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, 2001

                Commission file number:  0-18289

         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.)

     1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

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

Securities registered pursuant to Section 12(b) of the Act:

                                 Name of each exchange on
     Title of each class             which registered
           None                          None

Securities registered pursuant to Section 12(g) of the Act:

                      Limited Partnership Units
                          (Title of class)

Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  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  the  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]

The Issuer's revenues for year ended December 31, 2001 were
$1,909,902.

As  of  February 28, 2002, there were 19,844.85 Units of  limited
partnership interest in the registrant 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 $19,844,850.

               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 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  all  commercial,  single  tenant
buildings leased under triple net leases.

       The Partnership will hold its properties until the General
Partners  determine  that the sale or other  disposition  of  the
properties   is   advantageous  in  view  of  the   Partnership's
investment  objectives.  In deciding whether to sell  properties,
the  General  Partners will consider factors  such  as  potential
appreciation,  net  cash flow and income tax considerations.   In
addition,  certain lessees have been granted options to  purchase
properties  after  a  specified portion of  the  lease  term  has
elapsed.   It is anticipated that the Partnership will  sell  its
properties  within  twelve  years after  acquisition.   Prior  to
commencing  the  liquidation  of  the  Partnership,  the  General
Partners may reinvest the proceeds from the sale of properties in
additional  properties,  provided that  sufficient  proceeds  are
distributed  to  the Limited Partners to pay  federal  and  state
income  taxes related to any taxable gain recognized as a  result
of  the  sale.  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.

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,  which  are  classified   as
operating  leases.   Under  a triple net  lease,  the  lessee  is
responsible  for  all real estate taxes, insurance,  maintenance,
repairs  and  operating expenses for the property.   The  initial
lease terms are for 14 to 20 years.  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 or
if  gross  receipts  for  the property exceed  certain  specified
amounts, among other conditions.

        The  leases provide the lessee with two to four five-year
renewal options subject to the same terms and conditions  as  the
initial  lease.   Certain lessees have been  granted  options  to
purchase  the  property.  Depending on the  lease,  the  purchase
price is either determined by a formula, or is the greater of the
fair  market value of the property or the amount determined by  a
formula.  In all cases, if the option were to be exercised by the
lessee,  the  purchase price would be greater than  the  original
cost of the property.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

        In  October,  1999, the Partnership abandoned  a  Rally's
property  in  order  to  avoid ongoing expenses.   In  the  third
quarter   of  1999,  the  Partnership  recorded  a  real   estate
impairment of $125,531, which is equal to the net book  value  of
the  abandoned property.  Additionally, in the fourth quarter  of
1999,  the  Partnership  recorded a  real  estate  impairment  of
$124,188,  which is equal to the net book value of the  remaining
Rally's,  due  to the uncertainty of retaining a  tenant  in  the
property.

        During  1999,  the Partnership sold its interest  in  the
HomeTown  Buffet  restaurant, in three separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $423,600, which resulted in a  total  net  gain  of
$146,588.  The total cost and related accumulated depreciation of
the interest sold was $303,733 and $26,721, respectively.

        In April, 2000, the Partnership entered into an Agreement
to  sell  the Pasta Fair restaurant in Belleview, Florida  to  an
affiliate  of the lessee.  On May 10, 2000, the sale closed  with
the  Partnership  receiving net sale proceeds of $730,550,  which
resulted in a net gain of $26,670.  At the time of sale, the cost
and  related accumulated depreciation was $932,862 and  $228,982,
respectively.

       In December, 1998, Gulf Coast Restaurants, Inc. (GCR), the
lessee of the Applebee's restaurant in Slidell, Louisiana,  filed
for reorganization.  GCR continued to make the lease payments  to
the Partnership under the supervision of the bankruptcy court.  A
reorganization  plan was accepted by the bankruptcy  court  which
provided  for  the  Lease to be assumed by GCR  and  assigned  to
another  operator who purchased the Partnership's  share  of  the
property.   The  reorganization  plan  also  provided   for   the
Partnership to collect all rents outstanding under the  terms  of
the  Lease.   On  October  25, 2000, the  sale  closed  with  the
Partnership  receiving  net  sale  proceeds  of  $355,151,  which
resulted  in  a net gain of $118,740.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $280,019  and
$43,608, respectively.

        In  November  2000,  the Lease  on  the  Taco  Fiesta  in
Brownsville,  Texas expired and was not renewed  by  the  tenant.
The  restaurant  was  closed  and listed  for  sale.   While  the
property was vacant, the Partnership was responsible for the real
estate  taxes and other costs required to maintain the  property.
At  December  31,  2000,  the property was  reclassified  on  the
balance  sheet to Real Estate Held for Sale.  In March 2001,  the
Partnership entered into an agreement to sell the property to  an
unrelated third party.  On June 7, 2001, the sale closed with the
Partnership  receiving  net  sale  proceeds  of  $463,323,  which
resulted in a net gain of $18,628.  At the time of sale, the cost
and related accumulated depreciation was $560,338 and $115,643.

        On  May  24,  2001, the Partnership sold 1.1556%  of  the
Champps  Americana restaurant in Columbus, Ohio to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$38,778, which resulted in a net gain of $12,410.  At the time of
sale,  the  cost  and  related accumulated  depreciation  of  the
interest sold was $29,646 and $3,278, respectively.

        On  August 17, 2001, the Partnership sold 1.0366% of  the
Tumbleweed restaurant in Chillicothe, Ohio to an unrelated  third
party.   The  Partnership received net sale proceeds of  $15,788,
which resulted in a net gain of $3,335.  At the time of sale, the
cost  and  related accumulated depreciation of the interest  sold
was $13,219 and $766, respectively.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

        On  August  28,  1998, the Partnership  purchased  a  38%
interest  in a parcel of land in Centerville, Ohio for  $703,376.
The land is leased to Americana Dining Corporation (ADC) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $49,236.  Effective December 25, 1998,  the  annual
rent  was increased to $73,854.  Simultaneously with the purchase
of the land, the Partnership entered into a Development Financing
Agreement under which the Partnership advanced funds to  ADC  for
the  construction of a Champps Americana restaurant on the  site.
Initially, the Partnership charged interest on the advances at  a
rate  of 7%.  Effective December 25, 1998, the interest rate  was
increased  to 10.5%.  On January 27, 1999, after the  development
was  completed, the Lease Agreement was amended to require annual
rental  payments  of $154,075.  The Partnership's  share  of  the
total  acquisition costs, including the cost of  the  land,  were
$1,502,252.  The remaining interests in the property are owned by
AEI  Real  Estate  Fund XVII Limited Partnership,  AEI  Income  &
Growth Fund XXI Limited Partnership and AEI Income & Growth  Fund
XXII Limited Partnership, affiliates of the Partnership.

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $385,920.   The
land  is  leased  to Razzoo's, Inc. (RI) under a Lease  Agreement
with  a  primary term of 15 years and annual rental  payments  of
$32,803.   Effective  November 26,  2000,  the  annual  rent  was
increased  to $37,627.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under which the Partnership advanced funds to  RI  for
the   construction  of  a  Razzoo's  restaurant  on   the   site.
Initially, the Partnership charged interest on the advances at  a
rate  of 8.5%.  Effective November 26, 2000 and January 31, 2001,
the interest rate was increased to 9.75% and 15.0%, respectively.
On  July 11, 2001, after the development was completed, the Lease
Agreement  was  amended  to  require annual  rental  payments  of
$88,735.  The Partnership's share of the total acquisition costs,
including  the  cost  of the land, was $895,503.   The  remaining
interests  in  the property are owned by AEI Net Lease  Income  &
Growth Fund XIX Limited Partnership, AEI Income & Growth Fund  23
LLC   and   AEI   Private  Net  Lease  Millennium  Fund   Limited
Partnership, affiliates of the Partnership.

Major Tenants

        During 2001, four tenants each contributed more than  ten
percent  of  the Partnership's total rental revenue.   The  major
tenants  in aggregate contributed 73% of total rental revenue  in
2001.   It  is  anticipated that, based  on  the  minimum  rental
payments  required  under  the leases,  each  major  tenant  will
continue  to  contribute more than ten percent  of  total  rental
revenue  in  2002 and future years.  Any failure of  these  major
tenants could materially affect the Partnership's net income  and
cash distributions.

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  attempt  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, which are
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.

        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, 2001.


