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

                            FORM 10-Q

        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

       For the quarterly period ended:  September 30, 2009

               Commission File Number:  000-18289

            AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
      (Exact name of registrant 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
                 (Registrant's telephone number)

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

Indicate  by check mark whether the registrant (1) has 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.      [X] Yes [ ]  No

Indicate  by  check  mark  whether the registrant  has  submitted
electronically  and posted on its corporate  Web  site,  if  any,
every  Interactive Data File required to be submitted and  posted
pursuant  to Rule 405 of Regulation S-T (232.405 of this chapter)
during  the preceding 12 months (or for such shorter period  that
the registrant was required to submit and post such files).
                                        [ ] Yes   [ ]  No

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated filer, an accelerated filer, a non-accelerated filer,
or  a  smaller reporting company.  See the definitions of  "large
accelerated  filer," "accelerated filer" and  "smaller  reporting
company" in Rule 12b-2 of the Exchange Act.

  Large accelerated filer           Accelerated filer

  Non-accelerated filer             Smaller reportingcompany  [X]

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

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                              INDEX


Part I - Financial Information

 Item 1. Financial Statements (unaudited):

         Statement of Net Assets Available for Liquidation
           as of September 30, 2009 and December 31, 2008

         Statement of Liquidating Activities for the
           Periods ended September 30, 2009 and 2008

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis of Financial Condition
           and Results of Operations

 Item 3. Quantitative and Qualitative Disclosures About Market Risk

 Item 4. Controls and Procedures

Part II - Other Information

 Item 1. Legal Proceedings

 Item 1A. Risk Factors

 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
        STATEMENT OF NET ASSETS AVAILABLE FOR LIQUIDATION
            SEPTEMBER 30, 2009 AND DECEMBER 31, 2008




                                                     2009           2008

ASSETS:
  Cash                                          $   726,162    $   833,860
  Investments in Real Estate                        946,400      1,074,400
                                                 -----------    -----------
          Total Assets                            1,672,562      1,908,260
                                                 -----------    -----------

LIABILITIES:
  Payable to AEI Fund Management, Inc.               10,501          5,675
  Distributions Payable                              42,929         51,512
                                                 -----------    -----------
          Total Liabilities                          53,430         57,187
                                                 -----------    -----------
NET ASSETS (PARTNERS' CAPITAL) IN LIQUIDATION,
  including 18,957 Limited Partnership
  Units outstanding                             $ 1,619,132    $ 1,851,073
                                                 ===========    ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
               STATEMENT OF LIQUIDATING ACTIVITIES
               FOR THE PERIODS ENDED SEPTEMBER 30


                                  Three Months Ended     Nine Months Ended
                                 9/30/09      9/30/08   9/30/09     9/30/08
SOURCES OF ADDITIONAL CASH:
  Rent                         $   24,505  $   26,019  $   79,678  $   96,354
  Interest Income                   1,850       6,331       5,994      25,575
  Proceeds from Sale of Real Estate     0     549,943           0   3,602,373
                                ----------  ----------  ----------  ---------
    Total Sources of
     Additional Cash               26,355     582,293      85,672   3,724,302
                                ----------  ----------  ----------  ---------
USES OF ADDITIONAL CASH:
  Partnership Administration -
   Affiliates                      13,068      13,411      43,175      52,825
  Partnership Administration and
   Property Management  -
   Unrelated Parties                1,931           0      12,824      61,814
   Distributions Paid to Partners  42,930      59,092     137,371   3,121,751
                                ----------  ----------  ----------  ---------
     Total Uses of Additional
      Cash                         57,929      72,503     193,370   3,236,390
                                ----------  ----------  ----------  ---------
INCREASE (DECREASE) IN NET ASSETS
  IN LIQUIDATION
    BEFORE ADJUSTMENTS            (31,574)    509,790    (107,698)    487,912
                                ----------  ----------  ----------  ---------
ADJUSTMENTS OF ESTIMATED VALUES:
  Change in Net Realizable values of:
    Real Estate                         0           0    (128,000)          0
    Payable to AEI
     Fund Management, Inc.           (481)     (4,879)     (4,826)     12,998
    Distributions  Payable              0    (505,044)      8,583    (448,246)
    Unearned Rent                   2,092          84           0      20,125
    Net Realizable Value of
     Real Estate Sold                   0    (550,000)          0  (3,582,000)
                                ----------  ----------  ----------  ---------
      Total Adjustment of
          Estimated Values          1,611  (1,059,839)   (124,243) (3,997,123)
                                ----------  ----------  ----------  ---------
DECREASE IN NET ASSETS
    IN LIQUIDATION                (29,963)   (550,049)   (231,941) (3,509,211)

BEGINNING NET ASSETS
    IN LIQUIDATION              1,649,095   2,445,767   1,851,073   5,404,929
                                ----------  ----------  ----------  ---------
ENDING NET ASSETS
    IN LIQUIDATION             $1,619,132  $1,895,718  $1,619,132  $1,895,718
                                ==========  ==========  ==========  =========

 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, 2009

(1)  The  condensed  statements included herein have been  prepared
     by  the  registrant, 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  registrant
     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
     registrant's latest annual report on Form 10-K.

