Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 158

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 158
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:--------------|-------:|:----|:--|------:|
| New development                         |     | $             |  6,035 |     | $ |   346 |
| Redevelopment/renovations               |     |               |  4,203 |     |   | 2,222 |
| Routine capital expenditures            |     |               |  3,132 |     |   | 2,939 |
| Normally recurring capital expenditures |     |               |    875 |     |   |   470 |
| Total capital expenditures              |     | $             | 14,245 |     | $ | 5,977 |

New development represents
the expenditures for the planning, land development, and construction of residential homes and communities. Redevelopment and renovation
costs are non-recurring capital expenditures for significant projects, such as preparing a unit for rental. The renovation work varies,
but may include flooring, cabinetry, paint, plumbing, appliances and other items required to make the unit rent ready. Routine capital
expenditures are necessary non-revenue generating improvements that extend the useful life of the property and that are less frequent
in nature, such as roof repairs and concrete work/asphalt resurfacing. Normally recurring capital expenditures are necessary non-revenue
generating improvements that occur on a regular ongoing basis, such as flooring and appliances.

<div align='center'>94</div>

Funds from Operations and Core Funds from Operations Attributable to Common Stockholders and Unit Holders

We believe that funds from
operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), and core
funds from operations (“CFFO”) are important non-GAAP supplemental measures of operating performance for a REIT.

FFO attributable to common
stockholders and unit holders is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We
consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property
portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets
requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably
over time. Since real estate values historically rise and fall with market conditions, presentations of operating results for a REIT,
using historical accounting for depreciation, could be less informative. We define FFO,