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, 2002

                Commission file number:  0-18289

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
         (Name of Small Business Issuer in its Charter)

          State of Minnesota               41-1622463
   (State or other Jurisdiction of     (I.R.S. Employer)
    Incorporation or Organization)     Identification No.)

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

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

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

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

                    Limited Partnership Units
                        (Title of class)

Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during the past 12 months (or for such shorter period  that
the  registrant was required to file such reports), and  (2)  has
been subject to such filing requirements for the past 90 days.

                     Yes [X]        No

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

The Issuer's revenues for year ended December 31, 2002 were
$1,943,949.

As  of  February 28, 2003, there were 19,650.683 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 $19,650,683.
               DOCUMENTS INCORPORATED BY REFERENCE

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

         Transitional Small Business Disclosure Format:

                       Yes         No [X]

                             PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

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

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

       The Partnership will hold its properties until the General
Partners  determine  that the sale or other  disposition  of  the
properties   is   advantageous  in  view  of  the   Partnership's
investment  objectives.  In deciding whether to sell  properties,
the  General  Partners will consider factors  such  as  potential
appreciation,  net  cash flow and income tax considerations.   In
addition,  certain lessees have been granted options to  purchase
properties  after  a  specified portion of  the  lease  term  has
elapsed.   It is anticipated that the Partnership will  sell  its
properties  within  twelve  years after  acquisition.   Prior  to
commencing  the  liquidation  of  the  Partnership,  the  General
Partners may reinvest the proceeds from the sale of properties in
additional  properties,  provided that  sufficient  proceeds  are
distributed  to  the Limited Partners to pay  federal  and  state
income  taxes related to any taxable gain recognized as a  result
of  the  sale.  At any time prior to selling the properties,  the
Partnership may mortgage one or more of its properties in amounts
not  exceeding  50%  of  the  aggregate  purchase  price  of  all
Partnership properties.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants  under  triple  net  leases,  which  are  classified   as
operating  leases.   Under  a triple net  lease,  the  lessee  is
responsible  for  all real estate taxes, insurance,  maintenance,
repairs  and  operating expenses for the property.   The  initial
lease terms are for 14 to 20 years.  The leases provide for  base
annual  rental  payments,  payable in monthly  installments,  and
contain  rent  clauses which entitle the Partnership  to  receive
additional rent in future years based on stated rent increases or
if  gross  receipts  for  the property exceed  certain  specified
amounts, among other conditions.

        The  leases provide the lessee with two to four five-year
renewal options subject to the same terms and conditions  as  the
initial  lease.   Certain lessees have been  granted  options  to
purchase the property at a formula price, which would exceed  the
original  cost.  The actual sale price of a property to a  lessee
may or may not exceed original cost depending on market and other
conditions.

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

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

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

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

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

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

ITEM 1.   DESCRIPTION OF BUSINESS.  (Continued)

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

        During 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.

         During  2002,  the  Partnership  sold  64.3189%  of  the
Fuddruckers   restaurant,  in  six  separate   transactions,   to
unrelated third parties.  The Partnership received total net sale
proceeds of $1,274,700, which resulted in a net gain of $484,429.
The  total  cost  and  related accumulated  depreciation  of  the
interests sold was $904,176 and $113,905, respectively.

        Subsequent  to  December 31, 2002, the  Partnership  sold
34.9205%   of   the  Fuddruckers  restaurant,  in  two   separate
transactions,  to  unrelated  third  parties.   The   Partnership
received  net  sale  proceeds  of approximately  $700,000,  which
resulted in a net gain of approximately $272,500.

        Subsequent  to  December 31, 2002, the  Partnership  sold
63.3906%  of  the  Children's World daycare  center  in  Phoenix,
Arizona,  in  two  separate  transactions,  to  unrelated   third
parties.    The  Partnership  received  net  sale   proceeds   of
approximately  $1,032,000,  which  resulted  in  a  net  gain  of
approximately $666,000.

Major Tenants

        During 2002, four tenants each contributed more than  ten
percent  of  the Partnership's total rental revenue.   The  major
tenants  in aggregate contributed 74% of total rental revenue  in
2002.   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  2003 and future years.  Any failure of  these  major
tenants could materially affect the Partnership's net income  and
cash distributions.

Competition

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

Employees

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

ITEM 2.  DESCRIPTION OF PROPERTIES.

Investment Objectives

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

Description of Properties

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

        The  Partnership's properties are subject to the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership will be competing with other real estate  owners,  on
both a national and local level, in attempting to find buyers for
the   properties.   In  the  event  of  a  tenant  default,   the
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  competitive and can be affected  by  factors  such  as
changes  in regional or local economies, seasonality and  changes
in consumer preference.

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 2002.