(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)

(2)  Organization - (Continued)

     In  January 2009, the Managing General Partner solicited  by
     mail  a  proxy statement seeking the consent of the  Limited
     Partners,  as  required by Section 6.1  of  the  Partnership
     Agreement,  to  initiate the final disposition,  liquidation
     and  distribution of all of the Partnership's properties and
     assets  within  the next year.  On February  24,  2009,  the
     proposal  was  approved with a majority of  Units  voted  in
     favor  of  the proposal.  As a result, the Managing  General
     Partner  will  proceed with the planned liquidation  of  the
     Partnership.  At this time, the Partnership anticipates that
     it  will sell its remaining property and liquidate prior  to
     December 31, 2010.

     Financial Statement Presentation

       Because   liquidation  was  anticipated,  the  Partnership
       changed its basis of accounting after September 30,  2007,
       from  the  going  concern basis to the liquidation  basis.
       Effective  October 1, 2007, the Partnership  measures  its
       assets and liabilities at the amounts of cash expected  in
       liquidation  and  reports changes in estimates  when  they
       are   known.    The   accounts  of  the  Partnership   are
       maintained  on  the accrual basis of accounting  for  both
       federal   income  tax  purposes  and  financial  reporting
       purposes.

(3)  Investments in Real Estate -

     Effective  with  the  decision to  liquidate,  the  carrying
     amounts  of assets and liabilities were adjusted from  their
     historical bases to the amounts of cash expected from  their
     realization  and settlement.  Because of the expected  short
     liquidation period, the effects of discounting would not  be
     significant  and have been ignored.  At December  31,  2008,
     the  estimated real estate values were based upon comparable
     sales  of  similar properties.   At September 30, 2009,  the
     estimated  real  estate  values were based  upon  comparable
     sales  of  similar properties and a subsequent sale  of  one
     property.   It  is  reasonably  possible  that  the  amounts
     expected  to  be  realized  in the liquidation  process  may
     change in the near term.

     On  June 30, 2007, the Lease term expired for the KinderCare
     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.
     While   the   property  was  vacant,  the  Partnership   was
     responsible for real estate taxes and other costs associated
     with  maintaining  the  property.  On  July  23,  2008,  the
     Partnership  sold the daycare center to an  unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $549,943.  At the time of sale, the estimated net realizable
     value was $550,000.

     On  January  25,  2008, the Partnership sold the  KinderCare
     daycare  center  in Westerville, Ohio to an unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $1,423,596.   At  the  time  of  sale,  the  estimated   net
     realizable value was $1,415,000.

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

(3)  Investments in Real Estate - (Continued)

     On  March  12,  2008,  the Partnership sold  the  KinderCare
     daycare  center  in  Columbus, Ohio to  an  unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $1,628,834.   At  the  time  of  sale,  the  estimated   net
     realizable value was $1,617,000.

     During  the  first  nine  months  of  2009  and  2008,   the
     Partnership  distributed net sale proceeds of  $103,939  and
     $3,529,584  to the Limited and General Partners as  part  of
     their quarterly distributions, which represented a return of
     capital  of $5.43 and $184.33 per Limited Partnership  Unit,
     respectively.

     In   March  2009,  Tumbleweed,  Inc.,  the  tenant  of   the
     Tumbleweed restaurant in Chillicothe, Ohio filed for Chapter
     11  bankruptcy  reorganization.  Rents are current  and  the
     Partnership  expects  to continue to receive  all  scheduled
     rents  in  future  months unless the Lease  is  rejected  by
     Tumbleweed.  If the Lease is assumed, Tumbleweed must comply
     with  all Lease terms.  If the Lease is rejected, Tumbleweed
     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   associated   with
     maintaining  the  property.   In  July  2009,   the   tenant
     contacted  the Partnership and offered to assume  the  Lease
     and  extend the Lease term five years in exchange for a  15%
     rent  reduction.  The Partnership accepted  this  offer  and
     agreed  to  a  Lease Amendment, which is  subject  to  court
     approval  of the tenant's Plan of Reorganization.   At  June
     30,  2009,  based  on  the proposed rent  reduction  and  an
     analysis  of  market conditions in the area, the Partnership
     recognized  a $110,000 adjustment to decrease the  estimated
     net realizable value of the property.

