Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 239

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 239
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 intend to make such investments,
our charter does not limit the amount of gross offering proceeds that we may apply to loan investments. Our charter also does not place
any limit or restriction on the percentage of our assets that may be invested in any type of loan or in any single loan, or the types
of properties subject to mortgages or other loans in which we could invest.

Financing Policy

We intend to use prudent amounts
of leverage in connection with our operations. As of December 31, 2024, our total mortgage indebtedness was approximately $260.6
million, and we had $121.0 million outstanding under our revolving credit facilities. Once we reach sufficient scale, we generally expect
our total indebtedness to be less than 75% of the fair market value of our real estate investments. However, we are not subject to any
limitations on the amount of leverage we may use, and accordingly, the amount of leverage we use may be significantly less or greater
than we currently anticipate. Further, during our ramp-up to scale, we expect that our leverage will fluctuate and for periods of time
will exceed 75% of the fair market value of our real estate investments as appropriate. 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.

Our board of directors will
have the authority to change our financing policies at any time and without stockholder approval. If our board of directors changes our
policies regarding our use of leverage, we expect that it will consider many factors, including the lending standards of lenders in connection
with the financing of residential properties, the leverage ratios of publicly traded REITs with similar investment strategies, the cost
of leverage as compared to expected operating net revenues, and general market conditions.

By operating on a leveraged
basis, we expect to have more funds available for real estate investments and other purposes than if we operated without leverage, which
we believe will allow us to acquire more investments than would otherwise be possible, resulting in a larger and more diversified portfolio.
See “Risk Factors—Risks Related to Our Business, Properties and Industry—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”
for more information about the risks related to operating on a leveraged basis.