Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 150

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 150
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. 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 (loss) attributable to common stockholders