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

                           FORM 10-QSB

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

           For the Quarter Ended:  September 30, 2003

                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 September 30, 2003 and December 31, 2002

         Statements for the Periods ended September 30, 2003 and 2002:

           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

            SEPTEMBER 30, 2003 AND DECEMBER 31, 2002

                           (Unaudited)


                             ASSETS

                                                     2003            2002

CURRENT ASSETS:
  Cash and Cash Equivalents                      $ 5,935,778     $ 2,454,858
  Receivables                                              0           6,740
                                                  -----------     -----------
      Total Current Assets                         5,935,778       2,461,598
                                                  -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                             3,952,096       4,770,593
  Buildings and Equipment                          8,733,748       9,536,257
  Accumulated Depreciation                        (2,427,584)     (2,897,209)
                                                  -----------     -----------
      Net Investments in Real Estate              10,258,260      11,409,641
                                                  -----------     -----------
           Total  Assets                         $16,194,038     $13,871,239
                                                  ===========     ===========


                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    85,350     $   107,784
  Distributions Payable                              359,197         362,664
  Unearned Rent                                       33,248               0
                                                  -----------     -----------
      Total Current Liabilities                      477,795         470,448
                                                  -----------     -----------
PARTNERS' CAPITAL:
  General Partners                                    28,621           5,466
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Units Issued;
   19,580 and 19,656 Units outstanding
   in 2003 and 2002, respectively                 15,687,622      13,395,325
                                                  -----------     -----------
      Total Partners' Capital                     15,716,243      13,400,791
                                                  -----------     -----------
        Total Liabilities and Partners' Capital  $16,194,038     $13,871,239
                                                  ===========     ===========

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

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                             Three Months Ended         Nine Months Ended
                            9/30/03      9/30/02      9/30/03       9/30/02

RENTAL INCOME               $ 362,604   $ 363,633   $1,023,451   $1,089,328

EXPENSES:
   Partnership Administration -
     Affiliates                58,715      51,937      164,582      189,037
   Partnership Administration
     and Property Management -
     Unrelated Parties          5,867      11,365       23,537       30,846
   Depreciation                61,489      62,355      169,268      189,664
                             ---------   ---------   ----------   ----------
       Total Expenses         126,071     125,657      357,387      409,547
                             ---------   ---------   ----------   ----------

OPERATING INCOME              236,533     237,976      666,064      679,781
OTHER INCOME:
   Interest Income             27,099       3,540       61,818        9,786
   Gain on Sale of Real Estate      0      65,528      286,861       65,528
                             ---------   ---------   ----------   ----------
        Total Other Income     27,099      69,068      348,679       75,314
                             ---------   ---------   ----------   ----------
INCOME FROM CONTINUING
   OPERATIONS                 263,632     307,044    1,014,743      755,095

Income from Discontinued
 Operations                   466,811      91,323    2,688,337      286,532
                             ---------   ---------   ----------   ----------
NET INCOME                  $ 730,443   $ 398,367   $3,703,080   $1,041,627
                             =========   =========   ==========   ==========

NET INCOME ALLOCATED:
   General Partners         $   7,305   $   6,185   $   37,031   $   12,618
   Limited Partners           723,138     392,182    3,666,049    1,029,009
                             ---------   ---------   ----------   ----------
                            $ 730,443   $ 398,367   $3,703,080   $1,041,627
                             =========   =========   ==========   ==========
INCOME PER LIMITED PARTNERSHIP UNIT:
   Continuing Operations    $   13.33   $   15.27   $    51.22   $    37.70
   Discontinued Operations      23.60        4.57       135.68        14.34
                             ---------   ---------   ----------   ----------
        Total               $   36.93   $   19.84   $   186.90   $    52.04
                             =========   =========   ==========   ==========
Weighted Average Units
  Outstanding                  19,580      19,769       19,615       19,775
                             =========   =========   ==========   ==========

