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: 000-50609

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)

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 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 3836,~~191~~986.~~953~~364 Units of limited membership 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 $3836,~~191~~986,~~953~~364.

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 25 LLC (the "Company" or the "Registrant") is a limited liability company which was organized pursuant to the laws of the State of Delaware on June 24, 2002. The registrant is comprised of AEI Fund Management XXI, Inc. (“AFM”), as the Managing Member, Robert P. Johnson, the previous Chief Executive Officer and sole director of AFM, as the Special Managing Member until his withdrawal date effective March 31, 2020, and purchasers of LLC Units as Limited Members. The Company offered for sale up to $50,000,000 of limited membership interests (the "Units") (50,000 Units at $1,000 per Unit) pursuant to a registration statement effective May 13, 2003. The Company commenced operations on September 11, 2003 when minimum subscriptions of 1,500 LLC Units ($1,500,000) were accepted. The offering terminated May 12, 2005 when the extended offering period ended. The Company received subscriptions for 42,434.763 LLC Units. Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $42,434,763 and $1,000, respectively.

The Company was organized to acquire existing and newly constructed commercial properties, to lease such properties to tenants under net leases, to hold such properties and to eventually sell such properties. From subscription proceeds, the Company purchased fifteen properties, including partial interests in eight properties, at a total cost of $36,389,018. The balance of the subscription proceeds was applied to organization and syndication costs. The properties are commercial, single tenant buildings leased under net leases.

The Company's properties were purchased without any indebtedness. The Company will not finance properties in the future to obtain proceeds for new property acquisitions. If it is required to do so, the Company may incur short-term indebtedness to finance day-to-day cash flow requirements (including cash flow necessary to repurchase Units). The Company may borrow to finance the refurbishing of a property.

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

In June 2022, the Managing Member mailed a Consent Statement (Proxy) seeking the consent of the Limited Members to continue the Company for an additional 60 months or to initiate the final disposition, liquidation, and distribution of all of the Company’s properties and assets. Approval of either proposal required the affirmative vote of holders of a majority of the outstanding units. On August 24, 2022, the votes were counted and neither proposal received the required majority vote. As a result, the Company will not liquidate and will continue in operation until the Limited Members vote to authorize the sale of all the Company’s properties or December 31, 2053, as stated in the Operating Agreement. However, in approximately five years, the Managing Member expects to again submit the question to liquidate to a vote by the Limited Members.

ITEM 1. BUSINESS. (Continued)

Leases

Although there are variations in the specific terms of the leases, the following is a summary of the general terms of the Company'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 Company 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 108.1 to 20 years, except for the ~~Staples~~Premier ~~store~~Diagnostic Imaging Center in ~~Clermont~~Terre Haute, ~~Florida~~Indiana, which had a remaining primary term of 87.48 years,. ~~and~~The ~~the~~property ~~Premier Diagnostic Imaging Center~~ in Terre Haute, Indiana, ~~which~~was ~~had~~sold aon ~~remaining~~January ~~primary~~2, ~~term of 7~~2024.8 ~~years.~~ The leases provide the tenants with one to five 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 Company 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 Company owned interests in eleven properties with a total cost of $28,585,859. ~~The Company did not have any property purchases or sales during the year ended December 31, 2021.~~ During the years ended December 31, 2022 and 2023, the Company expended $1,052,919 and $1,217,438, respectively, to purchase two additional property interests, one of which the Company had partial ownership in, as it reinvested cash generated from property sales. During the years ended December 31, 2022 and 2023, the Company sold two property interests and received net sale proceeds of $1,959,687, and $1,418,133, which resulted in net gains of $528,892 and $44,186, respectively. During the year ended December 31, 2023, the Company recorded impairment of $1,086,000 on one property interest. During the year ended December 31, 2024, the Company sold one property interest and received net sale proceeds of $406,688, which resulted in a net gain of $711. As of December 31, ~~2023~~2024, the Company owned interests in ~~ten~~nine properties with a total cost of $2423,~~615~~367,874.

Major Tenants

During ~~2023~~2024, four tenants each contributed more than ten percent of the Company's total rental income. The major tenants in aggregate contributed 8685% of total rental income in ~~2023~~2024. It is anticipated that, based on the 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 a major tenant could materially affect the Company's net income and cash distributions.

Competition

The Company 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 Company. At the time the Company elects to dispose of its properties, it will be in competition with other persons and entities to find buyers for its properties.

ITEM 1. BUSINESS. (Continued)

Employees

The Company has no direct employees. Management services are performed for the Company by AEI Fund Management, Inc. (the “Management Company”), an affiliate of AFM. The Management Company ~~has not~~ made ~~any~~ reductions to the employee headcount in 2024, which in turn resulted in expense reductions in 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 a 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 Company's investment objectives are to acquire existing or newly-developed commercial properties that provide (i) regular rental income; (ii) growth in lease income through rent escalation provisions; (iii) capital growth through appreciation in the value of properties; (iv) reduced occupancy risks as a result of long-term leases with creditworthy corporate tenants; and (v) passive income that may be offset by eligible passive losses from other investments for tax purposes. The Company 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 Managing Members attempt to diversify the properties by tenant and geographic location.

Description of Properties

The Company'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 Company holds an undivided fee simple interest in the properties.

The Company'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 longterm lease, there is little competition until the Company decides to sell the property. At this time, the Company 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 Company would be competing with other real estate owners, who have property vacancies, to attract a new tenant to lease the property. The Company'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.

The following table is a summary of the properties that the Company 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 (60%)	101/14/05	$	2,199,067	Sterling Jewelers Inc.	$	158,340	$	45.82
Jared Jewelry Store Concord, NH	12/101/05	$	4,157,634	Sterling Jewelers Inc.	$	381,325	$	64.98
Jared Jewelry Store Aurora, IL	12/16/05	$	3,818,345	Sterling Jewelers Inc.	$	235,989	$	39.00
Advance Auto Parts Store Indianapolis, IN (35%)	12/21/06	$	669,976	Advance Stores Company, Inc.	$	44,079	$	17.99

Jared Jewelry Store Aurora, IL	12/16/05	$	3,818,345	Sterling Jewelers Inc.	$	235,989	$	39.00

Advance Auto Parts Store Indianapolis, IN (35%)	12/21/06	$	669,976	Advance Stores Company, Inc.	$	44,079	$	17.99

ITEM 2. PROPERTIES. (Continued)

Property	Purchase Date		Original Property Cost		Tenant		Annual Lease Payment	Annual Rent Per Sq. Ft.
Piedmont Health Clinic (Fka Coliseum Health) Macon, GA	7/25/12	$	967,500	(1)	Macon Healthcare, LLC	$	~~168~~167,~~948~~375	$	25.9975
PetSmart Store Gonzales, LA	6/12/13	$	3,109,055	(1)	PetSmart, LLC	$	258,336	$	21.31
Premier Diagnostic Imaging
Terre Haute, IN	8/12/14	$	2,334,000	(1)	None (2)
Tractor Supply Company Store Canton, MS	11/30/18	$	3,429,590		Tractor Supply Company	$	242,000	$	12.67
Talecris Plasma Facility Dallas, TX (50%)	7/31/20	$	2,746,350		Talecris Plasma Resources, Inc.	$	~~204~~211,~~882~~028	$	4041.6587
University of Iowa- Riverside Riverside, IA (30%)	8/3/23	$	1,191,542		Iowa Health	$	7576,~~046~~922	$	33.0588

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

(2) This property is vacant and was sold on January 2, 2024.

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 XXI Limited Partnership); Advance Auto Parts store in Indianapolis, Indiana (AEI Income & Growth Fund XXII Limited Partnership); Talecris Plasma Facility in Dallas, Texas (AEI Income & Growth Fund XXII Limited Partnership); and University of Iowa Health Facility in Riverside, Iowa (AEI Healthcare Fund LLC).

The Company 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 Company’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 8.1 to 20 years. The leases provide the tenants with one to five five-year renewal options subject to the same terms and conditions as the primary term, except for the Talecris Plasma Facility in Dallas, Texas which has one ten-year renewal option. The leases for the Jared Jewelry store in Auburn Hills, Michigan, Jared Jewelry store in Aurora, Illinois, Advance Auto Parts store in Indianapolis, Indiana, Piedmont Health facility in Macon, Georgia, and PetSmart Store in Gonzales, Louisiana were extended to end on December 31, 2029, April 30, 2030, April 30, 2035, June 30, 2031 and January 31, 2028, respectively.

ITEM 2. PROPERTIES. (Continued)

At the time the properties were acquired, the remaining primary lease terms varied from 7.8 to 20 years. The leases provide the tenants with one to five five-year renewal options subject to the same terms and conditions as the primary term, except for the Talecris Plasma Facility in Dallas, Texas which has one ten-year renewal option. The leases for the Jared Jewelry store in Auburn Hills, Michigan, Jared Jewelry store in Aurora, Illinois, Advance Auto Parts store in Indianapolis, Indiana, Piedmont Health facility in Macon, Georgia, and PetSmart Store in Gonzales, Louisiana were extended to end on December 31, 2024, April 30, 2025, April 30, 2025, June 30, 2031 and January 31, 2028, respectively.

