AEI INCOME & GROWTH FUND XXII LTD PARTNERSHIP (XAEIU) stock intrinsic value fair value estimate & owner earnings analysis

This business is a small, real-estate limited partnership that once owned twelve commercial buildings leased to single tenants under long-term "net leases" (where the tenant pays taxes, insurance and most maintenance). Over the past several years, management has been steadily selling off properties and returning the proceeds to unit holders, and it has now formally begun the final wind-down: only two properties remain — a plasma-collection facility in Dallas, Texas leased to Talecris Plasma Resources, and a dialysis clinic in Hempstead, Texas leased to Bollinger Dialysis (a DaVita-affiliated operator). Both tenants are large, well-capitalized healthcare/pharma operators, which supports the reliability of the remaining rental income, but the two-property, single-purpose nature of the portfolio means the eventual sale price of these specific buildings — not ongoing growth — is what will determine most of the remaining value. Because the partnership intends to sell these last two properties and then dissolve, we did not treat this as a business that will keep earning forever. Instead, our estimate reflects the rental income expected between now and each property's sale, plus the proceeds we expect from those sales, with nothing assumed after the partnership winds up. In building the recurring income figure, we excluded the one-time gains booked when properties were sold in prior years (2023, 2024 and July 2025) — those gains are part of the liquidation payout, not repeatable operating profit — and we did not deduct any maintenance spending, since the net-lease structure puts most repair responsibility on the tenants and the partnership has not capitalized any property improvements in any year we reviewed. Our base case assumes the two remaining properties are eventually sold at values close to the partnership's own year-end 2025 appraisal-based estimate (roughly $5.76 million combined), with rental income continuing in the meantime. Our bear case assumes the properties — being small, single-tenant assets that are inherently harder to sell than a diversified building — fetch a meaningfully lower price than that appraisal in a difficult sale environment, combined with some risk of a costly gap in re-tenanting one of the buildings. Our bull case assumes a sale at or above the appraised values, helped by the fact that the Dallas facility's tenant holds a ten-year lease renewal option that could keep income flowing longer before any sale. We deliberately avoided assuming anything about a broader real estate market recovery — the case spread here reflects the risk in selling these two specific, illiquid, single-tenant properties, not a market call. Two things worth flagging plainly: first, the number of partnership units outstanding has been shrinking each year as the partnership buys back units from investors who want to cash out, which affects year-to-year per-unit comparisons but not the underlying value of what's left. Second, the partnership's own disclosed property-value estimate is prepared using account balances from several months before its official reporting date, which we adjusted for as best we could using more current filings, but it introduces some imprecision into any point-in-time estimate.