Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 324

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 324
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 hedging activities may include entering into interest rate swaps, caps, and floors, options
to purchase such items, and futures and forward contracts. Income and gain from “hedging transactions” will be excluded from
gross income for purposes of both the 75% and 95% gross income tests provided we satisfy the identification requirements discussed below.
A “hedging transaction” means either (1) any transaction entered into in the normal course of our or our Operating Partnership’s
trade or business primarily to manage the risk of interest rate changes, price changes, or currency fluctuations with respect to borrowings
made or to be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, (2) any transaction
entered into primarily to manage the risk of currency fluctuations with respect to any item of income or gain that would be qualifying
income under the 75% or 95% gross income test (or any property which generates such income or gain), and (3) any transaction entered
into to “offset” transactions described in clauses (1) or (2) if a portion of the hedged indebtedness is extinguished
or the related property is disposed of. We are required to clearly identify any such hedging transaction before the close of the day on
which it was acquired, originated, or entered into and to satisfy other identification requirements. We intend to structure any hedging
transactions in a manner that does not jeopardize our qualification as a REIT.

COD Income. From time-to-time, we and our subsidiaries may recognize COD income in connection with repurchasing debt at a discount.
COD income is excluded from gross income for purposes of both the 95% gross income test and the 75% gross income test.

Foreign Currency Gain. Certain foreign currency gains will be excluded from gross income for purposes of one or both of the gross
income tests. “Real estate foreign exchange gain” will be excluded from gross income for purposes of the 75% and 95% gross
income tests. Real estate foreign exchange gain generally includes foreign currency gain attributable to any item of income or gain that
is qualifying income for purposes of the 75% gross income test, foreign currency gain attributable to the acquisition or ownership of
(or becoming or being the obligor under) obligations secured by mortgages on real property or an interest in real property and certain
foreign currency gain attributable to certain “qualified business units” of a REIT. “Passive foreign exchange gain”
will be excluded from gross income