Company: BHM
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001104659-25-026164
Chunk: 168

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 168
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 property operating revenue including occupancy and market rental rates, and (v)
property operating expenses. There are inherent uncertainties in making these estimates such as market conditions, and performance and
sustainability of property operations. When indicators of potential impairment suggest that the carrying value of operating real estate
and related intangible assets may not be recoverable, we assess the recoverability of the assets by estimating whether we will recover
the carrying value of the asset through its undiscounted future cash flows and its eventual disposition. Based on this analysis, if we
do not believe that we will be able to recover the carrying value of the operating real estate and related intangible assets, we will
record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the operating real estate and related
intangible assets based on the discounted cash flows of the operating asset. During 2024, the Lubbock, Texas submarket experienced deterioration,
and as a result, we recorded a $1.4 million impairment loss on the Peak JV 2 portfolio as of December 31, 2024, which is included in gain
on sale and (impairment) of real estate investments, net in our consolidated statement of operations and comprehensive income. The Peak
JV 2 portfolio is included in the scattered single-family homes segment. No impairment losses on operating real estate and related intangible
assets were recorded in 2023.

Held for Sale Real Estate Assets

Real
estate assets are classified as held for sale when they meet the applicable GAAP criteria in accordance with ASC 360-10 Property, Plant, and Equipment - Overall, including, but not limited to, the availability of the real estate asset for immediate sale in its
present condition, the existence of an active program to locate a buyer, the probable sale of the real estate asset within one year, and
actions required to complete the sale of the real estate asset are likely to occur. Real estate assets classified as held for sale are
reported at the lower of their carrying value or estimated fair value less costs to sell and are presented separately within operating
real estate held for sale, net on our consolidated balance sheets. At December 31, 2024 and 2023, we had 167 units and 118 units, respectively,
classified as held for sale, and for the years ended December 31, 2024 and 2023, we had recorded impairments related to held for sale
units of $3.3 million and $1.