UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-KSB

    Annual Report Under Section 13 or 15(d) of The Securities
                      Exchange Act of 1934

          For the Fiscal Year Ended:  December 31, 2007

               Commission file number:  000-18289

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
         (Name of small business issuer in its charter)

        State of Minnesota                41-1622463
(State or other jurisdiction of      (I.R.S. Employer
incorporation or organization)     Identification No.)

30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
        (Address of principal executive offices)

                     (651) 227-7333
               (Issuer's telephone number)

Securities registered under Section 12(b) of the Exchange Act:
                                 Name of each exchange on
     Title of each class             which registered
             None                          None

Securities registered under Section 12(g) of the Exchange Act:

                      Limited Partnership Units
                        (Title of class)

Check whether the issuer is not required to file reports pursuant
to Section 13 or 15(d) of the Exchange Act.

Check  whether  the issuer (1) filed all reports required  to  be
filed by Section 13 or 15(d) of the Exchange Act during the  past
12  months  (or  for such shorter period that the registrant  was
required to file such reports), and (2) has been subject to  such
filing requirements for the past 90 days.     Yes [X]   No

Check if disclosure of delinquent filers in response to Rule  405
of  Regulation  S-B  is  not  contained  in  this  Form,  and  no
disclosure  will  be  contained,  to  the  best  of  registrant's
knowledge,   in   definitive  proxy  or  information   statements
incorporated by reference in Part III of this Form 10-KSB or  any
amendment to this Form 10-KSB.  [X]

Indicate by check mark whether the registrant is a shell  company
(as defined in Rule 12b-2 of the Exchange Act).  Yes    No [X]

The Issuer's revenues for the year ended December 31, 2007 were
$514,737.

As  of  February 29, 2008, there were 18,952.133 Units of limited
partnership  interest outstanding and owned by  nonaffiliates  of
the  registrant, which Units had an aggregate market value (based
solely  on  the price at which they were sold since there  is  no
ready market for such Units) of $18,952,133.

               DOCUMENTS INCORPORATED BY REFERENCE
 The registrant has not incorporated any documents by reference
                        into this report.

Transitional Small Business Disclosure Format:  Yes   No [X]

                             PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

        AEI  Real  Estate  Fund  XVIII Limited  Partnership  (the
"Partnership" or the "Registrant") is a limited partnership which
was  organized pursuant to the laws of the State of Minnesota  on
September  20,  1988.  The registrant is comprised  of  AEI  Fund
Management XVIII, Inc. (AFM) as Managing General Partner,  Robert
P.  Johnson,  the  President and sole director  of  AFM,  as  the
Individual  General Partner, and purchasers of partnership  units
as  Limited  Partners.  The Partnership offered for  sale  up  to
$30,000,000  of  limited  partnership  interests  (the   "Units")
(30,000  Units  at  $1,000 per Unit) pursuant to  a  registration
statement  effective December 5, 1988.  The Partnership commenced
operations  on  February 15, 1989 when minimum  subscriptions  of
1,500 Limited Partnership Units ($1,500,000) were accepted.   The
Partnership's  offering  terminated December  4,  1990  when  the
extended  offering  period  expired.   The  Partnership  received
subscriptions    for   22,783.05   Limited   Partnership    Units
($22,783,050).

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States and Canada, to lease such
properties  to  tenants under triple net  leases,  to  hold  such
properties   and  to  eventually  sell  such  properties.    From
subscription  proceeds,  the  Partnership  purchased   twenty-one
properties,  including  partial  interests  in  five  properties,
totaling  $18,868,379.  The balance of the subscription  proceeds
was  applied  to  organization  and  syndication  costs,  working
capital reserves and distributions, which represented a return of
capital.   The properties are commercial, single tenant buildings
leased under triple net leases.

        In  the  second  quarter of 2008,  the  Managing  General
Partner  plans to solicit by mail a proxy statement  seeking  the
consent  of the Limited Partners, as required by Section  6.1  of
the  Partnership  Agreement, to initiate the  final  disposition,
liquidation   and  distribution  of  all  of  the   Partnership's
properties and assets within the next year.  If a majority of the
voting  Units  are voted in favor of the proposal,  the  Managing
General Partner will proceed with the planned liquidation of  the
Partnership.  If the Partnership sells its remaining property  in
2008,  the  Partnership  anticipates  liquidation  to  occur   by
December 31, 2008.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants  under triple net leases, classified as operating leases.
Under a triple net lease, the tenant is responsible for all  real
estate  taxes,  insurance,  maintenance,  repairs  and  operating
expenses  for  the  property.  At the time  the  properties  were
acquired, the remaining primary lease terms varied from 15 to  20
years.   Most of the leases provide the tenant with two to  three
five-year   renewal  options  subject  to  the  same  terms   and
conditions  as  the primary term.  The leases  provide  for  base
annual  rental  payments,  payable in monthly  installments,  and
contain  rent  clauses which entitle the Partnership  to  receive
additional rent in future years based on stated rent increases.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

Property Activity

         In  December  2004,  the  Partnership  entered  into  an
agreement to sell its 24% interest in the Razzoo's restaurant  in
Alpharetta,  Georgia to an unrelated third party.  On  March  29,
2005,  the  sale closed with the Partnership receiving  net  sale
proceeds  of  $648,425, which resulted in a net gain of  $48,425.
At  the  time  of  sale, the net book value of the  property  was
$600,000.

       On May 31, 2005, the Partnership sold its 5.8291% interest
in  the  Applebee's restaurant in Destin, Florida to the  tenant.
The  Partnership  received net sale proceeds of  $109,804,  which
resulted  in  a  net  gain  of $62,281.   The  cost  and  related
accumulated  depreciation of the interest sold  was  $65,215  and
$17,692, respectively.

       During the third quarter of 2005, the Partnership sold its
50%  interest  in  the Johnny Carino's restaurant  in  Mansfield,
Texas,  in  three  separate  transactions,  to  unrelated   third
parties.   The  Partnership received total net sale  proceeds  of
$1,490,853, which resulted in a net gain of $506,543.   The  cost
and  related accumulated depreciation of the interests  sold  was
$1,028,886 and $44,576, respectively.

        On October 18, 2005, the Partnership sold the Old Country
Buffet  restaurant in Northlake, Illinois to an  unrelated  third
party.  The Partnership received net sale proceeds of $1,973,839,
which  resulted in a net gain of $851,215.  At the time of  sale,
the  cost and related accumulated depreciation was $1,350,804 and
$228,180, respectively.

       In October 2005, the Partnership entered into an agreement
to  sell  its 50% interest in the Applebee's restaurant in  Stow,
Ohio to an unrelated third party.  On November 15, 2005, the sale
closed  with  the  Partnership receiving  net  sale  proceeds  of
$1,835,784,  which resulted in a net gain of  $310,234.   At  the
time  of sale, the cost and related accumulated depreciation  was
$1,575,755 and $50,205, respectively.

        In May 2003, the Partnership entered into an agreement to
sell  a  Taco  Cabana  restaurant in San Antonio,  Texas  to  the
tenant.   The agreement was extended several times to enable  the
tenant  to  complete their due diligence and certain negotiations
with   adjacent  land  owners.   During  this  time,  the  tenant
continued  to  pay rent and complied with the lease  obligations.
On  January  26,  2006,  the  sale closed  with  the  Partnership
receiving  net sale proceeds of $1,642,624, which resulted  in  a
net  gain of $484,970.  At the time of sale, the cost and related
accumulated    depreciation   was   $1,406,426   and    $248,772,
respectively.

        In May 2006, the Partnership entered into an agreement to
sell the Children's World daycare center in Lenexa, Kansas to  an
unrelated third party.  On August 14, 2006, the Partnership  sale
closed  with  the  Partnership receiving  net  sale  proceeds  of
$849,224, which resulted in a net gain of $306,488.  At the  time
of  sale,  the  cost  and  related accumulated  depreciation  was
$983,527 and $440,791, respectively.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

        During 2006, the Partnership sold its 50% interest in the
Jared  Jewelry  store in Lakewood, Colorado,  in  seven  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $2,382,658, which resulted in
a  net  gain  of  $450,831.   The cost  and  related  accumulated
depreciation  of the interests sold was $2,017,633  and  $85,806,
respectively.

       On November 3, 2006, the Partnership sold its 24% interest
in  the  Garden  Ridge  retail store in Woodlands,  Texas  to  an
unrelated  third  party.   The  Partnership  received  net   sale
proceeds of $2,094,119, which resulted in a net gain of $245,256.
At   the   time   of  sale,  the  cost  and  related  accumulated
depreciation was $1,995,850 and $146,987, respectively.

        On  August 28, 2006, the Partnership sold 6.869%  of  the
Eckerd  drug  store  in Auburn, New York to  an  unrelated  third
party.   The Partnership received net sale proceeds of  $376,203,
which  resulted in a net gain of $76,398.  The cost  and  related
accumulated  depreciation of the interest sold was  $314,206  and
$14,401, respectively.

       During the first nine months of 2007, the Partnership sold
38.8529%  of the Eckerd drug store in Auburn, New York,  in  nine
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,947,905, which
resulted  in  a  net  gain of $252,126.   The  cost  and  related
accumulated depreciation of the interests sold was $1,777,236 and
$81,457, respectively.

        During  the fourth quarter of 2007, the Partnership  sold
its  remaining  4.2781%  interest in the  Eckerd  drug  store  in
Auburn,  New  York to an unrelated third party.  The  Partnership
received  net  sale proceeds of $212,731.  The cost  and  related
accumulated  depreciation of the interest sold was  $195,691  and
$8,969,  respectively.  At December 31, 2006,  the  property  was
classified  as  Real Estate Held for Sale with a  book  value  of
$1,882,501.

        On  June  30,  2007,  the  Lease  term  expired  for  the
KinderCare daycare center in Blue Springs, Missouri.  The  tenant
reviewed  their  operations at the property and  decided  not  to
enter  into  an agreement to extend the term of the  Lease.   The
Partnership  has listed the property for sale with a real  estate
broker  in the Blue Springs area.  While the property is  vacant,
the  Partnership is responsible for real estate taxes  and  other
costs associated with maintaining the property.

        Subsequent to December 31, 2007, the Partnership sold the
KinderCare  daycare center in Westerville, Ohio to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $1,415,000.  At the time of  sale,  the  cost  and
related  accumulated  depreciation  was  $990,261  and  $471,635,
respectively.

        Subsequent to December 31, 2007, the Partnership sold the
KinderCare daycare center in Columbus, Ohio to an unrelated third
party.    The   Partnership  received  net   sale   proceeds   of
approximately  $1,617,000.  At the time of  sale,  the  cost  and
related  accumulated  depreciation was $1,019,202  and  $455,731,
respectively.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

Major Tenants

        During 2007, three tenants each contributed more than ten
percent  of  the Partnership's total rental revenue.   The  major
tenants  in aggregate contributed 93% of total rental revenue  in
2007.  With the planned liquidation of the Partnership, the major
tenant information will no longer be applicable.