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

Children's World                              ARAMARK
Daycare Center                              Educational
 Phoenix, AZ          9/29/89  $  883,486  Resources, Inc.  $ 123,593  $16.35

Children's World                              ARAMARK
Daycare Center                              Educational
 Blue Springs, MO     6/27/90  $  791,271  Resources, Inc.  $ 105,684  $13.21

Children's World                              ARAMARK
Daycare Center                              Educational
 Lenexa, KS           9/13/90  $  983,527  Resources, Inc.  $ 132,097  $16.48

Taco Cabana Restaurant                      Texas Taco
 San Antonio, TX     12/29/90  $1,406,426   Cabana L.P.     $ 223,440  $81.61

Cheddar's Restaurant                         Heartland
 Clive, IA            1/22/91  $1,392,248  Restaurant Corp. $ 237,220  $32.95

ITEM 2.   DESCRIPTION OF PROPERTIES.  (Continued)


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

Children's World                              ARAMARK
Daycare Center                              Educational
 Westerville, OH      6/21/91  $  990,261  Resources, Inc.  $ 130,743  $16.38

Taco Cabana Restaurant
 San Antonio, TX                            Texas Taco
 (9.3699%)            7/19/91  $  107,933   Cabana L.P.     $  17,538  $41.83

Applebee's Restaurant                        Concord
 Destin, FL                                Neighborhood
 (5.8291%)            11/1/91  $   65,215  Corporation      $   9,699  $34.58

Children's World                              ARAMARK
Daycare Center                              Educational
 Columbus, OH         8/10/92  $1,019,202  Resources, Inc.  $ 124,260  $14.07

Rally's Restaurant                          Red Line San
 San Antonio, TX      12/7/92  $  308,997 Antonio One, LTD  $  15,000  $25.86

Tractor Supply Company Store
 Bristol, VA                                Tractor Supply
 (7.5158%)            4/10/96  $   96,765   Company, Inc.   $  11,135  $ 7.90

Champps Americana
 Restaurant                                    Champps
 Columbus, OH                                 Operating
 (5.0132%)            8/29/96  $  128,611    Corporation    $  15,016  $36.66

Fuddruckers Restaurant
 Thornton, CO         7/30/97  $1,405,771 Fuddruckers, Inc. $ 159,293  $32.01

Champps Americana
 Restaurant                                    Champps
 Troy, MI                                     Operating
 (23.95%)              9/3/98  $1,192,496    Corporation    $ 131,617  $49.56

Tumbleweed Restaurant
 Chillicothe, OH                             Tumbleweed,
 (43.9634%)          11/20/98  $  560,613        Inc.       $  59,421  $24.65

Tumbleweed Restaurant
 Columbus, OH                                Tumbleweed,
 (40.0%)             12/28/98  $  554,269        Inc.       $  57,639  $26.28

Old Country Buffet
 Restaurant                                     OCB
 North Lake, IL      12/29/98  $1,350,804   Restaurant Co.  $ 130,000  $14.46


ITEM 2.   DESCRIPTION OF PROPERTIES.  (Continued)



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

Champps Americana
 Restaurant                                    Champps
 Centerville, OH                              Operating
 (38.0%)              1/27/99  $1,502,252    Corporation    $ 154,075  $43.28

Razzoo's Restaurant
 Alpharetta, GA
 (24.0%)              7/11/01  $  895,503    Razzoo's, Inc. $  88,735  $45.67


        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  Champps
Americana  restaurant in Troy, Michigan are  owned  by  AEI  Real
Estate  Fund  XV Limited Partnership, AEI Real Estate  Fund  XVII
Limited  Partnership and AEI Net Lease Income & Growth  Fund  XIX
Limited  Partnership.  The remaining interests in the  Tumbleweed
restaurant in Chillicothe, Ohio are owned by AEI Net Lease Income
&Growth  Fund  XIX  Limited  Partnership and an  unrelated  third
party.   The  remaining interest in the Tumbleweed restaurant  in
Columbus, Ohio is owned by AEI Net Lease Income & Growth Fund XIX
Limited  Partnership.   The remaining interests  in  the  Champps
Americana restaurant in Centerville, Ohio are owned by  AEI  Real
Estate  Fund  XVII Limited Partnership, AEI Income & Growth  Fund
XXI Limited Partnership and AEI Income & Growth Fund XXII Limited
Partnership.  The remaining interests in the Razzoo's  restaurant
are  owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
Partnership, AEI Income & Growth Fund 23 LLC and AEI Private  Net
Lease   Millennium  Fund  Limited  Partnership.   The   remaining
interests  in  the Taco Cabana restaurant in San Antonio,  Texas,
the  Applebee's restaurant in Destin, Florida, the Tractor Supply
Company  store, and the Champps Americana restaurant in Columbus,
Ohio 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.

        The initial Lease terms are for 20 years, except for  the
Taco  Cabana, Rally's, Razzoo's, and Tumbleweed restaurants,  and
the  Children's World daycare centers, which have Lease terms  of
15  years and the Tractor Supply Company store, which has a Lease
term  of 14 years.  The Leases contain renewal options which  may
extend  the  Lease term an additional 10 years,  except  for  the
Champps  Americana,  Fuddruckers and Rally's  restaurants,  which
have renewal options that may extend the Lease term an additional
15 years and the Old Country Buffet restaurant, which has renewal
options that may extend the Lease term an additional 20 years.

       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.

ITEM 2.   DESCRIPTION OF PROPERTIES.  (Continued)

         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  except  for
properties  whose  book  value  was  reduced  by  a  real  estate
impairment loss pursuant to Financial Accounting Standards  Board
Statement  No. 121, "Accounting for the Impairment of  Long-Lived
Assets  and for Long-Lived Assets to be Disposed of."   The  real
estate impairment loss, which was recorded against the book  cost
of  the land and depreciable property, was not recognized for tax
purposes.

       During the last five years, or since the date of purchase,
if purchased after December 31, 1996, all properties listed above
were 100% occupied.


ITEM 3. LEGAL PROCEEDINGS.

       None.

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

       None.


                             PART II

ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
        RELATED SECURITY HOLDER MATTERS.

        As  of  December  31, 2001, there were 1,479  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.
However,  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 total 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 2001, thirty-four Limited Partners redeemed a total
of  371.72 Partnership Units for $333,745 in accordance with  the
Partnership  Agreement.  In prior years, a total of  167  Limited
Partners redeemed 2,561.48 Partnership Units for $2,070,702.  The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

       Cash distributions of $18,505 and $18,788 were made to the
General Partners and $1,498,249 and $1,506,165 were made  to  the
Limited   Partners   in   2001  and  2000,   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.

ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
        RELATED SECURITY HOLDER MATTERS.  (Continued)

        As  part  of the Limited Partner distributions  discussed
above,  the  Partnership  distributed  $247,242  and  $49,589  of
proceeds from property sales in 2001 and 2000, respectively.  The
distributions reduced the Limited Partnership's Adjusted  Capital
Contribution.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS.

Results of Operations

        For  the  years  ended December 31, 2001  and  2000,  the
Partnership   recognized   rental  income   of   $1,855,776   and
$1,885,816,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income of  $54,126  and  $51,091,
respectively.   In  2001, rental income  decreased  mainly  as  a
result  of the property sales discussed below.  This decrease  in
rental  income  was partially offset by additional rent  received
from  one  property  acquisition in 2000 and  rent  increases  on
twelve properties.

       In December, 1998, Gulf Coast Restaurants, Inc. (GCR), the
lessee of the Applebee's restaurant in Slidell, Louisiana,  filed
for reorganization.  GCR continued to make the lease payments  to
the Partnership under the supervision of the bankruptcy court.  A
reorganization  plan was accepted by the bankruptcy  court  which
provided  for  the  Lease to be assumed by GCR  and  assigned  to
another  operator who purchased the Partnership's  share  of  the
property.   The  reorganization  plan  also  provided   for   the
Partnership to collect all rents outstanding under the  terms  of
the  Lease.   On  October  25, 2000, the  sale  closed  with  the
Partnership  receiving  net  sale  proceeds  of  $355,151,  which
resulted  in  a net gain of $118,740.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $280,019  and
$43,608, respectively.

        In  November  2000,  the Lease  on  the  Taco  Fiesta  in
Brownsville,  Texas expired and was not renewed  by  the  tenant.
The  restaurant  was  closed  and listed  for  sale.   While  the
property was vacant, the Partnership was responsible for the real
estate  taxes and other costs required to maintain the  property.
At  December  31,  2000,  the property was  reclassified  on  the
balance  sheet to Real Estate Held for Sale.  In March 2001,  the
Partnership entered into an agreement to sell the property to  an
unrelated third party.  On June 7, 2001, the sale closed with the
Partnership  receiving  net  sale  proceeds  of  $463,323,  which
resulted in a net gain of $18,628.  At the time of sale, the cost
and related accumulated depreciation was $560,338 and $115,643.

        During  the years ended December 31, 2001 and  2000,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $272,891 and $245,707, respectively.  These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.   During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $36,251 and $37,484, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.

       As of December 31, 2001, the Partnership's annualized cash
distribution  rate  was  7.0%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the  Partnership  Agreement.  As a result,  99% of  distributions
were  allocated  to  Limited  Partners  and  1%  to  the  General
Partners.