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

For tax purposes, the Company'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 Company has tax-exempt Members, the Company 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 whose carrying value was reduced by a real estate impairment and properties purchased during 2009 through 2017. Real estate impairments, which are recorded against the book cost of the land and depreciable property, are not recognized for tax purposes. For properties purchased during 2009 through 2017, 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. ~~The only exception is the property in Terre Haute, Indiana that is vacant and was sold on January 2, 2024.~~

ITEM 3. LEGAL PROCEEDINGS.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

810

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 1,~~103~~084 holders of record of the registrant's LLC 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 Company did not sell any equity securities that are not registered under the Securities Act of 1933.

Distributions of $3433,~~107~~421 and $34,~~342~~107 were declared to the Managing Members and $1,~~102~~080,~~799~~601 and $1,~~110~~102,~~383~~799 were declared to the Limited Members for ~~2023~~2024 and ~~2022~~2023, respectively. The distributions were made on a quarterly basis and represented Net Cash Flow, as defined in the Operating Agreement, except as discussed below. These distributions should not be compared with dividends paid on capital stock by corporations.

(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. On ~~October~~April 1, ~~2023~~2024, the Company repurchased ~~1,034~~172 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
10/1/23 to 10/31/23	1,033.65	$554.97	5,276.47 (1)	(2)
11/1/23 to 11/30/23	--	--	--	--
12/1/23 to 12/31/23	--	--	--	--

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

HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. (Continued)

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 Company’s Units was $~~685~~646 per Unit. The Managing Member 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).

In determining the estimated value of each property, the Managing Member 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:

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

HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. (Continued)

●

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 Company's assets less the Company's liabilities, and less the value attributable to the interest of the Managing Members, divided by the number of Units outstanding. The Company's cash, receivables and liabilities were valued at face value as of September 30, ~~2023~~2024. Each of the Company's properties were valued by dividing their annual rental income as of December 1, ~~2023~~2024 by a capitalization rate the Managing Member 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 Member may be able to sell units, or the fair market value of the Company properties, nor does it represent the amount of net proceeds Limited Members would receive if the Company properties were sold and the proceeds distributed in a liquidation of the Company.

10 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:

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

		December 31, 2024		December 31, 2023
Properties	$	23,038,000	$	25,454,000
Cash		1,578,000		1,575,000
Current liabilities		(477,000)		(1,301,000)
Value attributable to the interest of the Managing Members		(242,000)		(257,000)
Value attributable to the interest of the Limited Members	$	23,897,000	$	25,471,000
LLC Units outstanding		36,986		37,158

HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. (Continued)

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
Properties	$	25,454,000	$	26,352,000
Cash		1,575,000		2,713,000
Current liabilities		(1,301,000)		(413,000)
Value attributable to the interest of the Managing Members		(257,000)		(286,000)
Value attributable to the interest of the Limited Members	$	25,471,000	$	28,366,000
LLC Units outstanding		37,158		38,962

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 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 Members of conflicts with which they may be confronted;

—

the success of the Managing Members 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.

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

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, ~~will~~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 ~~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 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. 13

ITEM 7. 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 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 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.

~~Allocation of Expenses~~ 14

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.

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

Allocation of Expenses

The Management 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 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 years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Company recognized rental income of $1,~~635~~661,~~853~~922 and $1,~~628~~635,~~511~~853, respectively. In ~~2023~~2024, rental income increased due to the acquisition of one property in August 2023 and rent increases for three properties. This increase was partially offset by the ~~sale~~three months of rent abatement for one property. Based on the scheduled rent for the properties owned as of February 28, ~~2024~~2025, the Company expects to recognize rental income of approximately $1,~~728~~726,000 in ~~2024~~2025.

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Company incurred LLC administration expenses from affiliated parties of $~~297~~239,~~779~~899 and $~~267~~297,~~330~~779, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Members. During the same periods, the Company incurred LLC administration and property management expenses from unrelated parties of $~~213~~95,~~804~~523 and $~~197~~213,~~260~~804, 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~~lower in ~~2023~~2024, when compared to ~~2022~~2023, mainly due to expenses related to the vacant property in Terre Haute, Indiana ~~store~~ and repairs at the PetSmart store in Gonzales, Louisiana that occurred in 2023. The property in Terre Haute, Indiana was sold in January 2024.

The Company owned a 60% interest in a former Sports Authority store in Wichita, Kansas. On March 2, 2016, the tenant, TSA Stores, Inc., and its parent company, The Sports Authority, Inc., the guarantor of the lease, filed for Chapter 11 bankruptcy reorganization. In June 2016, the tenant filed a motion with the bankruptcy court to reject the lease for this store effective June 30, 2016, at which time the tenant returned possession of the property to the owners. On March 23, 2021, the owners listed the property for lease with a real estate broker in the Wichita area. While the property was vacant, the Company was responsible for its 60% share of real estate taxes and other costs associated with maintaining the property.

On September 21, 2017, the Company entered into a lease agreement with a primary term of 10 years with Biomat USA, Inc. (“Biomat”) as a replacement tenant for 28% of the square footage of the property. The tenant operates a Biomat USA Plasma Center in the space. The Company’s 60% share of annual rent, which commenced on June 18, 2018, is $55,607. Biomat agreed to pay for the costs to divide the building into two separate spaces, the costs of tenant improvements to remodel the Biomat space and 28% of the cost to replace the roof.

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

In September 2022, the Company entered into an agreement to sell its 60% interest in Biomat in Wichita, Kansas to an unrelated third party. The whole property was classified as real estate held for sale at December 31, 2022. On February 9, 2023, the sale closed with the Company receiving net proceeds of $1,418,133, which resulted in a net gain of $44,186. At the time of sale, the cost and related accumulated depreciation was $2,839,297 and $1,465,350, respectively.

In June 2022, the Company entered into an agreement to sell its 72% interest in the Staples store in Clermont, Florida to an unrelated third party. On June 30, 2022, the sale closed with the Company receiving net proceeds of $1,959,687, which resulted in a net gain of $528,892. At the time of sale, the cost and related accumulated depreciation was $2,315,045 and $884,250, respectively.

In October 2022, the Company entered into an agreement with the tenant of the PetSmart store in Gonzales, Louisiana to extend the lease term five years to end on January 31, 2028. As part of the agreement, the annual rent increased from $246,179 to $258,336 effective February 1, 2023.

On November 1, 2022, the Company purchased an additional 50% interest in the Piedmont Health (Fka Coliseum Health) property in Macon, Georgia for $1,052,919 from AEI Income & Growth Fund 24 LLC, an affiliate of the Company. The purchase price of the property interest 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 24 LLC was in the process of liquidating its property portfolio. The Company now owns 100% interest in the property. The Company allocated $22,002 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The annual rent for the additional 50% interest that was purchased is $84,474.

In June 2023, the Company entered into an agreement with the tenant of the Piedmont Health store (Fka Coliseum Health) in Macon, Georgia to extend the lease term 87 months commencing on April 1, 2024 and expiring on June 30, 2031. As an inducement for the Tenant’s extension of the lease term, fixed rent will be abated for the first three months of the new lease term. As part of the agreement, the annual rent decreased from $168,948 to $167,375 effective July 1, 2024. The Company also agrees to pay a commission to the Tenant’s real estate broker in the amount of 2% of the Fixed Rent to be paid during the period from April 1, 2024, to June 30, 2031, which is the amount of $23,968. The commission is recorded within acquired intangible lease assets on the balance sheet and will be amortized over the lease term.

The Company owns a 100% interest in a Premier Diagnostic Imaging Center in Terre Haute, Indiana. On May 31, 2022, the lease term ended, and the tenant returned possession of the property

to the owners.

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

~~While~~In ~~the~~June ~~property is vacant~~2023, the Company isentered ~~responsible~~into ~~for~~an ~~its~~agreement ~~100%~~with ~~share~~the tenant of ~~real~~the ~~estate~~Piedmont ~~taxes~~Health ~~and~~facility ~~other~~(Fka ~~costs~~Coliseum ~~associated~~Health) ~~with~~in ~~maintaining~~Macon, Georgia to extend the ~~property.~~lease ~~The~~term ~~property~~87 ~~was~~months ~~listed~~commencing ~~with~~on ~~Ten-X~~April ~~for~~1, ~~auction~~2024 and expiring on ~~November~~June 1330, ~~2023~~2031. ~~The~~As ~~annual~~an inducement for the Tenant’s extension of the lease term, fixed rent ~~from~~was ~~this~~abated ~~property~~for ~~represented~~the ~~approximately~~first ~~12%~~three months of the ~~total~~new ~~annual~~lease ~~rent~~term. As part of the agreement, the annual rent decreased from $168,948 to $167,375 effective July 1, 2024. The Company also agreed to pay a commission to the Tenant’s ~~property~~real ~~portfolio.~~estate ~~The~~broker ~~loss~~in the amount of ~~rent~~2% ~~and~~of ~~increased~~the ~~expenses~~Fixed ~~related~~Rent to ~~this~~be ~~property~~paid ~~decreased~~during the ~~Company’s~~period ~~cash~~from ~~flow.~~April ~~However~~1, at2024, ~~this~~to ~~time~~June 30, 2031, which is the ~~Company~~amount ~~does~~of ~~not~~$23,968. ~~anticipate~~The commission is recorded within acquired intangible lease assets on the ~~need~~balance tosheet ~~reduce~~and ~~its~~will ~~regular~~be ~~quarterly~~amortized ~~cash~~on ~~distribution~~a straight-line basis over the lease term.

The Company owned a 100% interest in a Premier Diagnostic Imaging Center in Terre Haute, Indiana. In June 2023, the Company performed a long-lived asset valuation analysis and determined the Premier Diagnostic Imaging Center in Terre Haute, Indiana was impaired. As a result, in the second quarter of 2023, the Company recognized real estate impairment of $90,000 to decrease the carrying value to the estimated fair value of $1,401,977. The charge was recorded against the land, building, in-place lease and above market lease. In December 2023, the Company performed another long-lived asset valuation analysis and determined the Premier Diagnostic Imaging Center in Terre Haute, Indiana was further impaired. As a result, in the fourth quarter of 2023, the Company recognized real estate impairment of $996,000 to decrease the carrying value to the estimated fair value of $405,977. 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 as of December 31, 2023 on the balance sheet with a carrying value of $405,977. In November 2023, the Company entered into an agreement to sell its 100% interest in the Premier Diagnostic Imaging Center in Terre Haute, Indiana. On January 2, 2024, the sale closed with the Company receiving net proceeds of $406,432, which resulted in a net gain of $455. At the time of sale, the cost and related accumulated depreciation was $1,248,000 and $842,023 respectively.

estimated fair value of $405,977. The charge was recorded against the land, building, in-place lease and above market lease. In November 2023, the Company entered into an agreement to sell its 100% interest in the Premier Diagnostic Imaging Center in Terre Haute, Indiana. Consequently, this property was classified as Real Estate Held for Sale on the balance sheet as of December 31, 2023 with a carrying value of $405,977. On January 2, 2024, the sale closed with the Company receiving 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 August 3, 2023, the Company purchased a 30% interest in the University of Iowa Health in Riverside, Iowa for $1,193,470 from AEI Property Corporation (“APC”), an affiliate of the Company. 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 Company allocated $141,940 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The property is leased to Board of Regents, State of Iowa under a lease agreement with a remaining primary term of approximately 10 years (as of date of purchase) and annual rent of $73,215 scheduled to increase annually at 2.5%.

In November 2023, the Company entered into an agreement with the tenant of Jared Jewelry 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 $158,340.

~~For~~In August 2024, the ~~years~~Company ~~ended~~entered ~~December 31,~~into ~~2023~~an ~~and~~agreement ~~2022~~with the tenant of Advance Auto in Indianapolis, Indiana to extend the ~~Company~~lease ~~recognized~~term ~~interest~~to ~~income~~10 ofyears ~~$55~~commencing on May 1,~~467~~ 2025 and ~~$12,077,~~expiring ~~respectively.~~on InApril ~~2023~~30, ~~interest~~2035. ~~income~~As ~~increased~~part ~~due~~of tothe agreement, the ~~Company~~annual ~~having~~rent ~~more~~is ~~money~~to ~~invested~~be incharged aat ~~money~~$36,750 ~~market~~for ~~account~~the ~~and~~first ~~higher~~five ~~money~~years ~~market~~and ~~interest~~$39,200 ~~rates~~for inthe ~~2023~~next five years.

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.

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

In November 2024, the Company entered into an agreement with the tenant of Jared Jewelry in Aurora, Illinois to extend the lease term 5 years commencing on May 1, 2025 and expiring on April 30, 2030. As part of the agreement, the annual rent is scheduled to increase to $259,588.

For the years ended December 31, 2024 and 2023, the Company recognized interest income of $44,929 and $55,467, respectively. In 2024, interest income decreased due to the Company having less money invested in a money market account than in 2023 and interest rates remaining comparable.

Liquidity and Capital Resources

During the year ended December 31, ~~2023~~2024, the Company's cash balances ~~decreased~~increased $~~601~~535,~~389~~683 as a result of ~~cash~~the ~~being~~sale ~~used~~of toone ~~purchase~~ property, ~~distributions paid to the Members~~ and cash ~~used~~received ~~to repurchase Units in excess of cash generated~~ from ~~operating~~operations. ~~activities,~~This ~~which~~ was partially offset by distributions paid to the ~~sale~~Members ofand ~~one~~cash ~~property~~used to repurchase Units. During the year ended December 31, ~~2022~~2023, the Company's cash balances ~~increased~~decreased $1601,~~106,164~~389 as a result of cash ~~generated~~being ~~from~~used ~~operating~~to ~~activities~~purchase ~~due~~property, todistributions ~~proceeds~~paid ~~received~~to ~~from~~ the ~~sale~~Members ~~of real estate~~ and cash ~~generated~~used ~~from~~to ~~operating~~repurchase ~~activities~~Units in excess of ~~distributions~~cash ~~paid~~generated tofrom ~~the~~operating ~~Members~~activities, which was partially offset by ~~cash~~the ~~used~~sale toof ~~purchase~~one property.

Net cash provided by operating activities ~~increased~~decreased from $1,~~344~~372,~~121~~422 in ~~2022~~2023 to $1,~~372~~343,~~422~~113 in ~~2023~~2024 as a result of ~~an increase in total rental income, an increase in interest income in 2023 and~~ net timing differences in the collection of payments from the tenants and the payment of expenses in ~~2023~~2024, which were partially offset by ana ~~increase~~decrease in LLC administration and property management expenses.

The major ~~components~~component of the Company's cash flow from investing activities are investments in real estate and proceeds from the sale of real estate. During the year ended December 31, 2024, the Company generated cash flow from the sale of real estate of $406,688. During the same period, the Company did not expend any cash to invest in real estate. During the year ended December 31, 2023, the Company generated cash flow from the sale of real estate of $1,418,133. During the same period, the Company expended $1,217,438 to invest in real properties as the Company reinvested cash generated from property sales.

The Company's primary use of cash flow, other than investment in real estate, is distribution payments to Members and cash used to repurchase Units. The Company 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 Company attempts to maintain a stable distribution rate from quarter to quarter. The Company may repurchase tendered Units on April 1st and October 1st of each year subject to limitations.

For the years ended December 31, 2023 and 2022, the Company declared distributions of $1,136,906 and $1,144,725, respectively. Pursuant to the Operating Agreement, distributions of Net Cash Flow were allocated 97% to the Limited Members and 3% to the Managing Members. Distributions of Net Proceeds of Sale were allocated 99% to the Limited Members and 1% to the Managing Members. The Limited Members received distributions of $1,102,799 and $1,110,383 and the Managing Members received distributions of $34,107 and $34,342 for the years ended December 31, 2023 and 2022, 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.

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

~~During~~For the years ended December 31, 2024 and 2023, the Company ~~repurchased~~declared adistributions ~~total~~ of $1,~~803.42~~114,022 ~~Units~~and ~~for~~ $1,~~016~~136,~~467~~906, ~~from~~respectively. 59Pursuant ~~Limited~~to ~~Members in accordance with~~ the Operating Agreement., ~~The~~distributions ~~Company~~of ~~acquired~~Net ~~these~~Cash ~~Units~~Flow ~~using~~are ~~net~~to ~~sales~~be ~~proceeds.~~allocated ~~The~~97% ~~repurchase~~to ~~increases~~ the ~~remaining~~ Limited Members' ~~ownership~~and ~~interest~~3% into the ~~Company~~Managing Members. AsDistributions aof ~~result~~Net Proceeds of ~~this~~Sale ~~repurchase~~are ~~and~~to ~~pursuant~~be allocated 99% to the ~~Operating~~Limited ~~Agreement,~~Members and 1% to the Managing Members. ~~received~~The Limited Members were allocated declared distributions of $191,~~490~~080,601 inand ~~2023. During 2022~~$1,102,799 and the ~~Company~~Managing ~~did~~Members ~~not~~were ~~repurchase~~allocated ~~any~~declared ~~Units~~distributions ~~from~~of $33,421 and $34,107 for the ~~Limited~~years ~~Members~~ended December 31, 2024 and 2023, respectively.

During 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 Members received distributions of $939 in 2024. During 2023, the Company repurchased a total of 1,803.42 Units for $1,016,467 from 59 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 Members received distributions of $19,490 in 2023.

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 December 31, ~~2023~~2024 and ~~2022~~2023, 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 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.

