Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 7

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 7
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. Our principal business objective is to generate attractive risk-adjusted returns
on investments where we believe we can drive growth in funds from operations (“FFO”) and net asset value (“NAV”)
by acquiring residential units, developing residential communities, and through Value-Add renovations. Our Value-Add strategy focuses
on repositioning lower-quality, less current assets to drive rent growth and expand margins to increase net operating income and maximize
returns to our investors:

Our target renter pool includes
the large cohort of rental-biased and debt-burdened millennials, among others, who are reaching their peak household-formation age, have
a propensity for renting for lifestyle or flexibility reasons, and/or who do not want or cannot afford the upfront and ongoing financial
commitments of home ownership.

We invest primarily through
control positions in joint ventures with a network of established private, regional owner-operators in proprietary, off-market transactions
across a broad market footprint, enabling us to execute our strategies across multiple markets and strategies. Where appropriate, we may
seek to increase our ownership of the venture to 100%, subsequent to the execution of the initial business plan for each property.

For more information, see “Our Business and
Properties—Our Company.”

Our Portfolio

Our portfolio consists primarily
of residential properties that are between 15 and 40 years old located in first-ring suburban markets (which are areas within close proximity
to downtown amenities, including restaurants and retail shopping) with quality school systems and direct access to large metropolitan
areas. We source potential investments in residential properties through a variety of channels, including our existing relationships and
those developed by our network, real estate brokers, auctions and marketed portfolio sales. Our build-to-rent communities are typically
developed by our partners with expertise in development utilizing capital which we provide in a variety of structures, including through
common equity, preferred equity and mezzanine loans. Our build-to-rent communities are typically located in target markets that we believe
will enable us to capture development premiums on completion. These residential properties are specifically designed to be rented and
are typically amenitized with larger floorplans ranging between two and four bedrooms and consist of both attached and detached homes.

As of December 31, 2024,
we held twenty-three real estate investments, consisting of fourteen consolidated investments and nine preferred equity and loan investments.
The twenty-three investments represent an aggregate of 5,087 residential units, comprised of 3,453 consolidated units, of which 170 units
are