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

        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.   In addition, leases may contain  rent  clauses
which  entitle  the  Partnership to receive  additional  rent  in
future  years  if gross receipts for the property exceed  certain
specified  amounts.  Increases in sales volumes of  the  tenants,
due to inflation and real sales growth, may 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

        During  2001,  the Partnership's cash balances  decreased
$87,329  as  a result of cash used to purchase property  and  the
Partnership  distributed  more  cash  to  the  Partners  than  it
generated from operating activities, which were partially  offset
by  cash  generated from the sale of property.  Net cash provided
by  operating  activities decreased from $1,663,608  in  2000  to
$1,599,480  in  2001 as a result of a decrease in income  and  an
increase in Partnership administration expenses in 2001  and  net
timing differences in the collection of payments from the lessees
and the payment of expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the  sale of real estate.  During the years ended  December
31,  2001 and 2000, the Partnership generated cash flow from  the
sale  of  real  estate of $517,889 and $1,085,701,  respectively.
During  the  same periods, the Partnership expended $350,796  and
$544,302,  respectively, to invest in real properties  (inclusive
of  acquisition  expenses)  as  the Partnership  reinvested  cash
generated from property sales.

        In April, 2000, the Partnership entered into an Agreement
to  sell  the Pasta Fair restaurant in Belleview, Florida  to  an
affiliate  of the lessee.  On May 10, 2000, the sale closed  with
the  Partnership  receiving net sale proceeds of $730,550,  which
resulted in a net gain of $26,670.  At the time of sale, the cost
and  related accumulated depreciation was $932,862 and  $228,982,
respectively.

        On  May  24,  2001, the Partnership sold 1.1556%  of  the
Champps  Americana restaurant in Columbus, Ohio to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$38,778, which resulted in a net gain of $12,410.  At the time of
sale,  the  cost  and  related accumulated  depreciation  of  the
interest sold was $29,646 and $3,278, respectively.

        On  August 17, 2001, the Partnership sold 1.0366% of  the
Tumbleweed restaurant in Chillicothe, Ohio to an unrelated  third
party.   The  Partnership received net sale proceeds of  $15,788,
which resulted in a net gain of $3,335.  At the time of sale, the
cost  and  related accumulated depreciation of the interest  sold
was $13,219 and $766, respectively.

       During 2001 and 2000, the Partnership distributed $249,739
and  $50,089 of the net sale proceeds to the Limited and  General
Partners  as part of their regular quarterly distributions  which
represented  a return of capital of $12.38 and $2.45 per  Limited
Partnership Unit, respectively.  The remaining net sale  proceeds
will   either   be  re-invested  in  additional   properties   or
distributed to the Partners in the future.

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

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $385,920.   The
land  is  leased  to Razzoo's, Inc. (RI) under a Lease  Agreement
with  a  primary term of 15 years and annual rental  payments  of
$32,803.   Effective  November 26,  2000,  the  annual  rent  was
increased  to $37,627.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under which the Partnership advanced funds to  RI  for
the   construction  of  a  Razzoo's  restaurant  on   the   site.
Initially, the Partnership charged interest on the advances at  a
rate  of 8.5%.  Effective November 26, 2000 and January 31, 2001,
the interest rate was increased to 9.75% and 15.0%, respectively.
On  July 11, 2001, after the development was completed, the Lease
Agreement  was  amended  to  require annual  rental  payments  of
$88,735.  The Partnership's share of the total acquisition costs,
including  the  cost  of the land, was $895,503.   The  remaining
interests  in  the property are owned by AEI Net Lease  Income  &
Growth Fund XIX Limited Partnership, AEI Income & Growth Fund  23
LLC   and   AEI   Private  Net  Lease  Millennium  Fund   Limited
Partnership, affiliates of the Partnership.

       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.

        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 2001, thirty-four Limited Partners redeemed a total
of  371.72 Partnership Units for $333,745 in accordance with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
167  Limited  Partners  redeemed 2,561.48 Partnership  Units  for
$2,070,702  in  accordance with the Partnership  Agreement.   The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

       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 on both a short-term and long-term basis.

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

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  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, taxation  levels,
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
    affects of these consequences for investors;

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

    the   success  of  the  General  Partners  of   locating
    properties with favorable risk return characteristics;

    the effect of tenant defaults; and

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


ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS






Report of Independent Auditors

Balance Sheet as of December 31, 2001 and 2000

Statements for the Years Ended December 31, 2001 and 2000:

     Income

     Cash Flows

     Changes in Partners' Capital

Notes to Financial Statements



                 REPORT OF INDEPENDENT AUDITORS





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, 2001 and 2000 and  the  related
statements of income, cash flows and changes in partners' capital
for  the  years then ended.  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   auditing
standards  generally accepted in the United  States  of  America.
Those  standards require that we plan and perform  the  audit  to
obtain   reasonable   assurance  about  whether   the   financial
statements are free of material misstatement.  An audit  includes
examining,  on a test basis, evidence supporting the amounts  and
disclosures in the financial statements.  An audit also  includes
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.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of  AEI Real Estate Fund XVIII Limited Partnership as of December
31,  2001 and 2000 and the results of its operations and its cash
flows  for  the  years then ended, in conformity with  accounting
principles generally accepted in the United States of America.




                             /s/ BOULAY, HEUTMAKER, ZIBELL & CO. P.L.L.P.
Minneapolis,  Minnesota          Boulay, Heutmaker, Zibell & Co. P.L.L.P.
January 23, 2002                   Certified Public Accountants

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

                           DECEMBER 31

                             ASSETS

                                                   2001          2000

CURRENT ASSETS:
  Cash and Cash Equivalents                   $   938,698     $ 1,026,027
  Receivables                                           0          19,619
                                               -----------     -----------
      Total Current Assets                        938,698       1,045,646
                                               -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                          5,095,552       5,104,580
  Buildings and Equipment                      10,303,310       9,812,122
  Construction in Progress                              0         174,229
  Accumulated Depreciation                     (2,764,686)     (2,435,065)
                                               -----------     -----------
                                               12,634,176      12,655,866
  Real Estate Held for Sale                             0         444,695
                                               -----------     -----------
      Net Investments in Real Estate           12,634,176      13,100,561
                                               -----------     -----------
           Total  Assets                      $13,572,874     $14,146,207
                                               ===========     ===========

                    LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.        $    24,142     $    31,767
  Distributions Payable                           365,266         368,669
  Unearned Rent                                         0          13,274
                                               -----------     -----------
      Total Current Liabilities                   389,408         413,710
                                               -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                      0         (58,139)
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Issued;
   19,850 and 20,222 Units outstanding in
   2001 and 2000, respectively                 13,183,466      13,790,636
                                               -----------     -----------
    Total Partners' Capital                    13,183,466      13,732,497
                                               -----------     -----------
      Total Liabilities and Partners' Capital $13,572,874     $14,146,207
                                               ===========     ===========

 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 YEARS ENDED DECEMBER 3l


                                                    2001           2000

INCOME:
  Rent                                          $ 1,855,776    $ 1,885,816
  Investment Income                                  54,126         51,091
                                                 -----------    -----------
      Total Income                                1,909,902      1,936,907
                                                 -----------    -----------

EXPENSES:
  Partnership Administration - Affiliates           272,891        245,707
  Partnership Administration and Property
     Management - Unrelated Parties                  36,251         37,484
  Depreciation                                      333,665        364,643
                                                 -----------    -----------
      Total Expenses                                642,807        647,834
                                                 -----------    -----------

OPERATING INCOME                                  1,267,095      1,289,073

GAIN ON SALE OF REAL ESTATE                          34,373        145,410
                                                 -----------    -----------
NET INCOME                                      $ 1,301,468    $ 1,434,483
                                                 ===========    ===========

NET INCOME ALLOCATED:
  General Partners                              $    76,644    $    14,345
  Limited Partners                                1,224,824      1,420,138
                                                 -----------    -----------
                                                $ 1,301,468    $ 1,434,483
                                                 ===========    ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(20,004 and 20,385 weighted average Units
outstanding in 2001 and 2000, respectively)     $     61.23    $     69.67
                                                 ===========    ===========


 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 YEARS ENDED DECEMBER 3l


                                                   2001           2000

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                   $ 1,301,468     $ 1,434,483

  Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                                  333,665         364,643
     Gain on Sale of Real Estate                   (34,373)       (145,410)
     Decrease in Receivables                        19,619             233
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                   (7,625)         26,251
     Decrease in Security Deposit                        0         (12,500)
     Decrease in Unearned Rent                     (13,274)         (4,092)
                                                -----------     -----------
       Total Adjustments                           298,012         229,125
                                                -----------     -----------
       Net Cash Provided By
           Operating Activities                  1,599,480       1,663,608
                                                -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                      (350,796)       (544,302)
  Proceeds from Sale of Real Estate                517,889       1,085,701
                                                -----------     -----------
       Net Cash Provided By
           Investing Activities                    167,093         541,399
                                                -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Increase (Decrease) in Distributions Payable    (3,403)         26,685
    Distributions to Partners                   (1,513,383)     (1,521,379)
    Redemption Payments                           (337,116)       (357,368)
                                                -----------     -----------
       Net Cash Used For
         Financing Activities                   (1,853,902)     (1,852,062)
                                                -----------     -----------
NET INCREASE (DECREASE) IN CASH
    AND CASH EQUIVALENTS                           (87,329)        352,945