AEI INCOME & GROWTH FUND 25 LLC

INDEX TO FINANCIAL STATEMENTS

		Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 542)		2019 – 2120
Balance Sheets as of December 31, 2023 and 2022		22
Balance Sheets as of December 31, 2024 and 2023		21
Statements for the Years Ended December 31, 2023 and 2022:
Statements for the Years Ended December 31, 2024 and 2023:
	Operations	2322
	Cash Flows	2423
	Changes in Members’ Equity	2524
Notes to Financial Statements		2625 – 3938

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Members:

AEI Income & Growth Fund 25 LLC

St. Paul, Minnesota

Opinion on the Financial Statements

We have audited the accompanying balance sheets of AEI Income & Growth Fund 25 LLC (a Delaware limited liability company) (the “Company”) as of December 31, ~~2023~~2024 and ~~2022~~2023, and the related statements of operations, changes in members' equity, 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 Company 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 Company’s management. Our responsibility is to express an opinion on the Company’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 Company 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 Company 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 Company’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 Company’s auditor since 2002. Minneapolis, Minnesota March 2128, ~~2024~~2025

AEI INCOME & GROWTH FUND 25 LLC

BALANCE SHEETS

ASSETS

		December 31,		~~December 31,~~	December 31,
		2023		2022
		2024			2023
Current Assets:
Cash	$	~~1,161,433~~	$1,697,116	~~1,762,822~~$	1,161,433
Rent Receivable		0		3,673
Real Estate Investments:
Total Current Assets		1,161,433		1,766,495
Land		5,868,790			5,868,790
Real Estate Investments:
Buildings		15,321,028			15,321,028
Land		5,868,790		5,930,096
Acquired Intangible Lease Assets		2,178,056			2,178,056
Buildings		15,321,028		16,356,241
Real Estate Held for Investment, at Cost		23,367,874			23,367,874
Acquired Intangible Lease Assets		2,178,056		2,302,845
Accumulated Depreciation and Amortization		(9,163,754)			(8,394,725)
Real Estate Held for Investment, at Cost		23,367,874		24,589,182
Real Estate Held for Investment, Net		14,204,120			14,973,149
Accumulated Depreciation and Amortization		(8,394,725)		(8,528,460)
Real Estate Held for Sale		0			405,977
Real Estate Held for Investment, Net		14,973,149		16,060,722
Total Real Estate Investments		14,204,120			15,379,126
Real Estate Held for Sale		405,977		1,373,947
Total Assets	$	15,901,236		$	16,540,559
Total Real Estate Investments		15,379,126		17,434,669
Total Assets	$	16,540,559	$	19,201,164

LIABILITIES AND MEMBERS’ EQUITY

Current Liabilities:
Payable to AEI Fund Management, Inc.	$	~~249~~151,~~999~~147	$	~~159~~249,~~281~~999
Distributions Payable		~~284~~278,~~538~~351		~~286~~284,~~181~~538
Unearned Rent		5761,~~573~~749		3957,~~543~~573
Total Current Liabilities		~~592~~491,~~110~~247		~~485~~592,~~005~~110
Members’ Equity (Deficit):
Managing Members		(~~66,695~~803)		4(66,~~747~~695)
Limited Members – 50,000 Units authorized; 37,158.30 and 38,961.72 Units issued and outstanding as of December 31, 2023 and 2022, respectively		16,015,144		18,711,412
Limited Members – 50,000 Units authorized; 36,986.36 and 37,158.30 Units issued and outstanding as of December 31, 2024 and 2023, respectively		15,410,792		16,015,144
Total Members’ Equity		15,~~948~~409,~~449~~989		1815,~~716~~948,~~159~~449
Total Liabilities and Members’ Equity	$	1615,~~540~~901,~~559~~236	$	1916,~~201~~540,~~164~~559

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

AEI INCOME & GROWTH FUND 25 LLC

STATEMENTS OF OPERATIONS

		Years Ended December 31
		2023		2022
		2024		2023
Rental Income	$	1,~~635~~661,~~853~~922	$	1,~~628~~635,~~511~~853
Expenses:
LLC Administration – Affiliates		~~297~~239,~~779~~899		~~267~~297,~~330~~779
LLC Administration and Property Management – Unrelated Parties		~~213~~95,~~804~~523		~~197~~213,~~260~~804
Depreciation and Amortization		~~732~~702,~~770~~669		~~838~~732,~~780~~770
Real Estate Impairment		~~1,086,000~~0		01,086,000
Total Expenses		21,~~330~~038,~~353~~091		12,~~303~~330,~~370~~353
Operating Income (Loss)		~~(694~~623,~~500)~~831		~~325~~(694,~~141~~500)
Other Income:
Gain on Sale of Real Estate		~~44,186~~711		~~528~~44,~~892~~186
Interest Income		5544,~~467~~929		1255,~~077~~467
Total Other Income		9945,~~653~~640		~~540~~99,~~969~~653
Net Income (Loss)	$	~~(594~~669,~~847)~~471	$	~~866~~(594,~~110~~847)
Net Income (Loss) Allocated:
Managing Members	$	~~(17~~100,~~845)~~252	$	69(17,~~055~~845)
Limited Members		~~(577~~569,~~002)~~219		~~797~~(577,~~055~~002)
Total	$	~~(594~~669,~~847)~~471	$	~~866~~(594,~~110~~847)
Net Income (Loss) per LLC Unit	$	(15.~~13)~~37	$	20(15.4613)
Weighted Average Units Outstanding – Basic and Diluted		3837,~~126~~029		38,~~962~~126

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

AEI INCOME & GROWTH FUND 25 LLC

STATEMENTS OF CASH FLOWS

		Years Ended December 31
		2023		2022
		2024		2023
Cash Flows from Operating Activities:
Net Income (Loss)	$	~~(594~~669,~~847)~~471	$	~~866~~(594,~~110~~847)
Adjustments to Reconcile Net Income (Loss) To Net Cash Provided by Operating Activities:
Depreciation and Amortization		~~813~~769,~~034~~029		~~931~~813,~~331~~034
Gain on Sale of Real Estate		(~~44,186~~711)		(~~528~~44,~~892~~186)
Real Estate Impairment		~~1,086,000~~0		01,086,000
(Increase) Decrease in Rent Receivable		~~3,673~~0		73,~~554~~673
Increase (Decrease) in Payable to AEI Fund Management, Inc.		90(98,~~718~~852)		6390,~~900~~718
Increase (Decrease) in Unearned Rent		184,~~030~~176		418,~~118~~030
Total Adjustments		1673,~~967,269~~642		~~478~~1,~~011~~967,269
Net Cash Provided By (Used For) Operating Activities		1,~~372~~343,~~422~~113		1,~~344~~372,~~121~~422
Cash Flows from Investing Activities:
Investments in Real Estate		~~(1,217,438)~~0		(1,~~052~~217,~~919~~438)
Proceeds from Sale of Real Estate		1406,~~418,133~~688		1,~~959~~418,~~687~~133
Net Cash Provided By (Used For) Investing Activities		~~200~~406,~~695~~688		~~906~~200,~~768~~695
Cash Flows from Financing Activities:
Distributions Paid to Members		(1,~~138~~120,~~549~~209)		(1,~~144~~138,~~725~~549)
Repurchase of LLC Units		(193,~~035,957~~909)		0(1,035,957)
Net Cash Provided By (Used For) Financing Activities		(21,~~174~~214,~~506~~118)		(12,~~144~~174,~~725~~506)
Net Increase (Decrease) in Cash		~~(601~~535,~~389)~~683		1(601,~~106,164~~389)
Cash, beginning of year		1,~~762~~161,~~822~~433		~~656~~1,~~658~~762,822
Cash, end of year	$	1,~~161~~697,~~433~~116	$	1,~~762~~161,~~822~~433

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

AEI INCOME & GROWTH FUND 25 LLC

STATEMENTS OF CHANGES IN MEMBERS' EQUITY

		Managing Members		Limited Members		Total	Limited Member Units Outstanding
Balance, December 31, 2021	$	(29,966)	$	19,024,740	$	18,994,774	38,961.72
Balance, December 31, 2022	$	4,747	$	18,711,412	$	18,716,159	38,961.72
Distributions Declared		(34,342)		(1,110,383)		(1,144,725)
Net Income		69,055		797,055		866,110
Balance, December 31, 2022		4,747		18,711,412		18,716,159	38,961.72
Distributions Declared		(34,107)		(1,102,799)		(1,136,906)
Repurchase of Member Units		(19,490)		(1,016,467)		(1,035,957)	(1,803.42)
Net Loss		(17,845)		(577,002)		(594,847)
Balance, December 31, 2023	$	(66,695)	$	16,015,144	$	15,948,449	37,158.30
Distributions Declared		(33,421)		(1,080,601)		(1,114,022)
Repurchase of Member Units		(939)		(92,970)		(93,909)	(171.94)
Net Income		100,252		569,219		669,471
Balance, December 31, 2024	$	(803)	$	15,410,792	$	15,409,989	36,986.36

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

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(1) 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.

The terms of the offering called for a subscription price of $1,000 per LLC Unit, payable on acceptance of the offer. The Company commenced operations on September 11, 2003 when minimum subscriptions of 1,500 LLC Units ($1,500,000) were accepted. The offering terminated May 12, 2005, when the extended offering period ended. The Company received subscriptions for 42,434.763 Units. Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $42,434,763 and $1,000, respectively. The Company shall continue until December 31, 2053, unless dissolved, terminated and liquidated prior to that date.

During operations, any Net Cash Flow, as defined in the Operating Agreement, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members. Distributions to Limited Members will be made pro rata by Units.

