Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 32

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 32
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 for potential construction cost increases given the current severity of inflation and variety
of contributing factors or that general contractors would be able to absorb such increases in costs and complete our construction projects
timely, within budget, or at all. Higher construction costs could adversely impact our investments in real estate assets and expected
yields on our development projects, which may make otherwise lucrative investment opportunities less profitable to us. As a result, our
business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our debt service obligations and to
pay dividends and distributions to security holders could be adversely affected over time.

Our current portfolio primarily consists of interests in residential properties, located primarily in markets in the Sunbelt and Western United States. Any adverse developments in local economic conditions or the demand for residential properties in these markets may negatively impact our results of operations.

Our current portfolio of
properties consists primarily of residential properties geographically concentrated in the Sunbelt and Western United States, and our
portfolio going forward may consist primarily of the same. As such, we are currently susceptible to local economic conditions and the
supply of and demand for residential properties in these markets. If there is a downturn in the economy or an oversupply of or decrease
in demand for residential properties in these markets, our business could be materially adversely affected to a greater extent than if
we owned a real estate portfolio that was more diversified in terms of both geography and industry focus.

We are employing a business model with a limited track record, which may make our business difficult to evaluate.

Our business strategy involves
purchasing, renovating, maintaining, and managing a large number of residential properties, including single-family properties, and leasing
them to qualified residents. Until recently, the single-family rental business consisted primarily of private and individual investors
in local markets and was managed individually or by small, non-institutional owners and property managers. Entry into this market by
large, well-capitalized investors is a relatively recent trend, so few peer companies exist and none have yet established long-term track
records that might assist us in predicting whether this aspect of our business model and investment strategy can be implemented and sustained
over an extended period of time. It may be difficult for you to evaluate our potential future performance without the benefit of established
long-term track records from companies implementing a similar business model. We may encounter unanticipated problems as we continue
to refine our business model, which may adversely affect our results of operations and ability to make distributions to our stockholders
and cause