 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 SEPTEMBER 30

                           (Unaudited)

                                                    2003            2002

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                  $ 3,703,080     $ 1,041,627

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                   198,860         253,323
     Gain on Sale of Real Estate                 (2,839,379)        (65,528)
     (Increase) Decrease in Receivables               6,740          (1,294)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                   (22,434)         23,199
     Increase in Unearned Rent                       33,248          55,488
                                                 -----------     -----------
        Total Adjustments                        (2,622,965)        265,188
                                                 -----------     -----------
        Net Cash Provided By
           Operating Activities                   1,080,115       1,306,815
                                                 -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Investments in Real Estate                  (3,002,399)              0
     Proceeds from Sale of Real Estate            6,794,299         164,858
                                                 -----------     -----------
        Net Cash Provided By
           Investing Activities                   3,791,900         164,858
                                                 -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable                 (3,467)         (2,532)
   Distributions to Partners                     (1,318,416)     (1,124,067)
   Redemption Payments                              (69,212)        (74,421)
                                                 -----------     -----------
        Net Cash Used For
           Financing Activities                  (1,391,095)     (1,201,020)
                                                 -----------     -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS         3,480,920         270,653

CASH AND CASH EQUIVALENTS, beginning of period    2,454,858         938,698
                                                 -----------     -----------
CASH AND CASH EQUIVALENTS, end of period        $ 5,935,778     $ 1,209,351
                                                 ===========     ===========

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

            STATEMENT OF CHANGES IN PARTNERS' CAPITAL

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)



                                                                     Limited
                                                                   Partnership
                              General     Limited                     Units
                              Partners    Partners      Total      Outstanding


BALANCE, December 31, 2001  $      0    $13,183,466  $13,183,466    19,849.85

  Distributions              (11,241)    (1,112,826)  (1,124,067)

  Redemption Payments           (744)       (73,677)     (74,421)      (81.17)

  Net Income                  12,618      1,029,009    1,041,627
                             --------    -----------  -----------  -----------
BALANCE, September 30, 2002 $    633    $13,025,972  $13,026,605    19,768.68
                             ========    ===========  ===========  ===========


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

  Distributions              (13,184)    (1,305,232)  (1,318,416)

  Redemption Payments           (692)       (68,520)     (69,212)      (75.60)

  Net Income                  37,031      3,666,049    3,703,080
                             --------    -----------  -----------  -----------
BALANCE, September 30, 2003 $ 28,621    $15,687,622  $15,716,243    19,580.08
                             ========    ===========  ===========  ===========

 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, 2003

                           (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 of  AFM,
     serves as the Individual General Partner and an affiliate of
     AFM,   AEI   Fund  Management,  Inc.  (AEI),  performs   the
     administrative and operating functions for the Partnership.

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

                       SEPTEMBER 30, 2003
                           (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 1% 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

                       SEPTEMBER 30, 2003
                           (Continued)

(3)  Summary of Real Estate Accounting Policies -

     The  Partnership's real estate is leased  under  triple  net
     leases  classified as operating leases.  The leases  provide
     for   base   annual  rental  payments  payable  in   monthly
     installments.   The  Partnership recognizes  rental  revenue
     according to the terms of the individual leases.  For leases
     which  contain  stated rental increases, the  increases  are
     recognized   in  the  year  in  which  they  are  effective.
     Contingent   rental   payments  are  recognized   when   the
     contingencies on which the payments are based are  satisfied
     and  the rental payments become due under the terms  of  the
     leases.

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

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

     The   buildings   and  equipment  of  the  Partnership   are
     depreciated  using  the straight-line method  for  financial
     reporting  purposes based on estimated useful  lives  of  30
     years and 10 years, respectively.

