Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 88

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 88
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 which we were held liable by such
third parties, any indemnification received may be insufficient to fully offset the financial impact of such liabilities, or we may be
temporarily required to bear these losses while seeking recovery from Bluerock Residential and/or New LLC, which may have a material
adverse effect on our business, financial condition and results of operations.

RISKS RELATED TO THIS OFFERING

To the extent that our distributions represent a return of capital for tax purposes, stockholders may recognize an increased gain or a reduced loss upon subsequent sales (including cash redemptions) of their shares of Series B Redeemable Preferred Stock.

The dividends payable by
us on the Series B Redeemable Preferred Stock may exceed our current and accumulated earnings and profits as determined for U.S.
federal income tax purposes. If that were to occur, it would result in the amount of distributions that exceed our earnings and profits
being treated first as a return of capital to the extent of the stockholder’s adjusted tax basis in the stockholder’s Series B
Redeemable Preferred Stock and then, to the extent of any excess over the stockholder’s adjusted tax basis in the stockholder’s
Series B Redeemable Preferred Stock, as capital gain. Any distribution that is treated as a return of capital will reduce the stockholder’s
adjusted tax basis in the stockholder’s Series B Redeemable Preferred Stock, and subsequent sales (including cash redemptions)
of such stockholder’s Series B Redeemable Preferred Stock will result in recognition of an increased taxable gain or reduced
taxable loss due to the reduction in such adjusted tax basis.

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Because we conduct substantially all of our operations through our Operating Partnership, our ability to pay dividends on our Series B Redeemable Preferred Stock will depend almost entirely on the distributions we receive from our Operating Partnership. We may not be able to pay dividends regularly on our Series B Redeemable Preferred Stock.

We
may not be able to pay dividends on a regular quarterly basis in the future on our Series B Redeemable Preferred Stock. We intend
to contribute the entire net proceeds from this offering of our Series B Redeemable Preferred Stock to our Operating Partnership
in exchange for units of limited partnership interest in our Operating Partnership that have substantially the same economic terms as
the Series B Redeemable Preferred Stock (“Series B Redeemable Preferred Units”). Because we conduct substantially
all of our operations through our Operating Partnership, our ability to