SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) July 28,1995
AEI REAL ESTATE FUND 86-A LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
State of Delaware
(State or other Jurisdiction of Incorporation or
Organization)
0-14090 41-6273958
(Commission File Number) (I.R.S. Employer
Identification No.)
1300 Minnesota World Trade Center, St. Paul, Minnesota
55101
(Address of Principal Executive Offices)
(612) 227-7333
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last
report)
Item 1. Changes in Control of Registrant.
Not Applicable.
Item 2. Acquisition or Disposition of Assets.
On July 28, 1995, AEI Real Estate Fund 86-A
Limited Partnership sold an Applebee's restaurant in Fort
Myers, Florida for $1,666,886 in cash. The property was
sold to Apple South, Inc., the lessee of the property, which
is not affiliated with the Partnership or any of the
Partnership's affiliates. The Partnership received net sale
proceeds of $1,646,608 which resulted in a net gain of
$686,548. At the time of sale, the cost and related
accumulated depreciation of the property was $1,179,405 and
$219,345, respectively.
Item 3. Bankruptcy or Receivership.
Not Applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not Applicable.
Item 5. Other Events.
None.
Item 6. Resignation of Registrant's Directors.
Not Applicable.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired - Not
Applicable.
(b) Pro Forma Financial Information.
The following financial statements illustrate the
impact the transaction would have had on the
balance sheet if the property sold on June 30,
1995 and the impact to the income statements for
the periods ended December 31, 1994 and June 30,
1995 had the property been sold by the Registrant
on January 1, 1994:
<PAGE>
<TABLE>
BALANCE SHEET
June 30, 1995
ASSETS
<CAPTION>
<S> <C> <C> <C>
Historical Pro-Forma Pro-Forma
Statements Adjustments Statements
Current Assets:
Cash $ 15,851 $1,642,130<F1> $1,657,981
Receivables 16,649 0 16,649
--------- --------- ---------
Total Current Assets 32,500 1,642,130 1,674,630
--------- --------- ---------
Investments in Real Estate 6,252,416 (1,179,405)<F1> 5,073,011
Accumulated Depreciation (1,220,795) 216,908 <F1> (1,003,887)
--------- --------- ---------
Net Investments in
Real Estate 5,031,621 (962,497) 4,069,124
--------- --------- ---------
Total Assets $5,064,121 $ 679,633 $5,743,754
========= ========= =========
<CAPTION>
LIABILITIES AND PARTNERS' CAPITAL
<S> <C> <C> <C>
Current Liabilities $ 226,390 $ 0 $ 226,390
Partners' Capital 4,837,731 679,633<F2> 5,517,364
--------- --------- ---------
Total Liabilities and
Partners' Capital $5,064,121 $ 679,633 $5,743,754
========= ========= =========
</TABLE>
<PAGE>
<TABLE>
INCOME STATEMENTS
<CAPTION>
For the Period Ended June 30, 1995
Historical Pro-Forma Pro-Forma
Statements Adjustments Statements
<S> <C> <C> <C>
INCOME:
Rental Income $ 350,647 $ (85,789)<F3> $ 264,858
Investment Income 234 52,691 <F4> 52,925
--------- --------- ---------
Total Income 350,881 (33,098) 317,783
--------- --------- ---------
EXPENSES:
Partnership Administration-
Affiliates 62,293 0 62,293
Partnership Administration -
Unrelated Parties 30,231 (269)<F5> 29,962
Depreciation 81,694 (14,623)<F5> 67,071
--------- --------- ---------
Total Expenses 174,218 (14,892) 159,326
--------- --------- ---------
NET OPERATING INCOME $ 176,663 $ (18,206) $ 158,457
========= ========= =========
NET OPERATING
INCOME ALLOCATED:
General Partners $ 1,767 $ (182)<F6> $ 1,585
Limited Partners 174,896 (18,024)<F6> 156,872
--------- --------- ---------
$ 176,663 $ (18,206) $ 158,457
========= ========= =========
NET OPERATING INCOME PER
LIMITED PARTNERSHIP UNIT
(7,276 weighted average
Units outstanding) $ 24.04 $ (2.48) $ 21.56
======= ======= =======
</TABLE>
<PAGE>
<TABLE>
INCOME STATEMENTS
<CAPTION>
For the Period Ended December 31, 1994
Historical Pro-Forma Pro-Forma
Statements Adjustments Statements
<S> <C> <C> <C>
INCOME:
Rental Income $ 688,888 $ (156,862)<F3> $ 532,026
Investment Income 1,991 75,744 <F4> 77,735
--------- --------- ---------
Total Income 690,879 (81,118) 609,761
--------- --------- ---------
EXPENSES:
Partnership Administration-
Affiliates 125,257 0 125,257
Partnership Administration -
Unrelated Parties 71,029 (925)<F5> 70,104
Depreciation 163,389 (29,246)<F5> 134,143
--------- --------- ---------
Total Expenses 359,675 (30,171) 329,504
--------- --------- ---------
NET OPERATING INCOME $ 331,204 $ (50,947) $ 280,257
========= ========= =========
NET OPERATING
INCOME ALLOCATED:
General Partners $ 3,312 $ (509)<F6> $ 2,803
Limited Partners 327,892 (50,438)<F6> 277,454
--------- --------- ---------
$ 331,204 $ (50,947) $ 280,257
========= ========= =========
NET OPERATING INCOME PER
LIMITED PARTNERSHIP UNIT
(7,283 weighted average Units
outstanding in 1994) $ 45.02 $ (6.92) $ 38.10
========= ========= =========
<FN>
<F1> If the property had been sold on June 30, 1995, cash of
$1,642,130 would have been received, in addition,
Investments in Real Estate and Accumulated Depreciation
would have been reduced by $1,179,405 and $216,908,
respectively.
<F2> Reflects gain on disposition of the property.
<F3> Rental income that would not have been received.
<F4> Investment income that would have been received on net
proceeds invested in money market account.
<F5> Depreciation and direct property expenses that would not
have been incurred.
<F6> Allocates income adjustment to Partners.
</FN>
</TABLE>
(c) Exhibits - None.
Item 8. Change in Fiscal Year - Not Applicable.
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 hereunto duly
authorized.
AEI REAL ESTATE FUND 86-A
A Limited Partnership
By: AEI Fund Management 86-A, Inc.
Its: General Partner
Date: November 15, 1995 /s/ Mark E.Larson
By Mark E. Larson
Its Chief Financial Officer