CASH AND CASH EQUIVALENTS, beginning of period   1,026,027         673,082
                                                -----------     -----------
CASH AND CASH EQUIVALENTS, end of period       $   938,698     $ 1,026,027
                                                ===========     ===========


 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 YEARS ENDED DECEMBER 3l


                                                                  Limited
                                                                 Partnership
                             General     Limited                    Units
                             Partners    Partners      Total     Outstanding


BALANCE, December 31, 1999  $(53,696)  $14,230,457  $14,176,761    20,625.48

  Distributions              (15,214)   (1,506,165)  (1,521,379)

  Redemption Payments         (3,574)     (353,794)    (357,368)     (403.91)

  Net Income                  14,345     1,420,138    1,434,483
                             --------   -----------  -----------  -----------
BALANCE, December 31, 2000   (58,139)   13,790,636   13,732,497    20,221.57

  Distributions              (15,134)   (1,498,249)  (1,513,383)

  Redemption Payments         (3,371)     (333,745)    (337,116)     (371.72)

  Net Income                  76,644     1,224,824    1,301,468
                             --------   -----------  -----------  -----------
BALANCE, December 31, 2001  $      0   $13,183,466  $13,183,466    19,849.85
                             ========   ===========  ===========  ===========


 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, 2001 AND 2000


(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
     shareholder of AFM, serves as the Individual General Partner
     and  an  affiliate of AFM, AEI Fund Management, Inc.  (AEI),
     performs the administrative and operating functions for  the
     Partnership.

     The   terms   of  the  Partnership  offering  call   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 ($22,783,050).

     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, 2001 AND 2000

(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.

(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       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.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

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

       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.

     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.  Accordingly, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.

       The  tax  return, the qualification of the Partnership  as
       such  for  tax  purposes, 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  with  respect  to   the
       Partnership  qualification or 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  Partnership
       recognizes  rental revenue on the accrual basis  according
       to  the terms of the individual leases.  For leases  which
       contain   rental  increases  based  on  cost   of   living
       increases,  the increases are recognized in  the  year  in
       which they are effective.

       Real  estate is recorded at the lower of cost or estimated
       net   realizable  value.   The  Partnership  compares  the
       carrying amount of its properties to the estimated  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, 2001 AND 2000

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

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

       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.

     Newly Issued Pronouncements

       The   Financial  Accounting  Standards  Board  has  issued
       Statement  of  Financial  Accounting  Standards  No.  143,
       Accounting  for  Asset Retirement Obligations  (SFAS  143)
       and  Statement of Financial Accounting Standards No.  144,
       Accounting  for the Impairment or Disposal  of  Long-Lived
       Assets  (SFAS  144).  SFAS 143 will be applicable  to  the
       Partnership  in  the year ended December 31,  2003.   SFAS
       144  will  be  applicable to the Partnership in  the  year
       ended   December  31,  2002.   Management   is   currently
       evaluating  the  impact of SFAS 143 and SFAS  144  on  its
       financial statements.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(3)  Related Party Transactions -

     The  Partnership  owns  a  5.0132%  interest  in  a  Champps
     Americana  restaurant  in  Columbus,  Ohio.   The  remaining
     interests  in  this  property are owned by  unrelated  third
     parties.   AEI Income & Growth Fund XXI Limited Partnership,
     an  affiliate of the Partnership, owned a 67.8% interest  in
     this property until the interest was sold to unrelated third
     parties  in  a  series of transactions with  the  last  sale
     occurring  in  May,  2001.  The Partnership  owns  a  23.95%
     interest   in  a  Champps  Americana  restaurant  in   Troy,
     Michigan.   The  remaining interests in  this  property  are
     owned  by  AEI Real Estate Fund XV Limited Partnership,  AEI
     Real  Estate Fund XVII Limited Partnership and AEI Net Lease
     Income & Growth Fund XIX Limited Partnership, affiliates  of
     the  Partnership.  The Partnership owns a 43.9634%  interest
     in  a  Tumbleweed  restaurant  in  Chillicothe,  Ohio.   The
     remaining  interests in this property are owned by  AEI  Net
     Lease  Income  &  Growth  Fund XIX Limited  Partnership  and
     unrelated  third  parties.  The Individual  General  Partner
     owned  a  15.0% interest in this property until the interest
     was  sold to an unrelated third party in August, 2001.   The
     Partnership owns a 40.0% interest in a Tumbleweed restaurant
     in  Columbus, Ohio.  The remaining interest in this property
     is  owned by AEI Net Lease Income & Growth Fund XIX  Limited
     Partnership.   The Partnership owns a 38.0%  interest  in  a
     Champps  Americana  restaurant in  Centerville,  Ohio.   The
     remaining  interests in the property are owned by  AEI  Real
     Estate  Fund XVII Limited Partnership, AEI Income  &  Growth
     Fund  XXI  Limited Partnership and AEI Income & Growth  Fund
     XXII  Limited  Partnership, affiliates of  the  Partnership.
     The   Partnership  owns  a  24%  interest  in   a   Razzoo's
     restaurant.   The remaining interests in this  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership, AEI Income & Growth Fund 23 LLC and AEI Private
     Net Lease Millennium Fund Limited Partnership, affiliates of
     the Partnership.  The Partnership owned a 27% interest in an
     Applebee's restaurant in Slidell, Louisiana.  The  remaining
     interest in this property was owned by AEI Real Estate  Fund
     XVI Limited Partnership, an affiliate of the Partnership.

     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

                                                 2001         2000
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.                                    $ 272,891    $ 245,707
                                                ========     ========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(3)  Related Party Transactions - (Continued)

                                    Total Incurred by the Partnership
                                     for the Years Ended December 31

                                                 2001          2000
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 and accounting costs, taxes,
  insurance and other property costs.          $  36,251    $  37,484
                                                ========     ========
c.AEI is reimbursed for all costs and direct
  expenses incurred by it in acquiring properties
  on behalf of the Partnership.  The amounts are net
  of financing and commitment fees and expense
  reimbursements received by the Partnership from
  the lessees in the amount of $783 and $21,303
  for 2001 and 2000, respectively.             $     840    $ (15,847)
                                                ========     ========

d.AEI is reimbursed for all costs incurred in
  connection with the sale of property.        $   2,086    $       0
                                                ========     ========

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

(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     through triple net leases, which are classified as operating
     leases.  Under a triple net lease, the lessee is responsible
     for  all  real estate taxes, insurance, maintenance, repairs
     and  operating expenses of the property.  The initial  Lease
     terms are for 20 years, except for the Taco Cabana, Rally's,
     Razzoo's  and  Tumbleweed restaurants,  and  the  Children's
     World  daycare centers, which have Lease terms of  15  years
     and the Tractor Supply Company store, which has a Lease term
     of  14 years.  The Leases contain renewal options which  may
     extend the Lease term an additional 10 years, except for the
     Champps  Americana,  Fuddruckers  and  Rally's  restaurants,
     which have renewal options that may extend the Lease term an
     additional  15 years and the Old Country Buffet  restaurant,
     which has renewal options that may extend the Lease term  an
     additional 20 years.  The Leases contain rent clauses  which
     entitle the Partnership to receive additional rent in future
     years  based  on stated rent increases or if gross  receipts
     for  the  property exceed certain specified  amounts,  among
     other conditions.  Certain lessees have been granted options
     to  purchase  the  property.  Depending on  the  lease,  the
     purchase price is either determined by a formula, or is  the
     greater  of  the  fair market value of the property  or  the
     amount determined by a formula.  In all cases, if the option
     were to be exercised by the lessee, the purchase price would
     be greater than the original cost of the property.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(4)  Investments in Real Estate - (Continued)

     The  Partnership's properties are commercial,  single-tenant
     buildings.   The  Children's World in Phoenix,  Arizona  was
     constructed in 1988 and acquired in 1989.  One of  the  Taco
     Cabana restaurants in San Antonio, Texas was constructed  in
     1984,  renovated  in  1991 and acquired by  the  Partnership
     after  the  renovation.   The  Rally's  restaurant  and  the
     Children's  World  in  Columbus, Ohio were  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
     Champps Americana in Troy, Michigan, the Old Country Buffet,
     and the Tumbleweed restaurants were constructed and acquired
     in  1998.  The land for the Champps Americana restaurant  in
     Centerville,  Ohio was acquired in 1998 and construction  of
     the  restaurant  was completed in 1999.  The  land  for  the
     Razzoo's restaurant was acquired in 2000 and construction of
     the   restaurant  was  completed  in  2001.   The  remaining
     properties were constructed and acquired in either  1990  or
     1991.   There have been no costs capitalized as improvements
     subsequent to the acquisitions.

