Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 97

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 97
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 is not obligated to, pursue the internalization of the functions performed for us by our Manager through
the acquisition of our Manager or similar transaction through which we would bring onboard our Manager’s management team. The method
by which we could internalize these functions could take many forms, and may require agreement with the Manager. While we believe that
there may be substantial benefits to internalization of management functions at the appropriate time, there is no assurance that internalization
will be beneficial to us and our stockholders, and internalizing our management functions could reduce earnings per share and funds from
operation per share. For example, we may not realize the perceived benefits or we may not be able to properly integrate a new staff of
managers and employees or we may not be able to effectively replicate the services provided previously by our Manager or its affiliates.
Internalization transactions involving the internalization of managers affiliated with entity sponsors have also, in some cases, been
the subject of litigation. Even if these claims are without merit, we could be forced to spend significant amounts of money defending
claims which would reduce the amount of funds available for us to invest in properties or other investments to pay distributions. All
these factors could have a material adverse effect on our results of operations, financial condition and ability to pay distributions.

Risks Related to the Separation and Distribution

Bluerock Residential may fail to perform under various transaction agreements executed as part of the Separation.

In
connection with the Separation and prior to the Distribution, we, Bluerock Residential, and certain other parties entered into the Separation
and Distribution Agreement and various other agreements, including the Tax Matters Agreement. The Separation and Distribution Agreement
and the Tax Matters Agreement, together with the documents and agreements by which the internal reorganization was effected, determined
the allocation of assets and liabilities between the companies following the Separation for those respective areas and included indemnifications
related to liabilities and obligations. We will rely on Bluerock Residential to satisfy its performance and payment obligations under
these agreements. If Bluerock Residential is unable or unwilling to satisfy its obligations under these agreements, including its indemnification
obligations, we could incur operational difficulties and/or losses.

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Table of Contents

Potential indemnification obligations owed to Bluerock Residential pursuant to the Separation and Distribution Agreement may have a material adverse effect on our business, financial condition and results of operations.

The
Separation and Distribution Agreement provides for, among other things,