Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 213

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 213
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| Fair value (2)                                           | ​ | $    | 11,090 | ​ | $    |  8,660 |

| (1) | Impairment                                                                                                                        
 amounts are included in gain on sale and (impairment) of real estate investments, net in the Company’s consolidated statements of 
 operations and comprehensive income.                                                                                              |

| (2) | Real                                                                                                                                     
 estate assets classified as held for sale are reported at the lower of their carrying value or estimated fair value less costs to sell   
 and are presented separately within operating real estate held for sale, net on the Company’s consolidated balance sheets. The estimated 
 fair value is based on discussions with third party brokers, historical sales experience, and current market conditions.                 |

F-28

Table of Contents

Fair Value Measurements
on a Nonrecurring Basis

The
Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its operating real estate
and related intangible assets may not be recoverable. If the Company does not believe that it will be able to recover the carrying value
of operating real estate, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair
value of the operating real estate based on discounted cash flows of the operating asset using inputs that fall within Level 3 of the
fair value hierarchy. During 2024, the Lubbock, Texas submarket experienced deterioration, and as a result, the Company recorded a $1.4
million impairment loss on the Peak JV 2 portfolio as of December 31, 2024, which is included in gain on sale and (impairment) of real
estate investments, net in its consolidated statements of operations and comprehensive income. The Peak JV 2 portfolio is included in
the scattered single-family homes segment. No impairment losses on operating real estate and related intangible assets were recorded in
2023.

Derivative Financial
Instruments

The
estimated fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash
flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including
the period to maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair value of
interest rate caps is determined using the market-standard methodology of discounting the future expected cash receipts which would occur
if floating interest rates rise above the strike rate of the caps. The floating interest rates used in the calculation of