     For  those properties in the table below which do  not  have
     land  costs,  the lessee has entered into land  leases  with
     unrelated  third  parties.  The cost of the  properties  not
     held  for  sale  and  related  accumulated  depreciation  at
     December 31, 2001 are as follows:

                                         Buildings and            Accumulated
Property                         Land      Equipment     Total    Depreciation

Children's World,
 Phoenix, AZ                $  259,467  $   624,019   $   883,486  $  284,565
Children's World,
 Blue Springs, MO              162,290      628,981       791,271     265,068
Children's World,
 Lenexa, KS                    185,788      797,739       983,527     327,738
Taco Cabana, San Antonio, TX   871,844      534,582     1,406,426     215,065
Cheddar's, Clive, IA           379,249    1,012,999     1,392,248     422,731
Children's World,
 Westerville, OH               157,848      832,413       990,261     320,760
Taco Cabana, San Antonio, TX    61,004       46,929       107,933      16,048
Applebee's, Destin, FL          30,239       34,976        65,215      14,581
Children's World,
 Columbus, OH                  157,569      861,633     1,019,202     296,142
Rally's, San Antonio, TX             0       72,209        72,209      72,209
Tractor Supply Company,
 Bristol, VA                    31,092       65,673        96,765      13,526
Champps Americana,
 Columbus, OH                   43,312       85,299       128,611      16,112
Fuddruckers, Thornton, CO      444,692      961,079     1,405,771     146,995
Champps Americana, Troy, MI    385,295      807,201     1,192,496      93,412
Tumbleweed, Chillicothe, OH    229,387      331,226       560,613      36,907
Tumbleweed, Columbus, OH       216,467      337,802       554,269      35,698



         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(4)  Investments in Real Estate - (Continued)

                                         Buildings and            Accumulated
Property                         Land      Equipment     Total    Depreciation

Old Country Buffet,
 Northlake, IL                 342,896    1,007,908     1,350,804     102,191
Champps Americana,
 Centerville, OH               760,269      741,983     1,502,252      76,902
Razzoo's, Alpharetta, GA       376,844      518,659       895,503       8,036
                             ----------  -----------   -----------  ----------
                            $5,095,552  $10,303,310   $15,398,862  $2,764,686
                             ==========  ===========   ===========  ==========


     In April, 2000, the Partnership entered into an Agreement to
     sell  the Pasta Fair restaurant in Belleview, Florida to  an
     affiliate  of the lessee.  On May 10, 2000, the sale  closed
     with   the  Partnership  receiving  net  sale  proceeds   of
     $730,550, which resulted in a net gain of $26,670.   At  the
     time  of sale, the cost and related accumulated depreciation
     was $932,862 and $228,982, respectively.

     In  December, 1998, Gulf Coast Restaurants, Inc. (GCR),  the
     lessee  of  the Applebee's restaurant in Slidell, Louisiana,
     filed  for reorganization.  GCR continued to make the  lease
     payments  to  the Partnership under the supervision  of  the
     bankruptcy court.  A reorganization plan was accepted by the
     bankruptcy court which provided for the Lease to be  assumed
     by  GCR  and assigned to another operator who purchased  the
     Partnership's  share  of the property.   The  reorganization
     plan  also provided for the Partnership to collect all rents
     outstanding  under the terms of the Lease.  On  October  25,
     2000,  the  sale closed with the Partnership  receiving  net
     sale  proceeds of $355,151, which resulted in a net gain  of
     $118,740.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation   was   $280,019   and   $43,608,
     respectively.

     In   November  2000,  the  Lease  on  the  Taco  Fiesta   in
     Brownsville,  Texas  expired and  was  not  renewed  by  the
     tenant.   The  restaurant was closed and  listed  for  sale.
     While   the   property  was  vacant,  the  Partnership   was
     responsible  for  the  real estate  taxes  and  other  costs
     required  to maintain the property.  At December  31,  2000,
     the  property was reclassified on the balance sheet to  Real
     Estate  Held  for  Sale.   In March  2001,  the  Partnership
     entered  into  an  agreement to  sell  the  property  to  an
     unrelated  third  party.  On June 7, 2001, the  sale  closed
     with   the  Partnership  receiving  net  sale  proceeds   of
     $463,323, which resulted in a net gain of $18,628.   At  the
     time  of sale, the cost and related accumulated depreciation
     was $560,338 and $115,643.

     On May 24, 2001, the Partnership sold 1.1556% of the Champps
     Americana restaurant in Columbus, Ohio to an unrelated third
     party.   The  Partnership  received  net  sale  proceeds  of
     $38,778,  which resulted in a net gain of $12,410.   At  the
     time  of sale, the cost and related accumulated depreciation
     of the interest sold was $29,646 and $3,278, respectively.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(4)  Investments in Real Estate - (Continued)

     On  August  17,  2001, the Partnership sold 1.0366%  of  the
     Tumbleweed  restaurant in Chillicothe, Ohio to an  unrelated
     third party.  The Partnership received net sale proceeds  of
     $15,788,  which  resulted in a net gain of $3,335.   At  the
     time  of sale, the cost and related accumulated depreciation
     of the interest sold was $13,219 and $766, respectively.

     During  2001 and 2000, the Partnership distributed  $249,739
     and  $50,089  of  the net sale proceeds to the  Limited  and
     General   Partners  as  part  of  their  regular   quarterly
     distributions  which  represented a  return  of  capital  of
     $12.38 and $2.45 per Limited Partnership Unit, respectively.
     The  remaining net sale proceeds will either be  re-invested
     in  additional properties or distributed to the Partners  in
     the future.

     On  June  30, 2000, the Partnership purchased a 24% interest
     in  a  parcel  of land in Alpharetta, Georgia for  $385,920.
     The  land  is  leased to Razzoo's, Inc. (RI) under  a  Lease
     Agreement with a primary term of 15 years and annual  rental
     payments  of  $32,803.   Effective November  26,  2000,  the
     annual  rent was increased to $37,627.  Simultaneously  with
     the  purchase  of the land, the Partnership entered  into  a
     Development  Financing Agreement under which the Partnership
     advanced  funds  to RI for the construction  of  a  Razzoo's
     restaurant on the site.  Initially, the Partnership  charged
     interest  on  the  advances at a rate  of  8.5%.   Effective
     November  26,  2000 and January 31, 2001, the interest  rate
     was increased to 9.75% and 15.0%, respectively.  On July 11,
     2001,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $88,735.   The Partnership's share of the total  acquisition
     costs, including the cost of the land, was $895,503.

     The  Partnership owns a 9.3699% interest in  a  Taco  Cabana
     restaurant in San Antonio, Texas, a 5.8291% interest  in  an
     Applebee's  restaurant  in Destin,  Florida  and  a  7.5158%
     interest  in a Tractor Supply Company store.  The  remaining
     interests  in these properties are owned by unrelated  third
     parties,  who  own  the  property with  the  Partnership  as
     tenants-in-common.

     The   minimum  future  rentals  on  the  Leases  for   years
     subsequent to December 31, 2001 are as follows:

                       2002          $ 1,920,094
                       2003            1,930,810
                       2004            1,955,452
                       2005            1,881,661
                       2006            1,446,150
                       Thereafter     10,998,548
                                      -----------
                                     $20,132,715
                                      ===========

     In  2001  and  2000,  the Partnership recognized  contingent
     rents of $-0- and $10,057, respectively.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(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:

                                                2001         2000
        Tenants                   Industry

     ARAMARK Educational
        Resources, Inc.          Child Care   $  585,998   $  594,859
     Champps Americana Group     Restaurant      294,566      295,157
     Texas Taco Cabana L.P.      Restaurant      240,632      232,494
     Heartland Restaurant Corp.  Restaurant      236,460      227,366
                                               ----------   ----------

     Aggregate rent revenue of major tenants  $1,357,656   $1,349,876
                                               ==========   ==========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue               73%          72%
                                               ==========   ==========

(6)  Partners' Capital -

     Cash  distributions of $18,505 and $18,788 were made to  the
     General Partners and $1,498,249 and $1,506,165 were made  to
     the  Limited Partners for the years ended December 31,  2001
     and 2000, respectively.  The Limited Partners' distributions
     represent  $74.90  and $73.89 per Limited  Partnership  Unit
     outstanding  using 20,004 and 20,385 weighted average  Units
     in 2001 and 2000, respectively.  The distributions represent
     $44.52  and  $52.26 per Unit of Net Income, and  $30.38  and
     $21.63 per Unit of return of contributed capital in 2001 and
     2000, respectively.

     As  part  of  the  Limited  Partner distributions  discussed
     above,  the Partnership distributed $247,242 and $49,589  of
     proceeds from property sales in 2001 and 2000, respectively.
     The distributions reduced the Limited Partnership's Adjusted
     Capital Contribution.