     Subsequent to September 30, 2009, the Partnership  sold  its
     remaining 9.3699% interest in the Taco Cabana restaurant  in
     San  Antonio, Texas to the tenant.  The Partnership received
     net sale proceeds of approximately $158,000, which was equal
     to  the property's estimated net realizable value.  At  June
     30,  2009,  based  on  the  signed purchase  agreement,  the
     Partnership recognized an $18,000 adjustment to decrease the
     estimated net realizable value of the property.

(4)  Payable to AEI Fund Management, Inc. -

     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)  Subsequent Events -

     The  Partnership  has  evaluated subsequent  events  through
     November  10, 2009, the date which the financial  statements
     were  available  to be issued.  Subsequent events,  if  any,
     were  disclosed  in the appropriate note  in  the  Notes  to
     Financial Statements.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS.

        This  section contains "forward-looking statements" 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,  should 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.

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.

        Effective  October 1, 2007, the Partnership  adopted  the
liquidation  basis  of  accounting because the  General  Partners
anticipated the liquidation of the Partnership during  2008.   In
accordance  with the liquidation basis of accounting, assets  are
recorded  at their estimated net realizable value (the amount  of
cash expected to be received) and liabilities are recorded at the
amount  estimated  to  be  paid to creditors  and  Partners.   At
September  30, 2009, the estimated real estate values were  based
upon comparable sales of similar properties and a subsequent sale
of  one  property.   Any  changes in these  estimates  may  cause
material changes in the net assets in liquidation.

        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.

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

Results of Operations

        For  the  nine months ended September 30, 2009 and  2008,
while in the liquidation phase, the Partnership recognized rental
income  of  $79,678 and $116,479, respectively.  In 2009,  rental
income  decreased mainly as a result of property  sales.   During
the  same periods, the Partnership recognized interest income  of
$5,994  and $25,575, respectively.  In 2008, interest income  was
higher  due  to higher money market interest rates in 2008,  when
compared to 2009, and the Partnership had more money invested  in
a  money  market account due to property sales.  The majority  of
the sales proceeds were subsequently distributed to the Partners.

        For  the  nine months ended September 30, 2009 and  2008,
while   in   the  liquidation  phase,  the  Partnership  incurred
Partnership  administration expenses from affiliated  parties  of
$43,175 and $53,002, respectively.  These administration expenses
include  costs associated with the management of the  properties,
processing    distributions,    reporting    requirements     and
communicating  with 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 $17,650 and $48,639, 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.  These expenses  were
higher  in  2008, when compared to 2009, as a result of  expenses
incurred in 2008 related to the KinderCare daycare center in Blue
Springs, Missouri.

        In  March  2009,  Tumbleweed, Inc.,  the  tenant  of  the
Tumbleweed  restaurant in Chillicothe, Ohio filed for Chapter  11
bankruptcy reorganization.  Rents are current and the Partnership
expects  to  continue to receive all scheduled  rents  in  future
months unless the Lease is rejected by Tumbleweed.  If the  Lease
is  assumed, Tumbleweed must comply with all Lease terms.  If the
Lease  is  rejected,  Tumbleweed  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
associated  with  maintaining the property.  In  July  2009,  the
tenant contacted the Partnership and offered to assume the  Lease
and  extend the Lease term five years in exchange for a 15%  rent
reduction.  The Partnership accepted this offer and agreed  to  a
Lease  Amendment,  which  is subject to  court  approval  of  the
tenant's Plan of Reorganization.  At June 30, 2009, based on  the
proposed  rent reduction and an analysis of market conditions  in
the  area,  the  Partnership recognized a $110,000 adjustment  to
decrease the estimated net realizable value of the property.

       For the nine months ended September 30, 2009 and 2008, the
Partnership  recognized  adjustments  of  estimated   values   of
($124,243)   and   ($3,997,123),  respectively,  resulting   from
adopting  the  liquidation basis of accounting and recording  its
assets  at estimated net realizable value and liabilities at  the
amount estimated to be paid.

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

         Management  believes  inflation  has  not  significantly
affected  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

       In January 2009, the Managing General Partner solicited by
mail  a  proxy  statement  seeking the  consent  of  the  Limited
Partners,   as  required  by  Section  6.1  of  the   Partnership
Agreement,  to  initiate the final disposition,  liquidation  and
distribution  of all of the Partnership's properties  and  assets
within  the  next year.  On February 24, 2009, the  proposal  was
approved with a majority of Units voted in favor of the proposal.
As  a result, the Managing General Partner will proceed with  the
planned  liquidation  of  the Partnership.   At  this  time,  the
Partnership anticipates that it will sell its remaining  property
and liquidate prior to December 31, 2010.

