Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 165

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 165
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 accounting treatment is not appropriate, we generally account
for these investments under the equity method. The equity method of accounting requires these investments to be initially recorded at
cost and subsequently increased (decreased) for our share of net income (loss), and increased (decreased) for contributions (distributions).
The proportionate share of the results of operations of these investments is recognized on a one-quarter lag and is recorded in our earnings
or losses.

Income Taxes

For the three and nine
months ended September 30, 2025, the company recorded current income tax expense of approximately $0.3 million and $1.1 million,
respectively, and state income tax expense of $0.1 million and $0.3 million, respectively, related to income earned in certain taxable
REIT subsidiaries. The company records these amounts in income tax expense on the company’s consolidated statements of operations
and comprehensive income. No income tax expense was recorded in 2024.

Interim Financial Information

Our accompanying unaudited
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the Unites States
of America (“GAAP”) for interim financial reporting, and the instructions to Form 10-Q and Article 10-1 of Regulation
S-X. Accordingly, the financial statements for interim reporting do not include all the information and notes or disclosures required
by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered
necessary for a fair presentation have been included. Operating results for interim periods should not be considered indicative of the
operating results for a full year.

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The balance sheet at December 31,
2024 has been derived from the audited financial statements at that date but does not include all the information and disclosures required
by GAAP for complete financial statements. It is suggested that these condensed financial statements be read in conjunction with the
financial statements and notes thereto included in our audited consolidated financial statements for the year ended December 31,
2024 contained in the Annual Report on Form 10-K as filed with the SEC on March 20, 2025.

Use of Estimates

The preparation of the financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting