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:  March 31, 2004

                Commission file number:  0-18289


            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 Securities Exchange  Act  of
1934  during the preceding 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

         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 March 31, 2004 and December 31, 2003

         Statements for the Periods ended March 31, 2004 and 2003:

           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. Changes in Securities

 Item 3. Defaults Upon Senior Securities

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

 Item 5. Other Information

 Item 6. Exhibits and Reports on Form 8-K

         Signatures


<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                          BALANCE SHEET
              MARCH 31, 2004 AND DECEMBER 31, 2003

                           (Unaudited)

                             ASSETS

                                                     2004          2003
CURRENT ASSETS:
  Cash and Cash Equivalents                      $ 4,994,709   $ 5,776,605

INVESTMENTS IN REAL ESTATE:
  Land                                             3,281,653     2,330,739
  Buildings and Equipment                          7,787,027     6,683,264
  Accumulated Depreciation                        (1,782,399)   (1,722,648)
                                                  -----------   -----------
                                                   9,286,281     7,291,355
  Real Estate Held for Sale                        1,757,654     2,665,310
                                                  -----------   -----------
      Net Investments in Real Estate              11,043,935     9,956,665
                                                  -----------   -----------
           Total  Assets                         $16,038,644   $15,733,270
                                                  ===========   ===========

                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    60,561   $    18,384
  Distributions Payable                              342,841     1,197,541
  Unearned Rent                                       56,623             0
                                                  -----------   -----------
      Total Current Liabilities                      460,025     1,215,925
                                                  -----------   -----------
PARTNERS' CAPITAL:
  General Partners                                    38,864        28,251
  Limited Partners, $1,000 per Unit;
   30,000 Units authorized; 22,783 Units Issued;
   19,448 and 19,523 Units outstanding in
   2004 and 2003, respectively                    15,539,755    14,489,094
                                                  -----------   -----------
      Total Partners' Capital                     15,578,619    14,517,345
                                                  -----------   -----------
        Total Liabilities and Partners' Capital  $16,038,644   $15,733,270
                                                  ===========   ===========

 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 MARCH 31

                           (Unaudited)

                                                      2004          2003

RENTAL INCOME                                    $   280,851    $   189,150

EXPENSES:
   Partnership  Administration  -  Affiliates         49,321         65,716
   Partnership Administration and Property
      Management - Unrelated Parties                   9,644          9,961
   Depreciation                                       59,751         37,800
                                                  -----------    -----------
        Total Expenses                               118,716        113,477
                                                  -----------    -----------

OPERATING INCOME                                     162,135         75,673

OTHER INCOME:
   Interest Income                                    13,922          8,164
   Gain on Sale of Real Estate                             0        286,861
                                                  -----------    -----------
        Total Other Income                            13,922        295,025
                                                  -----------    -----------

INCOME FROM CONTINUING OPERATIONS                    176,057        370,698

Income from Discontinued Operations                1,304,634      1,229,571
                                                  -----------    -----------
NET INCOME                                       $ 1,480,691    $ 1,600,269
                                                  ===========    ===========
NET INCOME ALLOCATED:
   General Partners                              $    14,807    $    16,003
   Limited Partners                                1,465,884      1,584,266
                                                  -----------    -----------
                                                 $ 1,480,691    $ 1,600,269
                                                  ===========    ===========
INCOME PER LIMITED PARTNERSHIP UNIT:
   Continuing Operations                         $      8.96    $     18.69
   Discontinued Operations                             66.41          61.98
                                                  -----------    -----------
         Total                                   $     75.37    $     80.67
                                                  ===========    ===========
Weighted Average Units Outstanding                    19,448         19,638
                                                  ===========    ===========

 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 PERIODS ENDED MARCH 31

                           (Unaudited)

                                                       2004          2003
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $ 1,480,691   $ 1,600,269

