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 six months ended June 30, 2022 and 2021, 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 six months ended June 30, 2022 and 2021, respectively, together with notes thereto, which are included in this Quarterly Report on Form 10-Q.

Three months ended June 30, 2022, compared to the three months ended June 30, 2021

Revenues. Our revenues increased $5,848 to $393,802 for the three months ended June 30, 2022, compared to $387,954 for the comparable period in 2021. The increase is due to additional property acquisitions.

Operating expenses. In total, operating expenses decreased $53,224 to $198,399 for the three months ended June 30, 2022, compared to $251,623 for the comparable period in 2021.

General and administrative expenses decreased $64,711 to $148,112 for the three months ended June 30, 2022, compared to $212,823 for the comparable period in 2021.

Depreciation expense increased $11,487 to $50,287 for the three months ended June 30, 2022, compared to $38,800 for the comparable period in 2021.

Property tax expense increased $2,808 to $43,959 for the three months ended June 30, 2022, compared to $41,151 for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

Salaries and benefits expense decreased $13,750 to $12,500 for the three months ended June 30, 2022, compared to $26,250 for the comparable period in 2021.





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Utilities expense decreased $573 to $18,159 for the three months ended June 30, 2022 compared to $18,732 for the comparable period in 2021. The increase is due to additional property acquisitions.

Net Income (loss). Our net loss increased $13,026 to $32,042 of net loss for the three months ended June 30, 2022, compared to $19,016 of net income for the comparable period in 2021. The increase is attributable to the revenue and expenses discussed above.

Six months ended June 30, 2022 compared to the six months ended June 30, 2021

Revenues. Our revenues increased to $783,740 for the six months ended June 30, 2021 compared to $704,683 for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

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 $57,745 to $445,773 for the six months ended June 30, 2022 compared to $388,028 for the comparable period in 2021.

General and administrative expenses increased $9,070 to $346,259 for the six months ended June 30, 2022 compared to $337,189 for the comparable period in 2021.

Depreciation expense increased $48,675 to $99,514 for the six months ended June 30, 2022 compared to $50,839 for the comparable period in 2021.

Professional fees increased $2,011 to $42,247 for the six months ended June 30, 2022 compared to $40,236 for the comparable period in 2021.

Property tax expense increased $47,641 to $105,191 for the six months ended June 30, 2022 compared to $57,550 for the comparable period in 2021. The increase is due to paying our taxes earlier in the first quarter.

Utilities expense decreased $258 to $32,585 for the six months ended June 30, 2022 compared to $32,843 for the comparable period in 2021. The decrease is due to more tenants paying their own utilities.

Mortgage Interest increased $158,928 to $447,635 for the six months ended June 30, 2022 compared to $288,707 for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

Net loss. Our net loss increased $111,816 to $79,868 for the six months ended June 30, 2022 compared to income of $31,948 for the comparable period in 2021. The increase is attributable to the revenue and expenses discussed above.





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Liquidity and Capital Resources. For the six months ended June 30, 2022, 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 $17,100,901 as of June 30, 2022, consisting of $16,853,230 in net property assets, $241,071 in cash, and $6,600 in deposits.

Our total liabilities are $17,988,823 as of June 30, 2022.

We were provided $137,080 in operating activities for the six months ended June 30, 2022, consisting of $79,868 in net loss, imputed interest, which was offset by non-cash charges of $99,514 for depreciation and amortization, $33,004 in dividends accrued in preferred shares, a net decrease of $2,373 in accounts payable and $62,505 received for security deposits.

We used $332,460 in investing activities for the six months ended June 30, 2022, which was used for building additions and improvements.

We had $232,713 provided by financing activities for the six months ended June 30, 2022.

The Company had no formal long-term lines or credit or other bank financing arrangements as of June 30, 2022.

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 $332,460 on building improvements during the six months ended June 30, 2022.

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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