Any Net Proceeds of Sale, as defined in the Operating Agreement, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 7% 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 Members and 10% to the Managing Members. Distributions to the Limited Members 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 97% to the Limited Members and 3% to the Managing Members. Net losses from operations will be allocated 99% to the Limited Members and 1% to the Managing Members.

AEI INCOME & GROWTH FUND 25 LLC

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 Operating Agreement as follows: (i) first, to those Members with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Members and 1% to the Managing Members until the aggregate balance in the Limited Members' capital accounts equals the sum of the Limited Members' Adjusted Capital Contributions plus an amount equal to 7% 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 Members and 10% to the Managing Members. Losses will be allocated 99% to the Limited Members and 1% to the Managing Members.

The Managing Members are not required to currently fund a deficit capital balance. Upon liquidation of the Company or withdrawal by a Managing Member, the Managing Members will contribute to the Company an amount equal to the lesser of the deficit balances in their capital accounts or 1.01% of the total capital contributions of the Limited Members over the amount previously contributed by the Managing Members.

(2) Summary of Significant Accounting Policies –

Financial Statement Presentation

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

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

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

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.

The Company 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 Company'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 Company 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 Company 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 Company 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 Company’s credit terms. Receivables considered uncollectible are written off. The opening balance of rent receivables was approximately $3,700 as of January 1, 2023.

Income Taxes

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

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

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

The tax return and the amount of distributable Company income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Company income or loss, the taxable income of the members would be adjusted accordingly. Primarily due to its tax status as a partnership, the Company has no significant tax uncertainties that require recognition or disclosure. The Company 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.

Revenue Recognition

The Company'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 Company recognizes rental income according to the terms of the individual leases. For ~~deferred~~unearned ~~rents~~rent, ~~due~~the toCompany ~~COVID-19~~records ora ~~similar~~current ~~event,~~liability ~~the~~for ~~Company~~any ~~recognizes~~amounts ~~the~~received ~~deferred~~but ~~rent~~not ~~related~~yet toearned. ~~the~~The ~~month~~opening itbalance ~~applies~~of ~~and~~unearned ~~records~~rent awas ~~rent~~approximately ~~receivable~~$39,500 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 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(2) Summary of Significant Accounting Policies – (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 Company tests real estate 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, 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 Company 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 Company 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 Company 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 Company does not represent a strategic shift that will have a major effect on the Company’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations.

The Company 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 Company's percentage share of the properties land, building, intangible assets, liabilities, revenues and expenses.

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

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

The ~~Company’s~~disposition 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 Company to investigate and remediate the effects of ~~the~~a ~~release~~property or ~~disposal~~classification of ~~hazardous~~a ~~materials at these locations if found. For each~~ property, anas ~~environmental~~Real ~~assessment~~Estate isHeld ~~completed~~for ~~prior~~Sale toby ~~acquisition. In addition,~~ the ~~lease~~Company ~~agreements~~does ~~typically~~not ~~strictly~~represent ~~prohibit~~a ~~the~~strategic ~~production,~~shift ~~handling,~~that orwill ~~storage~~have ofa ~~hazardous~~major ~~materials~~effect ~~(except~~on ~~where incidental to~~ the ~~tenant~~Company’s ~~business~~operations ~~such as use of cleaning supplies) in violation of applicable law to restrict environmental~~ and ~~other~~financial ~~damage~~results. ~~Environmental~~Therefore, ~~liabilities are recorded when it is determined~~ the ~~liability~~results isfrom ~~probable~~operating and selling the ~~costs~~property ~~can~~are ~~reasonably~~included bein ~~estimated.~~continuing ~~There were no environmental issues noted or liabilities recorded at December 31, 2023 and 2022~~operations.

The Company 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 Company's percentage share of the properties land, building, intangible assets, liabilities, revenues and expenses.

The Company’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 Company 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, 2024 and 2023.

Fair Value Measurements

Fair value, as defined by US GAAP, is the 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 utilization of the 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. Level 2 inputs are market data, other than Level 1 inputs, that are observable either directly or indirectly. 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.

At December 31, ~~2022~~2024 the Company had no financial assets or liabilities measured at fair value on a recurring basis or nonrecurring basis. ~~The Company had the following nonfinancial assets measured on a nonrecurring basis that were recorded at fair value during 2023.~~

The Premier Diagnostic Imaging Center in Terre Haute, Indiana with a carrying amount of $1,491,977 at June 30, 2023, was written down to its estimated fair value of $1,405,355 after completing the long-lived asset valuation analysis. The resulting impairment charge of $90,000 was included in earnings for the second quarter of 2023, which reduced the carrying value to $1,401,977. At December 31, 2023, the carrying value was written down to its estimated fair value of $405,977 after completing the long-lived asset valuation analysis. The resulting impairment charge of $996,000 was included in earnings for the fourth quarter of 2023, which reduced the carrying value to $405,977. The fair value of the property was based upon a signed purchase agreement, which is considered a Level 2 input in the valuation hierarchy.

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

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

At December 31, 2023, the Company had one property measured on a nonrecurring basis that was recorded at fair value during 2023. The fair value of the Premier Diagnostic Imaging Center in Terre Haute, Indiana was based upon a signed purchase agreement, which is considered a Level 2 input in the valuation hierarchy. The property in Terre Haute, Indiana was sold on January 2, 2024; see Note 4 for further discussion of valuation and disposal of property.

Income (Loss) Per Unit

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

Reportable Segments

The Company 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 Company evaluates operating performance on an overall portfolio basis. Therefore, the Company’s properties are classified as one reportable segment.

Recently Adopted Accounting Pronouncements

~~Effective~~In ~~January~~November 1, 2023, the ~~Company adopted the~~ Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No2023-07: Improvements to Reportable Segment Disclosures. ~~2016-13~~This ASU, ~~Financial~~which ~~Instruments~~amends –Topic ~~Credit~~280: ~~Losses~~Segment ~~(Topic~~Reporting, ~~326).~~improves ~~This~~disclosure ~~guidance~~requirements ~~changes~~for ~~the~~reportable ~~methodology~~segments toand beenhances ~~used~~disclosures tofor ~~measure~~companies ~~credit~~with ~~losses~~single ~~for~~reportable ~~certain~~segments. ~~financial~~The ~~instruments~~Company has a single reportable segment based on the nature of its services and ~~financial~~regulatory ~~assets,~~environment ~~including~~in ~~receivables~~which it operates. The ~~new~~nature ~~methodology~~of ~~requires~~the business and the ~~recognition~~accounting policies of anthe ~~allowance~~segment ~~that~~are ~~reflects~~ the ~~current~~same ~~estimate~~as ofdescribed ~~credit~~throughout ~~losses~~Notes ~~expected~~1 toand be2. ~~incurred~~The ~~over~~Company’s ~~the~~Chief ~~life~~Operating ofDecision Maker is the ~~financial~~Managing ~~assets~~Members. The ~~adoption~~Company ofadopted the ~~guidance~~standard as of January 1, 2024. The adoption did not have a material impact on the Company'’s financial statements.

Other accounting standards that have been issued or proposed by the FASB 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.

(3) Related Party Transactions –

The Company 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 (60% – AEI Income & Growth Fund XXI Limited Partnership);, Advance Auto Parts store in Indianapolis, Indiana (35% – AEI Income & Growth Fund XXII Limited Partnership), Talecris Plasma Facility in Dallas, Texas (50% – AEI Income & Growth Fund XXII Limited Partnership), and University of Iowa Health Facility in Riverside, Iowa (30% - AEI Healthcare Fund LLC).

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(3) Related Party Transactions – (Continued)

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

		2023		2022
		2024		2023
AEI is reimbursed for costs incurred in providing services related to managing the Company’s operations and properties, maintaining the Company’s books, and communicating with the Limited Members.	$	~~297~~239,~~779~~899	$	~~267~~297,~~330~~779
AEI is reimbursed for all direct expenses it paid on the Company’s behalf to third parties related to Company 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.	$	~~213~~95,~~804~~523	$	~~197~~213,~~260~~804
AEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of property on behalf of the Company.	$	~~1,809~~0	$	21,~~919~~809
AEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Company.	$	38,~~106~~039	$	53,~~218~~106

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.

(4) Real Estate Investments –

The Company 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 Company 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 7.8.1 to 20 years. The leases provide the tenants with one to five five-year renewal options subject to the same terms and conditions as the primary term, except for the Talecris Plasma Facility in Dallas, Texas which has one ten-year renewal option.

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(4) Real Estate Investments – (Continued)

The Company’s properties are commercial, single-tenant buildings. The Jared Jewelry store in Auburn Hills, Michigan was constructed in 1999 and acquired in 2005. The Jared Jewelry store in Concord, New Hampshire was constructed and acquired in 2005. The Jared Jewelry store in Aurora, Illinois was constructed in 2000 and acquired in 2005. The ~~building in Wichita, Kansas was constructed in 1996, renovated in 2001 and acquired in 2005. The~~ Advance Auto Parts store in Indianapolis, Indiana was constructed in 2005 and acquired in 2006. The Piedmont Health (Fka Coliseum Health) in Macon, Georgia was constructed ~~and acquired~~ in 2012 and acquired in 2022. The PetSmart store in Gonzales, Louisiana was constructed ~~and acquired~~ in 2013 and acquired in 2020. The Premier Diagnostic Imaging in Terre Haute, Indiana was constructed in 2005, renovated in 2012 and acquired in 2014. The Tractor Supply Company store in Canton, Mississippi was constructed in 2013 and acquired in 2018. The Talecris Plasma Facility in Dallas, Texas was constructed in 2008 and acquired in 2020. The University of Iowa Health Facility in Riverside, Iowa was constructed in 2010 and acquired in 2023.

