Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 80

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 80
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 property and have insufficient cash flow to service the debt, we risk an event of default which may result in our lenders foreclosing on the properties securing the mortgage. If we cannot repay or refinance loans incurred to purchase our properties, or interests therein, then we may lose our interests in the properties secured by the loans we are unable to repay or refinance.

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High levels of debt or increases in interest rates could increase the amount of any future loan payments, which could reduce the cash available for distribution to stockholders.

Our
policies do not limit us from incurring debt. 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.

Higher
debt levels will cause us to incur higher interest charges, resulting in higher debt service payments, and may be accompanied by restrictive
covenants. Interest we pay reduces cash available for distribution to stockholders. Additionally, with respect to our variable rate debt,
increases in interest rates increase our interest costs, which reduces our cash flow and our ability to make distributions to you. In
addition, if we need to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of
our investments in properties at times that may not permit realization of the maximum return on such investments and could result in a
loss. In addition, if we are unable to service our debt payments, our lenders may foreclose on our interests in the real property that
secures the loans we have entered into.

As
of December 31, 2024, we had approximately $177 million of mortgages payable and revolving credit facilities outstanding that are indexed
to SOFR, and our future variable rate debt may bear interest at a rate derived from SOFR. SOFR is a relatively new reference rate. The
publication of SOFR began in April 2018, and, therefore, it has a very limited history. The future performance of SOFR cannot be predicted
based on the limited historical performance. Since the initial publication of SOFR, changes in SOFR have, on occasion, been more volatile
than changes in other benchmark or market rates, such as United States dollar LIBOR. Additionally, any successor rate to SOFR may not
have the same characteristics as SOFR or LIBOR. As a result, the amount of interest we