Company: BHM
Filing Date: 2025-02-18
Form Type: 8-K/A
Source: 0001104659-25-014738
Chunk: 9

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-02-18
Form: 8-K/A
Chunk 9
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 adjustments to the Company’s historical operations to give effect to the purchase of Allure at Southpark on December 6, 2024 as if these assets had been acquired on January 1, 2023. Pro forma adjustments to the Company’s historical results for the nine months ended September 30, 2024 include adjustments to the following: property management and asset management fees, depreciation and amortization, interest expense, and the operating partnership units’ interest.                                                                                                                                                                                                                                  |
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|     | Amounts shown for rental and other property revenues and property operating expenses reflect the property’s actual results of operations (historical operations) and have not been adjusted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (c) | Represents property management and asset management fees estimated to have been incurred for Allure at Southpark. Property management fees and asset management fees are calculated at 3.0% and 1.0% of total monthly property revenues, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (d) | Represents depreciation and amortization expense adjustment to historical results for the nine months ended September 30, 2024 based on the allocation of the purchase price. Depreciation expense is calculated using the straight-line method over the asset’s estimated useful life as follows: 30-40 years for the building, 5-15 years for building and land improvements, and 3-8 years for furniture, fixtures and equipment. Amortization expense relates to the Company’s identifiable intangible assets and consists of the value of in-place leases. In-place leases are amortized using the straight-line method over the remaining non-cancelable term of the respective leases, which is on average six months. |
| (e) | Represents interest expense for the Allure at Southpark acquisition and is estimated to have been incurred on the $55.2 million senior loan, which bears interest at a fixed rate of 5.58% and matures on January 1, 2030. Interest expense is calculated as if the senior loan was entered into on January 1, 2023. Interest expense also includes deferred financing costs which are recognized at acquisition and amortized using the straight-line method over the remaining life of the senior loan. The mortgage balance assumed in the pro forma balance sheet is presented at fair value less unamortized deferred financing costs.                                                                                   |
| (f) | Earnings per share is calculated in accordance with Accounting Standards Codification 260