Company: BHM
Filing Date: 2025-11-06
Form Type: 424B3
Source: 0001104659-25-107769
Chunk: 73

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-06
Form: 424B3
Chunk 73
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 and Expense

Other income and expense amounted to expense of $5.0 million for the nine months ended September 30, 2025 as compared to income of $8.0
million for the same prior year period. This was primarily due to (i) a $9.0 million decrease in gain on sales of real estate investments,
(ii) a $4.7 million increase in interest expense primarily attributable to an increase in the outstanding debt to $426.0 million at September
30, 2025 as compared to $166.7 million at December 31, 2023, (iii) a $2.2 million increase in impairment on real estate, and (iv) a decrease
in preferred returns of $1.1 million as funding to our preferred equity investments decreased to $45.0 million at September 30, 2025 as
compared to $81.3 million at December 31, 2023.

These
changes were partially offset by a $3.2 million gain on the sale of two preferred equity investments and $0.7 million income from the
investment in one unconsolidated real estate fund.

Income Tax Expense

Income tax expenseamounted to $1.4 million for the nine months ended September 30, 2025 as compared to zero for the same prior year period.
The 2025 expense primarily relates to income earned on certain taxable REIT subsidiaries for Amira at Westly, Southern Pines Reserve,
and three preferred equity investments.

Net Operating Income

We
believe that net operating income (“NOI”) is a useful measure of our operating performance. We define NOI as total property
revenues less total property operating expenses, excluding depreciation and amortization and interest. Other REITs may use different methodologies
for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. NOI also is a computation made by analysts and investors
to measure a real estate company’s operating performance.

We
believe that this measure provides an operating perspective not immediately apparent from operating income or net income prepared in conformity
with accounting principles generally accepted in the United States of America (“GAAP”). NOI allows us to evaluate the operating
performance of our properties because it measures the core operations of property performance by excluding corporate level expenses and
other items not related to property operating performance and captures trends in rental housing and property operating expenses.

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However, NOI should only be