What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 436 added, 546 removed, 720 unchanged (58% of the section changed)

3 unchanged sentences

(In thousands, except share and per share amounts)

September 30,

Net Real Estate Investments

9 unchanged sentences

Restricted cash

Notes and accrued interest receivable, net

Investment in unconsolidated real estate funds

1 unchanged sentence

Preferred equity investments, net

In-place lease intangible assets, net

Other intangible assets, net

Due from affiliates

2 unchanged sentences

Mortgages payable

Revolving credit facilities

Accounts payable

5 unchanged sentences

6.0 % Series A Redeemable Preferred Stock, liquidation preference $ 25.00 per share, 30,000,000 shares authorized;

6,087,829 and 4,628,681 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

6,473,063 and 6,288,703 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

7.5 % Series B Redeemable Preferred Stock, liquidation preference $ 25.00 per share, 14,000,000 shares authorized;

104,288 and no shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Stockholders’ Equity

Preferred stock, $ 0.01 par value, 206,000,000 shares authorized;

no shares issued and outstanding at September 30, 2025 and December 31, 2024

no shares issued and outstanding at March 31, 2026 and December 31, 2025

Common stock - Class A, $ 0.01 par value, 562,500,000 shares authorized;

4,048,078 and 3,953,919 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

4,043,514 and 4,047,114 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Common stock - Class C, $ 0.01 par value, 187,500,000 shares authorized;

8,489 shares issued and outstanding at September 30, 2025 and December 31, 2024

8,489 shares issued and outstanding at March 31, 2026 and December 31, 2025

Additional paid-in-capital

Cumulative earnings in excess of distributions

Accumulated other comprehensive income (loss)

Accumulated other comprehensive gain

Total Stockholders’ Equity

6 unchanged sentences

BLUEROCK HOMES TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)

(In thousands, except share and per share amounts)

Three Months Ended

Nine Months Ended

September 30,

Rental and other property revenues

7 unchanged sentences

Weather-related losses, net

Impairment of real estate investments

Depreciation and amortization

1 unchanged sentence

Other (expense) income

Other (expense) income, net

Other expense, net

Income from preferred equity investments

Income from investments in unconsolidated real estate funds

(Provision for) recovery of credit losses, net

(Impairment) and gain on sale of real estate investments, net

Gain on sale of available-for-sale investments, net

Share of net earnings of equity method investment

Recovery of credit losses, net

Gain on sale of real estate investments, net

Loss on extinguishment of debt costs

1 unchanged sentence

Interest income

Total other (expense) income

(Loss) income before income taxes

Total other expense

Loss before income taxes

Income tax expense

Net (loss) income

Preferred stock dividends

Preferred stock accretion

Net loss (income) attributable to noncontrolling interests

Net loss attributable to noncontrolling interests

Operating partnership units

Partially-owned properties

Net loss (income) attributable to noncontrolling interests

Net (loss) income attributable to common stockholders

Net (loss) income per common share – Basic

Net (loss) income per common share – Diluted

Net loss attributable to noncontrolling interests

Net loss attributable to common stockholders

Net loss per common share – Basic

Net loss per common share – Diluted

Weighted average basic common shares outstanding

Weighted average diluted common shares outstanding

Other comprehensive (loss) income

Unrealized (loss) gain on available-for-sale investments, net

Less unrealized loss (gain) attributable to Operating partnership units

Other comprehensive (loss) income attributable to common stockholders

Comprehensive loss (income) attributable to noncontrolling interests

Comprehensive (loss) income attributable to common stockholders

Other comprehensive income

Unrealized gain on available for sale investments

Less unrealized gain attributable to Operating partnership units

Other comprehensive income attributable to common stockholders

Comprehensive loss attributable to noncontrolling interests

Comprehensive loss attributable to common stockholders

See Notes to Consolidated Financial Statements

BLUEROCK HOMES TRUST, INC.

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025

FOR THE THREE MONTHS ENDED MARCH 31, 2026

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)

4 unchanged sentences

Noncontrolling

Income (Loss)

Balance, July 1, 2025

Issuance of restricted Class A common stock for equity incentive plan compensation, net of shares withheld for employee taxes and forfeitures

Issuance of long-term incentive plan (“LTIP”) Units for equity incentive plan compensation, net of forfeitures

Issuance of C-LTIP Units to Manager

Balance, January 1, 2026

(Forfeiture) issuance of restricted Class A common stock for equity incentive plan compensation

Issuance of long-term incentive plan units (“LTIP Units”) for equity incentive plan compensation

Issuance of C-LTIP Units to Bluerock Homes Manager, LLC (“Manager”)

Common stock distributions declared

1 unchanged sentence

Series A Preferred Stock accretion

Series B Preferred Stock distributions declared

Series B Preferred Stock accretion

Distributions to Operating Partnership noncontrolling interests

Distributions to partially owned properties’ noncontrolling interests

Acquisition of noncontrolling interests

Contributions from noncontrolling interests

Total comprehensive loss

Total comprehensive income

Cash redemption of Series A Preferred Stock

2 unchanged sentences

Net income (loss)

Balance, September 30, 2025

See Notes to Consolidated Financial Statements

BLUEROCK HOMES TRUST, INC.

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)

(In thousands, except share amounts)

Class A Common Stock

Class C Common Stock

Noncontrolling

Balance, July 1, 2024

Issuance of restricted Class A common stock for equity incentive plan compensation, net of shares withheld for employee taxes and forfeitures

Issuance of LTIP Units for equity incentive plan compensation

Issuance of C-LTIP Units to Manager

Series A Preferred Stock distributions declared

Distributions to partially owned properties’ noncontrolling interests

Acquisition of noncontrolling interests

Holder redemption of Series A Preferred Stock and conversion into Class A common stock

Contributions from noncontrolling interests

Adjustment for noncontrolling interest ownership in the Operating Partnership

Balance, September 30, 2024

Balance, March 31, 2026

See Notes to Consolidated Financial Statements

BLUEROCK HOMES TRUST, INC.

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

FOR THE THREE MONTHS ENDED MARCH 31, 2025

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)

6 unchanged sentences

Balance, January 1, 2025

Issuance of restricted Class A common stock for equity incentive plan compensation, net of shares withheld for employee taxes and forfeitures

Issuance of LTIP Units for equity incentive plan compensation, net of forfeitures

(Forfeiture) issuance of restricted Class A common stock for equity incentive plan compensation

Issuance of LTIP Units for equity incentive plan compensation

Issuance of C-LTIP Units to Manager

4 unchanged sentences

Distributions to partially owned properties' noncontrolling interests

Acquisition of noncontrolling interests

Contributions from noncontrolling interests

Total comprehensive income

Cash redemption of Operating Partnership Units

Holder redemption of Series A Preferred Stock and conversion into Class A common stock

Cash redemption of Series A Preferred Stock

Adjustment for noncontrolling interest ownership in the Operating Partnership

1 unchanged sentence

Net income (loss)

Balance, September 30, 2025

See Notes to Consolidated Financial Statements

BLUEROCK HOMES TRUST, INC.

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)

(In thousands, except share amounts)

Class A Common Stock

Class C Common Stock

Noncontrolling

Balance, January 1, 2024

Issuance of restricted Class A common stock for equity incentive plan compensation, net of shares withheld for employee taxes and forfeitures

Issuance of LTIP Units for equity incentive plan compensation

Issuance of C-LTIP Units to Manager

Series A Preferred Stock distributions declared

Series A Preferred Stock accretion

Distributions to partially owned properties’ noncontrolling interests

Acquisition of noncontrolling interests

Holder redemption of Series A Preferred Stock and conversion into Class A common stock

Contributions from noncontrolling interests

Adjustment for noncontrolling interest ownership in the Operating Partnership

Net income (loss)

Balance, September 30, 2024

Balance, March 31, 2025

See Notes to Consolidated Financial Statements

2 unchanged sentences

(In thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities

3 unchanged sentences

Income from preferred equity investments

Income from investments in unconsolidated real estate funds

Impairment and (gain on sale) of real estate investments, net

Gain on sale of available-for-sale investments, net

Share of net earnings of equity method investment

Gain on sale of real estate investments, net

Impairment of real estate investments

Fair value adjustment of interest rate caps and swaps

(Recovery of) provision for credit losses, net

Recovery of credit losses, net

Loss on extinguishment of debt costs

Noncash operating lease expense

Distributions of income and income from preferred equity investments

Distributions of income from preferred equity investments

Distributions from investments in unconsolidated real estate funds

2 unchanged sentences

Changes in operating assets and liabilities:

Due to affiliates, net

Due from affiliates, net

Accounts receivable, prepaids and other assets

1 unchanged sentence

Accounts payable and other accrued liabilities

Net cash provided by operating activities

Net cash (used in) provided by operating activities

Cash flows from investing activities:

1 unchanged sentence

Capital expenditures

Purchase of interest rate cap

Investment in notes receivable

Investment in unconsolidated real estate fund

Repayments on notes receivable

Proceeds from sale of real estate investments

Proceeds from sale and redemption of preferred equity investments

Insurance proceeds related to real estate investments

Investment in preferred equity investments

Net cash used in investing activities

Net cash provided by investing activities

Cash flows from financing activities:

4 unchanged sentences

Contributions from noncontrolling interests

Purchase of interests from noncontrolling interests

Borrowings on mortgages payable

Repayments on mortgages payable including prepayment penalties

Proceeds from revolving credit facilities

Repayments on mortgages payable

Repayments on revolving credit facilities

2 unchanged sentences

Payments to redeem 6.0 % Series A Redeemable Preferred Stock

Payments to redeem Operating Partnership Units

Net cash provided by financing activities

Net increase in cash, cash equivalents and restricted cash

Net proceeds from issuance of 7.5 % Series B Redeemable Preferred Stock

Net cash used in financing activities

Net (decrease) increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of year

6 unchanged sentences

Cash paid for interest (net of interest capitalized)

Cash paid for income taxes

Supplemental disclosure of non-cash investing and financing activities

Distributions payable – declared and unpaid

Repayment of revolving credit facility with borrowings on mortgages payable

Mortgage assumed upon property acquisition

Distributions payable to common stockholders – declared and unpaid

Distributions payable to noncontrolling interests - declared and unpaid

Distributions payable to preferred stockholders - declared and unpaid

Capital expenditures held in accounts payable and other accrued liabilities

5 unchanged sentences

(the “Company”) was incorporated in Maryland on December 16, 2021.

The Company owns and operates a portfolio of institutional residential properties including single-family homes, build-to-rent communities, and other residential communities located in attractive markets with a focus on the knowledge-economy and high-quality of life growth markets of the Sunbelt and Western United States.

The Company owns and operates a portfolio of institutional residential properties including apartments, build-to-rent communities, single-family homes, and other residential communities located in attractive markets with a focus on the knowledge-economy and high-quality of life growth markets of the Sunbelt and Western United States.

The Company’s current investment strategy is focused on growing its portfolio of residential communities.

The Company’s principal objective is to generate attractive risk-adjusted returns on investments where it believes it can drive growth in funds from operations and net asset value by acquiring residential units, developing residential communities, and through Value-Add renovations.

The Company’s Value-Add strategy focuses on repositioning lower-quality, less current assets to drive rent growth and expand margins to increase net operating income and maximize the Company’s return on investment.

As of September 30, 2025, the Company held twenty-two real estate investments, consisting of seventeen consolidated investments and five preferred equity investments.

The twenty-two investments represent an aggregate of 5,282 residential units, comprised of 4,170 consolidated units, of which 358 units are under development, and 1,112 units through preferred equity investments, which includes planned units and those under development.

As of September 30, 2025, the Company’s consolidated operating investments were approximately 91.8 % occupied;

excluding units classified as held for sale and down/renovation units, the Company’s consolidated operating investments were approximately 93.7 % occupied.

As of March 31, 2026, the Company held twenty-four real estate investments, consisting of eighteen consolidated investments, five preferred equity investments, and one unconsolidated real estate fund investment.

The twenty-three consolidated and preferred equity investments represent an aggregate of 5,451 residential units, comprised of 4,302 consolidated units, of which 380 units are under development or in lease-up, and 1,149 units through preferred equity investments, which includes planned units and those under development.

The Company has elected to be treated, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes.

7 unchanged sentences

The consolidated financial statements include the Company’s accounts and those of the Operating Partnership and its subsidiaries.

As of September 30, 2025, limited partners other than the Company owned approximately 69.30 % of the common units of the Operating Partnership, of which 55.74 % were held by holders of limited partnership interest in the Operating Partnership (“OP Units”) and 13.56 % were held by holders of the Operating Partnership’s long-term incentive plan units (“LTIP Units”), including 2.99 % which were not vested at September 30, 2025.

As of March 31, 2026, limited partners other than the Company owned approximately 69.50 % of the common units of the Operating Partnership, of which 55.44 % were held by holders of limited partnership interest in the Operating Partnership (“OP Units”) and 14.06 % were held by holders of the Operating Partnership’s long-term incentive plan units (“LTIP Units”), including 2.36 % which were not vested at March 31, 2026.

Certain amounts in prior year financial statement presentation have been reclassified to conform to the current year presentation.

Specifically, impairment of real estate amounts that were previously included with gains on sales of real estate in a single line item on the consolidated statements of operations and comprehensive income (loss) are now presented separately within impairment of real estate investments.

In addition, in-place lease intangible assets that were previously presented as a separate line item on the consolidated balance sheets have been reclassified and are included within other intangible assets, net.

These reclassifications had no impact on net income (loss) as reported in the consolidated statements of operations and comprehensive income (loss), total assets, liabilities or equity as reported in the consolidated balances sheets, or the classifications within the consolidated statements of cash flows.

Summary of Significant Accounting Policies

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (“SEC”) on March 20, 2025 for discussion of the Company’s significant accounting policies.

During the nine months ended September 30, 2025, there were no material changes to these policies.

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2026 for discussion of the Company’s significant accounting policies.

