Bluerock Homes Trust, Inc. 10-Q

Item 1. Financial Statements BLUEROCK HOMES TRUST, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2024 2023 ASSETS ​ ​ Net Real Estate Investments ​ ​ Land ​ $ 78,342 ​ $ 70,637 Buildings and improvements ​ 414,880 ​ 394,548 Furniture, fixtures and equipment ​ 15,806 ​ 13,277 Total Gross Operating Real Estate Investments ​ 509,028 ​ 478,462 Accumulated depreciation ​ ( 38,410 ) ​ ( 32,452 ) Total Net Operating Real Estate Investments ​ 470,618 ​ 446,010 Operating real estate held for sale, net ​ ​ 26,507 ​ ​ 18,890 Total Net Real Estate Investments ​ ​ 497,125 ​ ​ 464,900 Cash and cash equivalents ​ 155,131 ​ 80,163 Restricted cash ​ 9,673 ​ 6,221 Notes and accrued interest receivable, net ​ ​ 34,711 ​ ​ 17,797 Accounts receivable, prepaids and other assets, net ​ 30,642 ​ 19,688 Preferred equity investments, net ​ 72,971 ​ 82,851 In-place lease intangible assets, net ​ ​ 491 ​ ​ — Non-real estate assets associated with operating real estate held for sale ​ ​ 85 ​ ​ — TOTAL ASSETS ​ $ 800,829 ​ $ 671,620 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND EQUITY ​ ​ ​ ​ Mortgages payable ​ $ 122,529 ​ $ 96,670 Revolving credit facilities ​ 105,000 ​ 70,000 Accounts payable ​ 1,017 ​ 691 Other accrued liabilities ​ 12,130 ​ 9,438 Due to affiliates ​ 3,615 ​ 3,509 Distributions payable ​ ​ 548 ​ ​ 12,440 Liabilities associated with operating real estate held for sale ​ ​ 519 ​ ​ — Total Liabilities ​ 245,358 ​ 192,748 6.0 % Series A Redeemable Preferred Stock, liquidation preference $ 25.00 per share, 30,000,000 shares authorized; 3,889,446 and 436,675 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively ​ ​ 85,992 ​ ​ 8,273 Equity ​ ​ ​ ​ Stockholders’ Equity ​ ​ ​ ​ Preferred stock, $ 0.01 par value, 220,000,000 shares authorized; no shares issued and outstanding at September 30, 2024 and December 31, 2023 ​ ​ — ​ — Common stock - Class A, $ 0.01 par value, 562,500,000 shares authorized; 3,953,919 and 3,871,265 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively ​ ​ 40 ​ 39 Common stock - Class C, $ 0.01 par value, 187,500,000 shares authorized; 8,489 shares issued and outstanding at September 30, 2024 and December 31, 2023 ​ ​ — ​ — Additional paid-in-capital ​ ​ 119,683 ​ ​ 122,369 Retained earnings ​ ​ 23,212 ​ ​ 24,943 Total Stockholders’ Equity ​ ​ 142,935 ​ ​ 147,351 Noncontrolling Interests ​ ​ ​ ​ ​ ​ Operating partnership units ​ ​ 312,780 ​ ​ 307,945 Partially owned properties ​ ​ 13,764 ​ ​ 15,303 Total Noncontrolling Interests ​ ​ 326,544 ​ ​ 323,248 Total Equity ​ ​ 469,479 ​ ​ 470,599 TOTAL LIABILITIES AND EQUITY ​ $ 800,829 ​ $ 671,620 ​ See Notes to Consolidated Financial Statements 3 Table of Contents BLUEROCK HOMES TRUST, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2024 2023 2024 2023 Revenues ​ ​ ​ ​ Rental and other property revenues ​ $ 11,976 ​ $ 10,183 ​ $ 34,670 ​ $ 30,591 Interest income from loan investments ​ 730 ​ — ​ 1,735 ​ — Total revenues ​ 12,706 ​ 10,183 ​ 36,405 ​ 30,591 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses ​ ​ ​ ​ ​ ​ ​ ​ Property operating ​ 6,434 ​ 5,094 ​ 17,391 ​ 14,233 Property management and asset management fees ​ 1,181 ​ 1,113 ​ 3,472 ​ 3,308 General and administrative ​ 2,451 ​ 1,675 ​ 7,756 ​ 5,464 Management fees to related party ​ 2,377 ​ 1,993 ​ 6,621 ​ 5,875 Acquisition and other transaction costs ​ 17 ​ 7 ​ 21 ​ 1,787 Weather-related losses, net ​ ​ 178 ​ ​ — ​ ​ 178 ​ ​ ( 17 ) Depreciation and amortization ​ 4,883 ​ 4,100 ​ 13,712 ​ 12,092 Total expenses ​ 17,521 ​ 13,982 ​ 49,151 ​ 42,742 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense) ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense), net ​ 166 ​ ( 165 ) ​ 106 ​ ( 121 ) Income from preferred equity investments ​ ​ 2,721 ​ ​ 2,959 ​ ​ 8,308 ​ ​ 8,649 Provision for credit losses, net ​ ( 48 ) ​ ( 37 ) ​ ( 214 ) ​ ( 63 ) Gain on sale and impairment of real estate investments, net ​ 9,304 ​ — ​ 8,770 ​ 661 Loss on extinguishment of debt costs ​ ​ ( 118 ) ​ ​ — ​ ​ ( 118 ) ​ ​ — Interest expense, net ​ ( 5,248 ) ​ ( 3,499 ) ​ ( 12,818 ) ​ ( 8,715 ) Interest income ​ ​ 1,585 ​ ​ 923 ​ ​ 3,918 ​ ​ 1,665 Total other income ​ 8,362 ​ 181 ​ 7,952 ​ 2,076 Net income (loss) ​ 3,547 ​ ( 3,618 ) ​ ( 4,794 ) ​ ( 10,075 ) Preferred stock dividends ​ ​ ( 1,412 ) ​ ​ ( 12 ) ​ ​ ( 2,227 ) ​ ​ ( 12 ) Preferred stock accretion ​ ​ — ​ ​ — ​ ​ ( 181 ) ​ ​ — Net income (loss) attributable to noncontrolling interests ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating partnership units ​ 2,010 ​ ( 2,142 ) ​ ( 3,695 ) ​ ( 5,780 ) Partially owned properties ​ ( 796 ) ​ ( 420 ) ​ ( 1,776 ) ​ ( 1,364 ) Net income (loss) attributable to noncontrolling interests ​ 1,214 ​ ( 2,562 ) ​ ( 5,471 ) ​ ( 7,144 ) Net income (loss) attributable to common stockholders ​ $ 921 ​ $ ( 1,068 ) ​ $ ( 1,731 ) ​ $ ( 2,943 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per common share – Basic ​ $ 0.24 ​ $ ( 0.28 ) ​ $ ( 0.45 ) ​ $ ( 0.77 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per common share – Diluted ​ $ 0.24 ​ $ ( 0.28 ) ​ $ ( 0.45 ) ​ $ ( 0.77 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic common shares outstanding ​ ​ 3,859,226 ​ ​ 3,845,926 ​ ​ 3,853,321 ​ ​ 3,844,488 Weighted average diluted common shares outstanding ​ ​ 3,871,201 ​ ​ 3,845,926 ​ ​ 3,853,321 ​ ​ 3,844,488 ​ See Notes to Consolidated Financial Statements ​ 4 Table of Contents 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 ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ ​ Number ​ ​ ​ ​ Paid-in ​ Retained ​ Noncontrolling ​ ​ ​ ​ of Shares Par Value of Shares Par Value Capital Earnings Interests Total Equity Balance, July 1, 2024 ​ 3,946,348 ​ $ 39 ​ 8,489 ​ $ — ​ $ 120,198 ​ $ 22,291 ​ $ 325,551 ​ $ 468,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuance of restricted Class A common stock and long-term incentive plan (“LTIP”) Units for equity incentive plan compensation, net of shares withheld for employee taxes ​ ( 186 ) ​ ​ — ​ — ​ ​ — ​ ​ 153 ​ ​ — ​ ​ 727 ​ ​ 880 Issuance of C-LTIP Units to Manager ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,086 ​ ​ 1,086 Series A Preferred Stock distributions declared ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 1,412 ) ​ ​ — ​ ​ ( 1,412 ) Distributions to partially owned properties’ noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 18 ) ​ ​ ( 18 ) Acquisition of noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 2,211 ) ​ ​ — ​ ​ ( 650 ) ​ ​ ( 2,861 ) Holder redemption of Series A Preferred Stock and conversion into Class A common stock ​ 7,757 ​ ​ 1 ​ — ​ ​ — ​ ​ 139 ​ ​ — ​ ​ — ​ ​ 140 Contributions from noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 38 ​ ​ 38 Adjustment for noncontrolling interest ownership in the Operating Partnership ​ — ​ ​ — ​ — ​ ​ — ​ ​ 1,404 ​ ​ — ​ ​ ( 1,404 ) ​ ​ — Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 