Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 148

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 148
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non-cash interest, unrealized gains or losses on derivatives, provision for (recovery of) credit losses, losses on extinguishment of
debt and debt modification costs (includes prepayment penalties incurred and the write-off of unamortized deferred financing costs and
fair market value adjustments of assumed debt), one-time weather-related costs, equity compensation expense, and preferred stock accretion.
We believe that CFFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which
can create significant earnings volatility, but which do not directly relate to our core recurring property operations. As a result,
we believe that CFFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor
of future earnings potential.

Our calculation of CFFO
differs from the methodology used for calculating CFFO by certain other REITs and, accordingly, our CFFO may not be comparable to CFFO
reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance after adjustment for certain non-cash
items, such as depreciation and amortization expenses, and acquisition and other transaction costs that are required by GAAP to be expensed
but may not necessarily be indicative of current operating performance and that may not accurately compare our operating performance
between periods. Furthermore, although FFO and CFFO and other supplemental performance measures are defined in various ways throughout
the REIT industry, we also believe that FFO and CFFO may provide us and our stockholders with an additional useful measure to compare
our financial performance to certain other REITs.

Neither FFO nor CFFO is
equivalent to net income (loss), including net income (loss) attributable to common stockholders, or cash generated from operating activities
determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management’s discretionary
use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor
CFFO should be considered as an alternative to net income, including net income (loss) attributable to common stockholders, as an indicator
of our operating performance or as an alternative to cash flow from operating activities as a measure of our liquidity.

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The table below presents our calculation of FFO
and CFFO for the years ended December 31, 2024 and 2023 ($