Attached files

file filename
EX-32 - AEI INCOME & GROWTH FUND 24 LLCex32-24.htm
EX-31.2 - AEI INCOME & GROWTH FUND 24 LLCex31-224.htm
EX-31.1 - AEI INCOME & GROWTH FUND 24 LLCex31-124.htm
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:  June 30, 2017

Commission File Number:  000-49653

AEI INCOME & GROWTH FUND 24 LLC
(Exact name of registrant as specified in its charter)

State of Delaware
 
41-1990952
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
     
30 East 7th Street, Suite 1300
St. Paul, Minnesota 55101
 
(651) 227-7333
(Address of principal executive offices)
 
(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.     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 reporting company
Emerging growth company
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

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



AEI INCOME & GROWTH FUND 24 LLC

INDEX


   
Page
Part I – Financial Information
 
       
 
Item 1.
Financial Statements:
 
       
   
Balance Sheets as of June 30, 2017 and December 31, 2016
3
       
   
Statements for the Periods ended June 30, 2017 and 2016:
 
         
     
Income
4
         
     
Cash Flows
5
         
     
Changes in Members' Equity (Deficit)
6
         
   
Notes to Financial Statements
7 - 9
       
 
Item 2.
Management's Discussion and Analysis of Financial
 
     
Condition and Results of Operations
10 - 14
       
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
14
       
 
Item 4.
Controls and Procedures
14
       
Part II – Other Information
 
       
 
Item 1.
Legal Proceedings
14
       
 
Item 1A.
Risk Factors
14
       
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
15
       
 
Item 3.
Defaults Upon Senior Securities
15
       
 
Item 4.
Mine Safety Disclosures
15
       
 
Item 5.
Other Information
15
       
 
Item 6.
Exhibits
16
       
Signatures
16

Page 2 of 16

AEI INCOME & GROWTH FUND 24 LLC
BALANCE SHEETS

ASSETS

   
June 30,
   
December 31,
 
   
2017
   
2016
 
   
(unaudited)
       
Current Assets:
           
Cash
 
$
1,283,880
   
$
1,320,236
 
                 
Real Estate Investments:
               
Land
   
4,934,814
     
4,934,814
 
Buildings
   
12,213,592
     
12,175,342
 
Acquired Intangible Lease Assets
   
1,207,484
     
1,207,484
 
Real Estate Held for Investment, at cost
   
18,355,890
     
18,317,640
 
Accumulated Depreciation and Amortization
   
(4,364,387
)
   
(4,058,525
)
Real Estate Held for Investment, Net
   
13,991,503
     
14,259,115
 
Total Assets
 
$
15,275,383
   
$
15,579,351
 

LIABILITIES AND MEMBERS' EQUITY

Current Liabilities:
           
Payable to AEI Fund Management, Inc.
 
$
95,911
   
$
66,539
 
Distributions Payable
   
306,275
     
308,862
 
Unearned Rent
   
53,061
     
9,620
 
Total Current Liabilities
   
455,247
     
385,021
 
                 
Members' Equity (Deficit):
               
Managing Members
   
(45,518
)
   
(35,707
)
Limited Members – 50,000 Units authorized;
   23,806 and 23,928 Units issued and outstanding
   as of 6/30/17 and 12/31/16, respectively
   
14,865,654
     
15,230,037
 
Total Members' Equity
   
14,820,136
     
15,194,330
 
Total Liabilities and Members' Equity
 
$
15,275,383
   
$
15,579,351
 







The accompanying Notes to Financial Statements are an integral part of these statements.
Page 3 of 16

AEI INCOME & GROWTH FUND 24 LLC
STATEMENTS OF INCOME
(unaudited)


   
Three Months Ended June 30
   
Six Months Ended June 30
 
   
2017
   
2016
   
2017
   
2016
 
                         
Rental Income
 
$
348,554
   
$
343,592
   
$
696,511
   
$
686,228
 
                                 
Expenses:
                               
LLC Administration – Affiliates
   
37,980
     
45,957
     
81,853
     
91,084
 
LLC Administration and Property
   Management – Unrelated Parties
   
1,538
     
14,644
     
16,861
     
27,268
 
Depreciation and Amortization
   
141,347
     
141,347
     
282,694
     
282,694
 
Total Expenses
   
180,865
     
201,948
     
381,408
     
401,046
 
                                 
Operating Income
   
167,689
     
141,644
     
315,103
     
285,182
 
                                 
Other Income:
                               
