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, 2003

                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.)

   30 East 7th Street, Suite 1300, 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.

The Issuer's revenues for year ended December 31, 2003 were
$880,353.

As  of  February 29, 2004, there were 19,517.583 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 $19,517,583.

               DOCUMENTS INCORPORATED BY REFERENCE

 The registrant has not incorporated any documents by reference
                        into this report.

         Transitional Small Business Disclosure Format:

                         Yes        No [X]

                             PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

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

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States and Canada, to lease such
properties  to  tenants under triple net  leases,  to  hold  such
properties   and  to  eventually  sell  such  properties.    From
subscription  proceeds,  the  Partnership  purchased   twenty-one
properties,  including  partial  interests  in  five  properties,
totaling  $18,868,379.  The balance of the subscription  proceeds
was  applied  to  organization  and  syndication  costs,  working
capital reserves and distributions, which represented a return of
capital.   The  properties  are  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 15 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.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

        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 at a formula price.  In many of the leases,
the  option  price  is  stated to be the  greater  of  the  price
determined by the stated formula or the fair market value of  the
property  as  agreed upon by the parties or determined  based  on
appraisals.  In general, the formula price is determined  in  one
of  two  ways.  Under the first, the option price is the original
purchase   price  of  the  property  increased  by  a   specified
percentage per year, compounded annually.  Under the second,  the
option  price is determined by dividing the annual  rent  at  the
time the purchase option is exercised by a percentage.  Based  on
the  scheduled annual rent under the lease, the resulting  option
price  would always be greater than the original purchase  price.
The  actual sale price of a property to a lessee may or  may  not
exceed original cost depending on market and other conditions.

Property Activity

       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%, 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.

        In  July  2003, the lessee of the Razzoo's restaurant  in
Alpharetta,  Georgia  notified  the  Partnership  that  they  are
experiencing  financial difficulty and may not  be  able  to  pay
future rents.  However, rents are current through March 31,  2004
and  the Partnership holds a personal guarantee from the majority
shareholder of the lessee for payment of all rents.  The personal
guarantee  expires on July 11, 2004.  In late  2003,  the  lessee
closed  the  restaurant  and has indicated  they  are  no  longer
interested   in  operating  a  restaurant  at  the   site.    The
Partnership is reviewing its available options and has listed the
property  with a local real estate broker for sale or lease.   At
this  time,  it  appears selling the property is  a  more  likely
outcome than re-leasing the property.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

       Although the lessee is continuing to pay rent, based on an
analysis  of  market conditions in the area, the Partnership  has
determined  the  property  is impaired  in  accordance  with  the
requirements  of Statement of Financial Accounting Standards  No.
144,  Accounting  for  the Impairment or Disposal  of  Long-Lived
Assets.  As a result, in the fourth quarter of 2003, a charge  to
discontinued  operations for real estate impairment  of  $252,399
was  recognized, which was the difference between the book  value
at  December 31, 2003 of $852,399 and the estimated fair value of
$600,000.  The charge was recorded against the cost of the  land,
building  and equipment.  At December 31, 2003, the property  was
classified as Real Estate Held for Sale.

        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.
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  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 2002 and 2001, the Partnership sold 5.6627% of the
Champps  Americana restaurant in Columbus, Ohio, in two  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $203,636, which resulted in a
net  gain  of  $77,938.  The total cost and  related  accumulated
depreciation  of  the  interests sold was $145,273  and  $19,575,
respectively.   For the years ended December 31, 2002  and  2001,
the net gain was $65,528 and $12,410, respectively.

        Through March 31, 2003, the Partnership sold 99.2394%  of
the  Fuddruckers  restaurant, in eight separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds of $1,989,027, which resulted in a net gain of $771,290.
The  total  cost  and  related accumulated  depreciation  of  the
interests  sold  was $1,395,078 and $177,341, respectively.   For
the  years  ended December 31, 2003 and 2002, the  net  gain  was
$286,861 and $484,429, respectively.

       During the first quarter of 2003, the Partnership sold the
Children's  World  daycare center in Phoenix,  Arizona,  in  four
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,592,169, which
resulted in a net gain of $1,016,152.  The total cost and related
accumulated  depreciation of the interests sold was $883,486  and
$307,469, respectively.

        During  the second quarter of 2003, the Partnership  sold
its  23.95% interest in the Champps Americana restaurant in Troy,
Michigan,  in  six  separate  transactions,  to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$1,657,062, which resulted in a net gain of $594,177.  The  total
cost  and related accumulated depreciation of the interests  sold
was $1,192,496 and $129,611, respectively.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

        On May 15, 2003, the Partnership sold its 40% interest in
the Tumbleweed restaurant in Columbus, Ohio to an unrelated third
party.   The Partnership received net sale proceeds of  $704,001,
which  resulted in a net gain of $201,568.  At the time of  sale,
the  cost  and related accumulated depreciation was $554,269  and
$51,836, respectively.

       During the first nine months of 2003, the Partnership sold
its   38%  interest  in  the  Champps  Americana  restaurant   in
Centerville,  Ohio, in nine separate transactions,  to  unrelated
third  parties.  The Partnership received total net sale proceeds
of  $2,126,740,  which resulted in a net gain of  $740,621.   The
total  cost and related accumulated depreciation of the interests
sold was $1,502,252 and $116,133, respectively.

       In October 2003, the Partnership entered into an agreement
to  sell  the Cheddar's restaurant in Clive, Iowa to an unrelated
third  party.  Subsequent to December 31, 2003, the  sale  closed
with the Partnership receiving net sale proceeds of approximately
$2,100,000,  which  resulted  in  a  net  gain  of  approximately
$1,192,000.  At December 31, 2003, the property was classified as
Real Estate Held for Sale with a book value of $907,656.

        In May 2003, the Partnership entered into an agreement to
sell  a  Taco  Cabana  restaurant in San Antonio,  Texas  to  the
lessee.  The agreement has been extended several times to  enable
the   lessee   to  complete  their  due  diligence  and   certain
negotiations with adjacent land owners.  The sale is  subject  to
contingencies  and  may  not  be  completed.   If  the  sale   is
completed,  the  Partnership expects to receive net  proceeds  of
approximately  $1,637,000, which will result in  a  net  gain  of
approximately  $479,000.  If this sale is not  completed,  it  is
likely  the Partnership will seek another buyer for the  property
and  may  not be able to negotiate a similar purchase  agreement.
At  December 31, 2003, the property was classified as Real Estate
Held for Sale with a book value of $1,157,654.

       On April 3, 2003, the Partnership purchased a 50% interest
in  a  parcel  of  land in Mansfield, Texas  for  $383,000.   The
Partnership  obtained  title  to the  land  in  the  form  of  an
undivided fee simple interest in the 50% interest purchased.  The
land is leased to Kona Restaurant Group, Inc. (KRG) under a Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $38,300.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement under which the Partnership advanced funds to  KRG  for
the  construction of a Johnny Carino's restaurant  on  the  site.
Pursuant  to the Lease, any improvements to the land  during  the
term  of  the  Lease  become the property  of  the  lessor.   The
Partnership  charged interest on the advances at a rate  of  10%.
On  September  3, 2003, after the development was completed,  the
Lease Agreement was amended to require annual rental payments  of
$103,250.   The Partnership's share of the total purchase  price,
including  the  cost of the land, was $1,028,886.  The  remaining
interest  in  the property was purchased by AEI Real Estate  Fund
XVII Limited Partnership, an affiliate of the Partnership.

        On  August  27,  2003, the Partnership  purchased  a  24%
interest  in a Garden Ridge retail store in Woodlands, Texas  for
$1,995,850.  The property is leased to Garden Ridge, L.P. under a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $226,209.  The remaining interests in the  property
were   purchased  by  AEI  Income  &  Growth  Fund  XXII  Limited
Partnership, AEI Income & Growth Fund 24 LLC and AEI Real  Estate
Fund XV Limited Partnership, affiliates of the Partnership.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

        Subsequent to December 31, 2003, Garden Ridge, L.P.  (GR)
filed   for  Chapter  11  bankruptcy  reorganization.   In  press
releases, GR has stated their intent to close eight of 44  stores
and  attempt to renegotiate lease terms for certain other stores.
The Woodlands store was not identified as one of the eight to  be
closed  and GR has verbally communicated that they are interested
in  confirming the Lease for this site.  It is possible  GR  will
attempt  to  negotiate a rent reduction or other concessions  for
this  site.   GR was current on rent through January  2004.   The
rent  for February is considered a pre-petition obligation, which
will  be paid from the bankruptcy court, on a prorata basis  with
other  claims, to the extent available.  The Partnership received
rent  for  March and expects to continue to receive all scheduled
rents  in future months unless the Lease is rejected by  GR.   If
the Lease is confirmed, GR must comply with all Lease terms.   If
the  Lease is rejected, GR would be required to return possession
of  the property to the Partnership and the Partnership would  be
responsible  for  real estate taxes and other costs  required  to
maintain the property.

