Company: BHM
Filing Date: 2025-03-28
Form Type: POS AM
Source: 0001104659-25-029225
Chunk: 71

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-28
Form: POS AM
Chunk 71
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 properties and/or acquire new properties to place into specific
DSTs and then sell interests, via its TRS, in such trusts to third party investors. We will hold long-term leasehold interests in the
property pursuant to master leases that are fully guaranteed by our Operating Partnership, while the third-party investors indirectly
hold some or all of the interests in the real estate. There can be no assurance that the Operating Partnership can or will fulfill these
guarantee obligations. Although we will hold the FMV Option to reacquire the real estate through a purchase of interests in the DST, the
purchase price will be based on the then current fair market value of the third-party investor’s interest in the real estate, which
will be greatly impacted by the rental terms fixed by the long-term master lease. Under the lease we are responsible for subleasing the
property to occupying customers until the earlier of the expiration of the master lease or our exercise of the FMV Option, which means
that we bear the risk that the underlying cash flow from the property and all capital expenditures may be less than the master lease payments
at such time. Therefore, even though we will no longer own the underlying real estate, because of the fixed terms of the long-term master
lease guaranteed by our Operating Partnership, negative performance by the underlying properties could affect cash available for distributions
to our stockholders and will likely have an adverse effect on our results of operations and NAV.

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We may own beneficial interests in DSTs owning real property that will be subject to the agreements under our DST Program, which may have an adverse effect on our results of operations, relative to if the DST Program agreements did not exist.

In connection with our DST
Program, we may own beneficial interests in DSTs owning real property that are subject to the terms of the agreements governing our DST
Program. The DST Program agreements limit our ability to encumber, lease or dispose of our beneficial interests. Such agreements could
affect our ability to turn our beneficial interests into cash and could affect cash available for distributions to our stockholders. The
DST Program agreements could also impair our ability to take actions that would otherwise be in the best interests of our stockholders
and, therefore, may have an adverse effect on our results of operations and NAV, relative to if the DST Program agreements did not exist.

Properties that are placed into the DST Program and later reacquired may be less liquid than other assets, which could impair our ability to