AEI Net Lease Income & Growth Fund XX Limited Partnership 8-KCompletion of Acquisition or Disposition of Assets

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

 

 

On July 23, 2021, the Partnership sold 2.36 acres of land in Fredericksburg, Virginia to 1551 CDS Parkway, GP, an unrelated third party. The land is leased to Bassett Direct NC, LLC, a subsidiary of Bassett Furniture Industries, Inc., under a lease agreement with a remaining primary term of 8.3 years and annual rent of 215,240. Bassett operates a Bassett Home Furnishings store on the site. The Partnership received net cash proceeds of approximately $3,022,000 for the property, which resulted in a net loss of approximately $133,100.

 

 

 

(a) Financial statements of businesses acquired – Not Applicable.

 

(b) Pro forma financial information – A limited number of pro forma adjustments are required to illustrate the effects of the transaction on the balance sheet and income statement. The following narrative description is furnished in lieu of pro forma statements. Assuming the Partnership had sold the property on January 1, 2020:

 

The Partnership's Investments in Real Estate would have been reduced by $3,162,453 and its Current Assets (cash) would have increased by $3,022,000 and Partners’ Capital would have decreased by $140,453.

 

For the year ended December 31, 2020, Income from Operations would have decreased $209,030, representing a decrease in rental income of $215,240, a decrease in amortization expense of $5,164 and a decrease in property management expenses of $1,046. For the three months ended March 31, 2021, Income from Operations would have decreased $51,997, representing a decrease in rental income of $53,810, a decrease in amortization expense of $1,291 and a decrease in property management expenses of $522.

 

The net effect of these pro forma adjustments would have caused Net Income to decrease from $486,845 to $277,815 and from $105,695 to $53,698, which would have resulted in Net Income of $14.44 and $2.79 per Limited Partnership Unit outstanding for the year ended December 31, 2020 and the three months ended March 31, 2021, respectively.

 

(c) Shell company transactions – Not Applicable.

 

(d) Exhibits – Purchase and Sale Agreement dated May 28, 2021 between the Partnership and Ralph Horowitz relating to the property at 1551 Carl D. Silver Parkway, Fredericksburg, Virginia.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.