Real Estate Held for Investment

3 Months Ended

Mar. 31, 2012

Real Estate Disclosure [Text Block]

(4) Real Estate Held for Investment –

On February 23, 2012, the Company purchased a 53% interest in a Tractor Supply Company store in Starkville, Mississippi for $1,510,500. The Company allocated $257,767 of the purchase price to Acquired Intangible Lease Assets, $92,542 to Acquired Below-Market Lease Intangibles and incurred $24,871 of acquisition expenses related to the purchase that were expensed. The property is leased to Tractor Supply Company under a Lease Agreement with a remaining primary term of 15 years (as of the date of purchase) and annual rent of $115,542 for the interest purchased. The remaining interest in the property was purchased by AEI Net Lease Income & Growth Fund XX Limited Partnership, an affiliate of the Company.

For the three months ended March 31, 2012 and 2011, the value of lease assets amortized to expense was $1,440 and $0, respectively, and the increase to rental income for below-market leases was $517 and $0, respectively. For lease intangibles owned as of March 31, 2012, the weighted average life is 179 months, the estimated amortization expense for lease assets is $17,280 and the estimated increase to rental income for below-market leases is $6,204 for each of the next five succeeding years.