Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 136

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 136
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 Series A Redeemable Preferred Stock Redemption Safeguard Policy (the “Safeguard Policy”) with respect
to our Series A Redeemable Preferred Stock. The Safeguard Policy is applicable in the event of any redemption of shares of Series A
Redeemable Preferred Stock in shares of our Class A common stock rather than in cash (each, a “Series A Preferred Redemption
in Common Stock”). The Safeguard Policy provides that if, within 10 business days of any such Series A Preferred Redemption
in Common Stock, any such shares of Class A common stock are sold at a loss (i.e., a lower price than the Aggregate Redemption Value),
the holder can apply to us for a cash payment to the holder in an amount equal to the difference between (i) the Aggregate Redemption
Value of the Class A common stock so issued, and (ii) the Aggregate Sale Price at which such shares of Class A common stock
were sold, subject to certain conditions and requirements as set forth in the Safeguard Policy. The Safeguard Policy applies both retroactively,
and on a go-forward basis, to holders of our Series A Redeemable Preferred Stock.

Stockholders’ Equity

Our total stockholders’
equity decreased $2.0 million from $139.1 million as of December 31, 2024 to $137.1 million as of March 31, 2025. The decrease
in our total stockholders’ equity is primarily attributable to dividends declared of $2.5 million and preferred stock accretion
of $0.5 million, partially offset by comprehensive income of $0.5 million and a net adjustment of $0.4 million for noncontrolling interests.

Industry Outlook

The residential rental industry
has historically been more resilient to economic cycles than other commercial real estate sectors and is currently benefiting from significant
industry tailwinds that began during the pandemic. We believe industry dynamics present a compelling investment opportunity for us, including:

| · | Renting currently                                                                                                                          
 represents a significant cost saving to homeownership, and the recent increases in both housing prices and mortgage rates have exacerbated 
 the difference. This is expected to continue into the future and will force the millennial generation to rent for longer as they           
 enter their household formation years.                                                                                                     |

| · | Demand fundamentals                                                                                                                 
 are strong and strengthening further, particularly from rental-biased and debt-burdened millennials now reaching peak homeownership 
 age. We believe that a continued upswing in propensity to