Competition

        The  Partnership is a minor factor in the commercial real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than  the  Partnership.  At the time  the  Partnership
elects to dispose of its properties, the Partnership will  be  in
competition  with other persons and entities to find  buyers  for
its properties.

Employees

        The  Partnership  has  no direct  employees.   Management
services   are  performed  for  the  Partnership  by   AEI   Fund
Management, Inc., an affiliate of AFM.

ITEM 2.   DESCRIPTION OF PROPERTIES.

Investment Objectives

        The  Partnership's investment objectives were to  acquire
existing or newly-developed commercial properties throughout  the
United  States  and  Canada  that offer  the  potential  for  (i)
preservation  and protection of the Partnership's  capital;  (ii)
partially  tax-deferred cash distributions from operations  which
may  increase through rent participation clauses or mandated rent
increases; and (iii) long-term capital gains through appreciation
in value of the Partnership's properties realized upon sale.  The
Partnership  does not have a policy, and there is no  limitation,
as  to the amount or percentage of assets that may be invested in
any  one  property.  However, to the extent possible, the General
Partners  attempted  to diversify the type and  location  of  the
Partnership's properties.

Description of Properties

       The Partnership's properties are commercial, single tenant
buildings.  The properties were acquired on a debt-free basis and
are leased to various tenants under triple net leases, classified
as  operating  leases.  The Partnership holds  an  undivided  fee
simple  interest in the properties.  At any time prior to selling
the  properties, the Partnership may mortgage one or more of  its
properties in amounts not exceeding 50% of the aggregate purchase
price of all Partnership properties.

ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

        The  Partnership'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
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership 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
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  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 Partnership acquired and owned as of December 31, 2007.

                           Total Property               Annual    Annual
                  Purchase  Acquisition                 Lease    Rent Per
Property            Date      Costs        Tenant      Payment    Sq. Ft.

KinderCare
Daycare Center
 Blue Springs, MO  6/27/90  $  791,271       (1)

KinderCare                                KinderCare
Daycare Center                             Learning
 Westerville, OH   6/21/91  $  990,261   Centers, Inc.  $150,557   $18.87

Taco Cabana Restaurant
 San Antonio, TX                         Texas Taco
 (9.3699%)         7/19/91  $  107,933   Cabana L.P.    $ 21,101   $50.33

KinderCare                               KinderCare
Daycare Center                            Learning
 Columbus, OH      8/10/92  $1,019,202  Centers, Inc.   $146,783   $16.62

Tractor Supply
 Company Store
 Bristol, VA                            Tractor Supply
 (7.5158%)         4/10/96  $   96,765  Company, Inc.   $ 12,485   $ 8.86

Champps Americana
 Restaurant                               Champps
 Columbus, OH                            Operating
 (.5061%)          8/29/96  $   12,984  Corporation     $  1,747   $42.25

Fuddruckers Restaurant
 Thornton, CO
 (.7606%)          7/30/97  $   10,693 Fuddruckers, Inc.$  1,386   $36.61

Tumbleweed Restaurant
 Chillicothe, OH                        Tumbleweed,
 (43.9634%)       11/20/98  $  560,612     Inc.         $ 66,917   $27.75


(1)  The property is vacant and listed for sale.


ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the Partnership  and/or
unrelated  third  parties.   The  remaining  interests   in   the
Tumbleweed restaurant are owned by AEI Net Lease Income &  Growth
Fund  XIX  Limited Partnership and unrelated third parties.   The
remaining  interests in the Taco Cabana restaurant,  the  Tractor
Supply  Company store, the Fuddruckers restaurant and the Champps
Americana restaurant are owned by unrelated third parties.

        The Partnership accounts for properties owned as tenants-
in-common  with  affiliated Partnerships 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
Partnership's percentage share of the properties' land,  building
and equipment, liabilities, revenues and expenses.

        At  the  time the properties were acquired, the remaining
primary  lease  terms varied from 15 to 20 years.   Most  of  the
leases  provide  the tenants with two to three five-year  renewal
options  subject to the same terms and conditions as the  primary
term.

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

         For  tax  purposes,  the  Partnership'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  31.5  years or 39 years depending on the date when  it  was
placed  in  service.  The remaining depreciable components  of  a
property  are personal property and land improvements  which  are
depreciated,  using an accelerated method, over 5 and  15  years,
respectively.  Since the Partnership has tax-exempt Partners, the
Partnership 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 is the
same as the basis for book depreciation purposes.

        At  December 31, 2007, all properties listed  above  were
100%  occupied,  except  the KinderCare daycare  center  in  Blue
Springs, Missouri which has been 100% vacant since June 2007.

ITEM 3.LEGAL PROCEEDINGS.

       None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

       None.


                             PART II

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS
        AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES.

        (a) As of December 31, 2007, there were 1,373 holders  of
record  of the registrant's Limited Partnership Units.  There  is
no  other  class  of  security outstanding  or  authorized.   The
registrant's  Units  are  not a traded security  in  any  market.
During the period covered by this report, the Partnership did not
sell  any  equity  securities that are not registered  under  the
Securities Act of 1933.

       Cash distributions of $22,811 and $87,577 were made to the
General Partners and $2,258,269 and $8,670,043 were made  to  the
Limited   Partners   in   2007  and  2006,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above,   the   Partnership  distributed  net  sale  proceeds   of
$1,839,352  and  $7,811,216 in 2007 and 2006, respectively.   The
distributions  reduced  the  Limited Partners'  Adjusted  Capital
Contributions.

       (b) Not applicable.

        (c) Pursuant to Section 7.7 of the Partnership Agreement,
as  amended, each Limited Partner has the right to present  Units
to  the  Partnership  for purchase by submitting  notice  to  the
Managing  General Partner.  The purchase price of  the  Units  is
equal to 90% of the net asset value per Unit as determined by the
Managing General Partner in accordance with the provisions of the
Partnership  Agreement.  Units tendered to  the  Partnership  are
redeemed  at  the purchase price established for the  quarter  in
which the Partnership received a notice at least 60 days prior to
the  repurchase  dates of January 1st, April 1st,  July  1st  and
October   1st   subject  to  the  following   limitations.    The
Partnership is not obligated to purchase in any year more than 5%
of  the number of Units outstanding at the beginning of the year.
In  no event shall the Partnership be obligated to purchase Units
if,  in the sole discretion of the Managing General Partner, such
purchase   would   impair  the  capital  or  operation   of   the
Partnership.   During  the  last  three  months  of   2007,   the
Partnership did not purchase any Units.


ITEM 6.MANAGEMENT'S DISCUSSION AND ANALYSIS.

        The Management's Discussion and Analysis contains various
"forward  looking  statements"  within  the  meaning  of  federal
securities  laws  which  represent management's  expectations  or
beliefs  concerning future events, including statements regarding
anticipated  application of cash, expected  returns  from  rental
income,  growth  in  revenue, the sufficiency  of  cash  to  meet
operating  expenses, rates of distribution,  and  other  matters.
These,   and  other  forward  looking  statements  made  by   the
Partnership,  must be evaluated in the context  of  a  number  of
factors that may affect the Partnership's financial condition and
results of operations, including the following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Partnership owns and  the  cash
    from rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    effects of these consequences for the Partners;

    resolution  by  the General Partners of  conflicts  with
    which they may be confronted;

    the effect of tenant defaults; and

    the  condition of the industries in which the  tenants  of
    properties owned by the Partnership operate.


The Application of Critical Accounting Policies

        The preparation of the Partnership's financial statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses  to  the  Partnership as opposed  to  other  funds  they
manage.

        Through  September  30, 2007, the  Partnership  purchased
properties and recorded them in the financial statements at  cost
(including  capitalized acquisition expenses).   The  Partnership
tested  long-lived  assets  for  recoverability  when  events  or
changes  in circumstances indicated that the carrying  value  may
not  have been recoverable.  For properties the Partnership would
hold   and  operate,  management  determined  whether  impairment
occurred  by  comparing the property's probability-weighted  cash
flows  to its then carrying value.  For properties held for sale,
management  determined whether impairment occurred  by  comparing
the  property's  estimated fair value less cost to  sell  to  its
current  carrying value.  If the carrying value was greater  than
the  realizable value, an impairment loss was recorded to  reduce
the carrying value of the property to its realizable value.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       Effective  October  1, 2007, the Partnership  adopted  the
liquidation basis of accounting because, pending the approval  of
the   Limited  Partners,  the  General  Partners  anticipate  the
liquidation  of the Partnership during 2008.  In accordance  with
the liquidation basis of accounting, assets are recorded at their
estimated net realizable value (the amount of cash expected to be
received) and liabilities are recorded at the amount estimated to
be  paid  to creditors and Partners.  At December 31,  2007,  the
estimated real estate values were based upon comparable sales  of
similar  properties,  a subsequent sale of  one  property  and  a
signed purchase agreement for one property.  Any changes in these
estimates  may  cause  material changes  in  the  net  assets  in
liquidation.

        AEI  Fund Management, Inc. allocates expenses to each  of
the  funds  they manage primarily on the basis of the  number  of
hours  devoted  by their employees to each fund's affairs.   They
also  allocate  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds  they  manage.   The  Partnership  reimburses  these
expenses  subject  to  detailed  limitations  contained  in   the
Partnership Agreement.

         Management   of  the  Partnership  has   discussed   the
development  and selection of the above accounting estimates  and
the management discussion and analysis disclosures regarding them
with the managing partner of the Partnership.

Results of Operations

        For the years ended December 31, 2007 and 2006, while  in
the  operating and liquidation phases, the Partnership recognized
rental income of $514,737 and $1,013,641, respectively.  In 2007,
rental  income  decreased mainly as a result of  property  sales.
During  the  same  periods, the Partnership  recognized  interest
income  of $67,073 and $104,767, respectively.  In 2006, interest
income was higher mainly due to the Partnership having more money
invested  in a money market account due to property  sales.   The
sales proceeds were subsequently distributed to the Partners.

        For the years ended December 31, 2007 and 2006, while  in
the  operating  and liquidation phases, the Partnership  incurred
Partnership  administration expenses from affiliated  parties  of
$99,887   and   $129,221,  respectively.   These   administration
expenses  include  costs associated with the  management  of  the
properties, processing distributions, reporting requirements  and
correspondence  to  the Limited Partners.  As  the  Partnership's
asset  base  decreases due to property sales, it is  allocated  a
smaller  share  of  expenses  that  are  allocated  by  AEI  Fund
Management, Inc. based on the relative assets of the funds  under
management.   During  the same periods, the Partnership  incurred
Partnership administration and property management expenses  from
unrelated  parties  of $58,774 and $45,658, respectively.   These
expenses represent direct payments to third parties for legal and
filing  fees,  direct administrative costs, outside audit  costs,
taxes, insurance and other property costs.  The increase in these
expenses  in  2007,  when  compared to 2006,  is  the  result  of
expenses  incurred  in  2007 related to  the  KinderCare  daycare
center in Blue Springs, Missouri.


ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

         At   December  31,  2007,  the  Partnership   recognized
adjustments  of  estimated  values of $4,108,083  resulting  from
adopting  the  liquidation basis of accounting and recording  its
assets  at estimated net realizable value and liabilities at  the
amount estimated to be paid.

        On  June  30,  2007,  the  Lease  term  expired  for  the
KinderCare daycare center in Blue Springs, Missouri.  The  tenant
reviewed  their  operations at the property and  decided  not  to
enter  into  an agreement to extend the term of the  Lease.   The
Partnership  has listed the property for sale with a real  estate
broker  in the Blue Springs area.  While the property is  vacant,
the  Partnership is responsible for real estate taxes  and  other
costs associated with maintaining the property.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   Inflation also may cause the  real  estate  to
appreciate in value.  However, inflation and changing prices  may
have   an  adverse  impact  on  the  operating  margins  of   the
properties' tenants, which could impair their ability to pay rent
and   subsequently  reduce  the  Net  Cash  Flow  available   for
distributions.

Liquidity and Capital Resources

        In  the  second  quarter of 2008,  the  Managing  General
Partner  plans to solicit by mail a proxy statement  seeking  the
consent  of the Limited Partners, as required by Section  6.1  of
the  Partnership  Agreement, to initiate the  final  disposition,
liquidation   and  distribution  of  all  of  the   Partnership's
properties and assets within the next year.  If a majority of the
voting  Units  are voted in favor of the proposal,  the  Managing
General Partner will proceed with the planned liquidation of  the
Partnership.  If the Partnership sells its remaining property  in
2008,  the  Partnership  anticipates  liquidation  to  occur   by
December 31, 2008.

        During  the  period from October 1, 2007 to December  31,
2007,  while  in  the  liquidation phase, the  Partnership's  Net
Assets in Liquidation increased $2,508,862 mainly as a result  of
the  adjustment to increase Investments in Real Estate from their
historical bases to their estimated net realizable value.  During
the  period from January 1, 2007 to September 30, 2007, while  in
the  operating  phase, the Partnership's cash balances  decreased
$704,604  as  a result of distributions paid to the  Partners  in
excess of cash generated from operating and investing activities.
During  the year ended December 31, 2006, the Partnership's  cash
balances  decreased $1,498,974 as a result of distributions  paid
to  the  Partners in excess of cash generated from operating  and
investing activities.

        In May 2003, the Partnership entered into an agreement to
sell  a  Taco  Cabana  restaurant in San Antonio,  Texas  to  the
tenant.   The agreement was extended several times to enable  the
tenant  to  complete their due diligence and certain negotiations
with   adjacent  land  owners.   During  this  time,  the  tenant
continued  to  pay rent and complied with the lease  obligations.
On  January  26,  2006,  the  sale closed  with  the  Partnership
receiving  net sale proceeds of $1,642,624, which resulted  in  a
net  gain of $484,970.  At the time of sale, the cost and related
accumulated    depreciation   was   $1,406,426   and    $248,772,
respectively.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        In May 2006, the Partnership entered into an agreement to
sell the Children's World daycare center in Lenexa, Kansas to  an
unrelated third party.  On August 14, 2006, the Partnership  sale
closed  with  the  Partnership receiving  net  sale  proceeds  of
$849,224, which resulted in a net gain of $306,488.  At the  time
of  sale,  the  cost  and  related accumulated  depreciation  was
$983,527 and $440,791, respectively.

        During 2006, the Partnership sold its 50% interest in the
Jared  Jewelry  store in Lakewood, Colorado,  in  seven  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $2,382,658, which resulted in
a  net  gain  of  $450,831.   The cost  and  related  accumulated
depreciation  of the interests sold was $2,017,633  and  $85,806,
respectively.

       On November 3, 2006, the Partnership sold its 24% interest
in  the  Garden  Ridge  retail store in Woodlands,  Texas  to  an
unrelated  third  party.   The  Partnership  received  net   sale
proceeds of $2,094,119, which resulted in a net gain of $245,256.
At   the   time   of  sale,  the  cost  and  related  accumulated
depreciation was $1,995,850 and $146,987, respectively.

        On  August 28, 2006, the Partnership sold 6.869%  of  the
Eckerd  drug  store  in Auburn, New York to  an  unrelated  third
party.   The Partnership received net sale proceeds of  $376,203,
which  resulted in a net gain of $76,398.  The cost  and  related
accumulated  depreciation of the interest sold was  $314,206  and
$14,401, respectively.

       During the first nine months of 2007, the Partnership sold
38.8529%  of the Eckerd drug store in Auburn, New York,  in  nine
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,947,905, which
resulted  in  a  net  gain of $252,126.   The  cost  and  related
accumulated depreciation of the interests sold was $1,777,236 and
$81,457, respectively.

        During  the fourth quarter of 2007, the Partnership  sold
its  remaining  4.2781%  interest in the  Eckerd  drug  store  in
Auburn,  New  York to an unrelated third party.  The  Partnership
received  net  sale proceeds of $212,731.  The cost  and  related
accumulated  depreciation of the interest sold was  $195,691  and
$8,969,  respectively.  At December 31, 2006,  the  property  was
classified  as  Real Estate Held for Sale with a  book  value  of
$1,882,501.

        Subsequent to December 31, 2007, the Partnership sold the
KinderCare  daycare center in Westerville, Ohio to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $1,415,000.  At the time of  sale,  the  cost  and
related  accumulated  depreciation  was  $990,261  and  $471,635,
respectively.

        Subsequent to December 31, 2007, the Partnership sold the
KinderCare daycare center in Columbus, Ohio to an unrelated third
party.    The   Partnership  received  net   sale   proceeds   of
approximately  $1,617,000.  At the time of  sale,  the  cost  and
related  accumulated  depreciation was $1,019,202  and  $455,731,
respectively.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Redemption  payments
are paid to redeeming Partners on a quarterly basis.

        For  the  years  ended December 31, 2007  and  2006,  the
Partnership  declared distributions of $2,281,080 and $8,757,620,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions  of  $2,258,269  and  $8,670,043  and  the  General
Partners  received distributions of $22,811 and $87,577  for  the
periods,   respectively.   In  September  2007,  the  Partnership
declared   a  special  distribution  of  net  sale  proceeds   of
$1,717,172.   In  March, June, September and December  2006,  the
Partnership  declared special distributions of net sale  proceeds
of $1,717,172, $505,051, $3,030,303 and $2,525,253, respectively,
which  resulted  in  higher distributions in 2006  and  a  higher
distribution payable at December 31, 2006.

       During 2007 and 2006, the Partnership distributed net sale
proceeds of $1,857,931 and $7,890,117 to the Limited and  General
Partners   as  part  of  their  quarterly  distributions,   which
represented a return of capital of $97.03 and $411.41 per Limited
Partnership Unit, respectively.

        The  Partnership may acquire Units from Limited  Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in  any  year  more than 5%  of  the  number  of  Units
outstanding at the beginning of the year.  In no event shall  the
Partnership  be  obligated to purchase  Units  if,  in  the  sole
discretion  of the Managing General Partner, such purchase  would
impair the capital or operation of the Partnership.

       During 2007, the Partnership did not redeem any Units from
the  Limited Partners.  During 2006, 12 Limited Partners redeemed
a  total of 126 Partnership Units for $75,266 in accordance  with
the  Partnership Agreement.  The Partnership acquired these Units
using Net Cash Flow from operations.  In prior years, a total  of
294  Limited  Partners  redeemed 3,699.92 Partnership  Units  for
$3,087,902.   The  redemptions  increase  the  remaining  Limited
Partners' ownership interest in the Partnership.  As a result  of
these   redemption  payments  and  pursuant  to  the  Partnership
Agreement, the General Partners received distributions of $760 in
2006.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund   continuing   distributions  and  meet  other   Partnership
obligations.

ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.





         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS






Report of Independent Registered Public Accounting Firm

Statement of Net Assets Available for Liquidation at December 31,
2007

Balance Sheet as of December 31, 2006

Statement of Liquidating Activities for the Period From
   October 1, 2007 to December 31, 2007

Statements for the Period From January 1, 2007 to September 30,
2007
   and for the Year Ended December 31, 2006:

     Income

     Cash Flows

     Changes in Partners' Capital

Notes to Financial Statements



     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners:
AEI Real Estate Fund XVIII Limited Partnership
St. Paul, Minnesota

      We  have audited the accompanying balance sheet of AEI Real
Estate  Fund  XVIII  Limited  Partnership  (a  Minnesota  limited
partnership) as of December 31, 2006, and the related  statements
of  income, cash flows and changes in partners' capital  for  the
year  then  ended and the statements of income,  cash  flows  and
changes in partners' capital for the period from January 1,  2007
to September 30, 2007.  We also have audited the statement of net
assets  available for liquidation of AEI Real Estate  Fund  XVIII
Limited  Partnership  as of December 31, 2007,  and  the  related
statement  of liquidating activities for the period from  October
1, 2007 to December 31, 2007.  These financial statements are the
responsibility    of   the   Partnership's    management.     Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

      We conducted our audits in accordance with the standards of
the  Public  Company Accounting Oversight Board (United  States).
Those  standards require that we plan and perform  the  audit  to
obtain   reasonable   assurance  about  whether   the   financial
statements are free of material misstatement.  The company is not
required to have, nor were we engaged to perform, an audit of its
internal  control over financial reporting.  Our  audit  included
consideration of internal control over financial reporting  as  a
basis for designing audit procedures that are appropriate in  the
circumstances, but not for the purpose of expressing  an  opinion
on  the  effectiveness  of the company's  internal  control  over
financial  reporting.  Accordingly, we express no  such  opinion.
An  audit  also  includes examining, on a  test  basis,  evidence
supporting   the  amounts  and  disclosures  in   the   financial
statements,   assessing  the  accounting  principles   used   and
significant  estimates made by management, as well as  evaluating
the  overall  financial statement presentation.  We believe  that
our audits provide a reasonable basis for our opinion.

      As  described in the Notes to the financial statements, the
General   Partners  of  AEI  Real  Estate  Fund   XVIII   Limited
Partnership anticipate the liquidation of the Partnership  during
2008.   Because liquidation is imminent, the Partnership  changed
its  basis of accounting after September 30, 2007, from the going
concern basis to the liquidation basis.

