Company: BHM
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001104659-25-077615
Chunk: 111

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 111
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 our consolidated operating investments were approximately 91.4% occupied; excluding units classified as held for sale and down/renovation units, our consolidated operating investments were approximately 93.2% occupied. We have elected to be treated, and currently qualify, as a REIT for federal income tax purposes. As a REIT, we generally are not subject to corporate-level income taxes. To maintain our REIT status, we are required, among other requirements, to distribute annually at least 90% of our “REIT taxable income,” as defined by the Internal Revenue Code of 1986, as amended (the “Code”), to our stockholders. If we fail to qualify as a REIT in any taxable year, we would be subject to federal income tax on our taxable income at regular corporate tax rates and we would not be permitted to qualify as a REIT for four years following the year in which we lost our qualification. Such an event could materially and adversely affect our net income and results of operations. We intend to continue to organize and operate in such a manner as to remain qualified as a REIT.

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Table of Contents

Industry Segments

We
own and operate residential real estate assets that generate rental and other property-related income through the leasing of residential
units to a diverse base of tenants. We view our residential real estate assets as two reportable segments, consisting of (i) residential
communities and (ii) scattered single-family homes. Our Chief Operating Decision Makers, which are our Chief Executive Officer, Chief
Investment Officer and Chief Financial Officer, do not distinguish or group operations on a geographic, tenant or other basis when assessing
the financial performance of our portfolio of properties/investments.

Residential communities segment includes the acquisition, ownership, management, renovation, construction, and development of residential communities,
which include both detached single-family home communities and attached unit communities such as apartments, townhouses, and duplexes.
Each residential community is, generally, located on a single, contiguous land parcel and has amenities including clubhouses, gyms, pools
and common areas. In addition, these residential communities typically have onsite property management.

Scattered single-family homes segment includes the acquisition, ownership, management, and renovation of scattered single-family homes, which
are, generally, detached homes with no onsite property management.

Inflation and Related Economic Volatility

While
inflationary pressures have shown signs of moderation, we continue to monitor increases in inflation and rising interest rates and resulting
economic changes in credit