Interest Income
   
880
     
949
     
1,795
     
1,927
 
                                 
Net Income
 
$
168,569
   
$
142,593
   
$
316,898
   
$
287,109
 
                                 
Net Income Allocated:
                               
Managing Members
 
$
5,057
   
$
4,278
   
$
9,507
   
$
8,613
 
Limited Members
   
163,512
     
138,315
     
307,391
     
278,496
 
Total
 
$
168,569
   
$
142,593
   
$
316,898
   
$
287,109
 
                                 
Net Income per LLC Unit
 
$
6.87
   
$
5.77
   
$
12.88
   
$
11.60
 
                                 
Weighted Average Units Outstanding –
      Basic and Diluted
   
23,806
     
23,958
     
23,867
     
24,018
 
                                 










The accompanying Notes to Financial Statements are an integral part of these statements.
Page 4 of 16

AEI INCOME & GROWTH FUND 24 LLC
STATEMENTS OF CASH FLOWS
(unaudited)


   
Six Months Ended June 30
 
   
2017
   
2016
 
Cash Flows from Operating Activities:
           
Net Income
 
$
316,898
   
$
287,109
 
                 
Adjustments to Reconcile Net Income
To Net Cash Provided by Operating Activities:
               
Depreciation and Amortization
   
305,862
     
305,862
 
Increase (Decrease) in Payable to
   AEI Fund Management, Inc.
   
29,372
     
1,178
 
Increase (Decrease) in Unearned Rent
   
43,441
     
43,242
 
Total Adjustments
   
378,675
     
350,282
 
Net Cash Provided By (Used For)
   Operating Activities
   
695,573
     
637,391
 
                 
Cash Flows from Investing Activities:
               
Investments in Real Estate
   
(38,250
)
   
0
 
Payments Received on Note Receivable
   
0
     
50,826
 
Net Cash Provided By (Used For)
   Investing Activities
   
(38,250
)
   
50,826
 
                 
Cash Flows from Financing Activities:
               
Distributions Paid to Members
   
(618,140
)
   
(615,850
)
Repurchase of LLC Units
   
(75,539
)
   
(78,493
)
Net Cash Provided By (Used For)
   Financing Activities
   
(693,679
)
   
(694,343
)
                 
Net Increase (Decrease) in Cash
   
(36,356
)
   
(6,126
)
                 
Cash, beginning of period
   
1,320,236
     
1,406,324
 
                 
Cash, end of period
 
$
1,283,880
   
$
1,400,198
 
                 




The accompanying Notes to Financial Statements are an integral part of these statements.
Page 5 of 16

AEI INCOME & GROWTH FUND 24 LLC
STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT)
(unaudited)


   
Managing Members
   
Limited Members
   
Total
   
Limited Member Units Outstanding
 
                         
Balance, December 31, 2015
 
$
(16,248
)
 
$
15,933,297
   
$
15,917,049
     
24,077.98
 
                                 
Distributions Declared
   
(16,683
)
   
(600,001
)
   
(616,684
)
       
                                 
Repurchase of LLC Units
   
(2,355
)
   
(76,138
)
   
(78,493
)
   
(119.50
)
                                 
Net Income
   
8,613
     
278,496
     
287,109
         
                                 
Balance, June 30, 2016
 
$
(26,673
)
 
$
15,535,654
   
$
15,508,981
     
23,958.48
 
                                 
                                 
Balance, December 31, 2016
 
$
(35,707
)
 
$
15,230,037
   
$
15,194,330
     
23,928.48
 
                                 
Distributions Declared
   
(17,052
)
   
(598,501
)
   
(615,553
)
       
                                 
Repurchase of LLC Units
   
(2,266
)
   
(73,273
)
   
(75,539
)
   
(122.40
)
                                 
Net Income
   
9,507
     
307,391
     
316,898
         
                                 
Balance, June 30, 2017
 
$
(45,518
)
 
$
14,865,654
   
$
14,820,136
     
23,806.08
 
                                 
















The accompanying Notes to Financial Statements are an integral part of these statements.
Page 6 of 16

AEI INCOME & GROWTH FUND 24 LLC
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2017
(unaudited)

(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 United States Generally Accepted Accounting Principles (US GAAP) 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 Income & Growth Fund 24 LLC ("Company"), a Limited Liability Company, was formed on November 21, 2000 to acquire and lease commercial properties to operating tenants.  The Company's operations are managed by AEI Fund Management XXI, Inc. ("AFM"), the Managing Member.  Robert P. Johnson, the President and sole director of AFM, serves as the Special Managing Member.  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 Company.

