Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 124

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 124
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 prudent
amounts of leverage in connection with our operations. As of December 31, 2024, our total mortgage indebtedness was approximately
$260.6 million, and we had $121.0 million outstanding under our revolving credit facilities. Once we reach sufficient scale, we generally
expect our total indebtedness to be less than 75% of the fair market value of our real estate investments. However, we are not subject
to any limitations on the amount of leverage we may use, and accordingly, the amount of leverage we use may be significantly less or
greater than we currently anticipate. Further, during our ramp-up to scale, we expect that our leverage will fluctuate and for periods
of time will exceed 75% of the fair market value of our real estate investments as appropriate. For purposes of calculating our leverage,
we include our consolidated real estate investments, include our preferred equity and loan investments at cost, include assets we have
classified as held for sale, and include any joint venture level indebtedness in our total indebtedness.

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DISTRIBUTION POLICY</div>

We intend to maintain our
qualification as a REIT for U.S. federal income tax purposes. The Code generally requires that a REIT annually distribute at least 90%
of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain, and imposes
tax on any taxable income retained by a REIT, including capital gains.

To satisfy the requirements
for qualification as a REIT and generally not be subject to U.S. federal income and excise tax, we intend to make regular distributions
of all or substantially all of our REIT taxable income, determined without regard to dividends paid, to our stockholders out of assets
legally available for such purposes. All future distributions will be determined at the sole discretion of our board of directors on
a quarterly basis. When determining the amount of future distributions, we expect that our board of directors will consider, among other
factors, (i) the amount of cash generated from our operating activities, (ii) our expectations of future operating cash flows,
(iii) our determination of near-term cash needs for acquisitions of new properties, development investments, general property capital
improvements and debt repayments, (iv) our ability to continue to access additional sources of capital, (v) the requirements
of Maryland law, (vi) the amount required to be distributed to maintain our qualification as a