During the three months ended March 31, 2026, there were no material changes to these policies.

Consolidated Investments in Real Estate, Preferred Equity Investments, Notes Receivable and Unconsolidated Funds

15 unchanged sentences

For investments that meet the criteria of a security under ASC 320 Investments – Debt Securities , the Company classifies each investment as an available-for-sale (“AFS”) debt security as it does not have the positive intent to hold all investments to maturity.

The Company accounts for these investments as preferred equity investments on its consolidated balance sheets, and it earns a fixed return on these investments which is included within income from preferred equity investments on its consolidated statements of operations and comprehensive income.

AFS debt securities are carried at fair value in the Company’s consolidated balance sheets, and any unrealized gains or losses on AFS debt securities are reported as a component of accumulated other comprehensive income on its consolidated balance sheets, and as a component of other comprehensive income on its consolidated statements of operations and comprehensive income.

The Company accounts for these investments as preferred equity investments in its consolidated balance sheets, and it earns a fixed return on these investments which is included within income from preferred equity investments in its consolidated statements of operations and comprehensive income (loss).

AFS debt securities are carried at fair value in the Company’s consolidated balance sheets, and any unrealized gains or losses on AFS debt securities are reported as a component of accumulated other comprehensive income in its consolidated balance sheets, and as a component of other comprehensive income in its consolidated statements of operations and comprehensive income (loss).

The Company evaluates each AFS debt security that has an unrealized loss recorded at the reporting date for a provision for credit loss, as applicable.

Refer to the Current Expected Credit Losses (“CECL”) section of this Note for further information regarding CECL and the Company’s provision for credit losses.

Prior to the fourth quarter 2024, the Company classified its preferred equity investments as held-to-maturity debt securities as the investments met the criteria of a security under ASC 320 Investments – Debt Securities .

As of September 30, 2025, the Company does not have the positive intent to hold all the securities to maturity.

As such, the Company has reclassified all its previously held-to-maturity debt securities to AFS debt securities.

For investments that do not meet the criteria of a security under ASC 320 Investments – Debt Securities , the Company will evaluate the characteristics and the facts and circumstances to determine if loan accounting treatment is appropriate.

As of March 31, 2026 and December 31, 2025, the Company classifies all preferred equity investments as AFS debt securities as it does not have the positive intent to hold all such investments to maturity.

For investments that do not meet the criteria of a security under ASC 320 Investments – Debt Securities , the Company evaluates the characteristics and the facts and circumstances to determine if loan accounting treatment is appropriate.

If loan accounting treatment is deemed appropriate, the Company recognizes interest income on its notes receivable on the accrual method unless a significant uncertainty of collection exists.

1 unchanged sentence

Costs incurred to originate its notes receivable are deferred and amortized using the effective interest method over the term of the related note receivable.

In circumstances where the Company does have significant influence in the investment, however the Company determines that the investment does not meet the criterial of a security under ASC 320 Investments – Debt Securities and that loan accounting treatment is not appropriate, the Company generally accounts for these investments under the equity method.

In circumstances where the Company does have significant influence in the investment, however the Company determines that the investment does not meet the criteria of a security under ASC 320 Investments – Debt Securities and that loan accounting treatment is not appropriate, the Company generally accounts for these investments under the equity method.

The equity method of accounting requires these investments to be initially recorded at cost and subsequently increased (decreased) for the Company’s share of net income (loss), and increased (decreased) for contributions (distributions).

The proportionate share of the results of operations of these investments is recognized on a one-quarter lag and is recorded in the Company’s earnings or losses.

For the three and nine months ended September 30, 2025, the Company recorded current income tax expense of approximately $ 0.3 million and $ 1.1 million, respectively, and state income tax expense of $ 0.1 million and $ 0.3 million, respectively, related to income earned in certain taxable REIT subsidiaries.

The Company records these amounts in income tax expense on the Company’s consolidated statements of operations and comprehensive income.

No income tax expense was recorded in 2024.

Real Estate Assets

Intangible Assets

In-place leases - The value of in-place leases represents the estimated fair value of the net cash flows of leases in place at the time of acquisition, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up.

The Company records the value of in-place leases within other intangible assets, net on its consolidated balance sheets.

The Company amortizes the value of in-place leases to expense over the remaining non-cancelable term of the respective leases, which is on average six months .

Amortization expense related to in-place leases was $ 1.5 million and $ 1.9 million for the three months ended March 31, 2026 and 2025, respectively.

The following table summarizes the Company’s in-place lease intangible assets at March 31, 2026 and December 31, 2025 (amounts in thousands):

Gross carrying value

Accumulated amortization

Net carrying value

The following table summarizes the Company’s in-place lease activity for the three months ended March 31, 2026 and year ended December 31, 2025 (amounts in thousands):

Beginning balances as of January 1, 2026 and 2025, respectively

In-place lease intangible assets, net, end of period

At March 31, 2026, the Company’s estimated aggregate amortization of its in-place lease intangible assets for the next five years is $ 0.6 million, with the full amount expected to be incurred in 2026 and no amount thereafter.

Real estate tax abatement - In connection with the acquisition of Skytop Apartments in September 2025, the Company allocated approximately $ 5.5 million of the purchase price to a real estate tax abatement, which is recorded within other intangible assets, net on the Company’s consolidated balance sheets.

The tax abatement is being amortized on a straight-line basis over its estimated remaining useful life of approximately 12.8 years.

During the three months ended March 31, 2026, the Company recorded amortization expense of $ 0.1 million related to the tax abatement.

The following table summarizes the real estate tax abatement at March 31, 2026 (amounts in thousands):

Gross carrying value

Accumulated amortization

Net carrying value

The following table presents the estimated future amortization expense of the real estate tax abatement as of March 31, 2026 (amounts in thousands):

Impairment of Operating Real Estate Assets

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its operating real estate and related intangible assets may not be recoverable.

The evaluation of real estate assets for potential impairment requires the Company’s management to exercise significant judgement and make certain key assumptions, including the following:

(i) capitalization rate, (ii) discount rate, (iii) number of years the property will be held, (iv) property operating revenue including occupancy and market rental rates, and (v) property operating expenses.

There are inherent uncertainties in making these estimates such as market conditions, and performance and sustainability of property operations.

When indicators of potential impairment suggest that the carrying value of operating real estate and related intangible assets may not be recoverable, the Company assesses the recoverability of the assets by estimating whether it will recover the carrying value of the asset through its undiscounted future cash flows and its eventual disposition.

Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the operating real estate and related intangible assets, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the operating real estate and related intangible assets.

Fair value is determined by using valuation techniques appropriate to the specific operating asset, which may include discounted cash flow analysis or a broker’s opinion of value.

No impairment losses on operating real estate and related intangible assets were recorded during the three months ended March 31, 2026 and 2025.

Held for Sale Real Estate Assets

Real estate assets are classified as held for sale when they meet the applicable GAAP criteria in accordance with ASC 360-10 Property, Plant, and Equipment - Overall , including, but not limited to, the availability of the real estate asset for immediate sale in its present condition, the existence of an active program to locate a buyer, the probable sale of the real estate asset within one year, and actions required to complete the sale of the real estate asset are likely to occur.

Real estate assets classified as held for sale are reported at the lower of their carrying value or estimated fair value less costs to sell and are presented separately within operating real estate held for sale, net on the consolidated balance sheets.

At March 31, 2026 and December 31, 2025, the Company classified an aggregate of 58 units and 107 units, respectively, as held for sale on its consolidated balance sheets, with all units reported in the Company’s scattered single-family homes segment.

At March 31, 2025, the Company classified an aggregate of 138 units as held for sale.

For the three months ended March 31, 2026 and 2025, the Company recorded impairments of $ 0.6 million and $ 0.1 million, respectively, related to held for sale units which is included in impairment of real estate investments on its consolidated statements of operations and comprehensive income (loss).

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, and has qualified since the taxable year ended December 31, 2022.

To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP).

As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders.

Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants it relief under certain statutory provisions.

Such an event could materially adversely affect the Company’s net income (loss) and net cash available for distribution to stockholders;

however, the Company intends to continue to organize and operate in such a manner as to remain qualified for treatment as a REIT.

The Company incurred federal, state, and local income taxes primarily from its taxable REIT subsidiaries (“TRS”) which manage the non-REIT activities.

The Company’s operating partnerships are flow-through entities which are generally not subject to income taxes.

Income taxes for the three months ended March 31, 2026 and 2025 were comprised mainly of state income and franchise taxes and federal income taxes related to the taxable REIT subsidiaries.

The Company records these amounts in income tax expense on the Company’s consolidated statements of operations and comprehensive income (loss).

The Company has no significant temporary or permanent differences associated with our taxable REIT subsidiaries.

On July 4, 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law.

The Act made permanent certain tax provisions of the Tax Cuts and Jobs Act (2017) and includes changes to U.S.

tax law that are applicable to the Company beginning in 2025.

The Act provides for significant U.S.

tax law changes and modifications including provisions allowing for accelerated tax deductions and the increased ability to deduct interest expense.

The Company included the provisions that are effective for tax years 2025 and 2026.

Interim Financial Information

4 unchanged sentences

The balance sheet at December 31, 2025 has been derived from the audited financial statements at that date but does not include all the information and disclosures required by GAAP for complete financial statements.

It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended December 31, 2024 contained in the Annual Report on Form 10-K as filed with the SEC on March 20, 2025.

It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s audited consolidated financial statements for the year ended December 31, 2025 contained in the Annual Report on Form 10-K as filed with the SEC on February 27, 2026.

Use of Estimates

7 unchanged sentences

The Company is currently evaluating the impact of adopting ASU 2024-03 on its financial disclosures.

In November 2025, the FASB issued Accounting Standards Update No.

2025-08, “Financial Instruments – Credit Losses (Topic 326)” (“ASU 2025-08”).

The amendments in ASU 2025-08 expand the use of the gross-up approach for the recognition of expected credit losses on certain acquired loans, requiring that loans deemed “purchased seasoned loans” be accounted for similarly to purchased financial assets with credit deterioration at the acquisition date.

The amendments are effective for the Company for annual reporting periods beginning after December 15, 2026.

The Company is currently evaluating the impact of adopting ASU 2025-08 on its consolidated financial statements.

In December 2025, the FASB issued Accounting Standards Update No.

2025-11, “Interim Reporting (Topic 270)” (“ASU 2025-11”).

The amendments in ASU 2025-11 clarify which disclosures are required in interim reporting periods and introduce a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

The amendments also clarify the types of interim reporting and the form and content of interim financial statements.

The amendments are effective for the Company for interim reporting periods within annual reporting periods beginning after December 15, 2027.

The Company is currently evaluating the impact of adopting ASU 2025-11 on its interim financial statement disclosures.

Current Expected Credit Losses

13 unchanged sentences

Uncertainty Due to Economic Volatility

The Company’s results of operations in the future may be directly or indirectly affected by uncertainties such as the effects of inflation and related volatility in the market.

Thus far, 2026 has been marked by significant uncertainty and volatility in the global markets, largely driven by geopolitical conditions and the effects of international conflicts on global markets, oil prices and interest rates, as well as tariffs and international trade policy and disputes, and political and regulatory uncertainty.

The Company’s results of operations in the future may be directly or indirectly affected by these and other economic uncertainties.

As inflation accelerated rapidly in the first half of 2023, the Federal Reserve increased interest rates a total of four times during 2023 to curb the effects of rising inflation.

While the Federal Reserve reduced interest rates by an aggregate of 100-basis points during 2024 and by another 25-basis points in September 2025, there can be no assurances that interest rates will not rise again, and the Company’s operating costs, including utilities and payroll, may increase as a result of increases in inflation.

While the Federal Reserve reduced interest rates by an aggregate of 100-basis points during 2024 and by an aggregate of 75-basis points during 2025, the Federal Reserve has elected to hold interest rates steady thus far in 2026, and there can be no assurances that interest rates will not rise again.

The Company’s operating costs, including utilities and payroll, may increase as a result of increases in inflation.

Rising interest rates cause uncertainty in credit and capital markets which could have material and adverse effects on the Company’s financial condition, results of operations and cash flows.

1 unchanged sentence

and global economies.

The announced tariffs are likely to increase construction costs and further reduce already constrained new supply starts, which could adversely impact the timing of actual completion and/or stabilization of build-to-rent communities, including potential delays due to supply shortages and labor shortages.

The long-term impact of these economic developments will largely depend on any future action by the Federal Reserve, future laws that may be enacted, the impact on job growth and the broader economy, and reactions by consumers, companies, governmental entities and capital markets.

Any such tariffs are likely to increase construction costs and further reduce already constrained new supply starts, which could adversely impact the timing of actual completion and/or stabilization of build-to-rent communities, including potential delays due to supply shortages and labor shortages.

The long-term impact of these economic developments will largely depend on any future action by the Federal Reserve, future laws that may be enacted, changes in geopolitical conditions and international conflicts, the impact on job growth and the broader economy, and reactions by consumers, companies, governmental entities and capital markets.

The Company continues to closely monitor the impact of economic volatility on all aspects of its business.

Note 3 – Acquisition of Real Estate

Acquisition of Southern Pines Reserve

On April 28, 2025, the Company, through a Delaware statutory trust (the “Southern Pines DST”), acquired a 272 -unit residential community located in Aberdeen, North Carolina known as Southern Pines Reserve, aka Hawthorne.

The purchase price of $ 56.6 million was funded with (i) a $ 30.7 million senior loan secured by Southern Pines Reserve, (ii) borrowings of $ 20.0 million through the Company’s existing credit facility with KeyBank National Association (the “KeyBank Credit Facility” – refer to Note 10 for further information), and (iii) cash of $ 8.9 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions.

Acquisition of Skytop Apartments

On September 29, 2025, the Company, through a Delaware statutory trust (the “Skytop DST”), acquired a 361 -unit residential community located in Cincinnati, Ohio known as Skytop Apartments.