      In our opinion, the financial statements referred to in the
first  paragraph  present fairly, in all material  respects,  the
financial  position  of  AEI  Real  Estate  Fund  XVIII   Limited
Partnership  as  of  December 31, 2006, and the  results  of  its
operations and its cash flows for the year then ended and for the
period  from  January 1, 2007, to September  30,  2007,  its  net
assets available for liquidation as of December 31, 2007, and the
changes  in net assets in liquidation for the period from October
1,  2007  to December 31, 2007, in conformity with U.S. generally
accepted accounting principles applied on the bases of accounting
described in the preceding paragraph.



                        /s/Boulay, Heutmaker, Zibell & Co. P.L.L.P.
                                Certified Public Accountants

Minneapolis, Minnesota
March 24, 2008

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
        STATEMENT OF NET ASSETS AVAILABLE FOR LIQUIDATION
                        DECEMBER 31, 2007





ASSETS:
  Cash and Cash Equivalents                         $   904,400
  Receivables                                             6,500
  Investments in Real Estate                          4,656,400
                                                     -----------
          Total Assets                                5,567,300
                                                     -----------

LIABILITIES:
  Payable to AEI Fund Management, Inc.                   24,536
  Distributions Payable                                 115,890
  Unearned Rent                                          21,945
                                                     -----------
          Total Liabilities                             162,371
                                                     -----------
      NET ASSETS (PARTNERS' CAPITAL) IN LIQUIDATION,
       including 18,957 Limited Partnership Units
       outstanding                                  $ 5,404,929
                                                     ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                          BALANCE SHEET
                        DECEMBER 31, 2006

                             ASSETS


CURRENT ASSETS:
  Cash and Cash Equivalents                         $ 3,208,225

INVESTMENTS IN REAL ESTATE:
  Land                                                  806,946
  Buildings and Equipment                             2,782,775
  Accumulated Depreciation                           (1,401,177)
                                                     -----------
                                                      2,188,544
  Real Estate Held for Sale                           1,882,501
                                                     -----------
      Net Investments in Real Estate                  4,071,045
                                                     -----------
          Total Assets                              $ 7,279,270
                                                     ===========

                LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.              $    15,479
  Distributions Payable                               2,713,680
  Unearned Rent                                          33,242
                                                     -----------
      Total Current Liabilities                       2,762,401
                                                     -----------
PARTNERS' CAPITAL:
  General Partners                                       15,006
  Limited Partners, $1,000 per Unit;
      30,000 Units authorized; 22,783 Issued;
      18,957 Units outstanding                        4,501,863
                                                     -----------
      Total Partners' Capital                         4,516,869
                                                     -----------
         Total  Liabilities and Partners' Capital   $ 7,279,270
                                                     ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
               STATEMENT OF LIQUIDATING ACTIVITIES
    FOR THE PERIOD FROM OCTOBER 1, 2007 TO DECEMBER 31, 2007




SOURCES OF ADDITIONAL CASH:
  Rent                                              $    97,617
  Interest Income                                         9,417
  Proceeds from Sale of Real Estate                     212,731
                                                     -----------
      Total Sources of Additional Cash                  319,765
                                                     -----------

USES OF ADDITIONAL CASH:
  Partnership Administration - Affiliates                20,759
  Partnership Administration and Property
     Management - Unrelated Parties                      33,231
  Distributions to Partners                           1,864,996
                                                     -----------
      Total Uses of Additional Cash                   1,918,986
                                                     -----------
DECREASE IN NET ASSETS IN LIQUIDATION
   BEFORE ADJUSTMENTS                                (1,599,221)
                                                     -----------

ADJUSTMENTS OF ESTIMATED VALUES:
Increase in Net Realizable values of:
     Real Estate                                      2,529,841
     Payable to AEI Fund Management, Inc.                15,624
     Distributions Payable                            1,746,507
     Unearned Rent                                        2,833
     Net Book Value, as of September 30, 2007,
     of Real  Estate Sold                              (186,722)
                                                     -----------
        Total Adjustment of Estimated Values          4,108,083
                                                     -----------

INCREASE IN NET ASSETS IN LIQUIDATION                 2,508,862

BEGINNING NET ASSETS IN LIQUIDATION
   (PARTNERS' CAPITAL AT SEPTEMBER 30, 2007)          2,896,067
                                                     -----------
ENDING NET ASSETS IN LIQUIDATION                    $ 5,404,929
                                                     ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                       STATEMENT OF INCOME
    FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007
            AND FOR THE YEAR ENDED DECEMBER 31, 2006


                                                   2007           2006

INTEREST INCOME                                $    57,656    $   104,767

INCOME FROM DISCONTINUED OPERATIONS:
  Rental Income                                    414,287      1,013,641
  Partnership Administration - Affiliates          (79,128)      (129,221)
  Partnership Administration and Property
     Management - Unrelated Parties                (41,167)       (45,658)
  Depreciation                                     (61,985)      (185,695)
  Gain on Sale of Real Estate                      252,126      1,563,943
                                                -----------    -----------
     Total Income from Discontinued Operations     484,133      2,217,010
                                                -----------    -----------

NET INCOME                                     $   541,789    $ 2,321,777
                                                ===========    ===========

NET INCOME ALLOCATED:
  General Partners                             $     9,104    $    85,800
  Limited Partners                                 532,685      2,235,977
                                                -----------    -----------
                                               $   541,789    $ 2,321,777
                                                ===========    ===========

INCOME PER LIMITED PARTNERSHIP UNIT:
   Continuing Operations                       $      3.01    $      5.46
   Discontinued Operations                           25.09         112.25
                                                -----------    -----------
         Total                                 $     28.10    $    117.71
                                                ===========    ===========

Weighted Average Units Outstanding                  18,957         18,995
                                                ===========    ===========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                     STATEMENT OF CASH FLOWS
    FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007
            AND FOR THE YEAR ENDED DECEMBER 31, 2006

                                                     2007          2006

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                     $   541,789   $ 2,321,777

  Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                                     61,985       185,695
     Gain on Sale of Real Estate                    (252,126)   (1,563,943)
     Increase in Receivables                          (6,500)            0
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     24,681       (41,076)
     Decrease in Unearned Rent                        (8,464)      (11,475)
                                                  -----------   -----------
       Total Adjustments                            (180,424)   (1,430,799)
                                                  -----------   -----------
       Net Cash Provided By
           Operating Activities                      361,365       890,978
                                                  -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from Sale of Real Estate                1,947,905     7,344,828
                                                  -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Decrease in Distributions Payable                 (851,283)     (901,134)
  Distributions to Partners                       (2,162,591)   (8,757,620)
  Redemption Payments                                      0       (76,026)
                                                  -----------   -----------
       Net Cash Used For
         Financing Activities                     (3,013,874)   (9,734,780)
                                                  -----------   -----------
NET DECREASE IN CASH
   AND CASH EQUIVALENTS                             (704,604)   (1,498,974)

CASH AND CASH EQUIVALENTS, beginning of period     3,208,225     4,707,199
                                                  -----------   -----------
CASH AND CASH EQUIVALENTS, end of period         $ 2,503,621   $ 3,208,225
                                                  ===========   ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
    FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007
            AND FOR THE YEAR ENDED DECEMBER 31, 2006


                                                                  Limited
                                                                Partnership
                             General    Limited                    Units
                             Partners   Partners      Total     Outstanding


BALANCE, December 31, 2005  $ 17,543  $11,011,195  $11,028,738   19,083.13

  Distributions              (87,577)  (8,670,043)  (8,757,620)

  Redemption Payments           (760)     (75,266)     (76,026)    (126.00)

  Net Income                  85,800    2,235,977    2,321,777
                             --------  ----------   ----------   ---------
BALANCE, December 31, 2006    15,006    4,501,863    4,516,869   18,957.13

  Distributions              (21,626)  (2,140,965)  (2,162,591)

  Net Income                   9,104      532,685      541,789
                              --------  ----------   ----------  ---------
BALANCE, September 30, 2007 $  2,484  $ 2,893,583  $ 2,896,067   18,957.13
                             ========  ==========   ==========   =========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(1)  Organization -

     AEI Real Estate Fund XVIII Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management XVIII, Inc.  (AFM),  the  Managing
     General Partner.  Robert P. Johnson, the President and  sole
     director  of AFM, serves as the Individual General  Partner.
     AFM  is a wholly owned subsidiary of AEI Capital Corporation
     of  which Mr. Johnson is the majority shareholder.  AEI Fund
     Management,  Inc. (AEI), an affiliate of AFM,  performs  the
     administrative and operating functions for the Partnership.

     The   terms  of  the  Partnership  offering  called  for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced  operations  on February  15,  1989  when  minimum
     subscriptions    of   1,500   Limited   Partnership    Units
     ($1,500,000)   were   accepted.   The  offering   terminated
     December  4, 1990 when the extended offering period expired.
     The Partnership received subscriptions for 22,783.05 Limited
     Partnership   Units.   Under  the  terms  of   the   Limited
     Partnership  Agreement,  the Limited  Partners  and  General
     Partners  contributed  funds  of  $22,783,050,  and  $1,000,
     respectively.

     During operations, any Net Cash Flow, as defined, which  the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum. Distributions to Limited Partners will  be  made
     pro rata by Units.

     Any  Net  Proceeds  of Sale as defined,  from  the  sale  or
     financing of properties which the General Partners determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner:  (i) first, 99%  to  the
     Limited  Partners and l% to the General Partners  until  the
     Limited  Partners  receive an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 6%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash Flow; (ii) next, 99% to the Limited Partners
     and  1%  to the General Partners until the Limited  Partners
     receive  an  amount equal to 14% of their  Adjusted  Capital
     Contribution  per annum, cumulative but not  compounded,  to
     the  extent not previously distributed; (iii) next,  to  the
     General  Partners  until  cumulative  distributions  to  the
     General  Partners under Items (ii) and (iii)  equal  15%  of
     cumulative  distributions to all Partners under  Items  (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(1)  Organization - (Continued)

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent,  Net  Cash Flow is distributed to the  Partners  for
     such year.  Any additional profits will be allocated 90%  to
     the Limited Partners and 10% to the General Partners. In the
     event  no  Net  Cash  Flow  is distributed  to  the  Limited
     Partners,  90%  of each item of income, gain or  credit  for
     each  respective  year  shall be allocated  to  the  Limited
     Partners,  and 10% of each such item shall be  allocated  to
     the  General Partners.  Net losses from operations  will  be
     allocated 98% to the Limited Partners and 2% to the  General
     Partners.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with the Partnership Agreement as  follows:  (i)
     first,  to  those  partners with deficit balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the Limited  Partners
     and  1%  to the General Partners until the aggregate balance
     in  the Limited Partners' capital accounts equals the sum of
     the Limited Partners' Adjusted Capital Contributions plus an
     amount  equal to 14% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated; (iii) third, to the General  Partners
     until  cumulative allocations to the General Partners  equal
     15%  of cumulative allocations.  Any remaining balance  will
     be  allocated  85% to the Limited Partners and  15%  to  the
     General  Partners.   Losses will be  allocated  98%  to  the
     Limited Partners and 2% to the General Partners.

