Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 63

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 63
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successor rate to SOFR may not have the same characteristics as SOFR or LIBOR. As a result, the amount of interest we may pay on future
variable rate debt indexed to SOFR is difficult to predict.

High mortgage rates may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire, our cash flow from operations and the amount of cash distributions we can make.

To maintain our qualification
as a REIT, we will be required to distribute at least 90% of our REIT taxable income (determined without regard to the deduction for dividends
paid and excluding net capital gains) to our stockholders in each taxable year, and thus our ability to retain internally generated cash
is limited. Accordingly, our ability to acquire properties or to make capital improvements to or remodel properties will depend on our
ability to obtain debt or equity financing from third parties or the sellers of properties. If mortgage debt is unavailable at reasonable
rates, we may not be able to finance the purchase of properties. If we place mortgage debt on properties, we run the risk of being unable
to refinance the properties when the debt becomes due or of being unable to refinance on favorable terms. If interest rates are higher
when we refinance the properties, our income could be reduced. We may be unable to refinance properties. If any of these events occurs,
our cash flow would be reduced. This, in turn, would reduce cash available for distribution to you and may hinder our ability to raise
capital by issuing more stock or borrowing more money.

Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to you.

When providing financing,
a lender may impose restrictions on us that affect our distribution and operating policies and our ability to incur additional debt. Loan
documents we enter into may contain covenants that limit our ability to further mortgage the property, discontinue insurance coverage
or impose other limitations. These or other limitations may limit our flexibility and prevent us from achieving our operating plans.

If mortgage debt is unavailable at reasonable rates, it may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire, our cash flows from operations and the amount of cash distributions we can make.

If we are unable to borrow
monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties we can purchase, and the
return on