and amortization was $2,360,000 and $525,367, respectively.

In May 2021, the Partnership entered into an agreement to sell 2.36 acres of land in Fredericksburg, Virginia to an unrelated third party. Based on its long-lived asset valuation analysis, the Partnership determined the land was impaired. As a result, in the second quarter of 2021, a charge to operations for real estate impairment of $133,134 was recognized, which was the difference between the carrying value at June 30, 2021 of $3,155,134 and the estimated fair value of $3,022,000. The charge was recorded against the cost of the land. On July 23, 2021, the sale closed with the Partnership receiving net proceeds of $3,022,000, which resulted in no gain or loss due to the impairment charge recorded in the second quarter of 2021. At the time of sale, the cost and related accumulated amortization was $3,032,763 and $10,763, respectively. At June 30, 2021, the property was classified as Real Estate Held for Sale with a carrying value of $3,022,000.

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

(4) Real Estate Investments – (Continued)

In July 2021, the Partnership entered into an agreement to sell its 70% interest in the Staples retail store in Vernon Hills, Illinois to an unrelated third party. Based on its long-lived asset valuation analysis, the Partnership determined the Staples store was impaired. As a result, in the second quarter of 2021, a charge to operations for real estate impairment of $413,789 was recognized, which was the difference between the carrying value at June 30, 2021 of $2,569,789 and the estimated fair value of $2,156,000. The charge was recorded against the cost of the land and building. At June 30, 2021, the property was classified as Real Estate Held for Sale with a carrying value of $2,156,000. On September 10, 2021, the sale closed with the Partnership receiving net proceeds of $2,108,832, which resulted in a net loss of $47,168. At the time of sale, the cost and related accumulated depreciation and amortization was $3,300,849 and $1,144,849, respectively.

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 $2,450,622, which resulted in a net gain of $1,133,641. At the time of sale, the cost and related accumulated depreciation was $1,989,105 and $672,124, respectively.

In June 2022, the Partnership performed a long-lived asset valuation analysis and determined the Family Dollar store in Mobile, Alabama was impaired. As a result, in the second quarter of 2022, the Partnership recognized real estate impairment of $350,000 to decrease the carrying value to the estimated fair value of approximately $375,000. The charge was recorded against the land, building, in-place lease and above market lease. This property has been classified as Real Estate Held for Sale on the balance sheet as of June 30, 2022 with a carrying value of $375,000.

(5) Payable to AEI Fund Management, Inc. –

AEI Fund Management, Inc. performs the administrative and operating functions for the Partnership. 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.

AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP

CONDENSED NOTES TO FINANCIAL STATEMENTS

(6) Partners’ Capital –

For the ~~three~~six months ended ~~March~~June 30, 2022 and 2021, the Partnership declared distributions of $2,~~519~~598,~~599~~087 and $~~198~~2,~~381~~415,357, respectively. The Limited Partners were allocated distributions of $2,~~494~~572,~~403~~106 and $~~196~~2,~~397~~391,203 and the General Partners were allocated distributions of $25,~~196~~981 and $124,~~984~~154 for the periods, respectively. The Limited Partners'’ distributions represented $~~136~~141.9017 and $10127.3197 per Limited Partnership Unit outstanding using 18,220 and 1918,~~051~~685 weighted average Units in 2022 and 2021, respectively. The distributions represented $5938.8295 and $531.4968 per Unit of Net Income and $77102.0822 and $496.8229 per Unit of return of capital in 2022 and 2021, respectively.

As part of the distributions discussed above, the Partnership distributed net sale proceeds of $2,~~517~~595,~~373~~860 and $2,020,202 in 2022 and 2021, respectively. The Limited Partners received distributions of $2,~~492~~569,~~199~~902 and $2,000,000 and the General Partners received distributions of $25,~~174~~958 and $20,202 for the periods, respectively. The Limited Partners’ distributions represented $~~136~~141.7905 and $109.17 per Unit for the periods, respectively.

(7) Fair Value Measurements –

As of ~~March 31~~June, 2022 and December 31, 2021, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. During 2022, the Partnership impaired the Family Dollar store in Mobile, Alabama to its fair value of approximately $375,000. Fair value was determined using feedback provided by a local broker less costs to sell based on the held for sale classification (level 2 in the fair value hierarchy). An impairment of $350,000 was recognized during the second quarter of 2022.

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 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.

- 9 -

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

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 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 partner of the Partnership.

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.

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 as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized 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.

- 10 -

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

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.

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.

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 Partnership reimburses these expenses subject to detailed limitations contained in the Partnership Agreement.

