Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 212

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 212
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 to Note 7 for further information). These investments were previously classified as held-to-maturity debt securities and were carried         
 at cost at December 31, 2023; however, as these investments were reclassified from held-to-maturity debt securities to AFS debt securities    
 in 2024, these investments were carried at fair value at December 31, 2024. The Company measures the fair value of its AFS preferred equity   
 investments utilizing observable and unobservable market inputs. The observable market inputs include recent transactions and broker quotes   
 (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for the                    
 AFS preferred equity investments has also utilized significant unobservable inputs in discounted cash flow models based on recent performance 
 of the collateral, the underlying collateral characteristics, industry trends as well as expectations of macroeconomic events. At each        
 measurement date, the Company considers both the observable and unobservable valuation inputs in the determination of fair value. However,    
 given the significance of the unobservable inputs, the fair values of AFS preferred equity investments are classified in Level 3 of the       
 fair value hierarchy.                                                                                                                         |

| (2) | The                                                                                                                                         
 carrying values of the mortgages payable include ($2,400) and $916 of unamortized fair value debt adjustments and exclude $5,416 and $951   
 of deferred financing costs at December 31, 2024 and 2023, respectively. The fair value of mortgages payable is estimated based on interest 
 rates obtained from third party lenders for similar types of borrowing arrangements.                                                        |

The Company’s operating units classified as held for sale for which it has recorded impairments, measured at fair value on a non-recurring basis, for the years ended December 31, 2024 and 2023 are summarized in the table below (amounts in thousands):

| ​                                                        
 ​                                                        
 Investment                                               
 in operating units classified as held for sale (Level 3) | ​ | ​    
 2024 
 ​    |      ​ | ​ | ​    
 2023 
 ​    |      ​ |
|:---------------------------------------------------------|:--|:-----|-------:|:--|:-----|-------:|
| Pre-impairment amount                                    | ​ | $    | 13,631 | ​ | $    |  9,990 |
| Total impairments (1)                                    | ​ |      | -2,541 | ​ |      | -1,330 |