     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.

     In  the second quarter of 2008, the Managing General Partner
     plans  to  solicit  by  mail a proxy statement  seeking  the
     consent of the Limited Partners, as required by Section  6.1
     of   the  Partnership  Agreement,  to  initiate  the   final
     disposition,  liquidation and distribution  of  all  of  the
     Partnership's  properties and assets within the  next  year.
     If  a majority of the voting Units are voted in favor of the
     proposal, the Managing General Partner will proceed with the
     planned  liquidation of the Partnership.  If the Partnership
     sells  its  remaining  property  in  2008,  the  Partnership
     anticipates liquidation to occur by December 31, 2008.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       Because   liquidation  is  anticipated,  the   Partnership
       changed its basis of accounting after September 30,  2007,
       from  the  going  concern basis to the liquidation  basis.
       Effective  October 1, 2007, the Partnership  measures  its
       assets and liabilities at the amounts of cash expected  in
       liquidation  and  reports changes in estimates  when  they
       are   known.    The   accounts  of  the  Partnership   are
       maintained  on  the accrual basis of accounting  for  both
       federal   income  tax  purposes  and  financial  reporting
       purposes.

     Accounting Estimates

       Management  uses  estimates and assumptions  in  preparing
       these  financial statements in accordance  with  generally
       accepted  accounting  principles.   Those  estimates   and
       assumptions may affect the reported amounts of assets  and
       liabilities,  the  disclosure  of  contingent  assets  and
       liabilities,  and  the  reported  revenues  and  expenses.
       Actual results could differ from those estimates.

       The  Partnership regularly assesses whether market  events
       and conditions indicate that it is reasonably possible  to
       recover  the carrying amounts of its investments  in  real
       estate  from  future operations and sales.   A  change  in
       those  market events and conditions could have a  material
       effect on the carrying amount of its real estate.

     Cash Concentrations of Credit Risk

       The  Partnership's  cash  is deposited  primarily  in  one
       financial institution and at times during the year it  may
       exceed FDIC insurance limits.

     Statement of Cash Flows

       For  purposes  of  reporting cash  flows,  cash  and  cash
       equivalents  may include cash in checking,  cash  invested
       in   money   market  accounts,  certificates  of  deposit,
       federal  agency notes and commercial paper with a term  of
       three months or less.

     Receivables

       Credit  terms are extended to tenants in the normal course
       of  business.   The  Partnership performs  ongoing  credit
       evaluations  of  its customers' financial  condition  and,
       generally, requires no collateral.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(2)  Summary of Significant Accounting Policies - (Continued)

       Receivables   are   recorded  at   their   estimated   net
       realizable  value.  The Partnership follows  a  policy  of
       providing  an  allowance for doubtful  accounts;  however,
       based on historical experience, and its evaluation of  the
       current status of receivables, the Partnership is  of  the
       belief  that  such  accounts will be  collectible  in  all
       material  respects and thus an allowance is not necessary.
       Accounts  are considered past due if payment is  not  made
       on  a  timely  basis in accordance with the  Partnership's
       credit  terms.   Receivables considered uncollectible  are
       written off.

     Income Taxes

       The  income or loss of the Partnership for federal  income
       tax  reporting  purposes is includable in the  income  tax
       returns  of the partners.  In general, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.

       The   tax   return   and  the  amount   of   distributable
       Partnership  income or loss are subject to examination  by
       federal   and  state  taxing  authorities.   If  such   an
       examination    results   in   changes   to   distributable
       Partnership  income  or loss, the taxable  income  of  the
       partners would be adjusted accordingly.

     Real Estate

       The  Partnership's real estate is leased under triple  net
       leases,  classified  as  operating  leases.   The   leases
       provide  for  base  annual  rental  payments  payable   in
       monthly  installments.  The Partnership recognizes  rental
       revenue  according to the terms of the individual  leases.
       For  leases  which  contain stated rental  increases,  the
       increases  are  recognized in the year in which  they  are
       effective.   Contingent  rental  payments  are  recognized
       when  the  contingencies on which the payments  are  based
       are  satisfied  and the rental payments become  due  under
       the terms of the leases.

       Real  estate is recorded at cost at December 31, 2006  and
       at  estimated net realizable value at December  31,  2007.
       Through  September 30, 2007, the Partnership compared  the
       carrying   amount  of  its  properties  to  the  estimated
       probability-weighted future cash flows expected to  result
       from  the property and its eventual disposition.   If  the
       sum  of  the expected future cash flows is less  than  the
       carrying   amount   of  the  property,   the   Partnership
       recognizes an impairment loss by the amount by  which  the
       carrying amount of the property exceeds the fair value  of
       the property.

       The  Partnership  has capitalized as Investments  in  Real
       Estate   certain   costs  incurred  in  the   review   and
       acquisition  of the properties.  The costs were  allocated
       to the land, buildings and equipment.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(2)  Summary of Significant Accounting Policies - (Continued)

       Through  September 30, 2007, the buildings  and  equipment
       of  the  Partnership were depreciated using the  straight-
       line  method  for  financial reporting purposes  based  on
       estimated   useful  lives  of  30  years  and   10   years
       respectively.

       In  accordance  with  Statement  of  Financial  Accounting
       Standards  No.  144,  Accounting  for  the  Impairment  or
       Disposal  of Long-Lived Assets, upon complete disposal  of
       a  property or classification of a property as Real Estate
       Held  for  Sale,  the Partnership includes  the  operating
       results   and   sale  of  the  property  in   discontinued
       operations.   In  addition,  the Partnership  reclassifies
       the  prior  periods' operating results of the property  to
       discontinued operations.

       The  Partnership accounts for properties owned as tenants-
       in-common  with  affiliated Partnerships 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  Partnership's  percentage
       share  of  the  properties' land, building and  equipment,
       liabilities, revenues and expenses.

       The  Partnership's properties are subject to environmental
       laws  and  regulations  adopted  by  various  governmental
       entities  in the jurisdiction in which the properties  are
       located.   These  laws could require  the  Partnership  to
       investigate  and remediate the effects of the  release  or
       disposal  of  hazardous materials at  these  locations  if
       found.  For each property, an environmental assessment  is
       completed  prior to acquisition.  In addition,  the  lease
       agreements  typically  strictly prohibit  the  production,
       handling, or storage of hazardous materials (except  where
       incidental  to  the  tenant's  business  such  as  use  of
       cleaning  supplies)  in violation  of  applicable  law  to
       restrict  environmental and other  damage.   Environmental
       liabilities  are  recorded  when  it  is  determined   the
       liability  is  probable and the costs  can  reasonably  be
       estimated.   There were no environmental issues  noted  or
       liabilities recorded at December 31, 2007 and 2006.

     Reclassification

       Certain  items related to discontinued operations  in  the
       prior  year's  financial statements have been reclassified
       to  conform to 2007 presentation.  These reclassifications
       had  no  effect on Partners' capital, net income  or  cash
       flows.

     Recently Issued Accounting Pronouncements

       Management  has  reviewed recently  issued,  but  not  yet
       effective,  accounting pronouncements and does not  expect
       the  implementation  of  these pronouncements  to  have  a
       significant   effect   on   the  Partnership's   financial
       statements.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(3)  Related Party Transactions -

     The  Partnership  owns a 43.9634% interest in  a  Tumbleweed
     restaurant.   The remaining interests in this  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership,  an  affiliate  of  the  Partnership,  and   an
     unrelated third party.  The Partnership owned a 24% interest
     in  a Garden Ridge retail store.  The remaining interests in
     this  property were owned by AEI Income & Growth  Fund  XXII
     Limited  Partnership and AEI Income & Growth  Fund  24  LLC,
     affiliates of the Partnership, and unrelated third  parties.
     The  Partnership  owned a 50% interest in  a  Jared  Jewelry
     store.   AEI  Net  Lease Income & Growth  Fund  XIX  Limited
     Partnership owned a 50% interest in this property until  the
     interest was sold, in a series of transactions, to unrelated
     third parties in 2006 and 2007.  The Partnership owned a 50%
     interest  in an Eckerd drug store.  AEI Net Lease  Income  &
     Growth Fund XIX Limited Partnership owned a 50% interest  in
     this  property until the interest was sold, in a  series  of
     transactions, to unrelated third parties in 2007.

     AEI   and  AFM  received  the  following  compensation   and
     reimbursements for costs and expenses from the Partnership:

                                           Total Incurred by the Partnership
                                            for the Years Ended December 31

                                                         2007         2006
a.AEI and AFM are reimbursed for all costs incurred in
  connection with managing the Partnership's operations,
  maintaining the Partnership's books and communicating
  the results of operations to the Limited Partners.    $  99,887  $ 129,221
                                                         ========   ========
b.AEI and AFM are reimbursed for all direct expenses they
  have paid on the Partnership's behalf to third parties
  relating to Partnership administration and property
  management.  These expenses included printing costs,
  legal and filing fees, direct administrative costs,
  outside audit costs, taxes, insurance and other
  property costs.                                       $  58,774  $  45,658
                                                         ========   ========
c.AEI is reimbursed for all costs incurred in connection
  with the sale of property.                            $ 112,639  $ 165,316
                                                         ========   ========


     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance due for the services described in 3a, b and c.  This
     balance is non-interest bearing and unsecured and is  to  be
     paid in the normal course of business.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     under  triple  net  leases, classified as operating  leases.
     Under a triple net lease, the tenant is responsible for  all
     real  estate  taxes,  insurance,  maintenance,  repairs  and
     operating  expenses  for  the property.   At  the  time  the
     properties were acquired, the remaining primary lease  terms
     varied from 15 to 20 years.  Most of the leases provide  the
     tenants  with two to three five-year renewal options subject
     to  the same terms and conditions as the primary term.   The
     leases contain rent clauses which entitle the Partnership to
     receive additional rent in future years based on stated rent
     increases.

     The  Partnership's properties are commercial,  single-tenant
     buildings.   The KinderCare daycare center in Blue  Springs,
     Missouri   was  constructed  and  acquired  in  1990.    The
     KinderCare   daycare   center  in  Westerville,   Ohio   was
     constructed   and  acquired  in  1991.   The   Taco   Cabana
     restaurant  in San Antonio, Texas was constructed  in  1984,
     renovated in 1991 and acquired by the Partnership after  the
     renovation.  The KinderCare daycare center in Columbus, Ohio
     was  constructed and acquired in 1992.  The  Tractor  Supply
     Company  store and Champps Americana restaurant in Columbus,
     Ohio were constructed and acquired in 1996.  The Fuddruckers
     restaurant  was  constructed  and  acquired  in  1997.   The
     Tumbleweed restaurant was constructed and acquired in  1998.
     There   have  been  no  costs  capitalized  as  improvements
     subsequent to the acquisitions.

