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

                           FORM 10-QSB

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

                     For the Quarter Ended:
                       September 30, 2007

               Commission file number:  000-18289


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


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


    30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
             (Address of Principal Executive Offices)

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


                       Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)

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

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

Transitional Small Business Disclosure Format:   Yes       No [X]



         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP


                              INDEX




PART I. Financial Information

 Item 1. Balance Sheet as of September 30, 2007 and December 31, 2006

         Statements for the Periods ended September 30, 2007 and 2006:

           Income

           Cash Flows

           Changes in Partners' Capital

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis

 Item 3. Controls and Procedures

PART II. Other Information

 Item 1. Legal Proceedings

 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 Item 3. Defaults Upon Senior Securities

 Item 4. Submission of Matters to a Vote of Security Holders

 Item 5. Other Information

 Item 6. Exhibits

         Signatures


<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                          BALANCE SHEET
            SEPTEMBER 30, 2007 AND DECEMBER 31, 2006

                           (Unaudited)

                             ASSETS

                                                   2007           2006
CURRENT ASSETS:
  Cash and Cash Equivalents                     $ 2,503,621    $ 3,208,225
  Receivables                                         6,500              0
                                                 -----------    -----------
      Total Current Assets                        2,510,121      3,208,225
                                                 -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                              644,656        806,946
  Buildings and Equipment                         2,153,794      2,782,775
  Accumulated Depreciation                       (1,089,903)    (1,401,177)
                                                 -----------    -----------
                                                  1,708,547      2,188,544
  Real Estate Held for Sale                         604,734      1,882,501
                                                 -----------    -----------
      Net Investments in Real Estate              2,313,281      4,071,045
                                                 -----------    -----------
          Total Assets                          $ 4,823,402    $ 7,279,270
                                                 ===========    ===========

                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    40,160    $    15,479
  Distributions Payable                           1,862,397      2,713,680
  Unearned Rent                                      24,778         33,242
                                                 -----------    -----------
      Total Current Liabilities                   1,927,335      2,762,401
                                                 -----------    -----------
PARTNERS' CAPITAL:
  General Partners                                    2,484         15,006
  Limited Partners, $1,000 per Unit;
   30,000 Units authorized; 22,783 Issued;
   18,957 Units outstanding                       2,893,583      4,501,863
                                                 -----------    -----------
      Total Partners' Capital                     2,896,067      4,516,869
                                                 -----------    -----------
        Total Liabilities and Partners' Capital $ 4,823,402    $ 7,279,270
                                                 ===========    ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                       STATEMENT OF INCOME
               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                 Three Months Ended      Nine Months Ended
                               9/30/07       9/30/06   9/30/07      9/30/06

RENTAL INCOME                $  98,692    $  96,598   $  292,700  $  287,316

EXPENSES:
   Partnership Administration -
     Affiliates                 23,626       32,978       79,128     100,663
   Partnership Administration and
     Property Management -
     Unrelated Parties           4,247        1,407       22,402      19,546
   Depreciation                 17,381       17,387       52,149      52,245
                              ---------    ---------   ----------  ----------
        Total Expenses          45,254       51,772      153,679     172,454
                              ---------    ---------   ----------  ----------

OPERATING INCOME                53,438       44,826      139,021     114,862

OTHER INCOME:
   Interest Income              28,926       35,406       57,656      74,024
                              ---------    ---------   ----------  ----------
INCOME FROM CONTINUING
   OPERATIONS                   82,364       80,232      196,677     188,886

Income from Discontinued
  Operations                    47,418      775,753      345,112   1,703,452
                              ---------    ---------   ----------  ----------
NET INCOME                   $ 129,782    $ 855,985   $  541,789  $1,892,338
                              =========    =========   ==========  ==========
NET INCOME ALLOCATED:
   General Partners          $   4,984    $  39,212   $    9,104  $   55,927
   Limited Partners            124,798      816,773      532,685   1,836,411
                              ---------    ---------   ----------  ----------
                             $ 129,782    $ 855,985   $  541,789  $1,892,338
                              =========    =========   ==========  ==========
INCOME PER LIMITED PARTNERSHIP UNIT:
   Continuing Operations     $    4.30    $    4.19   $    10.27  $     9.84
   Discontinued Operations        2.28        38.87        17.83       86.77
                              ---------    ---------   ----------  ----------
        Total                $    6.58    $   43.06   $    28.10  $    96.61
                              =========    =========   ==========  ==========
Weighted Average Units
 Outstanding                    18,957       18,969       18,957      19,008
                              =========    =========   ==========  ==========