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	$	421,489	$	1,777,578	$	2,199,067	$	1,~~348~~419,~~001~~104
Jared Jewelry, Concord, NH		1,061,663		3,095,971		4,157,634		2,~~239~~363,~~429~~268
Jared Jewelry, Aurora, IL		1,790,636		2,027,709		3,818,345		1,~~463~~544,~~322~~431
Advance Auto Parts, Indianapolis, IN		289,661		380,315		669,976		~~259~~274,~~248~~460
Piedmont Health, Macon, GA		412,795		1,269,639		1,682,434		~~245~~295,~~121~~906
PetSmart, Gonzales, LA		419,587		2,149,142		2,568,729		~~735~~821,~~811~~776
Tractor Supply, Canton, MS		648,841		2,099,841		2,748,682		~~426~~510,~~977~~970
Talecris Plasma Facility, Dallas, TX		585,424		1,707,997		2,293,421		~~233~~301,~~427~~747
University of Iowa Health, Riverside, IA		238,694		812,836		1,051,530		1346,~~547~~061
	$	5,868,790	$	15,321,028	$	21,189,818	$	67,~~964~~577,~~883~~723

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Company recognized depreciation expense of $~~630~~612,~~836~~840 and $~~691~~630,~~811~~836, respectively.

On ~~November~~August 13, ~~2022~~2023, the Company purchased ana ~~additional 50~~30% interest in the ~~Piedmont~~University ~~Health~~of ~~(Fka~~Iowa ~~Coliseum~~ Health) ~~property~~ in ~~Macon~~Riverside, ~~Georgia~~Iowa for $1,~~052~~193,~~919~~470 from AEI ~~Income~~Property &Corporation ~~Growth Fund 24 LLC~~ (“~~Fund 24~~APC”), an affiliate of the Company. The purchase price of the property ~~interest~~ was based upon the property’s fair market value as determined by an independent, third- party, commercial property appraiser. The ~~property~~Company ~~interest~~allocated ~~became~~$141,940 ~~available~~of ~~because~~the ~~Fund~~purchase 24price ~~was~~to inAcquired ~~the~~Intangible ~~process~~Lease ofAssets, ~~liquidating~~representing ~~its~~in-place ~~property~~lease ~~portfolio~~intangibles. The ~~Company~~property ~~now~~is ~~owns~~leased ~~100%~~to Board of ~~the~~Regents, ~~Piedmont~~State ~~Health~~of ~~property.~~Iowa ~~The~~under ~~Company~~a ~~allocated~~lease ~~$22,002~~agreement ofwith ~~the~~a ~~purchase~~remaining ~~price~~primary toterm ~~Acquired~~of ~~Intangible~~approximately ~~Lease~~10 ~~Assets,~~years ~~representing~~(as ~~in-place~~of ~~lease~~date ~~intangibles.~~of ~~The~~purchase) and annual rent ~~for~~of ~~the~~$73,215 ~~additional~~scheduled ~~50%~~to ~~interest~~increase ~~that~~annually ~~was~~at ~~purchased is $84,474~~2.5%.

AEI INCOME & GROWTH FUND 25 LLC

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
In-Place Lease Intangibles (weighted average life of 39 and 27 months, respectively)	$	1,237,805	$	773,942	$	1,362,594	$	962,705
In-Place Lease Intangibles (weighted average life of 32 and 39 months, respectively)	$	1,237,805	$	863,771	$	1,237,805	$	773,942
Above-Market Lease Intangibles (weighted average life of 33 and 43 months, respectively)		940,251		655,900		940,251		575,637
Above-Market Lease Intangibles (weighted average life of 25 and 33 months, respectively)		940,251		722,260		940,251		655,900
Acquired Intangible Lease Assets	$	2,178,056	$	1,~~429~~586,~~842~~031	$	2,~~302~~178,~~845~~056	$	1,~~538~~429,~~342~~842
Acquired Below-Market Lease Intangibles (weighted average life of 0 and 0 months, respectively)	$	0	$	0	$	~~104,746~~0	$	~~104,746~~0

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the value of in-place lease intangibles amortized to expense was $~~101~~89,~~934~~829 and $~~146~~101,~~969~~934, ~~the~~respectively. The decrease to rental income for above-market leases was $8066,~~263~~360 and $9880,~~180~~263, ~~and~~respectively. ~~the~~There was no increase to rental income for below-market leases ~~was~~in $02024 and ~~$5,629, respectively~~2023.

For lease intangibles not held for sale at December 31, ~~2023~~2024, the estimated amortization for the next five years is as follows:

	Amortization Expense for In-Place Lease Intangibles		Decrease to Rental Income for Above-Market Leases		Increase to Rental Income for Below-Market Leases
2024	$	89,829	$	66,360	$	0
2025	$	84,081	$	62,277	$	0
2025		84,081		62,277		0
2026		84,081		62,277		0
2027		84,081		62,277		0
2028		54,704		31,160		0
	$	396,776	$	284,351	$	0
2029		18,651		0		0
	$	325,598	$	217,991	$	0

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(4) Real Estate Investments – (Continued)

~~The~~ In June 2023, the Company ~~owned~~entered ainto ~~60%~~an ~~interest~~agreement inwith athe ~~former~~tenant ~~Sports~~of ~~Authority~~the ~~store~~Piedmont inHealth ~~Wichita,~~facility ~~Kansas.~~(Fka OnColiseum ~~March 2,~~Health) ~~2016~~in Macon, Georgia to extend the ~~tenant,~~lease ~~TSA~~term ~~Stores,~~87 ~~Inc.,~~months ~~and~~commencing ~~its~~on ~~parent~~April ~~company~~1, ~~The~~2024 ~~Sports~~and ~~Authority~~expiring on June 30, ~~Inc~~2031., As an inducement for the ~~guarantor~~Tenant’s extension of the lease term, ~~filed~~fixed ~~for~~rent ~~Chapter~~was 11abated ~~bankruptcy~~for ~~reorganization.~~the Infirst ~~June~~three ~~2016,~~months of the ~~tenant~~new ~~filed~~lease aterm. ~~motion~~As ~~with~~part of the ~~bankruptcy~~agreement, ~~court~~the toannual ~~reject~~rent ~~the~~decreased ~~lease~~from ~~for~~$168,948 ~~this~~to ~~store~~$167,375 effective ~~June 30,~~July ~~2016~~1, at2024. ~~which~~The ~~time~~Company ~~the~~also ~~tenant~~agreed ~~returned~~to ~~possession~~pay ofa ~~the~~commission ~~property~~ to the ~~owners.~~Tenant’s Onreal ~~March 23,~~estate ~~2021,~~broker in the ~~owners~~amount ~~listed~~of 2% of the ~~property~~Fixed ~~for~~Rent ~~lease~~to ~~with~~be apaid ~~real~~during ~~estate~~the ~~broker~~period infrom ~~the~~April ~~Wichita~~1, ~~area.~~2024, ~~While~~to June 30, 2031, which is the ~~property~~amount ~~was~~of ~~vacant~~$23,968. ~~the~~The ~~Company~~commission ~~was~~is ~~responsible~~recorded ~~for~~within ~~its~~acquired ~~60%~~intangible ~~share~~lease ofassets ~~real~~on ~~estate~~the ~~taxes~~balance sheet and ~~other~~will ~~costs~~be ~~associated~~amortized ~~with~~on ~~maintaining~~a straight-line basis over the ~~property~~lease term.

OnThe ~~September~~Company 21owned a 100% interest in a Premier Diagnostic Imaging Center in Terre Haute, ~~2017~~Indiana. In June 2023, the Company ~~entered~~performed ~~into~~ a ~~lease~~long-lived ~~agreement~~asset ~~with~~valuation aanalysis ~~primary~~and ~~term~~determined ofthe ~~10 years~~Premier ~~with~~Diagnostic ~~Biomat~~Imaging ~~USA~~Center in Terre Haute, ~~Inc.~~Indiana ~~(“Biomat”)~~was asimpaired. As a ~~replacement~~result, ~~tenant~~in ~~for~~the ~~28%~~second quarter of 2023, the ~~square~~Company ~~footage~~recognized real estate impairment of $90,000 to decrease the ~~property~~carrying value to the estimated fair value of $1,401,977. The ~~tenant~~charge ~~operates~~was arecorded ~~Biomat~~against ~~USA~~the ~~Plasma~~land, ~~Center~~building, in-place ~~the~~lease ~~space~~and above market lease. ~~The~~In December 2023, the Company’s ~~60%~~performed ~~share~~another oflong-lived ~~annual~~asset ~~rent~~valuation analysis and determined the Premier Diagnostic Imaging Center in Terre Haute, ~~which~~Indiana ~~commenced~~was onfurther ~~June 18~~impaired. As a result, ~~2018~~in the fourth quarter of 2023, isthe Company recognized real estate impairment of $55996,~~607.~~000 ~~Biomat~~to ~~agreed~~decrease tothe ~~pay~~carrying ~~for~~value to the ~~costs~~estimated tofair ~~divide~~value of $405,977. The charge was recorded against the land, building, in-place lease and above market lease. In November 2023, the Company entered into ~~two~~an ~~separate~~agreement ~~spaces~~to sell its 100% interest in the Premier Diagnostic Imaging Center in Terre Haute, Indiana. Consequently, this property was classified as Real Estate Held for Sale on the ~~costs~~balance sheet as of ~~tenant~~December ~~improvements~~31, to2023 ~~remodel~~with a carrying value of $405,977. On January 2, 2024, the ~~Biomat~~sale ~~space~~closed ~~and~~with ~~28%~~the Company receiving net proceeds of $406,688, which resulted in a net gain of $711. At the ~~cost~~time toof ~~replace~~sale, the ~~roof~~cost and related accumulated depreciation was $1,248,000 and $842,023, respectively.