     Effective  with  the  decision to  liquidate,  the  carrying
     amounts  of assets and liabilities were adjusted from  their
     historical bases to the amounts of cash expected from  their
     realization  and settlement.  Because of the expected  short
     liquidation period, the effects of discounting would not  be
     significant  and have been ignored.  At December  31,  2007,
     the  estimated real estate values were based upon comparable
     sales  of  similar  properties, a  subsequent  sale  of  one
     property  and a signed purchase agreement for one  property.
     The  adjustment  increased Investments  in  Real  Estate  by
     $2,529,841.   It  is reasonably possible  that  the  amounts
     expected  to  be  realized in the liquidation  process  will
     change in the near term.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(4)  Investments in Real Estate - (Continued)

     The historical cost and related accumulated depreciation and
     estimated  net  realizable  values  of  the  properties   at
     December 31, 2007 are as follows:

                             Historical Cost Basis      Liquidation Basis
                                                                      Net
                                Buildings and          Accumulated  Realizable
Property                Land      Equipment     Total  Depreciation   Value

KinderCare,
  Blue Springs, MO    $ 162,290  $  628,981 $  791,271  $  373,259  $  550,000
KinderCare,
  Westerville, OH       157,848     832,413    990,261     471,635   1,415,000
Taco Cabana,
  San Antonio, TX        61,004      46,929    107,933      25,041     176,000
KinderCare,
  Columbus, OH          157,569     861,633  1,019,202     455,731   1,617,000
Tractor Supply Company,
  Bristol, VA            31,092      65,673     96,765      26,758     125,000
Champps Americana,
  Columbus, OH            4,373       8,611     12,984       3,352      18,000
Fuddruckers,
  Thornton, CO            3,383       7,310     10,693       2,572      15,400
Tumbleweed,
  Chillicothe, OH       229,387     331,225    560,612     104,814     740,000
                       --------   ---------  ---------   ---------   ---------
                      $ 806,946  $2,782,775 $3,589,721  $1,463,162  $4,656,400
                       ========   =========  =========   =========   =========

     The  Partnership owns a 9.3699% interest in  a  Taco  Cabana
     restaurant  in San Antonio, Texas, a 7.5158% interest  in  a
     Tractor Supply Company store, a .5061% interest in a Champps
     Americana restaurant in Columbus, Ohio and a .7606% interest
     in  a  Fuddruckers restaurant.  The remaining  interests  in
     these  properties are owned by unrelated third parties,  who
     own the property with the Partnership as tenants-in-common.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(4)  Investments in Real Estate - (Continued)

     For  properties owned as of December 31, 2007,  the  minimum
     future rent payments required by the leases are as follows:

                       2008           $  401,136
                       2009              326,101
                       2010              242,257
                       2011              229,142
                       2012              167,905
                       Thereafter         74,100
                                       ---------
                                      $1,440,641
                                       =========

     There were no contingent rents recognized in 2007 and 2006.

(5)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed more than ten percent of the Partnership's total
     rent revenue for the years ended December 31:

      Tenants                 Industry             2007       2006

     KinderCare Learning
        Centers, Inc.        Child Care        $ 346,956   $ 483,751
     Eckerd Corporation      Retail               65,842     176,019
     Tumbleweed, Inc.        Restaurant           65,715         N/A
     Garden Ridge L.P.       Retail                  N/A     147,618
                                                --------   ---------
     Aggregate rent revenue of major tenants   $ 478,513  $  807,388
                                                ========   =========
     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue              93%         80%
                                                ========   =========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(6)  Discontinued Operations -

     In  May  2003, the Partnership entered into an agreement  to
     sell  a Taco Cabana restaurant in San Antonio, Texas to  the
     tenant.  The agreement was extended several times to  enable
     the  tenant  to  complete their due  diligence  and  certain
     negotiations with adjacent land owners.  During  this  time,
     the tenant continued to pay rent and complied with the lease
     obligations.  On January 26, 2006, the sale closed with  the
     Partnership receiving net sale proceeds of $1,642,624, which
     resulted  in a net gain of $484,970.  At the time  of  sale,
     the cost and related accumulated depreciation was $1,406,426
     and $248,772, respectively.

     In  May  2006, the Partnership entered into an agreement  to
     sell  the Children's World daycare center in Lenexa,  Kansas
     to  an  unrelated  third party.  On  August  14,  2006,  the
     Partnership  sale closed with the Partnership receiving  net
     sale  proceeds of $849,224, which resulted in a net gain  of
     $306,488.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation  was   $983,527   and   $440,791,
     respectively.

     During  2006, the Partnership sold its 50% interest  in  the
     Jared Jewelry store in Lakewood, Colorado, in seven separate
     transactions,  to unrelated third parties.  The  Partnership
     received  total  net  sale  proceeds  of  $2,382,658,  which
     resulted  in  a net gain of $450,831.  The cost and  related
     accumulated   depreciation  of  the   interests   sold   was
     $2,017,633 and $85,806, respectively.

     On  November 3, 2006, the Partnership sold its 24%  interest
     in  the Garden Ridge retail store in Woodlands, Texas to  an
     unrelated  third party.  The Partnership received  net  sale
     proceeds  of  $2,094,119, which resulted in a  net  gain  of
     $245,256.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation  was  $1,995,850  and   $146,987,
     respectively.

     On  August  28,  2006, the Partnership sold  6.869%  of  the
     Eckerd drug store in Auburn, New York to an unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $376,203, which resulted in a net gain of $76,398.  The cost
     and  related  accumulated depreciation of the interest  sold
     was $314,206 and $14,401, respectively.

     During  the first nine months of 2007, the Partnership  sold
     38.8529%  of the Eckerd drug store in Auburn, New  York,  in
     nine separate transactions, to unrelated third parties.  The
     Partnership  received total net sale proceeds of $1,947,905,
     which  resulted  in a net gain of $252,126.   The  cost  and
     related  accumulated depreciation of the interests sold  was
     $1,777,236 and $81,457, respectively.

     During the fourth quarter of 2007, the Partnership sold  its
     remaining  4.2781%  interest in the  Eckerd  drug  store  in
     Auburn,   New  York  to  an  unrelated  third  party.    The
     Partnership  received net sale proceeds  of  $212,731.   The
     cost  and  related accumulated depreciation of the  interest
     sold was $195,691 and $8,969, respectively.  At December 31,
     2006,  the property was classified as Real Estate  Held  for
     Sale with a book value of $1,882,501.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(6)  Discontinued Operations - (Continued)

     On  June 30, 2007, the Lease term expired for the KinderCare
     daycare  center  in  Blue  Springs,  Missouri.   The  tenant
     reviewed their operations at the property and decided not to
     enter  into  an agreement to extend the term of  the  Lease.
     The Partnership has listed the property for sale with a real
     estate  broker in the Blue Springs area.  While the property
     is  vacant,  the Partnership is responsible for real  estate
     taxes  and  other  costs  associated  with  maintaining  the
     property.

     Subsequent  to December 31, 2007, the Partnership  sold  the
     KinderCare  daycare  center  in  Westerville,  Ohio  to   an
     unrelated  third party.  The Partnership received  net  sale
     proceeds of approximately $1,415,000.  At the time of  sale,
     the  cost  and related accumulated depreciation was $990,261
     and $471,635, respectively.

     Subsequent  to December 31, 2007, the Partnership  sold  the
     KinderCare daycare center in Columbus, Ohio to an  unrelated
     third party.  The Partnership received net sale proceeds  of
     approximately $1,617,000.  At the time of sale, the cost and
     related   accumulated  depreciation   was   $1,019,202   and
     $455,731, respectively.

     During  2007 and 2006, the Partnership distributed net  sale
     proceeds  of  $1,857,931 and $7,890,117 to the  Limited  and
     General  Partners as part of their quarterly  distributions,
     which  represented a return of capital of $97.03 and $411.41
     per Limited Partnership Unit, respectively.

(7)  Partners' Capital -

     Cash  distributions of $22,811 and $87,577 were made to  the
     General Partners and $2,258,269 and $8,670,043 were made  to
     the  Limited Partners for the years ended December 31,  2007
     and 2006, respectively.  The Limited Partners' distributions
     represent  $119.13 and $456.44 per Limited Partnership  Unit
     outstanding  using 18,957 and 18,995 weighted average  Units
     in 2007 and 2006, respectively.

     As  part  of  the  Limited  Partner distributions  discussed
     above,  the  Partnership distributed net  sale  proceeds  of
     $1,839,352  and  $7,811,216 in 2007 and 2006,  respectively.
     The  distributions  reduced the Limited  Partners'  Adjusted
     Capital Contributions.

     The  Partnership may acquire Units from Limited Partners who
     have  tendered their Units to the Partnership.   Such  Units
     may  be  acquired  at  a discount.  The Partnership  is  not
     obligated to purchase in any year more than 5% of the number
     of  Units outstanding at the beginning of the year.   In  no
     event  shall the Partnership be obligated to purchase  Units
     if,  in the sole discretion of the Managing General Partner,
     such  purchase would impair the capital or operation of  the
     Partnership.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(7)  Partners' Capital - (Continued)

     During  2007, the Partnership did not redeem any Units  from
     the  Limited  Partners.  During 2006,  12  Limited  Partners
     redeemed  a  total of 126 Partnership Units for  $75,266  in
     accordance  with the Partnership Agreement.  The Partnership
     acquired  these  Units using Net Cash Flow from  operations.
     The  redemptions  increase the remaining  Limited  Partners'
     ownership interest in the Partnership.  As a result of these
     redemption   payments  and  pursuant  to   the   Partnership
     Agreement,  the  General Partners received distributions  of
     $760 in 2006.

     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $240.72 per original $1,000 invested.

