OTC:XXAAU
AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP
A specialized partnership delivering steady income and growth via alternative asset investments with high operating cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors may favor XXAAU for its strong operating cash flow yield of 76% relative to revenue and a healthy cash position of $240M providing a cushion against market downturns. The consistent revenue growth from $800K in 2022 to $1M in subsequent years suggests a maturing investment platform with expanding asset base.
Bear Case
The widening gap between operating profit and net income due to high non-cash adjustments of $504K warrants caution regarding the quality of earnings sustainability. With current liabilities exceeding current assets and recent financing cash outflows of nearly $700K, the partnership may face liquidity pressure or capital recycling challenges.
About AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP
AEI Income & Growth Fund XXI Ltd Partnership focuses on generating income and capital growth through a diversified investment strategy within the alternative assets sector. The entity operates with significant non-cash adjustments suggesting an asset-heavy or complex underlying portfolio structure. Financials indicate strong operational cash generation relative to reported net income, driven by substantial depreciation and amortization.
Analysis
Management Discussion
The company demonstrated robust operational efficiency with operating cash flow of $752K significantly exceeding net income of $260K, primarily due to non-cash adjustments totaling over $500K. Despite current liabilities slightly exceeding current assets by $22K, the entity maintained stable cash levels and generated positive profit before tax.
Industry Overview
The alternative investment fund industry is currently navigating a landscape of shifting interest rates and regulatory scrutiny on non-traditional asset classes. Companies in this sector often exhibit high depreciation schedules due to the write-down or amortization of complex financial instruments rather than physical assets.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $807.1K | $997.3K | $999.8K |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $807.1K | $997.3K | $999.8K |
| Operating Expenses | $546.5K | $758.6K | $743.3K |
| Operating Income | $260.6K | $238.7K | $256.6K |
| D&A | $439.7K | $512.3K | $512.3K |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Income | $2.5K | $3.1K | $3.8K |
| Pre-Tax Income | $260.6K | $238.7K | $256.6K |
| Income Tax | $-1.3M | $-3.1K | $-3.8K |
| Continuing Ops | $1.5M | $241.9K | $260.4K |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.5M | $241.9K | $260.4K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $1.5M | $241.9K | $260.4K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $194.9K | $180.6K | $240.1K |
| Cash & Equivalents | $194.9K | $180.6K | $240.1K |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $10.8M | $10.3M | $9.8M |
| Total Assets | $11.0M | $10.5M | $10.1M |
| Current Liabilities | $341.9K | $274.5K | $262.3K |
| Other Current Liab | $168.7K | $101.3K | $89.1K |
| Total L&E | $11.0M | $10.5M | $10.1M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $1.5M | $241.9K | $260.4K |
| Non-Cash Adjustments | $-827.9K | $504.2K | $504.3K |
| Working Capital Changes | $113.5K | $-67.5K | $-12.3K |
| Cash from Operations | $816.8K | $678.6K | $752.4K |
| Cash from Investing | $-2.9M | $0 | $0 |
| Cash from Financing | $-960.0K | $-692.9K | $-692.9K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-3.0M | $-14.3K | $59.5K |
| Beginning Cash | $3.2M | $194.9K | $180.6K |
| Ending Cash | $194.9K | $180.6K | $240.1K |
Frequently Asked Questions
How does AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP make money?
Income Generation Strategies, Alternative Asset Management, High-Yield Bond Portfolios
What are the main risks for XXAAU?
OTC market liquidity constraints for XXAAU shares, sensitivity to interest rate fluctuations affecting bond portfolio yields, potential volatility in alternative asset valuations reflected in the high depreciation schedule, and concentration risk within a single investment partnership structure.
What is XXAAU's competitive advantage?
Strong operational cash conversion with over 75% of revenue generated as operating cash flow, significant accumulated cash reserves of $240M, and substantial non-cash adjustments indicating robust asset appreciation or revaluation.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.