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

Children's World                           ARAMARK
Daycare Center                            Educational
   Phoenix, AZ       9/29/89 $  883,486 Resources, Inc. $ 125,464 $ 16.60

Children's World                           ARAMARK
Daycare Center                            Educational
   Blue Springs, MO  6/27/90 $  791,271 Resources, Inc. $ 106,812 $ 13.35

Children's World                           ARAMARK
Daycare Center                           Educational
   Lenexa, KS        9/13/90 $  983,527 Resources, Inc. $ 134,097 $ 16.73

Taco Cabana
Restaurant                              Texas Taco
    San Antonio, TX 12/29/90 $1,406,426 Cabana L.P.     $ 230,478 $ 84.18

Cheddar's Restaurant                       Heartland
   Clive, IA         1/22/91 $1,392,248 Restaurant Corp.$ 222,038 $ 30.84


ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)


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

Children's World                          ARAMARK
Daycare Center                           Educational
   Westerville, OH   6/21/91 $  990,261 Resources, Inc. $ 132,139 $ 16.56

Taco Cabana Restaurant
   San Antonio, TX                      Texas Taco
   (9.3699%)         7/19/91 $  107,933 Cabana L.P.     $  17,827 $ 42.52

Applebee's Restaurant                     Concord
   Destin, FL                           Neighborhood
   (5.8291%)         11/1/91 $   65,215 Corporation     $   9,990 $ 35.62

Children's World                          ARAMARK
Daycare Center                           Educational
   Columbus, OH      8/10/92 $1,019,202 Resources, Inc. $ 139,793 $ 15.83

Tractor Supply
Company Store
   Bristol, VA                         Tractor Supply
   (7.5158%)         4/10/96 $   96,765 Company, Inc.   $  11,350 $  8.05

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

Fuddruckers Restaurant
   Thornton, CO                          Fuddruckers,
   (35.6811%)        7/30/97 $  501,595      Inc.       $  56,837 $ 32.01

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

Tumbleweed Restaurant
   Chillicothe, OH                      Tumbleweed,
   (43.9634%)       11/20/98 $  560,613     Inc.        $  60,609 $ 25.14

Tumbleweed Restaurant
   Columbus, OH                         Tumbleweed,
   (40.0%)          12/28/98 $  554,269     Inc.        $  58,792 $ 26.81

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

Champps Americana
   Restaurant                             Champps
   Centerville, OH                       Operating
   (38.0%)           1/27/99 $1,502,252 Corporation     $ 165,400 $ 46.46

ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

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

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

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

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

        The initial Lease terms are 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
Tractor Supply Company store, which has a Lease term of 14 years.
The  Leases  contain renewal options which may extend  the  Lease
term  an  additional 10 years, except for the Champps  Americana,
and  Fuddruckers restaurants, which have renewal options that may
extend  the Lease term an additional 15 years and the Old Country
Buffet restaurant, which has renewal options that may extend  the
Lease term an additional 20 years.

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

ITEM 2.DESCRIPTION OF PROPERTIES.  (Continued)

         For  tax  purposes,  the  Partnership's  properties  are
depreciated  under the Modified Accelerated Cost Recovery  System
(MACRS).  The largest depreciable component of a property is  the
building  which  is depreciated, using the straight-line  method,
over  31.5  years or 39 years depending on the date when  it  was
placed  in  service.  The remaining depreciable components  of  a
property  are personal property and land improvements  which  are
depreciated,  using an accelerated method, over 5 and  15  years,
respectively.  Since the Partnership has tax-exempt Partners, the
Partnership is subject to the rules of Section 168(h)(6)  of  the
Internal  Revenue  Code  which  requires  a  percentage  of   the
properties' depreciable components to be depreciated over  longer
lives  using  the straight-line method.  In general, the  federal
tax  basis of the properties for tax depreciation purposes is the
same as the basis for book depreciation purposes.

       During the last five years, or since the date of purchase,
if  purchased  after  December  31, 1997, all  properties  listed
above were 100% occupied.

ITEM 3.  LEGAL PROCEEDINGS.

       None.

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

       None.


                             PART II

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

        As  of  December  31, 2002, there were 1,452  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 2002, twenty-six Limited Partners redeemed a total
of  194.17 Partnership Units for $175,988 in accordance with  the
Partnership  Agreement.  In prior years, a total of  201  Limited
Partners redeemed 2,933.2 Partnership Units for $2,404,447.   The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

       Cash distributions of $16,763 and $18,505 were made to the
General Partners and $1,483,566 and $1,498,249 were made  to  the
Limited   Partners   in   2002  and  2001,   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  $34,648  and  $247,242  of
proceeds from property sales in 2002 and 2001, 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.

       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  some  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.

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

         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, 2002  and  2001,  the
Partnership   recognized   rental  income   of   $1,929,826   and
$1,855,776,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income of  $14,123  and  $54,126,
respectively.  In 2002, rental income increased as  a  result  of
additional  rent received from one property acquisition  in  2001
and  rent  increases  on fourteen properties.   The  increase  in
rental  income  was partially offset by a decrease in  investment
income due to the Partnership receiving less interest income from
construction  advances and having less money  invested  at  lower
money market interest rates in 2002.

        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.

        During  the years ended December 31, 2002 and  2001,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $223,395 and $272,891, 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  $41,935 and $36,251, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.

