Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 134

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 134
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 Investment Officer
and Chief Financial Officer, do not distinguish or group operations on a geographic, tenant or other basis when assessing the financial
performance of our portfolio of properties/investments.

Residential communities segment
includes the acquisition, ownership, management, renovation, construction, and development of residential communities, which include both
detached single-family home communities and attached unit communities such as apartments, townhouses, and duplexes. Each residential community
is, generally, located on a single, contiguous land parcel and has amenities including clubhouses, gyms, pools and common areas. In addition,
these residential communities typically have onsite property management.

Scattered single-family homes segment includes the acquisition, ownership, management, and renovation of scattered single-family homes, which are, generally,
detached homes with no onsite property management.

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Inflation and Related Economic Volatility

While inflationary pressures
have shown signs of moderation, we continue to monitor increases in inflation and rising interest rates and resulting economic changes
in credit and capital markets. Inflation and its related impacts, including increased prices for services and goods and higher interest
rates and wages, and any policy interventions by the U.S. government, could negatively impact our residents’ ability to pay rents
and our results of operations. Substantially all our leases are for a term of one year or less, which we believe mitigates our exposure
to inflation, by permitting us to set rents commensurate with inflation (subject to rent regulations to the extent they apply and assuming
our current or prospective residents will accept and can pay commensurate increased rents, of which there can be no assurance). Inflation
could outpace any increases in rent and adversely affect us. We may not be able to mitigate the effects of inflation and related impacts,
and the duration and extent of any prolonged periods of inflation, and any such related adverse effects on our results of operations and
financial condition are unknown at this time. Inflation may also cause increased volatility in financial markets, which could affect our
ability to access the capital markets or impact the cost or timing at which we are able to do so. Inflation may also increase the costs
to complete our development projects, including costs of materials, labor and services from third-party contractors and suppliers. Higher
construction costs could adversely impact our investments in real estate assets and our expected yields on development projects.

Additionally, developments
in the banking industry in early 2023 caused uncertainty and concern regarding the strength of the banking