Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 64

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 64
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 to you. In addition, if we need
to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties
at times that may not permit realization of the maximum return on such investments and could result in a loss. In addition, if we are
unable to service our debt payments, our lenders may foreclose on our interests in the real property that secures the loans we have entered
into.

As of March 31, 2025,
we had approximately $141 million of mortgages payable and revolving credit facilities outstanding that are indexed to the Secured Overnight
Financing Rate (“SOFR”), and our future variable rate debt may bear interest at a rate derived from SOFR. SOFR is a relatively
new reference rate. The publication of SOFR began in April 2018, and, therefore, it has a very limited history. The future performance
of SOFR cannot be predicted based on the limited historical performance. Since the initial publication of SOFR, changes in SOFR have,
on occasion, been more volatile than changes in other benchmark or market rates, such as United States dollar LIBOR. Additionally, any
successor rate to SOFR may not have the same characteristics as SOFR or LIBOR. As a result, the amount of interest we may pay on future
variable rate debt indexed to SOFR is difficult to predict.

High mortgage rates may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire, our cash flow from operations and the amount of cash distributions we can make.

To maintain our qualification
as a REIT, we will be required to distribute at least 90% of our REIT taxable income (determined without regard to the deduction for
dividends paid and excluding net capital gains) to our stockholders in each taxable year, and thus our ability to retain internally generated
cash is limited. Accordingly, our ability to acquire properties or to make capital improvements to or remodel properties will depend
on our ability to obtain debt or equity financing from third parties or the sellers of properties. If mortgage debt is unavailable at
reasonable rates, we may not be able to finance the purchase of properties. If we place mortgage debt on properties, we run the risk
of being unable to refinance the properties when the debt becomes due or of being unable to refinance on favorable terms. If interest
rates are higher when we refinance the properties, our income could be