Company: BHM
Filing Date: 2025-05-09
Form Type: 424B3
Source: 0001104659-25-046667
Chunk: 51

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-05-09
Form: 424B3
Chunk 51
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 2025, we may also selectively sell consolidated operating assets at appropriate times, which
would be expected to generate cash sources for both our short-term and long-term liquidity needs.

We
may also meet our long-term liquidity needs through borrowings from a number of sources, either at the corporate or project level. We
believe our revolving credit facility will serve as our primary debt source that will continue to enable us to deploy our capital more
efficiently and provide capital structure flexibility as we grow our asset base. In addition to restrictive covenants, our revolving credit
facility contains material financial covenants. At March 31, 2025, we were in compliance with all covenants under our credit facility.
We will continue to monitor the debt markets, including Fannie Mae and Freddie Mac, and as market conditions permit, access borrowings
that are advantageous to us.

If
we are unable to obtain financing on favorable terms or at all, we would likely need to curtail our investment activities, including acquisitions
and improvements to and developments of real properties, which could limit our growth prospects. This, in turn, could reduce cash available
for distribution to our stockholders and may hinder our ability to raise capital by issuing more securities or borrowing more money. We
also may be forced to dispose of assets at inopportune times to maintain REIT qualification and Investment Company Act exemption.

We
expect to maintain a distribution on our Series A Preferred Stock in accordance with the terms which require monthly dividends. While
our distributions through March 31, 2025 have been paid from cash flow from operations and in accordance with our policy, distributions
in the future may be paid from cash flow from operations, proceeds from the offering of our Series A Preferred Stock, the sales of assets
and additional sources, such as from borrowings.

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We have notes receivable in conjunction with properties that are in lease-up. To date, these investments have been structured as senior loans, and in the future, we may also provide mezzanine financing to these types of projects. The notes receivable provide a current stated return and require repayment based on a fixed maturity date. If the property does not repay the notes receivable upon maturity, our income, FFO, CFFO and cash flows could be reduced below the stated returns currently being recognized if the property does not produce sufficient cash flow to pay its operating expenses and debt service, or to refinance its debt