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 22, 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 22, 2005, the Company purchased a 60% interest
in a Gart Sports store in Wichita, Kansas for $3,300,000 from
Silver Capital Net Lease Fund I, LLC, an unrelated third party.
The property is leased to TSA Stores, Inc. under a Lease
Agreement with a remaining primary term of 11.2 years, which may
be renewed for up to three consecutive terms of five years. The
Lease requires annual base rent of $279,088, which will increase
every five years by ten percent. The Lease is a triple net lease
under which the lessee is responsible for all real estate taxes,
insurance, maintenance, repairs and operating expenses of the
property. The only exception is the Company is responsible for
repairs to the structural components of the building, except for
the roof, which is the lessee's responsibility. The remaining
interest in the property was purchased by AEI Fund Management
XVII, Inc., an affiliate of the Company.
The Company purchased the property with cash received from
the sale of LLC Units. The store was constructed in 1996 and
renovated in 2001 and is a 52,259 square foot building on
approximately 5.6 acres. The store is scheduled to be converted
into a Sports Authority store in the spring of 2006. The
freestanding retail store is located at 6959 East 21st Street
North, Wichita, Kansas.
TSA Stores, Inc. is a wholly owned subsidiary of The Sports
Authority, Inc. (TSA), which has guaranteed the lease. TSA,
headquartered in Englewood, Colorado, is one of the nation's
largest full-line sporting goods retailers offering a
comprehensive high-quality assortment of brand name sporting
apparel and equipment at competitive prices. As of October 29,
2005, TSA operated 397 stores in 45 states under The Sports
Authority, Gart Sports, Sportmart and Oshman's names. For the
fiscal year ended January 29, 2005, TSA reported a net worth of
approximately $485 million, net sales of approximately $2.4
billion and net income of approximately $33 million. TSA is
traded on the New York Stock Exchange under the symbol TSA.
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 $3,300,000 and its
Current Assets (cash) would have decreased by
$3,300,000.
Rental Income for the Company would have increased from
$693,973 to $973,061 for the period ended December 31,
2004 and from $1,095,429 to $1,304,745 for the nine
months ended September 30, 2005 if the Company had
owned the property during the periods.
Depreciation Expense would have increased by $105,600
and $79,200 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
$596,099 and from $719,304 to $849,420, which would
have resulted in Net Income of $37.25 and $22.10 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 of Agreement of Purchase and
Sale dated December 21, 2005 between the Company, AEI
Fund Management XVII, Inc. and AEI Fund Management,
Inc. relating to the Property at 6959 East 21st Street,
Wichita, Kansas.
Exhibit 10.2 - Assignment and Assumption of Lease and
Guaranty dated December 22, 2005 between the Company,
AEI Fund Management XVII, Inc. and Silver Capital Net
Lease Fund I, LLC relating to the Property at 6959 East
21st Street, Wichita, Kansas.
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 28, 2005 /s/ Patrick W Keene
By: Patrick W. Keene
Its: Chief Financial Officer