Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 80

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 80
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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 and/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 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 A Redeemable Preferred Stock.

The dividends payable by us
on the Series A 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