The purchase price of $ 88.5 million was funded with (i) a $ 57.5

million senior loan secured by Skytop Apartments, (ii) borrowings of $ 22.0 million through the KeyBank Credit Facility, and (iii) cash of $ 13.0 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions.

Southern Pines Reserve and Skytop Apartments are the second and third properties, respectively, acquired by the Company through Delaware statutory trusts (each, a “DST”) to be part of private placement offerings through which interests in each DST will be issued to third party accredited investors therein.

Refer to Note 9 for further information on the Company’s DST Program.

Harmony at Clear Creek Development

On September 30, 2025, the Company, through a joint venture with an unaffiliated third party (the “Harmony JV”), in which the Company holds an 85 % interest, acquired land located in Shawnee, Kansas for a purchase price of $ 2.3 million for the development of an approximately 188 -unit residential community to be known as Harmony at Clear Creek.

In connection with the acquisition and planned development, the Harmony JV entered into a construction loan agreement providing for borrowings of up to $ 46.5 million.

At September 30, 2025, the outstanding balance under the construction loan was negligible and is included in mortgages payable on the Company’s consolidated balance sheets.

The interest rate cap associated with the construction loan, and any capitalized interest, is recorded within construction in process on the consolidated balance sheets.

The Company accounts for Harmony at Clear Creek as a consolidated investment.

Parkside at Summers Corner

On February 26, 2026, the Company acquired, with full ownership interest, an additional 10 units at Parkside at Summers Corner located in Summerville, South Carolina for an aggregate purchase price of $ 2.6 million.

Units are to be acquired in tranches as construction is completed, and as of March 31, 2026, the Company had acquired 22 of the total 100 units it has committed to purchase.

Purchase Price Allocation

The real estate acquisitions above have been accounted for as asset acquisitions.

The purchase prices were allocated to the acquired assets based on their estimated fair values at the dates of acquisition.

The following table summarizes the assets acquired at the acquisition dates for the Company’s acquisitions made during the nine months ended September 30, 2025 (amounts in thousands):

The real estate acquisition above has been accounted for as an asset acquisition.

The purchase price was allocated to the acquired assets based on their estimated fair values at the date of acquisition.

The following table summarizes the assets acquired at the acquisition date for the 10 units at Parkside at Summers Corner (amounts in thousands).

The Company made no real estate acquisitions during the three months ended March 31, 2025.

Building improvements

1 unchanged sentence

Furniture and fixtures

Construction in process

Accounts receivable, prepaids and other assets, net

In-place leases

Total assets acquired (1)

(1) The $ 155.8 million in total assets acquired includes $ 8.4 million of acquisition expenses that have been capitalized as the acquisitions have been accounted for as asset acquisitions.

In connection with the acquisition of Skytop Apartments, the Company allocated approximately $ 5.5 million of the purchase price to a real estate tax abatement, which is recorded as an intangible asset within accounts receivable, prepaids, and other assets, net on the Company’s consolidated balance sheets.

The tax abatement is being amortized on a straight-line basis over its estimated remaining useful life of approximately 13.3 years.

As the acquisition of Skytop Apartments occurred near the end of the reporting period, no amortization expense related to the tax abatement was recorded for the three or nine months ended September 30, 2025.

The following table presents the estimated future amortization expense of the tax abatement as of September 30, 2025 (in thousands):

2025 (October 1 – December 31)

Acquisition of Additional Interests in Investments

On July 11, 2025, the Company purchased the noncontrolling partner’s interest in each of the Peak JV 2 and Peak JV 3 portfolios for $ 0.2 million and $ 0.9 million, respectively.

The Company increased its interest in (i) the Peak JV 2 portfolio from 80 % to 100 % and (ii) the Peak JV 3 portfolio from 56 % to 100 %.

Note 4 – Sale of Real Estate Assets

Sales of Consolidated Operating Units

During the three months ended September 30, 2025, the Company closed on the following sales:

3 units in the ILE portfolio, 2 units in the Indy-Springfield portfolio, 3 units in the Peak JV 2 portfolio, and 11 units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sale agreements.

The 19 units were all previously classified as held for sale and sold for an aggregate of approximately $ 3.3 million, subject to certain closing costs, prorations and adjustments typical in such real estate transactions.

After deducting the paydown of existing mortgage indebtedness encumbering 3 units in the ILE portfolio of approximately $ 0.4 million, the sales of the 19 units generated net proceeds of approximately $ 2.6 million and a gain on sales of approximately $ 0.2 million.

During the nine months ended September 30, 2025, the Company closed on the following sales:

20 units in the ILE portfolio, 14 units in the Indy-Springfield portfolio, 22 units in the Peak JV 2 portfolio, and 48 units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sale agreements.

(1) The $ 2.7 million of total assets acquired includes $ 0.1 million of acquisition expenses that have been capitalized as the acquisition of the 10 units at Parkside at Summers Corner has been accounted for as an asset acquisition.

Note 4 – Sale of Real Estate Assets and Held for Sale Real Estate Assets

Sale of Consolidated Operating Units

During the first quarter 2026, the Company closed on the following sales:

10 units in the Ballast portfolio, 19 units in the Golden Pacific portfolio, 25 units in the ILE portfolio, 6 units in the Indy-Springfield portfolio, 29 units in the Peak JV 2 portfolio, and the remaining 42 units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sale agreements.

The 131 units were all previously classified as held for sale and sold for an aggregate of approximately $ 22.0 million, subject to certain closing costs, prorations and adjustments typical in such real estate transactions.

After deducting the paydown of existing mortgage indebtedness encumbering 25 units in the ILE portfolio of approximately $ 3.5 million, the sales of the 131 units generated net proceeds of approximately $ 17.2 million and a gain on sales of approximately $ 0.6 million.

The gain on sales is included in gain on sale of real estate investments, net on the Company’s consolidated statements of operations and comprehensive income (loss).

Held for Sale

At September 30, 2025 and December 31, 2024, the Company classified an aggregate of 84 units and 167 units, respectively, as held for sale on its consolidated balance sheets.

For the three and nine months ended September 30, 2025 and 2024, the Company recorded an impairment of $ 0.4 million and $ 0.9 million, and $ 0.6 million and $ 2.1 million, respectively, related to held for sale units which is included in (impairment) and gain on sale of real estate investments, net on its consolidated statements of operations and comprehensive income.

The 84 units classified as held for sale at September 30, 2025 are all reported in the Company’s scattered single-family homes segment and are included in the following portfolios:

4 units of Golden Pacific, 5 units of ILE, 23 units of Indy-Springfield, 10 units of Peak JV 2, and all 42 units of Peak JV 3.

These units were identified based on submarket analysis and individual unit-level operational review.

The 58 units classified as held for sale at March 31, 2026 are included in the following portfolios:

19 units of Ballast, 22 units of Golden Pacific, 1 unit of ILE, 12 units of Indy-Springfield, and 4 units of Peak JV 2.

At March 31, 2025, the Company classified an aggregate of 138 units as held for sale, with all units reported in the Company’s scattered single-family homes segment.

Units classified as held for sale were identified based on submarket analysis and individual unit-level operational review.

Real estate assets classified as held for sale generally represent assets that are actively marketed or contracted for sale with the closing expected to occur within one year.

Note 5 - Investments in Real Estate

As of September 30, 2025, the Company held twenty-two real estate investments, consisting of seventeen consolidated operating investments and five held through preferred equity investments.

The following tables provide summary information regarding the Company’s consolidated operating investments and preferred equity investments.

As of March 31, 2026, the Company held eighteen consolidated investments and five preferred equity investments.

The following tables provide summary information regarding the Company’s consolidated investments and preferred equity investments.

Consolidated Investments

7 unchanged sentences

Jacksonville, FL

District at Parkview (3)

Stone Mountain, GA

Skytop Apartments

8 unchanged sentences

Indy-Springfield

Dallas-Fort Worth, TX

Total Scattered Single-Family Homes

Total Operating Units

Development Investment Name

Development / Lease-up Investment Name

Residential Communities

1 unchanged sentence

Harmony at Clear Creek (4)

Parkside at Summers Corner (5)

Summerville, SC

Total Development Units

(1) Total number of units includes an aggregate of 58 units classified as held for sale, with such units included in the following portfolios:

4 units of Golden Pacific, 5 units of ILE, 23 units of Indy-Springfield, 10 units of Peak JV 2, and all 42 units of Peak JV 3.

(2) Amira at Westly is held through the Company’s DST Program (refer to Note 9 for further information).

The Amira at Westly DST has been fully subscribed with equity from individual investors.

(3) Skytop Apartments and Southern Pines Reserve are held through the Company’s DST Program.

Depreciation expense was $ 6.3 million and $ 4.1 million, and $ 17.8 million and $ 12.4 million, for the three and nine months ended September 30, 2025 and 2024, respectively.

19 units of Ballast, 22 units of Golden Pacific, 1 unit of ILE, 12 units of Indy-Springfield, and 4 units of Peak JV 2.

(2) Amira at Westly and Skytop Apartments are held through the Company’s DST Program (refer to Note 9 for further information).

The Amira at Westly DST and Skytop Apartments DST have been fully subscribed with equity from individual investors.

(3) District at Parkview and Southern Pines Reserve are held through the Company’s DST Program.

(4) Represents a development project with no units delivered as of March 31, 2026.

(5) Parkside at Summers Corner represents a development project with units to be acquired in tranches as construction is completed.

Of the total 100 units that the Company has committed to acquire, 22 units had been acquired as of March 31, 2026.

Depreciation expense was $ 7.3 million and $ 5.6 million for the three months ended March 31, 2026 and 2025, respectively.

Intangibles related to the Company’s consolidated investments in real estate consist of the value of in-place leases.

Amortization expense related to the in-place leases was $ 0.5 million and $ 0.8 million, and $ 3.6 million and $ 1.3 million, for the three and nine months ended September 30, 2025 and 2024, respectively.

Amortization expense related to the in-place leases was $ 1.5 million and $ 1.9 million for the three months ended March 31, 2026 and 2025, respectively.

Preferred Equity Investments

Development Investment Name

Archer at RiverBlue

Asheville, NC

Canvas at Wildwood

2 unchanged sentences

Total Development Units

Lease-up Investment Name

Total Lease-up Units

Operating Investment Name (1)

4 unchanged sentences

Note 6 – Notes and Interest Receivable

Following is a summary of the notes and accrued interest receivable due from loan investments at December 31, 2024 (amounts in thousands).

The Company held no loan investments and there were no outstanding interest receivable amounts due to the Company at September 30, 2025.

Investment Name

Notes Receivable (1)

Wayford at Pringle

Total notes receivable

Accrued Interest Receivable (1)

Wayford at Pringle

Total accrued interest receivable

Total notes and accrued interest receivable

Allowance for credit losses

In February and May 2025, the Company’s loan investments in each of Wayford at Pringle and Willow Park were paid off in full, respectively, including any accrued but unpaid interest amounts.

Refer to the Loan Investment Summary disclosure below for further information.

At March 31, 2026 and December 31, 2025, the Company held no loan investments and there were no outstanding interest receivable amounts due to the Company.

Allowance for Credit Losses

The allowance for credit losses of the Company’s loan investments at September 30, 2025 and December 31, 2024 are summarized in the table below (amounts in thousands).

September 30,

Beginning balances, net as of January 1, 2025 and 2024, respectively

(Recovery of) provision for credit losses on pool of assets, net (1)

The allowance for credit losses of the Company’s loan investments at December 31, 2025 is summarized in the table below (amounts in thousands).

The Company had no allowance for credit loss activity on loan investments during the period ended March 31, 2026.

Beginning balance, net as of January 1, 2025

Recovery of credit losses on pool of assets, net (1)

Allowance for credit losses, net, end of period

Under CECL, a provision for, or recovery of, credit losses for similar assets is calculated based on a historical default rate applied to the remaining life of the assets.

The recovery of credit losses during the period ended September 30, 2025 was attributable to the removal of the two remaining investments from the pool of assets.

Following is a summary of the interest income from loan investments for the three months ended September 30, 2024 and the nine months ended September 30, 2025 and 2024 (amounts in thousands).

The Company did no t record any interest income from loan investments during the three months ended September 30, 2025 as it held no loan investments during this period.

The recovery of credit losses during the year ended December 31, 2025 was attributable to the removal of the two remaining investments from the pool of assets.

Following is a summary of the interest income from loan investments for the three months ended March 31, 2025 (amounts in thousands).

The Company did no t record any interest income from loan investments during the three months ended March 31, 2026 as it held no loan investments during this period.

Three Months Ended

Nine Months Ended

September 30,

Investment Name

The Woods at Forest Hill (1)

Wayford at Pringle (1)

Willow Park (1)

(1) In August 2024, the Company’s loan investment in The Woods at Forest Hill was paid off in full.

(2) In February and May 2025, the Company’s loan investments in each of Wayford at Pringle and Willow Park were paid off in full, respectively, including any accrued but unpaid interest amounts.

Loan Investment Summary

During the nine months ended September 30, 2025, the Company’s two remaining loan investments were paid off in full, including any accrued but unpaid interest amounts, as follows:

(i) Wayford at Pringle in the aggregate amount of $ 23.0 million, which included the Company’s principal investment of $ 22.3 million and accrued interest of $ 0.7 million, and (ii) Willow Park in the aggregate amount of $ 9.4 million, which included the Company’s principal investment of $ 9.4 million and a negligible amount of accrued interest.

(1) In February and May 2025, the Company’s loan investments in Wayford at Pringle and Willow Park were paid off in full, respectively, including any accrued but unpaid interest amounts.

Note 7 – Investment in Unconsolidated Real Estate Fund

At September 30, 2025, the Company, through a wholly-owned subsidiary of the Operating Partnership, had one investment in an unconsolidated real estate fund which is accounted for under the equity method.

The Company earns a return on its investment which is recognized on a one-quarter lag and is recorded in income from investments in unconsolidated real estate funds on its consolidated statement of operations and comprehensive income.

