Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 188

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 188
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 real estate joint ventures
and other subsidiary interests held by third parties as noncontrolling interests. The Company records these noncontrolling interests at
their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income
or loss and equity contributions and distributions. These noncontrolling interests are not redeemable by the equity holders and are presented
as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder pursuant to each joint venture’s
operating agreement.

Revenue Recognition

The
Company recognizes rental revenue on a straight-line basis over the terms of the rental agreements and in accordance with ASC Topic 842
Leases. Rental revenue is recognized on an accrual basis and when the collectability of the amounts
due from tenants is deemed probable. Rental revenue is included within rental and other property revenues on the Company’s consolidated
statements of operations and comprehensive income. Amounts received in advance are recorded as a liability within other accrued liabilities
on the Company’s consolidated balance sheets.

Other
property revenues are recognized in the period earned.

The
Company recognizes a gain or loss on the sale of real estate assets when the criteria for an asset to be derecognized are met, which include
when (i) a contract exists and (ii) the buyer obtains control.

Stock-Based Compensation

The
Company expenses the fair value of share awards in accordance with the fair value recognition requirements of ASC Topic 718 Compensation-Stock Compensation. ASC Topic 718 requires companies to measure the cost of the recipient services received in exchange for an award of
an equity instrument based on the grant-date fair value of the award. The cost of the share award is expensed over the requisite service
period (usually the vesting period).

Distribution Policy

The
Company expects to authorize and declare regular cash distributions to its stockholders to maintain its REIT status. Distributions to
stockholders will be determined by the Company’s board of directors (the “Board”) and will be dependent upon a number
of factors, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital
expenditure requirements, and annual distribution requirements to maintain the Company’s status as a REIT, and other considerations
as the Board may deem relevant. Distributions are recorded as a reduction of stockholders’ equity in the period in which they are
declared.

Dividends
may be funded from a variety of sources. In particular, the Company expects that, initially