UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 16, 2005
AEI INCOME & GROWTH FUND 25 LLC
(Exact name of registrant as specified in its charter)
State of Delaware 000-50609 75-3074973
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
30 East 7th Street, Suite 1300, St. Paul, Minnesota, 55101
(Address of Principal Executive Offices)
(651) 227-7333
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
[ ] Written communication pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act
(17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act
(17 CFR 240.13e-4(c))
Section 2 - Financial Information
Item 2.01 Completion of Acquisition or Disposition of Assets.
On December 16, 2005, the Company completed the acquisition
of a Jared Jewelry store in Aurora, Illinois by purchasing the
building for $1,992,600 from Commercial Net Lease Realty, Inc.,
an unrelated third party. Previously, on November 21, 2005, the
Company purchased the land under the building for $2,200,000 from
Lafayette Village, LLC, an unrelated third party. The land and
building are leased to Sterling Inc. under Lease Agreements with
remaining primary terms of 14.4 years, which may be renewed for
up to four consecutive terms of five years. The Leases require
annual base rent of $306,352, which will increase every five
years by ten percent. The Leases are triple net leases under
which the lessee is responsible for all real estate taxes,
insurance, maintenance, repairs and operating expenses of the
property.
The Company purchased the property with cash received from
the sale of LLC Units. The store was constructed in 2000 and is
a 6,051 square foot building on approximately 2.07 acres. The
freestanding retail store is located at 1016 North Route 59,
Aurora, Illinois.
Sterling Inc. is a subsidiary of Sterling Jewelers Inc.
(Sterling), which has guaranteed the lease. Sterling is the
second largest specialty retailer of fine jewelry in the United
States with over 1,100 stores, under the names Kay Jewelers,
Jared, The Galleria of Jewelry and a number of regional names.
For the fiscal year ended January 31, 2005, Sterling reported a
net worth of approximately $1.3 billion, net sales of
approximately $2.1 billion and net income of approximately $137
million. Sterling is a wholly owned subsidiary of Signet US
Holdings, Inc., which in turn is wholly owned by Signet Group
plc, whose shares are listed on the London Stock Exchange and
whose American Depositary Shares are traded on the NASDAQ
National Market under the symbol SIG.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of businesses acquired - Because
the property acquired is subject to a net lease and
represents less than 20% of the total assets of the
Company as of December 31, 2004, no financial
statements are required.
(b) Pro forma financial information - A limited number of
pro forma adjustments are required to illustrate the
effects of the above transaction on the Company's
balance sheet and income statement. The following
narrative description is furnished in lieu of the pro
forma statements:
Assuming the Company had acquired the property on
January 1, 2004, the Company's Investments in Real
Estate would have increased by $4,192,600 and its
Current Assets (cash) would have decreased by
$4,192,600.
Rental Income for the Company would have increased from
$693,973 to $1,000,325 for the period ended December
31, 2004 and from $1,095,429 to $1,325,193 for the nine
months ended September 30, 2005 if the Company had
owned the property during the periods.
Depreciation Expense would have increased by $79,704
and $59,778 for the period ended December 31, 2004 and
the nine months ended September 30, 2005, respectively.
The net effect of these pro forma adjustments would
have caused Net Income to increase from $422,611 to
$649,259 and from $719,304 to $889,290, which would
have resulted in Net Income of $40.57 and $23.14 per
LLC Unit outstanding for the period ended December 31,
2004 and the nine months ended September 30, 2005,
respectively.
(c) Exhibits.
Exhibit 10.1 - Assignment and Assumption of Purchase
Agreement dated October 24, 2005 between the Company
and AEI Fund Management, Inc. relating to the Property
at 1016 North Route 59, Aurora, Illinois.
Exhibit 10.2 - Real Estate Purchase Contract dated
November 18, 2005 between the Company and Commercial
Net Lease Realty, Inc. relating to the Property at 1016
North Route 59, Aurora, Illinois.
Exhibit 10.3 - 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.
Exhibit 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
AEI INCOME & GROWTH FUND 25 LLC
By: AEI Fund Management XXI, Inc.
Its: Managing Member
Date: December 20, 2005 /s/ Patrick W Keene
By: Patrick W. Keene
Its: Chief Financial Officer