       As of December 31, 2002, the Partnership's annualized cash
distribution  rate  was  7.0%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the  Partnership  Agreement.  As a result, 99%  of  distributions
were  allocated  to  Limited  Partners  and  1%  to  the  General
Partners.

        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.

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

Liquidity and Capital Resources

          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
increased  from $1,599,480 in 2001 to $1,755,521  in  2002  as  a
result of an increase in rental income, a decrease in Partnership
administration  expenses in 2002, and net timing  differences  in
the  collection of payments from the lessees and the  payment  of
expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
form  the  sale of real estate.  During the years ended  December
31,  2002 and 2001, the Partnership generated cash flow from  the
sale  of  real  estate of $1,439,558 and $517,889,  respectively.
During the year ended December 31, 2001, the Partnership expended
$350,796  to  invest in real properties (inclusive of acquisition
expenses)  as  the  Partnership reinvested  cash  generated  from
property sales.

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

        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.

         During  2002,  the  Partnership  sold  64.3189%  of  the
Fuddruckers   restaurant,  in  six  separate   transactions,   to
unrelated third parties.  The Partnership received total net sale
proceeds of $1,274,700, which resulted in a net gain of $484,429.
The  total  cost  and  related accumulated  depreciation  of  the
interests sold was $904,176 and $113,905, respectively.

        Subsequent  to  December 31, 2002, the  Partnership  sold
34.9205%   of   the  Fuddruckers  restaurant,  in  two   separate
transactions,  to  unrelated  third  parties.   The   Partnership
received  net  sale  proceeds  of approximately  $700,000,  which
resulted in a net gain of approximately $272,500.
ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        Subsequent  to  December 31, 2002, the  Partnership  sold
63.3906%  of  the  Children's World daycare  center  in  Phoenix,
Arizona,  in  two  separate  transactions,  to  unrelated   third
parties.    The  Partnership  received  net  sale   proceeds   of
approximately  $1,032,000,  which  resulted  in  a  net  gain  of
approximately $666,000.

        During 2002 and 2001, the Partnership distributed $34,998
and  $249,739 of the net sale proceeds to the Limited and General
Partners  as part of their regular quarterly distributions  which
represented  a return of capital of $1.75 and $12.38 per  Limited
Partnership Unit, respectively.  The remaining net sale  proceeds
will either be reinvested in additional properties or distributed
to the Partners in the future.

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

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

        During 2002, twenty-six Limited Partners redeemed a total
of  194.17 Partnership Units for $175,988 in accordance with  the
Partnership  Agreement.  In prior years, a total of  201  Limited
Partners redeemed 2,933.2 Partnership Units for $2,404,447.   The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund   continuing   distributions  and  meet  other   Partnership
obligations on both a short-term and long-term basis.

ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS




                                                           Page

Report of Independent Auditors                              14

Balance Sheet as of December 31, 2002 and 2001              15

Statements for the Years Ended December 31, 2002 and 2001:

     Income                                                 16

     Cash Flows                                             17

     Changes in Partners' Capital                           18

Notes to Financial Statements                          19 - 30



                 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, 2002 and 2001 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,  2002 and 2001 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.











Minneapolis, Minnesota     Boulay, Heutmaker, Zibell & Co.P.L.L.P.
January 21, 2003           Certified Public Accountants

<page>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

                           DECEMBER 31

                             ASSETS

                                             2002       2001

CURRENT ASSETS:
  Cash and Cash Equivalents              $ 2,454,858 $   938,698
  Receivables                                  6,740           0
                                           ---------   ---------
      Total Current Assets                 2,461,598     938,698
                                           ---------   ---------
INVESTMENTS IN REAL ESTATE:
  Land                                     4,770,593   5,095,552
  Buildings and Equipment                  9,536,257  10,303,310
  Accumulated Depreciation                (2,897,209) (2,764,686)
                                           ---------   ---------
      Net Investments in Real Estate      11,409,641  12,634,176
                                           ---------   ---------
           Total  Assets                 $13,871,239 $13,572,874
                                          ==========   =========


                LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.   $   107,784 $    24,142
  Distributions Payable                      362,664     365,266
                                           ---------    --------
      Total Current Liabilities              470,448     389,408
                                           ---------    --------
PARTNERS' CAPITAL:
  General Partners                             5,466           0
  Limited Partners, $1,000 Unit Value;
      30,000 Units authorized; 22,783 Issued;
      19,656 and 19,850 Units outstanding
      in 2002 and 2001, respectively      13,395,325  13,183,466
                                           ---------   ---------
      Total Partners' Capital             13,400,791  13,183,466
                                           ---------   ---------
           Total Liabilities and
           Partners' Capital             $13,871,239 $13,572,874
                                           =========   =========





 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


                                              2002       2001

INCOME:
  Rent                                   $ 1,929,826 $ 1,855,776
  Investment Income                           14,123      54,126
                                           ---------   ---------
      Total Income                         1,943,949   1,909,902
                                           ---------   ---------

