Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 140

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 140
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 filed with the SEC on March 20, 2025, which is incorporated herein
by reference. While consolidated occupancy excluding units classified as held for sale and down/renovation units remains strong at 94.0%
as of December 31, 2024, in future periods we may experience reduced levels of tenant retention, and reduced foot traffic and lease
applications from prospective tenants.

In addition, in October 2024, we launched a program to sponsor and raise capital through private placement offerings of Delaware
statutory trusts (each, a “DST”) holding residential properties (collectively, the “DST Program”). We expect
that the DST Program will give us the opportunity to expand and diversify our capital raise strategies by offering what we believe to
be an attractive investment product for investors that may be seeking replacement properties to complete like-kind exchange transactions
and create future pipeline acquisition opportunities. In conjunction with the DST Program, our Operating Partnership has issued certain
non-interest bearing demand notes in relation to its role as the master tenant (the “Master Tenant”) under certain master
leases (the “Master Leases”) related to the DST Program (the “Demand Notes”), which could be called upon if the
net operating cash flow is insufficient to pay the rent required under the Master Leases (subject to limited deferral rights) or satisfy
its other obligations under the Master Leases. As compensation for the Operating Partnership’s obligations under the Master Leases,
we will share in the rent paid by the tenants of the underlying properties in accordance with the waterfall set forth in the applicable
Master Lease. As of December 31, 2024, we had one offering in our DST Program and had raised $4.5 million in offering proceeds of
the $66.0 million total offering, issued a demand note of $0.7 million, and had $103.4 million in total net real estate investments associated
with the DST Program.

In conjunction with sponsoring
of the DST Program, our Operating Partnership is granted an option to acquire DST Interests from the DST Program’s beneficial owners
at a later date for an aggregate value equal to such beneficial owner’s pro rata share of the appraised value of the properties,
as determined by an independent appraisal firm, less any indebtedness encumbering such beneficial owner’s DST Interest or the beneficial
owner’s pro rata share of any indebtedness encumbering the properties, which will be assumed or paid off by our Operating Partnership.

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