The terms of the offering called for a subscription price of $1,000 per LLC Unit, payable on acceptance of the offer.  The Company commenced operations on October 31, 2001 when minimum subscriptions of 1,500 LLC Units ($1,500,000) were accepted.  The offering terminated May 17, 2003 when the extended offering period expired.  The Company received subscriptions for 24,831.283 Units.  Under the terms of the Operating Agreement, the Limited Members and Managing Members contributed funds of $24,831,283 and $1,000, respectively.  The Company shall continue until December 31, 2051, unless dissolved, terminated and liquidated prior to that date.

During operations, any Net Cash Flow, as defined, which the Managing Members determine to distribute will be distributed 97% to the Limited Members and 3% to the Managing Members.  Distributions to Limited Members will be made pro rata by Units.

Page 7 of 16

AEI INCOME & GROWTH FUND 24 LLC
NOTES TO FINANCIAL STATEMENTS
(Continued)

(2)  Organization – (Continued)

Any Net Proceeds of Sale, as defined, from the sale or financing of properties which the Managing Members determine to distribute will, after provisions for debts and reserves, be paid in the following manner: (i) first, 99% to the Limited Members and 1% to the Managing Members until the Limited Members receive an amount equal to: (a) their Adjusted Capital Contribution plus (b) an amount equal to 7% of their Adjusted Capital Contribution per annum, cumulative but not compounded, to the extent not previously distributed from Net Cash Flow; (ii) any remaining balance will be distributed 90% to the Limited Members and 10% to the Managing Members.  Distributions to the Limited Members 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 97% to the Limited Members and 3% to the Managing Members.  Net losses from operations will be allocated 99% to the Limited Members and 1% to the Managing Members.

For tax purposes, profits arising from the sale, financing, or other disposition of property will be allocated in accordance with the Operating Agreement as follows: (i) first, to those Members with deficit balances in their capital accounts in an amount equal to the sum of such deficit balances; (ii) second, 99% to the Limited Members and 1% to the Managing Members until the aggregate balance in the Limited Members' capital accounts equals the sum of the Limited Members' Adjusted Capital Contributions plus an amount equal to 7% of their Adjusted Capital Contributions per annum, cumulative but not compounded, to the extent not previously allocated; (iii) third, the balance of any remaining gain will then be allocated 90% to the Limited Members and 10% to the Managing Members.  Losses will be allocated 99% to the Limited Members and 1% to the Managing Members.

The Managing Members are not required to currently fund a deficit capital balance.  Upon liquidation of the Company or withdrawal by a Managing Member, the Managing Members will contribute to the Company an amount equal to the lesser of the deficit balances in their capital accounts or 1.01% of the total capital contributions of the Limited Members over the amount previously contributed by the Managing Members.

(3)  Real Estate Investments –

In April 2017, the Company entered into an agreement with the tenant of the Fresenius Medical Center in Shreveport, Louisiana to extend the lease term nine years to expire on June 30, 2027.  The annual rent will remain the same throughout the remainder of the extended lease term.  As part of the agreement, the Company paid a tenant improvement allowance of $38,250 that was capitalized and will be depreciated.

Page 8 of 16

AEI INCOME & GROWTH FUND 24 LLC
NOTES TO FINANCIAL STATEMENTS
(Continued)

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

AEI Fund Management, Inc. performs the administrative and operating functions for the Company.  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)  Members' Capital –

For the six months ended June 30, 2017 and 2016, the Company declared distributions of $615,553 and $616,684, respectively.  The Limited Members received distributions of $598,501 and $600,001 and the Managing Members received distributions of $17,052 and $16,683 for the periods, respectively.  The Limited Members' distributions represented $25.08 and $24.98 per LLC Unit outstanding using 23,867 and 24,018 weighted average Units in 2017 and 2016, respectively.  The distributions represented $9.80 and $8.42 per Unit of Net Income and $15.28 and $16.56 per Unit of return of contributed capital in 2017 and 2016, respectively.

As part of the distributions discussed above, the Company distributed net sale proceeds (from property sales completed in 2014) of $70,707 and $90,909 in 2017 and 2016, respectively.  The Limited Members received distributions of $70,000 and $90,000 and the Managing Members received distributions of $707 and $909 for the periods, respectively.  The Limited Members' distributions represented $2.94 and $3.76 per Unit for the periods, respectively.

On April 1, 2017, the Company repurchased a total of 122.40 Units for $73,273 from five Limited Members in accordance with the Operating Agreement.  On April 1, 2016, the Company repurchased a total of 119.50 Units for $76,138 from two Limited Members.  The Company acquired these Units using Net Cash Flow from operations.  The repurchases increase the remaining Limited Members' ownership interest in the Company.  As a result of these repurchases and pursuant to the Operating Agreement, the Managing Members received distributions of $2,266 and $2,355 in 2017 and 2016, respectively.

