Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 156

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 156
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 2025, we were in compliance with all covenants under our revolving credit facility. We will
continue to monitor the debt markets, including Fannie Mae and Freddie Mac, and as market conditions permit, access borrowings that are
advantageous to us.

If we are unable to obtain
financing on favorable terms or at all, we would likely need to curtail our investment activities, including acquisitions and improvements
to and developments of real properties, which could limit our growth prospects. This, in turn, could reduce cash available for distribution
to our stockholders and may hinder our ability to raise capital by issuing more securities or borrowing more money. We also may be forced
to dispose of assets at inopportune times to maintain REIT qualification and Investment Company Act exemption.

We expect to maintain
a distribution on our Series A Preferred Stock in accordance with the terms which require monthly dividends. While our distributions
through September 30, 2025 have been paid from cash flow from operations and in accordance with our policy, distributions in the
future may be paid from cash flow from operations, proceeds from the offering of our Series A Preferred Stock, the sales of assets,
and additional sources, such as from borrowings.

We have preferred equity
interests in properties that are in various stages of development, in lease-up and operating, and our preferred equity investments are
structured to provide a current and/or accrued preferred return during all phases. Each joint venture in which we own a preferred equity
interest is required to redeem our preferred equity interests, plus any accrued preferred return, based on a fixed maturity date, generally
in relation to the property’s construction loan or mortgage loan maturity. Upon redemption of the preferred equity interests, our
income, FFO, CFFO and cash flows could be reduced below the preferred returns currently being recognized. Alternatively, if the joint
ventures do not redeem our preferred membership interest when required, our income, FFO, CFFO and cash flows could be reduced if the
development project does not produce sufficient cash flow to pays its operating expenses, debt service and preferred return obligations.
We previously held notes receivable investments that were structured as senior loans. In the future, we may make additional notes receivable investments structured as senior loans or through mezzanine financing. The notes receivable provided a current stated return and required repayment based on a fixed maturity date. If the property did not repay the notes receivable upon maturity, our income, FFO, CFFO and