Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 189

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 189
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, dividends may exceed net income under accounting
principles generally accepted in the United States of America (“GAAP”) because of non-cash expenses, mainly depreciation and
amortization expense, which are included in net income. To the extent that funds available for distribution are less than the amount required
to be distributed to stockholders to satisfy the requirements to maintain its REIT status, the Company may consider various means to cover
any such shortfall, including borrowing under loans, selling certain assets or using a portion of the net proceeds from future offerings
of equity, equity-related securities or debt securities or declaring taxable share dividends. In addition, the Company’s charter
allows the issuance of preferred equity shares that could have a preference on dividends, and such dividend preference on the preferred
equity could limit the ability to pay dividends to the holders of the Company’s common stock.

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Table of Contents

Income Taxes

The
Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, and has qualified
since the taxable year ended December 31, 2022. To qualify as a REIT, the Company must meet certain organizational and operational requirements,
including a requirement to distribute at least 90% of its annual REIT taxable income to stockholders (which is computed without regard
to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP).
As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders.
Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property,
and federal income and excise taxes on its undistributed income. If the Company fails to qualify as a REIT in any taxable year, the Company
will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted
to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification
is lost, unless the Internal Revenue Service grants it relief under certain statutory provisions. Such an event could materially adversely
affect the Company’s net income (loss) and net cash available for distribution to stockholders. However, the Company intends to
continue to organize and operate in such a manner as to remain