The carrying amount of the Company’s investment in the unconsolidated real estate fund at September 30, 2025 is summarized below (amounts in thousands).

The Company held no investments in unconsolidated real estate funds at December 31, 2024.

Weighted Average Company

September 30,

At March 31, 2026, the Company, through a wholly-owned subsidiary of the Operating Partnership, had one investment in an unconsolidated real estate fund which is accounted for under the equity method.

The Company earns a return on its investment which is recognized on a one-quarter lag and is recorded in share of net earnings of equity method investment on its consolidated statements of operations and comprehensive income (loss).

The carrying amount and ownership percentage of the Company’s investment in the unconsolidated real estate fund at March 31, 2026 and December 31, 2025 is summarized below (amounts in thousands).

March 31, 2026

December 31, 2025

Company Ownership

Investment Name

Ownership Percentage (1)

Percentage (1)

Carrying Value

Percentage (1)

Carrying Value

Marble Capital Income and Impact Fund, LP (2)

(1) Weighted average ownership percentage as of September 30, 2025.

(2) The Company accounts for its investment in the Marble Capital Income and Impact Fund, LP under the equity method as the Company considers its degree of influence to be more than minor.

Summary combined financial information for the Company’s investment in the unconsolidated real estate fund at June 30, 2025, and for the three and six months ended June 30, 2025, is summarized below (amounts in thousands):

(1) Represents the Company’s ownership percentage at March 31, 2026 and at December 31, 2025.

(2) The Company accounts for its investment in the Marble Capital Income and Impact Fund, LP under the equity method as the Company considers its degree of influence to be significant.

Summary combined financial information for the Company’s investment in the unconsolidated real estate fund at December 31, 2025, and for the three months and year ended December 31, 2025, is summarized below (amounts in thousands):

Balance Sheet

2 unchanged sentences

Partners’ capital

Non-controlling interest

Total liabilities and partners’ capital

Three Months Ended

Six Months Ended

Operating Statement

June 30, 2025

December 31, 2025

Investment income

Net investment income

Net gain on investments

Net decrease from non-controlling interest

Net unrealized gain on investments

Net increase in partners’ capital

Unconsolidated Real Estate Fund Investment Summary

On April 25, 2025, the Company closed on the acquisition of a limited partnership interest in Marble Capital Income and Impact Fund, LP (the “Marble Fund”) for a purchase price of $ 25.0 million.

The Marble Fund owns a diversified portfolio of multifamily assets and build-to-rent multifamily investments located in the United States.

Note 8 – Preferred Equity Investments

At September 30, 2025, the Company, through wholly-owned subsidiaries of the Operating Partnership, had outstanding preferred equity investments in five joint ventures which are classified as available-for-sale debt securities.

The Company earns a fixed return on these investments which is included within income from preferred equity investments on its consolidated statements of operations and comprehensive income.

At March 31, 2026, the Company, through wholly-owned subsidiaries of the Operating Partnership, had entered into five joint venture agreements for preferred equity investments which are classified as available-for-sale debt securities.

The Company earns a fixed return on these investments which is included within income from preferred equity investments on its consolidated statements of operations and comprehensive income (loss).

Each joint venture’s purpose is to develop or operate a portfolio of residential units.

The carrying amount of the Company’s preferred equity investments at September 30, 2025 and December 31, 2024 is summarized in the table below (amounts in thousands):

September 30,

The carrying amount of the Company’s preferred equity investments at March 31, 2026 and December 31, 2025 is summarized in the table below (amounts in thousands):

Investment Name

Archer at RiverBlue

Canvas at Wildwood

Indigo Cove (1)

Sanford Marketplace

The Cottages at Myrtle Beach (2)

The Cottages of Port St.

Wayford at Innovation Park

Wayford at Pringle (1)

Gross unrealized gain (loss), net

(1) In April 2025, the Company’s preferred equity interests in Indigo Cove and Wayford at Pringle were sold.

Refer to the Preferred Equity Investment Summary disclosure below for further information.

(2) The Company’s preferred equity investments in The Cottages at Myrtle Beach and The Cottages of Port St.

Lucie were fully redeemed in April and July 2025, respectively.

Refer to the Preferred Equity Investment Summary disclosure below for further information.

The following table summarizes the net carrying amount and fair value of the Company’s preferred equity investments, which are classified as available-for-sale debt securities, by contractual maturity at September 30, 2025 (amounts in thousands):

Gross unrealized gain, net

Available-for-sale

3 unchanged sentences

Due after three years

The following table summarizes the Company’s income from preferred equity investments for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

The following table summarizes the Company’s income from preferred equity investments for the three months ended March 31, 2026 and 2025 (amounts in thousands):

Three Months Ended March 31,

Investment Name

Archer at RiverBlue

Canvas at Wildwood

Indigo Cove (2)

Peak Housing (2)

Sanford Marketplace

1 unchanged sentence

The Cottages of Port St.

The Woods at Forest Hill (2)

Wayford at Innovation Park

1 unchanged sentence

Total income from preferred equity investments (3)

(1) The Company’s preferred equity investments were fully redeemed in 2025 as follows:

Chandler in November, The Cottages at Myrtle Beach in April, and The Cottages of Port St.

Lucie in July.

(2) In April 2025, the Company’s preferred equity interests in Indigo Cove and Wayford at Pringle were sold.

(2) The Company’s preferred equity investments in Peak Housing and The Woods at Forest Hill were fully redeemed in September and November 2024, respectively.

(3) The Company’s preferred equity investments in The Cottages at Myrtle Beach and The Cottages of Port St.

Lucie were fully redeemed in April and July 2025, respectively.

(3) Total income from preferred equity investments includes both current and accrued income amounts.

For the three and nine months ended September 30, 2025 and 2024, the accrued portion of total income was $ 1.6 million and $ 2.6 million, and $ 4.3 million and $ 7.8 million, respectively.

At September 30, 2025 and December 31, 2024, the Company had $ 10.4 million and $ 23.3 million, respectively, of total accrued preferred equity income, which is recorded in accounts receivable, prepaids and other assets, net on its consolidated balance sheets.

For the three months ended March 31, 2026 and 2025, the accrued portion of the total income was $ 1.5 million and $ 2.9 million, respectively.

At March 31, 2026 and December 31, 2025, the Company had $ 9.4 million and $ 7.9 million, respectively, of total accrued preferred equity income, which is recorded in accounts receivable, prepaids and other assets, net on its consolidated balance sheets.

Preferred Equity Investment Summary

During the nine months ended September 30, 2025, the Company (i) increased its original capital commitment for preferred equity interests in Wayford at Innovation Park by $ 2.0 million, increasing its total investment to $ 15.4 million, (ii) entered into a joint venture agreement with an unaffiliated third party and made a commitment to invest $ 16.2 million for preferred equity interests in the development of an approximately 300 -unit residential community located in Sanford, North Carolina known as Sanford Marketplace, and (iii) had its preferred equity investments in two joint ventures with unaffiliated third parties fully redeemed as follows:

(a) The Cottages at Myrtle Beach redeemed in the aggregate amount of $ 28.1 million, which included the Company’s principal investment of $ 17.9 million, and accrued preferred return and outstanding amounts of $ 10.2 million, and (b) The Cottages of Port St.

Lucie redeemed in the aggregate amount of $ 30.0 million, which included the Company’s principal investment of $ 18.8 million, and accrued preferred return and outstanding amounts of $ 11.2 million.

In addition, the Company sold its preferred equity interests in Indigo Cove and Wayford at Pringle to a joint venture, with such joint venture including an affiliate of Bluerock Homes Manager, LLC (the Company’s external manager), in the aggregate amounts of $ 4.2 million and $ 9.2 million, respectively, which included the Company’s outstanding principal investments and accrued preferred returns, net of any reimbursements.

As of September 30, 2025, the Company had funded $ 14.6 million of its $ 37.8 million aggregate commitment to fund capital for preferred equity interests in Canvas at Wildwood, River Ford, and Sanford Marketplace.

In February 2026, the Company increased its original capital commitment for preferred equity interests in Canvas at Wildwood by $ 1.5 million, increasing its total investment to $ 16.1 million.

As of March 31, 2026, the Company had funded $ 28.0 million of its $ 48.8 million aggregate commitment to fund capital for preferred equity interests in Archer at RiverBlue, Canvas at Wildwood, River Ford, and Sanford Marketplace.

Note 9 – DST Program

5 unchanged sentences

Under the master lease, a wholly-owned indirect subsidiary of the Operating Partnership is responsible for subleasing the property to tenants, paying certain underlying costs associated with operating the property, and remitting rent to the DST that owns such property.

The following table summarizes the Company’s offerings in its DST Program as of September 30, 2025 (amounts in thousands):

The following table summarizes the Company’s offerings in its DST Program at March 31, 2026 (amounts in thousands):

Net Offering Proceeds

1 unchanged sentence

Amira at Westly (1)

District at Parkview (2)

Stone Mountain, GA

Skytop Apartments (1)

1 unchanged sentence

Southern Pines Reserve

(1) The Amira at Westly DST has been fully subscribed with equity from individual investors.

(2) Skytop Apartments was acquired on September 29, 2025.

(1) The Amira at Westly DST and Skytop Apartments DST have been fully subscribed with equity from individual investors.

(2) District at Parkview was acquired in December 2025.

Note 10— Revolving Credit Facilities

The outstanding balances on the revolving credit facilities at September 30, 2025 and December 31, 2024 were as follows (amounts in thousands):

September 30,

Revolving Credit Facilities

KeyBank Credit Facility

Amended DB Credit Facility

Amended Deutsche Bank Credit Facility (“Amended DB Credit Facility”)

In December 2023, certain of the Company’s subsidiaries entered into an amended and restated credit facility (the “Amended DB Credit Facility”) with Deutsche Bank Securities Inc.

(“Deutsche Bank”), as sole lead arranger, Deutsche Bank AG, New York Branch, as administrative agent, the financial institutions party thereto as lenders and Computershare Trust Company, N.A., as paying agent and calculation agent, and the Company as a guarantor.

The Amended DB Credit Facility provided for a revolving loan with a maximum commitment amount of $ 150 million.

Borrowings under the Amended DB Credit Facility were limited to financings related to the acquisition, renovation, rehabilitation, maintenance and leasing of single-family residential units in the Indy-Springfield, Peak JV 2 and Savannah-84 portfolios.

Borrowings under the Amended DB Credit Facility bore interest on the amount drawn at Term Secured Overnight Financing Rate (“SOFR”) plus 2.80 %, and borrowings could be prepaid without premium or penalty.

On April 4, 2025, the Company entered into an amended and restated agreement with Deutsche Bank that replaced the Amended DB Credit Facility with a senior loan (the “DB Loan” - refer to Note 11 for further information).

KeyBank Credit Facility

In October 2024, the Company, through a subsidiary of its Operating Partnership, entered into a credit agreement with KeyBank National Association (the “KeyBank Credit Facility”) related to the Company’s DST Program.

2 unchanged sentences

Borrowings under the KeyBank Credit Facility bear interest per annum, at the Company’s option, at SOFR (Daily Simple or Term) plus 3.60 % or the base rate plus 2.50 % (base rate determined by reference to the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50 %, and (iii) Adjusted Term SOFR for a one-month interest period plus 1.00 %), and borrowings can be prepaid without premium or penalty.

At September 30, 2025, the interest rate on outstanding borrowings was 7.76 %.

The Company pays a fee on the unused portion of the KeyBank Credit Facility at an annual rate of 0.30 %.

The KeyBank Credit Facility matures on October 25, 2026;

however, borrowings under the KeyBank Credit Facility mature one-year from the date of funding, subject to certain minimum paydowns, and timing of such paydowns, pursuant to the terms of the KeyBank Credit Facility.

The KeyBank Credit Facility contains certain financial and operating covenants, including maximum leverage ratio, minimum debt service coverage ratio and minimum tangible net worth.

At September 30, 2025, the KeyBank Credit Facility was drawn at $ 22.0 million, and the Company was in compliance with all covenants under the KeyBank Credit Facility.

The KeyBank Credit Facility matures on October 25, 2026 and contains certain financial and operating covenants, including maximum leverage ratio, minimum debt service coverage ratio and minimum tangible net worth.

At March 31, 2026 and December 31, 2025, the Company had no outstanding balance on the KeyBank Credit Facility.

Note 11 – Mortgages Payable

The following table summarizes certain information at September 30, 2025 and December 31, 2024 with respect to the Company’s senior mortgage indebtedness (amounts in thousands):

The following table summarizes certain information at March 31, 2026 and December 31, 2025 with respect to the Company’s senior mortgage indebtedness (amounts in thousands):

Outstanding Principal

As of September 30, 2025

September 30,

As of March 31, 2026

Interest-only

9 unchanged sentences

August 1, 2029

District at Parkview

Interest-only

January 1, 2036

Skytop Apartments

21 unchanged sentences

Total mortgages payable

ILE’s fixed rate debt represents the aggregate debt outstanding across three separate credit agreements.

Of the outstanding balance, one credit agreement (“CA1”) has a balance of $ 3.4 million at a fixed rate of 3.50 %, the second credit agreement (“CA2”) has a balance of $ 15.8 million at a fixed rate of 3.75 %, and the third credit agreement (“CA3”) has a balance of $ 4.4 million at a fixed rate of 6.00 %.

CA1 and CA3 each bear interest at a floating rate that is subject to an interest rate swap to effectuate a fixed rate;

ILE’s fixed rate debt represents the aggregate debt outstanding across two separate credit agreements.

Of the outstanding balance, one credit agreement (“CA1”) has a balance of $ 13.6 million at a fixed rate of 3.75 %, and the second credit agreement (“CA2”) has a balance of $ 4.4 million at a fixed rate of 6.00 %.

CA2 bears interest at a floating rate that is subject to an interest rate swap to effectuate a fixed rate;

refer to Note 13 for further information.