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       59,751        74,352
     Gain on Sale of Real Estate                    (1,223,369)   (1,303,013)
     Decrease in Receivables                                 0         6,740
     Increase in Payable to
        AEI Fund Management, Inc.                       42,177        83,941
     Increase in Unearned Rent                          56,623        51,815
                                                    -----------   -----------
          Total Adjustments                         (1,064,818)   (1,086,165)
                                                    -----------   -----------
        Net Cash Provided By
            Operating Activities                       415,873       514,104
                                                    -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                       (2,054,677)       (9,937)
   Proceeds from Sale of Real Estate                 2,131,025     2,306,496
                                                    -----------   -----------
        Net Cash Provided By
            Investing Activities                        76,348     2,296,559
                                                    -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in Distributions Payable       (854,700)      202,019
   Distributions to Partners                          (354,138)     (576,514)
   Redemption Payments                                 (65,279)      (16,553)
                                                    -----------   -----------
        Net Cash Used For
          Financing Activities                      (1,274,117)     (391,048)
                                                    -----------   -----------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                               (781,896)    2,419,615

CASH AND CASH EQUIVALENTS, beginning of period       5,776,605     2,454,858
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $ 4,994,709   $ 4,874,473
                                                    ===========   ===========

 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 MARCH 31

                           (Unaudited)


                                                                    Limited
                                                                  Partnership
                             General      Limited                    Units
                             Partners     Partners       Total    Outstanding


BALANCE, December 31, 2002  $   5,466   $13,395,325  $13,400,791   19,655.68

  Distributions                (5,765)     (570,749)    (576,514)

  Redemption Payments            (166)      (16,387)     (16,553)     (18.00)

  Net Income                   16,003     1,584,266    1,600,269
                             ---------   -----------  -----------  ----------
BALANCE, March 31, 2003     $  15,538   $14,392,455  $14,407,993   19,637.68
                             =========   ===========  ===========  ==========


BALANCE, December 31, 2003  $  28,251   $14,489,094  $14,517,345   19,522.58

  Distributions                (3,541)     (350,597)    (354,138)

  Redemption Payments            (653)      (64,626)     (65,279)     (74.70)

  Net Income                   14,807     1,465,884    1,480,691
                             ---------   -----------  -----------  ----------
BALANCE, March 31, 2004     $  38,864   $15,539,755  $15,578,619   19,447.88
                             =========   ===========  ===========  ==========

 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
                         MARCH 31, 2004

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

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


         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 2004 presentation.   These
     reclassifications  had no effect on Partners'  capital,  net
     income or cash flows.

(4)  Investments in Real Estate -

     On  January 1, 2003, the Partnership owned 35.6811%  of  the
     Fuddruckers restaurant.  During the first quarter  of  2003,
     the  Partnership  sold  34.9205% of  the  property,  in  two
     separate  transactions,  to unrelated  third  parties.   The
     Partnership  received total net sale proceeds  of  $714,327,
     which  resulted in a net gain of $286,861.  The  total  cost
     and  related accumulated depreciation of the interests  sold
     was $490,902 and $63,436, respectively.

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

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

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

(4)  Investments in Real Estate - (Continued)

     In  February 2004, Garden Ridge, L.P. (GR) filed for Chapter
     11  bankruptcy  reorganization.  In press releases,  GR  has
     stated  their intent to close eight of 44 stores and attempt
     to  renegotiate lease terms for certain other  stores.   The
     Woodlands store was not identified as one of the eight to be
     closed  and  GR  has  verbally communicated  that  they  are
     interested in confirming the Lease for this site.  In  April
     2004,  GR  submitted  a written proposal  requesting  a  28%
     reduction  in  monthly rent.  The Partnership  is  gathering
     market  information  about the site to  prepare  a  counter-
     proposal.  With the exception of February, GR was current on
     all  rents  due through May 2004.  The rent for February  is
     considered a pre-petition obligation, which may be paid from
     the  bankruptcy court, on a prorata basis with other claims,
     to   the  extent  available.   The  Partnership  expects  to
     continue  to  receive all scheduled rents in  future  months
     unless  the  Lease  is  rejected by GR.   If  the  Lease  is
     confirmed,  GR  must comply with all Lease  terms.   If  the
     Lease is rejected, GR would be required to return possession
     of the property to the Partnership and the Partnership would
     be  responsible  for  real  estate  taxes  and  other  costs
     required to maintain the property.

     On  February  5,  2004,  the  Partnership  purchased  a  50%
     interest in a Jared Jewelry store in Lakewood, Colorado  for
     $2,054,677.   The  property is leased to  Sterling  Jewelers
     Inc. under a Lease Agreement with a primary term of 20 years
     and  annual  rental  payments of  $158,755.   The  remaining
     interest  in  the property was purchased by  AEI  Net  Lease
     Income  &  Growth Fund XIX Limited Partnership, an affiliate
     of the Partnership.

