{"url_path":"/sec/xaeiu/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-27","source_url":"https://www.sec.gov/Archives/edgar/data/1023458/0001023458-26-000003-index.html","accession_number":"0001023458-26-000003","cik":"0001023458","ticker":"XAEIU","issuer_name":"AEI INCOME & GROWTH FUND XXII LTD PARTNERSHIP","edgar_url":"https://www.sec.gov/Archives/edgar/data/1023458/0001023458-26-000003-index.html","primary_entity_key":"0001023458","primary_entity_name":"AEI INCOME & GROWTH FUND XXII LTD PARTNERSHIP"},"word_count":5876,"has_tables":true,"body_markdown":"ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.\n\n \n\nSee accompanying index to financial statements.\n\n17\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\n \n\nINDEX TO FINANCIAL STATEMENTS\n\n \n\n \n\n \n\n \n\n18\n\n \n\n \nPage\n\n   \n\nReport of Independent Registered Public Accounting Firm (PCAOB ID 542)\n\n19-20\n\n   \n\nBalance Sheets as of December 31, 2025 and 2024\n\n21\n\n   \n\nStatements for the Years Ended December 31, 2025 and 2024:\n \n\n   \n\n \nIncome\n\n22\n\n     \n\n \nCash Flows\n\n23\n\n     \n\n \nChanges in Partners’ Capital\n\n24\n\n   \n\nNotes to Financial Statements\n\n25 – 38\n\n \n\n \n\n19\n\n \n\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo the Partners:\n\nAEI Income & Growth Fund XXII Limited Partnership\n\nSt. Paul, Minnesota\n\n \n\nOpinion on the Financial Statements\n\n \n\nWe have audited the accompanying balance sheets of AEI Income & Growth Fund XXII Limited Partnership (a Minnesota limited partnership) (the “Partnership”) as of December 31, 2025 and 2024, and the related statements of income, changes in partners' capital, and cash flows for each of the years in the two-year period ended December 31, 2025, 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 Partnership as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.\n\n \n\nBasis for Opinion\n\n \n\nThese financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on the Partnership’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 Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe 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 Partnership 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 Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur 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.\n\n \n\n20\n\n \n\nCritical Audit Matters\n\n \n\nCritical audit matters are matters arising from the current period audit of the financial statements\n\nthat were communicated or required to be communicated to the audit committee and that (1) relate\n\nto accounts or disclosures that are material to the financial statements and (2) involved our\n\nespecially challenging, subjective, or complex judgments. We determined that there were no\n\ncritical audit matters.\n\n   \n\n/s/ Boulay PLLP\n \n\n   \n\nWe have served as the Partnership’s auditor since 1996.\n\nMinneapolis, Minnesota\n \n\nMarch 27, 2026\n \n\n21\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nBALANCE SHEETS\n\n \n\nASSETS\n\n \n\n \n\n \n\nDecember 31,\n\n \n\nDecember 31,\n\n \n\n \n\n2025\n\n \n\n2024\n\nCurrent Assets:\n\n \n\n \n\n \n\n \n\nCash\n\n$\n\n472,903\n\n$\n\n914,846\n\nTotal Current Assets\n\n \n\n472,903\n\n \n\n914,846\n\n \n\n \n\n \n\n \n\n \n\nReal Estate Investments:\n\n \n\n \n\n \n\n \n\nLand\n\n \n\n1,215,151\n\n \n\n1,753,065\n\nBuildings\n\n \n\n3,777,826\n\n \n\n4,484,085\n\nAcquired Intangible Lease Assets\n\n \n\n804,382\n\n \n\n804,382\n\nReal Estate Held for Investment, at Cost\n\n \n\n5,797,359\n\n \n\n7,041,532\n\nAccumulated Depreciation and Amortization\n\n \n\n(1,090,037)\n\n \n\n(1,347,233)\n\nReal Estate Held for Investment, Net\n\n \n\n4,707,322\n\n \n\n5,694,299\n\nTotal Assets\n\n$\n\n5,180,225\n\n$\n\n6,609,145\n\n \n\nLIABILITIES AND PARTNERS' CAPITAL\n\n \n\nCurrent Liabilities:\n\n \n\n \n\n \n\n \n\nPayable to AEI Fund Management, Inc.