CA1 and CA2 both mature in 2026;

CA1 matures in 2026;

CA2 matures in 2028.

The ILE credit agreements contain certain financial and operating covenants, including minimum liquidity and minimum debt service coverage.

1 unchanged sentence

The principal balance includes a $ 9.4 million senior loan at a fixed rate of 4.81 % and a $ 4.2 million supplemental loan at a fixed rate of 4.96 %.

On April 1, 2026, the Company entered into a new floating rate loan and paid off the previous fixed rate senior and supplemental loans.

The Deutsche Bank loan (“DB Loan”) bears interest at one-month Term SOFR plus 2.95 %.

In September 2025, the one-month Term SOFR in effect was 4.28 %.

In March 2026, the one-month Term SOFR was 3.67 %.

The Term SOFR rate is subject to a 2.50 % rate cap through April 2026;

2 unchanged sentences

Represents a construction loan with a maximum commitment of $ 46.5 million.

At September 30, 2025, a negligible amount was drawn on the loan.

At March 31, 2026, a negligible amount was drawn on the loan.

The ILE loan bears interest at one-month Term SOFR plus 2.85 %, subject to a 6.50 % rate floor, and contains a minimum debt service coverage covenant.

In March 2026, the one-month Term SOFR was 3.67 %.

The Wayford at Concord loan bears interest at the 30-day average SOFR plus 2.23 %.

In September 2025, the 30-day average SOFR in effect was 4.35 %.

In March 2026, the 30-day average SOFR was 3.67 %.

SOFR rate is subject to a 2.50 % rate cap through April 2027;

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Costs incurred in obtaining long-term financing are amortized on a straight-line basis to interest expense over the terms of the related financing agreements, as applicable, which approximates the effective interest method.

Amortization of deferred financing costs, including amounts related to the revolving credit facilities (refer to Note 10 for further information), for the three and nine months ended September 30, 2025 and 2024 was $ 0.5 million and $ 0.4 million, and $ 1.7 million and $ 1.1 million, respectively.

Amortization of deferred financing costs, including amounts related to the revolving credit facility (refer to Note 10 for further information), for the three months ended March 31, 2026 and 2025 was $ 0.7 million and $ 0.7 million, respectively.

Fair value adjustments of debt

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The fair value adjustments are being amortized to interest expense over the remaining life of the loans.

Amortization of fair value adjustments for the three months ended March 31, 2026 and 2025 was $0.1 million and $0.1 million, respectively.

Loss on Extinguishment of Debt and Debt Modification Costs

Upon repayment of or in conjunction with a material change (i.e., a 10% or greater difference in the cash flows between instruments) in the terms of an underlying debt agreement, the Company writes-off any unamortized deferred financing costs and fair market value adjustments related to the original debt that was extinguished.

Prepayment penalties incurred on the early repayment of debt and costs incurred in a debt modification that are not capitalized would also be included within loss on extinguishment of debt and debt modification costs on the consolidated statements of operations and comprehensive income.

The Company had a negligible amount of loss on extinguishment of debt and no debt modification costs during the three and nine months ended September 30, 2025.

The Company had $ 0.1 million of loss on extinguishment of debt and no debt modification costs for both the three and nine months ended September 30, 2024.

The Company had a negligible amount of loss on extinguishment of debt and no debt modification costs during the three months ended March 31, 2026 and 2025.

Debt maturities

At September 30, 2025, contractual principal payments of the Company’s borrowings, including its KeyBank Credit Facility, for the five subsequent years and thereafter are as follows (amounts in thousands):

2025 (October 1 - December 31)

The following table summarizes the Company’s contractual principal payments of its borrowings at March 31, 2026 for the five subsequent years and thereafter (amounts in thousands):

2026 (April 1 – December 31)

Unamortized fair value debt adjustment

Deferred financing costs, net

The net book value of real estate assets providing collateral for these above borrowings was $ 721.3 million at September 30, 2025.

The net book value of real estate assets providing collateral for these above borrowings was $ 770.1 million at March 31, 2026.

The mortgage loans encumbering the Company’s properties are nonrecourse, subject to certain exceptions for which the Company would be liable for any resulting losses incurred by the lender.

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Fair Value of Financial Instruments

At September 30, 2025 and December 31, 2024, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, due from and due to affiliates, revolving credit facilities, accounts payable, other accrued liabilities, and distributions payable approximate fair value based on their highly liquid nature and/or short-term maturities and are classified in Level 1 of the fair value hierarchy.

At March 31, 2026 and December 31, 2025, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, due from and due to affiliates, accounts payable, other accrued liabilities, and distributions payable approximate their fair value based on their highly liquid nature and/or short-term maturities and are classified in Level 1 of the fair value hierarchy.

The carrying values of notes receivable approximate fair value because stated interest rate terms are consistent with interest rate terms on new deals with similar leverage and risk profiles.

The fair values of notes receivable are classified in Level 3 of the fair value hierarchy due to the significant unobservable inputs that are utilized in their respective valuations.

At September 30, 2025, the fair value of the Marble Fund is based upon the net asset value reported within the Marble Fund’s financial information.

At March 31, 2026 and December 31, 2025, the fair value of the Marble Fund is based upon the net asset value reported within the Marble Fund’s financial information.

This financial information represents market prices within an inactive market as the Marble Fund prices units based on the net asset value of the fund.

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As such, the carrying value of the Marble Fund approximates fair value, and the financial information used to determine the fair value of the Company’s investment in the Marble Fund represents market-corroborated inputs of the asset, which is considered a Level 2 input within the fair value hierarchy.

The Company held no investments in unconsolidated real estate funds at December 31, 2024.

Refer to Note 7 for further information on the Marble Fund.

As of September 30, 2025 and December 31, 2024, based on the discounted amount of future cash flows using rates currently available to the Company for similar liabilities, the fair value of the Company’s mortgages payable is estimated at $ 401.4 million and $ 250.2 million, respectively, compared to the carrying amounts, before adjustments for deferred financing costs, net, of $ 401.8 million and $ 258.2 million, respectively.

At March 31, 2026 and December 31, 2025, based on the discounted amount of future cash flows using rates currently available to the Company for similar liabilities, the fair value of the Company’s mortgages payable is estimated at $ 422.1 million and $ 436.4 million, respectively, compared to the carrying amounts, before adjustments for deferred financing costs, net, of $ 426.5 million and $ 438.7 million, respectively.

The fair value of mortgages payable is estimated based on interest rates obtained from a third party for similar types of borrowing arrangements and accordingly, the fair value of mortgages payable is classified in Level 2 of the fair value hierarchy.

The carrying values and fair values of the Company’s financial instruments recorded at fair value on a recurring basis at September 30, 2025 and December 31, 2024 are summarized in the table below (amounts in thousands):

September 30, 2025

The carrying values and fair values of the Company’s financial instruments recorded at fair value on a recurring basis at March 31, 2026 and December 31, 2025 are summarized in the table below (amounts in thousands):

March 31, 2026

December 31, 2025

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The inputs used in the valuation of interest rate caps and swaps fall within Level 2 of the fair value hierarchy.

The Company’s operating units classified as held for sale for which it has recorded impairments, measured at fair value on a non-recurring basis, for the three and nine months ended September 30, 2025 and 2024 are summarized in the table below (amounts in thousands).

The Company’s operating units classified as held for sale for which it has recorded impairments, measured at fair value on a non-recurring basis, for the three months ended March 31, 2026 and 2025 are summarized in the table below (amounts in thousands).

The units classified as held for sale are all reported in the Company’s scattered single-family homes segment.

Three Months Ended

Nine Months Ended

September 30,

Investment in operating units classified as held for sale (Level 3)

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Fair value (2)

Impairment amounts are included in (impairment) and gain on sale of real estate investments, net on the Company’s consolidated statements of operations and comprehensive income.

Impairment amounts are included in impairment of real estate investments on the Company’s consolidated statements of operations and comprehensive income (loss).

The estimated fair value is based on historical sales experience, estimates obtained from third-party brokers, and current market conditions.

The estimated fair value is based on historical sales experience, discussions with third-party brokers, and current market conditions.

Fair Value Measurements on a Nonrecurring Basis

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its operating real estate and related intangible assets may not be recoverable.

If the Company does not believe that it will be able to recover the carrying value of operating real estate, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the operating real estate.

If the Company does not believe that it will be able to recover the carrying value of operating real estate and related intangible assets, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the operating real estate and related intangible assets.

Fair value is determined by using valuation techniques appropriate to the specific operating asset, which may include discounted cash flow analysis or a broker’s opinion of value.

These valuation methods utilize inputs that fall within Level 3 of the fair value hierarchy.

During the three and nine months ended September 30, 2025, the Company recognized an impairment loss of approximately $ 3.8 million related to its Peak JV 2 portfolio, which is included in the Company’s scattered single-family homes segment.

The impairment loss is reflected in (impairment) and gain on sale of real estate investments, net within the Company’s consolidated statements of operations and comprehensive income.

Of the total impairment loss, approximately $ 3.5 million was attributable to a revised hold period assessment for 75 units within the portfolio that are now expected to be sold in the near term.

The remaining $ 0.3 million impairment was driven by deterioration in submarket conditions.

No impairment losses were recorded on operating real estate or related intangible assets during the three and nine months ended September 30, 2024.

The Company’s operating units for which it has recorded impairments, measured at fair value on a non-recurring basis, for the three and nine months ended September 30, 2025 and 2024 are summarized in the table below (amounts in thousands).

The operating units for which the Company has recorded impairment losses are all reported in the Company’s scattered single-family homes segment.

Three Months Ended

Nine Months Ended

September 30,

Investment in operating units (Level 3)

Pre-impairment amount

Total impairments (1)

Fair value (2)

(1) Impairment amounts are included in (impairment) and gain on sale of real estate investments, net on the Company’s consolidated statements of operations and comprehensive income.

(2) Operating real estate assets for which the Company has recorded impairment losses are reported at the lower of their carrying value or estimated fair value and are included within total net operating real estate investments on the Company’s consolidated balance sheets.

The estimated fair value is based on estimates obtained from third-party brokers and current market conditions.

No impairment losses on operating real estate and related intangible assets were recorded during the three months ended March 31, 2026 and 2025.

Note 13 – Derivative Financial Instruments

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions.

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The Company does not use derivative financial instruments for trading or speculative purposes.

At September 30, 2025, the Company had interest rate caps and swaps which effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the underlying interest rate for $ 100.8 million of the Company’s debt.

The following table summarizes the Company’s derivative financial instruments at September 30, 2025 ($ in thousands):

At March 31, 2026, the Company had interest rate caps and swaps which effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the underlying interest rate for $ 92.4 million of the Company’s debt.

The following table summarizes the Company’s derivative financial instruments at March 31, 2026 ($ in thousands):

Interest Rate Caps

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Latest maturity date

The table below presents the classification and fair value of the Company’s derivative financial instruments on its consolidated balance sheets at September 30, 2025 and December 31, 2024 (amounts in thousands):

(1) In April 2026, the Company executed a new interest rate cap agreement associated with the DB loan (refer to Note 11 for more information).

The new agreement became effective upon the expiration of the prior rate cap in May 2026.

The new rate cap provides for a notional amount of $ 55.0 million and carries a maturity date of May 2027.

The table below presents the classification and fair value of the Company’s derivative financial instruments on its consolidated balance sheets at March 31, 2026 and December 31, 2025 (amounts in thousands):

Derivatives not designated as hedging

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Balance Sheet Location

September 30, 2025

March 31, 2026

December 31, 2025

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Accounts receivable, prepaids and other assets, net

The table below presents the classification and effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands):

The table below presents the classification and effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2026 and 2025 (amounts in thousands):

The Effect of Derivative Instruments

on the Statements of Operations and Comprehensive Income

on the Statements of Operations and Comprehensive Income (Loss)

Derivatives not designated as hedging

Location of Loss

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

instruments under ASC 815-20

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Note 14 – Related Party Transactions

Management Agreement

Management Agreement with the Manager

In October 2022, the Company entered into a management agreement (the “Management Agreement”) with the Operating Partnership and Bluerock Homes Manager, LLC (the “Manager”) pursuant to which the Manager provides for the day-to-day management of the Company’s operations.

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The Company is required to reimburse the Manager for certain expenses and pay all operating expenses (the “operating expense reimbursement”) with respect to each calendar quarter (or part thereof that the Management Agreement is in effect) in arrears, except those specifically required to be borne by the Manager under the Management Agreement.

Prior to the fourth quarter 2024, the Management Agreement provided that (i) the base management fee and the incentive fee would be allocated and payable as one half ( 50 %) in C-LTIP Units (as defined in the Operating Partnership’s Partnership Agreement) and the remainder payable in cash or C-LTIP Units, at the discretion of the Board, and (ii) the operating expense reimbursement shall be payable either in cash or C-LTIP Units, at the discretion of the Board.

Commencing with the fourth quarter 2024, the Management Agreement provides that (i) the base management fee shall be paid in cash unless there is an agreement between the Board and the Manager to pay all or a portion of the base management fee in C-LTIP Units, and (ii) the operating expense reimbursement remains payable either in cash or C-LTIP Units, at the discretion of the Board.

The Management Agreement provides that (i) the base management fee shall be paid in cash unless there is an agreement between the Board and the Manager to pay all or a portion of the base management fee in C-LTIP Units, and (ii) the operating expense reimbursement remains payable either in cash or C-LTIP Units, at the discretion of the Board.

The number of C-LTIP Units payable and issued to the Manager for the base management fee, the incentive fee and expense reimbursements will be equal to the dollar amount (of the portion deemed payable in C-LTIP Units) of the fees earned or reimbursement amount divided by the average of the closing prices of the Class A common stock for the five business days prior to issuance.

For the three and nine months ended September 30, 2025, the Company recorded base management fees of $ 2.6 million and $ 7.8 million, respectively, of which $ 0.2 million and $ 0.6 million, respectively, were, or shall be, paid in C-LTIP Units with the remainder paid in cash.