(6)  Fair Value Measurements –

As of June 30, 2017 and December 31, 2016, the Company had no assets or liabilities measured at fair value on a recurring basis or nonrecurring basis.

Page 9 of 16

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 Company's financial condition and results of operations, including the following:

Market and economic conditions which affect the value of the properties the Company 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 Members;
resolution by the Managing Members of conflicts with which they may be confronted;
the success of the Managing Members 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 Company operate.

Application of Critical Accounting Policies

The Company's financial statements have been prepared in accordance with US GAAP.  Preparing the financial statements requires management to use judgment in the application of these accounting policies, including making estimates and assumptions.  These judgments will affect the reported amounts of the Company's assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and will affect the reported amounts of revenue and expenses during the reporting periods.  It is possible that the carrying amount of the Company's assets and liabilities, or the results of reported operations, will be affected if management's estimates or assumptions prove inaccurate.

Management of the Company evaluates the following accounting estimates on an ongoing basis, and has discussed the development and selection of these estimates and the management discussion and analysis disclosures regarding them with the managing member of the Company.

Allocation of Purchase Price of Acquired Properties

Upon acquisition of real properties, the Company records them in the financial statements at cost.  The purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases.  The allocation of the purchase price is based upon the fair value of each component of the property.  Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management's assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset.

Page 10 of 16

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

The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods.  The above market and below market lease values will be capitalized as intangible lease assets or liabilities.  Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases.  Below market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods.  If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income.

The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease.  Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management's consideration of current market costs to execute a similar lease.  These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases.  The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease.  These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases.  If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The determination of the fair values of the assets and liabilities acquired will require the use of significant assumptions with regard to the current market rental rates, rental growth rates, discount and capitalization rates, interest rates and other variables.  If management's estimates or assumptions prove inaccurate, the result would be an inaccurate allocation of purchase price, which could impact the amount of reported net income.

Carrying Value of Properties

Properties are carried at original cost, less accumulated depreciation and amortization. The Company tests long-lived assets for recoverability when events or changes in circumstances indicate that the carrying value may not be recoverable.  For properties the Company will hold and operate, management determines whether impairment has occurred by comparing the property's probability-weighted future undiscounted 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 net realizable value, an impairment loss is recorded to reduce the carrying value of the property to its net realizable value.  Changes in these assumptions or analysis may cause material changes in the carrying value of the properties.

Page 11 of 16

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

Allocation of Expenses

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 Company reimburses these expenses subject to detailed limitations contained in the Operating Agreement.

Results of Operations

For the six months ended June 30, 2017 and 2016, the Company recognized rental income of $696,511 and $686,228, respectively.  In 2017, rental income increased due to rent increases on three properties.  Based on the scheduled rent for the properties as of July 31, 2017, the Company expects to recognize rental income of approximately $1,394,000 in 2017.

For the six months ended June 30, 2017 and 2016, the Company incurred LLC administration expenses from affiliated parties of $81,853 and $91,084, respectively.  These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Members.  During the same periods, the Company incurred LLC administration and property management expenses from unrelated parties of $16,861 and $27,268, respectively.  These expenses represent direct payments to third parties for legal and filing fees, direct administrative costs, outside audit costs, taxes, insurance and other property costs.

For the six months ended June 30, 2017 and 2016, the Company recognized interest income of $1,795 and $1,927, respectively.

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

During the six months ended June 30, 2017, the Company's cash balances decreased $36,356 mainly as a result of cash paid for a tenant improvement allowance.  During the six months ended June 30, 2016, the Company's cash balances decreased $6,126 as a result of distributions paid to the Members and cash used to repurchase Units in excess of cash generated from operating activities, which was partially offset by a payment received on a note receivable.

Page 12 of 16

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

Net cash provided by operating activities increased from $637,391 in 2016 to $695,573 in 2017 as a result of an increase in total rental and interest income in 2017, a decrease in LLC administration and property management expenses in 2017 and net timing differences in the collection of payments from the tenants and the payment of expenses.

The Company's primary use of cash flow, other than investment in real estate, is distribution payments to Members and cash used to repurchase Units.  The Company 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 Company attempts to maintain a stable distribution rate from quarter to quarter.  The Company may repurchase tendered Units on April 1st and October 1st of each year subject to limitations.

