Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 147

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 147
---
 in accordance with our policy, distributions in the future
may be paid from cash flow from operations, proceeds from the offering of our Series A Redeemable Preferred Stock, the sales of assets
and additional sources, such as from borrowings.

We have notes receivable
in conjunction with properties that are in lease-up. To date, these investments have been structured as senior loans, and in the future,
we may also provide mezzanine financing to these types of projects. The notes receivable provide a current stated return and require repayment
based on a fixed maturity date. If the property does not repay the notes receivable upon maturity, our income, FFO, CFFO and cash flows
could be reduced below the stated returns currently being recognized if the property does not produce sufficient cash flow to pay its
operating expenses and debt service, or to refinance its debt obligations.

<div align='center'>70</div>

We also have preferred equity
interests in properties that are in various stages of development and in lease-up, and our preferred equity investments are structured
to provide a current and/or accrued preferred return during all phases. Each joint venture in which we own a preferred equity interest
is required to redeem our preferred equity interests, plus any accrued preferred return, based on a fixed maturity date, generally in
relation to the property’s construction loan or mortgage loan maturity. Upon redemption of the preferred equity interests, our income,
FFO, CFFO and cash flows could be reduced below the preferred returns currently being recognized. Alternatively, if the joint ventures
do not redeem our preferred membership interest when required, our income, FFO, CFFO and cash flows could be reduced if the development
project does not produce sufficient cash flow to pay its operating expenses, debt service and preferred return obligations. As we evaluate
our capital position and capital allocation strategy, we may consider alternative means of financing our development loan and preferred
equity investment activities at the subsidiary level.

Off-Balance Sheet Arrangements

As of March 31, 2025,
we have off-balance sheet arrangements that may have a material effect on our financial condition, revenues or expenses, results of operations,
liquidity, capital resources or capital expenditures. At March 31, 2025, we hold preferred equity interests in eight joint ventures
that are accounted for as available-for-sale debt securities.

Cash Flows from Operating Activities

As of March 31, 2025,
we held twenty-three real estate investments, consisting of