\n\n$\n\n46,857\n\n$\n\n32,946\n\nUnearned Revenue\n\n \n\n34,816\n\n \n\n50,356\n\nDistributions Payable\n\n \n\n67,259\n\n \n\n69,220\n\nTotal Current Liabilities\n\n \n\n148,932\n\n \n\n152,522\n\n \n\n \n\n \n\n \n\n \n\nPartners’ Capital (Deficit):\n\n \n\n \n\n \n\n \n\nGeneral Partners\n\n \n\n1,657\n\n \n\n(13,646)\n\nLimited Partners – 24,000 Units authorized;\n\n   11,028.65 and 11,749.37 Units issued and outstanding\n\n   as of December 31, 2025 and 2024, respectively\n\n \n\n5,029,636\n\n \n\n6,470,269\n\nTotal Partners' Capital\n\n \n\n5,031,293\n\n \n\n6,456,623\n\nTotal Liabilities and Partners' Capital\n\n$\n\n5,180,225\n\n$\n\n6,609,145\n\n \n\n \n\n \n\n \n\n \n\nThe accompanying Notes to Financial Statements are an integral part of these statements.\n\n22\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nSTATEMENTS OF INCOME\n\n \n\n \n\n \n\n \n\nYears Ended December 31\n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\nRental Income\n\n$\n\n417,382\n\n$\n\n440,126\n\n \n\n \n\n \n\n \n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\nPartnership Administration – Affiliates\n\n \n\n74,820\n\n \n\n116,430\n\nPartnership Administration and Property\n\n   Management – Unrelated Parties\n\n \n\n84,398\n\n \n\n69,899\n\nDepreciation and Amortization\n\n \n\n235,745\n\n \n\n276,037\n\nTotal Expenses\n\n \n\n394,963\n\n \n\n462,366\n\n \n\n \n\n \n\n \n\n \n\nOperating Income (Loss)\n\n \n\n22,419\n\n \n\n(22,240)\n\n \n\n \n\n \n\n \n\n \n\nOther Income:\n\n \n\n \n\n \n\n \n\nGain on Sale of Real Estate\n\n \n\n200,237\n\n \n\n32,817\n\nInterest Income\n\n \n\n19,082\n\n \n\n5,944\n\nTotal Other Income\n\n \n\n219,319\n\n \n\n38,761\n\n \n\n \n\n \n\n \n\n \n\nNet Income\n\n$\n\n241,738\n\n$\n\n16,521\n\n \n\n \n\n \n\n \n\n \n\nNet Income Allocated:\n\n \n\n \n\n \n\n \n\nGeneral Partners\n\n$\n\n37,416\n\n$\n\n165\n\nLimited Partners\n\n \n\n204,322\n\n \n\n16,356\n\nTotal\n\n$\n\n241,738\n\n$\n\n16,521\n\n \n\n \n\n \n\n \n\n \n\nNet Income per Limited Partnership Unit\n\n$\n\n17.98\n\n$\n\n1.39\n\n \n\n \n\n \n\n \n\n \n\nWeighted Average Units Outstanding –\n\n      Basic and Diluted\n\n \n\n11,362\n\n \n\n11,749\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe accompanying Notes to Financial Statements are an integral part of these statements.\n\n23\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nSTATEMENTS OF CASH FLOWS\n\n \n\n \n\n \n\nYears Ended December 31\n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\nCash Flows from Operating Activities:\n\n \n\n \n\n \n\n \n\nNet Income\n\n$\n\n241,738\n\n$\n\n16,521\n\n \n\n \n\n \n\n \n\n \n\nAdjustments to Reconcile Net Income\n\nTo Net Cash Provided by Operating Activities:\n\n \n\n \n\n \n\n \n\nDepreciation and Amortization\n\n \n\n266,619\n\n \n\n306,913\n\nGain on Sale of Real Estate\n\n \n\n(200,237)\n\n \n\n(32,817)\n\nIncrease (Decrease) in Payable to\n\n   AEI Fund Management, Inc.\n\n \n\n13,912\n\n \n\n(34,376)\n\nIncrease (Decrease) in Unearned Rent\n\n \n\n(15,540)\n\n \n\n35,172\n\nTotal Adjustments\n\n \n\n64,754\n\n \n\n274,892\n\nNet Cash Provided By (Used For)\n\n   Operating Activities\n\n \n\n306,492\n\n \n\n291,413\n\n \n\n \n\n \n\n \n\n \n\nCash Flows from Investing Activities:\n\n \n\n \n\n \n\n \n\nProceeds from Sale of Real Estate\n\n \n\n920,594\n\n \n\n661,301\n\nNet Cash Provided By (Used For)\n\n   Investing Activities\n\n \n\n920,594\n\n \n\n661,301\n\n \n\n \n\n \n\n \n\n \n\nCash Flows from Financing Activities:\n\n \n\n \n\n \n\n \n\nDistributions Paid to Partners\n\n \n\n(1,284,208)\n\n \n\n(311,472)\n\nRepurchase of Partnership Units\n\n \n\n(384,821)\n\n \n\n0\n\nNet Cash Provided By (Used For)\n\n   Financing Activities\n\n \n\n(1,669,029)\n\n \n\n(311,472)\n\n \n\n \n\n \n\n \n\n \n\nNet Increase (Decrease) in Cash\n\n \n\n(441,943)\n\n \n\n641,242\n\n \n\n \n\n \n\n \n\n \n\nCash, beginning of year\n\n \n\n914,846\n\n \n\n273,604\n\n \n\n \n\n \n\n \n\n \n\nCash, end of year\n\n$\n\n472,903\n\n$\n\n914,846\n\n \n\n \n\n \n\n \n\n \n\n \n\nThe accompanying Notes to Financial Statements are an integral part of these statements.