Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 144

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 144
---
 the acquisition of five residential communities since January 1, 2024. The increase was partially
offset by (i) the sales of one residential community and single-family units in our portfolio since January 1, 2024 and (ii) in-place
leases being fully amortized at one residential community prior to 2025.

Other Income and Expense

Other income and expense amounted
to expense of $1.1 million for the six months ended June 30, 2025 as compared to expense of $0.4 million for the same prior year
period. This was primarily due to a $4.3 million increase in interest expense primarily attributable to an increase in the outstanding
debt to $347.3 million at June 30, 2025 as compared to $166.7 million at December 31, 2023. This expense was partially offset
by a $1.5 million gain on the sale of one preferred equity investment, a $1.1 million increase in gain on sale of real estate investments,
and a $1.0 million decrease in impairment on real estate.

Income Tax Expense

Income tax expense amounted
to income of $1.0 million for the six months ended June 30, 2025 as compared to zero for the same prior year period. The 2025 expense
primarily relates to Amira at Westly and three preferred equity investments.

Net Operating Income

We believe that net operating
income (“NOI”) is a useful measure of our operating performance. We define NOI as total property revenues less total property
operating expenses, excluding depreciation and amortization and interest. Other REITs may use different methodologies for calculating
NOI, and accordingly, our NOI may not be comparable to other REITs. NOI also is a computation made by analysts and investors to measure
a real estate company’s operating performance.

We believe that this measure
provides an operating perspective not immediately apparent from operating income or net income prepared in conformity with accounting
principles generally accepted in the United States of America (“GAAP”). NOI allows us to evaluate the operating performance
of our properties because it measures the core operations of property performance by excluding corporate level expenses and other items
not related to property operating performance and captures trends in rental housing and property operating expenses.

<div align='center'>67</div>

However, NOI should only
be used as a supplemental measure of our financial performance. The following table reflects net loss attributable to common stockholders
to