NEW YORK, Jan. 16, 2024 /PRNewswire/ -- Bluerock Homes Trust, Inc. (NYSE American: BHM) (the "Company") today announced that its Board of Directors has authorized and the Company has declared monthly cash dividends on the Company's Series A Redeemable Preferred Stock (the "Series A Preferred Stock") for the first quarter of 2024, equal to a quarterly rate of $0.375 per share (the "Series A Preferred Dividends"). The Series A Preferred Dividends will be payable in cash as follows: accrued but unpaid dividend ...

Revenue Growth - Rental and other property revenues increased by $1.6 million, or 18%, to $10.2 million for the three months ended September 30, 2023, compared to $8.6 million for the same prior year period, primarily due to unit count growth of 137 units [373]. - For the nine months ended September 30, 2023, rental and other property revenues increased by $7.5 million, or 32%, to $30.6 million compared to $23.1 million for the same prior year period, driven by unit count growth of 542 units [377]. - Total property income for the nine months ended September 30, 2023, was $12,589 million, an increase from $7,744 million in the prior year [383]. Operating Performance - As of September 30, 2023, consolidated operating investments were approximately 94.4% occupied, with a total of 3,996 residential units across 17 investments [366]. - Net operating income for the three months ended September 30, 2023, was $5,089 million, compared to $4,168 million for the same period in 2022 [383]. - Cash flows from operating activities for the nine months ended September 30, 2023, were $15,269,000, compared to $9,156,000 for the same period in 2022 [425]. Expenses - General and administrative expenses amounted to $5.5 million for the nine months ended September 30, 2023, compared to $5.0 million for the same prior year period [379]. - Property operating expenses increased by $3.2 million, or 29%, to $14.2 million for the nine months ended September 30, 2023, compared to $11.0 million for the same period in 2022 [409]. - Acquisition and other transaction costs amounted to $1.8 million for the nine months ended September 30, 2023, compared to $0.1 million for the same prior year period [410]. Financial Position - The total stockholders' equity decreased by $4.9 million from $160.0 million as of December 31, 2022, to $155.1 million as of September 30, 2023 [401]. - The fair value of mortgages payable was estimated at $91.9 million as of September 30, 2023 [273]. - The weighted average interest rate on mortgage notes payable was 4.21% as of September 30, 2023 [429]. Net Income and Loss - For the three months ended September 30, 2023, the net loss attributable to common stockholders was $(1,068) million, compared to a net income of $287 million for the same period in 2022 [383]. - The net loss attributable to common stockholders for the three months ended September 30, 2023, was $1,068,000, compared to a net income of $287,000 for the same period in 2022 [425]. - Funds from operations (FFO) attributable to common stockholders for the three months ended September 30, 2023, were $430,000, down from $3,598,000 in the same period last year [425]. Investment Activities - The acquisition of 18 single-family residential units in Savannah, Georgia was completed on February 23, 2023, for a purchase price of approximately $4.2 million, fully funded in cash [357]. - The company funded approximately $7.5 million of preferred equity investments in various joint ventures during the nine months ended September 30, 2023 [400]. - The company anticipates improvements in results from its existing portfolio due to future investments in single-family residential properties and build-to-rent developments [415]. Market Conditions and Future Outlook - The company continues to monitor inflation and rising interest rates, which could negatively impact residents' ability to pay rents and overall results of operations [355]. - The company plans to continue monitoring debt markets and access advantageous borrowings as market conditions permit [387]. - The company expects to meet its liquidity requirements for the next 12 months through available cash balances, cash flows from operations, and proceeds from various financing arrangements [415]. - The company may supplement its capital for short-term liquidity needs through potential offerings of common and preferred stock, depending on market conditions [416]. Dividends and Stock Offerings - The company filed a prospectus supplement offering a maximum of 20,000,000 shares of 6.0% Series A Redeemable Preferred Stock at $25.00 per share, aiming for a maximum offering amount of $500 million [370]. - The company intends to maintain its qualification as a REIT by distributing at least 90% of its REIT taxable income to stockholders annually [367]. - The company plans to maintain monthly dividends on its Series A Preferred Stock, with future distributions potentially coming from various sources including cash flow from operations and asset sales [419]. Interest Income - Interest income from loan investments decreased by $0.1 million, or 100%, to zero for the three months ended September 30, 2023, due to the payoff of one loan since September 30, 2022 [363]. - Interest income from loan investments decreased by $1.3 million, or 100%, to zero for the nine months ended September 30, 2023, due to the payoff of two loans in 2022 [408]. Interest Rate Sensitivity - A 100-basis point change in interest rates would affect interest expense by approximately $50,000 for the quarter ended September 30, 2023 [430]. - The average occupancy rate across properties was 94.4% [402].

Financial Performance - The total stockholders' equity decreased by $2.8 million from $160.0 million as of December 31, 2022, to $157.2 million as of June 30, 2023, primarily due to a net loss of $1.9 million [211]. - Rental and other property revenues increased by $5.9 million, or 40%, to $20.4 million for the six months ended June 30, 2023, compared to $14.5 million for the same prior year period [231]. - Net operating income (NOI) for the six months ended June 30, 2023, was $11.3 million, compared to $7.97 million in the prior year [246]. - Other income increased to $2.3 million for the three months ended June 30, 2023, compared to $0.1 million for the same prior year period [230]. Revenue and Occupancy - Rental and other property revenues increased by $2.6 million, or 34%, to $10.3 million for the three months ended June 30, 2023, compared to $7.7 million for the same period in 2022 [221]. - Average rent per occupied unit rose by $151, or 10.7%, to $1,557 compared to $1,406 during the prior year period [222]. - Average occupancy increased by 250 basis points from 91.8% to 94.3% year-over-year [222]. - Average rent per occupied unit rose by $172, or 12.5%, to $1,549, while average occupancy increased by 200 basis points from 94.2% to 92.2% year over year [232]. Expenses - Property operating expenses increased by $0.8 million, or 21%, to $4.6 million for the three months ended June 30, 2023, compared to $3.8 million for the same period in 2022 [224]. - Property operating expenses increased by $2.5 million, or 39%, to $9.1 million for the six months ended June 30, 2023, primarily due to home acquisitions and additional repairs [234]. - General and administrative expenses amounted to $1.8 million for the three months ended June 30, 2023, compared to $1.6 million for the same prior year period [226]. - General and administrative expenses amounted to $3.8 million for the six months ended June 30, 2023, up from $3.2 million in the prior year [236]. - Management fees to related parties amounted to $2.0 million for the three months ended June 30, 2023, with no management fee expense prior to October 6, 2022 [227]. - Property management and asset management fee expenses increased to $1.1 million for the three months ended June 30, 2023, compared to $0.8 million in the same prior year period [225]. - Property management and asset management fee expenses rose to $2.2 million for the six months ended June 30, 2023, compared to $1.5 million in the same prior year period [235]. Investments and Acquisitions - The company acquired 18 single-family residential units in Savannah, Georgia for approximately $4.2 million, fully funded in cash [206]. - During the six months ended June 30, 2023, the company increased its preferred equity investment commitments by $4.4 million across two joint ventures [210]. - The company acquired noncontrolling interests in properties, increasing ownership in Savannah-84 to 100% and in Indy-Springfield to 100% [208]. - The total number of preferred equity investments increased to $86.2 million at June 30, 2023, compared to $72.1 million at June 30, 2022 [230]. Cash Flow and Liquidity - As of June 30, 2023, the company had $79.9 million in cash available and a capacity of $100 million on revolving credit facilities, with approximately $17 million available [252]. - The company expects to fund liquidity requirements through cash flows from operations, proceeds from the Series A Redeemable Preferred Offering, and future mortgage debt financings [251]. - As of June 30, 2023, net cash provided by operating activities was $2.1 million, following a net loss of $6.5 million, adjusted for non-cash items of $9.1 million [264]. - During the six months ended June 30, 2023, net cash used in investing activities was $6.7 million, primarily due to $6.7 million in additional investments in unconsolidated real estate joint ventures [265]. - Net cash provided by financing activities was $8.2 million, mainly from $21.0 million in proceeds from revolving credit facilities [267]. Debt and Interest Rates - Estimated future required payments on mortgage notes payable and revolving credit facilities totaled $196.1 million as of June 30, 2023 [258]. - The weighted average interest rate on outstanding mortgage notes payable was 5.35% as of June 30, 2023 [87]. - A 100-basis point increase in interest rates would increase interest expense by approximately $50,000 for the quarter ended June 30, 2023 [90]. Market Conditions and Risks - The company is monitoring inflation and rising interest rates, which could negatively impact residents' ability to pay rents and overall results of operations [203]. - The company is subject to various legal actions but does not believe these will have a material adverse effect on its financial position or results of operations [192]. - The company has off-balance sheet arrangements that may materially affect its financial condition, revenues, or expenses as of June 30, 2023 [263]. - The company owns interests in seven joint ventures accounted for as held to maturity debt securities as of June 30, 2023 [263]. - Preferred equity investments are structured to provide a current and/or accrued preferred return during all phases of development [262]. REIT Qualification - The company intends to qualify as a REIT, requiring annual distribution of at least 90% of its REIT taxable income to stockholders [202].

