Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 157

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 157
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 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 December 31, 2024 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, proceeds from the
DST Program, the sales of assets, and additional sources, such as from borrowings.

We
have notes receivable in conjunction with properties that are in lease-up. To date, these investments have been structured as senior loans,
and in the future, we may also provide mezzanine financing to these types of projects. The notes receivable provide a current stated return
and require repayment based on a fixed maturity date. If the property does not repay the notes receivable upon maturity, our income, FFO,
CFFO and cash flows could be reduced below the stated returns currently being recognized if the property does not produce sufficient cash
flow to pay its operating expenses and debt service, or to refinance its debt obligations.

We
also have preferred equity interests in properties that are in various stages of development and in lease-up, 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.
As we evaluate our capital position and capital allocation strategy, we may consider alternative means of financing our development loan
and preferred equity investment activities at the subsidiary level.

Off-Balance Sheet Arrangements

As
of December 31, 2024, we have off-balance sheet arrangements that may have a material effect on