Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 37

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 37
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 or pandemic may result in a widespread health crisis adversely affecting the economies
and financial markets of many countries, resulting in an economic downturn that could negatively affect our business, results of operations,
and financial condition. See “—Our business, results of operations, financial condition, and cash flows may be adversely
affected by pandemics and outbreaks of infectious disease, which may include COVID-19.” We can provide no assurance as to the extent
property values and operating fundamentals in these markets will improve, if at all. If the recent economic downturn in these markets
returns or if we fail to accurately predict the timing of economic improvement in these markets, the value of our properties could decline
and our ability to execute our business plan may be adversely affected to a greater extent than if we owned a real estate portfolio that
was more geographically diversified, which could adversely affect our financial condition, operating results, and ability to make distributions
to our stockholders and cause the value of our Series B Redeemable Preferred Stock or Class A common stock to decline.

We may not be able to effectively control the timing and costs relating to the renovation and maintenance of our properties, which may adversely affect our operating results and ability to make distributions to our stockholders.

Our properties may require
some level of renovation either immediately upon their acquisition or in the future following expiration of a lease or otherwise. We
may acquire properties that we plan to extensively renovate. We may also acquire properties that we expect to be in good condition only
to discover unforeseen defects and problems that require extensive renovation and capital expenditures. To the extent properties are
leased to existing residents, renovations may be postponed until the resident vacates the premises, and we will pay the costs of renovating.
In addition, from time to time, we may perform ongoing maintenance or make ongoing capital improvements and replacements and perform
significant renovations and repairs that resident deposits and insurance may not cover. Because our portfolio consists of geographically
dispersed properties, our ability to adequately monitor or manage any such renovations or maintenance may be more limited or subject
to greater inefficiencies than if our properties were more geographically concentrated.

Our properties have infrastructure
and appliances of varying ages and conditions. Consequently, we routinely retain independent contractors and trade professionals to perform
physical repair work and are exposed to all of the risks inherent in property renovation and maintenance, including potential cost overruns,
increases in labor and materials costs, delays by contractors in completing work, delays in the timing of receiving necessary work permits,
certificates of occupancy