Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 339

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 339
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be made, or ordinary obligations incurred or to be incurred, to acquire or carry real estate assets, (2) any transaction entered
into primarily to manage the risk of currency fluctuations with respect to any item of income or gain that would be qualifying income
under the 75% or 95% gross income test (or any property which generates such income or gain), and (3) any transaction entered into
to “offset” transactions described in clauses (1) or (2) if a portion of the hedged indebtedness is extinguished
or the related property is disposed of. We are required to clearly identify any such hedging transaction before the close of the day
on which it was acquired, originated, or entered into and to satisfy other identification requirements. We intend to structure any hedging
transactions in a manner that does not jeopardize our qualification as a REIT.

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COD Income.
From time-to-time, we and our subsidiaries may recognize COD income in connection with repurchasing debt at a discount. COD income is
excluded from gross income for purposes of both the 95% gross income test and the 75% gross income test.

Foreign Currency Gain.
Certain foreign currency gains will be excluded from gross income for purposes of one or both of the gross income tests. “Real estate
foreign exchange gain” will be excluded from gross income for purposes of the 75% and 95% gross income tests. Real estate foreign
exchange gain generally includes foreign currency gain attributable to any item of income or gain that is qualifying income for purposes
of the 75% gross income test, foreign currency gain attributable to the acquisition or ownership of (or becoming or being the obligor
under) obligations secured by mortgages on real property or an interest in real property and certain foreign currency gain attributable
to certain “qualified business units” of a REIT. “Passive foreign exchange gain” will be excluded from gross income
for purposes of the 95% gross income test. Passive foreign exchange gain generally includes real estate foreign exchange gain as described
above, and also includes foreign currency gain attributable to any item of income or gain that is qualifying income for purposes of the
95% gross income test and foreign currency gain attributable to the acquisition or ownership of (or becoming or being the obligor under)
obligations. These exclusions for real estate foreign exchange gain and passive foreign exchange gain do not apply to any certain foreign
currency gain derived from dealing, or engaging