Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 154

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 154
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 the common units of the Operating Partnership, of which 56.54% is held by holders of limited partnership interest in the Operating Partnership (“OP Units”) and 13.05% is held by holders of the Operating Partnership’s long-term incentive plan units (“LTIP Units”), including 3.08% which were not vested at March 31, 2025.

Certain amounts in prior year financial statement presentation have been reclassified to conform to the current year presentation.

Summary of Significant Accounting Policies

Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 20, 2025 for discussion of our significant accounting policies. During the three months ended March 31, 2025, there were no material changes to these policies.

Real Estate Investments, Preferred Equity Investments and Notes Receivable

We first analyze an investment
to determine if it is a variable interest entity (“VIE”) in accordance with Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) Topic 810: Consolidation and, if so, whether we are the primary beneficiary
requiring consolidation of the entity. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities
without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial
interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that
most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits
from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other
financial interests in a VIE that change in value with changes in the fair value of the VIE’s net assets. We continuously re-assess
at each level of the investment whether (i) the entity is a VIE, and (ii) we are the primary beneficiary of the VIE. If it was
determined that an entity in which we hold an interest qualified as a VIE and we are the primary beneficiary, the entity would be consolidated.

If, after consideration of
the VIE accounting literature, we have determined that an entity is not a VIE, we assess the need for consolidation under all other provisions
of ASC 810. These provisions provide for consolidation of majority-owned entities through a majority voting interest held by the company
pro