Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 79

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 79
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 no longer own the underlying real estate, because of the fixed terms of the
long-term master lease guaranteed by our Operating Partnership, negative performance by the underlying properties could affect cash available
for distributions to our stockholders and will likely have an adverse effect on our results of operations and NAV.

We may own beneficial interests in DSTs owning real property that will be subject to the agreements under our DST Program, which may have an adverse effect on our results of operations, relative to if the DST Program agreements did not exist.

In connection with our DST
Program, we may own beneficial interests in DSTs owning real property that are subject to the terms of the agreements governing our DST
Program. The DST Program agreements limit our ability to encumber, lease or dispose of our beneficial interests. Such agreements could
affect our ability to turn our beneficial interests into cash and could affect cash available for distributions to our stockholders.
The DST Program agreements could also impair our ability to take actions that would otherwise be in the best interests of our stockholders
and, therefore, may have an adverse effect on our results of operations and NAV, relative to if the DST Program agreements did not exist.

Properties that are placed into the DST Program and later reacquired may be less liquid than other assets, which could impair our ability to utilize cash proceeds from sales of such properties for other purposes such as paying down debt, distributions, or additional investments.

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DST Properties may later
be reacquired through exercise of the FMV Option granted to our Operating Partnership. In such cases, the investors who become limited
partners in the Operating Partnership (the “DST Investors”) will generally remain tied to the applicable DST Property in
terms of basis and built in gain. As a result, if the applicable DST Property is subsequently sold, unless we effectuate a like kind
exchange under Section 1031 of the Code, then tax will be triggered on the DST Investors’ built in gain. Although we are not
contractually obligated to do so, we may seek to execute a 1031 exchange in such situations rather than trigger gain. Any replacement
property acquired in connection with a 1031 exchange will similarly be tied to the DST Investors with similar considerations if such
replacement property ever is sold. As a result of these factors, placing properties into the DST Program may limit our ability to access
liquidity from such properties or replacement properties through sale without triggering taxes due to the built in gain tied to DST Investors.