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, 2020 and 2019, 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, 2020 and 2019, respectively, together with notes thereto, which are included in this Quarterly Report on Form 10-Q.

Three months ended September 30, 2020 compared to the three months ended September 30, 2019

Revenues. Our revenues increased $137,295 to $257,588 for the three months ended September 30, 2020 compared to $120,293 for the comparable period in 2019. The increase is due to the acquisition of 9 new properties.

Operating expenses. In total, operating expenses increased $29,083 to $130,696 for the three months ended September 30, 2020 compared to $101,613 for the comparable period in 2019. The increase is primarily due to the Company adding additional properties.

General and administrative expenses increased $36,293 to $40,494 for the three months ended September 30, 2020 compared to $4,201 for the comparable period in 2019.

Consulting expenses decreased $7,633 to $0 for the three months ended September 30, 2020 compared to $7,633 for the comparable period in 2019.

Depreciation expense increased $10,273 to $24,179 for the three months ended September 30, 2020 compared to $13,906 for the comparable period in 2019.

Professional fees decreased $1,360 to $0 for the three months ended September 30, 2020 compared to $1,360 for the comparable period in 2019. The decrease is attributable to the timing of the invoices received by the Company's professional service providers.

Property tax expense decreased $1,048 to $19,158 for the three months ended September 30, 2020 compared to $20,206 for the comparable period in 2019. The decrease is due to paying our taxes earlier in the first quarter.

Repairs and maintenance expense decreased $7,202 to $0 for the three months ended September 30, 2020 compared to $7,202 for the comparable period in 2019. The increase is due to an additional acquisition last quarter.

Transfer Agent and Filing Fees decreased $4,235 to $300 for the three months ended September 30, 2020 compared to $4,535 for the comparable period in 2019.

Utilities expense increased $9,719 to $15,539 for the three months ended September 30, 2019 compared to $5,820 for the comparable period in 2019. The increase is due to 7 additional property acquisitions.





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Promissory Note Interest expense increased $21,258 to $36,776 for the three months ended September 30, 2020 compared to $15,518 for the comparable period in 2019.

Mortgage Interest increased $38,656 to $77,771 for the three months ended September 30, 2020 compared to $39,115 for the comparable period in 2019. The increase is due to the acquisition of 9 new properties.

Net loss. Our net loss decreased $39,655 to $2,553 for the three months ended September 30, 2020 compared to $42,208 for the comparable period in 2019. The decrease is attributable to the revenue and expenses discussed above.

Nine months ended September 30, 2020 compared to the nine months ended September 30, 2019

Revenues. Our revenues increased to $629,889 for the nine months ended September 30, 2020 compared to $311,792 for the comparable period in 2019. The increase is due to the acquisition of 7 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 decreased $70,091 to $412,473 for the nine months ended September 30, 2020 compared to $489,564 for the comparable period in 2019. The decrease is due to less consulting services and maintenance and repairs.

General and administrative expenses increased $104,264 to $140,809 for the nine months ended September 30, 2020 compared to $36,545 for the comparable period in 2019.

Consulting expenses decreased $254,500 to $0 for the nine months ended September 30, 2020 compared to $254,500 for the comparable period in 2019. The decrease is attributable to a lesser fair value attributable to common shares issued to consultants during the nine months ended September 30, 2019 compared to the same period in the prior fiscal year.

Depreciation expense increased $32,899 to $69,850 for the nine months ended September 30, 2020 compared to $36,951 for the comparable period in 2019.

Professional fees decreased $17,206 to $447 for the nine months ended September 30, 2020 compared to $17,653 for the comparable period in 2019.

Property tax expense increased $20,807 to $51,120 for the nine months ended September 30, 2020 compared to $30,313 for the comparable period in 2019. The increase is due to paying our taxes earlier in the first quarter.

Rent expense decreased $10,200 to $11,250 for the nine months ended September 30, 2020 compared to $21,450 for the comparable period in 2019. The decrease is due to downsizing our office space.

Repairs and maintenance expense decreased $9,742 to $2,122 for the nine months ended September 30, 2020 compared to $11,864 for the comparable period in 2019. The increase is due to a new acquisition last quarter.

Transfer Agent and Filing Fees decreased $3,814 to $1,401 for the nine months ended September 30, 2020 compared to $5,215 for the comparable period in 2019. The decrease is due to additional less monthly fees paid.

Utilities expense increased $22,598 to $36,071 for the nine months ended September 30, 2020 compared to $13,473 for the comparable period in 2019. The increase is due to additional property acquisitions.

Promissory Note Interest expense increased $50,072 to $89,285 for the nine months ended September 30, 2020 compared to $39,213 for the comparable period in 2019.

Mortgage Interest increased $100,194 to $215,474 for the nine months ended September 30, 2020 compared to $115,280 for the comparable period in 2019. The increase is due to the acquisition of 7 new properties.

Net loss. Our net loss decreased $224,110 to $131,920 for the nine months ended September 30, 2020 compared to $356,030 for the comparable period in 2019. The decrease is attributable to the revenue and expenses discussed above.

Liquidity and Capital Resources. For the nine months ended September 30, 2020, 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.





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Our total assets are $8,892,385 as of September 30, 2020, consisting of $8,683,856 in net property assets, $182,579 in cash and $25,950 in other current assets.

Our total liabilities are $9,754,772 as of September 30, 2020.

We used $39,035 in operating activities for the nine months ended September 30, 2020 including $131,920 in net loss which was offset by non-cash charges of $69,850 and depreciation, $18,697 in dividends accrued in preferred shares, a net increase of $107 in accounts payable, imputed interest of $25,880, $64,034 received for security deposits, and $16,145 for other current assets.

We used $205,958 in investing activities for the nine months ended September 30, 2020, which was used for building additions and improvements.

We had $186,608 provided by financing activities for the nine months ended September 30, 2020.

The Company had no formal long-term lines or credit or other bank financing arrangements as of September 30, 2020.

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 $208,007 on building improvements during the nine months ended September 30, 2020.

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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