\n\n24\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nSTATEMENTS OF CHANGES IN PARTNERS' CAPITAL\n\n \n\n \n\n \n\n \n\nGeneral Partners\n\n \n\nLimited Partners\n\n \n\nTotal\n\n \n\nLimited Partnership Units Outstanding\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance, December 31, 2023\n\n$\n\n(5,504)\n\n$\n\n6,722,485\n\n$\n\n6,716,981\n\n \n\n11,749.37\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDistributions Declared\n\n \n\n(8,307)\n\n \n\n(268,572)\n\n \n\n(276,879)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet Income\n\n \n\n165\n\n \n\n16,356\n\n \n\n16,521\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance, December 31, 2024\n\n$\n\n(13,646)\n\n$\n\n6,470,269\n\n$\n\n6,456,623\n\n \n\n11,749.37\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDistributions Declared\n\n \n\n(18,265)\n\n \n\n(1,263,982)\n\n \n\n(1,282,247)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRepurchase of Partnership Units\n\n \n\n(3,848)\n\n \n\n(380,973)\n\n \n\n(384,821)\n\n \n\n(720.72)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet Income\n\n \n\n37,416\n\n \n\n204,322\n\n \n\n241,738\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance, December 31, 2025\n\n$\n\n1,657\n\n$\n\n5,029,636\n\n$\n\n5,031,293\n\n \n\n11,028.65\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe accompanying Notes to Financial Statements are an integral part of these statements.\n\n25\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(1)  Organization –\n\n \n\nAEI Income & Growth Fund XXII Limited Partnership (the “Partnership”) was formed to acquire and lease commercial properties to operating tenants. The Partnership's operations are managed by AEI Fund Management XXI, Inc. (“AFM”), the Managing General Partner. The Estate of Robert P. Johnson serves as the Individual General Partner. AFM is a wholly owned subsidiary of AEI Capital Corporation of which the Credit Trust fbo 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 Partnership.\n\n \n\nThe terms of the Partnership offering called for a subscription price of $1,000 per Limited Partnership Unit, payable on acceptance of the offer. The Partnership commenced operations on May 1, 1997 when minimum subscriptions of 1,500 Limited Partnership Units ($1,500,000) were accepted. The offering terminated January 9, 1999 when the extended offering period ended. The Partnership received subscriptions for 16,917.222 Limited Partnership Units. Under the terms of the Limited Partnership Agreement, the Limited Partners and General Partners contributed funds of $16,917,222 and $1,000, respectively.\n\n \n\nDuring operations, any Net Cash Flow, as defined in the Partnership Agreement, which the General Partners determine to distribute will be distributed 97% to the Limited Partners and 3% to the General Partners. Distributions to Limited Partners will be made pro rata by Units.\n\n \n\nAny Net Proceeds of Sale, as defined in the Partnership Agreement, from the sale or financing of properties which the General Partners determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Partners and 1% to the General Partners until the Limited Partners receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 9% 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 Partners and 10% to the General Partners. Distributions to the Limited Partners will be made pro rata by Units.\n\n \n\nFor tax purposes, profits from operations, other than profits attributable to the sale, exchange, financing, refinancing or other disposition of property, will be allocated first in the same ratio in which, and to the extent, Net Cash Flow is distributed to the Partners for such year. Any additional profits will be allocated in the same ratio as the last dollar of Net Cash Flow is distributed. Net losses from operations will be allocated 99% to the Limited Partners and 1% to the General Partners.