Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 150

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 150
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2025.

Other Income and Expense

Other income and expenseamounted
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.

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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