Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 112

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 112
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 the act or omission of the director or officer was material to the matter giving rise to the proceeding
and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty; (2) the director or officer
actually received an improper personal benefit in money, property or services; or (3) in the case of any criminal proceeding, the
director or officer had reasonable cause to believe that the act or omission was unlawful. As a result, we and our stockholders may have
more limited rights against our directors, officers, employees and agents, and their affiliates, than might otherwise exist under common
law. In addition, we may be obligated to fund the defense costs incurred by our directors, officers, employees and agents in some cases.

An increase in market interest rates may have an adverse effect on the market price of our Class A common stock.

One of the factors that investors
may consider in deciding whether to buy or sell our Class A common stock is our distribution yield, which is our distribution rate
as a percentage of our share price, relative to market interest rates. If market interest rates increase, prospective investors may desire
a higher distribution yield on our Class A common stock or may seek securities paying higher dividends or interest. As a result,
interest rate fluctuations and capital market conditions are likely to affect the market price of our Class A common stock, and such
effects could be significant. For example, if interest rates rise without an increase in our distribution rate, the market price of our
Class A common stock could decrease because potential investors may require a higher distribution yield on our Class A common
stock as market rates on interest-bearing securities, such as bonds, rise.

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Our ability to pay dividends is limited by the requirements of Maryland law.

Our ability to pay dividends
on our common stock is limited by the laws of Maryland. Under applicable Maryland law, a Maryland corporation generally may not make a
distribution (including a dividend or redemption) if, after giving effect to the dividend, the corporation would not be able to pay its
debts as the debts become due in the usual course of business, or the corporation’s total assets would be less than the sum of its
total liabilities plus, unless the corporation’s charter provides otherwise, the amount that would be needed, if the corporation
were dissolved at the time of the dividend, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights
are superior to those receiving the