 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 NINE-MONTH PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                                   2007           2006

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                   $   541,789    $ 1,892,338

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                    61,985        163,397
     Gain on Sale of Real Estate                   (252,126)    (1,273,977)
     Increase in Receivables                         (6,500)             0
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                    24,681        (10,334)
     Decrease in Unearned Rent                       (8,464)       (10,454)
                                                 -----------    -----------
        Total Adjustments                          (180,424)    (1,131,368)
                                                 -----------    -----------
        Net Cash Provided By
           Operating Activities                     361,365        760,970
                                                 -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from Sale of Real Estate              1,947,905      5,025,945
                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable               (851,283)      (346,370)
   Distributions to Partners                     (2,162,591)    (6,039,714)
   Redemption Payments                                    0        (70,677)
                                                 -----------    -----------
        Net Cash Used For
          Financing  Activities                  (3,013,874)    (6,456,761)
                                                 -----------    -----------
NET DECREASE IN CASH
   AND CASH EQUIVALENTS                            (704,604)      (669,846)

CASH AND CASH EQUIVALENTS, beginning of period    3,208,225      4,707,199
                                                 -----------    -----------
CASH AND CASH EQUIVALENTS, end of period        $ 2,503,621    $ 4,037,353
                                                 ===========    ===========

 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 PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                                                                   Limited
                                                                 Partnership
                             General      Limited                   Units
                             Partners     Partners     Total     Outstanding


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

  Distributions              (60,397)   (5,979,317)   (6,039,714)

  Redemption Payments           (707)      (69,970)      (70,677)    (114.00)

  Net Income                  55,927     1,836,411     1,892,338
                             --------   -----------   -----------  ---------
BALANCE, September 30, 2006 $ 12,366   $ 6,798,319   $ 6,810,685   18,969.13
                             ========   ===========   ===========  =========


BALANCE, December 31, 2006  $ 15,006   $ 4,501,863   $ 4,516,869   18,957.13

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

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


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                       SEPTEMBER 30, 2007

                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules  and  regulations,  although  the  Partnership
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     Partnership's latest annual report on Form 10-KSB.

(2)  Organization -

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

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

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


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(2)  Organization - (Continued)

     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.

     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.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Reclassification -

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

(4)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  The payable to AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.

(5)  Discontinued Operations -

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

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

     During  2006, the Partnership sold its 50% interest  in  the
     Jared Jewelry store in Lakewood, Colorado, in seven separate
     transactions,  to unrelated third parties.  The  Partnership
     received  total  net  sale  proceeds  of  $2,382,658,  which
     resulted  in  a net gain of $450,831.  The cost and  related
     accumulated   depreciation  of  the   interests   sold   was
     $2,017,633  and $85,806, respectively.  For the nine  months
     ended September 30, 2006, the net gain was $406,121.

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

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


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(5)  Discontinued Operations - (Continued)

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

     Subsequent to September 30, 2007, the Partnership  sold  its
     remaining  4.2781%  interest in the  Eckerd  drug  store  in
     Auburn,   New  York  to  an  unrelated  third  party.    The
     Partnership  received  net  sale proceeds  of  approximately
     $212,000,  which  resulted in a net  gain  of  approximately
     $25,300.   The cost and related accumulated depreciation  of
     the interest sold was $195,691 and $8,969, respectively.  At
     September  30, 2007 and December 31, 2006, the property  was
     classified as Real Estate Held for Sale with a book value of
     $186,722 and $1,882,501, respectively.

     On  June 30, 2007, the Lease term expired for the Children's
     World  daycare center in Blue Springs, Missouri.  The tenant
     reviewed their operations at the property and decided not to
     enter  into  an agreement to extend the term of  the  Lease.
     The Partnership has listed the property for sale with a real
     estate  broker in the Blue Springs area.  While the property
     is  vacant,  the Partnership is responsible for real  estate
     taxes  and  other  costs  associated  with  maintaining  the
     property.  The Partnership has evaluated the property  value
     and  decided that there is no impairment loss at this  time.
     At  September 30, 2007, the property was classified as  Real
     Estate Held for Sale with a book value of $418,012.

