Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 150

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 150
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 have preferred equity
interests in properties that are in various stages of development and in lease-up, and our preferred equity investments are structured
to provide a current and/or accrued preferred return during all phases. Each joint venture in which we own a preferred equity interest
is required to redeem our preferred equity interests, plus any accrued preferred return, based on a fixed maturity date, generally in
relation to the property’s construction loan or mortgage loan maturity. Upon redemption of the preferred equity interests, our income,
FFO, CFFO and cash flows could be reduced below the preferred returns currently being recognized. Alternatively, if the joint ventures
do not redeem our preferred membership interest when required, our income, FFO, CFFO and cash flows could be reduced if the development
project does not produce sufficient cash flow to pay its operating expenses, debt service and preferred return obligations. We previously
held notes receivable investments that were structured as senior loans. In the future, we may make additional notes receivable investments
structured as senior loans or through mezzanine financing. The notes receivable provided a current stated return and required repayment
based on a fixed maturity date. If the property did not repay the notes receivable upon maturity, our income, FFO, CFFO and cash flows
could have been reduced below the stated returns if the property did not produce sufficient cash flow to pay its operating expenses and
debt service, or to refinance its debt obligations. As we evaluate our capital position and capital allocation strategy, we may consider
alternative means of financing our development loan and preferred equity investment activities at the subsidiary level.

Off-Balance Sheet Arrangements

As of June 30, 2025,
we have off-balance sheet arrangements that may have a material effect on our financial condition, revenues or expenses, results of operations,
liquidity, capital resources or capital expenditures. At June 30, 2025, we hold preferred equity interests in six joint ventures
that are accounted for as available-for-sale debt securities.

Cash Flows from Operating Activities

As of June 30, 2025,
we held twenty-one real estate investments, consisting of fifteen consolidated investments and six preferred equity investments, with
the twenty-one investments representing an aggregate of 5,038 residential units. During the six months ended June 30, 2025, net cash
provided by operating activities was $14.8 million after net loss of $13.2 million was adjusted for the following:

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