     In  January 2004, the Partnership entered into an  agreement
     to  purchase  a  50%  interest in an Eckerd  drug  store  in
     Auburn, New York for approximately $2,244,000.  The property
     will be leased to Eckerd Corporation under a Lease Agreement
     with  a  primary term of 20 years and annual rental payments
     of  approximately $185,000.  AEI Net Lease Income  &  Growth
     Fund  XIX  Limited Partnership entered into an agreement  to
     purchase the remaining interest in the property.

     Subsequent  to March 31, 2004, the Partnership  purchased  a
     50%  interest in an Applebee's restaurant in Stow, Ohio  for
     approximately $1,549,000.  The property is leased  to  Apple
     Ohio  LLC under a Lease Agreement with a primary term of  20
     years and annual rental payments of $120,043.  The remaining
     interest  in  the property was purchased by  AEI  Net  Lease
     Income & Growth Fund XIX Limited Partnership.

(5)  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.

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

(6)  Discontinued Operations -

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

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

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

     During  the first nine months of 2003, the Partnership  sold
     its  38%  interest  in the Champps Americana  restaurant  in
     Centerville,   Ohio,  in  nine  separate  transactions,   to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $2,126,740, which resulted in a net gain of
     $740,621.    The   total   cost  and   related   accumulated
     depreciation  of  the  interests  sold  was  $1,502,252  and
     $116,133,  respectively.  For the three months  ended  March
     31, 2003, the net gain was $-0-.

     In  October 2003, the Partnership entered into an  agreement
     to  sell  the  Cheddar's restaurant in  Clive,  Iowa  to  an
     unrelated third party.  On January 6, 2004, the sale  closed
     with   the  Partnership  receiving  net  sale  proceeds   of
     $2,131,025, which resulted in a net gain of $1,223,369.   At
     December  31,  2003,  the property was  classified  as  Real
     Estate Held for Sale with a book value of $907,656.

     In  May  2003, the Partnership entered into an agreement  to
     sell  a Taco Cabana restaurant in San Antonio, Texas to  the
     lessee.   The agreement has been extended several  times  to
     enable  the  lessee  to  complete their  due  diligence  and
     certain negotiations with adjacent land owners.  The sale is
     subject to contingencies and may not be completed.   If  the
     sale  is  completed, the Partnership expects to receive  net
     proceeds of approximately $1,637,000, which will result in a
     net  gain  of approximately $479,000.  If this sale  is  not
     completed,  it is likely the Partnership will  seek  another
     buyer  for  the property and may not be able to negotiate  a
     similar  purchase agreement.  At March 31, 2004 and December
     31,  2003,  the property was classified as Real Estate  Held
     for Sale with a book value of $1,157,654.  During this time,
     the  lessee is continuing to pay rent and is complying  with
     the lease obligations.


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

(6)  Discontinued Operations - (Continued)

     During  the  first  three  months  of  2004  and  2003,  the
     Partnership  distributed $102,244 and $202,020 of  net  sale
     proceeds  to  the Limited and General Partners  as  part  of
     their quarterly distributions, which represented a return of
     capital  of  $5.20 and $10.18 per Limited Partnership  Unit,
     respectively.  The Partnership anticipates the remaining net
     sale  proceeds  will  either  be  reinvested  in  additional
     property or distributed to the Partners in the future.

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

     Although the lessee is continuing to pay rent, based  on  an
     analysis  of  market conditions in the area, the Partnership
     determined the property is impaired in accordance  with  the
     requirements of Statement of Financial Accounting  Standards
     No.  144, Accounting for the Impairment or Disposal of Long-
     Lived Assets.  As a result, in the fourth quarter of 2003, a
     charge to discontinued operations for real estate impairment
     of $252,399 was recognized, which was the difference between
     the  book  value  at December 31, 2003 of $852,399  and  the
     estimated  fair value of $600,000.  The charge was  recorded
     against  the  cost of the land, building and equipment.   At
     March  31,  2004  and December 31, 2003,  the  property  was
     classified as Real Estate Held for Sale.