EXPENSES:
  Partnership Administration - Affiliates    223,395     272,891
  Partnership Administration and Property
     Management - Unrelated Parties           41,935      36,251
  Depreciation                               334,934     333,665
                                           ---------   ---------
      Total Expenses                         600,264     642,807
                                           ---------   ---------

OPERATING INCOME                           1,343,685   1,267,095

GAIN ON SALE OF REAL ESTATE                  549,957      34,373
                                           ---------   ---------
NET INCOME                               $ 1,893,642 $ 1,301,468
                                            ========    ========

NET INCOME ALLOCATED:
  General Partners                       $    22,229 $    76,644
  Limited Partners                         1,871,413   1,224,824
                                           ---------   ---------
                                         $ 1,893,642 $ 1,301,468
                                            ========    ========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(19,745 and 20,004 weighted average
Units outstanding in 2002 and 2001,
respectively)                            $     94.78 $     61.23
                                            ========    ========

 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


                                             2002       2001

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                             $ 1,893,642 $ 1,301,468

 Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                            334,934     333,665
     Gain on Sale of Real Estate            (549,957)    (34,373)
     (Increase) Decrease in Receivables       (6,740)     19,619
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.             83,642      (7,625)
     Decrease in Unearned Rent                     0     (13,274)
                                           ---------   ---------
       Total Adjustments                    (138,121)    298,012
                                           ---------   ---------
       Net Cash Provided By
           Operating Activities            1,755,521   1,599,480
                                           ---------   ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                       0    (350,796)
  Proceeds from Sale of Real Estate        1,439,558     517,889
                                           ---------   ---------
       Net Cash Provided By
           Investing Activities            1,439,558     167,093
                                           ---------   ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Decrease in Distributions Payable           (2,602)     (3,403)
     Distributions    to    Partners      (1,498,551) (1,513,383)
  Redemption Payments                       (177,766)   (337,116)
                                           ---------   ---------
       Net Cash Used For
           Financing Activities           (1,678,919) (1,853,902)
                                           ---------   ---------
NET INCREASE (DECREASE) IN CASH
    AND CASH EQUIVALENTS                   1,516,160     (87,329)

CASH AND CASH EQUIVALENTS,
beginning of period                          938,698   1,026,027
                                           ---------   ---------
CASH AND CASH EQUIVALENTS,
end of period                            $ 2,454,858 $   938,698
                                           =========   =========




 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, 2000 $   (58,139) $13,790,636  $13,732,497  20,221.57

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

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

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

  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
                              ========   ==========   ==========   ========






 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</page>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001


(1)  ORGANIZATION -

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

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

     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $22,783,050,  and $1,000, respectively.  During  operations,
     any  Net  Cash Flow, as defined, which the General  Partners
     determine  to  distribute will be  distributed  90%  to  the
     Limited  Partners and 10% to the General Partners; provided,
     however,  that  such distributions to the  General  Partners
     will be subordinated to the Limited Partners first receiving
     an annual, noncumulative distribution of Net Cash Flow equal
     to  10%  of their Adjusted Capital Contribution, as defined,
     and,  provided  further, that in no event will  the  General
     Partners  receive  less than 1% of such Net  Cash  Flow  per
     annum.  Distributions to Limited Partners will be  made  pro
     rata by Units.

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


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(1)  ORGANIZATION - (Continued)

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

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

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

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -

     Financial Statement Presentation

       The  accounts  of  the Partnership are maintained  on  the
       accrual  basis of accounting for both federal  income  tax
       purposes and financial reporting purposes.

     Accounting Estimates

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

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

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

     Cash Concentrations of Credit Risk

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

     Statement of Cash Flows

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

     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.

     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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)

     Real Estate

       The  Partnership's real estate is leased under triple  net
       leases  classified as operating leases.   The  Partnership
       recognizes  rental revenue on the accrual basis  according
       to  the terms of the individual leases.  For leases  which
       contain   rental  increases  based  on  cost   of   living
       increases,  the increases are recognized in  the  year  in
       which they are effective.

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

       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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(3)  RELATED PARTY TRANSACTIONS -