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

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

(4)  Reclassification -

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


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003
                           (Continued)

(5)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     through triple net leases, which are classified as operating
     leases.  Under a triple net lease, the lessee is responsible
     for  all  real estate taxes, insurance, maintenance, repairs
     and  operating  expenses of the property.   Certain  lessees
     have  been  granted options to purchase the  property  at  a
     formula  price.  In many of the leases, the option price  is
     stated  to  be  the greater of the price determined  by  the
     stated  formula or the fair market value of the property  as
     agreed   upon  by  the  parties  or  determined   based   on
     appraisals.  In general, the formula price is determined  in
     one  of two ways.  Under the first, the option price is  the
     original  purchase  price  of the property  increased  by  a
     specified  percentage per year, compounded annually.   Under
     the  second, the option price is determined by dividing  the
     annual rent at the time the purchase option is exercised  by
     a  percentage.  Based on the scheduled annual rent under the
     lease,  the  resulting option price would always be  greater
     than the original purchase price.  The actual sale price  of
     a  property to a lessee may or may not exceed original  cost
     depending on market and other conditions.

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

     Through March 31, 2003, the Partnership sold 99.2394% of the
     Fuddruckers  restaurant, in eight separate transactions,  to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $1,989,027, which resulted in a net gain of
     $771,290.    The   total   cost  and   related   accumulated
     depreciation  of  the  interests  sold  was  $1,395,078  and
     $177,341, respectively.  For the nine months ended September
     30,  2003  and  2002,  the net gain was $286,861  and  $-0-,
     respectively.

     In  May  2003, the Partnership entered into an agreement  to
     sell  a Taco Cabana restaurant in San Antonio, Texas to  the
     lessee.  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 $1,737,000,
     which will result in a net gain of approximately $572,000.

     Subsequent  to  September 30, 2003, the Partnership  entered
     into an agreement to sell the Cheddar's restaurant in Clive,
     Iowa  to  an unrelated third party.  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 $2,100,000, which will result in a net gain
     of approximately $1,192,000.

     During  the  first  nine  months  of  2003  and  2002,   the
     Partnership  distributed $287,767 and $34,998  of  net  sale
     proceeds  to  the Limited and General Partners  as  part  of
     their quarterly distributions, which represented a return of
     capital  of  $14.52 and $1.75 per Limited Partnership  Unit,
     respectively.  The remaining net sale proceeds  will  either
     be  reinvested in additional property or distributed to  the
     Partners in the future.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2003
                           (Continued)

(5)  Investments in Real Estate - (Continued)

     On  April  3, 2003, the Partnership purchased a 50% interest
     in  a parcel of land in Mansfield, Texas for $383,000.   The
     Partnership  obtained title to the land in the  form  of  an
     undivided fee simple interest in the 50% interest purchased.
     The  land  is  leased to Kona Restaurant Group,  Inc.  (KRG)
     under a Lease Agreement with a primary term of 17 years  and
     annual rental payments of $38,300.  Simultaneously with  the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     advanced  funds  to  KRG for the construction  of  a  Johnny
     Carino's restaurant on the site. Pursuant to the Lease,  any
     improvements to the land during the term of the Lease become
     the   property  of  the  lessor.   The  Partnership  charged
     interest  on the advances at a rate of 10.0%.  On  September
     3,  2003,  after  the development was completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $103,250.   The  Partnership's share of the  total  purchase
     price, including the cost of the land, was $1,028,422.   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
     $1,973,977.  The property is leased to Cypress/GR  Woodlands
     I,  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.

     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  November
     30, 2003 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.
     Due  to this notification, the Partnership is evaluating the
     lease  and  property  value  and  has  decided  that  it  is
     premature to recognize an impairment loss at this time.   It
     is  reasonably possible that this decision may change in the
     future.   At  September  30, 2003, the  book  value  of  the
     Razzoo's property owned by the Partnership is $856,781.


(6)  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

                       SEPTEMBER 30, 2003
                           (Continued)

(7)  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 40.0% 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  38.0%  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.

