AEI Income & Growth Fund 25 10-Q 10 Aug 22 2022 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 31, 2022
Document Information Line Items
Entity Registrant Name	AEI INCOME & GROWTH FUND 25 LLC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		38,961.72
Amendment Flag	false
Entity Central Index Key	0001185198
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Entity File Number	000-50609
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-3074973
Entity Address, Address Line One	30 East 7th Street, Suite 1300
Entity Address, City or Town	St. Paul
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55101
City Area Code	651
Local Phone Number	227-7333
Entity Information, Former Legal or Registered Name	Not Applicable
No Trading Symbol Flag	true
Security Exchange Name	NONE
Title of 12(g) Security	Limited Liability Company Units
Entity Interactive Data Current	Yes
Document Transition Report	false

Balance Sheet

Balance Sheet - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets:
Cash	$ 2,697,614	$ 656,658
Rent Receivable	0	11,227
Total Current Assets	2,697,614	667,885
Real Estate Investments:
Land	6,488,377	7,103,977
Buildings	17,475,760	18,874,469
Acquired Intangible Lease Assets	2,411,423	2,712,159
Real Estate Held for Investment, at cost	26,375,560	28,690,605
Accumulated Depreciation and Amortization	(9,545,612)	(9,941,100)
Real Estate Held for Investment, Net	16,829,948	18,749,505
Total Assets	19,527,562	19,417,390
Current Liabilities:
Payable to AEI Fund Management, Inc.	105,087	95,381
Distributions Payable	286,182	286,181
Unearned Rent	22,006	35,425
Total Current Liabilities	413,275	416,987
Long-Term Liabilities:
Acquired Below-Market Lease Intangibles, Net	0	5,629
Members’ Equity (Deficit):
Managing Members	4,865	(29,966)
Limited Members – 50,000 Units authorized; 38,961.72 Units issued and outstanding as of 6/30/2022 and 12/31/2021	19,109,422	19,024,740
Total Members’ Equity	19,114,287	18,994,774
Total Liabilities and Members’ Equity	$ 19,527,562	$ 19,417,390

Balance Sheet (Parentheticals)

Balance Sheet (Parentheticals) - Limited Partner [Member] - shares	Jun. 30, 2022	Dec. 31, 2021
Limited Members, units authorized	50,000	50,000
Limited Members, units issued	38,961.72	38,961.72
Limited Members, units outstanding	38,961.72	38,961.72

Statement of Operations

Statement of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Rental Income	$ 416,668	$ 435,184	$ 852,034	$ 870,033
Expenses:
LLC Administration – Affiliates	68,260	56,634	138,669	118,150
LLC Administration and Property Management – Unrelated Parties	59,483	59,297	111,112	108,034
Depreciation and Amortization	211,279	228,388	439,672	456,776
Total Expenses	339,022	344,319	689,453	682,960
Operating Income	77,646	90,865	162,581	187,073
Other Income:
Gain on Sale of Real Estate	528,892	0	528,892	0
Interest Income	258	106	403	221
Total Other Income	529,150	106	529,295	221
Net Income	606,796	90,971	691,876	187,294
Net Income Allocated:
Managing Members	49,451	2,729	52,003	5,619
Limited Members	557,345	88,242	639,873	181,675
Net Income	$ 606,796	$ 90,971	$ 691,876	$ 187,294
Net Income per LLC Unit (in Dollars per share)	$ 14.3	$ 2.26	$ 16.42	$ 4.66
Weighted Average Units Outstanding – Basic and Diluted (in Shares)	38,962	38,962	38,962	38,962

Statement of Cash Flows

Statement of Cash Flows - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities:
Net Income (Loss)	$ 606,796	$ 90,971	$ 691,876	$ 187,294
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization			483,134	499,108
Gain on Sale of Real Estate	(528,892)	0	(528,892)	0
(Increase) Decrease in Rent Receivable			11,227	56,135
Increase (Decrease) in Payable to AEI Fund Management, Inc.			9,706	22,378
Increase (Decrease) in Unearned Rent			(13,419)	(28,256)
Total Adjustments			(38,244)	549,365
Net Cash Provided By (Used For) Operating Activities			653,632	736,659
Cash Flows from Investing Activities:
Proceeds from Sale of Real Estate			1,959,687	0
Cash Flows from Financing Activities:
Distributions Paid to Members			(572,363)	(832,789)
Net Increase (Decrease) in Cash			2,040,956	(96,130)
Cash, beginning of period			656,658	703,002
Cash, end of period	$ 2,697,614	$ 606,872	$ 2,697,614	$ 606,872

