Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 121

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 121
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 eligible for the reduced rates on qualified dividend income. However, for taxable years beginning before January 1,
2026, ordinary REIT dividends constitute “qualified business income,” and thus a 20% deduction is available to individual
taxpayers with respect to such dividends, resulting in a 29.6% maximum U.S. federal income tax rate (plus the 3.8% surtax on net investment
income, if applicable) for individual U.S. stockholders. However, to qualify for this deduction, the stockholder receiving such dividends
must hold the dividend-paying REIT stock for at least 46 days (considering certain special holding period rules) of the 91-day period
beginning 45 days before the stock becomes ex-dividend, and cannot be under an obligation to make related payments with respect to a position
in substantially similar or related property. The more-favorable rates applicable to regular corporate distributions could cause investors
who are individuals to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations
that pay distributions, which could adversely affect the value of our common stock.

We may enter into certain hedging transactions that may have a potential impact on our REIT qualification.

From
time to time, we may enter into hedging transactions with respect to one or more of our assets or liabilities. Our hedging activities
may include entering into interest rate and/or foreign currency swaps, caps, and floors, options to purchase these items, and futures
and forward contracts. Income and gain from “hedging transactions” that we enter into to hedge indebtedness incurred or to
be incurred to acquire or carry real estate assets, or to hedge existing hedging positions after any portion of the related debt or property
is extinguished or disposed of, and that are clearly and timely identified as such will be excluded from both the numerator and the denominator
for purposes of the gross income tests that apply to REITs. Moreover, any income from a transaction entered into primarily to manage risk
of currency fluctuations with respect to any item of income that would be qualifying REIT income under the REIT gross income tests, and
any gain from the unwinding of any such transaction, does not constitute gross income for purposes of the REIT gross income tests. To
the extent that we do not properly identify such transactions as hedges or we hedge with other types of financial instruments, or hedge
other types of indebtedness, the income from those transactions may