Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 351

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 351
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) or (2) if a portion of the hedged indebtedness is extinguished
or the related property is disposed of. We are required to clearly identify any such hedging transaction before the close of the day
on which it was acquired, originated, or entered into and to satisfy other identification requirements. We intend to structure any hedging
transactions in a manner that does not jeopardize our qualification as a REIT.

COD Income.
From time-to-time, we and our subsidiaries may recognize COD income in connection with repurchasing debt at a discount. COD income is
excluded from gross income for purposes of both the 95% gross income test and the 75% gross income test.

Foreign Currency Gain. Certain foreign currency gains will be excluded from gross income for purposes of one or both of the gross income
tests. “Real estate foreign exchange gain” will be excluded from gross income for purposes of the 75% and 95% gross
income tests. Real estate foreign exchange gain generally includes foreign currency gain attributable to any item of income or gain
that is qualifying income for purposes of the 75% gross income test, foreign currency gain attributable to the acquisition or
ownership of (or becoming or being the obligor under) obligations secured by mortgages on real property or an interest in real
property and certain foreign currency gain attributable to certain “qualified business units” of a REIT. “Passive
foreign exchange gain” will be excluded from gross income for purposes of the 95% gross income test. Passive foreign exchange
gain generally includes real estate foreign exchange gain as described above, and also includes foreign currency gain attributable
to any item of income or gain that is qualifying income for purposes of the 95% gross income test and foreign currency gain
attributable to the acquisition or ownership of (or becoming or being the obligor under) obligations. These exclusions for real
estate foreign exchange gain and passive foreign exchange gain do not apply to any certain foreign currency gain derived from
dealing, or engaging in substantial and regular trading, in securities. Such gain is treated as nonqualifying income for purposes of
both the 75% and 95% gross income tests.

F ailure to Satisfy Gross Income Tests. If we fail to satisfy one or both of the gross income tests for any taxable year, we nevertheless may qualify
as a REIT for that year if we qualify for relief under certain provisions of the U.S. federal income tax laws. Those relief provisions
are available