For the three and nine months ended September 30, 2024, the Company recorded base management fees of $ 2.4 million and $ 6.6 million, respectively, of which one half ( 50 %) was paid in C-LTIP Units and the remainder paid in cash.

For the three months ended March 31, 2026, the Company recorded a base management fee of $ 2.7 million, of which $ 0.2 million shall be paid in C-LTIP Units with the remainder paid in cash.

For the three months ended March 31, 2025, the Company recorded a base management fee of $ 2.5 million, of which $ 0.2 million was paid in C-LTIP Units with the remainder paid in cash.

There have been no incentive fee expenses incurred during 2026 or the year ended December 31, 2025.

For the three and nine months ended September 30, 2025 and 2024, the Company recorded operating expense reimbursements of $ 1.0 million and $ 1.0 million, and $ 3.0 million and $ 3.3 million, respectively.

Commencing with operating expense reimbursements for the first quarter 2024, the Company paid the operating expense reimbursement to the Manager entirely in cash.

In addition, for the three and nine months ended September 30, 2025 and 2024, the Company recorded direct expense reimbursements of $ 0.1 million and $ 0.1 million, and $ 0.4 million and $ 0.3 million, respectively, which were, or shall be, paid to the Manager in cash.

Both the operating and direct expense reimbursements were recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income.

The table below presents the related party amounts payable to the Manager at September 30, 2025 and December 31, 2024 pursuant to the terms of the Management Agreement (amounts in thousands).

For the three months ended March 31, 2026 and 2025, the Company recorded (i) operating expense reimbursements of $ 1.0 million and $ 1.0 million, respectively, and (ii) direct expense reimbursements of $ 0.1 million and $ 0.1 million, respectively.

Both the operating and direct expense reimbursements were, or shall be, paid in cash to the Manager and recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income (loss).

The table below presents the related party amounts payable to the Manager at March 31, 2026 and December 31, 2025 pursuant to the terms of the Management Agreement (amounts in thousands).

The Company records these payables in due to affiliates on its consolidated balance sheets.

September 30,

Amounts payable to the Manager under the Management Agreement

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The Company, through consolidated subsidiaries associated with its DST Program, incurs a one-time acquisition fee for each DST private placement offering.

During the nine months ended September 30, 2025 and the year ended December 31, 2024, the Company incurred one-time acquisition fees of $ 3.6 million and $ 2.1 million, respectively.

The Company did not incur any one-time acquisition fees during the three months ended March 31, 2026 and 2025 as it did not acquire any properties associated with its DST Program during these periods.

Refer to Note 9 for further information on the Company’s DST Program.

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The Company has agreed to pay an asset management fee equal to a stated percentage per annum of the purchase price of each property in the DST Program.

During the three and nine months ended September 30, 2025, the Company incurred asset management fees related to the DST Program of $ 0.08 million and $ 0.2 million, respectively, which are recorded within property management and asset management fees on the Company’s consolidated statements of operations and comprehensive income.

As the Company held no DST properties at September 30, 2024, it did no t record any asset management fees related to the DST Program during the corresponding periods ended September 30, 2024.

The table below presents amounts payable to related parties at September 30, 2025 and December 31, 2024 (amounts in thousands) related to the Company’s DST Program.

During the three months ended March 31, 2026 and 2025, the Company incurred asset management fees related to the DST Program of $ 0.2 million and $ 0.05 million, respectively, which are recorded within property management and asset management fees on the Company’s consolidated statements of operations and comprehensive income (loss).

The table below presents amounts payable to related parties at March 31, 2026 and December 31, 2025 (amounts in thousands) related to the Company’s DST Program.

The Company records these payables in due to affiliates on its consolidated balance sheets.

Amounts payable to related parties – DST Program

September 30, 2025

March 31, 2026

December 31, 2025

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Total amounts payable to related parties – DST Program

District at Parkview DST

In December 2025, the Company, through a DST, acquired District at Parkview to be included in its DST Program.

The purchase price of $ 66.6 million was funded with (i) a $ 38.6 million senior loan secured by District at Parkview, (ii) cash of $ 21.3 million funded by the Company, and (iii) cash of $ 9.7 million funded by Bluerock Real Estate Holdings, LLC, an affiliate of the Manager, with amounts inclusive of certain adjustments typical in such real estate transactions.

Unconsolidated Real Estate Fund

The Company’s investment in the Marble Fund, which is an unconsolidated real estate fund (refer to Note 7 for further information), is accounted for under the equity method as the Company considers its degree of influence to be more than minor.

As such, the Company’s investment in the Marble Fund is considered a related party investment.

At September 30, 2025, the Company had $ 0.1 million of related party amounts payable to the Marble Fund pertaining to carried interest.

At March 31, 2026 and December 31, 2025, the Company had $ 0.2 million and $ 0.2 million, respectively, of related party amounts payable to the Marble Fund pertaining to carried interest.

The Company records these payables in due to affiliates on its consolidated balance sheets.

The Company held no investments in unconsolidated real estate funds at December 31, 2024.

Leasehold Cost-Sharing Agreement with Bluerock Real Estate Holdings, LLC

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Payment by BREH of any amounts payable under the Leasehold Cost-Sharing Agreement to the Company will be made in cash.

The table below presents the related party amounts receivable from BREH at September 30, 2025 and December 31, 2024 pursuant to the terms of the Leasehold Cost-Sharing Agreement (amounts in thousands).

The table below presents the related party amounts receivable from BREH at March 31, 2026 and December 31, 2025 pursuant to the terms of the Leasehold Cost-Sharing Agreement (amounts in thousands).

The Company records these receivables in due from affiliates on its consolidated balance sheets.

Amounts receivable from BREH under the Leasehold Cost-Sharing Agreement

September 30, 2025

March 31, 2026

December 31, 2025

2 unchanged sentences

Total amounts receivable from BREH

At September 30, 2025 and December 31, 2024, the Company had $ 0.04 million and zero in other receivables due from related parties.

At March 31, 2026 and December 31, 2025, the Company had no other receivables due from any related parties.

Harmony at Clear Creek Development

In connection with the Harmony at Clear Creek land acquisition that occurred on September 30, 2025 (refer to Note 3 for further information), the Harmony JV entered into a joint venture agreement with BTR Preferred Investments, LLC (“BTR Preferred”), an entity that includes an affiliate of the Manager, in which BTR Preferred committed to fund up to $ 16.8 million of preferred equity interests in the Harmony at Clear Creek development.

At September 30, 2025, BTR Preferred has no t funded any of the committed amount.

In 2025, the Company entered into a joint venture agreement with an unaffiliated third party (the “Harmony JV”) to develop Harmony at Clear Creek, an approximately 188 -unit residential community located in Shawnee, Kansas.

Separately, the Harmony JV entered into a joint venture agreement with BTR Preferred Investments, LLC (“BTR Preferred”), an entity that includes an affiliate of the Manager, in which BTR Preferred committed to fund up to $ 16.8 million of preferred equity interests in the Harmony at Clear Creek development.

At March 31, 2026, BTR Preferred had no t funded any of the committed amount.

Archer at RiverBlue

In December 2025, the Company entered into a joint venture agreement with two unaffiliated third parties to develop Archer at RiverBlue, an approximately 245 -unit residential community located in Asheville, North Carolina.

The Company and one joint venture partner will each hold preferred equity interests in Archer at RiverBlue, and the remaining joint venture partner will hold the common equity interests.

Per the terms of the joint venture agreement, the common equity partner is obligated to pay a facilitation fee in an amount equal to $ 0.6 million to Bluerock Enterprise Holdings, LP, an affiliate of the Manager, for consulting services to be provided to the common equity partner.

Selling Commissions and Dealer Manager Fees

In conjunction with the offering of the Company’s Series A Preferred Stock (refer to Note 15 for further information), the Company engaged Bluerock Capital Markets, LLC, an affiliate of the Manager, as dealer manager, and pays up to 10 % of the gross offering proceeds from the offering as selling commissions and dealer manager fees.

The Company engaged Bluerock Capital Markets, LLC, an affiliate of the Manager, as dealer manager for offerings in its DST Program, the offering of its Series B Preferred Stock, and previous offering of its Series A Preferred Stock (refer to Note 15 for further information on the Company’s preferred stock offerings).

For offerings in its DST Program, the Company pays up to 8.65 % of the gross offering proceeds from the offerings as selling commissions and dealer manager fees.

The dealer manager re-allows the substantial majority of the selling commissions and dealer manager fees to participating broker-dealers.

For its offering of Series B Preferred Stock and its previous offering of Series A Preferred Stock (refer to Note 15 for further information), the Company pays up to 10 % of the gross offering proceeds from the offering as selling commissions and dealer manager fees.

The dealer manager re-allows the substantial majority of the selling commissions and dealer manager fees to participating broker-dealers and incurs costs in excess of the 10 %, which costs are borne by the dealer manager without reimbursement by the Company.

For the nine months ended September 30, 2025, the Company incurred $ 2.6 million in selling commissions and discounts and $ 1.1 million in dealer manager fees and discounts related to its offering of Series A Preferred Stock.

In addition, the Manager was, or shall be, reimbursed by the Company for offering costs of $ 0.9 million in conjunction with the offering of Series A Preferred Stock during the nine months ended September 30, 2025.

For the three months ended March 31, 2026 and related to the offering of its Series B Preferred Stock, the Company incurred $ 0.2 million in selling commissions and discounts and $ 0.1 million in dealer manager fees and discounts.

For the three months ended March 31, 2026 and related to the previous offering of its Series A Preferred Stock, the Company incurred $ 0.3 million in selling commissions and discounts and $ 0.1 million in dealer manager fees and discounts.

In addition, the Manager was, or shall be, reimbursed by the Company for offering costs of $ 0.1 million and $ 0.1 million in conjunction with the offering of its Series B Preferred Stock and previous offering of its Series A Preferred Stock, respectively, during the three months ended March 31, 2026.

The selling commissions, dealer manager fees, discounts and reimbursements for offering costs were recorded as a reduction to the proceeds of the offering.

Note 15 – Stockholders’ Equity and Redeemable Preferred Stock

Net (Loss) Income Per Common Share

Basic and diluted net (loss) income per common share is computed by dividing net (loss) income attributable to common stockholders, less dividends on restricted stock and LTIP Units expected to vest, by the weighted average number of common shares outstanding for the period.

Net (loss) income attributable to common stockholders is computed by adjusting net (loss) income for the non-forfeitable dividends paid on non-vested restricted stock and LTIP Units.

Net Loss Per Common Share

Basic and diluted net loss per common share is computed by dividing net loss attributable to common stockholders, less dividends on restricted stock and LTIP Units expected to vest, by the weighted average number of common shares outstanding for the period.

Net loss attributable to common stockholders is computed by adjusting net loss for the non-forfeitable dividends paid on non-vested restricted stock and LTIP Units.

The Company considers the requirements of the two-class method when preparing earnings per share.

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Earnings per share is not affected by the two-class method because the Company’s Class A and C common stock participate in dividends on a one -for- one basis.

The following table reconciles the components of basic and diluted net (loss) income per common share for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands, except share and per share amounts):

The following table reconciles the components of basic and diluted net loss per common share for the three months ended March 31, 2026 and 2025 (amounts in thousands, except share and per share amounts):

Three Months Ended

Nine Months Ended

September 30,

Net (loss) income

Less preferred stock dividends

1 unchanged sentence

Less dividends on restricted stock and LTIP Units expected to vest

Addback net loss (income) attributable to noncontrolling interests

Net (loss) income attributable to common stockholders

Addback net loss attributable to noncontrolling interests

Net loss attributable to common stockholders

Weighted average common shares outstanding (1)

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Weighted average common shares outstanding and potential dilutive shares (1)

Net (loss) income per common share, basic

Net (loss) income per common share, diluted

Net loss per common share, basic

Net loss per common share, diluted

Amounts relate to shares of the Company’s Class A and Class C common stock outstanding.

For the three months ended September 30, 2025, the diluted shares calculation excludes the following as the effects are antidilutive:

(i) potential vesting of restricted Class A common stock of 20,072 shares, and (ii) potential conversion of the Series A Preferred Stock into Class A common stock of 10,289,331 shares.

For the three months ended September 30, 2024, the potential vesting of restricted Class A common stock of 11,975 shares is included in the diluted shares calculation, whereas the potential conversion of the Series A Preferred Stock into Class A common stock of 4,142,972 shares is excluded from the diluted shares calculation as the effect is antidilutive.

For the nine months ended September 30, 2025 and 2024, the diluted shares calculations exclude the following as the effects are antidilutive:

(i) potential vesting of restricted Class A common stock of 7,869 shares and 3,383 shares, respectively, and (ii) potential conversion of the Series A Preferred Stock into Class A common stock of 10,287,117 shares and 2,315,348 shares, respectively.

The effect of the conversion of OP Units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Class A common stock on a one -for-one basis.

The income allocable to such OP Units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements.

For the three months ended March 31, 2026 and 2025, the diluted shares calculations exclude the following as the effects are antidilutive:

(i) potential vesting of restricted Class A common stock of 30,041 shares and 3,607 shares, respectively, (ii) potential conversion of the Series A Preferred Stock into Class A common stock of 14,111,462 shares and 9,135,723 shares, respectively, and (iii) potential conversion of the Series B Preferred Stock into Class A common stock of 63,793 shares and zero shares, respectively.

The effect of the conversion of OP Units, which are exchangeable for Class A common stock on a one-for-one basis, and LTIP Units are not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Class A common stock on a one-for-one basis.

The income allocable to OP Units is allocated on this same basis and reflected as noncontrolling interests in the accompanying consolidated financial statements.

As such, the assumed conversion of these OP Units would have no net impact on the determination of diluted earnings per share.