     The   Partnership  owns  a  .5061%  interest  in  a  Champps
     Americana  restaurant  in  Columbus,  Ohio.   The  remaining
     interests  in  this  property are owned by  unrelated  third
     parties.   AEI Income & Growth Fund XXI Limited Partnership,
     an  affiliate of the Partnership, owned a 67.8% interest  in
     this property until the interest was sold to unrelated third
     parties  in  a  series of transactions with  the  last  sale
     occurring  in  May,  2001.  The Partnership  owns  a  23.95%
     interest   in  a  Champps  Americana  restaurant  in   Troy,
     Michigan.   The  remaining interests in  this  property  are
     owned  by  AEI Real Estate Fund XV Limited Partnership,  AEI
     Real  Estate Fund XVII Limited Partnership and AEI Net Lease
     Income & Growth Fund XIX Limited Partnership, affiliates  of
     the  Partnership.  The Partnership owns a 43.9634%  interest
     in  a  Tumbleweed  restaurant  in  Chillicothe,  Ohio.   The
     remaining  interests in this property are owned by  AEI  Net
     Lease  Income & Growth Fund XIX Limited Partnership  and  an
     unrelated third party.  The Individual General Partner owned
     a  15.0%  interest in this property until the  interest  was
     sold  to  an  unrelated third party in  August,  2001.   The
     Partnership owns a 40.0% interest in a Tumbleweed restaurant
     in  Columbus, Ohio.  The remaining interest in this property
     is  owned by AEI Net Lease Income & Growth Fund XIX  Limited
     Partnership.   The Partnership owns a 38.0%  interest  in  a
     Champps  Americana  restaurant in  Centerville,  Ohio.   The
     remaining  interests in the property are owned by  AEI  Real
     Estate  Fund XVII Limited Partnership, AEI Income  &  Growth
     Fund  XXI  Limited Partnership and AEI Income & Growth  Fund
     XXII  Limited  Partnership, affiliates of  the  Partnership.
     The   Partnership  owns  a  24%  interest  in   a   Razzoo's
     restaurant.   The remaining interests in this  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership, AEI Income & Growth Fund 23 LLC and AEI Private
     Net Lease Millennium Fund Limited Partnership, affiliates of
     the Partnership.

     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

                                                  2002       2001
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.                                      $ 223,395  $ 272,891
                                                  ========   ========

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(3)  Related Party Transactions - (Continued)

                                      Total Incurred by the Partnership
                                       for the Years Ended December 31

                                                   2002       2001
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.            $  41,935  $  36,251
                                                  ========   ========
c.AEI is reimbursed for all costs and direct
  expenses incurred by it in acquiring properties
  on behalf of the Partnership.  The amounts are net
  of financing and commitment fees and expense
  reimbursements received by the Partnership from
  the lessees in the amount of $783 for 2001.    $       0  $     840
                                                  ========   ========
d.AEI is reimbursed for all costs incurred in
  connection with the sale of property.          $  57,155  $   2,086
                                                  ========   ========

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

(4)  INVESTMENTS IN REAL ESTATE -

     The  Partnership  leases its properties to  various  tenants
     through triple net leases, which are classified as operating
     leases.  Under a triple net lease, the lessee is responsible
     for  all  real estate taxes, insurance, maintenance, repairs
     and  operating expenses of the property.  The initial  Lease
     terms are 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  Tractor
     Supply  Company store, which has a Lease term of  14  years.
     The  Leases  contain renewal options which  may  extend  the
     Lease  term  an additional 10 years, except for the  Champps
     Americana,  and Fuddruckers restaurants, which have  renewal
     options  that  may  extend the Lease term an  additional  15
     years  and  the  Old  Country Buffet restaurant,  which  has
     renewal options that may extend the Lease term an additional
     20 years.  The Leases contain rent clauses which entitle the
     Partnership to receive additional rent in future years based
     on  stated  rent  increases or if  gross  receipts  for  the
     property  exceed  certain  specified  amounts,  among  other
     conditions.  Certain lessees have been  granted  options  to
     purchase the property at a formula price, which would exceed
     the original cost.  The actual sale price of a property to a
     lessee  may  or  may not exceed original cost  depending  on
     market and other conditions.

              AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2001 AND 2000

(4)  INVESTMENTS IN REAL ESTATE - (Continued)

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

     The   cost   of   the  properties  and  related  accumulated
     depreciation at December 31, 2002 are as follows:

                               Buildings and            Accumulated
Property                  Land   Equipment      Total   Depreciation

Children's World,
   Phoenix, AZ        $ 259,467 $  624,019  $  883,486  $  303,688
Children's World,
   Blue Springs, MO     162,290    628,981     791,271     284,739
Children's World,
   Lenexa, KS           185,788    797,739     983,527     352,860
Taco Cabana,
   San Antonio, TX      871,844    534,582   1,406,426     231,918
Cheddar's, Clive, IA    379,249  1,012,999   1,392,248     453,662
Children's World,
   Westerville, OH      157,848    832,413     990,261     346,999
Taco Cabana,
   San Antonio, TX       61,004     46,929     107,933      17,612
Applebee's, Destin, FL   30,239     34,976      65,215      15,618
Children's World,
   Columbus, OH         157,569    861,633   1,019,202     326,117
Tractor Supply Company,
   Bristol, VA           31,092     65,673      96,765      15,896
Champps Americana,
   Columbus, OH           4,373      8,611      12,984       1,931
Fuddruckers,
   Thornton, CO         158,672    342,923     501,595      64,324
Champps Americana,
   Troy, MI             385,295    807,201   1,192,496     121,436
Tumbleweed,
   Chillicothe, OH      229,387    331,226     560,613      48,718
Tumbleweed,
   Columbus, OH         216,467    337,802     554,269      47,435

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(4)  INVESTMENTS IN REAL ESTATE - (Continued)

                               Buildings and           Accumulated
Property                  Land   Equipment     Total   Depreciation

Old Country Buffet,
   Northlake, IL        342,896  1,007,908   1,350,804     135,788
Champps Americana,
   Centerville, OH      760,269    741,983   1,502,252     102,898
Razzoo's,
   Alpharetta, GA       376,844    518,659     895,503      25,570
                       --------   --------    --------    --------
                     $4,770,593 $9,536,257 $14,306,850  $2,897,209
                      =========  =========  ==========   =========

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

     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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

     (4)  INVESTMENTS IN REAL ESTATE - (Continued)

     During   2002,   the  Partnership  sold  64.3189%   of   the
     Fuddruckers  restaurant,  in six separate  transactions,  to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $1,274,700, which resulted in a net gain of
     $484,429.    The   total   cost  and   related   accumulated
     depreciation   of  the  interests  sold  was  $904,176   and
     $113,905, respectively.

