Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 142

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 142
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<div align='center'>68</div>

Liquidity and Capital Resources

Liquidity is a measure of
our ability to meet potential cash requirements, both short- and long-term. Our primary short-term liquidity requirements historically
have related to (i) our operating expenses and other general business needs, (ii) investment in real estate, (iii) distributions
to stockholders, (iv) committed investments and capital requirements to fund development and renovations at existing properties,
and (v) ongoing commitments to repay borrowings, including our maturing debt, the Amended DB Credit Facility and KeyBank Credit Facility.

Our ability to access capital
on favorable terms as well as to use cash from operations to continue to meet our short-term liquidity needs could be affected by various
risks and uncertainties, including the risks detailed in Part I, Item 1A titled “Risk Factors” of our Annual Report
on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 20, 2025. While consolidated occupancy
excluding units classified as held for sale and down/renovation units remains strong at 94.1% as of March 31, 2025, in future periods
we may experience reduced levels of tenant retention, and reduced foot traffic and lease applications from prospective tenants.

In addition, in October 2024,
we launched a program to sponsor and raise capital through private placement offerings of Delaware statutory trusts (each, a “DST”)
holding residential properties (collectively, the “DST Program”). We expect that the DST Program will give us the opportunity
to expand and diversify our capital raise strategies by offering what we believe to be an attractive investment product for investors
that may be seeking replacement properties to complete like-kind exchange transactions and create future pipeline acquisition opportunities.
In conjunction with the DST Program, our Operating Partnership has issued certain non-interest bearing demand notes in relation to its
role as the master tenant (the “Master Tenant”) under certain master leases (the “Master Leases”) related to the
DST Program (the “Demand Notes”), which could be called upon if the net operating cash flow is insufficient to pay the rent
required under the Master Leases (subject to limited deferral rights) or satisfy its other obligations under the Master Leases. As compensation
for the Operating Partnership’s obligations under the Master Leases, we will share in the rent paid by the tenants of the underlying
properties in accordance with the waterfall set