Company: BHM
Filing Date: 2025-11-06
Form Type: 424B3
Source: 0001104659-25-107769
Chunk: 36

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-06
Form: 424B3
Chunk 36
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 value of its AFS preferred equity investments utilizing observable and      
 unobservable market inputs. The observable market inputs include recent transactions and broker quotes (“market data”). However,              
 given the implied price dispersion amongst the market data, the fair value determination for the AFS preferred equity investments has         
 also utilized significant unobservable inputs in discounted cash flow models based on recent performance of the collateral, the underlying    
 collateral characteristics, industry trends as well as expectations of macroeconomic events. At each measurement date, the Company considers  
 both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable 
 inputs, the fair values of AFS preferred equity investments are classified in Level 3 of the fair value hierarchy.                            |

| (2) | The estimated                                                                                                                                 
 fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash flow analysis 
 on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to       
 maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair value of interest rate caps        
 is determined using the market-standard methodology of discounting the future expected cash receipts which would occur if floating interest   
 rates rise above the strike rate of the caps. The floating interest rates used in the calculation of projected receipts on the cap are        
 based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The fair value         
 of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) 
 and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation        
 of future interest rates (forward curves) derived from observable market interest rate curves. The inputs used in the valuation of interest   
 rate caps and swaps fall within Level 2 of the fair value hierarchy.                                                                          |

The Company’s operating units classified as held for sale for which it has recorded impairments, measured at fair value on a non-recurring basis, for the three and nine months ended September 30, 2025 and 2024 are summarized in the table below (amounts in thousands). The units classified as held for sale are all reported in the Company’s scattered single-family homes segment.

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