     Subsequent  to  December  31,  2002,  the  Partnership  sold
     34.9205%  of  the  Fuddruckers restaurant, in  two  separate
     transactions,  to unrelated third parties.  The  Partnership
     received net sale proceeds of approximately $700,000,  which
     resulted in a net gain of approximately $272,500.

     Subsequent  to  December  31,  2002,  the  Partnership  sold
     63.3906%  of the Children's World daycare center in Phoenix,
     Arizona,  in  two separate transactions, to unrelated  third
     parties.   The  Partnership received net  sale  proceeds  of
     approximately $1,032,000, which resulted in a  net  gain  of
     approximately $666,000.

     During  2002  and 2001, the Partnership distributed  $34,998
     and  $249,739  of the net sale proceeds to the  Limited  and
     General   Partners  as  part  of  their  regular   quarterly
     distributions which represented a return of capital of $1.75
     and  $12.38 per Limited Partnership Unit, respectively.  The
     remaining  net  sale proceeds will either be  reinvested  in
     additional properties or distributed to the Partners in  the
     future.

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

     The   minimum  future  rentals  on  the  Leases  for   years
     subsequent to December  31, 2002 are as follows:

                       2003           $1,828,240
                       2004            1,847,174
                       2005            1,766,293
                       2006            1,314,501
                       2007            1,197,714
                       Thereafter      8,491,222
                                        --------
                                     $16,445,144
                                       =========

     There were no contingent rents recognized in 2002 and 2001.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(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:

                                                   2002       2001
      Tenants                     Industry

     ARAMARK Educational
        Resources, Inc.           Child Care    $  623,785 $  585,998
     Champps Americana Group      Restaurant       306,517    294,566
     Texas Taco Cabana L.P.       Restaurant       248,136    240,632
     Heartland Restaurant Corp.   Restaurant       243,863    236,460
                                                  --------   --------

     Aggregate rent revenue of major tenants    $1,422,301 $1,357,656
                                                  ========   ========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                74%        73%
                                                  ========   ========

(6)  PARTNERS' CAPITAL -

     Cash  distributions of $16,763 and $18,505 were made to  the
     General Partners and $1,483,566 and $1,498,249 were made  to
     the  Limited Partners for the years ended December  31, 2002
     and 2001, respectively.  The Limited Partners' distributions
     represent  $75.14  and $74.90 per Limited  Partnership  Unit
     outstanding  using 19,745 and 20,004 weighted average  Units
     in 2002 and 2001, respectively.  The distributions represent
     $75.14  and  $44.52  per Unit of Net Income,  and  $-0-  and
     $30.38 per Unit of return of contributed capital in 2002 and
     2001, respectively.

     As  part  of  the  Limited  Partner distributions  discussed
     above,  the Partnership distributed $34,648 and $247,242  of
     proceeds from property sales in 2002 and 2001, respectively.
     The  distributions  reduced the Limited  Partners'  Adjusted
     Capital Contributions.

     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  2002  and  2001  were subordinated  to  the  Limited
     Partners  as  required in the Partnership Agreement.   As  a
     result,  99% of distributions were allocated to the  Limited
     Partners and 1% to the General Partners.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(6)  PARTNERS' CAPITAL - (Continued)

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

     During 2002, twenty-six Limited Partners redeemed a total of
     194.17 Partnership Units for $175,988 in accordance with the
     Partnership Agreement.  The Partnership acquired these Units
     using  Net  Cash Flow from operations.  In 2001, thirty-four
     Limited  Partners  redeemed a total  of  371.72  Partnership
     Units  for $333,745.  The redemptions increase the remaining
     Limited Partners' ownership interest in the Partnership.

     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $1,077.81 per original $1,000 invested.