For the six months ended June 30, 2017 and 2016, the Company declared distributions of $615,533 and $616,684, respectively.  Pursuant to the Operating Agreement, distributions of Net Cash Flow were allocated 97% to the Limited Members and 3% to the Managing Members.  Distributions of Net Proceeds of Sale were allocated 99% to the Limited Members and 1% to the Managing Members.  The Limited Members received distributions of $598,501 and $600,001 and the Managing Members received distributions of $17,052 and $16,683 for the periods, respectively.

As part of the distributions discussed above, the Company distributed net sale proceeds (from property sales completed in 2014) of $70,707 and $90,909 in 2017 and 2016, respectively.  The Limited Members received distributions of $70,000 and $90,000 and the Managing Members received distributions of $707 and $909 for the periods, respectively.  The Limited Members' distributions represented $2.94 and $3.76 per Unit for the periods, respectively.

The Company may repurchase Units from Limited Members who have tendered their Units to the Company.  Such Units may be acquired at a discount.  The Company will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Operating Agreement), would exceed 2% of the total number of Units outstanding on January 1 of such year.  In no event shall the Company be obligated to purchase Units if, in the sole discretion of the Managing Member, such purchase would impair the capital or operation of the Company.

On April 1, 2017, the Company repurchased a total of 122.40 Units for $73,273 from five Limited Members in accordance with the Operating Agreement.  On April 1, 2016, the Company repurchased a total of 119.50 Units for $76,138 from two Limited Members.  The Company acquired these Units using Net Cash Flow from operations.  The repurchases increase the remaining Limited Members' ownership interest in the Company.  As a result of these repurchases and pursuant to the Operating Agreement, the Managing Members received distributions of $2,266 and $2,355 in 2017 and 2016, respectively.

The continuing rent payments from the properties, together with cash generated from property sales, should be adequate to fund continuing distributions and meet other Company obligations on both a short-term and long-term basis.
Page 13 of 16

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

Off-Balance Sheet Arrangements

As of June 30, 2017 and December 31, 2016, the Company had no material off-balance sheet arrangements that had or are reasonably likely to have current or future effects on its financial condition, results of operations, liquidity or capital resources.

ITEM 3.  QUANTITATIVE & 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 Member of the Company 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 Member 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 Member, 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 Company is a party or of which the Company's property is subject.

ITEM 1A.  RISK FACTORS.

Not required for a smaller reporting company.

Page 14 of 16

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

(a) None.

(b) Not applicable.

(c) Pursuant to Section 7.7 of the Operating Agreement, each Limited Member has the right to present Units to the Company for purchase by submitting notice to the Managing Member during January or July of each year.  The purchase price of the Units is equal to 80% of the net asset value per Unit, as of the first business day of January or July of each year, as determined by the Managing Member in accordance with the provisions of the Operating Agreement.  Units tendered to the Company during January and July may be repurchased on April 1st and October 1st, respectively, of each year subject to the following limitations.  The Company will not be obligated to purchase in any year any number of Units that, when aggregated with all other transfers of Units that have occurred since the beginning of the same calendar year (excluding Permitted Transfers as defined in the Operating Agreement), would exceed 2% of the total number of Units outstanding on January 1 of such year.  In no event shall the Company be obligated to purchase Units if, in the sole discretion of the Managing Member, such purchase would impair the capital or operation of the Company.

Small Business Issuer Purchases of Equity Securities

Period
Total Number
of Units
Purchased
Average
Price Paid
per Unit
Total Number of Units
Purchased as Part of
Publicly Announced
Plans or Programs
Maximum Number
of Units that May Yet
Be Purchased Under
the Plans or Programs
         
4/1/17 to 4/30/17
122.40
$598.64
1,025.20(1)
(2)
         
5/1/17 to 5/31/17
--
--
--
--
         
6/1/17 to 6/30/17
--
--
--
--

(1)
The Company's repurchase plan is mandated by the Operating Agreement as included in the prospectus related to the original offering of the Units.
(2)
The Operating Agreement contains annual limitations on repurchases described in the paragraph above and has no expiration date.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.  MINE SAFETY DISCLOSURES.

Not Applicable.

ITEM 5.  OTHER INFORMATION.

None.

Page 15 of 16

ITEM 6.  EXHIBITS.

31.1
Certification of Chief Executive Officer of Managing Member 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 Managing Member 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 Managing Member 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:  August 11, 2017
AEI Income & Growth Fund 24 LLC
 
By:
AEI Fund Management XXI, Inc.
 
Its:
Managing Member
     
     
     
 
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)





Page 16 of 16