Hubilu Venture Corporation Reports 26% Revenue Decline and Increased Net Loss in Q1 2025

Hubilu Venture Corporation reported a significant decline in financial performance for the first quarter of 2025, with rental revenue dropping to $383,512, a decrease of 26% from $518,978 in the same period of 2024. The company incurred a net loss of $322,560, compared to a much smaller loss of $5,215 in the prior year. This substantial increase in net loss is attributed primarily to decreased revenues following the termination of a major tenant's contract, which had previously accounted for a significant portion of the company's income.

In terms of operational metrics, Hubilu's total current assets rose sharply to $87,208 as of March 31, 2025, up from $14,262 at the end of 2024. This increase was largely driven by a rise in cash holdings, which grew to $53,662 from $9,799. However, the company continues to face challenges with current liabilities, which totaled $1,570,662, down from $2,596,857 at the end of the previous fiscal year. The working capital deficit improved to $1,483,454, compared to $2,582,595 at the end of 2024, indicating some progress in managing liabilities.

The company has not made any acquisitions during the first quarter of 2025, maintaining its portfolio of 30 properties in the Los Angeles area. However, it has focused on increasing occupancy rates and is actively seeking new tenants to replace those lost. The company’s management is also exploring additional sources of capital to support operations, as it faces ongoing financial challenges, including an accumulated deficit of $2,629,700.

Operationally, Hubilu's expenses increased, with total operating expenses rising to $335,710 from $262,082 year-over-year. Notable increases were seen in repairs and maintenance costs, which surged by 54% to $107,992, reflecting the need for renovations on vacant properties. Additionally, depreciation expenses rose significantly due to prior property acquisitions. The company’s interest expenses also increased, contributing to the overall net loss.

Looking ahead, Hubilu Venture Corporation acknowledges the uncertainty surrounding its ability to continue as a going concern, given its current cash position and ongoing losses. Management is focused on improving occupancy rates and is seeking to enhance revenue streams through strategic initiatives. However, the company has indicated that there can be no assurance of success in these efforts, and it may need to raise additional funds to sustain operations in the near term.