Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 59

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 59
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 default or bankruptcy, we may experience delays
in enforcing our rights as landlord at that property and will incur costs in protecting our investment and re-leasing the property.

Our leases are relatively short-term, exposing us to the risk that we may have to re-lease our properties frequently, which we may be unable to do on attractive terms, on a timely basis, or at all.

Substantially
all of our new leases have a duration of one to two years. As such leases permit the residents to leave at the end of the lease term,
we anticipate our rental revenues may be affected by declines in market rental rates more quickly than if our leases were for longer terms.
Short-term leases may result in high turnover, which involves costs such as restoring the properties, marketing costs, and lower occupancy
levels. Our resident turnover rate and related cost estimates may be less accurate than if we had more operating data upon which to base
such estimates. If the rental rates for our properties decrease or our residents do not renew their leases, our operating results and
ability to make distributions to our stockholders could be adversely affected. Alternatively, to the extent that a lease term exceeds
one year, we may lose the opportunity to raise rents in an appreciating market and be locked into a lower rent until such lease expires.

Climate change may adversely affect our business.

To
the extent that significant changes in the climate occur in areas where our communities are located, we may experience extreme weather
and/or changes in precipitation and temperature, all of which may result in physical damage to, or a decrease in demand for, properties
located in these areas or affected by these conditions. Should the impact of climate change be material in nature, including significant
property damage to or destruction of our properties, or occur for lengthy periods of time, our financial condition or results of operations
may be adversely affected. In addition, changes in federal, state, and local legislation and regulation based on concerns about climate
change could result in increased capital expenditures on our existing properties (for example, to improve their energy efficiency and/or
resistance to inclement weather) without a corresponding increase in revenue, resulting in adverse impacts to our results of operations.

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Eminent domain could lead to material losses on our investments in our properties.

Governmental
authorities may exercise eminent domain to acquire the land on which our properties are built in order to build roads and other infrastructure.
Any such exercise of eminent domain would allow us to recover