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

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 the outbreak and continuing effect of the coronavirus (COVID-19) in the U.S. and globally, our tenants and operating partners may be impacted.

Results of Operations

For the ~~three~~six months ended ~~March~~June 3130, 2022 and 2021, the Partnership recognized rental income of $4770,~~985~~794 and $~~265~~503,~~302~~297, respectively. In 2022, rental income decreased due to the sale of five properties. ~~Based~~The onFamily ~~the~~Dollar ~~scheduled~~in ~~rent~~Mobile, ~~for~~Alabama was the final property, ~~owned~~which is classified as Real Estate Held for Sale as of ~~April~~June 30, 2022,. ~~the~~The Partnership expects ~~to recognize~~ rental income ofin ~~approximately~~2022 to total $4570,~~618~~794, inas the Family Dollar lease matured on June 30, 2022 and was not renewed.

For the ~~three~~six months ended ~~March~~June 3130, 2022 and 2021, the Partnership incurred Partnership administration expenses from affiliated parties of $3755,~~812~~672 and $4573,~~992~~612, 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 $1540,~~721~~520 and $2344,~~722~~402, 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.

For the ~~three~~six months ended ~~March~~June 3130, 2022 and 2021, the Partnership recognized interest income of $~~603~~1,014 and $~~691~~1,590, 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.

During the three months ended March 31, 2022, the Partnership's cash balance decreased $1,783,952 as a result of distributions paid to the Partners in excess of cash generated from operating activities, which was partially offset by cash generated from the sale of property. During the three months ended March 31, 2021, the Partnership's cash balance increased $34,499 as a result of cash generated from operating activities in excess of distributions paid to the Partners.

Net cash provided by operating activities decreased from $232,880 in 2021 to $2,200 in 2022 as a result of a decrease in total rental and interest income in 2022, which was partially offset by a decrease in LLC administration and property management expenses in 2022 and net timing differences in the collection of payments from the tenants and the payment of expenses.

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

~~The~~Liquidity ~~major components of the Partnership's cash flow from investing activities are investments in real estate~~ and ~~proceeds~~Capital ~~from the sale of real estate. During three months ended March 31, 2022, the Partnership generated cash flow from the sale of real estate of $2,450,622.~~Resources

During the six months ended June 30, 2022, the Partnership's cash balance decreased $4,316,297 as a result of distributions paid to the Partners in excess of cash generated from operating activities, which was partially offset by cash generated from the sale of property. During the six months ended June 30, 2021, the Partnership's cash balances increased $3,677,723 as a result of cash generated from the sale of property, which was partially offset by distributions paid to the Partners and cash used to repurchase Units in excess of cash generated from operating activities.

Net cash provided by or used for operating activities decreased from $447,327 in 2021 to ($10,546) in 2022 as a result of a decrease in total rental and interest income in 2022 and net timing differences in the collection of payments from the tenants and the payment of expenses, which was partially offset by a decrease in LLC administration and property management expenses in 2022.

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 six months ended June 30, 2022, the Partnership generated cash flow from the sale of real estate of $2,450,622.

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

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.

For the ~~three~~six months ended ~~March~~June 3130, 2022 and 2021, the Partnership declared distributions of $2,~~519~~598,~~599~~087 and $~~198~~2,~~381~~415,357, respectively, which were distributed 99% to the Limited Partners and 1% to the General Partners. The Limited Partners were allocated distributions of $2,~~494~~572,~~403~~106 and $~~196~~2,~~397~~391,203 and the General Partners were allocated distributions of $25,~~196~~981 and $124,~~984~~154 for the periods, respectively.

~~The~~ - ~~Partnership~~15 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 the three months ended March 31, 2022 and 2021, the Partnership did not repurchase any Units from the Limited Partners.-

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.

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

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.

On April 1, 2022, the Partnership did not repurchase any Units from the Limited Partners. On April 1, 2021, the Partnership repurchased a total of 731.58 Units for $536,313 from 34 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. 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 $5,417 in 2021.

Off-Balance Sheet Arrangements

As of ~~March~~June 3130, 2022 and December 31, 2021, 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 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 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) 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 Partnership is a party or of which the Partnership'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 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 90% 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 1^st and October 1^st, respectively, of each year subject to the following limitations. 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 the period covered by this report, the Partnership did not purchase any Units.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS.

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 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: May ____ , 2022	AEI Net Lease Income & Growth Fund XX
Dated: August 10, 2022	AEI Net Lease Income & Growth Fund XX
	Limited Partnership
	By:	AEI Fund Management XX, Inc.
	Its:	Managing General Partner
	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)

Filing Compare · AEI NET LEASE INCOME & GROWTH FUND XX LIMITED PARTNERSHIP