     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  2001  and  2000  were subordinated  to  the  Limited
     Partners  as  required in the Partnership Agreement.   As  a
     result,  99% of distributions were allocated to the  Limited
     Partners and 1% to the General Partners.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(6)  Partners' Capital - (Continued)

     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  2001, thirty-four Limited Partners redeemed a  total
     of  371.72 Partnership Units for $333,745 in accordance with
     the  Partnership Agreement.  The Partnership acquired  these
     Units using Net Cash Flow from operations.  In 2000, twenty-
     six  Limited Partners redeemed a total of 403.91 Partnership
     Units  for $353,794.  The redemptions increase the remaining
     Limited Partners' ownership interest in the Partnership.

     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
     $1,074.60 per original $1,000 invested.

(7)  Income Taxes -

     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:

                                               2001          2000
     Net Income for Financial
      Reporting Purposes                    $1,301,468   $1,434,483

     Depreciation for Tax Purposes
      Under Depreciation for Financial
      Reporting Purposes                        18,983       33,552

     Income Accrued for Tax Purposes
      Under Income for Financial
      Reporting Purposes                       (13,275)      (4,091)

     Gain on Sale of Real Estate for
        Tax Purposes Under Gain for
        Financial Reporting Purposes          (219,324)     (25,322)
                                             -----------  -----------
           Taxable Income to Partners       $1,087,852   $1,438,622
                                             ===========  ===========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(7)  Income Taxes - (Continued)

     The  following is a reconciliation of Partners' capital  for
     financial  reporting purposes to Partners' capital  reported
     for federal income tax purposes for the years ended December
     31:

                                                2001            2000

     Partners' Capital for
       Financial  Reporting Purposes         $13,183,466     $13,732,497

     Adjusted Tax Basis of Investments
      in Real Estate Over Net
      Investments in Real Estate
      for Financial Reporting Purposes           419,820         620,161

     Income Accrued for Tax Purposes Over
      Income for Financial
      Reporting Purposes                               0          13,275

     Syndication Costs Treated as Reduction
      of Capital for Financial Reporting
      Purposes                                 3,336,442       3,336,442
                                              -----------     -----------
           Partners' Capital for
               Tax  Reporting Purposes       $16,939,728     $17,702,375
                                              ===========     ===========

(8)  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:

                                   2001                    2000
                          Carrying       Fair     Carrying      Fair
                           Amount       Value      Amount       Value

     Cash                $      486   $      486  $      591  $      591
     Money Market Funds     938,212      938,212   1,025,436   1,025,436
                          ----------   ----------  ----------  ----------
      Total Cash and
       Cash Equivalents  $  938,698   $  938,698  $1,026,027  $1,026,027
                          ==========   ==========  ==========  ==========


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

       None.

                            PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
        PERSONS; 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
of  the  registrant are Robert P. Johnson and AFM.   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 director and  officers
of AFM are as follows:

        Robert  P.  Johnson, age 57, is Chief Executive  Officer,
President  and  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, 2002.  From  1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing  in  tax-advantaged  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  Securities  and
Exchange Commission as a securities broker-dealer, is a member of
the  National Association of Securities Dealers, Inc. (NASD)  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  thirteen  limited partnerships and a managing member  in  two
LLCs.

        Mark  E.  Larson,  age 49, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue in these position until December, 2002.  Mr. Larson  has
been  executive Vice President and Treasurer since the  formation
of  AFM  in  September,  1988 and Chief Financial  Officer  since
January, 1990.  In January, 1993 Mr. Larson was elected to  serve
as  Secretary  of AFM and will continue to serve until  December,
2001.  Mr. Larson has been employed by AEI Fund Management,  Inc.
and  affiliated  entities since 1985.  From  1979  to  1985,  Mr.
Larson   was  with  Apache  Corporation  as  manager  of  Program
Accounting  responsible  for  the  accounting  and  reports   for
approximately 46 public partnerships.  Mr. Larson is  responsible
for   supervising  the  accounting  functions  of  AFM  and   the
registrant.

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 and management services.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT.

        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 28, 2002:

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

   AEI Fund Management XVIII, Inc.          0            0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Robert P. Johnson                        5            *
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Mark E. Larson                           0            0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   *  Less than 1%

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.

        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.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. (Continued)

        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, 2001.

                                                         Amount Incurred
Person or Entity                                          From Inception
 Receiving                  Form and Method           (September 20, 1988) to
Compensation                of Compensation              December 31, 2001

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.

ITEM   12.    CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS.
(Continued)

                                                         Amount Incurred
Person or Entity                                          From Inception
 Receiving                  Form and Method           (September 20, 1988) to
Compensation                of Compensation              December 31, 2001

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

General Partners and  Reimbursement at Cost for all          $  520,039
Affiliates            Acquisition Expenses


General Partners and  Reimbursement at Cost for all          $3,223,976
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.

General Partners and  Reimbursement at Cost for all          $  340,133
Affiliates            expenses related to the disposition
                      of the Fund's properties.

General Partners      1% of Net Cash Flow in any fiscal      $  192,360
                      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   $   15,791
                      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.

        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, (ii) the cumulative property management
fees  allowed  but  not  paid, (iii) any real  estate  commission
allowed under the Guidelines, and (iv) 10% of Net Cash Flow  less
the  Net Cash Flow actually distributed.  The reimbursements  not
allowed  under  the  Guidelines include  a  controlling  person's
salary  and  fringe  benefits,  rent  and  depreciation.   As  of
December  31, 2001, the cumulative reimbursements to the  General
Partners and their affiliates did not exceed those amounts.


                             PART IV

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K AND FORM 8-K/A.

         A. Exhibits -
                             Description

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

     10.1  Net  Lease Agreement dated September 28, 1989  between
     the  Partnership and Children's World Learning Centers, Inc.
     relating  to  the  property at 4120 E. Ranch  Circle  Drive,
     Phoenix, Arizona (incorporated by reference to Exhibit  10.2
     of  Post-Effective  Amendment  No.  1  to  the  registrant's
     Registration Statement on Form S-11 filed on April 14,  1990
     [File No. 33-24419]).

     10.2  Net  Lease Agreement dated June 26, 1990  between  the
     Partnership  and  Children's World  Learning  Centers,  Inc.
     relating  to  the  property at 2100 North  Highway  7,  Blue
     Springs,  Missouri  (incorporated by  reference  to  Exhibit
     10.6 of Form 10-K filed on July 27, 1992).

     10.3  Net  Lease Agreement dated September 13, 1990  between
     the  Partnership and Children's World Learning Centers, Inc.
     relating  to  the property at 8555 Monrovia Street,  Lenexa,
     Kansas  (incorporated by reference to Exhibit 10.8  of  Form
     10-K filed on July 27, 1992).

     10.4  Net  Lease Agreement dated December 29,  1990  between
     the  Partnership  and  Taco Cabana,  Inc.  relating  to  the
     property  at  7339  San  Pedro Avenue,  San  Antonio,  Texas
     (incorporated  by  reference to Exhibit 10.9  of  Form  10-K
     filed on July 27, 1992).

     10.5 Net Lease Agreement dated January 22, 1991 between  the
     Partnership  and  Heartland Restaurant Corporation  relating
     to  the  property  at  1301 N.W. 114th Street,  Clive,  Iowa
     (incorporated  by reference to Exhibit 10.10  of  Form  10-K
     filed on July 27, 1992).

     10.6  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 on July 27, 1992).

     10.7  Net  Lease Agreement dated July 19, 1991  between  the
     Partnership  and Taco Cabana, Inc. relating to the  property
     at  6867  Highway 90 West, San Antonio, Texas  (incorporated
     by  reference  to Exhibit 10.13 of Form 10-K filed  on  July
     27, 1992).

     10.8 Net Lease Agreement dated October 31, 1991 between  the
     Partnership  and T.S.S.O., Inc. relating to the property  at
     5701  Emerald  Coast Parkway, Destin, Florida  (incorporated
     by  reference  to Exhibit 10.15 of Form 10-K filed  on  July
     27, 1992).

     10.9  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 on March 29, 1993).

     10.10      Net  Lease  Agreement  dated  December  7,   1992
     between  the Partnership and Red Line San Antonio One,  Ltd.
     relating  to  the  property  at  4606  Rittiman  Road,   San
     Antonio,  Texas (incorporated by reference to Exhibit  10.20
     of Form 10-K filed on March 29, 1993).

     10.11      Co-Tenancy Agreement dated June 17, 1994  between
     the   Partnership  and  Nicoletta  Trust  relating  to   the
     property  at  5701  Emerald Coast Parkway,  Destin,  Florida
     (incorporated by reference to Exhibit 10.24 of  Form  10-KSB
     filed on March 30, 1995).

     10.12      Amendment of Lease dated January 25, 1996 between
     the  Partnership,  AEI Net Lease Income &  Growth  Fund  XIX
     Limited Partnership, Red Line San Antonio One, Ltd. and  Red
     Line  Burgers, Inc. relating to the properties at  529  Fair
     Avenue,   and   4606  Rittiman  Road,  San  Antonio,   Texas
     (incorporated by reference to Exhibit 10.26 of  Form  10-KSB
     filed on March 21, 1996).