\n\n \n\n26\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(1)  Organization – (Continued)\n\n \n\nFor tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Partnership Agreement as follows: (i) first, to those Partners with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Partners and 1% to the General Partners until the aggregate balance in the Limited Partners' capital accounts equals the sum of the Limited Partners' Adjusted Capital Contributions plus an amount equal to 9% 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 Partners and 10% to the General Partners. Losses will be allocated 98% to the Limited Partners and 2% to the General Partners.\n\n \n\nThe General Partners are not required to currently fund a deficit capital balance. Upon liquidation of the Partnership or withdrawal by a General Partner, the General Partners will contribute to the Partnership an amount equal to the lesser of the deficit balances in their capital accounts or 1% of total Limited Partners' and General Partners' capital contributions.\n\n \n\nPursuant to Section 12.1(f) of the Partnership Agreement, the Managing General Partner can liquidate the Partnership upon the sale or other disposition of all or substantially all of its assets. The Managing General Partner has decided to begin the final liquidation process by disposing of its assets in accordance with the terms of the Partnership Agreement.\n\n \n\n(2)  Summary of Significant Accounting Policies –\n\n \n\nFinancial Statement Presentation\n\n \n\nThe accounts of the Partnership are maintained on the accrual basis of accounting for both federal income tax purposes and financial reporting purposes.\n\n27\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Summary of Significant Accounting Policies – (Continued)\n\n \n\nAccounting Estimates\n\n \n\nManagement 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.\n\n \n\nThe Partnership 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.\n\n \n\nCash Concentrations of Credit Risk\n\n \n\nThe Partnership's cash is deposited in one financial institution and at times during the year it may exceed Federal Deposit Insurance Corporation (FDIC) insurance limits.\n\n \n\nRent Receivables\n\n \n\nCredit terms are extended to tenants in the normal course of business. The Partnership performs ongoing credit evaluations of its tenants’ financial condition and, generally, requires no collateral.\n\n \n\nRent receivables are recorded at their estimated net realizable value. The Partnership 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 Partnership 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 Partnership’s credit terms. Receivables considered uncollectible are written off. The Partnership did not have an opening balance of rent receivable as of January 1, 2024.\n\n \n\nThe Partnership has adopted the practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of the estimating expected credit losses on these assets. The Partnership did not have an allowance for credit losses as of December 31, 2025 or 2024.\n\n28\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Summary of Significant Accounting Policies – (Continued)\n\n \n\nIncome Taxes\n\n \n\nThe income or loss of the Partnership for federal income tax reporting purposes is includable in the income tax returns of the Partners. In general, no recognition has been given to income taxes in the accompanying financial statements.\n\n \n\nThe tax return and the amount of distributable Partnership income or loss are subject to examination by federal and state taxing authorities. If such an examination results in changes to distributable Partnership income or loss, the taxable income of the Partners would be adjusted accordingly. Primarily due to its tax status as a partnership, the Partnership has no significant tax uncertainties that require recognition or disclosure. The Partnership is no longer subject to U.S. federal income tax examinations for tax years before 2022, and with few exceptions, is no longer subject to state tax examinations for tax years before 2022.