Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 66

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 66
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 contract. If we are unable to manage these risks effectively,
our results of operations, financial condition and ability to make distributions to you will be adversely affected.

Complying with REIT requirements may limit our ability to hedge risk effectively.

We must satisfy two gross
income tests annually to maintain our qualification as a REIT. First, at least 75% of our gross income for each taxable year must consist
of defined types of income that we derive, directly or indirectly, from investments relating to real property or mortgages on real property
or qualified temporary investment income (the “75% Gross Income Test”). Second, at least 95% of our gross income for each
taxable year must consist of income that is qualifying income for purposes of the 75% Gross Income Test, other types of interest and dividends,
gain from the sale or disposition of shares or securities, or any combination of these (the “95% Gross Income Test”).

These and other REIT provisions
of the Code may limit our ability to hedge the risks inherent to our operations. From time to time, we may enter into hedging transactions
with respect to one or more of our assets or liabilities. Our hedging transactions may include entering into interest rate swaps, caps
and floors, options to purchase these items, and futures and forward contracts. Any income or gain derived by us from transactions that
hedge certain risks, such as the risk of changes in interest rates, will not be treated as gross income for purposes of either the 75%
Gross Income Test or the 95% Gross Income Test if specific requirements are met. Such requirements include that the hedging transaction
be properly identified within prescribed time periods and that the transaction either (1) hedge risks associated with indebtedness
issued by us that is incurred to acquire or carry real estate assets, (2) manage the risks of currency fluctuations with respect
to income or gain that qualifies under the 75% Gross Income Test or 95% Gross Income Test (or assets that generate such income), or (3) offset
a transaction described in (1) or (2) if a portion of the hedge indebtedness is extinguished or the related property disposed
of. To the extent that we do not properly identify such transactions as hedges, hedge with other types of financial instruments, or hedge
other types of indebtedness, the income from those transactions is not likely to be treated as qualifying income for purposes of the 75%
Gross Income Test and the 95% Gross