     The financial results for these properties are reflected  as
     Discontinued   Operations  in  the  accompanying   financial
     statements.  The results of discontinued operations  are  as
     follows:


                                Three Months Ended       Nine Months Ended
                                 9/30/03    9/30/02    9/30/03      9/30/02

Rental Income                  $  4,606    $119,850   $  166,929    $358,608
Property Management Expenses       (535)     (7,308)      (1,518)     (8,417)
Depreciation                       (659)    (21,219)     (29,592)    (63,659)
Gain on Disposal of Real Estate 463,399           0    2,552,518           0
                                --------    --------   ----------    -------
  Income from Discontinued
    Operations                 $466,811    $ 91,323   $2,688,337    $286,532
                                ========    ========   ==========    =======


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 nine months ended September 30, 2003 and 2002, the
Partnership  recognized rental income from continuing  operations
of  $1,023,451  and $1,089,328, respectively.   In  2003,  rental
income   decreased  mainly  due  to  sales  of  the   Fuddruckers
restaurant  and  the  Champps Americana restaurant  in  Columbus,
Ohio.   This  decrease in rental income was partially  offset  by
additional rent received from two property acquisitions  in  2003
and rent increases on ten properties.

       For the nine months ended September 30, 2003 and 2002, the
Partnership  incurred  Partnership administration  expenses  from
affiliated parties of $164,582 and $189,037, 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  $23,537 and $30,846, 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.

       For the nine months ended September 30, 2003 and 2002, the
Partnership  recognized interest income of  $61,818  and  $9,786,
respectively.   In  2003, interest income increased  due  to  the
Partnership  receiving  interest from construction  advances  and
having  more  money  invested in a money market  account  due  to
property sales.

       For the nine months ended September 30, 2003 and 2002, the
Partnership   recognized  gain  on  sale  of  real  estate   from
continuing operations of $286,861 and $65,528, respectively, from
the  sale  of two properties.  Since the Partnership  retains  an
ownership interest in these properties, the operating results and
gain   on   sale  of  the  properties  were  not  classified   as
discontinued operations.

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

        Through March 31, 2003, the Partnership sold 99.2394%  of
the  Fuddruckers  restaurant, in eight separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds of $1,989,027, which resulted in a net gain of $771,290.
The  total  cost  and  related accumulated  depreciation  of  the
interests  sold  was $1,395,078 and $177,341, respectively.   For
the  nine months ended September 30, 2003 and 2002, the net  gain
was $286,861 and $-0-, respectively.

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

        In May 2003, the Partnership entered into an Agreement to
sell  a  Taco  Cabana  restaurant in San Antonio,  Texas  to  the
lessee.   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 $1,737,000,  which  will
result in a net gain of approximately $572,000.

        Subsequent to September 30, 2003, the Partnership entered
into an agreement to sell the Cheddar's restaurant in Clive, Iowa
to   an   unrelated  third  party.   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  $2,100,000, which will result in  a  net  gain  of
approximately $1,192,000.

        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  November  30,
2003  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.   Due  to  this
notification,  the  Partnership  is  evaluating  the  lease   and
property  value and has decided that it is premature to recognize
an  impairment loss at this time.  It is reasonably possible that
this  decision may change in the future.  At September 30,  2003,
the  book value of the Razzoo's property owned by the Partnership
is $856,781.

        In  accordance  with  Statement of  Financial  Accounting
Standards  No. 144, Accounting for the Impairment or Disposal  of
Long-Lived  Assets,  upon  complete disposal  of  a  property  or
classification of a property as Real Estate Held  for  Sale,  the
Partnership  includes  the operating  results  and  sale  of  the
property   in   discontinued  operations.    In   addition,   the
Partnership reclassifies the prior periods operating results  and
any  partial  sales  of the property to discontinued  operations.
For  the  nine  months ended September 30, 2003, the  Partnership
recognized  income  from discontinued operations  of  $2,688,337,
representing rental income less property management expenses  and
depreciation of $135,819 and gain on disposal of real  estate  of
$2,552,518.   For the nine months ended September 30,  2002,  the
Partnership  recognized  income from discontinued  operations  of
$286,532,  representing  rental income less  property  management
expenses and depreciation.

