Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 69

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 69
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 (3) offset
a transaction described in (1) or (2) if a portion of the hedge indebtedness is extinguished or the related property disposed
of. To the extent that we do not properly identify such transactions as hedges, hedge with other types of financial instruments, or hedge
other types of indebtedness, the income from those transactions is not likely to be treated as qualifying income for purposes of the
75% Gross Income Test and the 95% Gross Income Test. As a result of these rules, we may have to limit the use of hedging techniques that
might otherwise be advantageous, which could result in greater risks associated with interest rate or other changes than we would otherwise
incur.

You may not receive any profits resulting from the sale of one of our properties, or receive such profits in a timely manner, because we may provide financing for the purchaser of such property.

If we liquidate our company,
you may experience a delay before receiving your share of the proceeds of such liquidation. In a forced or voluntary liquidation, we
may sell our properties either subject to or upon the assumption of any then-outstanding mortgage debt or, alternatively, may provide
financing to purchasers. We may take a purchase-money obligation secured by a mortgage as partial payment. We do not have any limitations
or restrictions on our taking such purchase-money obligations. To the extent that we receive promissory notes or other property instead
of cash from sales, such proceeds, other than any interest payable on those proceeds, will not be included in net sale proceeds until
and to the extent the promissory notes or other property are actually paid, sold, refinanced or otherwise disposed of. In certain cases,
we may receive initial down payments in the year of sale in an amount less than the selling price and subsequent payments may be spread
over a number of years. In such cases, you may experience a delay in the distribution of the proceeds of a sale until such time.

We are subject to increasing scrutiny from investors with respect to the social and environmental impact of our business, which may adversely impact our business and ability to raise capital from such investors.

In recent years, certain
investors have placed increasing importance on the implications of our business with respect to Environmental, Social, and Governance
(“ESG”) matters. Investors’ increased focus and activism related to ESG and similar matters may constrain our business
operations. In addition, investors may decide to refrain from investing in us as a result of their assessment