InOn ~~September~~August ~~2022~~3, 2023 the Company ~~entered~~purchased ~~into~~a an30% ~~agreement~~interest toin ~~sell~~the ~~its~~University ~~60%~~of ~~interest~~Iowa Health in ~~Biomat~~Riverside, inIowa ~~Wichita~~for $1,193,470 ~~Kansas~~from toAEI Property Corporation (“APC”), an ~~unrelated~~affiliate ~~third~~of ~~party~~the Company. The ~~whole~~purchase price of the property was ~~classified~~based asupon ~~real~~the ~~estate~~property’s ~~held~~fair ~~for~~market ~~sale~~value atas ~~December~~determined 31by an independent third party, ~~2022~~commercial property appraiser. OnThe ~~February~~Company 9,allocated ~~2023~~$141,940 of the ~~sale~~purchase ~~closed~~price ~~with~~to ~~the~~Acquired ~~Company~~Intangible ~~receiving~~Lease ~~net~~Assets, ~~proceeds~~representing in-place lease intangibles. The property is leased to Board of $1Regents,~~418,133,~~ ~~which~~State ~~resulted~~of inIowa under a ~~net~~lease ~~gain~~agreement with a remaining primary term of ~~$44,186.~~approximately At10 ~~the~~years ~~time~~(as of ~~sale,~~date ~~the~~of ~~cost~~purchase) and ~~related~~annual ~~accumulated~~rent ~~depreciation~~of ~~was~~ $273,~~839,297~~215 ~~and~~scheduled ~~$1,465,350,~~to ~~respectively~~increase annually at 2.5%.

In June 2023, the Company entered into an agreement with the tenant of the Piedmont Health store (Fka Coliseum Health) in Macon, Georgia to extend the lease term 87 months commencing on April 1, 2024 and expiring on June 30, 2031. As an inducement for the Tenant’s extension of the lease term, fixed rent will be abated for the first three months of the new lease term. As part of the agreement, the annual rent decreased from $168,948 to $167,375 effective July 1, 2024. The Company also agrees to pay a commission to the Tenant’s real estate broker in the amount of 2% of the Fixed Rent to be paid during the period from April 1, 2024, to June 30, 2031, which is the amount of $23,968. The commission is recorded within acquired intangible assets on the balance sheet and will be amortized over the lease term.

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(4) Real Estate Investments – (Continued)

~~The~~For ~~Company~~properties ~~owns~~owned aas ~~100%~~of ~~interest in a Premier Diagnostic Imaging Center in Terre Haute, Indiana. On~~December ~~May~~ 31, ~~2022~~2024, the ~~lease~~minimum ~~term~~future ended, and the tenant returned possession of the property to the owners. While the property is vacant, the Company is responsible for its 100% share of real estate taxes and other costs associated with maintaining the property. The property was listed with Ten-X for auction on November 13, 2023. The annual rent ~~from~~payments ~~this~~required ~~property~~by ~~represented approximately 12% of~~ the ~~total~~leases ~~annual~~are ~~rent~~as of the Company’s property portfolio. The loss of rent and increased expenses related to this property decreased the Company’s cash flow. However, at this time, the Company does not anticipate the need to reduce its regular quarterly cash distribution.follows:

In June 2023, the Company performed a long-lived asset valuation analysis and determined the Premier Diagnostic Imaging Center in Terre Haute, Indiana was impaired. As a result, in the second quarter of 2023, the Company recognized real estate impairment of $90,000 to decrease the carrying value to the estimated fair value of $1,401,977. The charge was recorded against the land, building, in-place lease and above market lease. In December 2023, the Company performed another long-lived asset valuation analysis and determined the Premier Diagnostic Imaging Center in Terre Haute, Indiana was impaired. As a result, in the fourth quarter of 2023, the Company recognized real estate impairment of $996,000 to decrease the carrying value to the estimated fair value of $405,977. 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 December 31, 2023 with a carrying value of $405,977. In November 2023, the Company entered into an agreement to sell its 100% interest in the Premier Diagnostic Imaging Center in Terre Haute, Indiana. On January 2, 2024, the sale closed with the Company receiving net proceeds of $406,432, which resulted in a net gain of $455. At the time of sale, the cost and related accumulated depreciation was $1,248,000 and $842,023, respectively.


2025	$	1,788,671
2026		1,452,870
2027		1,433,007
2028		988,021
2029		714,008
Thereafter		809,051
	$	7,185,628

There Inwere ~~November~~no ~~2023,~~contingent ~~the~~rents ~~Company~~recognized ~~entered into an agreement with the tenant of Jared Jewelry~~ in ~~Auburn~~2024 ~~Hills, Michigan to extend the lease term 5 years commencing on January 1, 2025~~ and ~~expiring on December 31, 2029~~2023. ~~As part of the agreement, the annual rent stays flat at $158,340.~~

~~For~~ ~~properties~~(5) Major ~~owned~~Tenants as– ~~of December 31, 2023, the minimum future rent payments required by the leases are as follows:~~

2024	$	1,728,282
2025		1,597,877
2026		1,159,710
2027		1,136,670
2028		691,683
Thereafter		2,805,371
	$	9,119,593

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

There were no contingent rents recognized in 2023 and 2022.

Tenants	Industry		2024		2023

Sterling Jewelers Inc.		$	775,654	$	775,654
PetSmart LLC			258,336		255,699
Talecris Plasma Resources, Inc.			186,086		180,059
Tractor Supply Company			200,568		191,401
Aggregate rental income of major tenants		$	1,420,644	$	1,402,813
Aggregate rental income of major tenants as a percentage of total rental income			85%		86%

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(5) Major Tenants –

Tenants	Industry		2023		2022
Sterling Jewelers Inc.	Retail	$	775,654	$	775,654
PetSmart LLC	Retail		255,699		226,639
Talecris Plasma Resources, Inc.	Medical		180,059		174,208
Tractor Supply Company	Retail		191,401		178,568
Aggregate rental income of major tenants		$	1,402,813	$	1,355,069
Aggregate rental income of major tenants as a percentage of total rental income			86%		83%

(6) Members’ Equity –

For the years ended December 31, ~~2023~~2024 and ~~2022~~2023, the Company declared distributions of $1,~~136~~114,~~906~~022 and $1,~~144~~136,~~725~~906, respectively. The Limited Members ~~received~~were allocated distributions of $1,~~102~~080,~~799~~601 and $1,~~110~~102,~~383~~799 and the Managing Members ~~received~~were allocated distributions of $3433,~~107~~421 and $34,~~342~~107 for the years ended December 31, ~~2023~~2024 and ~~2022~~2023, respectively. The Limited Members' declared distributions represented $2829.9318 and $28.5093 per LLC Unit outstanding using 3837,~~126~~029 Units in ~~2023~~2024 and 38,~~962~~126 Units in ~~2022~~2023, respectively. The declared distributions represented $015.37 and $~~20.46~~0 per Unit of Net Income and $2813.9381 and $828.0493 per Unit of return of contributed capital in ~~2023~~2024 and ~~2022~~2023, respectively.

During ~~2023~~2024, the Company repurchased a total of ~~1,803~~171.4294 Units for $192,~~016,467~~970 from 598 Limited Members in accordance with the Operating Agreement. The Company acquired these Units using Net Cash Flow from operations. During ~~2022~~2023, the Company ~~did~~repurchased ~~not~~a ~~repurchase~~total ~~any~~of 1,803.42 Units for $1,016,467 from ~~the~~59 Limited Members in accordance with the Operating Agreement. The Company acquired these Units using ~~Net~~net ~~Cash~~sales ~~Flow from operations~~proceeds. The repurchases increase the remaining Limited Members’ ownership interest in the Company. As a result of these repurchases and pursuant to the Operating Agreement, the Managing Members received distributions of $939 and $19,490 in 2024 and 2023, respectively.