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

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

        On  May 15, 2003, the Partnership sold its 40.0% 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.


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

       During the first nine months of 2003, the Partnership sold
its  38.0%  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.

        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  nine months ended September  30,  2003,  the
Partnership's cash balances increased $3,480,920 as a  result  of
cash  generated  from the sale of property, which  was  partially
offset  by cash used to purchase property and distributions  paid
to  the  Partners  in  excess of cash  generated  from  operating
activities.  During the nine months ended September 30, 2002, the
Partnership's  cash balances increased $270,653 as  a  result  of
cash  generated  from  the sale of property and  the  Partnership
distributed  less  cash to the Partners than  it  generated  from
operating activities.

        Net  cash provided by operating activities decreased from
$1,306,815  in  2002  to $1,080,115 in 2003  as  a  result  of  a
decrease  in  total rental and interest income in  2003  and  net
timing differences in the collection of payments from the lessees
and  the  payment of expenses, which were partially offset  by  a
decrease in Partnership administration expenses in 2003.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
form  the  sale  of  real estate.  During the nine  months  ended
September  30,  2003  and  September 30,  2002,  the  Partnership
generated  cash flow from the sale of real estate  of  $6,794,299
and   $164,858,  respectively.   During  the  nine  months  ended
September 30, 2003, the Partnership expended $3,002,399 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  10.0%.
On  September  3, 2003, after the development was completed,  the
Lease Agreement was amended to require annual rental payments  of
$103,250.   The Partnership's share of the total purchase  price,
including  the  cost of the land, was $1,028,422.  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
$1,973,977.   The property is leased to Cypress/GR  Woodlands  I,
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.

        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 nine months ended September 30, 2003 and 2002, the
Partnership  declared distributions of $1,318,416 and $1,124,067,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions  of  $1,305,232  and  $1,112,826  and  the  General
Partners  received distributions of $13,184 and $11,241  for  the
periods, respectively.  In March 2003, the Partnership declared a
bonus  distribution  of  $202,020 of  net  sale  proceeds,  which
resulted in higher distributions in 2003, when compared to 2002.

        During  the  first  nine months of  2003  and  2002,  the
Partnership distributed $287,767 and $34,998 of net sale proceeds
to  the  Limited and General Partners as part of their  quarterly
distributions,  which represented a return of capital  of  $14.52
and  $1.75  per  Limited  Partnership  Unit,  respectively.   The
remaining  net  sale  proceeds  will  either  be  reinvested   in
additional property or distributed to the Partners in the future.

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

        On January 1, 2003, two Limited Partners redeemed a total
of  18.0  Partnership  Units for $16,387 in accordance  with  the
Partnership  Agreement.  On April 1, 2003,  one  Limited  Partner
redeemed 11.0 Partnership Units for $9,999.  On July 1, 2003, six
Limited Partners redeemed a total of 46.6 Units for $42,134.  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.

       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.

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.


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                             Description

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

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

    10.3  First  Amendment to Net Lease Agreement  dated  September
          3,  2003  between  the  Partnership, AEI Real Estate Fund
          XVII Limited  Partnership and Kona Restaurant Group, Inc.
          relating to the Property at 960 N.Highway 287, Mansfield,
          Texas.

    10.4  Purchase  Agreement dated October 15,  2003  between  the
          Partnership  and  Steward  Real   Estate   Services,  LLC
          relating to the Property at 1301 N.W. 114th Street, Clive,
          Iowa.

    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
                                        September  30,  2003,  the
                                        Partnership filed  a  Form
                                        8-K dated September 6,2003
                                        reporting  the acquisition
                                        of a Garden  Ridge  retail
                                        store in Woodlands, Texas.




                           SIGNATURES

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


Dated:  November 11, 2003     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)