        During the nine months ended September 30, 2009, while in
the   liquidation  phase,  the  Partnership's   Net   Assets   in
Liquidation decreased $231,941 as a result of distributions  paid
to  the  Partners  in  excess of cash  generated  from  operating
activities  and a decrease in the estimated net realizable  value
of  property.  During the nine months ended September  30,  2008,
while  in the liquidation phase, the Partnership's Net Assets  in
Liquidation decreased $3,509,211 as a result of distributions  of
net sale proceeds to the Partners.

        On  June  30,  2007,  the  Lease  term  expired  for  the
KinderCare 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.   While
the property was vacant, the Partnership was responsible for real
estate  taxes  and  other costs associated with  maintaining  the
property.   On  July 23, 2008, the Partnership sold  the  daycare
center to an unrelated third party.  The Partnership received net
sale  proceeds  of $549,943.  At the time of sale, the  estimated
net realizable value was $550,000.

        On  January 25, 2008, the Partnership sold the KinderCare
daycare center in Westerville, Ohio to an unrelated third  party.
The Partnership received net sale proceeds of $1,423,596.  At the
time of sale, the estimated net realizable value was $1,415,000.

        On  March  12, 2008, the Partnership sold the  KinderCare
daycare  center  in Columbus, Ohio to an unrelated  third  party.
The Partnership received net sale proceeds of $1,628,834.  At the
time of sale, the estimated net realizable value was $1,617,000.

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

       Subsequent to September 30, 2009, the Partnership sold its
remaining 9.3699% interest in the Taco Cabana restaurant  in  San
Antonio, Texas to the tenant.  The Partnership received net  sale
proceeds  of  approximately $158,000,  which  was  equal  to  the
property's  estimated net realizable value.  At  June  30,  2009,
based   on   the  signed  purchase  agreement,  the   Partnership
recognized  an  $18,000 adjustment to decrease the estimated  net
realizable value of the property.

       The Partnership's primary use of cash flow is distribution
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.

       For the nine months ended September 30, 2009 and 2008, the
Partnership  declared distributions of $128,788  and  $3,569,997,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions of $127,500 and $3,534,297 and the General Partners
received  distributions of $1,288 and $35,700  for  the  periods,
respectively.   In  March  and September  2008,  the  Partnership
declared special distributions of net sale proceeds of $2,828,283
and    $505,051,   respectively,   which   resulted   in   higher
distributions in 2008.

        During  the  first  nine months of  2009  and  2008,  the
Partnership  distributed  net  sale  proceeds  of  $103,939   and
$3,529,584 to the Limited and General Partners as part  of  their
quarterly distributions, which represented a return of capital of
$5.43 and $184.33 per Limited Partnership Unit, respectively.

       The continuing rent payments from the properties, together
with  the Partnership's cash reserve, should be adequate to  fund
continuing distributions and meet other Partnership obligations.

The Economy and Market Conditions

       The impact of conditions in the current economy, including
the  turmoil  in the credit markets, has adversely affected  many
real   estate  companies.   However,  the  absence  of   mortgage
financing on the Partnership's properties eliminates the risks of
foreclosure and debt-refinancing that can negatively  impact  the
value  and  distributions  of leveraged  real  estate  companies.
Nevertheless, a prolonged economic downturn may adversely  affect
the operations of the Partnership's tenants and their cash flows.
If  a  tenant  were  to  default on its  lease  obligations,  the
Partnership's  income  would decrease,  its  distributions  would
likely be reduced and the value of its properties might decline.

        Beginning in the fourth quarter of 2008, general economic
conditions   caused  the  volume  of  property  sales   to   slow
dramatically  for all real estate sellers.  These conditions  may
make  it more difficult for the Partnership to sell its remaining
properties  at acceptable prices, which it must do  in  order  to
complete its liquidation.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not required for a smaller reporting company.

ITEM 4.   CONTROLS AND PROCEDURES.

       (a)  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  our  disclosure
controls  and procedures (as defined in Rule 13a-15(e) under  the
Securities  Exchange  Act of 1934 (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, our disclosure controls  and
procedures  were effective in ensuring that information  required
to be disclosed by us in the reports that 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 Control Over Financial Reporting.

        During  the  most recent period covered by  this  report,
there  has  been no change in our internal control over financial
reporting  (as defined in Rule 13a-15(f) under the Exchange  Act)
that  has  materially  affected,  or  is  reasonably  likely   to
materially affect, our 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 1A.  RISK FACTORS.

       Not required for a smaller reporting company.


                   PART II - OTHER INFORMATION
                           (Continued)

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

       (a) None.

       (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 per Unit 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.

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

        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, the registrant has duly caused this report  to  be
signed   on   its  behalf  by  the  undersigned  thereunto   duly
authorized.


Dated:  November 10, 2009     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)