AEI INCOME & GROWTH FUND 25 LLC

NOTES TO FINANCIAL STATEMENTS

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

(7) Income Taxes –

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

		2023		2022
		2024		2023
Net Income (Loss) for Financial Reporting Purposes	$	~~(594~~669,~~847)~~471	$	~~866~~(594,~~110~~847)
Depreciation for Tax Purposes Under Depreciation and Amortization for Financial Reporting Purposes		~~234~~280,~~477~~932		~~344~~234,~~634~~477
Income Accrued for Tax Purposes Over (Under) Income for Financial Reporting Purposes		28(37,~~575~~887)		428,~~118~~575
Gain (Loss) on Sale of Real Estate for Tax Purposes Compared to Loss for Financial Reporting Purposes		~~117~~(1,~~152~~475,089)		~~(371~~117,~~331)~~152
Taxable Income (Loss) to Members	$	(~~214~~562,~~643~~573)	$	~~843~~(214,~~531~~643)

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

		2023		2022
		2024		2023
Members’ Equity for Financial Reporting Purposes	$	15,~~948~~409,~~449~~989	$	1815,~~716~~948,~~159~~449
Adjusted Tax Basis of Investments in Real Estate Over Net Investments in Real Estate for Financial Reporting Purposes		43,~~865~~671,~~988~~839		4,~~514~~865,~~359~~988
Income Accrued for Tax Purposes Over Income for Financial Reporting Purposes		8244,~~052~~163		3982,~~543~~052
Syndication Costs Treated as Reduction of Capital For Financial Reporting Purposes		6,015,670		6,015,670
Members’ Equity for Tax Reporting Purposes	$	2625,~~912~~141,~~159~~661	$	2926,~~285~~912,~~731~~159

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 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) Internal Control Over Financial Reporting.

(i) Management’s Report on Internal Control Over Financial Reporting. The Managing Member, 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~~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 Company; (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 Company are being made only in accordance with authorizations of management of the Managing Member; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Management of the Managing Member performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, ~~2023~~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 Member determined that our internal control over financial reporting was effective as of December 31, ~~2023~~2024 based on the criteria in Internal Control-Integrated Framework (2013) issued by the COSO.

ITEM 9A. CONTROLS AND PROCEDURES. (Continued)

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.

(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 liability company and has no officers, directors, or direct employees. The Managing Members manage and control the Company’s affairs and have general responsibility and the ultimate authority in all matters affecting the Company’s business. The Managing Members are AEI Fund Management XXI, Inc. (“AFM”), the Managing Member, and Robert P. Johnson, the previous Chief Executive Officer and sole director of AFM, 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 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 Company. The director and officers of AFM are as follows:

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

(Continued)

Robert P. Johnson, deceased, was the previous 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.

Marni J. Nygard, Esq., age 4950, is President of AFM and has held this position since July 11, 2019, when she assumed the role from Mr. Johnson. Ms. Nygard continues as Chief Investment Officer for AEI and is a General Securities Principal of AEI Securities, Inc. She joined AEI in 2005 and is responsible for the implementation of AEI’s acquisition investment objectives and strategies. As President, she drives corporate initiatives for the development, analysis, marketing and management of AEI public and private Funds investing in net leased commercial properties. Prior to joining AEI, she was employed as an attorney at CI Title in St. Paul, Minnesota in the residential and commercial property departments.

Kevin S. Steele, age 6061, is Chief Operating Officer and has held this position since August 1, 2020. He joined AEI in 2012 and is responsible for AEI’s net lease commercial property acquisition strategy and sourcing through the development of business relationships with preferred corporate developers, tenant corporations, and net lease property owners. Kevin is responsible for leading the execution of the organizational strategy established by the leadership team. Kevin has more than 30 years of sales, marketing, and corporate business operations experience. Prior to joining AEI, he was employed with Sheraton Hotels and Stan Johnson Company as well as the owner and operator of a Midwest grocery company.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

(Continued)

Keith E. Petersen, CPA (inactive), age 49, is Chief Financial Officer, Treasurer and Secretary of AFM and has held these positions since February 1, 2020, when he assumed these roles from Mr. Keene. 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. 42

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, when he assumed these roles from Mr. Keene. 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 Managing Member of the Company, and any beneficial owner of more than 10% of a class of equity securities of the Company, are required to report their ownership of the Company'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 Company 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 Managing Member, all officers, directors and 10% owners filed all reports on a timely basis in the ~~2023~~2024 fiscal year.

ITEM 11. EXECUTIVE COMPENSATION.

The Managing Member 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 Company to beneficially own 5% or more of the Units, by each Managing Member, and by each officer or director of the Managing Member 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

The Managing Members know of no holders of more than 5% of the outstanding Units.

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 Managing Member of the registrant are governed by, and are conducted in conformity with, the limitations set forth in the Operating 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 Member of the registrant, has a board of directors consisting of any members who are “independent.” The sole director of the Managing Member, Robert P. Johnson, was the previous Chief Executive Officer, and indirectly the principal owner, of the Managing Member. Accordingly, there is no disinterested board, or other functioning body, that reviews related party transactions, or the transactions between the registrant and the Managing Members, except as performed in connection with the audit of its financial statements.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND

DIRECTOR INDEPENDENCE. (Continued)

The limitations included in the Operating Agreement require that the cumulative reimbursements to the Managing Members and their affiliates for certain expenses will not exceed an amount equal to the sum of (i) 20% of capital contributions, (ii) 1% of gross revenues, plus an initial leasing fee of 3% of gross revenues for the first five years of the original term of each lease, (iii) 3% of Net Proceeds of Sale, and (iv) 10% of Net Cash Flow less the Net Cash Flow actually distributed to the Managing Members. 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~~2024, these cumulative reimbursements to the Managing Members 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 Managing Members or their Affiliates in connection with the operation of the Fund for the period from inception through December 31, ~~2023~~2024.

Person or Entity Receiving Compensation	Form and Method of Compensation	Amount Incurred From Inception (June 24, 2002) To December 31, ~~2023~~2024
AEI Securities, Inc.	Selling Commissions equal to 10% of proceeds, most of which were reallowed to Participating Dealers.		$	4,240,243
Managing Members and Affiliates	Reimbursement at Cost for other Organization and Offering Costs.		$	1,805,502
Managing Members and Affiliates	Reimbursement at Cost for all Acquisition Expenses.		$	1,086,225
Managing Members 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,~~282~~522,~~263~~162
Managing Members and Affiliates	Reimbursement at Cost for providing services related to the disposition of the Fund's properties.		$	~~569~~577,~~105~~144
Managing Members	3% of Net Cash Flow in any fiscal year.		$	1,~~123~~156,~~094~~515
Managing Members	1% of distributions of Net Proceeds of Sale until Limited Members have received an amount equal to (a) their Adjusted Capital Contributions, plus (b) an amount equal to 7% 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.		$	38,438

Managing Members

1% of distributions of Net Proceeds of Sale until Limited Members have received an amount equal to (a) their Adjusted Capital Contributions, plus (b) an amount equal to 7% 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.

39,377

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

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

Fee Category		~~2023~~2024		~~2022~~2023
Audit Fees	$	2623,~~615~~000	$	2526,~~950~~615
Audit-Related Fees		0		0
Tax Fees		0		0
All Other Fees		0		0
Total Fees	$	2623,~~615~~000	$	2526,~~950~~615

Audit Fees - Consists of fees billed for professional services rendered for the audit of the Company’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.

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 Company to render audit or non-audit services, the engagement is approved by Mrs. Johnson acting as the Company’s audit committee.

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PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) (1) A list of the financial statements contained herein is set forth on page 18.

(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 Liability Company (incorporated by reference to Exhibit 3.1 of the registrant's Registration Statement on Form SB-2 filed on September 17, 2002 [File No. 333-99677]).

3.2

Operating Agreement to the Prospectus (incorporated by reference to Exhibit A of the registrant's Registration Statement on Form SB-2 filed on April 14, 2003 [File No. 333-99677]).

10.1

Assignment and Assumption of Lease dated January 14, 2005 between the Company, AEI Income & Growth Fund XXI Limited Partnership and LMB Auburn Hills I LLC relating to the Property at 3960 Baldwin Road, Auburn Hills, Michigan (incorporated by reference to Exhibit 10.18 of Form 10-KSB filed March 30, 2005).

10.2

Assignment and Assumption of Lease and Guaranty dated November 22, 2005 between the Company and Lafayette Village, LLC relating to the Property at 1016 North Route 59, Aurora, Illinois (incorporated by reference to Exhibit 10.3 of Form 8-K filed December 22, 2005).

10.3

Assignment and Assumption of Lease dated December 1, 2005 between the Company and Loudon Road N.H. Rte. 9 Development, LLC relating to the Property at 297 Loudon Road, Concord, New Hampshire (incorporated by reference to Exhibit 10.2 of Form 8-K filed December 7, 2005).

10.4

Assignment and Assumption of Lease Agreement dated December 16, 2005 between the Company and Commercial Net Lease Realty, Inc. relating to the Property at 1016 North Route 59, Aurora, Illinois (incorporated by reference to Exhibit 10.4 of Form 8-K filed December 22, 2005).

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.

4748

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 25
	Limited Liability Company
	By:	AEI Fund Management XXI, Inc.
		Its Managing Member
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)

4849

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