Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 103

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 103
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 dividends
constitute “qualified business income,” and thus a 20% deduction is available to individual taxpayers with respect to such
dividends, resulting in a 29.6% maximum U.S. federal income tax rate (plus the 3.8% surtax on net investment income, if applicable) for
individual U.S. stockholders. However, to qualify for this deduction, the stockholder receiving such dividends must hold the dividend-paying
REIT stock for at least 46 days (considering certain special holding period rules) of the 91-day period beginning 45 days before the stock
becomes ex-dividend, and cannot be under an obligation to make related payments with respect to a position in substantially similar or
related property. The more-favorable rates applicable to regular corporate distributions could cause investors who are individuals to
perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay distributions,
which could adversely affect the value of our common stock. See “Material U.S. Federal Income Tax Considerations—Taxation
of Taxable U.S. Stockholders.”

We may enter into certain hedging transactions that may have a potential impact on our REIT qualification.

From time to time, we may
enter into hedging transactions with respect to one or more of our assets or liabilities. Our hedging activities may include entering
into interest rate and/or foreign currency swaps, caps, and floors, options to purchase these items, and futures and forward contracts.
Income and gain from “hedging transactions” that we enter into to hedge indebtedness incurred or to be incurred to acquire
or carry real estate assets, or to hedge existing hedging positions after any portion of the related debt or property is extinguished
or disposed of, and that are clearly and timely identified as such will be excluded from both the numerator and the denominator for purposes
of the gross income tests that apply to REITs. Moreover, any income from a transaction entered into primarily to manage risk of currency
fluctuations with respect to any item of income that would be qualifying REIT income under the REIT gross income tests, and any gain from
the unwinding of any such transaction, does not constitute gross income for purposes of the REIT gross income tests. To the extent that
we do not properly identify such transactions as hedges or we hedge with other types of financial instruments, or hedge other types of
indebtedness, the income from