AEI INCOME & GROWTH FUND 25 LLC

Description of Properties

The Company's properties are commercial, single tenant buildings. The properties were acquired on a debt-free basis and are leased to tenants under net leases, classified as operating leases. The Company holds an undivided fee simple interest in the properties.

The Company's properties are subject to the general competitive conditions incident to the ownership of single tenant investment real estate. Since each property is leased under a longterm lease, there is little competition until the Company decides to sell the property. At this time, the Company will be competing with other real estate owners, on both a national and local level, in attempting to find buyers for the properties. In the event of a tenant default, the Company would be competing with other real estate owners, who have property vacancies, to attract a new tenant to lease the property. The Company's tenants operate in industries that are competitive and can be affected by factors such as changes in regional or local economies, seasonality and changes in consumer preference.

The following table is a summary of the properties that the Company acquired and owned as of December 31, 2025.

Property · Purchase Date · Original Property Cost · Tenant · Annual Lease Payment · Annual Rent Per Sq. Ft.

Jared Jewelry Store Concord, NH · 12/01/05 · 4,157,634 · Sterling Jewelers Inc. · 381,325 · 64.98

Piedmont Health Clinic (Fka Coliseum Health) Macon, GA · 7/25/12 · 967,500 · (1) · Macon Healthcare, LLC · 167,375 · 25.75

PetSmart Store Gonzales, LA · 6/12/13 · 3,109,055 · (1) · PetSmart, LLC · 258,336 · 21.31

Property · Purchase Date · Original Property Cost · Tenant · Annual Lease Payment · Annual Rent Per Sq. Ft.

Tractor Supply Company Store Canton, MS · 11/30/18 · 3,429,590 · Tractor Supply Company · 242,000 · 12.67

Talecris Plasma Facility Dallas, TX (50%) · 7/31/20 · 2,746,350 · Talecris Plasma Resources, Inc. · 217,359 · 43.13

University of Iowa- Riverside Riverside, IA (30%) · 8/3/23 · 1,191,542 · Iowa Health · 78,845 · 34.72

(1) Does not include acquisition costs that were expensed.

The properties listed above with a partial ownership percentage are owned with the following affiliated entities with common ownership: Talecris Plasma Facility in Dallas, Texas (AEI Income & Growth Fund XXII Limited Partnership) and University of Iowa Health Facility in Riverside, Iowa (AEI Healthcare Fund LLC).

The Company 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 Company’s percentage share of the properties’ land, building, intangible assets, liabilities, revenues and expenses.

At the time the properties were acquired, the remaining primary lease terms varied from 8.1 to 20 years. The leases provide the tenants with one 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. The leases for the Piedmont Health facility in Macon, Georgia, PetSmart Store in Gonzales, Louisiana, and Jared Jewelry Store in Concord, New Hampshire, were extended to end on June 30, 2031, January 31, 2028 and January 31, 2033, respectively.

Pursuant to the lease agreements, the tenants are required to provide proof of adequate insurance coverage on the properties they occupy. The Managing Members believe the properties are adequately covered by insurance and consider the properties to be well-maintained and sufficient for the Company's operations.

For tax purposes, the Company's properties are depreciated under the Modified Accelerated Cost Recovery System (MACRS). The largest depreciable component of a property is the building which is depreciated using the straight-line method over 39 years. The remaining depreciable component of a property is land improvements which are depreciated using an accelerated method over 15 years. Since the Company has tax-exempt Members, the Company is subject to the rules of Section 168(h)(6) of the Internal Revenue Code which requires a percentage of the properties' depreciable components to be depreciated over longer lives using the straight-line method. In general, the federal tax basis of the properties for tax depreciation purposes equals the book depreciable cost of the properties plus the amortizable cost of the related intangible lease assets, except for properties whose carrying value was reduced by a real estate impairment and properties purchased during 2009 through 2017. Real estate impairments, which are recorded against the book cost of the land and depreciable property, are not recognized for tax purposes. For properties purchased during 2009 through 2017, acquisition expenses that were expensed for book purposes were capitalized and added to the basis of the property for tax depreciation purposes.