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

                                                  2004          2003

     Rental Income                            $   86,578    $  251,053
     Property Management Expenses                 (5,313)       (1,082)
     Depreciation                                      0       (36,552)
     Gain on Disposal of Real Estate           1,223,369     1,016,152
                                               ----------    ----------
          Income from Discontinued Operations $1,304,634    $1,229,571
                                               ==========    ==========

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, taxation levels, the sufficiency  of
cash to meet operating expenses, rates of distribution, and other
matters.  These, and other forward looking statements made by the
Partnership,  must be evaluated in the context  of  a  number  of
factors that may affect the Partnership's financial condition and
results of operations, including the following:

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

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

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

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

     the effect of tenant defaults; and

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


The Application of Critical Accounting Policies

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

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

ITEM 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 three months ended March 31, 2004 and 2003,  the
Partnership  recognized rental income from continuing  operations
of  $280,851 and $189,150, respectively.  In 2004, rental  income
increased  due  to additional rent received from  three  property
acquisitions  in  2003  and  2004  and  rent  increases  on  five
properties.  These increases were partially offset by a  decrease
in rental income due to the sale of the Fuddruckers restaurant.

        For  the three months ended March 31, 2004 and 2003,  the
Partnership  incurred  Partnership administration  expenses  from
affiliated  parties of $49,321 and $65,716, 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  $9,644  and  $9,961, 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.

        In February 2004, Garden Ridge, L.P. (GR), the lessee  of
the  Garden  Ridge  retail store in Woodlands, Texas,  filed  for
Chapter 11 bankruptcy reorganization.  In press releases, GR  has
stated  their intent to close eight of 44 stores and  attempt  to
renegotiate lease terms for certain other stores.  The  Woodlands
store was not identified as one of the eight to be closed and  GR
verbally communicated that they are interested in confirming  the
Lease  for  this  site.  In April 2004, GR  submitted  a  written
proposal  requesting  a  28%  reduction  in  monthly  rent.   The
Partnership  is gathering market information about  the  site  to
prepare  a counter-proposal.  With the exception of February,  GR
was  current  on all rents due through May 2004.   The  rent  for
February  is considered a pre-petition obligation, which  may  be
paid  from  the bankruptcy court, on a prorata basis  with  other
claims,  to  the  extent available.  The Partnership  expects  to
continue  to receive all scheduled rents in future months  unless
the  Lease is rejected by GR.  If the Lease is confirmed, GR must
comply with all Lease terms.  If the Lease is rejected, GR  would
be   required  to  return  possession  of  the  property  to  the
Partnership  and  the Partnership would be responsible  for  real
estate taxes and other costs required to maintain the property.

        For  the three months ended March 31, 2004 and 2003,  the
Partnership  recognized interest income of  $13,922  and  $8,164,
respectively.   In  2004, interest income increased  due  to  the
Partnership having more money invested in a money market  account
due to property sales.

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

       For the three months ended March 31, 2003, the Partnership
recognized gain on sale of real estate from continuing operations
of  $286,861 from the sale of the Fuddruckers restaurant.   Since
the  Partnership retains an ownership interest in  the  property,
the  operating results and gain on sale of the property were  not
classified as discontinued operations.

        On January 1, 2003, the Partnership owned 35.6811% of the
Fuddruckers  restaurant.  During the first quarter of  2003,  the
Partnership  sold  34.9205%  of the  property,  in  two  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $714,327, which resulted in a
net  gain  of  $286,861.  The total cost and related  accumulated
depreciation  of  the  interests sold was $490,902  and  $63,436,
respectively.

        In  accordance  with  Statement of  Financial  Accounting
Standards  No. 144, Accounting for the Impairment or Disposal  of
Long-Lived  Assets,  upon  complete disposal  of  a  property  or
classification of a property as Real Estate Held  for  Sale,  the
Partnership  includes  the operating  results  and  sale  of  the
property   in   discontinued  operations.    In   addition,   the
Partnership reclassifies the prior periods operating results  and
any  partial  sales  of the property to discontinued  operations.
For  the  three  months  ended March 31,  2004,  the  Partnership
recognized  income  from discontinued operations  of  $1,304,634,
representing rental income less property management  expenses  of
$81,265  and gain on disposal of real estate of $1,223,369.   For
the three months ended March 31, 2003, the Partnership recognized
income  from  discontinued operations of $1,229,571, representing
rental  income less property management expenses and depreciation
of $213,419 and gain on disposal of real estate of $1,016,152.