     10.13      Net Lease Agreement dated April 10, 1996  between
     the  Partnership,  Robert  P.  Johnson  and  Tractor  Supply
     Company relating to the property at Old Airport Road and  I-
     81,  Bristol, Virginia (incorporated by reference to Exhibit
     10.2 of Form 8-K filed on April 17, 1996).


ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K AND FORM 8-K/A. (Continued)

         A. Exhibits -
                             Description

     10.14      Net Lease Agreement dated August 29, 1996 between
     the  Partnership,  AEI  Income &  Growth  Fund  XXI  Limited
     Partnership  and  Americana Dining Corporation  relating  to
     the  property  at  161  E. Campus View Boulevard,  Columbus,
     Ohio (incorporated by reference to Exhibit 10.3 of Form  8-K
     filed on September 12, 1996).

     10.15      Property  Co-Tenancy  Ownership  Agreement  dated
     August  5,  1996  between  the Partnership  and  Carolyn  W.
     Davidson  relating to the property at 6867 Highway 90  West,
     San  Antonio,  Texas (incorporated by reference  to  Exhibit
     10.2 of Form 10-QSB filed on November 14, 1996).

     10.16      Property  Co-Tenancy  Ownership  Agreement  dated
     September  12,  1996  between  the  Partnership,  Robert  P.
     Johnson, and Joyce R. Scott relating to the property at  Old
     Airport  Road  and I-81, Bristol, Virginia (incorporated  by
     reference  to Exhibit 10.4 of Form 10-QSB filed on  November
     14, 1996).

     10.17      Property  Co-Tenancy  Ownership  Agreement  dated
     October   15,  1996  between  the  Partnership,  Robert   P.
     Johnson,  and  Arel D. and Louise B. Middleton  relating  to
     the   property  at  Old  Airport  Road  and  I-81,  Bristol,
     Virginia (incorporated by reference to Exhibit 10.7 of  Form
     10-QSB filed on November 14, 1996).

     10.18      Property  Co-Tenancy  Ownership  Agreement  dated
     October  15,  1996 between the Partnership and Arel  D.  and
     Louise  B.  Middleton  relating  to  the  property  at  6867
     Highway  90  West,  San  Antonio,  Texas  (incorporated   by
     reference  to Exhibit 10.8 of Form 10-QSB filed on  November
     14, 1996).

     10.19      Property  Co-Tenancy  Ownership  Agreement  dated
     December  16,  1996 between the Partnership and  the  Hesson
     Family  Living  Trust  relating  to  the  property  at  6867
     Highway  90  West,  San  Antonio,  Texas  (incorporated   by
     reference  to  Exhibit 10.34 of Form 10-KSB filed  on  March
     17, 1997).

     10.20      Property Co-Tenancy Agreement dated December  30,
     1996  between  the  Partnership and John  Pasini  and  Elvia
     Pasini  relating  to  the property  at  5701  Emerald  Coast
     Parkway,  Destin,  Florida  (incorporated  by  reference  to
     Exhibit 10.38 of Form 10-KSB filed on March 17, 1997).

     10.21      Property Co-Tenancy Agreement dated December  30,
     1996  between the Partnership and Kent T. Wood and  Kimberly
     Pasini  Wood relating to the property at 5701 Emerald  Coast
     Parkway,  Destin,  Florida  (incorporated  by  reference  to
     Exhibit 10.39 of Form 10-KSB filed on March 17, 1997).

     10.22      Property  Co-Tenancy Agreement dated  January  2,
     1997  between the Partnership and William E. Mason and Hazel
     Mason  relating to the property at Old Airport Road  and  I-
     81,  Bristol, Virginia (incorporated by reference to Exhibit
     10.40 of Form 10-KSB filed on March 17, 1997).

     10.23      Property  Co-Tenancy  Ownership  Agreement  dated
     February 28, 1997 between the Partnership and Anton  Kuster,
     Jr.  relating to the property at 6867 Highway 90  West,  San
     Antonio,  Texas (incorporated by reference to Exhibit  10.42
     of Form 10-KSB filed on March 17, 1997).

     10.24      Property  Co-Tenancy  Ownership  Agreement  dated
     March  10,  1997 between the Partnership and the  Thomas  W.
     Adamson  Family Limited Partnership relating to the property
     at   Old   Airport   Road   and  I-81,   Bristol,   Virginia
     (incorporated  by reference to Exhibit 10.2 of  Form  10-QSB
     filed on May 13, 1997).

     10.25      Property  Co-Tenancy  Ownership  Agreement  dated
     March  10,  1997 between the Partnership and the  Thomas  W.
     Adamson  Family Limited Partnership relating to the property
     at    5701    Emerald   Coast   Parkway,   Destin,   Florida
     (incorporated  by reference to Exhibit 10.4 of  Form  10-QSB
     filed on May 13, 1997).

     10.26      Property  Co-Tenancy  Ownership  Agreement  dated
     March  10,  1997 between the Partnership and the  Thomas  W.
     Adamson  Family Limited Partnership relating to the property
     at   161   E.   Campus   View  Boulevard,   Columbus,   Ohio
     (incorporated  by reference to Exhibit 10.6 of  Form  10-QSB
     filed on May 13, 1997).

     10.27      Property  Co-Tenancy  Ownership  Agreement  dated
     March  21,  1997 between the Partnership and the  Thomas  W.
     Adamson  Family Limited Partnership relating to the property
     at   Old   Airport   Road   and  I-81,   Bristol,   Virginia
     (incorporated  by reference to Exhibit 10.8 of  Form  10-QSB
     filed on May 13, 1997).


ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K AND  FORM  8-K/A. (Continued)

         A. Exhibits -
                            Description

     10.28      Property  Co-Tenancy  Ownership  Agreement  dated
     March  21,  1997 between the Partnership and the  Thomas  W.
     Adamson  Family Limited Partnership relating to the property
     at    5701    Emerald   Coast   Parkway,   Destin,   Florida
     (incorporated by reference to Exhibit 10.11 of  Form  10-QSB
     filed on May 13, 1997).

     10.29      Property  Co-Tenancy  Ownership  Agreement  dated
     March  21,  1997 between the Partnership and the  Thomas  W.
     Adamson  Family Limited Partnership relating to the property
     at   161   E.   Campus   View  Boulevard,   Columbus,   Ohio
     (incorporated by reference to Exhibit 10.14 of  Form  10-QSB
     filed on May 13, 1997).

     10.30      Property  Co-Tenancy  Ownership  Agreement  dated
     July   28,  1997  between  the  Partnership  and  Calderwood
     Investments Limited Partnership relating to the property  at
     161  E.  Campus View Boulevard, Columbus, Ohio (incorporated
     by  reference to Exhibit 10.5 of Form 10-QSB filed on August
     5, 1997).

     10.31      Net  Lease Agreement dated July 30, 1977  between
     the  Partnership  and  Fuddruckers,  Inc.  relating  to  the
     property  at  12020 Pennsylvania Street, Thornton,  Colorado
     (incorporated  by reference to Exhibit 10.6 of  Form  10-QSB
     filed on August 5, 1997).

     10.32      Property  Co-Tenancy  Ownership  Agreement  dated
     September 9, 1997 between the Partnership and Truong  Hoang,
     Trustee and Thanh Do, Trustee of the Hoang-Do Family  Living
     Trust  relating  to  the  property  at  5701  Emerald  Coast
     Parkway,  Destin,  Florida  (incorporated  by  reference  to
     Exhibit 10.3 of Form 10-QSB filed on November 4, 1997).

     10.33      Property  Co-Tenancy  Ownership  Agreement  dated
     September  22, 1997 between the Partnership and  Stanley  E.
     LaCorte  relating  to  the property at  5701  Emerald  Coast
     Parkway,  Destin,  Florida  (incorporated  by  reference  to
     Exhibit 10.5 of Form 10-QSB filed on November 4, 1997).

     10.34      Property  Co-Tenancy  Ownership  Agreement  dated
     September 25, 1997 between the Partnership and Nick  DeVito,
     Inc.  relating to the property at 6867 Highway 90 West,  San
     Antonio,  Texas (incorporated by reference to  Exhibit  10.6
     of Form 10-QSB filed on November 4, 1997).

     10.35      Property  Co-Tenancy  Ownership  Agreement  dated
     October  9,  1997  between the Partnership and  Reginald  O.
     Hill,  Trustee  of the Reginald O. Hill Trust dated  5/25/95
     and  Donna  Jean Hill, Trustee of the Donna Jean Hill  Trust
     dated  5/25/95 relating to the property at 6867  Highway  90
     West,  San  Antonio,  Texas (incorporated  by  reference  to
     Exhibit 10.9 of Form 10-QSB filed on November 4, 1997).

     10.36      Property  Co-Tenancy  Ownership  Agreement  dated
     October 24, 1997 between the Partnership and Anthony  Drago,
     Trustee,  U/A  DTD  8/19/80, FBO Anthony and  Sydelle  Drago
     Family  Trust  relating to the property at 6867  Highway  90
     West,  San  Antonio,  Texas (incorporated  by  reference  to
     Exhibit 10.10 of Form 10-QSB filed on November 4, 1997).

