Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 69

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 69
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 obtain funds to acquire additional investments or to pay distributions to our stockholders. We also may borrow funds
if necessary to satisfy the requirement that we distribute at least 90% of our REIT taxable income, determined without regard to the deduction
for dividends paid and excluding net capital gains, to our stockholders annually, or otherwise as is necessary or advisable to assure
that we maintain our qualification as a REIT for U.S. federal income tax purposes.

There is no limit on the amount
we may invest in any single property or other asset or on the amount we can borrow to purchase any individual property or other investment.
If we mortgage a property and have insufficient cash flow to service the debt, we risk an event of default which may result in our lenders
foreclosing on the properties securing the mortgage.

If we cannot repay or refinance
loans incurred to purchase our properties, or interests therein, then we may lose our interests in the properties secured by the loans
we are unable to repay or refinance.

High levels of debt or increases in interest rates could increase the amount of any future loan payments, which could reduce the cash available for distribution to stockholders.

Our policies do not limit
us from incurring debt. For purposes of calculating our leverage, we include our consolidated real estate investments, include our preferred
equity and loan investments at cost, include assets we have classified as held for sale, and include any joint venture level indebtedness
in our total indebtedness.

Higher debt levels will cause
us to incur higher interest charges, resulting in higher debt service payments, and may be accompanied by restrictive covenants. Interest
we pay reduces cash available for distribution to stockholders. Additionally, with respect to our variable rate debt, increases in interest
rates increase our interest costs, which reduces our cash flow and our ability to make distributions to you. In addition, if we need to
repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties
at times that may not permit realization of the maximum return on such investments and could result in a loss. In addition, if we are
unable to service our debt payments, our lenders may foreclose on our interests in the real property that secures the loans we have entered
into.

As of
September 30, 2025, we had approximately $137.9 million of mortgages payable and revolving credit facilities outstanding that
are indexed to the Secured Overnight Financing Rate (“SOFR