Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 160

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 160
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, the financial statements for interim reporting do not include all the information and notes or disclosures required
by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered
necessary for a fair presentation have been included. Operating results for interim periods should not be considered indicative of the
operating results for a full year.

The balance sheet at December 31,
2024 has been derived from the audited financial statements at that date but does not include all the information and disclosures required
by GAAP for complete financial statements. It is suggested that these condensed financial statements be read in conjunction with the financial
statements and notes thereto included in our audited consolidated financial statements for the year ended December 31, 2024 contained
in the Annual Report on Form 10-K as filed with the SEC on March 20, 2025.

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Use of Estimates

The preparation of the financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.

New Accounting Pronouncements

In November 2024, the
FASB issued Accounting Standards Update No. 2024-03 “Disaggregation of Income Statement Expenses (Subtopic 220-40)” (“ASU
2024-03”). The amendments in ASU 2024-03 require additional disclosure of specified information about certain costs and expenses
within the notes to the financial statements. The amendments in ASU 2024-03 are effective for us for annual reporting periods beginning
after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact
of adopting ASU 2024-03 on our financial disclosures.

Current Expected Credit Losses (CECL)

Preferred Equity Investments

We perform an individual
assessment of expected credit losses for our preferred equity investments, which are accounted for as AFS debt securities, that have an
unrealized loss recorded at the reporting date. We first evaluate whether we intend to sell, or it is more likely than not that we will
be required to sell, the AFS debt security before recovery of our amortized cost basis. If either criteria regarding intent or requirement
to sell is met, the