Hubilu Venture Corporation Reports Q2 2025 Financial Results with Increased Rental Revenue but Higher Net Loss

Hubilu Venture Corporation reported its financial results for the second quarter of 2025, revealing a rental revenue of $576,427, an increase of 8.54% from $531,081 in the same period of 2024. However, the company experienced a net loss of $131,342 for the quarter, compared to a loss of $57,522 in the prior year, reflecting a significant rise in operating expenses, which totaled $354,259, up from $261,141. For the first half of 2025, total revenues decreased to $959,939 from $1,050,059 in 2024, primarily due to a corporate tenant vacating 18 properties, leading to a decline in occupancy rates.

The company's total assets increased to $22.37 million as of June 30, 2025, compared to $20.94 million at the end of 2024. This growth was driven by acquisitions, including two properties in Los Angeles for a total of $1.29 million. The real estate segment saw a net increase in value, with total real estate assets reaching $22.30 million, up from $20.92 million. However, the company also reported a significant increase in total liabilities, which rose to $24.07 million from $22.23 million, largely due to increased mortgage obligations.

Operationally, Hubilu's general and administrative expenses surged by 133% to $98,716, attributed to higher property management costs. Other expenses, including interest, also rose significantly, contributing to the overall net loss. The company’s cash position improved, with cash on hand increasing to $46,882 from $9,799 at the end of 2024, although it still reported a working capital deficit of $1.60 million. The company’s accumulated deficit also widened to $2.76 million from $2.31 million.

Looking ahead, Hubilu Venture Corporation faces challenges in sustaining operations, as indicated by its management's caution regarding its ability to continue as a going concern. The company anticipates further losses and may need to raise additional capital to fund operations. Management is focused on expanding its rental operations and acquiring more properties to leverage economies of scale, particularly in high-demand areas near Los Angeles Metro stations. However, the company acknowledges that its future performance is contingent on successfully navigating these financial hurdles and improving occupancy rates in its properties.