Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 19

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 19
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 interest in an investment in or from conducting, for their own account, business activities of the type we conduct.
However, our code of business conduct and ethics contains a conflicts of interest policy that prohibits our directors, officers and personnel,
as well as employees and officers of our Manager and its affiliates who provide services to us, from engaging in any transaction that
involves an actual conflict of interest with us. Notwithstanding the prohibitions in our code of business conduct and ethics, after considering
the relevant facts and circumstances of any actual conflict of interest, the audit committee of our board of directors or another committee
of our board of directors comprised solely of independent directors may, on a case-by-case basis and in their sole discretion, waive
such conflict of interest.

Financing Policy

We intend to use prudent
amounts of leverage in connection with our operations. As of March 31, 2025, our total mortgage indebtedness was approximately $258.9
million, and we had $85.0 million outstanding under our revolving credit facilities. Once we reach sufficient scale, we generally expect
our total indebtedness to be less than 75% of the fair market value of our real estate investments. However, we are not subject to any
limitations on the amount of leverage we may use, and accordingly, the amount of leverage we use may be significantly less or greater
than we currently anticipate. Further, during our ramp-up to scale, we expect that our leverage will fluctuate and for periods of time
will exceed 75% of the fair market value of our real estate investments as appropriate. 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.

Our board of directors will
have the authority to change our financing policies at any time and without stockholder approval. If our board of directors changes our
policies regarding our use of leverage, we expect that it will consider many factors, including the lending standards of lenders in connection
with the financing of residential properties, the leverage ratios of publicly traded REITs with similar investment strategies, the cost
of leverage as compared to expected operating net revenues, and general market conditions.

By operating on a leveraged
basis, we expect to have more funds available for real estate investments and other purposes than if we operated without leverage, which
we believe will allow us to acquire