       Subsequent to December 31, 2003, the Partnership purchased
a 50% interest in a Jared Jewelry store in Lakewood, Colorado for
approximately  $2,035,000.  The property is  leased  to  Sterling
Inc. under a Lease Agreement with a primary term of 20 years  and
annual  rental payments of $158,755.  The remaining  interest  in
the  property was purchased by AEI Net Lease Income & Growth Fund
XIX Limited Partnership, an affiliate of the Partnership.

        Subsequent to December 31, 2003, the Partnership  entered
into  an  agreement to purchase a 50% interest in an Eckerd  drug
store  in  Auburn,  New York for approximately  $2,244,000.   The
property  will  be  leased to Eckerd Corporation  under  a  Lease
Agreement  with  a  primary term of 20 years  and  annual  rental
payments  of  approximately $185,000.  AEI  Net  Lease  Income  &
Growth  Fund  XIX  Limited  Partnership,  an  affiliate  of   the
Partnership, entered into an agreement to purchase the  remaining
interest in the property.

Major Tenants

        During 2003, three tenants each contributed more than ten
percent  of  the Partnership's total rental revenue.   The  major
tenants  in aggregate contributed 64% of total rental revenue  in
2003.   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  2004 and future years.  However, the tenant  of  the
Cheddars restaurant will not continue to be a major tenant  since
the property was sold in January 2004.  In addition, it is likely
the tenant of the Taco Cabana restaurants will not continue to be
a  major  tenant as it is likely one of the restaurants  will  be
sold   in  2004.   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.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

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.

ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 2003.

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

Children's World                           Knowledge
Daycare Center                             Learning
 Blue Springs, MO   6/27/90  $  791,271 Enterprises, Inc. $109,068   $13.64

Children's World                           Knowledge
Daycare Center                             Learning
 Lenexa, KS         9/13/90  $  983,527 Enterprises, Inc. $137,209   $17.12

Taco Cabana Restaurant                    Texas Taco
  San Antonio, TX  12/29/90  $1,406,426   Cabana L.P.     $244,514   $89.30

Cheddar's Restaurant                       Heartland
 Clive, IA          1/22/91  $1,392,249 Restaurant Corp.  $226,479   $31.46

Children's World                           Knowledge
Daycare Center                             Learning
 Westerville, OH    6/21/91  $  990,261 Enterprises, Inc. $134,930   $16.91

Taco Cabana Restaurant
 San Antonio, TX                          Texas Taco
 (9.3699%)          7/19/91  $  107,933   Cabana L.P.     $ 18,389   $43.86

Applebee's Restaurant                       Concord
 Destin, FL                              Neighborhood
 (5.8291%)          11/1/91  $   65,215   Corporation     $ 10,287   $36.68

Children's World                          Knowledge
Daycare Center                            Learning
 Columbus, OH       8/10/92  $1,019,202 Enterprises, Inc. $139,793   $15.83

Tractor Supply
 Company Store
 Bristol, VA                            Tractor Supply
 (7.5158%)          4/10/96  $   96,765 Company, Inc.     $ 11,568   $ 8.21

Champps Americana
 Restaurant                                Champps
 Columbus, OH                             Operating
 (.5061%)           8/29/96  $   12,984  Corporation      $  1,627   $39.35

Fuddruckers Restaurant
 Thornton, CO
 (.7606%)           7/30/97  $   10,693 Fuddruckers, Inc. $  1,291   $34.10

ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

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

Tumbleweed Restaurant
 Chillicothe, OH                         Tumbleweed,
 (43.9634%)        11/20/98  $  560,612     Inc.          $ 61,821   $25.65

Old Country Buffet
 Restaurant                                 OCB
 North Lake, IL    12/29/98  $1,350,804 Restaurant Co.    $143,000   $15.90

Razzoo's Restaurant
 Alpharetta, GA
 (24%)              7/11/01  $  895,503 Razzoo's, Inc.    $ 89,622   $46.13

Garden Ridge
 Retail Store
 Woodlands, TX                          Garden Ridge,
 (24%)              8/27/03  $1,995,850     L.P.          $226,209   $ 8.44

Johnny Carino's
 Restaurant
 Mansfield, TX                          Kona Restaurant
 (50%)               9/3/03  $1,028,886   Group, Inc.     $103,250   $31.93


        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the Partnership  and/or
unrelated  third  parties.   The  remaining  interests   in   the
Tumbleweed restaurant are owned by AEI Net Lease Income &  Growth
Fund  XIX Limited Partnership and an unrelated third party.   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 Garden
Ridge  retail  store are owned by AEI Income & Growth  Fund  XXII
Limited  Partnership,  AEI  Income  &  Growth  Fund  24  LLC  and
unrelated  third parties.  The remaining interest in  the  Johnny
Carino's restaurant is owned by AEI Real Estate Fund XVII 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,   the
Fuddruckers restaurant, and the Champps Americana restaurant  are
owned by unrelated third parties.

        The Partnership accounts for properties owned as tenants-
in-common  with  affiliated Partnerships and/or  unrelated  third
parties  using  the  proportionate  consolidation  method.   Each
tenant-in-common  owns  a  separate, undivided  interest  in  the
properties.   Any  tenant-in-common that holds more  than  a  50%
interest  does  not control decisions over the  other  tenant-in-
common  interests.   The financial statements reflect  only  this
Partnership's percentage share of the properties' land,  building
and equipment, liabilities, revenues and expenses.

ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

        The initial Lease terms are 20 years, except for the Taco
Cabana,  Razzoo's, and Tumbleweed restaurants, and the Children's
World daycare centers, which have Lease terms of 15 years and the
Johnny  Carino's restaurant, which has a Lease term of 17  years.
The  Leases  contain renewal options which may extend  the  Lease
term  an  additional 10 years, except for the Champps  Americana,
Johnny  Carino's and Fuddruckers restaurants, which have  renewal
options that may extend the Lease term an additional 15 years and
the  Old Country Buffet restaurant and Garden Ridge retail store,
which  have  renewal options that may extend the Lease  terms  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.

         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. 144, "Accounting for the Impairment or Disposal  of
Long-Lived Assets."  The real estate impairment loss,  which  was
recorded  against  the  book cost of  the  land  and  depreciable
property, was not recognized for tax purposes.

        Through  December 31, 2003, 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 COMMON EQUITY, RELATED STOCKHOLDER MATTERS
          AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES.

        As  of  December  31, 2003, there were 1,436  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  2003, 18 Limited Partners redeemed a total  of
133.10  Partnership  Units for $120,203 in  accordance  with  the
Partnership Agreement.  During 2002, 26 Limited Partners redeemed
a   total   of  194.17  Partnership  Units  for  $175,988.    The
Partnership  acquired  these  Units  using  Net  Cash  Flow  from
operations.   In  prior  years, a total of 201  Limited  Partners
redeemed   2,933.20  Partnership  Units  for   $2,404,447.    The
redemptions  increase the remaining Limited  Partners'  ownership
interest  in  the  Partnership.  As a result of these  redemption
payments  and pursuant to the Partnership Agreement, the  General
Partners received distributions of $1,214 and $1,778 in 2003  and
2002, respectively.

       Cash distributions of $25,277 and $14,985 were made to the
General Partners and $2,502,468 and $1,483,566 were made  to  the
Limited   Partners   in   2003  and  2002,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above,  the  Partnership distributed $1,151,204  and  $34,648  of
proceeds from property sales in 2003 and 2002, respectively.  The
distributions  reduced  the  Limited Partners'  Adjusted  Capital
Contributions.

ITEM 6.MANAGEMENT'S DISCUSSION AND ANALYSIS.

        The Management's Discussion and Analysis contains various
"forward  looking  statements"  within  the  meaning  of  federal
securities  laws  which  represent management's  expectations  or
beliefs  concerning future events, including statements regarding
anticipated  application of cash, expected  returns  from  rental
income,  growth  in revenue, 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 the Partners;

     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.


The Application of Critical Accounting Policies

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

        The Partnership purchases properties and records them  in
the  financial  statements  at the lower  of  cost  or  estimated
realizable   value.   The  Partnership  initially   records   the
properties  at cost (including capitalized acquisition expenses).
The Partnership is required to periodically evaluate the carrying
value  of properties to determine whether their realizable  value
has  declined.   For  properties the Partnership  will  hold  and
operate, management determines whether impairment has occurred by
comparing the property's probability-weighted cash flows  to  its
current carrying value.  For properties held for sale, management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.  A change
in  these assumptions or analysis could cause material changes in
the carrying value of the properties.

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

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

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

Results of Operations

        For  the  years  ended December 31, 2003  and  2002,  the
Partnership  recognized rental income from continuing  operations
of  $880,353 and $887,824, respectively.  In 2003, rental  income
decreased  due  to  sales of the Fuddruckers restaurant  and  the
Champps Americana restaurant in Columbus, Ohio.  This decrease in
rental  income  was partially offset by additional rent  received
from  two  property  acquisitions in 2003 and rent  increases  on
eight properties.

        For  the  years  ended December 31, 2003  and  2002,  the
Partnership  incurred  Partnership administration  expenses  from
affiliated parties of $206,816 and $220,455, 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  $16,351 and $26,491, 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.

        Subsequent to December 31, 2003, Garden Ridge, L.P. (GR),
the  lessee of the Garden Ridge retail store in Woodlands, Texas,
filed   for  Chapter  11  bankruptcy  reorganization.   In  press
releases, GR has stated their intent to close eight of 44  stores
and  attempt to renegotiate lease terms for certain other stores.
The Woodlands store was not identified as one of the eight to  be
closed  and GR has verbally communicated that they are interested
in  confirming the Lease for this site.  It is possible  GR  will
attempt  to  negotiate a rent reduction or other concessions  for
this  site.   GR was current on rent through January  2004.   The
rent  for February is considered a pre-petition obligation, which
will  be paid from the bankruptcy court, on a prorata basis  with
other  claims, to the extent available.  The Partnership received
rent  for  March and expects to continue to receive all scheduled
rents  in future months unless the Lease is rejected by  GR.   If
the Lease is confirmed, GR must comply with all Lease terms.   If
the  Lease is rejected, GR would be required to return possession
of  the property to the Partnership and the Partnership would  be
responsible  for  real estate taxes and other costs  required  to
maintain the property.

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

        For  the  years  ended December 31, 2003  and  2002,  the
Partnership  recognized interest income of $76,309  and  $14,123,
respectively.   In  2003, interest income increased  due  to  the
Partnership  receiving  interest from construction  advances  and
having  more  money  invested in a money market  account  due  to
property sales.

        For  the  years  ended December 31, 2003  and  2002,  the
Partnership   recognized  gain  on  sale  of  real  estate   from
continuing  operations  of $286,861 and  $549,957,  respectively,
from  the sale of two properties.  Since the Partnership  retains
an  ownership interest in these properties, the operating results
and  gain  on  sale  of  the properties were  not  classified  as
discontinued operations.

        On  August 29, 2002, the Partnership sold 4.5071% of  the
Champps  Americana restaurant in Columbus, Ohio, to an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$164,858, which resulted in a net gain of $65,528.  The cost  and
related  accumulated  depreciation  of  the  interest  sold   was
$115,627 and $16,297, respectively.

        Through March 31, 2003, the Partnership sold 99.2394%  of
the  Fuddruckers  restaurant, in eight separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds of $1,989,027, which resulted in a net gain of $771,290.
The  total  cost  and  related accumulated  depreciation  of  the
interests  sold  was $1,395,078 and $177,341, respectively.   For
the  years  ended December 31, 2003 and 2002, the  net  gain  was
$286,861 and $484,429, respectively.

        In  accordance  with  Statement of  Financial  Accounting
Standards  No. 144, Accounting for the Impairment or Disposal  of
Long-Lived  Assets,  upon  complete disposal  of  a  property  or
classification of a property as Real Estate Held  for  Sale,  the
Partnership  includes  the operating  results  and  sale  of  the
property   in   discontinued  operations.    In   addition,   the
Partnership reclassifies the prior periods operating results  and
any  partial  sales  of the property to discontinued  operations.
For  the year ended December 31, 2003, the Partnership recognized
income  from  discontinued operations of $2,920,842, representing
rental income less property management expenses, depreciation and
real  estate impairment of $620,723 and gain on disposal of  real
estate  of  $2,552,518, which were partially  offset  by  a  real
estate  impairment loss of $252,399.  For the year ended December
31,  2002,  the  Partnership recognized income from  discontinued
operations of $873,420, representing rental income less  property
management expenses and depreciation.

       During the first quarter of 2003, the Partnership sold the
Children's  World  daycare center in Phoenix,  Arizona,  in  four
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,592,169, which
resulted in a net gain of $1,016,152.  The total cost and related
accumulated  depreciation of the interests sold was $883,486  and
$307,469, respectively.

        During  the second quarter of 2003, the Partnership  sold
its  23.95% interest in the Champps Americana restaurant in Troy,
Michigan,  in  six  separate  transactions,  to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$1,657,062, which resulted in a net gain of $594,177.  The  total
cost  and related accumulated depreciation of the interests  sold
was $1,192,496 and $129,611, respectively.

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

        On May 15, 2003, the Partnership sold its 40% interest in
the Tumbleweed restaurant in Columbus, Ohio to an unrelated third
party.   The Partnership received net sale proceeds of  $704,001,
which  resulted in a net gain of $201,568.  At the time of  sale,
the  cost  and related accumulated depreciation was $554,269  and
$51,836, respectively.

       During the first nine months of 2003, the Partnership sold
its   38%  interest  in  the  Champps  Americana  restaurant   in
Centerville,  Ohio, in nine separate transactions,  to  unrelated
third  parties.  The Partnership received total net sale proceeds
of  $2,126,740,  which resulted in a net gain of  $740,621.   The
total  cost and related accumulated depreciation of the interests
sold was $1,502,252 and $116,133, respectively.

       In October 2003, the Partnership entered into an agreement
to  sell  the Cheddar's restaurant in Clive, Iowa to an unrelated
third  party.  Subsequent to December 31, 2003, the  sale  closed
with the Partnership receiving net sale proceeds of approximately
$2,100,000,  which  resulted  in  a  net  gain  of  approximately
$1,192,000.  At December 31, 2003, the property was classified as
Real Estate Held for Sale with a book value of $907,656.

        In May 2003, the Partnership entered into an agreement to
sell  a  Taco  Cabana  restaurant in San Antonio,  Texas  to  the
lessee.  The agreement has been extended several times to  enable
the   lessee   to  complete  their  due  diligence  and   certain
negotiations with adjacent land owners.  The sale is  subject  to
contingencies  and  may  not  be  completed.   If  the  sale   is
completed,  the  Partnership expects to receive net  proceeds  of
approximately  $1,637,000, which will result in  a  net  gain  of
approximately  $479,000.  If this sale is not  completed,  it  is
likely  the Partnership will seek another buyer for the  property
and  may  not be able to negotiate a similar purchase  agreement.
At  December 31, 2003, the property was classified as Real Estate
Held for Sale with a book value of $1,157,654.

        In  July  2003, the lessee of the Razzoo's restaurant  in
Alpharetta,  Georgia  notified  the  Partnership  that  they  are
experiencing  financial difficulty and may not  be  able  to  pay
future rents.  However, rents are current through March 31,  2004
and  the Partnership holds a personal guarantee from the majority
shareholder of the lessee for payment of all rents.  The personal
guarantee  expires on July 11, 2004.  In late  2003,  the  lessee
closed  the  restaurant  and has indicated  they  are  no  longer
interested   in  operating  a  restaurant  at  the   site.    The
Partnership is reviewing its available options and has listed the
property  with a local real estate broker for sale or lease.   At
this  time,  it  appears selling the property is  a  more  likely
outcome than re-leasing the property.

       Although the lessee is continuing to pay rent, based on an
analysis  of  market conditions in the area, the Partnership  has
determined  the  property  is impaired  in  accordance  with  the
requirements  of Statement of Financial Accounting Standards  No.
144,  Accounting  for  the Impairment or Disposal  of  Long-Lived
Assets.  As a result, in the fourth quarter of 2003, a charge  to
discontinued  operations for real estate impairment  of  $252,399
was  recognized, which was the difference between the book  value
at  December 31, 2003 of $852,399 and the estimated fair value of
$600,000.  The charge was recorded against the cost of the  land,
building  and equipment.  At December 31, 2003, the property  was
classified as Real Estate Held for Sale.

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

        In  2003, the Partnership realized significant gains from
the  sale  of property.  While the real estate market is expected
to  remain  attractive for sellers of property, there can  be  no
assurance the Partnership will be able to achieve a similar level
of   sales  activity  or  sales  profitability  in  2004  due  to
unforeseen  changes in the real estate market.   In addition,  it
is likely the Partnership will curtail its selling activity as it
is  becoming more difficult to find attractive property in  which
to reinvest the proceeds from property sales.

        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 the year ended December 31, 2003, the Partnership's
cash  balances increased $3,321,747 as a result of cash generated
from  the  sale of property, which was partially offset  by  cash
used  to purchase property and distributions paid to the Partners
in  excess  of cash generated from operating activities.   During
the year ended December 31, 2002, the Partnership's cash balances
increased $1,516,160 as a result of cash generated from the  sale
of  property  and the Partnership distributed less  cash  to  the
Partners than it generated from operating activities.

        Net  cash provided by operating activities decreased from
$1,755,521  in  2002  to $1,366,469 in 2003  as  a  result  of  a
decrease  in  total rental and interest income in  2003  and  net
timing differences in the collection of payments from the lessees
and  the  payment of expenses, which were partially offset  by  a
decrease in Partnership administration expenses in 2003.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
form  the  sale of real estate.  During the years ended  December
31,  2003  and December 31, 2002, the Partnership generated  cash
flow  from  the sale of real estate of $6,794,299 and $1,439,558,
respectively.   During  the year ended  December  31,  2003,  the
Partnership  expended  $3,024,736 to invest  in  real  properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.


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

       On April 3, 2003, the Partnership purchased a 50% interest
in  a  parcel  of  land in Mansfield, Texas  for  $383,000.   The
Partnership  obtained  title  to the  land  in  the  form  of  an
undivided fee simple interest in the 50% interest purchased.  The
land is leased to Kona Restaurant Group, Inc. (KRG) under a Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $38,300.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement under which the Partnership advanced funds to  KRG  for
the  construction of a Johnny Carino's restaurant  on  the  site.
Pursuant  to the Lease, any improvements to the land  during  the
term  of  the  Lease  become the property  of  the  lessor.   The
Partnership  charged interest on the advances at a rate  of  10%.
On  September  3, 2003, after the development was completed,  the
Lease Agreement was amended to require annual rental payments  of
$103,250.   The Partnership's share of the total purchase  price,
including  the  cost of the land, was $1,028,886.  The  remaining
interest  in  the property was purchased by AEI Real Estate  Fund
XVII Limited Partnership, an affiliate of the Partnership.

        On  August  27,  2003, the Partnership  purchased  a  24%
interest  in a Garden Ridge retail store in Woodlands, Texas  for
$1,995,850.  The property is leased to Garden Ridge, L.P. under a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $226,209.  The remaining interests in the  property
were   purchased  by  AEI  Income  &  Growth  Fund  XXII  Limited
Partnership, AEI Income & Growth Fund 24 LLC and AEI Real  Estate
Fund XV Limited Partnership, affiliates of the Partnership.

       Subsequent to December 31, 2003, the Partnership purchased
a 50% interest in a Jared Jewelry store in Lakewood, Colorado for
approximately  $2,035,000.  The property is  leased  to  Sterling
Inc. under a Lease Agreement with a primary term of 20 years  and
annual  rental payments of $158,755.  The remaining  interest  in
the  property was purchased by AEI Net Lease Income & Growth Fund
XIX Limited Partnership, an affiliate of the Partnership.

        Subsequent to December 31, 2003, the Partnership  entered
into  an  agreement to purchase a 50% interest in an Eckerd  drug
store  in  Auburn,  New York for approximately  $2,244,000.   The
property  will  be  leased to Eckerd Corporation  under  a  Lease
Agreement  with  a  primary term of 20 years  and  annual  rental
payments  of  approximately $185,000.  AEI  Net  Lease  Income  &
Growth  Fund  XIX  Limited  Partnership,  an  affiliate  of   the
Partnership, entered into an agreement to purchase the  remaining
interest in the property.

        The  Partnership's primary use of cash flow,  other  than
investment   in  real  estate,  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.

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

        For  the  years  ended December 31, 2003  and  2002,  the
Partnership  declared distributions of $2,527,745 and $1,498,551,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions  of  $2,502,468  and  $1,483,566  and  the  General
Partners  received distributions of $25,277 and $14,985  for  the
periods,   respectively.   In  March  and  December   2003,   the
Partnership   declared  bonus  distributions  of   $202,020   and
$838,384,  respectively, of net sale proceeds, which resulted  in
higher  distributions in 2003 and a higher distributions  payable
at December 31, 2003.

         During   2003  and  2002,  the  Partnership  distributed
$1,162,833  and $34,998 of net sale proceeds to the  Limited  and
General Partners as part of their quarterly distributions,  which
represented  a return of capital of $58.89 and $1.75 per  Limited
Partnership Unit, respectively.  The remaining net sale  proceeds
will  either  be reinvested in additional property or distributed
to the Partners in the future.

        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  2003,  18 Limited Partners redeemed  a  total  of
133.10  Partnership  Units for $120,203 in  accordance  with  the
Partnership Agreement.  During 2002, 26 Limited Partners redeemed
a   total   of  194.17  Partnership  Units  for  $175,988.    The
Partnership  acquired  these  Units  using  Net  Cash  Flow  from
operations.   In  prior  years, a total of 201  Limited  Partners
redeemed   2,933.20  Partnership  Units  for   $2,404,447.    The
redemptions  increase the remaining Limited  Partners'  ownership
interest  in  the  Partnership.  As a result of these  redemption
payments  and pursuant to the Partnership Agreement, the  General
Partners received distributions of $1,214 and $1,778 in 2003  and
2002, respectively.

       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 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, 2003 and 2002

Statements for the Years Ended December 31, 2003 and 2002:

     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, 2003 and 2002 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,  2003 and 2002 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.
                           Boulay, Heutmaker, Zibell & Co. P.L.L.P.
                                   Certified Public Accountants

Minneapolis, Minnesota
January 23, 2004

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

                           DECEMBER 31

                             ASSETS
                                                  2003          2002
CURRENT ASSETS:
  Cash and Cash Equivalents                   $ 5,776,605   $ 2,454,858
  Receivables                                           0         6,740
                                               -----------   -----------
      Total Current Assets                      5,776,605     2,461,598
                                               -----------   -----------
INVESTMENTS IN REAL ESTATE:
  Land                                          2,330,739     4,770,593
  Buildings and Equipment                       6,683,264     9,536,257
  Accumulated Depreciation                     (1,722,648)   (2,897,209)
                                               -----------   -----------
                                                7,291,355    11,409,641
  Real Estate Held for Sale                     2,665,310             0
                                               -----------   -----------
      Net Investments in Real Estate            9,956,665    11,409,641
                                               -----------   -----------
           Total  Assets                      $15,733,270   $13,871,239
                                               ===========   ===========

                LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.        $    18,384   $   107,784
  Distributions Payable                         1,197,541       362,664
                                               -----------   -----------
      Total Current Liabilities                 1,215,925       470,448
                                               -----------   -----------
PARTNERS' CAPITAL:
  General Partners                                 28,251         5,466
  Limited Partners, $1,000 per Unit;
    30,000 Units authorized; 22,783 Issued;
    19,523 and 19,656 Units outstanding in
    2003 and 2002, respectively                14,489,094    13,395,325
                                               -----------   -----------
     Total Partners' Capital                   14,517,345    13,400,791
                                               -----------   -----------
      Total Liabilities and Partners'Capital  $15,733,270   $13,871,239
                                               ===========   ===========

 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

                                                  2003           2002

RENTAL INCOME                                 $   880,353    $   887,824

EXPENSES:
  Partnership Administration - Affiliates         206,816        220,455
  Partnership Administration and Property
     Management - Unrelated Parties                16,351         26,491
  Depreciation                                    175,482        184,736
                                               -----------    -----------
      Total Expenses                              398,649        431,682
                                               -----------    -----------

OPERATING INCOME                                  481,704        456,142

OTHER INCOME:
  Interest Income                                  76,309         14,123
  Gain on Sale of Real Estate                     286,861        549,957
                                               -----------    -----------
      Total Other Income                          363,170        564,080
                                               -----------    -----------

INCOME FROM CONTINUING OPERATIONS                 844,874      1,020,222

Income from Discontinued Operations             2,920,842        873,420
                                               -----------    -----------
NET INCOME                                    $ 3,765,716    $ 1,893,642
                                               ===========    ===========
NET INCOME ALLOCATED:
  General Partners                            $    49,276    $    22,229
  Limited Partners                              3,716,440      1,871,413
                                               -----------    -----------
                                              $ 3,765,716    $ 1,893,642
                                               ===========    ===========
INCOME PER LIMITED PARTNERSHIP UNIT:
   Continuing Operations                      $     42.56    $     50.99
   Discontinued Operations                         147.13          43.79
                                               -----------    -----------
         Total                                $    189.69    $     94.78
                                               ===========    ===========
Weighted Average  Units  Outstanding               19,592         19,745
                                               ===========    ===========

 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

                                                    2003          2002

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                    $ 3,765,716   $ 1,893,642

  Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                                   270,393       334,934
     Real Estate Impairment                         252,399             0
     Gain on Sale of Real Estate                 (2,839,379)     (549,957)
     (Increase) Decrease in Receivables               6,740        (6,740)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                   (89,400)       83,642
                                                 -----------   -----------
           Total Adjustments                     (2,399,247)     (138,121)
                                                 -----------   -----------
       Net Cash Provided By
           Operating Activities                   1,366,469     1,755,521
                                                 -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Investments in Real Estate                  (3,024,736)            0
     Proceeds from Sale of Real Estate            6,794,299     1,439,558
                                                 -----------   -----------
       Net Cash Provided By
           Investing Activities                   3,769,563     1,439,558
                                                 -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Increase (Decrease) in Distributions Payable   834,877        (2,602)
     Distributions to Partners                   (2,527,745)   (1,498,551)
     Redemption Payments                           (121,417)     (177,766)
                                                 -----------   -----------
       Net Cash Used For
         Financing Activities                    (1,814,285)   (1,678,919)
                                                 -----------   -----------
NET INCREASE IN CASH
    AND CASH EQUIVALENTS                          3,321,747     1,516,160

CASH AND CASH EQUIVALENTS, beginning of period    2,454,858       938,698
                                                 -----------   -----------
CASH AND CASH EQUIVALENTS, end of period        $ 5,776,605   $ 2,454,858
                                                 ===========   ===========

 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, 2001 $      0   $13,183,466  $13,183,466   19,849.85

  Distributions             (14,985)   (1,483,566)  (1,498,551)

  Redemption Payments        (1,778)     (175,988)    (177,766)    (194.17)

  Net Income                 22,229     1,871,413    1,893,642
                            --------   -----------  -----------  -----------
BALANCE, December 31, 2002    5,466    13,395,325   13,400,791   19,655.68

  Distributions             (25,277)   (2,502,468)  (2,527,745)

  Redemption Payments        (1,214)     (120,203)    (121,417)    (133.10)

  Net Income                 49,276     3,716,440    3,765,716
                            --------   -----------  -----------  ----------
BALANCE, December 31, 2003 $ 28,251   $14,489,094  $14,517,345   19,522.58
                            ========   ===========  ===========  ==========


 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, 2003 AND 2002

(1)  Organization -

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

     The   terms   of  the  Partnership  offering  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.   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, 2003 AND 2002

(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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

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

     Accounting Estimates

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

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

     Cash Concentrations of Credit Risk

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

     Statement of Cash Flows

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

     Receivables

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

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

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

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

     Income Taxes

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

       The  tax  return, 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   leases
       provide  for  base  annual  rental  payments  payable   in
       monthly  installments.  The Partnership recognizes  rental
       revenue  according to the terms of the individual  leases.
       For  leases  which  contain stated rental  increases,  the
       increases  are  recognized in the year in which  they  are
       effective.   Contingent  rental  payments  are  recognized
       when  the  contingencies on which the payments  are  based
       are  satisfied  and the rental payments become  due  under
       the terms of the leases.

