Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 224

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 224
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without taking into account any non-cash
equity compensation expense incurred in current or prior periods), less (2) any amount that the company has paid to repurchase our
common stock issued in any subsequent offering. New stockholders’ equity also excludes (a) any unrealized gains and losses
and other non-cash items (including depreciation and amortization) that have impacted stockholders’ equity as reported in our financial
statements prepared in accordance with GAAP, and (b) one-time events pursuant to changes in GAAP, and certain non-cash items not
otherwise described above, in each case after discussions between our Manager and our independent directors and approval by a majority
of our independent directors. We determined Net Asset Value, for purposes of the foregoing, based on the midpoint of the range of net
asset values utilized by Duff & Phelps in its analysis underlying the opinion it delivered to the Bluerock Residential board
of directors in connection with the execution of the Merger Agreement. Each quarterly installment of the Base Management Fee will be payable
in cash, except as may otherwise be specified by written agreement of the company and the Manager with respect to payment of all or any
portion thereof in C-LTIP Units, calculated pursuant to the formula above.

Incentive Fee

We will pay our Manager an
incentive fee (the “Incentive Fee”) with respect to each calendar quarter (or part thereof that the Management Agreement is
in effect) in arrears.

The Incentive Fee will be
an amount, not less than zero, equal to the difference between (1) the product of (i) 20% and (ii) the difference between
(a) the company’s adjusted funds from operations (“AFFO”) for the previous 12-month period and (b) the product
of (A) the product of (x) the weighted average of the price per share of equity securities as derived from the Net Asset Value
and the issue price of equity securities issued in future offerings and transactions, multiplied by (y) the weighted average number
of all shares of our common stock outstanding on a fully-diluted basis (including any restricted stock units, any restricted shares of
our common stock, LTIP Units, and other shares of our common stock underlying awards granted under incentive plans and units in the Operating
Partnership) in the previous 12-month period multiplied by (B) 8%, and (2) the sum of any Incentive Fee