Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 147

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 147
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 | $ | 9,863 |     | $ | 8,180 |

New development represents
the expenditures for the planning, land development, and construction of residential homes and communities. Redevelopment and renovation
costs are non-recurring capital expenditures for significant projects such as preparing a unit for rental. The renovation work varies, but may include flooring, cabinetry, paint, plumbing, appliances and other items required
to make the unit rent ready. Routine capital expenditures are necessary non-revenue generating improvements that extend the useful life
of the property, such as roof repairs and concrete work/asphalt resurfacing. Normally recurring capital expenditures are necessary non-revenue
generating improvements that occur on a regular ongoing basis, such as flooring and appliances.

Funds from Operations and Core Funds from Operations Attributable to Common Stockholders and Unit Holders

We believe that funds from
operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), and core
funds from operations (“CFFO”) are important non-GAAP supplemental measures of operating performance for a REIT.

FFO attributable to common
stockholders and unit holders is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We
consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property
portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets
requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably
over time. Since real estate values historically rise and fall with market conditions, presentations of operating results for a REIT,
using historical accounting for depreciation, could be less informative. We define FFO, consistent with the NAREIT definition, as net
income (loss), computed in accordance with GAAP, excluding gains or losses on sales of depreciable real estate property, plus depreciation
and amortization of real estate assets, plus impairment write-downs of certain real estate assets and investments in entities where the
impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for notes receivable,
preferred equity investments and joint ventures will be calculated to reflect FFO on the same basis.

CFFO makes certain adjustments
to FFO, removing the effect of items that do not reflect ongoing property operations such as acquisition and other transaction costs