Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 169

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 169
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 cosmetic and architectural improvements, technology, music and other community-oriented
activities to appeal to our residents’ desire for a “sense of community” by creating places to gather, socialize and
interact in an amenity-rich environment. We believe this creates an enhanced perception of value among residents, allowing for premium
rental rates and improved resident retention.

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Diversify Across Markets, Strategies and Investment Size. We will seek to grow our institutional portfolio of residential
properties diversified by geography and by investment strategy and by size to manage concentration risk, while driving both current income
and capital appreciation throughout the portfolio. Our network enables us to diversify across multiple markets and multiple strategies
efficiently, without the logistical burden and time delay of building operating infrastructure in multiple markets and across multiple
investment strategies.

Harvest and Redeploy Capital Selectively. On an opportunistic basis and subject to compliance with REIT restrictions, we intend
to sell properties when we have executed our value creation plans and when we believe the investment has limited additional upside relative
to other opportunities. This allows us to harvest profits and reinvest proceeds to maximize stockholder value.

Financing Policy

We intend to use prudent amounts
of leverage in connection with our operations. As of December 31, 2024, our total mortgage indebtedness was approximately $260.6
million, and we had $121.0 million outstanding under our revolving credit facilities. Once we reach sufficient scale, we generally expect
our total indebtedness to be less than 75% of the fair market value of our real estate investments. However, we are not subject to any
limitations on the amount of leverage we may use, and accordingly, the amount of leverage we use may be significantly less or greater
than we currently anticipate. Further, during our ramp-up to scale, we expect that our leverage will fluctuate and for periods of time
will exceed 75% of the fair market value of our real estate investments as appropriate. For purposes of calculating our leverage, we include
our consolidated real estate investments, include our preferred equity and loan investments at cost, include assets we have classified
as held for sale, and include any joint venture level indebtedness in our total indebtedness.

Our board of directors will
have the authority to change our financing policies at any time and without stockholder approval. If our board of directors changes our
policies regarding our use of leverage, we expect that it will consider many factors, including the lending