     During  the  first  nine  months  of  2007  and  2006,   the
     Partnership  distributed $1,810,943 and  $5,328,632  of  net
     sale proceeds to the Limited and General Partners as part of
     their quarterly distributions, which represented a return of
     capital of $94.58 and $277.64 per Limited Partnership  Unit,
     respectively.

     The financial results for these properties are reflected  as
     Discontinued   Operations  in  the  accompanying   financial
     statements.   The following are the results of  discontinued
     operations for the periods ended September 30:

                                Three Months Ended       Nine Months Ended
                               9/30/07      9/30/06    9/30/07      9/30/06

Rental Income                  $  6,599  $ 144,466   $ 121,587   $  545,830
Property Management Expenses    (16,218)    (2,823)    (18,765)      (5,203)
Depreciation                          0    (24,300)     (9,836)    (111,152)
Gain on Disposal of Real Estate  57,037    658,410     252,126    1,273,977
                                -------   ---------   ---------   ----------
   Income from Discontinued
     Operations                $ 47,418  $ 775,753   $ 345,112   $1,703,452
                                =======   =========   =========   ==========


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS

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

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

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

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

    the effect of tenant defaults; and

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

The Application of Critical Accounting Policies

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

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

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

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

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

Results of Operations

       For the nine months ended September 30, 2007 and 2006, the
Partnership  recognized rental income from continuing  operations
of  $292,700 and $287,316, respectively.  In 2007, rental  income
increased due to rent increases on three properties.

       For the nine months ended September 30, 2007 and 2006, the
Partnership  incurred  Partnership administration  expenses  from
affiliated parties of $79,128 and $100,663, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.  As  the
Partnership's asset base decreases due to property sales,  it  is
allocated a smaller share of expenses that are allocated  by  AEI
Fund  Management, Inc. based on the relative assets of the  funds
under  management.   During  the same  periods,  the  Partnership
incurred   Partnership  administration  and  property  management
expenses   from  unrelated  parties  of  $22,402   and   $19,546,
respectively.  These expenses represent direct payments to  third
parties  for legal and filing fees, direct administrative  costs,
outside audit costs, taxes, insurance and other property costs.

       For the nine months ended September 30, 2007 and 2006, the
Partnership  recognized interest income of $57,656  and  $74,024,
respectively.  In 2006, interest income was higher mainly due  to
the  Partnership  having more money invested in  a  money  market
account   due  to  property  sales.   The  sales  proceeds   were
subsequently distributed to the Partners.

        In  accordance  with  Statement of  Financial  Accounting
Standards  No. 144, Accounting for the Impairment or Disposal  of
Long-Lived  Assets,  upon  complete disposal  of  a  property  or
classification of a property as Real Estate Held  for  Sale,  the
Partnership  includes  the operating  results  and  sale  of  the
property   in   discontinued  operations.    In   addition,   the
Partnership reclassifies the prior periods operating results  and
any  partial  sales  of the property to discontinued  operations.
For  the  nine  months ended September 30, 2007, the  Partnership
recognized  income  from  discontinued  operations  of  $345,112,
representing rental income less property management expenses  and
depreciation  of $92,986 and gain on disposal of real  estate  of
$252,126.   For  the nine months ended September  30,  2006,  the
Partnership  recognized  income from discontinued  operations  of
$1,703,452,  representing rental income less property  management
expenses  and  depreciation of $429,475 and gain on  disposal  of
real estate of $1,273,977.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

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

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

        During 2006, the Partnership sold its 50% interest in the
Jared  Jewelry  store in Lakewood, Colorado,  in  seven  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $2,382,658, which resulted in
a  net  gain  of  $450,831.   The cost  and  related  accumulated
depreciation  of the interests sold was $2,017,633  and  $85,806,
respectively.  For the nine months ended September 30, 2006,  the
net gain was $406,121.

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

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

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

       Subsequent to September 30, 2007, the Partnership sold its
remaining  4.2781% interest in the Eckerd drug store  in  Auburn,
New  York  to an unrelated third party.  The Partnership received
net sale proceeds of approximately $212,000, which resulted in  a
net   gain  of  approximately  $25,300.   The  cost  and  related
accumulated  depreciation of the interest sold was  $195,691  and
$8,969,  respectively.  At September 30, 2007  and  December  31,
2006,  the property was classified as Real Estate Held  for  Sale
with a book value of $186,722 and $1,882,501, respectively.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        On  June  30,  2007,  the  Lease  term  expired  for  the
Children's  World daycare center in Blue Springs, Missouri.   The
tenant reviewed their operations at the property and decided  not
to  enter into an agreement to extend the term of the Lease.  The
Partnership  has listed the property for sale with a real  estate
broker  in the Blue Springs area.  While the property is  vacant,
the  Partnership is responsible for real estate taxes  and  other
costs  associated with maintaining the property.  The Partnership
has  evaluated the property value and decided that  there  is  no
impairment  loss  at  this  time.  At  September  30,  2007,  the
property was classified as Real Estate Held for Sale with a  book
value of $418,012.

