Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 146

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 146
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 for depreciation, could be less informative. We define FFO, consistent with the NAREIT definition, as net
income (loss), computed in accordance with GAAP, excluding gains or losses on sales of depreciable real estate property, plus depreciation
and amortization of real estate assets, plus impairment write-downs of certain real estate assets and investments in entities where the
impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for notes receivable,
preferred equity investments and joint ventures will be calculated to reflect FFO on the same basis.

CFFO makes certain adjustments
to FFO, removing the effect of items that do not reflect ongoing property operations such as acquisition and other transaction costs,
non-cash interest, unrealized gains or losses on derivatives, provision for (recovery of) credit losses, losses on extinguishment of
debt and debt modification costs (includes prepayment penalties incurred and the write-off of unamortized deferred financing costs and
fair market value adjustments of assumed debt), one-time weather-related costs, equity compensation expense, and preferred stock accretion.
We believe that CFFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which
can create significant earnings volatility, but which do not directly relate to our core recurring property operations. As a result,
we believe that CFFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor
of future earnings potential.

Our calculation of CFFO
differs from the methodology used for calculating CFFO by certain other REITs and, accordingly, our CFFO may not be comparable to CFFO
reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance after adjustment for certain non-cash
items, such as depreciation and amortization expenses, and acquisition and other transaction costs that are required by GAAP to be expensed
but may not necessarily be indicative of current operating performance and that may not accurately compare our operating performance
between periods. Furthermore, although FFO and CFFO and other supplemental performance measures are defined in various ways throughout
the REIT industry, we also believe that FFO and CFFO may provide us and our stockholders with an additional useful measure to compare
our financial performance to certain other REITs.

Neither FFO nor CFFO is
equivalent to net income (loss), including net income