Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 133

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 133
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 of 6% annually, calculated and paid monthly. Commencing in November 2023, the Series A Preferred
Stock additional contingent special dividend was declared for each month for which the Board declared the regular monthly dividend of
$0.125 per outstanding share of Series A Preferred Stock. In May 2024, we announced the payment of an enhanced special dividend
replacing the additional contingent special daily dividend. The enhanced special dividend is aggregated with the regular monthly dividend
so as to effect a dividend rate of the average one-month Term SOFR rate plus two percent, subject to a 6.5% minimum and an 8.5% maximum
annual rate, calculated and paid monthly. Commencing in May 2024, the Series A Preferred enhanced special dividend was declared
for each month for which the Board declared the regular monthly dividend of $0.125 per outstanding share of Series A Preferred Stock.

Stockholders’ Equity

Our total stockholders’
equity decreased $8.0 million from $147.4 million as of December 31, 2023 to $139.4 million as of December 31, 2024. The decrease
in our total stockholders’ equity is primarily attributable to $2.2 million related to the acquisition of noncontrolling interests,
preferred dividends declared of $4.0 million, and an adjustment of $2.3 million for noncontrolling interest ownership in the Operating
Partnership, partially offset by net income of $0.4 million.

Industry Outlook

The residential rental industry
has historically been more resilient to economic cycles than other commercial real estate sectors and is currently benefiting from significant
industry tailwinds that began during the pandemic. We believe industry dynamics present a compelling investment opportunity for us, including:

| · | Renting currently                                                                                                                          
 represents a significant cost saving to homeownership, and the recent increases in both housing prices and mortgage rates have exacerbated 
 the difference. This is expected to continue into the future and will force the millennial generation to rent for longer as they           
 enter their household formation years.                                                                                                     |

| · | Demand fundamentals                                                                                                                 
 are strong and strengthening further, particularly from rental-biased and debt-burdened millennials now reaching peak homeownership 
 age. We believe that a continued upswing in propensity to rent, coupled with the limited and descending supply of housing options,  
 signals significant opportunity in the residential rental industry.                                                                 |

| · | Residential                                                                                                                                
 rental production has been below historical levels since