Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 49

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 49
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 severity of inflation
and variety of contributing factors or that general contractors would be able to absorb such increases in costs and complete our construction
projects timely, within budget, or at all. Higher construction costs could adversely impact our investments in real estate assets and
expected yields on our development projects, which may make otherwise lucrative investment opportunities less profitable to us. As a result,
our business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our debt service obligations and
to pay dividends and distributions to security holders could be adversely affected over time.

Our current portfolio primarily consists of interests in residential properties, located primarily in markets in the Sunbelt and Western United States. Any adverse developments in local economic conditions or the demand for residential properties in these markets may negatively impact our results of operations.

Our
current portfolio of properties consists primarily of residential properties geographically concentrated in the Sunbelt and Western United
States, and our portfolio going forward may consist primarily of the same. As such, we are currently susceptible to local economic conditions
and the supply of and demand for residential properties in these markets. If there is a downturn in the economy or an oversupply of or
decrease in demand for residential properties in these markets, our business could be materially adversely affected to a greater extent
than if we owned a real estate portfolio that was more diversified in terms of both geography and industry focus.

We are employing a business model with a limited track record, which may make our business difficult to evaluate.

Our
business strategy involves purchasing, renovating, maintaining, and managing a large number of residential properties, including single-family
properties, and leasing them to qualified residents. Until recently, the single-family rental business consisted primarily of private
and individual investors in local markets and was managed individually or by small, non-institutional owners and property managers. Entry
into this market by large, well-capitalized investors is a relatively recent trend, so few peer companies exist and none have yet established
long-term track records that might assist us in predicting whether this aspect of our business model and investment strategy can be implemented
and sustained over an extended period of time. It may be difficult for you to evaluate our potential future performance without the benefit
of established long-term track records from companies implementing a similar business model. We may encounter unanticipated problems as
we continue to refine our business model, which may adversely affect our results of operations and ability to make distributions to our
stockholders and cause our stock price to decline significantly.

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