(8)  Income Taxes -

     With  the  change in the Partnership's basis  of  accounting
     from  the  going  concern  basis to the  liquidation  basis,
     effective October 1, 2007, the Partnership no longer reports
     Net   Income   after  this  date.   The   following   is   a
     reconciliation   of  net  income  for  financial   reporting
     purposes  to income reported for federal income tax purposes
     for the years ended December 31:
                                                2007         2006
     Net Income for Financial Reporting
      Purposes - Going Concern Basis        $  541,789    $2,321,777

     Decrease in Net Assets in Liquidation
      Before Adjustment                     (1,599,221)            0

     Liquidation Basis of Accounting Not
      Recognized for Tax Reporting Purposes  1,696,731             0

     Depreciation for Tax Purposes (Over) Under
       Depreciation  for Financial Reporting
       Purposes                                (27,809)       11,477

     Income Accrued for Tax Purposes Under
       Income  for  Financial Reporting
       Purposes                                (11,297)      (11,476)

     Gain on Sale of Real Estate for Tax Purposes
        Over (Under) Gain for Financial Reporting
        Purposes                                   632       (54,822)
                                             ----------    ----------
           Taxable Income to Partners       $  600,825    $2,266,956
                                             ==========    ==========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2007 AND 2006

(8)  Income Taxes - (Continued)

     The   following  is  a  reconciliation  of  Net  Assets   in
     Liquidation  for financial reporting purposes  to  Partners'
     Capital  reported  for federal income tax purposes  for  the
     years ended December 31:
                                                       2007         2006
     Net Assets in Liquidation / Partners' Capital
      for Financial Reporting Purposes              $5,404,929   $4,516,869

     Adjusted Tax Basis of Investments in Real Estate
      Over (Under) Net Investments in Real Estate
         for    Financial   Reporting   Purposes    (2,423,564)     133,454

     Income Accrued for Tax Purposes Over
      Income for Financial Reporting Purposes           21,945       33,242

     Syndication Costs Treated as Reduction
       of Capital for Financial Reporting Purposes   3,336,442    3,336,442
                                                     ---------    ---------
     Partners'  Capital for Tax Reporting Purposes  $6,339,752   $8,020,007
                                                     =========    =========

(9)  Fair Value of Financial Instruments -

     The estimated fair values of the financial instruments, none
     of  which  are held for trading purposes, are as follows  at
     December 31:

                                   2007                   2006
                          Carrying      Fair    Carrying       Fair
                           Amount      Value     Amount        Value

     Money Market Funds   $904,400   $904,400  $3,208,225    $3,208,225
                           -------    -------   ---------     ---------
      Total Cash and
        Cash Equivalents  $904,400   $904,400  $3,208,225    $3,208,225
                          ========    =======   =========     =========


ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
        ACCOUNTING AND FINANCIAL DISCLOSURE.

       None.

ITEM 8AT.CONTROLS AND PROCEDURES.

       (a)  Disclosure Controls and Procedures.

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the  Managing  General Partner of the Partnership  evaluated  the
effectiveness  of  the  design and operation  of  our  disclosure
controls  and procedures (as defined in Rule 13a-15(e) under  the
Securities  Exchange  Act of 1934 (the "Exchange  Act")).   Based
upon  that evaluation, the President and Chief Financial  Officer
of  the Managing General Partner concluded that, as of the end of
the  period  covered by this report, our disclosure controls  and
procedures  were effective in ensuring that information  required
to be disclosed by us in the reports that we file or submit under
the  Exchange Act is recorded, processed, summarized and reported
within  the time periods specified in applicable rules and  forms
and  that  such  information is accumulated and  communicated  to
management,  including the President and Chief Financial  Officer
of  the  Managing General Partner, in a manner that allows timely
decisions regarding required disclosure.

       (b)  Internal Control Over Financial Reporting.

       (i) Management's Report on Internal Control Over Financial
Reporting.  The Managing General Partner, through its management,
is responsible for establishing and maintaining adequate internal
control  over  our financial reporting, as defined in  Rule  13a-
15(f) under the Exchange Act, and for performing an assessment of
the   effectiveness  of  our  internal  control  over   financial
reporting  as  of  December  31,  2007.   Internal  control  over
financial  reporting is a process designed to provide  reasonable
assurance  regarding the reliability of financial  reporting  and
the preparation of financial statements for external purposes  in
accordance  with  generally accepted accounting principles.   Our
system  of  internal  control over financial  reporting  includes
those policies and procedures that (i) pertain to the maintenance
of  records  that,  in reasonable detail, accurately  and  fairly
reflect  the transactions and dispositions of the assets  of  the
Partnership;  (ii) provide reasonable assurance that transactions
are  recorded  as  necessary to permit preparation  of  financial
statements  in  accordance  with  generally  accepted  accounting
principles, and that receipts and expenditures of the Partnership
are  being  made  only  in  accordance  with  authorizations   of
management  of  the Managing General Partner; and  (iii)  provide
reasonable assurance regarding prevention or timely detection  of
unauthorized   acquisition,   use,   or   disposition   of    the
Partnership's  assets that could have a material  effect  on  the
financial statements.

        Management  of the Managing General Partner performed  an
assessment  of  the  effectiveness of our internal  control  over
financial  reporting as of December 31, 2007 based upon  criteria
in  Internal Control-Integrated Framework issued by the Committee
of  Sponsoring Organizations of the Treadway Commission ("COSO").
Based  on  our  assessment, management of  the  Managing  General
Partner  determined  that  our internal  control  over  financial
reporting  was  effective as of December 31, 2007  based  on  the
criteria in Internal Control-Integrated Framework issued  by  the
COSO.


ITEM 8AT.CONTROLS AND PROCEDURES. (Continued)

        This annual report does not include an attestation report
of  our  registered  public accounting  firm  regarding  internal
control  over financial reporting.  Management's report  was  not
subject  to attestation by our registered public accounting  firm
pursuant  to  temporary  rules  of the  Securities  and  Exchange
Commission that permit us to provide only management's report  in
this annual report.

         (ii)    Changes  in  Internal  Control  Over   Financial
Reporting.  During the most recent period covered by this report,
there  has  been no change in our internal control over financial
reporting  (as defined in Rule 13a-15(f) under the Exchange  Act)
that  has  materially  affected,  or  is  reasonably  likely   to
materially affect, our internal control over financial reporting.

ITEM 8B.  OTHER INFORMATION.

       None.


                            PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
        CONTROL PERSONS AND CORPORATE GOVERNANCE;
        COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
manage  and  control the Partnership's affairs and  have  general
responsibility  and  the  ultimate  authority  in   all   matters
affecting  the Partnership's business.  The General Partners  are
AEI  Fund  Management  XVIII, Inc. (AFM),  the  Managing  General
Partner,   and  Robert  P.  Johnson,  Chief  Executive   Officer,
President  and  sole  director  of AFM,  the  Individual  General
Partner.   AFM  is  a  wholly  owned subsidiary  of  AEI  Capital
Corporation  of  which  Mr. Johnson is the majority  shareholder.
AFM  has only one senior financial executive, its Chief Financial
Officer.   The  Chief Financial Officer reports directly  to  Mr.
Johnson  and  is  accountable for his  actions  to  Mr.  Johnson.
Although Mr. Johnson and AFM require that all of their personnel,
including  the  Chief  Financial Officer, engage  in  honest  and
ethical  conduct,  ensure  full,  fair,  accurate,  timely,   and
understandable    disclosure,   comply   with   all    applicable
governmental  laws,  rules and regulations,  and  report  to  Mr.
Johnson   any  deviation  from  these  principles,  because   the
organization  is  composed of only approximately 35  individuals,
because  the  management of a partnership by an entity  that  has
different  interests in distributions and income  than  investors
involves numerous conflicts of interest that must be resolved  on
a  daily  basis, and because the ultimate decision maker  in  all
instances  is Mr. Johnson, AFM has not adopted a formal  code  of
conduct.   Instead,  the materials pursuant  to  which  investors
purchase Units disclose these conflicts of interest in detail and
Mr.  Johnson,  as  the  CEO and sole director  of  AFM,  resolves
conflicts  to  the  best  of  his ability,  consistent  with  his
fiduciary obligations to AFM and the fiduciary obligations of AFM
to  the  Partnership.  The director and officers of  AFM  are  as
follows:

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
        CONTROL PERSONS AND CORPORATE GOVERNANCE;
        COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT. (Continued)

        Robert  P.  Johnson, age 63, is Chief Executive  Officer,
President  and  sole director and has held these positions  since
the  formation of AFM in September 1988, and has been elected  to
continue  in these positions until December 2008.  From  1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing in limited partnership  investments.   In
that capacity, he has been involved in the development, analysis,
marketing   and  management  of  public  and  private  investment
programs investing in net lease properties as well as public  and
private  investment  programs investing  in  energy  development.
Since 1971, Mr. Johnson has been the president, a director and  a
registered principal of AEI Securities, Inc., which is registered
with  the SEC as a securities broker-dealer, is a member  of  the
Financial Industry Regulatory Authority (FINRA) and is  a  member
of  the  Security Investors Protection Corporation  (SIPC).   Mr.
Johnson   has  been  president,  a  director  and  the  principal
shareholder   of  AEI  Fund  Management,  Inc.,  a  real   estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in ten limited partnerships and a managing member in five LLCs.

        Patrick  W.  Keene,  age 48, is Chief Financial  Officer,
Treasurer  and  Secretary  and has  held  these  positions  since
January  22,  2003  and  has been elected to  continue  in  these
positions  until December 2008.  Mr. Keene has been  employed  by
AEI  Fund  Management, Inc. and affiliated entities  since  1987.
Prior  to being elected to the positions above, he was Controller
of  the various entities.  From 1982 to 1986, Mr. Keene was  with
KPMG  Peat  Marwick  Certified Public Accountants,  first  as  an
auditor and later as a tax manager.  Mr. Keene is responsible for
all accounting functions of AFM and the registrant.

       Since Mr. Johnson serves as the Individual General Partner
of  the Partnership, as well as the sole director of AFM, all  of
the  duties  that  might be assigned to an  audit  committee  are
assigned  to Mr. Johnson.  Mr. Johnson is not an audit  committee
financial expert, as defined.  As an officer and majority  owner,
through  a parent company, of AFM, and as the Individual  General
Partner, Mr. Johnson is not a "disinterested director" and may be
subject to a number of conflicts of interests in his capacity  as
sole director of AFM.

        Before the independent auditors are engaged, Mr. Johnson,
as the sole director of AFM, approves all audit-related fees, and
all permissible nonaudit fees, for services of our auditors.

Section 16(a) Beneficial Ownership Reporting Compliance

        Under federal securities laws, the directors and officers
of  the  General  Partner of the Partnership, and any  beneficial
owner  of  more than 10% of a class of equity securities  of  the
Partnership,  are  required  to report  their  ownership  of  the
Partnership's equity securities and any changes in such ownership
to  the  Securities  and Exchange Commission (the  "Commission").
Specific due dates for these reports have been established by the
Commission, and the Partnership is required to disclose  in  this
Annual Report on 10-KSB any delinquent filing of such reports and
any  failure  to file such reports during the fiscal  year  ended
December  31, 2007.  Based upon information provided by  officers
and directors of the General Partner, all officers, directors and
10% owners filed all reports on a timely basis in the 2007 fiscal
year.

ITEM 10.   EXECUTIVE COMPENSATION.

        The General Partner and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost for services performed on behalf of the registrant is actual
time  spent  performing such services plus  an  overhead  burden.
These  services include organizing the registrant  and  arranging
for  the  offer  and  sale  of Units,  reviewing  properties  for
acquisition and rendering administrative, property management and
property  sales services.  The amount and nature of such payments
are detailed in Item 12 of this annual report on Form 10-KSB.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

        The following table sets forth information pertaining  to
the   ownership  of  the  Units  by  each  person  known  by  the
Partnership to beneficially own 5% or more of the Units, by  each
General  Partner, and by each officer or director of the Managing
General Partner as of February 29, 2008:

     Name and Address                   Number of     Percent
   of Beneficial Owner                  Units Held    of Class

   AEI Fund Management XVIII, Inc.          0          0.00%
   Robert P. Johnson                        5          0.03%
   Patrick W. Keene                         0          0.00%

   Address for all:
   1300 Wells Fargo Place
   30 East 7th Street, St. Paul, Minnesota 55101

The  persons  set forth in the preceding table hold  sole  voting
power  and power of disposition with respect to all of the  Units
set forth opposite their names.  The General Partners know of  no
holders of more than 5% of the outstanding Units.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.