        In the second quarter of 2005, the Partnership decided to
discontinue the reinvestment of proceeds from property  sales  in
additional  properties.   As a result, the  Partnership's  rental
income  and operating income will decrease in the future  as  the
Partnership sells its remaining properties.

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

Liquidity and Capital Resources

        During the nine months ended September 30, 2007 and 2006,
the  Partnership's cash balances decreased $704,604 and $669,846,
respectively, as a result of distributions paid to  the  Partners
in   excess  of  cash  generated  from  operating  and  investing
activities.

        Net  cash provided by operating activities decreased from
$760,970  in 2006 to $361,365 in 2007 due to a decrease in  total
rental and interest income in 2007, which was partially offset by
a  decrease in Partnership administration and property management
expenses in 2007 and net timing differences in the collection  of
payments from the tenants and the payments of expenses.

        During the nine months ended September 30, 2007 and 2006,
the  Partnership generated cash flow from the sale of real estate
of $1,947,905 and $5,025,945, respectively.

       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.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       For the nine months ended September 30, 2007 and 2006, the
Partnership  declared distributions of $2,162,591 and $6,039,714,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions  of  $2,140,965  and  $5,979,317  and  the  General
Partners  received distributions of $21,626 and $60,397  for  the
periods,   respectively.   In  September  2007,  the  Partnership
declared   a  special  distribution  of  net  sale  proceeds   of
$1,717,172.   In  March, June, September and December  2006,  the
Partnership  declared special distributions of net sale  proceeds
of $1,717,172, $505,051, $3,030,303 and $2,525,253, respectively,
which  resulted  in  higher distributions in 2006  and  a  higher
distribution payable at December 31, 2006.

        During  the  first  nine months of  2007  and  2006,  the
Partnership  distributed $1,810,943 and $5,328,632  of  net  sale
proceeds  to  the Limited and General Partners as part  of  their
quarterly distributions, which represented a return of capital of
$94.58 and $277.64 per Limited Partnership Unit, respectively.

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

       During 2007, the Partnership did not redeem any Units from
the Limited Partners.  During the first nine months of 2006, nine
Limited  Partners redeemed a total of 114 Partnership  Units  for
$69,970  in  accordance  with  the  Partnership  Agreement.   The
Partnership  acquired  these  Units  using  Net  Cash  Flow  from
operations.   In  prior  years, a total of 294  Limited  Partners
redeemed   3,699.92  Partnership  Units  for   $3,087,902.    The
redemptions  increase the remaining Limited  Partners'  ownership
interest  in  the  Partnership.  As a result of these  redemption
payments  and pursuant to the Partnership Agreement, the  General
Partners received distributions of $707 in 2006.

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

ITEM 3.   CONTROLS AND PROCEDURES.

       (a) Evaluation of disclosure controls and procedures

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

       (b)  Changes in internal controls

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

                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

        There are no material pending legal proceedings to  which
the Partnership is a party or of which the Partnership's property
is subject.

ITEM  2.UNREGISTERED  SALES  OF  EQUITY  SECURITIES  AND  USE  OF
  PROCEEDS

        (a)  During  the  period  covered  by  this  report,  the
Partnership  did  not  sell any equity securities  that  are  not
registered under the Securities Act of 1933.

       (b) Not applicable.

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


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

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

      None.

ITEM 5.OTHER INFORMATION

      None.

ITEM 6.EXHIBITS

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

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

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

                           SIGNATURES

        In  accordance with the requirements of the Exchange Act,
the  registrant caused this report to be signed on its behalf  by
the undersigned, thereunto duly authorized.


Dated:  November 9, 2007      AEI Real Estate Fund XVIII
                              Limited Partnership
                              By: AEI Fund Management XVIII, Inc.
                              Its: Managing General Partner



                              By: /s/ Robert P Johnson
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ Patrick W Keene
                                      Patrick W. Keene
                                      Chief Financial Officer
                                      (Principal Accounting Officer)