Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 187

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 187
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, the availability of the real estate asset
for immediate sale in its present condition, the existence of an active program to locate a buyer, the probable sale of the real estate
asset within one year, and actions required to complete the sale of the real estate asset are likely to occur. Real estate assets classified
as held for sale are reported at the lower of their carrying value or estimated fair value less costs to sell and are presented separately
within operating real estate held for sale, net on the consolidated balance sheets. Refer to Note 4 for further information.

Cash and Cash Equivalents

The
Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value.

Restricted Cash

Restricted
cash includes amounts established pursuant to various agreements which limit the use of funds for specific purposes related to property
preservation and compliance, such as lender-imposed escrow accounts for replacement reserves, tenant deposits, real estate taxes and insurance.

Concentration of Credit
Risk

The
Company maintains cash balances with high-quality financial institutions and periodically evaluates the creditworthiness of such institutions
and believes that the Company is not exposed to significant credit risk. Cash balances may be in excess of the amounts insured by the
Federal Deposit Insurance Corporation.

Rents and Other Receivables

The
Company will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for
estimated losses resulting from the inability of tenants to make required payments under lease agreements. The Company exercises judgment
in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates.

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Table of Contents

Deferred Financing
Fees

Deferred
financing fees represent commitment fees, legal fees and other third-party costs associated with obtaining financing. Fees associated
with the Company’s revolving lines of credit are recorded within accounts receivable, prepaids and other assets on the consolidated
balance sheets. Deferred fees associated with its lines of credit are amortized to interest expense over the terms of the financing agreements
using the straight-line method, which approximates the effective interest method.

Partially Owned Properties’
Noncontrolling Interests

Partially
owned properties’ noncontrolling interests are comprised of the Company’s joint venture partners’ interests in
consolidated joint ventures. The Company reports its joint venture partners’ interest in its consolidated