Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 132

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 132
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 of this offering for future acquisitions, investments in properties, and other general corporate and working capital purposes,
which may include the funding of capital improvements at our properties.

We intend to use prudent
amounts of leverage in connection with our operations. As of September 30, 2025, our total indebtedness was approximately $426.0
million. Once we reach sufficient scale, we generally expect our total indebtedness to be less than 75% of the fair market value of our
real estate investments. However, we are not subject to any limitations on the amount of leverage we may use, and accordingly, the amount
of leverage we use may be significantly less or greater than we currently anticipate. Further, during our ramp-up to scale, we expect
that our leverage will fluctuate and for periods of time will exceed 75% of the fair market value of our real estate investments as appropriate.
For purposes of calculating our leverage, we include our consolidated real estate investments, include our preferred equity and loan
investments at cost, include assets we have classified as held for sale, and include any joint venture level indebtedness in our total
indebtedness.

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DISTRIBUTION POLICY</div>

We intend to maintain our
qualification as a REIT for U.S. federal income tax purposes. The Code generally requires that a REIT annually distribute at least 90%
of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain, and imposes
tax on any taxable income retained by a REIT, including capital gains.

To satisfy the requirements
for qualification as a REIT and generally not be subject to U.S. federal income and excise tax, we intend to make regular distributions
of all or substantially all of our REIT taxable income, determined without regard to dividends paid, to our stockholders out of assets
legally available for such purposes. All future distributions will be determined at the sole discretion of our board of directors on
a quarterly basis. When determining the amount of future distributions, we expect that our board of directors will consider, among other
factors, (i) the amount of cash generated from our operating activities, (ii) our expectations of future operating cash flows,
(iii) our determination of near-term cash needs for acquisitions of new properties, development investments, general property capital
improvements and debt repayments, (iv) our ability to continue to access additional sources of capital, (v