Company: BHM
Filing Date: 2025-11-06
Form Type: 424B3
Source: 0001104659-25-107769
Chunk: 23

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-06
Form: 424B3
Chunk 23
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3, the Federal Reserve increased interest
rates a total of four times during 2023 to curb the effects of rising inflation. While the Federal Reserve reduced interest rates by an
aggregate of 100-basis points during 2024 and by another 25-basis points in September 2025, there can be no assurances that interest rates
will not rise again, and the Company’s operating costs, including utilities and payroll, may increase as a result of increases in
inflation. Rising interest rates cause uncertainty in credit and capital markets which could have material and adverse effects on the
Company’s financial condition, results of operations and cash flows. In addition, any tariffs imposed by the current administration
or other countries may cause further inflationary pressures in the economy, uncertainty and volatility of debt and equity markets, and
a slowdown in the U.S. and global economies. The announced tariffs are likely to increase construction costs and further reduce already
constrained new supply starts, which could adversely impact the timing of actual completion and/or stabilization of build-to-rent communities,
including potential delays due to supply shortages and labor shortages. The long-term impact of these economic developments will largely
depend on any future action by the Federal Reserve, future laws that may be enacted, the impact on job growth and the broader economy,
and reactions by consumers, companies, governmental entities and capital markets. The Company continues to closely monitor the impact
of economic volatility on all aspects of its business.

Note 3 – Acquisition of Real Estate

Acquisition of Southern Pines Reserve

On
April 28, 2025, the Company, through a Delaware statutory trust (the “Southern Pines DST”), acquired a 272-unit residential
community located in Aberdeen, North Carolina known as Southern Pines Reserve, aka Hawthorne. The purchase price of $56.6 million was
funded with (i) a $30.7 million senior loan secured by Southern Pines Reserve, (ii) borrowings of $20.0 million through the Company’s
existing credit facility with KeyBank National Association (the “KeyBank Credit Facility” – refer to Note 10 for further
information), and (iii) cash of $8.9 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions.

Acquisition of Skytop Apartments

On September 29,
2025, the Company, through a Delaware statutory trust (the “Skytop DST”), acquired a 361-unit residential community located
in Cincinnati, Ohio known as