       Real  estate is recorded at the lower of cost or estimated
       net   realizable  value.   The  Partnership  compares  the
       carrying   amount  of  its  properties  to  the  estimated
       probability-weighted future cash flows expected to  result
       from  the property and its eventual disposition.   If  the
       sum  of  the expected future cash flows is less  than  the
       carrying   amount   of  the  property,   the   Partnership
       recognizes an impairment loss by the amount by  which  the
       carrying amount of the property exceeds the fair value  of
       the property.

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

       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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

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

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

       The  Partnership accounts for properties owned as tenants-
       in-common  with  affiliated Partnerships and/or  unrelated
       third   parties   using  the  proportionate  consolidation
       method.   Each tenant-in-common owns a separate, undivided
       interest  in  the  properties.  Any tenant-in-common  that
       holds  more than a 50% interest does not control decisions
       over  the other tenant-in-common interests.  The financial
       statements  reflect  only  this  Partnership's  percentage
       share  of  the  properties' land, building and  equipment,
       liabilities, revenues and expenses.

     Reclassification

       Certain  items  in  the prior year's financial  statements
       have  been  reclassified to conform to 2003  presentation.
       These   reclassifications  had  no  effect  on   Partners'
       capital, net income or cash flows.

     Newly Issued Pronouncements

       The    Partnership   has   considered    the    accounting
       pronouncements  issued  after  December   2002   and   has
       determined that none of these pronouncements will  have  a
       material impact on its financial statements.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(3)  Related Party Transactions -

     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,  an  affiliate   of   the
     Partnership, and an unrelated third party.  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  owns  a 24% interest in a Garden  Ridge  retail
     store.   The remaining interests in this property are  owned
     by  AEI  Income & Growth Fund XXII Limited Partnership,  AEI
     Income  & Growth Fund 24 LLC, affiliates of the Partnership,
     and  unrelated  third  parties.  AEI  Real  Estate  Fund  XV
     Limited Partnership, an affiliate of the Partnership,  owned
     a 21% interest in this property until the interest was sold,
     in  a series of transactions, to unrelated third parties  in
     2003.   The  Partnership owns a 50%  interest  in  a  Johnny
     Carino's  restaurant.   The  remaining  interest   in   this
     property  is  owned  by AEI Real Estate  Fund  XVII  Limited
     Partnership,   an   affiliate  of  the   Partnership.    The
     Partnership owns a 50% interest in a Jared Jewelry store  in
     Lakewood, Colorado.  The remaining interest in this property
     is  owned by AEI Net Lease Income & Growth Fund XIX  Limited
     Partnership.

     The  Partnership  owned  a  23.95%  interest  in  a  Champps
     Americana  restaurant  in  Troy,  Michigan.   The  remaining
     interests in this property are owned by AEI Net Lease Income
     &  Growth  Fund XIX Limited Partnership and unrelated  third
     parties.   AEI  Real Estate Fund XV Limited Partnership  and
     AEI   Real  Estate  Fund  XVII  Limited  Partnership   owned
     interests in this property until the interests were sold, in
     a  series  of  transactions, to unrelated third  parties  in
     2003.   The Partnership owned a 40% interest in a Tumbleweed
     restaurant in Columbus, Ohio.  AEI Net Lease Income & Growth
     Fund  XIX Limited Partnership owned a 60% interest  in  this
     property  until  the  interest was  sold,  in  a  series  of
     transactions,  to  unrelated third  parties  in  2003.   The
     Partnership  owned  a  38% interest in a  Champps  Americana
     restaurant in Centerville, Ohio.  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, owned  interests
     in  this property until the interests were sold, in a series
     of transactions, to unrelated third parties in 2003.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(3)  Related Party Transactions - (Continued)

     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

                                                  2003         2002
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.                                     $ 207,752    $ 223,395
                                                 ========     ========
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.           $  19,316    $  41,935
                                                 ========     ========
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 $20,063
  for 2003.                                     $  25,205    $      0
                                                 ========     ========
d.AEI is reimbursed for all costs incurred in
  connection with the sale of property.         $ 188,564    $  57,155
                                                 ========     ========

     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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(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  20 years, except for the Taco Cabana,  Razzoo's,
     and Tumbleweed restaurants, and the Children's World daycare
     centers,  which have Lease terms of 15 years and the  Johnny
     Carino's  restaurant, which has a Lease term  of  17  years.
     The  Leases  contain renewal options which  may  extend  the
     Lease  term  an additional 10 years, except for the  Champps
     Americana,  Johnny  Carino's  and  Fuddruckers  restaurants,
     which have renewal options that may extend the Lease term an
     additional  15  years and the Old Country Buffet  restaurant
     and  Garden  Ridge retail store, which have renewal  options
     that may extend the Lease terms 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  at  a formula price.  In many of the  leases,  the
     option  price  is  stated to be the  greater  of  the  price
     determined by the stated formula or the fair market value of
     the  property  as agreed upon by the parties  or  determined
     based  on  appraisals.   In general, the  formula  price  is
     determined in one of two ways.  Under the first, the  option
     price  is  the  original  purchase  price  of  the  property
     increased  by  a  specified percentage per year,  compounded
     annually.   Under the second, the option price is determined
     by  dividing the annual rent at the time the purchase option
     is exercised by a percentage.  Based on the scheduled annual
     rent  under  the  lease, the resulting  option  price  would
     always  be  greater than the original purchase  price.   The
     actual  sale price of a property to a lessee may or may  not
     exceed   original  cost  depending  on  market   and   other
     conditions.

     The  Partnership's properties are commercial,  single-tenant
     buildings.   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
     Children's  World  in  Columbus, Ohio  was  constructed  and
     acquired  in  1992.   The Tractor Supply Company  store  and
     Champps   Americana  restaurant  in  Columbus,   Ohio   were
     constructed   and   acquired  in  1996.    The   Fuddruckers
     restaurant  was constructed and acquired in 1997.   The  Old
     Country  Buffet and Tumbleweed restaurants were  constructed
     and  acquired in 1998.  The land for the Razzoo's restaurant
     was  acquired in 2000 and construction of the restaurant was
     completed  in  2001.   The  Garden Ridge  retail  store  was
     constructed  in  2001  and acquired  in  2003.   The  Johnny
     Carino's  restaurant was constructed and acquired  in  2003.
     The  remaining properties were constructed and  acquired  in
     either  1990  or 1991.  There have been no costs capitalized
     as improvements subsequent to the acquisitions.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(4)  Investments in Real Estate - (Continued)

     The  cost  of  the properties not held for sale and  related
     accumulated  depreciation  at  December  31,  2003  are   as
     follows:

                               Buildings and              Accumulated
Property                Land     Equipment    Total       Depreciation

Children's World,
 Blue Springs, MO    $  162,290  $   628,981  $  791,271    $  304,410
Children's World,
 Lenexa, KS             185,788      797,739     983,527       377,983
Children's World,
   Westerville, OH      157,848      832,413     990,261       373,238
Taco Cabana,
 San Antonio, TX         61,004       46,929     107,933        19,176
Applebee's, Destin, FL   30,239       34,976      65,215        16,655
Children's World,
   Columbus, OH         157,569      861,633   1,019,202       353,404
Tractor Supply Company,
   Bristol, VA           31,092       65,673      96,765        18,266
Champps Americana,
   Columbus, OH           4,373        8,611      12,984         2,236
Fuddruckers,Thornton, CO  3,383        7,310      10,693         1,624
Tumbleweed,
 Chillicothe, OH        229,387      331,225     560,612        60,528
Old Country Buffet,
 Northlake, IL          342,896    1,007,908   1,350,804       169,385
Garden Ridge,
 Woodlands, TX          584,784    1,411,066   1,995,850        17,638
Johnny Carino's,
 Mansfield, TX          380,086      648,800   1,028,886         8,105
                      ----------  -----------  ----------    ----------
                     $2,330,739  $ 6,683,264  $9,014,003    $1,722,648
                      ==========  ===========  ==========    ==========


     On  August  29,  2002, the Partnership sold 4.5071%  of  the
     Champps  Americana  restaurant  in  Columbus,  Ohio,  to  an
     unrelated  third party.  The Partnership received  net  sale
     proceeds  of  $164,858, which resulted  in  a  net  gain  of
     $65,528.   The cost and related accumulated depreciation  of
     the interest sold was $115,627 and $16,297, respectively.

