Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 98

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 98
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 the principal corporate transactions required to effect the Separation
and the Distribution, certain conditions to the Separation and the Distribution and provisions governing our relationship with Bluerock
Residential with respect to and following the Distribution. Among other things, the Separation and Distribution Agreement provides for
indemnification obligations designed to make us financially responsible for substantially all liabilities that may exist related to our
business activities. If we are required to indemnify Bluerock Residential under the circumstances set forth in the Separation and Distribution
Agreement, we may be subject to substantial liabilities, which may have a material adverse effect on our business, financial condition
and results of operations.

Pursuant to the Separation and Distribution Agreement and the Tax Matters Agreement, Bluerock Residential and Badger Holdco LLC, a Delaware limited liability company (“New LLC”), have indemnified us for certain pre-Distribution liabilities and liabilities related to the legacy Bluerock Residential assets. However, there can be no assurance that these indemnities will be sufficient to insure us against the full amount of such liabilities, or that Bluerock Residential’s or New LLC’s ability to satisfy their indemnification obligations will not be impaired in the future.

Pursuant
to the Separation and Distribution Agreement and the Tax Matters Agreement, Bluerock Residential and New LLC have indemnified us for certain
liabilities. However, third parties could seek to hold us responsible for any of the liabilities that Bluerock Residential retains, and
there can be no assurance that Bluerock Residential and/or New LLC will be able to fully satisfy their indemnification obligations to
us. Moreover, even if we ultimately succeed in recovering from Bluerock Residential or New LLC any amounts for 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 Offerings of our Series A Preferred Stock

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 A Preferred Stock.

The
dividends payable by us on the Series A Preferred Stock may exceed our current and accumulated earnings and profits as determined for
U.S. federal income