Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 292

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 292
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 or its affiliates paying certain of our expenses, proceeds from the sales of assets, and from our cash balances. There is no limit
on distributions that may be paid from any of these sources, however, our Manager and its affiliates are under no obligation to defer
or waive fees in order to support our distributions. Our charter does not prohibit our use of such sources to fund distributions.

We will pay U.S. federal income
tax on our taxable income, including net capital gain, that we do not distribute to stockholders. Furthermore, if we fail to distribute
with respect to each year, at least the sum of 85% of our REIT ordinary income for such year, 95% of our REIT capital gain income for
such year, and any undistributed taxable income from prior periods, we will incur a 4% nondeductible excise tax on the excess of such
required distribution over the amounts we actually distribute. See “Material U.S. Federal Income Tax Considerations—Distribution
Requirements.” Distributions will be authorized at the discretion of our board of directors, and will depend on, among other things,
current and projected cash requirements, tax considerations and other factors deemed relevant by our board. Our board’s discretion
will be directed, in substantial part, by its obligation to cause us to comply with the REIT requirements. Because we may receive income
from interest or rents at various times during our fiscal year, and because our board may take various factors into consideration in setting
distributions, distributions may not reflect our income earned in any particular distribution period and may be made in advance of actual
receipt of funds in an attempt to make distributions relatively uniform. We are authorized to borrow money, issue new securities or sell
assets in order to make distributions. There are no restrictions on the ability of our Operating Partnership to transfer funds to us.
The use of sources other than cash flows from operating activities to fund distributions and the ultimate repayment of any liabilities
incurred, as well as the payment of distributions in excess of our funds from operations, or “FFO,” could adversely impact
our ability to pay distributions in future periods, decrease the amount of cash we have available for operations and new investments and
potentially reduce your overall return and adversely impact and dilute the value of your investment in shares of our Series B Redeemable
Preferred Stock, which would be reflected when we establish an estimated per share value of each class of our Series B Redeemable
Preferred Stock. For a discussion of various