(7)  INCOME TAXES -

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

                                             2002       2001
     Net Income for Financial
      Reporting Purposes                  $1,893,642  $1,301,468

     Depreciation for Tax Purposes
      Under Depreciation for Financial
      Reporting Purposes                      29,488      18,983

     Income Accrued for Tax Purposes
      Under Income for Financial
      Reporting Purposes                           0     (13,275)

     Gain on Sale of Real Estate for
      Tax Purposes Under Gain for
      Financial Reporting Purposes          (216,992)   (219,324)
                                           ---------   ---------
           Taxable Income to Partners     $1,706,138  $1,087,852
                                           =========   =========

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2002 AND 2001

(7)  INCOME TAXES - (Continued)

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

                                                       2002       2001

     Partners' Capital for
       Financial  Reporting Purposes              $13,400,791  $ 13,183,466

     Adjusted Tax Basis of Investments
      in Real Estate Over Net
      Investments in Real Estate
      for Financial Reporting Purposes                232,316       419,820

     Syndication Costs Treated as Reduction
       of Capital for Financial Reporting Purposes  3,336,442     3,336,442
                                                     --------     ---------
           Partners' Capital for
               Tax Reporting Purposes             $16,969,549  $ 16,939,728
                                                   ==========    ==========

(8)  FAIR VALUE OF FINANCIAL INSTRUMENTS -

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

                             _______2002_______      _______2001_______
                              Carrying     Fair       Carrying    Fair
                               Amount     Value        Amount    Value

     Cash                  $      373  $      373  $      486  $      486
     Money Market Funds     2,454,485   2,454,485     938,212     938,212
                            ---------    --------   ---------   ---------
       Total Cash and
         Cash Equivalents  $2,454,858  $2,454,858  $  938,698 $   938,698
                            =========   =========   =========   =========


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

       None.

                            PART III

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

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
of  the  registrant are Robert P. Johnson and AFM.   The  General
Partners  manage and control the Partnership's affairs  and  have
general  responsibility and the ultimate authority in all matters
affecting the Partnership's business.  The director and  officers
of AFM are as follows:

        Robert  P.  Johnson, age 58, is Chief Executive  Officer,
President  and  Director and has held these positions  since  the
formation  of  AFM  in September 1988, and has  been  elected  to
continue  in these positions until December 2003.  From  1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing  in  tax-advantaged  limited  partnership
investments.   In  that  capacity, he has been  involved  in  the
development,  analysis, marketing and management  of  public  and
private investment programs investing in net lease properties  as
well  as  public  and  private investment programs  investing  in
energy  development.   Since  1971,  Mr.  Johnson  has  been  the
president,  a  director  and  a  registered  principal   of   AEI
Securities,  Inc.,  which is registered with the  Securities  and
Exchange Commission as a securities broker-dealer, is a member of
the  National Association of Securities Dealers, Inc. (NASD)  and
is  a  member  of  the Security Investors Protection  Corporation
(SIPC).   Mr.  Johnson has been president,  a  director  and  the
principal shareholder of AEI Fund Management, Inc., a real estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in  fourteen limited partnerships and a managing member in  three
LLCs.

        Patrick  W.  Keene,  age 43, 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 2003.  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.

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-K   any delinquent filing of such reports and
any  failure  to file such reports during the fiscal  year  ended
December  31, 2002.   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 2002 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.

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

        The following table sets forth information pertaining  to
the   ownership  of  the  Units  by  each  person  known  by  the
Partnership to beneficially own 5% or more of the Units, by  each
General  Partner, and by each officer or director of the Managing
General Partner as of February  28, 2003:

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

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

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

   Patrick W. Keene                              0            0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

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

                                    *     Less than 1%
**  Mr. Larson resigned as an officer of the Managing General Partner
    effective February 28, 2003.

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, 2002 and 2001.

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, 2002, 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, 2002.

                                                     Amount Incurred
Person or Entity                                      From Inception
 Receiving             Form and Method           (September 20, 1988) to
Compensation           of Compensation              December 31, 2002

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

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

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


General Partners     Reimbursement at Cost for all           $ 3,447,371
and 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     Reimbursement at Cost for all           $   397,288
and Affiliates       expenses relatedto the disposition
                     of the Fund's properties.

General Partners     1% of Net Cash Flow in any fiscal       $   208,773
                     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.

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, 2002

General Partners     15% of distributions of Net Proceeds    $    16,141
                     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 on September 26,  1988  [File
     No. 33-24419]).

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

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

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

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

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

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

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

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

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

                  A.   Exhibits -

                           Description

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                  A.   Exhibits -

                                Description

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

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

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

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

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

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

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

     99.2  Certification  of 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.  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)/15d-14(c)]
under  the Exchange Act) related to the Partnership as of a  date
(the  "Evaluation Date") within 90 days prior to the filing  date
of  this  report.  Based upon that evaluation, the President  and
Chief Financial Officer of the Managing General Partner concluded
that,  as  of  the Evaluation Date, the disclosure  controls  and
procedures are effective in timely alerting them to the  material
information  relating to the Partnership required to be  included
in periodic SEC filings.

       (b)  Changes in internal controls

         There   were   no  significant  changes  made   in   the
Partnership's internal controls during the period covered by this
report or, to the Managing General Partner's knowledge, in  other
factors that could significantly affect these controls subsequent
to the date of their evaluation.

                           SIGNATURES

       Pursuant to the requirements of Section 13 or 15(d) of the
Securities  Exchange Act of 1934, the registrant has duly  caused
this  report  to  be  signed on its behalf  by  the  undersigned,
thereunto duly authorized.

