Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 142

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 142
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2025.

Other Income and Expense

Other income and expense amounted
to income of $0.2 million for the three months ended June 30, 2025 as compared to expense of $1.2 million for the same prior year
period. This was primarily due to a $1.5 million gain on the sale of one preferred equity investment, a $1.0 million decrease in impairment
on real estate, and a $0.6 million increase in gain on sales of real estate investments. These income sources were partially offset
by a $1.6 million increase in interest expense primarily attributable to an increase in the outstanding debt to $347.3 million at June 30,
2025 as compared to $228.0 million at June 30, 2024.

Income Tax Expense

Income tax expense amounted
to income of $0.6 million for the three months ended June 30, 2025 as compared to zero for the same prior year period. The 2025 expense
primarily relates to Amira at Westly and three preferred equity investments.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Revenue

Rental and other property revenues increased $9.9 million, or 44%, to $32.6 million for the six months ended June 30, 2025 as compared to $22.7 million
for the same prior year period. The increase was primarily due to: (i) the acquisition of 1,524 units at five residential communities,
which was partially offset by sales of 176 units at one residential community and 183 single-family units in our portfolio since January 1,
2024, and (ii) rental rate improvement from our active management and organic market rent growth. Our average rent per occupied unit
increased $84, or 5.2%, to $1,692 as compared to $1,608 during the prior year period. Average occupancy decreased 70 basis points from
92.4% to 91.7% on a year over year basis.

Interest income from loan investments amounted to $0.6 million for the six months ended June 30, 2025 as compared to $1.0 million for the same prior
year period due to the full payoff of three loan investments since the third quarter of 2024.

Expenses

Property operating expenses increased
$4.8 million, or 44%, to $15.8 million