Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 88

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 88
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 through subsidiaries of our Operating Partnership, will hold long-term leasehold interests in properties held
by Delaware statutory trusts, the beneficial interests of which are sold to investors, pursuant to a Master Lease (each such property,
a “DST Property”). In connection with each Master Lease, our Operating Partnership has entered into a demand note with the
subsidiary of our Operating Partnership that acts as the Master Tenant for such DST Property. Under each Master Lease, we will be responsible
for subleasing the relevant DST Property to occupying tenants, which means that the Master Tenant under the Master Lease bears the risk
that the underlying cash flow from a DST Property may be less than the Master Lease payments. As a result, if a DST Property experiences
negative performance, the applicable Master Tenant could demand funding pursuant to the demand note if the net operating cash flow is
insufficient to pay the rent required under the Master Lease (subject to limited deferral rights) or to satisfy its other obligations
under the Master Lease, which could affect cash available for distributions to our stockholders and could have an adverse effect on our
results of operations. For additional information, see the Liquidity and Capital Resources section under Item 7. – Management’s
Discussion and Analysis of Financial Conditions and Results of Operations of this report.

The Operating Partnership’s private placements of beneficial interests in specific Delaware statutory trusts under our DST Program could subject us to liabilities from litigation or otherwise.

We,
through the Operating Partnership, have commenced a program to raise capital in private placements exempt from registration under Section
506(c) of the Securities Act through the sale of beneficial interests in specific Delaware statutory trusts, or DSTs, holding real properties,
which may include properties currently indirectly owned by the Operating Partnership.

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These
interests may serve as replacement properties for investors seeking to complete like-kind exchange transactions under Section 1031 of
the Code. Properties in which underlying interests are sold to investors pursuant to such private placements will be leased-back by the
Operating Partnership or a wholly owned subsidiary thereof, as applicable, and fully guaranteed by the Operating Partnership, although
there can be no assurance that the Operating Partnership can or will fulfill these guarantee obligations. Additionally, the Operating
Partnership will be given the FMV Option with respect to each DST in the DST Program, giving it the right, but not the obligation, to
acquire the interests in the DST from the investors at a later time in exchange for OP Units. Investors who