Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 156

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 156
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 | Holders of record of Series A Redeemable Preferred Stock shares are entitled to an enhanced special dividend equal to the amount by which (i) the Stated Value of the Series A Redeemable Preferred Stock multiplied by (a) the sum of (I) the average of the one-month Term SOFR for each day commencing on the 26th of the prior month to the 25th of the applicable month, plus (II) two percent, divided by (b) twelve, exceeds (ii) the standard monthly dividend of $0.125 per share of Series A Redeemable Preferred Stock. The enhanced special dividend will be aggregated with the standard monthly dividend so as to effect a dividend rate on the Series A Redeemable Preferred Stock that is subject to a 6.5% minimum and 8.5% maximum annual rate. |

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A portion of each dividend
may constitute a return of capital for tax purposes. There is no assurance that we will continue to declare dividends or at this rate.
Holders of OP Units, LTIP Units and C-LTIP Units are entitled to receive “distribution equivalents” at the same time as dividends
are paid to holders of our Class A common stock.

Our Board will determine
the amount of dividends to be paid to our stockholders. The determination of our Board will be based on several factors, including funds
available from operations, our capital expenditure requirements and the annual distribution requirements necessary to maintain our REIT
status for federal income tax purposes. As a result, our distribution rate and payment frequency may vary from time to time. However,
to maintain our REIT status for federal income tax purposes, we must make distributions equal to at least 90% of our “REIT taxable
income”, as defined by the Code, determined without regard to the dividends paid deduction and excluding net capital gains, to our
stockholders each year. While our policy is generally to pay distributions from cash flow from operations, we may declare distributions
in excess of funds from operations.

Basis of Presentation and Summary of Significant Accounting Policies

Below
is a discussion of the accounting policies that we consider critical to an understanding of our financial condition and operating results
that may require complex or significant judgment in their application or require estimates about matters which are inherently uncertain.

Basis of Presentation and Principles of Consolidation

We conduct our operations
through the Operating Partnership, of which we are the sole general partner. The consolidated financial statements include our accounts