     10.37      Property  Co-Tenancy  Ownership  Agreement  dated
     November  5,  1997  between the Partnership  and  Ernest  E.
     Ainslie  and  Marion  B. Ainslie, Trustees  of  the  Ainslie
     Living  Trust  relating to the property at Old Airport  Road
     and  I-81,  Bristol, Virginia (incorporated by reference  to
     Exhibit 10.71 of Form 10-KSB filed on March 23, 1998).

     10.38      Property  Co-Tenancy  Ownership  Agreement  dated
     November  21, 1997 between the Partnership and the Helen  W.
     Rehwaldt, Trustee, Deerwood Revocable Trust relating to  the
     property  at  Old  Airport Road and I-81, Bristol,  Virginia
     (incorporated by reference to Exhibit 10.73 of  Form  10-KSB
     filed on March 23, 1998).

     10.39      Net  Lease  Agreement  dated  December  23,  1997
     between  the  Partnership, AEI Real Estate Fund  XV  Limited
     Partnership, AEI Net Lease Income & Growth Fund XIX  Limited
     Partnership,  AEI Real Estate Fund XVII Limited  Partnership
     and Champps Entertainment, Inc. relating to the property  at
     301  West  Big Beaver Road, Troy, Michigan (incorporated  by
     reference  to  Exhibit 10.75 of Form 10-KSB filed  on  March
     23, 1998).

     10.40      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 on May 8, 1998).


ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K AND  FORM  8-K/A. (Continued)

         A. Exhibits -
                             Description

     10.41     Net Lease Agreement dated May 1, 1998 between  the
     Partnership and Tumbleweed, LLC relating to the property  at
     6959  East  Broad  Street, Columbus, Ohio  (incorporated  by
     reference  to Exhibit 10.6 of Form 10-QSB filed  on  May  8,
     1998).

     10.42      Assignment  of Lease dated May 18,  1998  between
     the  Partnership  and  Alpha  Group,  LLC  relating  to  the
     property  at North Avenue and Wolf Road, Northlake, Illinois
     (incorporated  by reference to Exhibit 10.2 of  Form  10-QSB
     filed on July 31, 1998).

     10.43      First  Amendment  to Net  Lease  Agreement  dated
     September  3,  1998 between the Partnership, AEI  Net  Lease
     Income  &  Growth  Fund  XIX Limited Partnership,  AEI  Real
     Estate  Fund XVII Limited Partnership, AEI Real Estate  Fund
     XV  Limited  Partnership  and  Champps  Entertainment,  Inc.
     relating to the property at 301 West Big Beaver Road,  Troy,
     Michigan (incorporated by reference to Exhibit 10.1 of  Form
     10-QSB filed on November 9, 1998).

     10.44      Assignment of the Development Financing Agreement
     and  Net  Lease Agreement dated August 27, 1998 between  the
     Partnership,  AEI Real Estate Fund XVII Limited Partnership,
     AEI  Income  &  Growth  Fund  XXI Limited  Partnership,  AEI
     Income  & Growth Fund XXII Limited Partnership and Americana
     Dining   Corporation  relating  to  the  property  at   7880
     Washington  Village  Drive, Centerville, Ohio  (incorporated
     by  reference  to  Exhibit  10.2 of  Form  10-QSB  filed  on
     November 9, 1998).

     10.45      Net  Lease Agreement dated June 29, 1998  between
     AEI  Income  &  Growth  Fund XXII  Limited  Partnership  and
     Americana  Dining Corporation relating to  the  property  at
     7880    Washington   Village   Drive,   Centerville,    Ohio
     (incorporated  by reference to Exhibit 10.4 of  Form  10-QSB
     filed on November 9, 1998).

     10.46      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 on March
     15, 1999).

     10.47       Purchase  Agreement  for  Fee  Simple  Undivided
     Interest  and  Assignment  of  Net  Lease  Agreement   dated
     December 28, 1998 between the Partnership and AEI Net  Lease
     Income  &  Growth Fund XIX Limited Partnership  relating  to
     the  property  at  6959  East Broad Street,  Columbus,  Ohio
     (incorporated by reference to Exhibit 10.71 of  Form  10-KSB
     filed on March 15, 1999).

     10.48      First  Amendment  to Net  Lease  Agreement  dated
     December  28,  1998 between the Partnership, AEI  Net  Lease
     Income   &   Growth   Fund  XIX  Limited   Partnership   and
     Tumbleweed, LLC relating to the property at 6959 East  Broad
     Street,   Columbus,  Ohio  (incorporated  by  reference   to
     Exhibit 10.72 of Form 10-KSB filed on March 15, 1999).

     10.49      First  Amendment  to Net  Lease  Agreement  dated
     January  27,  1999 between the Partnership, AEI Real  Estate
     Fund XVII Limited Partnership, AEI Income & Growth Fund  XXI
     Limited  Partnership, AEI Income & Growth Fund XXII  Limited
     Partnership  and  Americana Dining  Corp.  relating  to  the
     property  at  7880  Washington Village  Drive,  Centerville,
     Ohio (incorporated by reference to Exhibit 10.73 of Form 10-
     KSB filed on March 15, 1999).

     10.50      Purchase Agreement dated April 27,  2000  between
     the  Partnership  and Paul D'Alto, Trustee relating  to  the
     property   at   10401   Highway  441,   Belleview,   Florida
     (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
     filed on May 5, 2000).

     10.51      Development Financing Agreement  dated  June  30,
     2000  between the Partnership, AEI Net Lease Income & Growth
     Fund  XIX Limited Partnership, AEI Income & Growth  Fund  23
     LLC,   AEI   Private  Net  Lease  Millennium  Fund   Limited
     Partnership  and Razzoo's, Inc. relating to the property  at
     5970  North Point Parkway, Alpharetta, Georgia (incorporated
     by  reference to Exhibit 10.1 of Form 10-QSB filed on August
     2, 2000).

     10.52      Net  Lease Agreement dated June 30, 2000  between
     the  Partnership,  AEI Net Lease Income &  Growth  Fund  XIX
     Limited  Partnership, AEI Income & Growth Fund 23  LLC,  AEI
     Private  Net  Lease Millennium Fund Limited Partnership  and
     Razzoo's, Inc. relating to the property at 5970 North  Point
     Parkway,  Alpharetta, Georgia (incorporated by reference  to
     Exhibit 10.2 of Form 10-QSB filed on August 2, 2000).

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K AND  FORM  8-K/A. (Continued)

         A. Exhibits -
                            Description

     10.53     Asset Purchase Agreement dated September 18,  2000
     between  the  Partnership, AEI Real Estate Fund XVI  Limited
     Partnership  and Southern River Restaurants LLC relating  to
     the  property  at 850 I-10 Service Road, Slidell,  Louisiana
     (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
     filed on November 7, 2000).

     10.54      Purchase  Agreement dated March 5,  2000  between
     the  Partnership and Mark W. Wright, Trustee relating to the
     property   at   54  South  Expressway,  Brownsville,   Texas
     (incorporated by reference to Exhibit 10.57 of  Form  10-KSB
     filed on March 9, 2001).

     10.55     Purchase Agreement dated May 17, 2001 between  the
     Partnership,   AEI   Income  &  Growth  Fund   XXI   Limited
     Partnership  and Walter L. Schrock relating to the  property
     at   161   E.   Campus   View  Boulevard,   Columbus,   Ohio
     (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
     filed on August 7, 2001).

     10.56      Property Co-Tenancy Agreement dated May 24,  2001
     between  the  Partnership and Walter L. Schrock relating  to
     the  property  at  161  E. Campus View Boulevard,  Columbus,
     Ohio (incorporated by reference to Exhibit 10.2 of Form  10-
     QSB filed on August 7, 2001).

     10.57     First Amendment to Net Lease Agreement dated  July
     11,  2001  between the Partnership, AEI Net Lease  Income  &
     Growth  Fund  XIX Limited Partnership, AEI Income  &  Growth
     Fund  23  LLC, AEI Private Net Lease Millennium Fund Limited
     Partnership  and Razzoo's, Inc. relating to the property  at
     5970  North Point Parkway, Alpharetta, Georgia (incorporated
     by  reference to Exhibit 10.3 of Form 10-QSB filed on August
     7, 2001).

         B.  Reports on Form 8-K and Form 8-K/A - None.


                           SIGNATURES

       Pursuant to the requirements of Section 13 or 15(d) of the
Securities  Exchange Act of 1934, the registrant has duly  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 8, 2002               By:/s/ Robert P. Johnson
                                   Robert  P. Johnson, President and Director
                                   (Principal Executive Officer)


        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, 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 8, 2002
    Robert P. Johnson  and Sole Director of Managing General
                       Partner

/s/ Mark E. Larson     Executive Vice President, Treasurer      March 8, 2002
    Mark E. Larson     and Chief Financial Officer
                       (Principal Accounting Officer)