     Through March 31, 2003, the Partnership sold 99.2394% of the
     Fuddruckers  restaurant, in eight separate transactions,  to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $1,989,027, which resulted in a net gain of
     $771,290.    The   total   cost  and   related   accumulated
     depreciation  of  the  interests  sold  was  $1,395,078  and
     $177,341,  respectively.  For the years ended  December  31,
     2003  and  2002,  the  net gain was $286,861  and  $484,429,
     respectively.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(4)  Investments in Real Estate - (Continued)

     On  April  3, 2003, the Partnership purchased a 50% interest
     in  a parcel of land in Mansfield, Texas for $383,000.   The
     Partnership  obtained title to the land in the  form  of  an
     undivided fee simple interest in the 50% interest purchased.
     The  land  is  leased to Kona Restaurant Group,  Inc.  (KRG)
     under a Lease Agreement with a primary term of 17 years  and
     annual rental payments of $38,300.  Simultaneously with  the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     advanced  funds  to  KRG for the construction  of  a  Johnny
     Carino's restaurant on the site. Pursuant to the Lease,  any
     improvements to the land during the term of the Lease become
     the   property  of  the  lessor.   The  Partnership  charged
     interest on the advances at a rate of 10%.  On September  3,
     2003,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $103,250.   The  Partnership's share of the  total  purchase
     price, including the cost of the land, was $1,028,886.

     On August 27, 2003, the Partnership purchased a 24% interest
     in  a  Garden  Ridge  retail store in Woodlands,  Texas  for
     $1,995,850.   The property is leased to Garden  Ridge,  L.P.
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $226,209.

     Subsequent  to  December 31, 2003, Garden Ridge,  L.P.  (GR)
     filed  for Chapter 11 bankruptcy reorganization.   In  press
     releases,  GR has stated their intent to close eight  of  44
     stores  and  attempt to renegotiate lease terms for  certain
     other stores.  The Woodlands store was not identified as one
     of  the  eight to be closed and GR has verbally communicated
     that  they are interested in confirming the Lease  for  this
     site.   It is possible GR will attempt to negotiate  a  rent
     reduction  or  other  concessions for  this  site.   GR  was
     current on rent through January 2004.  The rent for February
     is  considered a pre-petition obligation, which will be paid
     from  the  bankruptcy court, on a prorata basis  with  other
     claims, to the extent available.  The Partnership expects to
     continue  to  receive all scheduled rents in  future  months
     unless  the  Lease  is  rejected by GR.   If  the  Lease  is
     confirmed,  GR  must comply with all Lease  terms.   If  the
     Lease is rejected, GR would be required to return possession
     of the property to the Partnership and the Partnership would
     be  responsible  for  real  estate  taxes  and  other  costs
     required to maintain the property.

     Subsequent to December 31, 2003, the Partnership purchased a
     50%  interest in a Jared Jewelry store in Lakewood, Colorado
     for  approximately $2,035,000.  The property  is  leased  to
     Sterling Inc. under a Lease Agreement with a primary term of
     20 years and annual rental payments of $158,755.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(4)  Investments in Real Estate - (Continued)

     Subsequent  to  December 31, 2003, the  Partnership  entered
     into  an  agreement to purchase a 50% interest in an  Eckerd
     drug store in Auburn, New York for approximately $2,244,000.
     The  property will be leased to Eckerd Corporation  under  a
     Lease  Agreement with a primary term of 20 years and  annual
     rental  payments of approximately $185,000.  AEI  Net  Lease
     Income  &  Growth Fund XIX Limited Partnership, an affiliate
     of  the  Partnership, entered into an agreement to  purchase
     the remaining interest in the property.

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

     For  properties owned as of December 31, 2003,  the  minimum
     future rent payments required by the leases are as follows:

                       2004          $ 1,656,920
                       2005            1,575,168
                       2006            1,112,414
                       2007              994,960
                       2008              909,228
                       Thereafter      7,413,170
                                      -----------
                                     $13,661,860
                                      ===========

     There were no contingent rents recognized in 2003 and 2002.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(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:

                                                    2003         2002
      Tenants                     Industry

     Knowledge Learning
        Enterprises, Inc.        Child Care     $  540,168  $  623,785
     Texas Taco Cabana L.P.      Restaurant        255,454     248,136
     Heartland Restaurant Corp.  Restaurant        226,109     243,863
     Champps Americana Group     Restaurant            N/A     306,517
                                                 ----------  ----------

     Aggregate rent revenue of major tenants    $1,021,731  $1,422,301
                                                 ==========  ==========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                 64%         74%
                                                 ==========  ==========

(6)  Discontinued Operations -

     During  the first quarter of 2003, the Partnership sold  the
     Children's World daycare center in Phoenix, Arizona, in four
     separate  transactions,  to unrelated  third  parties.   The
     Partnership  received total net sale proceeds of $1,592,169,
     which resulted in a net gain of $1,016,152.  The total  cost
     and  related accumulated depreciation of the interests  sold
     was $883,486 and $307,469, respectively.

     During the second quarter of 2003, the Partnership sold  its
     23.95% interest in the Champps Americana restaurant in Troy,
     Michigan,  in six separate transactions, to unrelated  third
     parties.   The Partnership received total net sale  proceeds
     of  $1,657,062,  which resulted in a net gain  of  $594,177.
     The  total cost and related accumulated depreciation of  the
     interests sold was $1,192,496 and $129,611, respectively.

     On  May  15, 2003, the Partnership sold its 40% interest  in
     the  Tumbleweed restaurant in Columbus, Ohio to an unrelated
     third party.  The Partnership received net sale proceeds  of
     $704,001, which resulted in a net gain of $201,568.  At  the
     time  of sale, the cost and related accumulated depreciation
     was $554,269 and $51,836, respectively.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(6)  Discontinued Operations - (Continued)

     During  the first nine months of 2003, the Partnership  sold
     its  38%  interest  in the Champps Americana  restaurant  in
     Centerville,   Ohio,  in  nine  separate  transactions,   to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $2,126,740, which resulted in a net gain of
     $740,621.    The   total   cost  and   related   accumulated
     depreciation  of  the  interests  sold  was  $1,502,252  and
     $116,133, respectively.

     In  October 2003, the Partnership entered into an  agreement
     to  sell  the  Cheddar's restaurant in  Clive,  Iowa  to  an
     unrelated third party.  Subsequent to December 31, 2003, the
     sale closed with the Partnership receiving net sale proceeds
     of approximately $2,100,000, which resulted in a net gain of
     approximately  $1,192,000.   At  December  31,   2003,   the
     property was classified as Real Estate Held for Sale with  a
     book value of $907,656.

     In  May  2003, the Partnership entered into an agreement  to
     sell  a Taco Cabana restaurant in San Antonio, Texas to  the
     lessee.   The agreement has been extended several  times  to
     enable  the  lessee  to  complete their  due  diligence  and
     certain negotiations with adjacent land owners.  The sale is
     subject to contingencies and may not be completed.   If  the
     sale  is  completed, the Partnership expects to receive  net
     proceeds of approximately $1,637,000, which will result in a
     net  gain  of approximately $479,000.  If this sale  is  not
     completed,  it is likely the Partnership will  seek  another
     buyer  for  the property and may not be able to negotiate  a
     similar  purchase  agreement.  At  December  31,  2003,  the
     property was classified as Real Estate Held for Sale with  a
     book value of $1,157,654.

     During 2003 and 2002, the Partnership distributed $1,162,833
     and  $34,998 of net sale proceeds to the Limited and General
     Partners  as  part  of  their quarterly distributions  which
     represented  a  return of capital of $58.89  and  $1.75  per
     Limited  Partnership Unit, respectively.  The remaining  net
     sale  proceeds  will  either  be  reinvested  in  additional
     property or distributed to the Partners in the future.

     In  July  2003,  the  lessee of the Razzoo's  restaurant  in
     Alpharetta, Georgia notified the Partnership that  they  are
     experiencing financial difficulty and may not be able to pay
     future   rents.    However,  rents  are  current   and   the
     Partnership  holds  a personal guarantee from  the  majority
     shareholder  of  the lessee for payment of all  rents.   The
     personal guarantee expires on July 11, 2004.  In late  2003,
     the  lessee closed the restaurant and has indicated they are
     no  longer interested in operating a restaurant at the site.
     The  Partnership is reviewing its available options and  has
     listed the property with a local real estate broker for sale
     or  lease.  At this time, it appears selling the property is
     a more likely outcome than re-leasing the property.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(6)  Discontinued Operations - (Continued)

     Although the lessee is continuing to pay rent, based  on  an
     analysis  of  market conditions in the area, the Partnership
     has  determined the property is impaired in accordance  with
     the   requirements  of  Statement  of  Financial  Accounting
     Standards No. 144, Accounting for the Impairment or Disposal
     of Long-Lived Assets.  As a result, in the fourth quarter of
     2003,  a  charge to discontinued operations for real  estate
     impairment  of  $252,399  was  recognized,  which  was   the
     difference  between the book value at December 31,  2003  of
     $852,399  and  the  estimated fair value of  $600,000.   The
     charge  was recorded against the cost of the land,  building
     and  equipment.   At  December 31, 2003,  the  property  was
     classified as Real Estate Held for Sale.