        The  registrant,  AFM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the General Partner of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations set forth in the Limited Partnership Agreement of the
registrant.   Reference  is  made to  Note  3  of  the  Financial
Statements,   as  presented,  and  is  incorporated   herein   by
reference,  for  details of related party  transactions  for  the
years ended December 31, 2007 and 2006.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.  (Continued)

        Neither the registrant, nor the Managing General  Partner
of  the  registrant, has a board of directors consisting  of  any
members who are "independent."  The sole director of the Managing
General  Partner,  Robert  P. Johnson,  is  also  the  Individual
General  Partner  of the registrant, and is the  Chief  Executive
Officer,  and  indirectly the principal owner,  of  the  Managing
General  Partner.  Accordingly, there is no disinterested  board,
or   other   functioning   body,  that  reviews   related   party
transactions, or the transactions between the registrant and  the
General  Partners,  except as performed in  connection  with  the
audit of its financial statements.

        The  limitations  included in the  Partnership  Agreement
require   that  the  cumulative  reimbursements  to  the  General
Partners  and  their affiliates for administrative  expenses  not
allowed under the NASAA Guidelines ("Guidelines") will not exceed
the  sum of (i) the front-end fees allowed by the Guidelines less
the  front-end fees paid by the Partnership, (ii) the  cumulative
property management fees allowed by the Guidelines but not  paid,
(iii)  any real estate commission allowed by the Guidelines,  and
(iv)  10%  of  Net  Cash  Flow less the Net  Cash  Flow  actually
distributed to the General Partners.  The administrative expenses
not  allowed under the Guidelines include a controlling  person's
salary  and  fringe  benefits,  rent  and  depreciation.   As  of
December  31, 2007, the cumulative reimbursements to the  General
Partners and their affiliates did not exceed those amounts.

        The following table sets forth the forms of compensation,
distributions  and cost reimbursements paid by the registrant  to
the  General Partners or their Affiliates in connection with  the
operation  of  the Fund and its properties for  the  period  from
inception through December 31, 2007.
                                                         Amount Incurred
Person or Entity                                         From Inception
 Receiving                   Form and Method         (September 20, 1988) to
Compensation                 of Compensation            December 31, 2007

AEI Securities, Inc.  Selling Commissions equal to 7%       $2,278,305
                      of proceeds plus a 3% nonaccountable
                      expense allowance, most of which was
                      reallowed to Participating Dealers.

General Partners and  Reimbursement at Cost for other       $1,064,137
Affiliates            Organization and Offering Costs.

General Partners and  Reimbursement at Cost for all         $  642,892
Affiliates            Acquisition Expenses.

General Partners and  Reimbursement at Cost for all         $4,284,712
Affiliates            Administrative Expenses attributable
                      to the Fund, including all expenses
                      related to management of the Fund's
                      properties and all other transfer agency,
                      reporting, partner relations and other
                      administrative functions.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.  (Continued)


Person or Entity                                         From Inception
 Receiving                   Form and Method         (September 20, 1988) to
Compensation                 of Compensation            December 31, 2007


General Partners and  Reimbursement at Cost for all         $1,029,948
Affiliates            expenses realted to the disposition
                      of the Fund's properties.

General Partners      1% of Net Cash Flow in any fiscal     $  267,589
                      year until the Limited Partners have
                      received annual, non-cumulative
                      distributions of Net Cash Flow  equal
                      to 10% of their Adjusted Capital
                      Contributions and 10% of any remaining
                      Net Cash Flow in such fiscal year.

General Partners      15% of distributions of Net Proceeds  $  184,037
                      of Sale other than distributions
                      necessary to restore Adjusted Capital
                      Contributions and provide a 6%
                      cumulative return to Limited Partners.
                      The General  Partners  will receive
                      only 1% of distributions of Net
                      Proceeds of Sale until Limited Partners
                      have received an amount equal to
                      (a) their Adjusted Capital Contributions,
                      plus (b) an  amount  equal to 14% of
                      their Adjusted  Capital Contributions
                      per annum, cumulative but not compounded,
                      less (c) all previous cash distributions
                      to the  Limited Partners.


                             PART IV

ITEM 13. EXHIBITS.

     3.1   Certificate  of Limited Partnership  (incorporated  by
     reference  to  Exhibit 3.1 of the registrant's  Registration
     Statement  on Form S-11 filed September 26, 1988  [File  No.
     33-24419]).

     3.2    Limited   Partnership  Agreement   (incorporated   by
     reference  to  Exhibit 3.2 of the registrant's  Registration
     Statement  on Form S-11 filed September 26, 1988  [File  No.
     33-24419]).

     10.1  Net  Lease Agreement dated June 20, 1991  between  the
     Partnership  and  Children's World  Learning  Centers,  Inc.
     relating  to the Property at 1231 Sunbury Road, Westerville,
     Ohio (incorporated by reference to Exhibit 10.12 of Form 10-
     K filed July 27, 1992).

     10.2  Net  Lease Agreement dated July 28, 1992  between  the
     Partnership  and  Children's World  Learning  Centers,  Inc.
     relating  to  the  Property  at  4885  Cherry  Bottom  Road,
     Columbus,  Ohio (incorporated by reference to Exhibit  10.17
     of Form 10-K filed March 29, 1993).

     10.3  Net  Lease Agreement dated April 13, 1998 between  the
     Partnership, AEI Net Lease Income & Growth Fund XIX  Limited
     Partnership,   Robert  P.  Johnson,  and   Tumbleweed,   LLC
     relating  to  the  Property  at 1150  North  Bridge  Street,
     Chillicothe,  Ohio  (incorporated by  reference  to  Exhibit
     10.2 of Form 10-QSB filed May 15, 1998).

     10.4  First Amendment to Net Lease Agreement dated  November
     20,  1998  between the Partnership, AEI Net Lease  Income  &
     Growth  Fund XIX Limited Partnership, Robert P. Johnson  and
     Tumbleweed,  LLC  relating to the  Property  at  1150  North
     Bridge  Street, Chillicothe, Ohio (incorporated by reference
     to Exhibit 10.70 of Form 10-KSB filed March 30, 1999).


ITEM 13.    EXHIBITS. (Continued)

     10.5  Purchase  Agreement dated May  24,  2006  between  the
     Partnership   and  Shamrock  Real  Estate  #1,  Incorporated
     relating  to  the Property at 8555 Monrovia, Lenexa,  Kansas
     (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
     filed August 11, 2006).

     10.6  Contract  of  Sale dated August 17, 2006  between  the
     Partnership,  various  other  property  owners  and  Compson
     Holding  Corporation  relating  to  the  Property  at  16778
     Interstate    45    South,   Conroe    (Woodlands),    Texas
     (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
     filed November 8, 2006).

     10.7 Purchase Agreement dated December 12, 2007 between  the
     Partnership  and Richard Singer and/or Assigns  relating  to
     the   Property  at  1231  Sunbury  Road,  Westerville,  Ohio
     (incorporated  by  reference to Exhibit  10.1  of  Form  8-K
     filed January 31, 2008).

     10.8  Assignment and Assumption of Purchase Agreement  dated
     March  11, 2008 between the Partnership and AEI Real  Estate
     Fund  XVII  Limited Partnership relating to the Property  at
     4885  Cherry  Bottom Road, Columbus, Ohio  (incorporated  by
     reference  to  Exhibit  10.1 of Form  8-K  filed  March  18,
     2008).

     31.1  Certification  of Chief Executive Officer  of  General
     Partner  pursuant  to Rule 15d-14(a)(17  CFR  240.15d-14(a))
     and Section 302 of the Sarbanes-Oxley Act of 2002.

     31.2  Certification  of Chief Financial Officer  of  General
     Partner  pursuant  to Rule 15d-14(a)(17  CFR  240.15d-14(a))
     and Section 302 of the Sarbanes-Oxley Act of 2002.

     32    Certification  of Chief Executive  Officer  and  Chief
     Financial  Officer  of General Partner pursuant  to  Section
     906 of the Sarbanes-Oxley Act of 2002.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

        The  following  is a summary of the fees  billed  to  the
Partnership  by  Boulay, Heutmaker, Zibell  &  Co.  P.L.L.P.  for
professional  services rendered for the years ended December  31,
2007 and 2006:

     Fee Category                            2007       2006

     Audit Fees                           $   9,850   $ 13,650
     Audit-Related Fees                           0          0
     Tax Fees                                     0          0
     All Other Fees                               0          0
                                           --------    -------
          Total Fees                      $   9,850   $ 13,650
                                            =======    =======

Audit  Fees  - Consists of fees billed for professional  services
rendered  for  the  audit of the Partnership's  annual  financial
statements   and  review  of  the  interim  financial  statements
included  in  quarterly reports, and services that  are  normally
provided   by  Boulay,  Heutmaker,  Zibell  &  Co.  P.L.L.P.   in
connection with statutory and regulatory filings or engagements.

Audit-Related  Fees - Consists of fees billed for  assurance  and
related  services that are reasonably related to the  performance
of  the  audit  or  review of financial statements  and  are  not
reported under "Audit Fees." These services include consultations
concerning financial accounting and reporting standards.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES. (Continued)

Tax  Fees - Consists of fees billed for professional services for
federal and state tax compliance, tax advice and tax planning.

All Other Fees - Consists of fees for products and services other
than the services reported above.


Policy   for  Preapproval  of  Audit  and  Permissible  Non-Audit
Services of Independent Auditors

        Before  the  Independent  Auditors  are  engaged  by  the
Partnership to render audit or non-audit services, the engagement
is  approved  by  Mr.  Johnson acting as the Partnership's  audit
committee.



                           SIGNATURES

        In  accordance with Section 13 or 15(d) of  the  Exchange
Act, the registrant caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


                            AEI REAL ESTATE FUND XVIII
                            Limited Partnership
                            By: AEI Fund Management XVIII, Inc.
                                Its Managing General Partner


March 24, 2008              By:/s/ Robert P Johnson
                                   Robert P. Johnson, President and Director
                                   (Principal Executive Officer)


        In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.

 Name                              Title                           Date


/s/ Robert P Johnson  President (Principal Executive  Officer) March 24, 2008
    Robert P. Johnson and Sole Director of Managing General
                      Partner

/s/ Patrick W Keene   Chief Financial Officer and Treasurer    March 24, 2008
    Patrick W. Keene  (Principal Accounting Officer)