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

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

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

       During the first nine months of 2003, the Partnership sold
its   38%  interest  in  the  Champps  Americana  restaurant   in
Centerville,  Ohio, in nine separate transactions,  to  unrelated
third  parties.  The Partnership received total net sale proceeds
of  $2,126,740,  which resulted in a net gain of  $740,621.   The
total  cost and related accumulated depreciation of the interests
sold  was  $1,502,252 and $116,133, respectively.  For the  three
months ended March 31, 2003, the net gain was $-0-.

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

       In October 2003, the Partnership entered into an agreement
to  sell  the Cheddar's restaurant in Clive, Iowa to an unrelated
third  party.   On  January 6, 2004, the  sale  closed  with  the
Partnership  receiving  net sale proceeds  of  $2,131,025,  which
resulted in a net gain of $1,223,369.  At December 31, 2003,  the
property was classified as Real Estate Held for Sale with a  book
value of $907,656.

        In May 2003, the Partnership entered into an agreement to
sell  a  Taco  Cabana  restaurant in San Antonio,  Texas  to  the
lessee.  The agreement has been extended several times to  enable
the   lessee   to  complete  their  due  diligence  and   certain
negotiations with adjacent land owners.  The sale is  subject  to
contingencies  and  may  not  be  completed.   If  the  sale   is
completed,  the  Partnership expects to receive net  proceeds  of
approximately  $1,637,000, which will result in  a  net  gain  of
approximately  $479,000.  If this sale is not  completed,  it  is
likely  the Partnership will seek another buyer for the  property
and  may  not be able to negotiate a similar purchase  agreement.
At  March  31,  2004  and  December 31, 2003,  the  property  was
classified  as  Real Estate Held for Sale with a  book  value  of
$1,157,654.   During this time, the lessee is continuing  to  pay
rent and is complying with the lease obligations.

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

       Although the lessee is continuing to pay rent, based on an
analysis  of  market  conditions in  the  area,  the  Partnership
determined  the  property  is impaired  in  accordance  with  the
requirements  of Statement of Financial Accounting Standards  No.
144,  Accounting  for  the Impairment or Disposal  of  Long-Lived
Assets.  As a result, in the fourth quarter of 2003, a charge  to
discontinued  operations for real estate impairment  of  $252,399
was  recognized, which was the difference between the book  value
at  December 31, 2003 of $852,399 and the estimated fair value of
$600,000.  The charge was recorded against the cost of the  land,
building and equipment.  At March 31, 2004 and December 31, 2003,
the property was classified as Real Estate Held for Sale.

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

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

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle  the  Partnership to receive  additional  rent  in
future  years  if gross receipts for the property exceed  certain
specified  amounts.  Increases in sales volumes of  the  tenants,
due to inflation and real sales growth, may result in an increase
in rental income over the term of the leases.  Inflation also may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

        During  the  three  months  ended  March  31,  2004,  the
Partnership's  cash balances decreased $781,896 as  a  result  of
cash  used  to purchase property and distributions  paid  to  the
Partners  in  excess of cash generated from operating activities,
which  were partially offset by cash generated from the  sale  of
property.   During  the three months ended March  31,  2003,  the
Partnership's cash balances increased $2,419,615 as a  result  of
cash  generated  from  the sale of property and  the  Partnership
distributed  less  cash to the Partners than  it  generated  from
operating activities.

        Net  cash provided by operating activities decreased from
$514,104 in 2003 to $415,873 in 2004 as a result of a decrease in
total   rental  and  interest  income  in  2004  and  net  timing
differences  in the collection of payments from the  lessees  and
the  payment  of  expenses,  which were  partially  offset  by  a
decrease  in  Partnership administration and property  management
expenses in 2004.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the  sale  of real estate.  During the three  months  ended
March 31, 2004 and 2003, the Partnership generated cash flow from
the   sale   of   real  estate  of  $2,131,025  and   $2,306,496,
respectively.   During the same period, the Partnership  expended
$2,054,677 and $9,937, respectively, to invest in real properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.