Series A Redeemable Preferred Stock

During the nine months ended September 30, 2025, the Company issued 1,493,372 shares of 6.0 % Series A Redeemable Preferred Stock (the “Series A Preferred Stock”) at $ 25.00 per share (the “Stated Value”) under its continuous registered offering with net proceeds of approximately $ 32.3 million after commissions, dealer manager fees and sales discounts, and costs related to establishing the offering of Series A Preferred Stock.

As of September 30, 2025, the Company had issued a total of 6,126,657 shares of Series A Preferred Stock with total net proceeds of approximately $ 133.4 million after commissions, dealer manager fees, sales discounts and offering costs.

Additionally, as of September 30, 2025, the Company, at the request of holders, had redeemed a total of 10,960 shares of Series A Preferred Stock through the issuance of 18,653 shares of Class A common stock and redeemed a total of 27,868 shares of Series A Preferred Stock in cash.

In May 2024, the Company announced the payment of an enhanced special dividend replacing the previous special dividend.

The enhanced special dividend is aggregated with the regular monthly dividend so as to effect a dividend rate of the average one-month Term SOFR rate plus two percent, subject to a 6.5 % minimum and an 8.5 % maximum annual rate, calculated and paid monthly.

Commencing in May 2024, the Series A Preferred enhanced special dividend was declared for each month for which the Board declared the regular monthly dividend of $ 0.125 per outstanding share of Series A Preferred Stock.

In 2023, the Company filed a prospectus supplement to the registration statement on Form S-11 (File No.

333-269415) (the “2023 Registration Statement”) offering a maximum of 20,000,000 shares of 6.0 % Series A Redeemable Preferred Stock (the “Series A Preferred Stock”) at $ 25.00 per share (the “Stated Value”), for a maximum offering amount of $ 500 million in Series A Preferred Stock (the “Series A Preferred Offering”).

On March 20, 2026, the Company made the final issuance of Series A Preferred Stock pursuant to the Series A Preferred Offering, and on March 31, 2026, the SEC declared effective the Company’s post-effective amendment to the 2023 Registration Statement to terminate the effectiveness of the 2023 Registration Statement and remove all unsold shares of Series A Preferred Stock from registration pursuant to the 2023 Registration Statement.

The Company issued a total of 6,527,513 shares of Series A Preferred Stock pursuant to the Series A Preferred Offering, with total net proceeds of approximately $ 141.8 million after commissions, dealer manager fees, sales discounts and offering costs.

During the three months ended March 31, 2026, the Company issued 190,200 shares of Series A Preferred Stock pursuant to the Series A Preferred Offering with net proceeds of approximately $ 4.2 million after commissions, dealer manager fees, sales discounts and costs related to establishing the offering of Series A Preferred Stock.

Additionally, as of March 31, 2026, the Company, at the request of holders, had redeemed a total of 10,960 shares of Series A Preferred Stock through the issuance of 18,653 shares of Class A common stock and redeemed a total of 43,490 shares of Series A Preferred Stock for $ 1.0 million in cash.

At the date of issuance, the carrying amount of the Series A Preferred Stock was less than the redemption value.

As a result of the Company’s determination that holder redemption is probable, the carrying value will be increased by periodic accretions so that the carrying value will equal the redemption value net of early redemption fees at the earliest redemption date.

As of September 30, 2025, the Company had recorded a total of $ 3.6 million of accretion related to the Series A Preferred Stock.

Series A Preferred Stock Redemption Safeguard Policy

On February 6, 2025, the Company implemented a new Series A Preferred Stock Redemption Safeguard Policy (the “Policy”) with respect to its Series A Preferred Stock.

The Policy is applicable in the event of any redemption of shares of Series A Preferred Stock in shares of the Company’s Class A common stock rather than in cash (each, a “Preferred Redemption in common stock”).

The Policy provides that if, within 10 business days of any such Preferred Redemption in common stock, any such shares of Class A common stock are sold at a loss (i.e.

a lower price than the Aggregate Redemption Value), the holder can apply to the Company for a cash payment to the holder in an amount equal to the difference between (i) the Aggregate Redemption Value of the Class A common stock so issued, and (ii) the Aggregate Sale Price at which such shares of Class A common stock were sold, subject to certain conditions and requirements as set forth in the Policy.

The Policy applies both retroactively, and on a go-forward basis, to holders of the Company’s Series A Preferred Stock.

As of March 31, 2026, the Company had recorded a total of $ 5.6 million of accretion related to the Series A Preferred Stock.

Series B Redeemable Preferred Stock

In December 2025, the Company filed a prospectus supplement to the registration statement on Form S-11 (File No.

333-290772) offering a maximum of 14,000,000 shares of 7.5 % Series B Redeemable Preferred Stock (the “Series B Preferred Stock”) at $ 25.00 per share, for a maximum offering amount of $ 350 million in Series B Preferred Stock (the “Series B Preferred Offering”), and on February 20, 2026, the Company made the initial issuances of Series B Preferred Stock pursuant to the Series B Preferred Offering.

As of March 31, 2026, the Company had issued 104,288 shares of Series B Preferred Stock pursuant to the Series B Preferred Offering with net proceeds of approximately $ 1.5 million after commissions, dealer manager fees, sales discounts and costs related to establishing the offering of Series B Preferred Stock.

As of March 31, 2026, the Company had not redeemed any shares of Series B Preferred Stock.

At the date of issuance, the carrying amount of the Series B Preferred Stock was less than the redemption value.

As of March 31, 2026, the Company had recorded a total of $ 0.2 million of accretion related to the Series B Preferred Stock.

Class A Common Stock Repurchase Plan

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The Company made no repurchases of its Class A common stock under this plan.

On February 28, 2025, the Board authorized a new stock repurchase plan for the repurchase, from time to time, of up to an aggregate of $ 5 million of the Company’s outstanding shares of Class A common stock, with such repurchases to be conducted in accordance with the requirements of Rule 10b-18 of the Exchange Act and subject to Rule 10b-5 of the Exchange Act.

The repurchase plan has a term of one year and may be discontinued at any time.

On February 10, 2026, the Board authorized a new stock repurchase plan, effective March 1, 2026, for the repurchase, from time to time, of up to an aggregate of $ 10 million of the Company’s outstanding shares of Class A common stock, with such repurchases to be conducted in accordance with the requirements of Rule 10b-18 of the Exchange Act of 1934 (the “Exchange Act”) and subject to Rule 10b-5 of the Exchange Act.

The repurchase plan has a term of one year and ends on February 28, 2027, and may be discontinued at any time.

The extent to which the Company repurchases shares of its Class A common stock under the repurchase plan, and the timing of any such repurchases, depends on a variety of factors including general business and market conditions and other corporate considerations.

1 unchanged sentence

Open market repurchases will be structured to occur in conformity with the method, timing, price and volume requirements of Rule 10b-18 of the Exchange Act.

As of September 30, 2025, no repurchases of Class A common stock had been made by the Company.

As of March 31, 2026, no repurchases of Class A common stock had been made by the Company.

Operating Partnership and Long-Term Incentive Plan Units

As of September 30, 2025, limited partners other than the Company owned approximately 69.30 % of the common units of the Operating Partnership ( 7,365,404 OP Units, or 55.74 %, were held by OP Unit holders, and 1,791,331 LTIP Units, or 13.56 %, were held by LTIP Unit holders, including 2.99 % which were not vested as of September 30, 2025).

As of March 31, 2026, limited partners other than the Company owned approximately 69.50 % of the common units of the Operating Partnership ( 7,365,404 OP Units, or 55.44 %, were held by OP Unit holders, and 1,867,211 LTIP Units, or 14.06 %, were held by LTIP Unit holders, including 2.36 % which were not vested as of March 31, 2026).

Subject to certain restrictions set forth in the Operating Partnership’s Partnership Agreement, OP Units are exchangeable for Class A common stock on a one -for-one basis, or, at the Company’s election, redeemable for cash.

LTIP Units and C-LTIP Units may be convertible into OP Units under certain conditions and then may be settled in shares of the Company’s Class A common stock or, at the Company’s election, cash.

On March 7, 2025, the Company granted 21,254 C-LTIP Units, or approximately $ 245,000 , to the Manager as partial payment of the total base management fee of $ 2.5 million for the fourth quarter 2024.

On May 13, 2025, the Company granted 20,445 C-LTIP Units, or approximately $ 210,000 , to the Manager as partial payment of the total base management fee of $ 2.5 million for the first quarter 2025.

And on August 19, 2025, the Company granted 16,012 C-LTIP Units, or approximately $ 210,000 , to the Manager as partial payment of the total base management fee of $ 2.6 million for the second quarter 2025.

Such C-LTIP Units were issued pursuant to the Management Agreement and were fully vested upon issuance.

On February 18, 2026, the Company granted 22,252 C-LTIP Units, or approximately $ 210,000 , to the Manager pursuant to the Management Agreement as partial payment of the total base management fee of $ 2.7 million for the fourth quarter 2025.

Such C-LTIP Units were fully vested upon issuance.

In the future, the Operating Partnership may issue OP Units or preferred OP Units from time to time in connection with acquisitions of properties or for financing, compensation or other reasons.

Equity Incentive Plans

Prior to the annual meeting of the Company’s stockholders held on June 11, 2025 (the “Annual Meeting”), the Company had in effect the Bluerock Homes Trust, Inc.

2022 Equity Incentive Plan for Individuals (the “2022 Individuals Plan”) and the Bluerock Homes Trust, Inc.

2022 Equity Incentive Plan for Entities (the “2022 Entities Plan,” and together with the 2022 Individuals Plan, the “2022 Incentive Plans”).

At the Annual Meeting, the stockholders of the Company approved the amendment and restatement of each of the 2022 Individuals Plan (as so amended and restated, the “Amended Individuals Plan”) and the 2022 Entities Plan (as so amended and restated, the “Amended Entities Plan,” and together with the Amended Individuals Plan, the “Amended Incentive Plans,” and collectively with the 2022 Incentive Plans, the “BHM Incentive Plans”).

The Amended Incentive Plans were approved by the Board on April 15, 2025, subject to the approval of the Company’s stockholders at the Annual Meeting, and became effective upon such stockholder approval.

The BHM Incentive Plans provide for the grant of options to purchase shares of our common stock, stock awards, stock appreciation rights, performance units, incentive awards and other equity-based awards, and are administered by the compensation committee of the Board.

The Company has in effect the Bluerock Homes Trust, Inc.

Amended and Restated Equity Incentive Plan for Individuals (the “Amended Individuals Plan”) and the Bluerock Homes Trust, Inc.

Amended and Restated Equity Incentive Plan for Entities (the “Amended Entities Plan”).

Together, the Company refers to the Amended Individuals Plan and the Amended Entities Plan as the “BHM Incentive Plans.” The BHM Incentive Plans provide for the grant of options to purchase shares of our common stock, stock awards, stock appreciation rights, performance units, incentive awards and other equity-based awards, and are administered by the compensation committee of the Board.

LTIP Unit and Restricted Stock Grants

Under the BHM Incentive Plans, (i) certain of the Manager’s executive management team and personnel who provide other services to the Manager (collectively, the “BREH Personnel”) were granted LTIP Units and/or shares of Class A common stock as restricted stock grants (“RSGs”) that vest over a three -year period, and (ii) each independent member of the Board was granted LTIP Units in payment of the equity portion of their respective annual retainers, with such LTIP Units fully vested upon issuance.

Under the BHM Incentive Plans, (i) certain of the Manager’s executive management team and personnel who provide services to the Manager were granted LTIP Units and/or shares of Class A common stock as restricted stock grants (“RSGs”) that vest over a three-year period, and (ii) each independent member of the Board was granted LTIP Units in payment of the equity portion of their respective annual retainers, with such LTIP Units fully vested upon issuance.

On January 1, 2026, the Company granted 7,824 LTIP Units pursuant to the BHM Incentive Plans to each independent member of the Board in payment of the equity portion of their respective annual retainers.

Such LTIP Units were fully vested upon issuance and the Company recognized expense of $ 0.3 million based on the fair value at the date of grant.

In April 2025, the Company issued 74,031 LTIP Units pursuant to the BHM Incentive Plans directly to and among certain of the BREH Personnel as an annual long-term incentive equity grant for the year ended December 31, 2024.

Such LTIP Units will vest ratably on an annual basis over a three -year period from the date of grant.

Such LTIP Units were fully vested upon issuance and the Company recognized expense of $ 0.3 million based on the fair value at the date of grant, with such expense recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income (loss).

The Company recognizes compensation expense ratably over the vesting period for time-based LTIP Units based on the fair value at the date of grant.

During the three and nine months ended September 30, 2025 and 2024, the Company recognized compensation expense for such LTIP Units of approximately $ 0.7 million and $ 0.7 million, and $ 2.2 million and $ 2.0 million, respectively.

Such expense was recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income.

As of September 30, 2025, there was $ 5.4 million of total unrecognized compensation expense related to unvested LTIP Units granted under the BHM Incentive Plans.

During the three months ended March 31, 2026 and 2025, the Company recognized compensation expense for such LTIP Units of approximately $ 0.7 million and $ 0.7 million, respectively.

Such expense was recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income (loss).

As of March 31, 2026, there was $ 3.7 million of total unrecognized compensation expense related to unvested LTIP Units granted under the BHM Incentive Plans.

The remaining expense is expected to be recognized over a period of 1.6 years.

Once vested, these awards of LTIP Units may convert to OP Units upon reaching capital account equivalency with the OP Units held by the Company, and may then be redeemed for cash or, at the option of the Company and after a one year holding period (including any period during which the LTIP Units were held), settled in shares of the Company’s Class A common stock on a one-for-one basis.

The holders of such LTIP Units will be entitled to receive “distribution equivalents” with respect to such LTIP Units, whether or not vested, at the same time distributions are paid to the holders of the Company’s Class A common stock.