     The financial results for these properties are reflected  as
     Discontinued   Operations  in  the  accompanying   financial
     statements.   The following are the results of  discontinued
     operations for the years ended December 31:

                                                 2003       2002

     Rental Income                          $  719,535   $1,042,002
     Property Management Expenses               (3,901)     (18,384)
     Depreciation                              (94,911)    (150,198)
     Real Estate Impairment                   (252,399)           0
     Gain on Disposal of Real Estate         2,552,518            0
                                             ----------   ----------
       Income from Discontinued Operations  $2,920,842   $  873,420
                                             ==========   ==========

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(7)  Partners' Capital -

     Cash  distributions of $25,277 and $14,985 were made to  the
     General Partners and $2,502,468 and $1,483,566 were made  to
     the  Limited Partners for the years ended December 31,  2003
     and 2002, respectively.  The Limited Partners' distributions
     represent  $127.73 and $75.14 per Limited  Partnership  Unit
     outstanding  using 19,592 and 19,745 weighted average  Units
     in 2003 and 2002, respectively.  The distributions represent
     $127.73 and $75.14 per Unit of Net Income.

     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $1,151,204 and $34,648 of
     proceeds from property sales in 2003 and 2002, respectively.
     The  distributions  reduced the Limited  Partners'  Adjusted
     Capital Contributions.

     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  2003  and  2002  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.

     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  2003, 18 Limited Partners redeemed a total of 133.10
     Partnership  Units  for  $120,203  in  accordance  with  the
     Partnership  Agreement.  During 2002,  26  Limited  Partners
     redeemed  a total of 194.17 Partnership Units for  $175,988.
     The  Partnership acquired these Units using  Net  Cash  Flow
     from  operations.   The redemptions increase  the  remaining
     Limited Partners' ownership interest in the Partnership.  As
     a  result of these redemption payments and pursuant  to  the
     Partnership   Agreement,  the  General   Partners   received
     distributions  of  $1,214  and  $1,778  in  2003  and  2002,
     respectively.

     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
     $1,026.19 per original $1,000 invested.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(8)  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:

                                             2003         2002
     Net Income for Financial
      Reporting Purposes                  $3,765,716   $1,893,642

     Depreciation for Tax Purposes
      Under Depreciation for Financial
      Reporting Purposes                      17,638       29,488

     Real Estate Impairment Loss
      Not Recognized for Tax Purposes        252,399            0

     Gain on Sale of Real Estate for
        Tax Purposes Under Gain for
        Financial Reporting Purposes         (44,095)    (216,992)
                                           ----------   ----------
           Taxable Income to Partners     $3,991,658   $1,706,138
                                           ==========   ==========

     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:

                                                 2003         2002

     Partners' Capital for
       Financial  Reporting Purposes          $14,517,345   $13,400,791

     Adjusted Tax Basis of Investments
      in Real Estate Over Net
      Investments in Real Estate
      for Financial Reporting Purposes            458,258       232,316

     Syndication Costs Treated as Reduction
       of  Capital for Financial Reporting
       Purposes                                 3,336,442     3,336,442
                                               -----------   -----------
           Partners' Capital for
               Tax  Reporting Purposes        $18,312,045   $16,969,549
                                               ===========   ===========


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2003 AND 2002

(9)  Fair Value of Financial Instruments -

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

                                     2003                     2002
                           Carrying        Fair      Carrying      Fair
                            Amount         Value       Amount      Value

     Cash                $        0   $         0   $       373  $       373
     Money Market Funds    5,776,605    5,776,605     2,454,485    2,454,485
                          ----------   -----------   -----------  ----------
      Total Cash and
       Cash Equivalents  $ 5,776,605  $ 5,776,605   $ 2,454,858  $2,454,858
                          ==========   ===========   ===========  ==========

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

       None.

ITEM 8A.  CONTROLS AND PROCEDURES.

       (a) Evaluation of disclosure controls and procedures

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the  Managing  General Partner of the Partnership  evaluated  the
effectiveness  of  the  design and operation  of  its  disclosure
controls  and procedures (as defined in Rule 13a-14(c) under  the
Exchange  Act).   Based upon that evaluation, the  President  and
Chief Financial Officer of the Managing General Partner concluded
that,  as  of  the end of the period covered by this report,  the
disclosure  controls  and  procedures  of  the  Partnership   are
adequately  designed to ensure that information  required  to  be
disclosed  by  us  in  the reports we file or  submit  under  the
Exchange  Act  is recorded, processed, summarized  and  reported,
within the time periods specified in applicable rules and forms.

       (b)  Changes in internal controls

         There   were   no  significant  changes  made   in   the
Partnership's  internal controls during the  most  recent  period
covered  by  this  report that have materially affected,  or  are
reasonably   likely  to  materially  affect,  the   Partnership's
internal control over financial reporting.


                            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
manage  and  control the Partnership's affairs and  have  general
responsibility  and  the  ultimate  authority  in   all   matters
affecting  the Partnership's business.  The General Partners  are
AEI  Fund  Management  XVIII, Inc. (AFM),  the  Managing  General
Partner,   and  Robert  P.  Johnson,  Chief  Executive   Officer,
President  and  sole  director  of AFM,  the  Individual  General
Partner.   AFM  is  a  wholly  owned subsidiary  of  AEI  Capital
Corporation  of  which  Mr. Johnson is the majority  shareholder.
AFM  has only one senior financial executive, its Chief Financial
Officer.   The  Chief Financial Officer reports directly  to  Mr.
Johnson  and  is  accountable for his  actions  to  Mr.  Johnson.
Although Mr. Johnson and AFM require that all of their personnel,
including  the  Chief  Financial Officer, engage  in  honest  and
ethical  conduct,  ensure  full,  fair,  accurate,  timely,   and
understandable    disclosure,   comply   with   all    applicable
governmental  laws,  rules and regulations,  and  report  to  Mr.
Johnson   any  deviation  from  these  principles,  because   the
organization  is  composed of only approximately 35  individuals,
because  the  management of a partnership by an entity  that  has
different  interests in distributions and income  than  investors
involves numerous conflicts of interest that must be resolved  on
a  daily  basis, and because the ultimate decision maker  in  all
instances  is Mr. Johnson, AFM has not adopted a formal  code  of
conduct.   Instead,  the materials pursuant  to  which  investors
purchase Units disclose these conflicts of interest in detail and
Mr.  Johnson,  as  the  CEO and sole director  of  AFM,  resolves
conflicts  to  the  best  of  his ability,  consistent  with  his
fiduciary obligations to AFM and the fiduciary obligations of AFM
to  the  Partnership.  The director and officers of  AFM  are  as
follows:

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

        Robert  P.  Johnson, age 59, is Chief Executive  Officer,
President  and  sole director and has held these positions  since
the  formation of AFM in September 1988, and has been elected  to
continue  in these positions until December 2004.  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  SEC  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 three LLCs.

        Patrick  W.  Keene,  age 44, is Chief Financial  Officer,
Treasurer  and  Secretary  and has  held  these  positions  since
January  22,  2003  and  has been elected to  continue  in  these
positions  until December 2004.  Mr. Keene has been  employed  by
AEI  Fund  Management, Inc. and affiliated entities  since  1986.
Prior  to being elected to the positions above, he was Controller
of  the various entities.  From 1982 to 1986, Mr. Keene was  with
KPMG  Peat  Marwick  Certified Public Accountants,  first  as  an
auditor and later as a tax manager.  Mr. Keene is responsible for
all accounting functions of AFM and the registrant.

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

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

Section 16(a) Beneficial Ownership Reporting Compliance

        Under federal securities laws, the directors and officers
of  the  General  Partner of the Partnership, and any  beneficial
owner  of  more than 10% of a class of equity securities  of  the
Partnership,  are  required  to report  their  ownership  of  the
Partnership's equity securities and any changes in such ownership
to  the  Securities  and Exchange Commission (the  "Commission").
Specific due dates for these reports have been established by the
Commission, and the Partnership is required to disclose  in  this
Annual Report on 10-KSB any delinquent filing of such reports and
any  failure  to file such reports during the fiscal  year  ended
December  31,  2003.   With the exception of Patrick  Keene,  who
filed  his  initial report on Form 3 late, based upon information
provided  by  officers and directors of the General Partner,  all
officers, directors and 10% owners filed all reports on a  timely
basis in the 2003 fiscal year.


ITEM 10.   EXECUTIVE COMPENSATION.

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

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

        The following table sets forth information pertaining  to
the   ownership  of  the  Units  by  each  person  known  by  the
Partnership to beneficially own 5% or more of the Units, by  each
General  Partner, and by each officer or director of the Managing
General Partner as of February 29, 2004:

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

   AEI Fund Management XVIII, Inc.          0            0%
   1300 Wells Fargo Place
   30 East 7th Street, St. Paul, Minnesota 55101

   Robert P. Johnson                        5            *
   1300 Wells Fargo Place
   30 East 7th Street, St. Paul, Minnesota 55101

   Patrick W. Keene                         0            0%
   1300 Wells Fargo Place
   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.   Reference  is  made to  Note  3  of  the  Financial
Statements,   as  presented,  and  is  incorporated   herein   by
reference,  for  details of related party  transactions  for  the
years ended December 31, 2003 and 2002.