\n\n \n\nRevenue Recognition\n\n \n\nThe Partnership'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 Partnership recognizes rental income according to the terms of the individual leases. For deferred rents, the Partnership recognizes the deferred rent related to the month it applies and records a rental receivable. For unearned rent, the Company records a current liability for any amounts received but not yet earned. The opening balance of unearned rent was approximately $15,200 as of January 1, 2024. 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.\n\n \n\nReal Estate Investments\n\n \n\nUpon acquisition of real properties, the Partnership records them in the financial statements at cost. The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market 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.\n\n29\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Summary of Significant Accounting Policies – (Continued)\n\n \n\nThe 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.\n\n \n\nThe 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 on a straight-line basis 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 on a straight-line basis 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.\n\n \n\nThe Partnership tests real estate for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable. For properties the Partnership will hold and operate, 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 Partnership 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 Partnership 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.\n\n30\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Summary of Significant Accounting Policies – (Continued)\n\n \n\nFor financial reporting purposes, the buildings owned by the Partnership 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 over the remaining life of the lease.\n\n \n\nThe disposition of a property or classification of a property as Real Estate Held for Sale by the Partnership does not represent a strategic shift that will have a major effect on the Partnership’s operations and financial results. Therefore, the results from operating and selling the property are included in continuing operations.\n\n \n\nThe Partnership 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 Partnership's percentage share of the properties, land, building, intangible assets, liabilities, revenues and expenses.\n\n \n\nThe Partnership'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 Partnership 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, 2025 and 2024.\n\n \n\nFair Value Measurements\n\n \n\nFair 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.\n\n31\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Summary of Significant Accounting Policies – (Continued)\n\n \n\nAs of December 31, 2025 and 2024, the Partnership had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.\n\n \n\nIncome Per Unit\n\n \n\nIncome per Limited Partnership Unit is calculated based on the weighted average number of Limited Partnership Units outstanding during each period presented. Diluted income per Limited Partnership Unit considers the effect of any potentially dilutive Unit equivalents, of which the Partnership had none for each of the years ended December 31, 2025 and 2024.\n\n \n\nReportable Segments\n\n \n\nThe Partnership 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 Partnership evaluates operating performance on an overall portfolio basis. Therefore, the Partnership’s properties are classified as one reportable segment.\n\n \n\nThe Chief Operating Decision Maker (“CODM”) is the General Partners. The CODM assesses performance and decides how to allocate resources based on operating results. The significant segment expenses include partnership administration expenses incurred from affiliates and unrelated parties, as well as property management expenses allocated from affiliates, as presented in the statements of income.