Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 153

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 153
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 to assist in the determination of the fair value
of the land and building.

Intangible assets include
the value of in-place leases which represents the estimated fair value of the net cash flows of leases in place at the time of acquisition,
as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up.
We amortize the value of in-place leases to expense over the remaining non-cancelable term of the respective leases, which is on average
six months.

Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require us to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, prevailing interest rates and the number of years the property will be held for investment. The use of inappropriate assumptions could result in an incorrect valuation of acquired tangible assets, identifiable intangible assets and assumed liabilities, which could impact the amount of our net income (loss). Differences in the amount attributed to the fair value estimate of the various assets acquired can be significant based upon the assumptions made in calculating these estimates.

Capital Additions, Depreciation and Amortization

We capitalize costs incurred in connection with our capital additions activities, including redevelopment, development and construction projects, other tangible improvements, and replacements of existing components. Repair and maintenance and tenant turnover costs are expensed as incurred. Repair and maintenance and tenant turnover costs include all costs that do not extend the useful life of the real estate asset.Accordingly, many factors are considered as part of our evaluation processes with no one factor necessarily determinative.Depreciation and amortization expense are computed on the straight-line
method over the asset’s estimated useful life. We consider the period of future benefit of an asset to determine its appropriate
useful life and anticipate the estimated useful lives of assets by class to be generally as follows:

| Buildings              | 30         
 – 40 years |
| Building               
 improvements           | 5          
 – 15 years |
| Land                   
 improvements           | 5          
 – 15 years |
| Furniture,             
 fixtures and equipment | 3          
 – 8 years  |
| In-place               
 leases                 | 6          
 months     |

Impairment of Operating Real Estate Assets

We continually monitor events and changes in circumstances that could indicate that the carrying amounts of our operating real estate and related intangible assets may not be recoverable. The evaluation of real estate assets for potential impairment requires our management to