Hubilu Venture Corporation

What they do

Hubilu was incorporated in Delaware in 2015 and describes itself as a real estate consulting, asset management and business acquisition company that has shifted into directly acquiring and operating rental houses. Its focus is student housing income properties near the USC campus and neighboring Metro/subway stations in Los Angeles, where it remodels and rents houses to students and non-profit and for-profit corporate tenants. It states it is not a real estate brokerage and does not engage in brokerage activities. Properties are acquired in clusters to capture economies of scale and property management efficiencies, and all have been purchased with debt financing arrangements.

Revenue drivers

• Rental revenue (sole reported revenue line) — Rental revenue from the owned houses is the company's only reported revenue line, running about $504,556 in the quarter ended June 30, 2026 and $2.2M for full-year 2025. The quarters ended September 2025 through June 2026 produced $628,792, $615,245, $593,738 and $504,556, so this single line has been declining sequentially. No other segment is broken out.
• Student and institutional tenants near USC — Management attributes its model to demand for houses from students, non-profits and corporate tenants around the USC campus and Metro/subway stations, and says rising area rents let it target larger, higher-priced houses. It does not disclose tenant concentration or lease terms.
• Consulting and advisory income — The company was originally formed to provide consulting and advisory services to real estate professionals and investors, and consulting income of $13,100 appeared in the quarter ended June 30, 2025 but was zero in the comparable 2026 quarter. It is immaterial relative to rental revenue.

Recent performance

For the three months ended June 30, 2026, rental revenue fell to $504,556 from $576,427 a year earlier, a decrease of $71,871 or 12%, which management attributed to higher vacancies and lower advance rent collections. Total operating expenses rose to $417,350 from $354,259, driven largely by repairs and maintenance of $146,613 versus $47,990 and property taxes of $85,699 versus $73,960, partly offset by lower general and administrative expense of $55,163 versus $98,716. Net operating income dropped to $87,206 from $222,168, and interest expense of $373,094 exceeded net operating income, producing a net loss of $292,375 versus a net loss of $131,342 a year earlier. Full-year figures show the same pattern: revenue was flat at $2.2M in both 2024 and 2025 while net loss widened to $551,442 in 2025 from $186,237 in 2024, with diluted EPS of -$0.02 versus -$0.01.

Strategy

Management says its focus is to continue acquiring houses and expand rental operations, targeting larger and higher-priced houses near USC and Metro stations while factoring in current interest rates. It says it purchased two new properties in the third quarter of 2025 and entered agreements to acquire two more in the fourth quarter of 2024, bringing total properties under management to thirty-five, all financed with various debt arrangements. It reports that having multiple properties within a small radius allows economies of scale and management efficiencies. The company states that its ability to acquire new properties and increase revenues is largely dependent on raising additional capital. Since the last 10-K it has filed 8-Ks disclosing material agreements plus acquisitions or dispositions in September 2026, September 2025, August 2025, June 2025, May 2025, and in 2024.

Risks

• Going concern — As of June 30, 2026 the company had $108,704 of cash, negative working capital of $1,476,662 and an accumulated deficit of $3,323,134, and management states these factors raise substantial doubt about its ability to continue as a going concern.
• Debt load versus thin operating income — Long-term debt was $22.9M at December 31, 2025 against $23.4M of total assets at June 30, 2026, and quarterly interest expense of $373,094 is more than four times the $87,206 of net operating income reported for the June 2026 quarter.
• Negative equity and liabilities above assets — At June 30, 2026 total liabilities of $25.6M exceeded total assets of $23.4M, leaving shareholder equity of negative $2.2M.
• Revenue concentration and vacancy sensitivity — All revenue comes from renting houses to student and nearby tenants, and the 12% year-over-year quarterly decline was attributed to higher vacancies and lower advance rent collections, with no other business line to offset it.

Outlook

Management does not give numeric guidance; it says it expects to incur further losses in developing the business and may not have sufficient funds to sustain operations for the next twelve months. Its stated plan if revenue does not materialize at expected rates is to seek additional financing and conserve cash by further reducing expenses, though it says there is no assurance it will succeed. It also states that acquiring new properties and increasing revenues depends largely on raising additional capital.