Statement of Changes in Members

Statement of Changes in Members' Equity - USD ($)	General Partner [Member]	Limited Partner [Member]	Total
Balance at Dec. 31, 2020	$ 384	$ 20,006,034	$ 20,006,418
Balance (in Shares) at Dec. 31, 2020		38,961.72
Distributions Declared	(12,492)	$ (403,903)	(416,395)
Net Income	2,890	93,433	96,323
Balance at Mar. 31, 2021	(9,218)	$ 19,695,564	19,686,346
Balance (in Shares) at Mar. 31, 2021		38,961.72
Balance at Dec. 31, 2020	384	$ 20,006,034	20,006,418
Balance (in Shares) at Dec. 31, 2020		38,961.72
Distributions Declared	(24,983)	$ (807,806)	(832,789)
Net Income			187,294
Balance at Jun. 30, 2021	(18,980)	$ 19,379,903	19,360,923
Balance (in Shares) at Jun. 30, 2021		38,961.72
Balance at Mar. 31, 2021	(9,218)	$ 19,695,564	19,686,346
Balance (in Shares) at Mar. 31, 2021		38,961.72
Distributions Declared	(12,491)	$ (403,903)	(416,394)
Net Income	2,729	88,242	90,971
Balance at Jun. 30, 2021	(18,980)	$ 19,379,903	19,360,923
Balance (in Shares) at Jun. 30, 2021		38,961.72
Balance at Dec. 31, 2021	(29,966)	$ 19,024,740	18,994,774
Balance (in Shares) at Dec. 31, 2021		38,961.72
Distributions Declared	(8,586)	$ (277,595)	(286,181)
Net Income	2,552	82,528	85,080
Balance at Mar. 31, 2022	(36,000)	$ 18,829,673	18,793,673
Balance (in Shares) at Mar. 31, 2022		38,961.72
Balance at Dec. 31, 2021	(29,966)	$ 19,024,740	18,994,774
Balance (in Shares) at Dec. 31, 2021		38,961.72
Distributions Declared	(17,172)	$ (555,191)	(572,363)
Net Income			691,876
Balance at Jun. 30, 2022	4,865	$ 19,109,422	19,114,287
Balance (in Shares) at Jun. 30, 2022		38,961.72
Balance at Mar. 31, 2022	(36,000)	$ 18,829,673	18,793,673
Balance (in Shares) at Mar. 31, 2022		38,961.72
Distributions Declared	(8,586)	$ (277,596)	(286,182)
Net Income	49,451	557,345	606,796
Balance at Jun. 30, 2022	$ 4,865	$ 19,109,422	$ 19,114,287
Balance (in Shares) at Jun. 30, 2022		38,961.72

Basis of Accounting

Basis of Accounting	3 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Accounting [Text Block]	(1) The condensed statements included herein have been prepared by the registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of operations for the interim period, on a basis consistent with the annual audited statements. The adjustments made to these condensed statements consist only of normal recurring adjustments. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP) have been condensed or omitted pursuant to such rules and regulations, although the registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the summary of significant accounting policies and notes thereto included in the registrant’s latest annual report on Form 10K.

Organization

Organization	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	(2) Organization – AEI Income & Growth Fund 25 LLC (the “Company”), a Limited Liability Company, was formed on June 24, 2002 to acquire and lease commercial properties to operating tenants. The Company’s operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing Member. Robert P. Johnson, the previous Chief Executive Officer and sole director of AFM, served as the Special Managing Member until his withdrawal date effective March 31, 2020. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Robert P. Johnson Trust and Patricia Johnson own a majority interest. AEI Fund Management, Inc. (“AEI”), an affiliate of AFM, performs the administrative and operating functions for the Company.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	(3) Recently Issued Accounting Pronouncements – In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance. Other accounting standards that have been issued or proposed by the FASB are currently not applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows.

Real Estate Investments

Real Estate Investments	3 Months Ended
	Jun. 30, 2022
Real Estate [Abstract]
Real Estate Disclosure [Text Block]	(4) Real Estate Investments – The Company owns 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. As of December 31, 2020, the tenant owed $29,049 of past due rent, which was not recorded for financial reporting purposes. On March 23, 2021, a motion to dismiss the bankruptcy case was issued by a federal judge to The Sports Authority, Inc., the Company will therefore not be receiving any of the past due rent. 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. On August 27, 2019, the Company entered into a lease agreement with a primary term of 10 years with BigTime Fun Center, LLC as a replacement tenant for 57% of the square footage of the property. The tenant was to operate an indoor sports entertainment center in the space. The Company’s 60% share of annual rent, which was to commence on February 23, 2020, was $117,000. As part of the agreement, the Company would pay a tenant improvement allowance of $96,000 when certain conditions were met by the tenant. Due to ongoing difficulties due to the COVID-19 pandemic, the Company was negotiating a rent commencement date of April 1, 2021. As a part of the negotiations the tenant improvement allowance was to be replaced with a ten month rent abatement starting April 1, 2021. Additionally, this agreement would forebear rent and additional charges for the period from February 23, 2020 to March 31, 2021. In September 2019, the Company paid $49,140 to a real estate broker for its 60% share of the lease commission due as part of the lease transaction. This amount was capitalized and was to be amortized over the term of the lease. On January 22, 2021, the owner of Big Time Fun Center, LLC informed the Company it did not intend to open the Wichita property. As a result of the tenant informing the Company of their intention not to open, the full amount of the lease commission was amortized in the fourth quarter of 2020. The property is currently being marketed for lease with a real estate broker in the Wichita area. 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. 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 owners have listed the property for lease with a real estate broker in the Terre Haute area. The annual rent from this property represented approximately 12% of the total annual rent 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. 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.

