Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 65

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 65
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 event of default which may result
in our lenders foreclosing on the properties securing the mortgage.

If we cannot repay or refinance
loans incurred to purchase our properties, or interests therein, then we may lose our interests in the properties secured by the loans
we are unable to repay or refinance.

High levels of debt or increases in interest rates could increase the amount of any future loan payments, which could reduce the cash available for distribution to stockholders.

Our policies do not limit
us from incurring debt. For purposes of calculating our leverage, we include our consolidated real estate investments, include our preferred
equity and loan investments at cost, include assets we have classified as held for sale, and include any joint venture level indebtedness
in our total indebtedness.

Higher debt levels will cause
us to incur higher interest charges, resulting in higher debt service payments, and may be accompanied by restrictive covenants. Interest
we pay reduces cash available for distribution to stockholders. Additionally, with respect to our variable rate debt, increases in interest
rates increase our interest costs, which reduces our cash flow and our ability to make distributions to you. In addition, if we need
to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties
at times that may not permit realization of the maximum return on such investments and could result in a loss. In addition, if we are
unable to service our debt payments, our lenders may foreclose on our interests in the real property that secures the loans we have entered
into.

As of June 30, 2025,
we had approximately $33.0 million of mortgages payable outstanding that are indexed to the Secured Overnight Financing Rate (“SOFR”),
and our future variable rate debt may bear interest at a rate derived from SOFR. SOFR is a relatively new reference rate. The publication
of SOFR began in April 2018, and, therefore, it has a very limited history. The future performance of SOFR cannot be predicted based
on the limited historical performance. Since the initial publication of SOFR, changes in SOFR have, on occasion, been more volatile than
changes in other benchmark or market rates, such as United States dollar LIBOR. Additionally, any successor rate to SOFR may not have
the same characteristics as SOFR or LIBOR. As a result, the amount of interest we may pay on future variable rate debt indexed to SOFR
is