Restricted Stock

On April 1, 2025, the Company issued 112,563 shares of Class A common stock as RSGs pursuant to the BHM Incentive Plans directly to and among certain of the BREH Personnel as an annual long-term incentive equity grant for the year ended December 31, 2024.

Such RSGs will vest ratably on an annual basis over a three -year period from the date of grant.

The Company recognizes compensation expense ratably over the vesting period for time-based RSGs.

During the three and nine months ended September 30, 2025 and 2024, the Company recognized compensation expense for RSGs of approximately $ 0.2 million and $ 0.2 million, and $ 0.6 million and $ 0.4 million, respectively.

Such expense was recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income.

At September 30, 2025, there was $ 1.7 million of total unrecognized compensation expense related to the unvested RSGs granted under the BHM Incentive Plans.

During the three months ended March 31, 2026 and 2025, the Company recognized compensation expense for RSGs of approximately $ 0.2 million and $ 0.2 million, respectively.

Such expense was recorded as part of general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income (loss).

As of March 31, 2026, there was $ 1.2 million of total unrecognized compensation expense related to the unvested RSGs granted under the BHM Incentive Plans.

The remaining expense is expected to be recognized over a period of 1.7 years.

5 unchanged sentences

March 11, 2025

March 25, 2025

April 4, 2025

March 11, 2025

June 25, 2025

March 11, 2025

September 25, 2025

October 3, 2025

March 11, 2025

December 24, 2025

January 5, 2026

Class C common stock

March 10, 2026

1 unchanged sentence

April 2, 2026

March 11, 2025

June 25, 2025

March 11, 2025

September 25, 2025

October 3, 2025

Class C common stock

March 11, 2025

1 unchanged sentence

January 5, 2026

March 10, 2026

March 25, 2026

April 2, 2026

Series A Preferred Stock (1)

11 unchanged sentences

April 2, 2026

April 15, 2025

April 25, 2025

April 15, 2025

June 25, 2025

July 15, 2025

July 25, 2025

August 5, 2025

July 15, 2025

August 25, 2025

September 5, 2025

July 15, 2025

September 25, 2025

October 3, 2025

Series A Preferred Enhanced Special Dividend (2)

11 unchanged sentences

April 2, 2026

April 15, 2025

April 25, 2025

April 15, 2025

Series B Preferred Stock (1)

January 15, 2026

January 23, 2026

February 5, 2026

January 15, 2026

February 25, 2026

March 5, 2026

January 15, 2026

March 25, 2026

April 2, 2026

June 25, 2025

July 15, 2025

July 25, 2025

August 5, 2025

July 15, 2025

August 25, 2025

September 5, 2025

July 15, 2025

September 25, 2025

October 3, 2025

Holders of record of newly issued Series A Preferred Stock shares that are held only a portion of the applicable monthly dividend period will receive a prorated dividend based on the actual number of days in the applicable dividend period during which each such share of Series A Preferred Stock was outstanding.

Holders of record of newly issued Series A Preferred Stock shares and Series B Preferred Stock shares that are held only a portion of the applicable monthly dividend period will receive a prorated dividend based on the actual number of days in the applicable dividend period during which each such share of Series A Preferred Stock and Series B Preferred Stock was outstanding.

Holders of record of Series A Preferred Stock shares are entitled to an enhanced special dividend equal to the amount by which (i) the Stated Value of the Series A Preferred Stock multiplied by (a) the sum of (I) the average of the one-month Term SOFR for each day commencing on the 26 th of the prior month to the 25 th of the applicable month, plus (II) two percent, divided by (b) twelve , exceeds (ii) the standard monthly dividend of $ 0.125 per share of Series A Preferred Stock.

3 unchanged sentences

Holders of restricted stock, OP Units, LTIP Units and C-LTIP Units are entitled to receive “distribution equivalents” at the same time as dividends are paid to holders of the Company’s Class A common stock.

Distributions declared and paid for the nine months ended September 30, 2025 were as follows (amounts in thousands):

Distributions declared and paid for the three months ended March 31, 2026 were as follows (amounts in thousands):

Distributions

3 unchanged sentences

Series A Preferred Stock (1)

Series B Preferred Stock

LTIP / C-LTIP Units

Total first quarter

Second Quarter

Class A common stock

Class C common stock

Series A Preferred Stock (1)

LTIP / C-LTIP Units

Total second quarter

Third Quarter

Class A common stock

Class C common stock

Series A Preferred Stock (1)

LTIP / C-LTIP Units

Total third quarter

Series A Preferred Stock amounts include the standard dividend at an annual rate of 6.0 % of the Stated Value and any enhanced special dividends.

Note 16 – Commitments and Contingencies

The aggregate amount of the Company’s contractual commitments to fund future cash obligations in certain of its preferred equity investments was $ 23.2 million and $ 17.6 million at September 30, 2025 and December 31, 2024, respectively.

The aggregate amount of the Company’s contractual commitments to fund future cash obligations in certain of its preferred equity investments was $ 20.8 million and $ 27.0 million at March 31, 2026 and December 31, 2025, respectively.

In addition, the Company has two consolidated residential communities (Abode Wendell Falls and Harmony at Clear Creek) under construction comprised of an aggregate of 358 units.

At September 30, 2025, the Company estimates the remaining costs to complete the construction of these two residential communities to be approximately $ 121.4 million.

At March 31, 2026, the Company estimates the remaining costs to complete the construction of these two residential communities to be approximately $ 111.3 million.

The Company intends to finance these costs through a combination of available cash, proceeds from construction loans, and preferred equity capital contributions.

The Company also committed to acquire an aggregate of 100 residential community units known as Parkside at Summers Corner.

The Company expects acquisitions to occur in tranches as construction is completed, and as of March 31, 2026, 78 units remain to be acquired, representing an aggregate purchase price of $ 20.0 million.

The Company is subject to various legal actions and claims arising in the ordinary course of business.

3 unchanged sentences

In accordance with ASC Topic 842 Leases , the Company classifies the Lease as an operating lease, and by way of practical expedient, the Company has elected to account for lease and non-lease (ex.

common area maintenance) components of the Lease as a single lease component on its consolidated statements of operations and comprehensive income.

common area maintenance) components of the Lease as a single lease component in its consolidated statements of operations and comprehensive income (loss).

The Company recognizes the single lease component on a straight-line basis over the term of the Lease, and expenses that are non-components of the lease, such as real estate taxes for which the Company is not a direct beneficiary of the arrangement, are expensed in the period in which the obligation for those payments are incurred.

For the three and nine months ended September 30, 2025, the Company recorded $ 0.1 million and $ 0.3 million, respectively, of net rent expense related to the Lease.

The Company did no t record any net rent expense related to the Lease during the corresponding periods ended September 30, 2024.

For the three months ended March 31, 2026 and 2025, the Company recorded $ 0.1 million and $ 0.1 million, respectively, of net rent expense related to the Lease.

Upon commencement of the Lease in November 2024, the Company recorded a right-of-use asset of $ 5.1 million and a lease liability of $ 5.0 million on its consolidated balance sheets.

2 unchanged sentences

As such, the Company used a third-party analysis to determine that a discount rate of 7.61 % approximated the incremental borrowing rate that it would incur for a loan that was of a similar term as the Lease and with a similar form of underlying collateral.

At September 30, 2025, the remaining right-of-use asset and lease liability balances were $ 4.6 million and $ 5.1 million, respectively, and the remaining Lease term was approximately 5.8 years.

At March 31, 2026, the remaining right-of-use asset and lease liability balances were $ 4.2 million and $ 4.7 million, respectively, and the remaining Lease term was approximately 5.3 years.

In addition, the Company incurred tenant improvement costs related to the renovation and buildout of the NY Premises which are capitalized and included within net real estate investments on the Company’s consolidated balance sheets.

Such tenant improvement costs are depreciated on a straight-line basis over the term of the Lease.

The following table summarizes the future minimum lease payments and total operating lease liability as of September 30, 2025 (amounts in thousands):

2025 (October 1 – December 31)

The following table summarizes the future minimum lease payments and total operating lease liability as of March 31, 2026 (amounts in thousands):

2026 (April 1 – December 31)

Total future minimum lease payments (undiscounted cash flows)

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In addition, these residential communities typically have onsite property management.

Scattered single-family homes segment includes the acquisition, ownership, management, and renovation of scattered single-family homes, which are, generally, detached homes with no onsite property management.

The following table summarizes NOI by the Company’s reportable segments for the three and nine months ended September 30, 2025 and 2024, and reconciles NOI to net (loss) income attributable to common stockholders on the Company’s statements of operations and comprehensive income.

Prior year amounts have been reclassified to conform to the current period segment presentation (amounts in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Scattered single-family homes segment includes the ownership, management, and renovation of scattered single-family homes, which are, generally, detached homes with no onsite property management.

The following table summarizes NOI by the Company’s reportable segments for the three months ended March 31, 2026 and 2025, and reconciles NOI to net loss attributable to common stockholders on the Company’s statements of operations and comprehensive income (loss) (amounts in thousands):

Three Months Ended March 31,

Rental and other property revenues

17 unchanged sentences

Weather-related losses, net

Impairment of real estate investments

Depreciation and amortization

Other (expense) income, net

Other expense, net

Income from preferred equity investments

Income from investments in unconsolidated real estate funds

(Provision for) recovery of credit losses, net

(Impairment) and gain on sale of real estate investments, net

Gain on sale of available-for-sale investments

Share of net earnings of equity method investment

Recovery of credit losses, net

Gain on sale of real estate investments, net

Loss on extinguishment of debt

2 unchanged sentences

Income tax expense

Net (loss) income

Preferred stock dividends

Preferred stock accretion

Net loss (income) attributable to noncontrolling interests

Net (loss) income attributable to common stockholders

The following table reconciles the Company’s total rental and other property revenues for reportable segments to total revenues on the Company’s consolidated statement of operations and comprehensive income for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Net loss attributable to noncontrolling interests

Net loss attributable to common stockholders

The following table reconciles the Company’s total rental and other property revenues for reportable segments to total revenues on the Company’s consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2026 and 2025 (amounts in thousands):

Three Months Ended March 31,

Rental and other property revenues

4 unchanged sentences

Total revenues

Asset information by reportable segment is not provided as the CODMs do not use asset values to make decisions about the allocation of resources.

At March 31, 2026 and December 31, 2025, net real estate assets totaled $ 558.0 million and $ 556.2 million for residential communities, respectively, and $ 288.9 million and $ 311.8 million for scattered single-family homes, respectively.

Note 18 – Subsequent Events

3 unchanged sentences

Series A Preferred Stock

October 15, 2025

October 24, 2025

November 5, 2025

October 15, 2025

November 25, 2025

December 5, 2025

October 15, 2025

December 24, 2025

January 5, 2026

April 13, 2026

April 24, 2026

April 13, 2026

June 25, 2026

Series A Preferred Enhanced Special Dividend

October 15, 2025

October 24, 2025

November 5, 2025

October 15, 2025

November 25, 2025

December 5, 2025

October 15, 2025

December 24, 2025

January 5, 2026

April 13, 2026

April 24, 2026

April 13, 2026

June 25, 2026

Series B Preferred Stock (2)

April 13, 2026

April 24, 2026

April 13, 2026

June 25, 2026

(1) Holders of record of Series A Preferred Stock shares are entitled to an enhanced special dividend equal to the amount by which (i) the Stated Value of the Series A Preferred Stock multiplied by (a) the sum of (I) the average of the one-month Term SOFR for each day commencing on the 26 th of the prior month to the 25 th of the applicable month, plus (II) two percent, divided by (b) twelve , exceeds (ii) the standard monthly dividend of $ 0.125 per share of Series A Preferred Stock.

The enhanced special dividend will be aggregated with the standard monthly dividend so as to affect a dividend rate on the Series A Preferred Stock that is subject to a 6.5 % minimum and 8.5 % maximum annual rate.

The enhanced special dividend will be aggregated with the standard monthly dividend so as to effect a dividend rate on the Series A Preferred Stock that is subject to a 6.5 % minimum and 8.5 % maximum annual rate.

(2) Holders of record of newly issued Series B Preferred Stock shares that are held only a portion of the applicable monthly dividend period will receive a prorated dividend based on the actual number of days in the applicable dividend period during which each such share of Series B Preferred Stock was outstanding.

Distributions Paid

The following distributions were declared and/or paid to the Company’s stockholders subsequent to September 30, 2025 (amounts in thousands):

The following distributions were declared and/or paid to the Company’s stockholders subsequent to March 31, 2026 (amounts in thousands):

Declaration Date

3 unchanged sentences

March 10, 2026

September 25, 2025

October 3, 2025

March 25, 2026

April 2, 2026

Class C common stock

March 10, 2026

September 25, 2025

October 3, 2025

March 25, 2026

April 2, 2026

Series A Preferred Stock (1)

July 15, 2025

September 25, 2025

October 3, 2025

January 15, 2026

March 25, 2026

September 25, 2025

October 3, 2025

April 2, 2026

Series B Preferred Stock

January 15, 2026

March 25, 2026

April 2, 2026

March 10, 2026

March 25, 2026

April 2, 2026

LTIP / C-LTIP Units

March 10, 2026

September 25, 2025

October 3, 2025

March 25, 2026

April 2, 2026

Series A Preferred Stock (1)

October 15, 2025

October 24, 2025

November 5, 2025

April 13, 2026

April 24, 2026

Series B Preferred Stock

April 13, 2026

April 24, 2026

(1) Series A Preferred Stock distribution per share amounts include the standard dividend at an annual rate of 6.0 % of the Stated Value and any enhanced special dividends.

Parkside at Summers Corner

On April 23, 2026, the Company acquired, with full ownership interest, an additional 10 units at Parkside at Summers Corner located in Summerville, South Carolina for an aggregate purchase price of $ 2.6 million.

Units are to be acquired in tranches as construction is completed, and as of the date of this Quarterly Report on Form 10-Q, the Company has acquired 32 of the total 100 units it has committed to purchase.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements