Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ______ Commission File Number 001-41322 BLUEROCK HOMES TRUST, INC. (Address of principal executive offices) (Zip Code) (212) 843 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (212) 843-1601 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Exchange Act: (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ ...

Company Overview - Bluerock Homes Trust, Inc. (NYSE American: BHM) is an externally managed REIT based in New York, focusing on institutional residential properties including single-family homes and build-to-rent communities [2] - The company's primary objective is to generate attractive risk-adjusted investment returns through the acquisition and development of residential units, as well as through value-add renovations [2] - BHM targets high disposable income renters in growth markets with strong long-term demand fundamentals for residential rentals, particularly in the Sunbelt and high-growth areas of the Western United States [2] Recent Developments - The Board of Directors of Bluerock Homes Trust has scheduled the 2025 annual meeting of stockholders for June 11, 2025, with a record date of April 11, 2025, for determining stockholders entitled to vote [1]

Core Viewpoint - Bluerock Homes Trust, Inc. has declared quarterly cash dividends for its Class A and Class C Common Stock for fiscal year 2025, reflecting a commitment to shareholder returns aligned with operational performance and cash flow stability [1][3]. Dividend Declaration - The annualized Common Stock dividend is set at $0.50 per share, translating to $0.125 per share quarterly [2]. - Dividends will be payable on April 4, July 3, October 3, 2025, and January 5, 2026, to shareholders of record on March 25, June 25, September 25, and December 24, 2025, respectively [2]. Company Overview - Bluerock Homes Trust, Inc. is an externally managed REIT focused on high-quality single-family properties in attractive markets, particularly in the Sunbelt and high-growth areas of the Western United States [4]. - The company's objective is to generate attractive risk-adjusted investment returns by assembling a portfolio of single-family rental homes and developing build-to-rent communities [4]. - The target market includes middle-market renters seeking the single-family lifestyle without the burdens of home ownership [4]. About Bluerock - Bluerock is a leading institutional alternative asset manager with over 100 years of collective investing experience and more than $120 billion in capital markets experience [5]. - The firm manages over $19 billion in acquired and managed assets, offering a range of public and private investment programs aimed at providing predictable income, capital growth, and tax benefits [5].

Core Viewpoint - Bluerock Homes Trust, Inc. has introduced a new Series A Preferred Stock Redemption Safeguard Policy to protect shareholders from potential losses when redeeming their preferred stock [1][2][4]. Company Overview - Bluerock Homes Trust, Inc. is an externally managed REIT focused on owning and operating high-quality single-family properties in attractive markets, particularly in the Sunbelt and high-growth areas of the Western United States [5]. - The company's primary objective is to generate attractive risk-adjusted investment returns by assembling a portfolio of single-family rental homes and developing build-to-rent communities [5]. Series A Preferred Stock Details - As of January 31, 2025, the company has raised over $120 million in Series A Preferred Stock at a price of $25 per share, with a minimum annual dividend yield of 6.5% [3]. - The Series A Preferred Stock dividends for 2024 benefited from favorable tax treatment, resulting in a tax-equivalent yield of approximately 7.93% [3]. - The Series A Preferred Stock is backed by approximately $840 million in gross assets, with ownership and investments in 45,000 single-family and built-to-rent homes, achieving a 94.3% occupancy rate and a low net debt of 9% as of September 30, 2024 [3][10]. New Redemption Safeguard Policy - The new policy allows shareholders who redeem their Series A Preferred Stock and subsequently sell the received Class A Common Stock at a loss within 10 business days to apply to the company for compensation, excluding transaction costs or redemption fees [2]. - This policy applies retroactively and going forward to all holders of the Series A Preferred Stock [2]. Management Commentary - The CEO of Bluerock Homes Trust expressed satisfaction in providing an innovative safeguard against downside risk for preferred shareholders during the redemption process [4].

Core Viewpoint - Bluerock Homes Trust, Inc. has announced the income tax treatment for its 2024 dividends on common and preferred stock, detailing the distribution rates and classifications for tax purposes [1][3]. Summary by Category Common Stock - The Class A and Class C common stock had a record date of December 29, 2023, with a payable date of January 5, 2024, distributing $0.840551 per share as a non-dividend return of capital for tax year 2024 [2]. - A one-time special cash dividend of $1.00 per share was paid, with $0.159449 included in the 2023 taxable dividend [2]. Preferred Stock - The Series A Preferred Stock has multiple CUSIP numbers and will have dividends distributed on various dates throughout 2024, starting from January 25, 2024, with a per-share distribution rate of $0.125337 [3][4]. - The distribution rates for Series A Preferred Stock dividends range from $0.125337 to $0.152775 across the months of January to November 2024, maintaining a consistent ordinary dividend rate of 8.040619% [4][5]. Company Overview - Bluerock Homes Trust, Inc. is an externally managed REIT focused on owning and operating single-family rental properties in high-growth markets, particularly in the Sunbelt and Western United States [6]. - The company's strategy aims to generate attractive risk-adjusted investment returns by targeting middle-market renters seeking single-family lifestyles without the burdens of home ownership [6].

Real Estate Investments - As of September 30, 2024, the company held 20 real estate investments, comprising 4,000 residential units, with consolidated operating investments approximately 90.5% occupied[142] - The company acquired the Villas at Huffmeister for $41.2 million, funded by a $24.3 million senior loan and $18.1 million in cash[147] - A joint venture was established to develop 82 build-to-rent units in Bluffton, South Carolina, with a commitment of $5.3 million, earning a 17.0% annual return[148] - The company acquired Avenue at Timberlin Park for $33.8 million, funded by a $23.7 million senior loan and $12.9 million in cash[149] - The sale of Navigator Villas generated net proceeds of approximately $12.7 million and a gain on sale of approximately $10.0 million[150] - The company recorded an impairment of $0.9 million and $2.1 million for held-for-sale units for the three and nine months ended September 30, 2024, respectively[155] - The company has a remaining commitment of $5.5 million for the Wayford at Pringle loan investment[152] - The company’s strategy includes acquiring pre-existing single-family residential units and developing build-to-rent communities to drive growth in funds from operations[141] - The total estimated project cost for the Abode Wendell Falls development is $56.9 million, with $6.9 million incurred as of September 30, 2024[160] - The company acquired 294 units at Villas at Huffmeister and 200 units at Avenue at Timberlin Park during 2024, contributing to revenue growth[163] Financial Performance - Rental and other property revenues increased by $1.8 million, or 18%, to $12.0 million for the three months ended September 30, 2024, compared to $10.2 million for the same prior year period[163] - Average rent per occupied unit increased by $54, or 3.4%, to $1,635 compared to $1,581 during the prior year period[164] - Average occupancy decreased by 20 basis points from 91.1% to 90.9% on a year-over-year basis[164] - Property operating expenses increased by 26.3% to $6.4 million for the three months ended September 30, 2024, compared to $5.1 million for the same prior year period[161] - Net operating income for the three months ended September 30, 2024, was $5.5 million, an increase of 8.9% from $5.1 million in the same prior year period[161] - Other income increased to $8.4 million for Q3 2024, compared to $0.2 million in Q3 2023, driven by a $10.3 million increase in gains on real estate sales[171] - Rental and other property revenues increased by $4.1 million, or 13%, to $34.7 million for the nine months ended September 30, 2024, due to acquisitions and rental rate improvements[172] - Average rent per occupied unit increased by $57, or 3.7%, to $1,617 for the nine months ended September 30, 2024[173] - Property operating expenses for the nine months ended September 30, 2024, increased by $3.2 million, or 23%, to $17.4 million, primarily due to acquisitions[174] - Net income attributable to common stockholders for the three months ended September 30, 2024, was $921,000, compared to a loss of $1,068,000 for the same period in 2023[185] - Net operating income (NOI) for the nine months ended September 30, 2024, was $17,279,000, an increase from $16,358,000 for the same period in 2023[185] Capital Structure and Financing - The company issued 3,459,331 shares of 6.0% Series A Redeemable Preferred Stock, raising approximately $76.7 million in net proceeds[156] - Total stockholders' equity decreased by $4.5 million from $147.4 million as of December 31, 2023, to $142.9 million as of September 30, 2024, primarily due to $2.2 million related to the acquisition of noncontrolling interests and preferred dividends declared[158] - Cash available as of September 30, 2024, was $155.1 million, with an additional capacity of $65 million on revolving credit facilities[189] - Contractual obligations include $126.8 million in mortgages payable and $105 million in revolving credit facilities as of September 30, 2024[190] - The company plans to finance long-term liquidity needs through additional issuances of common and preferred stock, as well as project-based borrowings[195] - The board authorized a stock repurchase plan for up to $5 million of Class A common stock, which may be conducted over one year[193] - Net cash provided by financing activities during the same period was $96.8 million, driven by $76.7 million from the issuance of Series A Preferred Stock and $35.0 million from revolving credit facilities[205] Expenses and Cash Flow - General and administrative expenses rose to $2.5 million for Q3 2024, up from $1.7 million in Q3 2023, with $1.5 million related to direct costs and $1.0 million for operating expense reimbursement[168] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $4.1 million, despite a net loss of $4.8 million[203] - Net cash used in investing activities for the nine months ended September 30, 2024, was $22.4 million, primarily due to $51.5 million for acquiring real estate investments and $24.6 million for investments in notes receivable[204] - Total capital expenditures for the nine months ended September 30, 2024, amounted to $5.977 million, a decrease from $6.499 million in the same period of 2023[206] Funds from Operations - Funds from Operations (FFO) attributable to common stockholders for the nine months ended September 30, 2024, was $(2.092) million compared to $1.361 million in 2023[213] - Core Funds from Operations (CFFO) attributable to common stockholders for the nine months ended September 30, 2024, was $8.695 million, down from $15.269 million in 2023[213] - FFO per share for the nine months ended September 30, 2024, was $(0.17), compared to $0.12 in the same period of 2023[213] - CFFO per share for the nine months ended September 30, 2024, was $0.71, compared to $1.33 in 2023[213] Interest Rate and Risk Management - As of September 30, 2024, the company had interest rate caps and swaps covering $128.5 million of its debt to manage interest rate risk[223] - A 100-basis point increase in interest rates would increase interest expense by approximately $50,000 for the quarter ended September 30, 2024[224] - The weighted average interest rate on mortgage notes payable is 5.22% as of September 30, 2024, with total mortgage notes payable amounting to $126.8 million[225] - The fair value of mortgages payable is estimated at $124.1 million as of September 30, 2024[225] - The company is exposed to interest rate risk primarily through borrowing activities, with inherent roll-over risk for borrowings[220] Corporate Governance and Compliance - The company has instituted additional procedures to ensure timely filings following a delinquent Form 8-K related to a real estate acquisition[229] - There have been no changes in internal controls over financial reporting that materially affected the company during the quarter ended September 30, 2024[230] - As of September 30, 2024, total indebtedness was approximately $231.8 million, including $105.0 million under revolving credit facilities[234] - The company has issued and outstanding 3,889,446 shares of Series A Preferred Stock as of September 30, 2024[234] - The Board modified and extended the Original Exemption, with the new Revocation Date set for December 31, 2025[238] - The Aggregate Share Ownership Limit and the Common Share Ownership Limit were decreased from 9.8% to 8.75% for stockholders not classified as Excepted Holders[237] Dividends and Distributions - The Series A Preferred Stock regular monthly dividend is $0.125 per outstanding share, with an enhanced special dividend commencing in May 2024, subject to a minimum of 6.5% and a maximum of 8.5% annual rate[157] - The company declared a special dividend of $1.00 for both Class A and Class C common stock, payable on January 5, 2024[215] - The company has a policy to maintain distributions equal to at least 90% of its REIT taxable income to maintain its REIT status[217] - The company’s distribution rate and payment frequency may vary based on funds available from operations and capital expenditure requirements[217]

Core Viewpoint - Bluerock Homes Trust, Inc. has declared monthly cash dividends on its Series A Redeemable Preferred Stock for the fourth quarter of 2024, with a quarterly rate of $0.375 per share [1][2]. Dividend Details - The Series A Preferred Dividends will be paid as follows: $0.125 per share on November 5, 2024; $0.125 per share on December 5, 2024; and $0.125 per share on January 3, 2025, to stockholders of record on October 25, November 25, and December 24, 2024, respectively [2]. - Newly-issued shares will receive a prorated dividend based on the number of days they were outstanding during the applicable dividend period [2]. Enhanced Special Dividends - The Company has also declared enhanced special dividends for the fourth quarter of 2024, which will be aggregated with the regular monthly dividends, resulting in a rate of the average one month term Secured Overnight Financing Rate (SOFR Rate) plus 2.0%, with a minimum of 6.5% and a maximum of 8.5% annual rate [3]. - These enhanced special dividends will be calculated based on the SOFR Rate for each day from the 26th of the prior month to the 25th of the applicable month, payable on the 5th of each month [3]. Company Overview - Bluerock Homes Trust, Inc. is an externally managed REIT focused on high-quality single-family properties in attractive markets, particularly in the Sunbelt and high-growth areas of the Western United States [4]. - The Company's objective is to generate attractive risk-adjusted investment returns by assembling a portfolio of single-family rental homes and developing build-to-rent communities [4]. - The target market includes middle-market renters seeking the single-family lifestyle without the costs associated with home ownership [4].

Real Estate Investments - As of June 30, 2024, the company held 21 real estate investments, comprising 4,362 residential units, with consolidated operating investments approximately 92.2% occupied[115] - The company acquired the Villas at Huffmeister, a 294-unit community in Houston, Texas, for $41.2 million, funded by a $24.3 million loan and $17.4 million in cash[121] - A joint venture was established to develop 82 build-for-rent units in Bluffton, South Carolina, with a commitment of $5.3 million, earning a 17.0% annual return[122] - The company sold 37 units for approximately $6.5 million, generating net proceeds of about $6.2 million and a gain of approximately $0.7 million[123] - Total operating units as of June 30, 2024, amounted to 2,732, including 391 units classified as held for sale[129] Financial Performance - Total rental and other property revenues for Q2 2024 reached $11,936,000, a 16.2% increase from $10,270,000 in Q2 2023[130] - Net operating income for the six months ended June 30, 2024, was $11,737,000, reflecting a 4.2% increase from $11,269,000 in the same period of 2023[130] - Average rental rate increased to $1,615 in Q2 2024, a 3.7% rise from $1,557 in Q2 2023[130] - Rental and other property revenues increased by $2.3 million, or 11%, to $22.7 million for the six months ended June 30, 2024, compared to $20.4 million for the same prior year period[143] - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $(1,632) thousand, compared to $(335) thousand for the same period in 2023, representing a significant increase in losses[154] Occupancy Rates - The company’s consolidated operating investments, excluding units held for sale, were approximately 95.4% occupied[115] - The occupancy rate for Peak Housing investments was 94.4% as of June 30, 2024[133] - The occupancy rate for The Cottages at Myrtle Beach was 63.6% as of June 30, 2024[133] - The Woods at Forest Hill had an occupancy rate of 80.5% as of June 30, 2024[133] - Wayford at Innovation Park commenced lease-up in August 2023, with an occupancy rate of 31.4% as of June 30, 2024[133] Expenses and Losses - Property operating expenses increased by $1.9 million, or 20%, to $11.0 million for the six months ended June 30, 2024, compared to $9.1 million for the same prior year period[145] - General and administrative expenses amounted to $2.4 million for the three months ended June 30, 2024, compared to $1.8 million for the same prior year period[139] - Depreciation and amortization expenses were $8.8 million for the six months ended June 30, 2024, compared to $8.0 million for the same prior year period[149] - Funds from Operations (FFO) attributable to common stockholders and unit holders for the six months ended June 30, 2024, was $(8,357) thousand, compared to $(5,513) thousand for the same period in 2023[182] - Core Funds from Operations (CFFO) attributable to common stockholders and unit holders for the three months ended June 30, 2024, was $3,064 thousand, down from $5,436 thousand in 2023, representing a decrease of 43.6%[182] Cash Flow and Financing - The company had $116.0 million in cash available as of June 30, 2024, with an additional capacity of $65 million on revolving credit facilities[158] - Net cash provided by operating activities for the six months ended June 30, 2024, was $2.4 million, despite a net loss of $8.3 million[171] - Net cash used in investing activities during the six months ended June 30, 2024, was $25.2 million, reflecting ongoing investments in real estate[172] - Net cash provided by financing activities during the six months ended June 30, 2024, was $60.0 million, with $17.5 million used for acquiring consolidated real estate investments[175] - The company plans to finance long-term liquidity needs through additional issuances of common and preferred stock, as well as borrowings[163] Dividends and Stock - The company declared a special dividend of $1.00 for both Class A and Class C common stock, payable on January 5, 2024[184] - The board authorized a stock repurchase plan for up to $5 million of Class A common stock, which may be executed based on market conditions[161] - The company issued 1,761,120 shares of 6.0% Series A Redeemable Preferred Stock, raising approximately $38.8 million in net proceeds[127] Interest Rates and Risks - The company continues to monitor inflation and rising interest rates, which could negatively impact residents' ability to pay rents and overall operational results[118] - The company has a total mortgage notes payable of $123.039 million, with a weighted average interest rate of 5.06%[191] - The company has revolving credit facilities totaling $105 million, with a weighted average interest rate of 8.19%[191] - Interest rate caps and swaps are in place to mitigate exposure to interest rate risk for $128.5 million of the company's debt[192] - A 100-basis point increase or decrease in interest rates would affect interest expense by approximately $50,000 for the quarter ended June 30, 2024[192]

Since I last wrote about the real estate investment trust [REIT] Bluerock Homes Trust (NYSE:BHM) in October last year, its price is up by an impressive 45%. Not only is this rise notable in its own right, it also stands out when compared with the real estate sector as such. This is evident from the fact that the increase is more than double that for the S&P 500 Real Estate Index over this time, of 21.8%. Further, the rise is despite the fact that it wasn't entirely in a positive place at that time. To be fa ...