Payable to AEI Fund Management,

Payable to AEI Fund Management, Inc.	3 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	(5) Payable to AEI Fund Management, Inc. – AEI Fund Management, Inc. performs the administrative and operating functions for the Company. The payable to AEI Fund Management represents the balance due for those services. This balance is non-interest bearing and unsecured and is to be paid in the normal course of business.

Members' Equity

Members' Equity	3 Months Ended
	Jun. 30, 2022
Disclosure Text Block Supplement [Abstract]
Members' Equity Notes Disclosure [Text Block]	(6) Members’ Equity – For the six months ended June 30, 2022 and 2021, the Company declared distributions of $572,363 and $832,789, respectively. The Limited Members were allocated distributions of $555,191 and $807,806 and the Managing Members were allocated distributions of $17,172 and $24,983 for the periods, respectively. The Limited Members’ distributions represented $14.25 and $20.73 per LLC Unit outstanding using 38,962 weighted average Units for both periods. The distributions represented $14.25 and $4.66 per Unit of Net Income and $0.00 and $16.07 per Unit of return of contributed capital in 2022 and 2021, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(7) Fair Value Measurements – At June 30, 2022 and December 31, 2021, the Company had no financial assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Details)	3 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Description	In April 2020, the Financial Accounting Standards Board (FASB) issued a question-and-answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of COVID-19. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant or if a lease concession was under the enforceable rights and obligations within the existing lease agreement. The Lease Modification Q&A clarifies that entities may elect to not evaluate whether lease-related relief that lessors provide to mitigate the economic effects of COVID-19 on lessees is a lease modification under current lease guidance. Instead, an entity that elects not to evaluate whether a concession directly related to COVID-19 is a modification can then elect whether to apply the modification guidance. Other accounting standards that have been issued or proposed by the FASB are currently not applicable to the Company or are not expected to have a significant impact on the Company’s financial position, results of operations and cash flows.

Real Estate Investments (Detail

Real Estate Investments (Details) - USD ($)				3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Aug. 27, 2019	Sep. 21, 2017	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Feb. 22, 2021	Sep. 01, 2020	Jun. 17, 2019
Real Estate Investments (Details) [Line Items]
Average Lease Term			September 21, 2017
Revenue from Contract with Customer, Excluding Assessed Tax										$ 55,607
Proceeds from Sale of Real Estate	$ 1,959,687
Gain (Loss) on Disposition of Assets	528,892			$ 528,892	$ 0	$ 528,892	$ 0
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Cost of Investment in Real Estate Sold	2,315,045
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation	$ 884,250			$ 884,250		$ 884,250
BigTime Fun Wichita KS
Real Estate Investments (Details) [Line Items]
Average Lease Term		On August 27, 2019, the Company entered into a lease agreement with a primary term of 10 years with BigTime Fun Center, LLC as a replacement tenant for 57% of the square footage of the property.
Revenue from Contract with Customer, Excluding Assessed Tax								$ 117,000
Payments for Tenant Improvements		$ 96,000
Payments for Lease Commissions									$ 49,140
Staples Clermont FL 'Member'
Real Estate Investments (Details) [Line Items]
Disposal Date	Jun. 30, 2022

Members' Equity (Details)

Members' Equity (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Members' Equity (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 286,182	$ 286,181	$ 416,394	$ 416,395	$ 572,363	$ 832,789
Limited Partner [Member]
Members' Equity (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 277,596	277,595	403,903	403,903	$ 555,191	$ 807,806
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 14.25					$ 20.73
Weighted Average Limited Partnership Units Outstanding, Basic					38,962	38,962
DistributionsPerUnitOfNetIncome					$ 14.25	$ 4.66
DistributionsPerUnitOfReturnOfCapital					$ 0	$ 16.07
General Partner [Member]
Members' Equity (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 8,586	$ 8,586	$ 12,491	$ 12,492	$ 17,172	$ 24,983