Hubilu Venture Corp SEC 10-Q Report

Hubilu Venture Corp, a company specializing in acquiring student housing and corporate income properties near Los Angeles Metro/subway stations, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational activities during the period, providing insights into its revenue growth, operational challenges, and future outlook.

Financial Highlights

Rental Revenue: Hubilu Venture Corp reported rental revenue of $576,427 for the three months ended June 30, 2025, marking an increase of $45,346 or 8.54% compared to the same period in 2024. This growth was primarily driven by increased rental rates.

Net Operating Income: The company's net operating income for the three months ended June 30, 2025, was $222,168, a decrease of $47,772 compared to the same period in 2024. This decline reflects higher operating expenses.

Net Loss: Hubilu reported a net loss of $131,342 for the three months ended June 30, 2025, an increase of $73,820 compared to the same period in 2024. The increased net loss was primarily due to higher general and administrative expenses, property tax, repairs and maintenance costs, and interest expense.

Net Loss Per Common Share - Basic and Diluted: The net loss per common share was $(0.005) for the three months ended June 30, 2025, compared to $(0.002) for the same period in 2024, reflecting the increased net loss.

Business Highlights

Business Focus: Hubilu Venture Corporation continues to specialize in acquiring student housing and corporate income properties, particularly near Los Angeles Metro/subway stations. This strategic focus is driven by high demand from students and corporate tenants in these areas.

Operational Strategy: The company leverages economies of scale by acquiring multiple properties within a small radius, which enhances property management efficiencies and supports rental operations expansion.

Property Acquisitions: During the reporting period, Hubilu acquired two new properties in Los Angeles, located at 1650 S Rimpau Blvd and 1434 W. 22nd Street, indicating a continued focus on expanding its real estate portfolio.

Geographical Performance: All of Hubilu's properties are located in Los Angeles, CA, which remains the central focus of their operations. This regional concentration allows the company to capitalize on local market dynamics and demand.

Operational Challenges: The company faced challenges with a corporate tenant vacating 18 properties, impacting occupancy rates and rental revenue. However, efforts to fill these vacancies were underway by the second quarter.

Future Outlook: Hubilu anticipates further losses as it continues to develop its business. The company plans to raise additional capital to support property acquisitions and revenue growth, which is crucial for its long-term sustainability.

SEC Filing: Hubilu Venture Corp [ HBUV ] - 10-Q - Aug. 14, 2025