Financial Position - As of March 31, 2023, the fair value of the Company's mortgages payable is estimated at $94.1 million, compared to a carrying amount of $99.0 million [109]. - As of March 31, 2023, the total mortgage notes payable amounted to $97.854 billion, with a weighted average interest rate of 5.26% [81]. - The company has revolving credit facilities totaling $49 million, with a weighted average interest rate of 7.61% [81]. Interest Rate Management - The Company had interest rate caps and swaps that limit exposure to interest rate risk for $68.6 million of its debt [114]. - Interest rate caps and swaps are in place to manage interest rate risk, effectively limiting exposure for $68.6 million of debt [81]. - The Company has not designated any interest rate derivatives as hedges, but believes they are effective economic hedges against interest rate increases [113]. - A 100-basis point increase or decrease in interest rates would result in an approximate $62,000 change in interest expense for the quarter ended March 31, 2023 [82]. Management Fees and Expenses - For the three months ended March 31, 2023, the Company recorded a base management fee of $1.9 million and expense reimbursements of $0.4 million [118]. - Total amounts payable to the Manager as of March 31, 2023, were $2.361 million, an increase from $2.211 million as of December 31, 2022 [120]. - The Management Agreement with the Manager requires a base management fee of 1.50% of the Company's New Stockholders' Equity per year [116]. Shareholder Information - The Company distributed an aggregate of 3,843,502 shares of common stock to stockholders on October 6, 2022, as part of a spin-off transaction [124]. - The number of outstanding shares as of May 8, 2023, includes 3,835,013 shares of Class A Common Stock and 8,489 shares of Class C Common Stock [132]. Economic Risks - The Company is exposed to economic risks including interest rate, liquidity, and credit risk, managed through its core business activities and derivative financial instruments [110]. - The Company had no receivables due from any related parties as of March 31, 2023 [120]. Earnings Per Share - Basic net loss per common share is calculated based on net loss attributable to common stockholders divided by the weighted average number of common shares outstanding [125].

Real Estate Investments - The company has a current portfolio primarily consisting of single-family residential homes concentrated in specific markets, with expectations to maintain this focus going forward [24]. - As of December 31, 2022, the company held 17 real estate investments, including 10 consolidated operating investments and 7 preferred equity investments, totaling 2,340 units [325]. - The company sold six multifamily consolidated operating investments in 2021, marking a strategic shift towards single-family residential units [378]. Financial Performance - The company recorded a loss on the sale of Plantation Park amounting to $1.1 million, with net proceeds of approximately $4.9 million from the sale [316]. - The sale of The District at Scottsdale generated net proceeds of approximately $74.8 million and a gain on sale of approximately $29.6 million [319]. - The sale of ARIUM Grandewood generated net proceeds of approximately $25.1 million and a gain on sale of approximately $27.7 million [382]. - The sale of James at South First resulted in net proceeds of approximately $21.1 million and a gain on sale of approximately $17.4 million [383]. - The sale of Marquis at The Cascades properties generated net proceeds of approximately $37.3 million and a gain on sale of approximately $23.7 million [385]. - The company recorded a loss on extinguishment of debt of $2.6 million related to the sale of James at South First [383]. - The company recorded a loss on extinguishment of debt of $0.3 million related to the sale of Marquis at The Cascades [385]. Capital and Financing - The company has limited sources of capital, primarily relying on future mortgage debt financings, cash from property operations, and a $150 million revolving credit facility [26]. - The company may face challenges in fully funding distributions from cash flows generated by operating activities, potentially relying on financing activities, borrowings, and other sources [360]. - The company has not established a cap on the amount of distributions that may be paid from financing sources, which could lead to future liabilities and impact cash available for operations and investments [363]. Interest Rate and Risk Management - A 100 basis point increase or decrease in interest rates on variable rate debt would result in an annual increase or decrease in future interest expense of approximately $0.2 million [314]. - The company’s interest rate risk is monitored using various techniques, with a focus on the variability of future interest rates [311]. Depreciation and Expenses - The company incurred depreciation expenses of $12.9 million and $3.6 million for the years ended December 31, 2022, and 2021, respectively [327]. Tenant and Lease Information - As of December 31, 2022, security deposits related to tenant leases totaled $2.1 million, up from $1.5 million in 2021, indicating a 40% increase year-over-year [331]. - The Company has a total of 122 lease-up units planned, with actual occupancy expected to begin in Q4 2022 for The Woods at Forest Hill and Q2 2022 for Willow Park [332]. - The Cottages at Myrtle Beach, with 294 units, is expected to reach initial occupancy in Q2 2023, while construction completion is anticipated in Q4 2023 [332]. Preferred Stock and Shareholder Considerations - The Company may redeem Series A Redeemable Preferred Stock voluntarily after two years from issuance, which could expose holders to reinvestment risk if market conditions change [333]. - The liquidation preference for Series A Redeemable Preferred Stock is fixed at $25.00 per share, plus accrued and unpaid dividends [342]. - The Company is subject to Maryland law, which limits its ability to pay dividends or redeem shares if it cannot meet its debt obligations [346]. - Holders of Series A Redeemable Preferred Stock face inflation risk, as the real value of their investment may decline due to rising prices [339]. - There is currently no public trading market for Series A Redeemable Preferred Stock, which may limit holders' ability to sell their shares [352]. - The Manager and its affiliates will receive fees and expense reimbursements that reduce the cash available for distribution to stockholders [359]. - The Company has restrictions on ownership of Series A Redeemable Preferred Stock to maintain its qualification as a REIT, limiting any single holder to a maximum of 9.8% [345]. Personnel and Management - The company’s success is significantly dependent on key personnel, and the loss of any of these individuals could materially affect its business [30]. Credit Losses and Collateral Evaluation - The company estimates its provision for credit losses using a collective approach based on expected credit losses for the life of the investment [374]. - The company evaluates the value of underlying collateral to determine if a loan or preferred equity investment is fully recoverable, considering future cash flows and market conditions [377].

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 September 30, 2022 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. (Exact name of registrant as specified in its charter) Ma ...