Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 12

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 12
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appeal to our residents’ desire for a “sense of community” by creating places to gather, socialize and interact in
an amenity-rich environment. We believe this creates an enhanced perception of value among residents, allowing for premium rental rates
and improved resident retention.

Diversify Across Markets, Strategies and Investment Size. We will seek to grow our institutional portfolio of residential properties diversified
by geography and by investment strategy and by size to manage concentration risk, while driving both current income and capital appreciation
throughout the portfolio. Our network enables us to diversify across multiple markets and multiple strategies efficiently, without the
logistical burden and time delay of building operating infrastructure in multiple markets and across multiple investment strategies.

Harvest and Redeploy Capital Selectively. On an opportunistic basis and subject to compliance with REIT restrictions, we intend to sell properties
when we have executed our value creation plans and when we believe the investment has limited additional upside relative to other opportunities.
This allows us to harvest profits and reinvest proceeds to maximize stockholder value.

For more information, see “Our Business
and Properties—Growth Strategies.”

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Market and Investment Opportunity

The residential rental industry
has historically been more resilient to economic cycles than other commercial real estate sectors and is currently benefiting from significant
industry tailwinds that began during the COVID-19 pandemic. We believe industry dynamics present a compelling investment opportunity
for us, including:

| · | Renting                                                                                                                             
 currently represents a significant cost saving to homeownership, and the recent increases in both housing prices and mortgage rates 
 have exacerbated the difference. This is expected to continue into the future and will force the millennial generation to rent      
 for longer as they enter their household formation years.                                                                           |

| · | Demand fundamentals                                                                                                                 
 are strong and strengthening further, particularly from rental-biased and debt-burdened millennials now reaching peak homeownership 
 age. We believe that a continued upswing in propensity to rent, coupled with the limited and descending supply of housing options,  
 signals significant opportunity in the residential rental industry.                                                                 |

| · | Residential                                                                                                                         
 rental production has been below historical levels since the end of the Great Financial Crisis. This, coupled with lack of new      
 housing supply and a significant decrease in apartment construction following 2024, is expected to create an ideal environment for  
 the residential rental industry, providing landlords with significant pricing power due to a strong imbalance of supply and demand. |

For more information