Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 81

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 81
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 may pay on future variable rate debt indexed to
SOFR is difficult to predict.

High mortgage rates may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire, our cash flow from operations and the amount of cash distributions we can make.

To
maintain our qualification as a REIT, we will be required to distribute at least 90% of our REIT taxable income (determined without regard
to the deduction for dividends paid and excluding net capital gains) to our stockholders in each taxable year, and thus our ability
to retain internally generated cash is limited. Accordingly, our ability to acquire properties or to make capital improvements to or remodel
properties will depend on our ability to obtain debt or equity financing from third parties or the sellers of properties. If mortgage
debt is unavailable at reasonable rates, we may not be able to finance the purchase of properties. If we place mortgage debt on properties,
we run the risk of being unable to refinance the properties when the debt becomes due or of being unable to refinance on favorable terms.
If interest rates are higher when we refinance the properties, our income could be reduced. We may be unable to refinance properties.
If any of these events occurs, our cash flow would be reduced. This, in turn, would reduce cash available for distribution to you and
may hinder our ability to raise capital by issuing more stock or borrowing more money.

Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to you.

When
providing financing, a lender may impose restrictions on us that affect our distribution and operating policies and our ability to incur
additional debt. Loan documents we enter into may contain covenants that limit our ability to further mortgage the property, discontinue
insurance coverage or impose other limitations. These or other limitations may limit our flexibility and prevent us from achieving our
operating plans.

If mortgage debt is unavailable at reasonable rates, it may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire, our cash flows from operations and the amount of cash distributions we can make.

If
we are unable to borrow monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties
we can purchase, and the return on the properties we do purchase may be lower. If we place mortgage debt on properties, we run the risk
of being