Company: BHM
Filing Date: 2025-05-09
Form Type: 424B3
Source: 0001104659-25-046667
Chunk: 19

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-05-09
Form: 424B3
Chunk 19
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 estate investments, net in the Company’s consolidated statements of 
 operations and comprehensive income.                                                                                            |

| (2) | Real estate                                                                                                                             
 assets classified as held for sale are reported at the lower of their carrying value or estimated fair value less costs to sell and are 
 presented separately within operating real estate held for sale, net on the Company’s consolidated balance sheets. The estimated        
 fair value is based on discussions with third party brokers, historical sales experience, and current market conditions.                |

20

Table of Contents

Fair Value Measurements on a Nonrecurring Basis

The Company continually
monitors events and changes in circumstances that could indicate that the carrying amounts of its operating real estate and related intangible
assets may not be recoverable. If the Company does not believe that it will be able to recover the carrying value of operating real estate,
the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the operating real
estate based on discounted cash flows of the operating asset using inputs that fall within Level 3 of the fair value hierarchy. No impairment
losses on operating real estate and related intangible assets were recorded during the three months ended March 31, 2025 and 2024.

Derivative Financial Instruments

The estimated
fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash flow analysis
on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to
maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair value of interest rate caps
is determined using the market-standard methodology of discounting the future expected cash receipts which would occur if floating interest
rates rise above the strike rate of the caps. The floating interest rates used in the calculation of projected receipts on the cap are
based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The fair value
of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments)
and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation
of future interest rates (forward curves) derived from observable market interest rate curves. The inputs used in the valuation of interest
rate caps and swaps fall within Level 2 of the fair value hierarchy.

#### Note 11 –
Derivative Financial Instruments

The
Company is exposed to certain risks arising from both its