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

        The  limitations  included in the  Partnership  Agreement
require   that  the  cumulative  reimbursements  to  the  General
Partners  and  their affiliates for administrative  expenses  not
allowed under the NASAA Guidelines ("Guidelines") will not exceed
the  sum of (i) the front-end fees allowed by the Guidelines less
the  front-end fees paid by the Partnership, (ii) the  cumulative
property management fees allowed by the Guidelines but not  paid,
(iii)  any real estate commission allowed by the Guidelines,  and
(iv)  10%  of  Net  Cash  Flow less the Net  Cash  Flow  actually
distributed to the General Partners.  The administrative expenses
not  allowed under the Guidelines include a controlling  person's
salary  and  fringe  benefits,  rent  and  depreciation.   As  of
December  31, 2003, the cumulative reimbursements to the  General
Partners and their affiliates did not exceed those amounts.

        The following table sets forth the forms of compensation,
distributions  and cost reimbursements paid by the registrant  to
the  General Partners or their Affiliates in connection with  the
operation  of  the Fund and its properties for  the  period  from
inception through December 31, 2003.

                                                        Amount Incurred
Person or Entity                                        From Inception
 Receiving                   Form and Method        (September 20, 1988) to
Compensation                 of Compensation            December 31, 2003

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

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

General Partners and  Reimbursement at Cost for all          $  545,244
Affiliates            Acquisition Expenses


General Partners and  Reimbursement at Cost for all          $3,655,123
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          $  585,852
Affiliates            expenses related to the disposition
                      of the Fund's properties.

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, 2003

General Partners      1%  of  Net Cash Flow in any           $  223,636
                      fiscal 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           $   27,769
                      Proceeds of Sale other  than
                      distributions necessary to
                      restore Adjusted Capital
                      Contributions and provide a 6%
                      cumulative return to  Limited
                      Partners. The General  Partners
                      will receive only 1% of
                      distributions of Net Proceeds of
                      Sale until Limited Partners have
                      received an amount equal to
                      (a) their Adjusted Capital
                      Contributions,  plus (b) an amount
                      equal to 14% of their Adjusted Capital
                      Contributions per annum, cumulative
                      but not compounded, less (c)  all
                      previous   cash distributions
                      to the Limited Partners.


                             PART IV

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

             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 September 26, 1988  [File  No.
     33-24419]).

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

     10.1  Net  Lease Agreement dated June 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 July 27, 1992).

     10.2  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 July 27, 1992).

     10.3  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 July 27, 1992).


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

            A.   Exhibits -

                                Description

     10.4 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 July 27, 1992).

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

     10.6  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  July  27,
     1992).

     10.7 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  July  27,
     1992).

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

     10.9  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 April 17, 1996).

     10.10      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 September 12, 1996).

     10.11      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 August 5, 1997).

     10.12      Net Lease Agreement dated April 13, 1998  between
     the  Partnership,  AEI Net Lease Income &  Growth  Fund  XIX
     Limited Partnership, Robert P. Johnson, and Tumbleweed,  LLC
     relating  to  the  Property  at 1150  North  Bridge  Street,
     Chillicothe,  Ohio  (incorporated by  reference  to  Exhibit
     10.2 of Form 10-QSB filed May 8, 1998).

     10.13      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 July 31, 1998).

     10.14      First  Amendment  to Net  Lease  Agreement  dated
     November  20,  1998 between the Partnership, AEI  Net  Lease
     Income  &  Growth  Fund XIX Limited Partnership,  Robert  P.
     Johnson  and  Tumbleweed, LLC relating to  the  Property  at
     1150  North  Bridge Street, Chillicothe, Ohio  (incorporated
     by  reference  to Exhibit 10.70 of Form 10-KSB  filed  March
     15, 1999).

     10.15      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 August 2, 2000).

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

            A.  Exhibits -

                             Description

     10.16     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 August 7,
     2001).

     10.17      Development Financing Agreement  dated  April  3,
     2003  between  the  Partnership, AEI Real Estate  Fund  XVII
     Limited   Partnership  and  Kona  Restaurant  Group,   Inc.,
     relating  to the Property at 960 N. Highway 287,  Mansfield,
     Texas (incorporated by reference to Exhibit 10.1 of Form 10-
     QSB filed May 12, 2003).

     10.18      Net  Lease Agreement dated April 3, 2003  between
     the   Partnership,  AEI  Real  Estate  Fund   XVII   Limited
     Partnership  and  Kona Restaurant Group, Inc.,  relating  to
     the  Property  at  960  N.  Highway  287,  Mansfield,  Texas
     (incorporated  by reference to Exhibit 10.2 of  Form  10-QSB
     filed May 12, 2003).

     10.19      Purchase  Agreement dated May 21,  2003,  between
     the  Partnership and Texas Taco Cabana, LP relating  to  the
     Property  at  7339  San  Pedro Avenue,  San  Antonio,  Texas
     (incorporated  by reference to Exhibit 10.1 of  Form  10-QSB
     filed August 8, 2003).

     10.20     Assignment of Purchase Agreement dated August  19,
     2003  between the Partnership and AEI Fund Management,  Inc.
     relating  to  the  Property at 16778 I-45 South,  Woodlands,
     Texas (incorporated by reference to Exhibit 10.1 of Form  8-
     K filed September 6, 2003).

     10.21      Assignment  of  Lease, Indemnity  and  Assumption
     Agreement  dated  August 27, 2003 between  the  Partnership,
     AEI  Income  &  Growth  Fund XXII Limited  Partnership,  AEI
     Income  &  Growth  Fund  24 LLC, AEI  Real  Estate  Fund  XV
     Limited   Partnership  and  Cypress/GR  Woodlands  I,   L.P.
     relating  to  the  Property at 16778 I-45 South,  Woodlands,
     Texas (incorporated by reference to Exhibit 10.2 of Form  8-
     K filed September 6, 2003).

     10.22      First  Amendment  to Net  Lease  Agreement  dated
     September  3, 2003 between the Partnership, AEI Real  Estate
     Fund  XVII  Limited  Partnership and Kona Restaurant  Group,
     Inc.  relating  to  the  Property at  960  N.  Highway  287,
     Mansfield, Texas (incorporated by reference to Exhibit  10.3
     of Form 10-QSB filed November 11, 2003).

     10.23      Purchase Agreement dated October 15, 2003 between
     the  Partnership  and  Steward  Real  Estate  Services,  LLC
     relating  to the Property at 1301 N.W. 114th Street,  Clive,
     Iowa (incorporated by reference to Exhibit 10.4 of Form  10-
     QSB filed November 11, 2003).

     10.24     Assignment of Purchase Agreement dated January  2,
     2004  between the Partnership, AEI Net Lease Income & Growth
     Fund  XIX Limited Partnership and AEI Fund Management,  Inc.
     relating  to  the  Property  at 14145  West  Colfax  Avenue,
     Lakewood,  Colorado  (incorporated by reference  to  Exhibit
     10.1 of Form 8-K filed February 17, 2004).

     10.25     Assignment of Purchase Agreement dated January  9,
     2004  between the Partnership, AEI Net Lease Income & Growth
     Fund  XIX Limited Partnership and AEI Fund Management,  Inc.
     relating  to  the Property at 157 Grant Avenue, Auburn,  New
     York.

     10.26      Assignment and Assumption of Lease dated February
     5,  2004  between the Partnership, AEI Net  Lease  Income  &
     Growth  Fund XIX Limited Partnership and Translakewood,  LLC
     relating  to  the  Property  at 14145  West  Colfax  Avenue,
     Lakewood,  Colorado  (incorporated by reference  to  Exhibit
     10.2 of Form 8-K filed February 17, 2004).

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

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

            A.   Exhibits -

                           Description

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

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


       B.   Reports on Form 8-K - None.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

        The  following  is a summary of the fees  billed  to  the
Partnership  by  Boulay, Heutmaker, Zibell  &  Co.  P.L.L.P.  for
professional  services rendered for the years ended December  31,
2003 and 2002:

     Fee Category                            2003       2002

     Audit Fees                           $  11,359   $ 10,355
     Audit-Related Fees                         532          0
     Tax Fees                                     0          0
     All Other Fees                               0          0
                                           ---------   --------
          Total Fees                      $  11,891   $ 10,355
                                           =========   ========

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

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

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

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


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

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

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


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


March 19, 2004                 By: /s/ Robert P Johnson
                                       Robert  P. Johnson, President
                                       and Director
                                       (Principal Executive Officer)


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

 Name                                 Title                         Date


/s/Robert P Johnson   President (Principal Executive  Officer) March 19, 2004
   Robert P.Johnson   and Sole Director of Managing General
                      Partner

/s/Patrick W Keene    Chief Financial Officer  and  Treasurer  March 19, 2004
   Patrick W.Keene    (Principal Accounting Officer)