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


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

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

        On  February  5,  2004, the Partnership purchased  a  50%
interest  in  a  Jared  Jewelry store in Lakewood,  Colorado  for
$2,054,677.   The  property is leased to Sterling  Jewelers  Inc.
under  a  Lease  Agreement with a primary term of  20  years  and
annual  rental payments of $158,755.  The remaining  interest  in
the  property was purchased by AEI Net Lease Income & Growth Fund
XIX Limited Partnership, an affiliate of the Partnership.

       In January 2004, the Partnership entered into an agreement
to purchase a 50% interest in an Eckerd drug store in Auburn, New
York  for approximately $2,244,000.  The property will be  leased
to Eckerd Corporation under a Lease Agreement with a primary term
of 20 years and annual rental payments of approximately $185,000.
AEI  Net  Lease  Income  &  Growth Fund XIX  Limited  Partnership
entered  into an agreement to purchase the remaining interest  in
the property.

        Subsequent to March 31, 2004, the Partnership purchased a
50%  interest  in  an Applebee's restaurant  in  Stow,  Ohio  for
approximately $1,549,000.  The property is leased to  Apple  Ohio
LLC  under a Lease Agreement with a primary term of 20 years  and
annual  rental payments of $120,043.  The remaining  interest  in
the  property was purchased by AEI Net Lease Income & Growth Fund
XIX Limited Partnership.

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

        For  the three months ended March 31, 2004 and 2003,  the
Partnership  declared  distributions of  $354,138  and  $576,514,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions  of $350,597 and $570,749 and the General  Partners
received  distributions  of $3,541 and $5,765  for  the  periods,
respectively.   In  March  and  December  2003,  the  Partnership
declared   bonus   distributions  of   $202,020   and   $838,384,
respectively,  of  net sale proceeds, which  resulted  in  higher
distributions  in  2003  and a higher  distributions  payable  at
December 31, 2003.

        During  the  first  three months of 2004  and  2003,  the
Partnership  distributed  $102,244  and  $202,020  of  net   sale
proceeds  to  the Limited and General Partners as part  of  their
quarterly distributions, which represented a return of capital of
$5.20 and $10.18 per Limited Partnership Unit, respectively.  The
Partnership  anticipates the remaining  net  sale  proceeds  will
either be reinvested in additional property or distributed to the
Partners in the future.

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

       On January 1, 2004, nine Limited Partners redeemed a total
of  74.7  Partnership  Units for $64,626 in accordance  with  the
Partnership Agreement.  On January 1, 2003, two Limited  Partners
redeemed  a  total  of  18 Partnership Units  for  $16,387.   The
Partnership  acquired  these  Units  using  Net  Cash  Flow  from
operations.   In  prior  years, a total of 227  Limited  Partners
redeemed   3,127.37  Partnership  Units  for   $2,580,435.    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 $653 and  $166  in  2004  and
2003, respectively.

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

ITEM 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   are
adequately  designed to ensure that information  required  to  be
disclosed  by  us  in  the reports we file or  submit  under  the
Exchange  Act  is recorded, processed, summarized  and  reported,
within the time periods specified in applicable rules and forms.

       (b)  Changes in internal controls

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


                   PART 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.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 2.CHANGES IN SECURITIES

      None.

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 AND REPORTS ON FORM 8-K

       a. Exhibits -
                           Description

    10.1  Assignment of Purchase Agreement dated April  22,  2004
    between  the  Partnership  and  AEI  Fund  Management,   Inc.
    relating to the Property at 4296 Kent Road, Stow, Ohio.

    10.2  Assignment and Assumption of Lease dated April 30, 2004
    between  the Partnership, AEI Net Lease Income & Growth  Fund
    XIX  Limited  Partnership and PRECO II CRIC LLC  relating  to
    the Property at 4296 Kent Road, Stow, Ohio.

    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.

       b. Reports filed on Form  8-K - During  the quarter  ended
                                       March   31,   2004,    the
                                       Partnership filed  a  Form
                                       8-K dated January 8, 2004,
                                       reporting  the disposition
                                       of    the        Cheddar's
                                       restaurant in Clive, Iowa.

                                       During  the  quarter ended
                                       March  31,    2004,    the
                                       Partnership  filed  a Form
                                       8-K dated February 17,2004,
                                       reporting  the acquisition
                                       of  a Jared Jewelry  store
                                       in Lakewood, Colorado.


                           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:  May 11, 2004          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)