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

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

Revenues. Our revenues increased $191,103 to $358,146 for the three months ended September 30, 2022, compared to $167,043 for the comparable period in 2021. The increase is due to additional property acquisitions.

Operating expenses. In total, operating expenses decreased $43,676 to $156,711 for the three months ended September 30, 2022, compared to $200,387 for the comparable period in 2021.

General and administrative expenses decreased $63,246 to $102,664 for the three months ended September 30, 2022, compared to $165,910 for the comparable period in 2021.

Depreciation expense increased $19,570 to $54,047 for the three months ended September 30, 2022, compared to $34,477 for the comparable period in 2021.

Property tax expense increased $18,887 to $ 41,060 for the three months ended September 30, 2022, compared to $22,173 for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

Salaries and benefits expense decreased $20,900 to $15,100 for the three months ended September 30, 2022, compared to $36,000 for the comparable period in 2021.





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Utilities expense decreased $2,976 to $16,080 for the three months ended September 30, 2022 compared to $19,056 for the comparable period in 2021. The decrease is due to more tenants paying their own utilities.

Net Income (loss). Our net loss increased $138,401 to $42,263 of net loss for the three months ended September 30, 2022, compared to $96,138 of net income for the comparable period in 2021. The decrease is attributable to the revenue and expenses discussed above.

Nine months ended September 30, 2022 compared to the nine months ended September 30, 2021

Revenues. Our revenues increased to $1,141,886 for the nine months ended September 30, 2021 compared to $871,726 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 $14,069 to $602,484 for the nine months ended September 30, 2022 compared to $588,415 for the comparable period in 2021.

General and administrative expenses decreased $54,176 to $448,923 for the nine months ended September 30, 2022 compared to $503,099 for the comparable period in 2021.

Depreciation expense increased $68,245 to $153,561 for the nine months ended September 30, 2022 compared to $85,316 for the comparable period in 2021.

Professional fees increased $52,621 to $53,016 for the nine months ended September 30, 2022 compared to $395 for the comparable period in 2021.

Property tax expense increased $66,528 to $146,251 for the nine months ended September 30, 2022 compared to $79,723 for the comparable period in 2021. The increase is due to paying our taxes earlier in the first quarter.

Utilities expense decreased $3,234 to $48,665 for the nine months ended September 30, 2022 compared to $51,899 for the comparable period in 2021. The decrease is due to more tenants paying their own utilities.

Mortgage Interest increased $252,658 to $691,333 for the nine months ended September 30, 2022 compared to $438,675 for the comparable period in 2021. The increase is due to the acquisition of nine new properties.

Net loss. Our net loss increased $250,217 to $122,131 for the nine months ended September 30, 2022 compared to income of $128,086 for the comparable period in 2021. The decrease is attributable to the revenue and expenses discussed above.





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Liquidity and Capital Resources. For the nine months ended September 30, 2022, we did not borrow 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 $16,979,409 as of September 30, 2022, consisting of $16,934,988 in net property assets, $37,821 in cash, and $6,600 in deposits.

Our total liabilities are $17,892,778 as of September 30, 2022.

We were provided $179,551 in operating activities for the nine months ended September 30, 2022, consisting of $122,131 in net loss, imputed interest, which was offset by non-cash charges of $153,561 for depreciation and amortization, $33,004 in dividends accrued in preferred shares, a net decrease of $179 in accounts payable and $63,437 received for security deposits.

We used $449,026 in investing activities for the nine months ended September 30, 2022, which was used for building additions and improvements.

We had $103,558 provided by financing activities for the nine months ended September 30, 2022.

The Company had no formal long-term lines or credit or other bank financing arrangements as of September 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 $449,026 on building improvements during the nine months ended September 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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