\n\n \n\nRecently Adopted Accounting Pronouncements\n\n \n\nIn November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07: Improvements to Reportable Segment Disclosures. This ASU, which amends Topic 280: Segment Reporting, improves disclosure requirements for reportable segments. The Partnership has a single reportable segment based on the nature of its services and regulatory environment under which it operates. The nature of business and the accounting policies of the segment are the same as described throughout Notes 1 and 2. The Partnership’s CODM is the General Partners. The Partnership adopted the standard as of January 1, 2024. The adoption did not have a material impact on the Partnership’s financial statements.\n\n32\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Summary of Significant Accounting Policies – (Continued)\n\n \n\nIn July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 aims to reduce the cost and complexity of estimating credit losses while maintaining decision-useful information for financial statement users. The guidance allows all entities to elect a practical expedient related to developing forecasts as part of estimating expected credit losses that assumes the current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. The Partnership adopted the standard as of January 1, 2025 and the adoption did not have a material impact on the Partnership's financial statements.\n\n \n\nSubsequent Events\n\n \n\nThe Partnership has evaluated subsequent events through March 27, 2026, the date which the financial statements were available to be issued, and has determined that no events or transactions have occurred that would require recognition or disclosure.\n\n \n\n(3)  Related Party Transactions –\n\n \n\nThe Partnership owns the percentage interest shown below in the following property as a tenant-in-common with the affiliated entity with common ownership listed: Talecris Plasma Facility in Dallas, Texas (50% – AEI Income & Growth Fund 25 LLC).\n\n33\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(2)  Related Party Transactions – (Continued)\n\n \n\nAEI received the following reimbursements for costs and expenses from the Partnership for the years ended December 31:\n\n \n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAEI is reimbursed for costs incurred in providing services related to managing the Partnership's operations and properties, maintaining the Partnership's books, and communicating with the Limited Partners.\n\n$\n\n74,820\n\n$\n\n116,430\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAEI is reimbursed for all direct expenses it paid on the Partnership's behalf to third parties related to Partnership administration and property management. These expenses included printing costs, legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.\n\n$\n\n84,398\n\n$\n\n69,899\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAEI is reimbursed for costs incurred in providing services and direct expenses related to the acquisition of property on behalf of the Partnership.\n\n$\n\n0\n\n$\n\n0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAEI is reimbursed for costs incurred in providing services related to the sale of property on behalf of the Partnership.\n\n$\n\n0\n\n$\n\n6,262\n\n \n\n \n\nThe payable to AEI 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.\n\n \n\nThe 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 General Partner of the registrant are governed by, and are conducted in conformity with, the limitations set forth in the Partnership Agreement of the registrant.\n\n34\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(4)  Real Estate Investments –\n\n \n\nThe Partnership 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 Partnership 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 7.75 to 20 years. The leases provide the tenants with two 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.\n\n \n\nThe Partnership's properties are commercial, single-tenant buildings. The Advance Auto Parts store in Indianapolis, Indiana was constructed in 2005, acquired in 2006 and sold in July 2025. The Talecris Plasma Facility in Dallas, Texas was constructed in 2008 and acquired in 2020. The DaVita facility in Hempstead, Texas was constructed in 2015 and acquired in 2022. There have been no costs capitalized as improvements subsequent to the acquisitions.