Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 157

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 157
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 The Peak JV 2 portfolio is included in the scattered single-family homes segment. No impairment losses on operating real estate and related intangible assets were recorded in 2023.

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Held for Sale Real Estate Assets

Real estate assets are classified as held for sale when they meet the applicable GAAP criteria in accordance with ASC 360-10 Property, Plant, and Equipment - Overall, including, but not limited to, the availability of the real estate asset for immediate sale in its present condition, the existence of an active program to locate a buyer, the probable sale of the real estate asset within one year, and actions required to complete the sale of the real estate asset are likely to occur. Real estate assets classified as held for sale are reported at the lower of their carrying value or estimated fair value less costs to sell and are presented separately within operating real estate held for sale, net on our consolidated balance sheets. At December 31, 2024 and 2023, we had 167 units and 118 units, respectively, classified as held for sale,and for the years ended December 31, 2024 and 2023, we had recorded
impairments related to held for sale units of $3.3 million and $1.3 million, respectively, which is included in gain on sale and (impairment)
of real estate investments, net in our consolidated statements of operations and comprehensive income.

Revenue Recognition

We recognize rental revenue
on a straight-line basis over the terms of the rental agreements and in accordance with ASC Topic 842 Leases. Rental revenue is
recognized on an accrual basis and when the collectability of the amounts due from tenants is deemed probable. Rental revenue is included
within rental and other property revenues on our consolidated statements of operations and comprehensive income. Amounts received in
advance are recorded as a liability within other accrued liabilities on our consolidated balance sheet.

Other property revenues are recognized in the period earned.

Current Expected Credit Losses (CECL)

Notes Receivable

We estimate provision for
credit losses on our loan investments (notes receivable) under CECL. This method is based on expected credit losses for the life of the
investment as of each balance sheet date. The method for calculating the estimate of expected credit loss considers historical experience
and current conditions for similar loans and reasonable and supportable forecasts about the future.

We estimate our provision
for credit losses using a collective (pool) approach for investments with similar risk characteristics, such