Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 70

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 70
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 entered into by subsidiaries of our Operating Partnership in connection with the DST Program may subject us to risk.

Pursuant to our DST Program, we, through subsidiaries of our Operating Partnership, will hold long-term leasehold interests in properties held by Delaware statutory trusts, the beneficial interests of which are sold to investors, pursuant to a Master Lease (each such property, a “DST Property”). In connection with each Master Lease, our Operating Partnership has entered into a demand note with the subsidiary of our Operating Partnership that acts as the Master Tenant for such DST Property. Under each Master Lease, we will be responsible for subleasing the relevant DST Property to occupying tenants, which means that the Master Tenant under the Master Lease bears the risk that the underlying cash flow from a DST Property may be less than the Master Lease payments. As a result, if a DST Property experiences negative performance, the applicable Master Tenant could demand funding pursuant to the demand note if the net operating cash flow is insufficient to pay the rent required under the Master Lease (subject to limited deferral rights) or to satisfy its other obligations under the Master Lease, which could affect cash available for distributions to our stockholders and could have an adverse effect on our results of operations.For additional information, see “Management’s Discussion and Analysis of Financial Conditions
and Results of Operations—Liquidity and Capital Resources.”

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program could subject us to liabilities from litigation or otherwise.

We, through the Operating Partnership, have commenced a program to raise capital in private placements exempt from registration under Section 506(c) of
the Securities Act through the sale of beneficial interests in specific Delaware statutory trusts, or DSTs, holding real properties, which
may include properties currently indirectly owned by the Operating Partnership.

These interests may serve
as replacement properties for investors seeking to complete like-kind exchange transactions under Section 1031 of the Code. Properties
in which underlying interests are sold to investors pursuant to such private placements will be leased-back by the Operating Partnership
or a wholly owned subsidiary thereof, as applicable, and fully guaranteed by the Operating Partnership, although there can be no assurance
that the Operating Partnership can or will fulfill these guarantee obligations. Additionally, the Operating Partnership will be given
the FMV Option with respect to each DST in the DST Program, giving it the right, but not the obligation, to acquire the interests in the
DST from the investors at a later time in exchange for OP Units. Investors who acquired interests pursuant to