\n\n \n\nThe cost of the properties not held for sale and related accumulated depreciation at December 31, 2025 are as follows:\n\nProperty\n\nLand\n\nBuildings\n\nTotal\n\nAccumulated\n\nDepreciation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDaVita, Hempstead, TX\n\n$\n\n629,728\n\n$\n\n2,069,828\n\n$\n\n2,699,556\n\n$\n\n269,077\n\nTalecris Plasma Facility, Dallas, TX\n\n \n\n585,423\n\n \n\n1,707,998\n\n \n\n2,293,421\n\n \n\n370,067\n\n \n\n$\n\n1,215,151\n\n$\n\n3,777,826\n\n$\n\n4,992,977\n\n$\n\n639,144\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFor the years ended December 31, 2025 and 2024, the Partnership recognized depreciation expense of $165,238 and $205,532, respectively.\n\n \n\n35\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(4)  Real Estate Investments – (Continued)\n\n \n\nThe following schedule presents the cost and related accumulated amortization of acquired lease intangibles not held for sale at December 31:\n\n   \n2025\n \n2024\n\n   \nCost\n \nAccumulated Amortization\n \nCost\n \nAccumulated Amortization\n\nIn-Place Lease Intangibles\n\n   (weighted average life of 43 and 55 months, respectively)\n\n$\n\n558,153\n\n \n\n305,387\n\n$\n\n558,153\n\n$\n\n234,881\n\n \n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAbove-Market Lease Intangibles\n\n   (weighted average life of 39 and 51 months, respectively)\n\n \n\n246,229\n\n \n\n145,506\n\n \n\n246,229\n\n \n\n114,631\n\n          Acquired Intangible Lease Assets\n\n$\n\n804,382\n\n \n\n450,893\n\n$\n\n804,382\n\n$\n\n349,512\n\n \n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFor the years ended December 31, 2025 and 2024, the value of in-place lease intangibles amortized to expense was $70,506 and the decrease to rental income for above-market leases was $30,875.\n\n \n\nFor lease intangibles not held for sale at December 31, 2025, the estimated amortization for the next five years is as follows:\n\n \n\n \n\n \n\nAmortization Expense for\n\nIn-Place Lease Intangibles\n\n \n\nDecrease to Rental Income\n\nfor Above-Market Leases\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2026\n\n \n\n$\n\n70,506\n\n \n\n$\n\n30,875\n\n2027\n\n \n\n \n\n70,506\n\n \n\n \n\n30,875\n\n2028\n\n \n\n \n\n58,777\n\n \n\n \n\n23,927\n\n2029\n\n \n\n \n\n35,318\n\n \n\n \n\n10,031\n\n2030\n\n \n\n \n\n17,659\n\n \n\n \n\n5,015\n\n \n\n \n\n$\n\n252,766\n\n \n\n$\n\n100,723\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n36\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(4)  Real Estate Investments – (Continued)\n\n \n\nIn October 2024, the Partnership entered into an agreement to sell its 100% interest in the St. Vincent Clinic in Lonoke, Arkansas to an unrelated third party. On December 17, 2024, the sale closed with the Partnership receiving net proceeds of $661,301, which resulted in a net gain of $32,817. At the time of sale, the cost and related accumulated depreciation was $1,645,000 and $1,016,516, respectively.\n\n \n\nIn May 2025, the Partnership entered into an agreement to sell its 65% interest in the Advance Auto Parts store in Indianapolis, Indiana to an unrelated third party. On July 29, 2025, the sale closed with the Partnership receiving net proceeds of $920,594, which resulted in a net gain of $200,237. At the time of sale, the cost and related accumulated depreciation was $1,244,173 and $523,816, respectively.\n\n \n\nFor properties owned as of December 31, 2025, the minimum future rent payments required by the leases are as follows:\n\n2026\n\n$\n\n419,962\n\n2027\n\n \n\n426,548\n\n2028\n\n \n\n354,161\n\n2029\n\n \n\n200,430\n\n2030\n\n \n\n100,215\n\nThereafter\n\n \n\n0\n\n \n\n$\n\n1,501,316\n\n \n\n \n\n \n\n \n\nThere were no contingent rents recognized in 2025 and 2024.\n\n \n\n37\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(5)  Major Tenants –\n\n \n\nThe following schedule presents rental income from individual tenants, or affiliated groups of tenants, who each contributed more than ten percent of the Partnership's total rental income for the years ended December 31:\n\n \n\nTenants\n\n \n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBollinger Dialysis, LLC\n\n \n\n \n\n$\n\n181,289\n\n$\n\n172,178\n\nTalecris Plasma Resources, Inc.\n\n \n\n \n\n \n\n192,294\n\n \n\n186,087\n\nAdvance Stores Company\n\n \n\n \n\n \n\n43,799\n\n \n\n81,861\n\nAggregate rental income of major tenants\n\n \n\n \n\n$\n\n417,382\n\n$\n\n440,126\n\nAggregate rental income of major tenants\n\nas a percentage of total rental income\n\n \n\n \n\n \n\n100%\n\n \n\n100%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(6)  Partners’ Capital –\n\n \n\nFor the years ended December 31, 2025 and 2024, the Partnership declared distributions of $1,282,247 and $276,879, respectively. The Limited Partners were allocated declared distributions of $1,263,982 and $268,572 and the General Partners were allocated declared distributions of $18,265 and $8,307 for the years ended December 31, 2025 and 2024, respectively. The Limited Partners' distributions represented $111.25 and $22.86 per Limited Partnership Unit outstanding using 11,362 and 11,749 weighted average Units in 2025 and 2024, respectively. The distributions represented $111.25 and $22.86 per Unit of Net Income and $0 per Unit of return of capital in 2025 and 2024, respectively.\n\n \n\nThe Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Partnership Agreement), would exceed 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership.\n\n \n\nDuring 2025, the Partnership repurchased a total of 720.72 Units for $380,973 from 32 Limited Partners in accordance with the Partnership Agreement. The Partnership acquired these Units using net sales proceeds. The repurchases increase the remaining Limited Partners' ownership interest in the Partnership. As a result of these repurchases and pursuant to the Partnership Agreement, the General Partners received distributions of $3,848 in 2025. During 2024, the Partnership did not repurchase any Units from the Limited Partners.\n\n38\n\n \n\nAEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP\n\nNOTES TO FINANCIAL STATEMENTS\n\nDECEMBER 31, 2025 AND 2024\n\n \n\n(7)  Income Taxes –\n\n \n\nThe following is a reconciliation of net income for financial reporting purposes to income reported for federal income tax purposes for the years ended December 31:\n\n \n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\nNet Income for Financial Reporting Purposes\n\n$\n\n241,738\n\n$\n\n16,521\n\n \n\n \n\n \n\n \n\n \n\nDepreciation for Tax Purposes Under Depreciation\n\n    and Amortization for Financial Reporting Purposes\n\n \n\n127,533\n\n \n\n121,412\n\n \n\n \n\n \n\n \n\n \n\nIncome Accrued for Tax Purposes Under\n\n    Income for Financial Reporting Purposes\n\n \n\n2,046\n\n \n\n16,477\n\n \n\n \n\n \n\n \n\n \n\nGain on Sale of Real Estate for Tax Purposes\n\n  Under Gain for Financial Reporting Purposes\n\n \n\n(190,234)\n\n \n\n(595,672)\n\nTaxable Income to Partners\n\n$\n\n181,083\n\n$\n\n(441,262)\n\n \n\n \n\n \n\n \n\n \n\nThe following is a reconciliation of Partners' capital for financial reporting purposes to Partners' capital reported for federal income tax purposes for the years ended December 31:\n\n \n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n \n\n \n\n \n\n \n\nPartners' Capital for Financial Reporting Purposes\n\n$\n\n5,031,293\n\n$\n\n6,456,623\n\n \n\n \n\n \n\n \n\n \n\nAdjusted Tax Basis of Investments in Real Estate\n\n    Over Net Investments in Real Estate\n\n    for Financial Reporting Purposes\n\n \n\n540,733\n\n \n\n601,388\n\n \n\n \n\n \n\n \n\n \n\nSyndication Costs Treated as Reduction\n\n    of Capital For Financial Reporting Purposes\n\n \n\n2,418,726\n\n \n\n2,418,726\n\nPartners' Capital for Tax Reporting Purposes\n\n$\n\n7,990,752\n\n$\n\n9,476,737\n\n \n\n \n\n \n\n \n\n \n\n39"}