The following is management's discussion and analysis of financial condition and results of operations and is provided as a supplement to the accompanying unaudited financial statements and notes to help provide an understanding of our financial condition, results of operations and cash flows during the periods included in the accompanying unaudited financial statements.

In this Quarterly Report on Form 10-Q, "Company," "the Company," "us," and "our" refer to Hubilu Venture Corporation, a Delaware corporation, unless the context requires otherwise.

We intend the following discussion to assist in the understanding of our financial position and our results of operations for the three and nine-months ended September 30, 2021 and 2020, respectively. You should refer to the Financial Statements and related Notes in conjunction with this discussion.





Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited financial statements for the three and nine months ended September 30, 2021 and 2020, respectively, together with notes thereto, which are included in this Quarterly Report on Form 10-Q.

Three months ended September 30, 2021, compared to the three months ended September 30, 2020

Revenues. Our revenues decreased $90,545 to $167,043 for the three months ended September 30, 2021, compared to $257,588 for the comparable period in 2020. The decrease is due to less consulting income.

Operating expenses. In total, operating expenses increased $60,927 to $191,623 for the three months ended September 30, 2021, compared to $130,696 for the comparable period in 2020.

General and administrative expenses increased $35,205 to $75,699 for the three months ended September 30, 2021, compared to $40,494 for the comparable period in 2020.

Depreciation expense increased $10,298 to $34,477 for the three months ended September 30, 2021, compared to $24,179 for the comparable period in 2020.

Rent expense stayed equal at $3,900 for the three months ended September 30, 2021, which was the same amount of $3,900 for the comparable period in 2020.

Property tax expense increased $3,015 to $22,173 for the three months ended September 30, 2021, compared to $19,158 for the comparable period in 2020. The increase is due to the acquisition of five new properties.

Repairs and maintenance expense remained equal at $0 for the three months ended September 30, 2021, which was the same amount for the comparable period in 2020.

Taxes and licenses expense increased $159 to $159 for the three months ended September 30, 2021, compared to $0 for the comparable period in 2020. The increase is due timing of filing dates.

Wages and benefits expense increased $8,874 to $36,000 for the three months ended September 30, 2021, compared to $27,126 for the comparable period in 2020. The increase is due to salaries and wages being back to normal. Additional money was being paid to assist employees during Covid shutdown.

Transfer agent and filing fees expense decreased $300 to $0 for the three months ended September 30, 2021, compared to $300 for the comparable period in 2020. The increase is due to more filings during this period.





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Promissory Note Interest expense decreased $36,776 to $0 for the three months ended September 30, 2021, compared to $36,776 for the comparable period in 2020.

Mortgage Interest increased $63,829 to $141,600 for the three months ended September 30, 2021, compared to $77,771, for the comparable period in 2020. The increase is due to the acquisition of five new properties.

Net loss. Our net loss decreased $98,691 to $96,138 of net income for the three months ended September 30, 2021, compared to $2,553 of net loss for the comparable period in 2020. The increase is attributable to the revenue and expenses discussed above.

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

Revenues. Our revenues increased $241,837 to $871,726 for the nine months ended September 30, 2021 compared to $629,889 for the comparable period in 2020. The increase is due to the acquisition of five new properties and consulting income.

Operating expenses. Operating expenses include general and administrative expenses, consulting expense, depreciation, professional fees, property taxes, rent, repairs and maintenance, transfer agent and filing fees, and utilities. In total, operating expenses increased $150,957 to $563,430 for the nine months ended September 30, 2021, compared to $412,473 for the comparable period in 2020. The increase is due to the acquisition of five new properties.

General and administrative expenses increased $96,932 to $237,741 for the nine months ended September 30, 2021, compared to $140,809 for the comparable period in 2020.

Depreciation expense increased $15,466 to $85,316 for the nine months ended September 30, 2021, compared to $69,850 for the comparable period in 2020.

Professional fees decreased $52 to $395 for the nine months ended September 30, 2021, compared to $447 for the comparable period in 2020.

Property tax expense increased $28,603 to $79,723 for the nine months ended September 30, 2021, compared to $51,120 for the comparable period in 2020. The increase is due to paying our taxes earlier in the first quarter.

Rent expense increased $450 to $11,700 for the nine months ended September 30, 2021, compared to $11,250 for the comparable period in 2020. The increase is due to downsizing our office space.

Repairs and maintenance expense decreased $123 to $1,999 for the nine months ended September 30, 2021, compared to $2,122 for the comparable period in 2020. The decrease is due to the properties being in good condition and require less maintenance.

Taxes and licenses expense increased $6,157 to $6,157 for the nine months ended September 30, 2021, compared to $0 for the comparable period in 2020. The increase is due timing of filing dates.

Wages and benefits expense decreased $10,903 to $88,500 for the nine months ended September 30, 2021, compared to $99,403 for the comparable period in 2020. The decrease is due to salaries and wages being adjusted since the Covid shutdown.

Transfer Agent and Filing Fees decreased $1,401 to $0 for the nine months ended September 2021 compared to $1,401 for the comparable period in 2020. The decrease is due to fewer monthly fees being paid.

Utilities expense increased $15,828 to $51,899 for the nine months ended September 30, 2021, compared to $36,071for the comparable period in 2020. The increase is due to four additional property acquisitions.





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Promissory Note Interest expense decreased $89,285 to $0 for the nine months ended September 30, 2021, compared to $89,285 for the comparable period in 2020.

Mortgage Interest increased $198,370 to $413,844 for the nine months ended September 30, 2021, compared to $215,474 for the comparable period in 2020. The increase is due to the acquisition of five new properties.

Net loss. Our net loss decreased $290,006 to income $128,086 for the nine months ended September 30, 2021, compared to a loss of $131,920 for the comparable period in 2020. The decrease is attributable to the revenue and expenses discussed above.

Liquidity and Capital Resources. For the nine months ended September 30, 2021, we did not borrow any money from our majority shareholder. We intend to seek additional financing for our working capital, in the form of equity or debt, to provide us with the necessary capital to accomplish our plan of operation. There can be no assurance that we will be successful in our efforts to raise additional capital.

Our total assets are $13,172,353 as of September 30, 2021, consisting of $13,104,915 in net property assets, $29,876 in cash, $9,212 in funds held in escrow, $6,600 in deposits and $21,750 in prepaid expenses.

Our total liabilities are $13,920,015 as of September 30, 2021.

We were provided $267,833 in operating activities for the nine months ended September 30, 2021, including $128,086 in net income, imputed interest and gain, which was offset by non-cash charges of $85,316 for depreciation and amortization, $24,985 in dividends accrued in preferred shares, a net decrease of $5,827 in accounts payable and $11,855 received for security deposits.

We used $361,612 in investing activities for the nine months ended September 30, 2021, which was used for building additions and improvements.

We had $21,009 used in financing activities for the nine months ended September 30, 2021.

The Company had no formal long-term lines or credit or other bank financing arrangements as of September 30, 2021.

The Company has no current plans for the purchase or sale of any plant or equipment.

The Company has no current plans to make any changes in the number of employees.





Impact of Inflation

The Company believes that inflation has had a negligible effect on operations over the past quarter.





Capital Expenditures

The Company spent $361,612 on building improvements during the nine months ended September 30, 2021.

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

For information on the impact of recent accounting pronouncements on our business, see note 3 of the Notes to the Consolidated Financial Statements.

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