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


March 21, 2003                 By:/s/ Robert P. Johnson
                                  Robert  P. Johnson, President and Director
                                  (Principal Executive Officer)


        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

 Name                            Title                  Date


/s/ Robert P. Johnson   President  (Principal Executive Officer)  March 21, 2003
Robert P. Johnson       and Sole Director of Managing General Partner

/s/ Patrick W. Keene    Chief  Financial Officer and Treasurer    March 21, 2003
Patrick W. Keene        (Principal Accounting Officer)


                         CERTIFICATIONS

I, Robert P. Johnson, certify that:

1.  I have reviewed this annual report on Form 10-KSB of AEI Real
Estate Fund XVIII Limited Partnership;

2. Based on my knowledge, this annual report does not contain any
untrue  statement of a material fact or omit to state a  material
fact  necessary  to make the statements made,  in  light  of  the
circumstances  under  which  such  statements  were   made,   not
misleading  with  respect to the period covered  by  this  annual
report;

3.  Based  on my knowledge; the financial statements,  and  other
financial  information  included in this  annual  report,  fairly
present in all material respects the financial condition, results
of  operations and cash flows of the registrant as of,  and  for,
the periods presented in this annual report;

4.   The  registrant's  other  certifying  officers  and  I   are
responsible for establishing and maintaining disclosure  controls
and  procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have;

        a)  designed  such disclosure controls and procedures  to
ensure  that  material information relating  to  the  registrant,
including its consolidated subsidiaries, is made known to  us  by
others  within those entities, particularly during the period  in
which this annual report is being prepared;

        b)   evaluated  the  effectiveness  of  the  registrant's
disclosure  controls and procedures as of a date within  90  days
prior  to  the filing date of this annual report (the "Evaluation
Date"); and

        c)  presented in this annual report our conclusions about
the effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;

5.   The  registrant's  other  certifying  officers  and  I  have
disclosed,   based  on  our  most  recent  evaluation,   to   the
registrant's  auditors  and the audit committee  of  registrant's
board   of   directors  (or  persons  performing  the  equivalent
functions):

       a) all significant deficiencies in the design or operation
of   internal   controls   which  could  adversely   affect   the
registrant's  ability  to record, process, summarize  and  report
financial data and have identified for the registrant's  auditors
any material weaknesses in internal controls; and

       b)   any  fraud,  whether or not material,  that  involves
management or other employees who have a significant role in  the
registrant's internal controls; and

6.   The  registrant's  other  certifying  officers  and  I  have
indicated  in  this annual report whether there were  significant
changes  in  internal  controls or in other  factors  that  could
significantly affect internal controls subsequent to the date  of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.



Dated:  March 21, 2003           /s/ Robert P. Johnson
                                 Robert P. Johnson, President
                                 AEI Fund Management XVIII, Inc.
                                 Managing General Partner

                         CERTIFICATIONS

I, Patrick W. Keene, certify that:

1.  I have reviewed this annual report on Form 10-KSB of AEI Real
Estate Fund XVIII Limited Partnership;

2. Based on my knowledge, this annual report does not contain any
untrue  statement of a material fact or omit to state a  material
fact  necessary  to make the statements made,  in  light  of  the
circumstances  under  which  such  statements  were   made,   not
misleading  with  respect to the period covered  by  this  annual
report;

3.  Based  on my knowledge; the financial statements,  and  other
financial  information  included in this  annual  report,  fairly
present in all material respects the financial condition, results
of  operations and cash flows of the registrant as of,  and  for,
the periods presented in this annual report;

4.   The  registrant's  other  certifying  officers  and  I   are
responsible for establishing and maintaining disclosure  controls
and  procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have;

        a)  designed  such disclosure controls and procedures  to
ensure  that  material information relating  to  the  registrant,
including its consolidated subsidiaries, is made known to  us  by
others  within those entities, particularly during the period  in
which this annual report is being prepared;

        b)   evaluated  the  effectiveness  of  the  registrant's
disclosure  controls and procedures as of a date within  90  days
prior  to  the filing date of this annual report (the "Evaluation
Date"); and

        c)  presented in this annual report our conclusions about
the effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;

5.   The  registrant's  other  certifying  officers  and  I  have
disclosed,   based  on  our  most  recent  evaluation,   to   the
registrant's  auditors  and the audit committee  of  registrant's
board   of   directors  (or  persons  performing  the  equivalent
functions):

       a) all significant deficiencies in the design or operation
of   internal   controls   which  could  adversely   affect   the
registrant's  ability  to record, process, summarize  and  report
financial data and have identified for the registrant's  auditors
any material weaknesses in internal controls; and

       b)   any  fraud,  whether or not material,  that  involves
management or other employees who have a significant role in  the
registrant's internal controls; and

6.   The  registrant's  other  certifying  officers  and  I  have
indicated  in  this annual report whether there were  significant
changes  in  internal  controls or in other  factors  that  could
significantly affect internal controls subsequent to the date  of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.



Dated:  March 21, 2003           /s/ Patrick W. Keene
                                 Patrick W. Keene, Chief Financial Officer
                                 AEI Fund Management XVIII, Inc.
                                 Managing General Partner