2,333 ​ ​ 1,214 ​ ​ 3,547 Balance, September 30, 2024 ​ 3,953,919 ​ $ 40 ​ 8,489 ​ $ — ​ $ 119,683 ​ $ 23,212 ​ $ 326,544 ​ $ 469,479 ​ See Notes to Consolidated Financial Statements ​ 5 Table of Contents BLUEROCK HOMES TRUST, INC. FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023 CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) (In thousands, except share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Class A Common Stock ​ Class C Common Stock ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ Number ​ ​ ​ Paid-in ​ Retained ​ Noncontrolling ​ ​ ​ ​ of Shares Par Value of Shares Par Value Capital Earnings Interests Total Equity Balance, July 1, 2023 ​ 3,868,697 ​ $ 39 ​ 8,489 ​ $ — ​ $ 125,666 ​ $ 31,450 ​ $ 329,081 ​ $ 486,236 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuance of restricted Class A common stock and LTIP Units for equity incentive plan compensation ​ — ​ — ​ — ​ — ​ 47 ​ — ​ 667 ​ 714 Issuance of C-LTIP Units to Manager ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,347 ​ ​ 2,347 Series A Preferred Stock distributions declared ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 12 ) ​ ​ — ​ ​ ( 12 ) Distributions to partially owned properties’ noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 34 ) ​ ​ ( 34 ) Adjustment for noncontrolling interest ownership in the Operating Partnership ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 1,056 ) ​ ​ — ​ ​ 1,056 ​ ​ — Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 1,056 ) ​ ​ ( 2,562 ) ​ ​ ( 3,618 ) Balance, September 30, 2023 ​ 3,868,697 ​ $ 39 ​ 8,489 ​ $ — ​ $ 124,657 ​ $ 30,382 ​ $ 330,555 ​ $ 485,633 ​ See Notes to Consolidated Financial Statements ​ 6 Table of Contents 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 ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ ​ Number ​ ​ ​ ​ Paid-in ​ Retained ​ Noncontrolling ​ ​ ​ ​ of Shares Par Value of Shares Par Value Capital Earnings Interests Total Equity Balance, January 1, 2024 ​ 3,871,265 ​ $ 39 ​ 8,489 ​ $ — ​ $ 122,369 ​ $ 24,943 ​ $ 323,248 ​ $ 470,599 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuance of restricted Class A common stock and LTIP Units for equity incentive plan compensation, net of shares withheld for employee taxes ​ 73,551 ​ ​ — — ​ ​ — ​ ​ 297 ​ ​ — ​ ​ 2,139 ​ ​ 2,436 Issuance of C-LTIP Units to Manager ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 5,455 ​ ​ 5,455 Series A Preferred Stock distributions declared ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 2,227 ) ​ ​ — ​ ​ ( 2,227 ) Series A Preferred Stock accretion ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 181 ) ​ ​ — ​ ​ ( 181 ) Distributions to partially owned properties’ noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 104 ) ​ ​ ( 104 ) Acquisition of noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 2,211 ) ​ ​ — ​ ​ ( 650 ) ​ ​ ( 2,861 ) Holder redemption of Series A Preferred Stock and conversion into Class A common stock ​ 9,103 ​ ​ 1 ​ — ​ ​ — ​ ​ 164 ​ ​ — ​ ​ — ​ ​ 165 Contributions from noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 991 ​ ​ 991 Adjustment for noncontrolling interest ownership in the Operating Partnership ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 936 ) ​ ​ — ​ ​ 936 ​ ​ — Net income (loss) ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 677 ​ ​ ( 5,471 ) ​ ​ ( 4,794 ) Balance, September 30, 2024 ​ 3,953,919 ​ $ 40 ​ 8,489 ​ $ — ​ $ 119,683 ​ $ 23,212 ​ $ 326,544 ​ $ 469,479 ​ See Notes to Consolidated Financial Statements ​ 7 Table of Contents BLUEROCK HOMES TRUST, INC. FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) (In thousands, except share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Class A Common Stock ​ Class C Common Stock ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ Number ​ ​ ​ Paid-in ​ Retained ​ Noncontrolling ​ ​ ​ ​ of Shares Par Value of Shares Par Value Capital Earnings Interests Total Equity Balance, January 1, 2023 ​ 3,835,013 ​ $ 38 ​ 8,489 ​ $ — ​ $ 126,623 ​ $ 33,325 ​ $ 332,002 ​ $ 491,988 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Issuance of restricted Class A common stock and LTIP Units for equity incentive plan compensation ​ 31,260 ​ 1 ​ — ​ — ​ 62 ​ — ​ 1,935 ​ 1,998 Issuance of C-LTIP Units to Manager ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 6,763 ​ ​ 6,763 Series A Preferred Stock distributions declared ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 12 ) ​ ​ — ​ ​ ( 12 ) Distributions to partially owned properties’ noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 230 ) ​ ​ ( 230 ) Acquisition of noncontrolling interests ​ — ​ ​ — ​ — ​ ​ — ​ ​ 1,515 ​ ​ — ​ ​ ( 6,564 ) ​ ​ ( 5,049 ) Conversion of Operating Partnership Units to Class A common stock ​ 2,424 ​ ​ — ​ — ​ ​ — ​ ​ 100 ​ ​ — ​ ​ ( 100 ) ​ ​ — Contributions from noncontrolling interests ​ — ​ — ​ — ​ — ​ — ​ — ​ 250 ​ 250 Adjustment for noncontrolling interest ownership in the Operating Partnership ​ — ​ — ​ — ​ — ​ ( 3,643 ) ​ — ​ 3,643 ​ — Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 2,931 ) ​ ​ ( 7,144 ) ​ ​ ( 10,075 ) Balance, September 30, 2023 ​ 3,868,697 ​ $ 39 ​ 8,489 ​ $ — ​ $ 124,657 ​ $ 30,382 ​ $ 330,555 ​ $ 485,633 ​ See Notes to Consolidated Financial Statements ​ 8 Table of Contents BLUEROCK HOMES TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ 2024 2023 Cash flows from operating activities ​ ​ Net loss ​ $ ( 4,794 ) ​ $ ( 10,075 ) Adjustments to reconcile net loss to net cash provided by operating activities: ​ ​ ​ ​ Depreciation and amortization ​ 14,780 ​ 14,277 Amortization of fair value adjustments ​ 46 ​ ( 240 ) Income from preferred equity investments ​ ( 8,308 ) ​ ( 8,649 ) Gain on sale and impairment of real estate investments, net ​ ​ ( 8,770 ) ​ ​ ( 661 ) Fair value adjustment of interest rate caps and swaps ​ ​ 3,444 ​ ​ 1,336 Provision for credit losses, net ​ 214 ​ 63 Loss on extinguishment of debt ​ 118 ​ — Distributions of income and income from preferred equity investments ​ 2,092 ​ 1,290 Share-based compensation attributable to equity incentive plan ​ 2,436 ​ 1,997 Share-based compensation to Manager – C-LTIP Units ​ 5,455 ​ 6,763 Changes in operating assets and liabilities: ​ ​ ​ ​ Due to affiliates, net ​ 107 ​ 363 Accounts receivable, prepaids and other assets ​ ( 5,198 ) ​ ( 837 ) Notes and accrued interest receivable ​ ( 742 ) ​ — Accounts payable and other accrued liabilities ​ 3,174 ​ 1,162 Net cash provided by operating activities ​ 4,054 ​ 6,789 ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ ​ Acquisitions of real estate investments ​ ( 51,454 ) ​ ( 4,330 ) Capital expenditures ​ ( 5,939 ) ​ ( 7,201 ) Purchase of interest rate cap ​ ​ ( 2,688 ) ​ ​ — Investments in notes receivable ​ ( 24,554 ) ​ — Repayments on notes receivable ​ 8,284 ​ — Proceeds from sale of real estate investments ​ ​ 43,996 ​ ​ 5,625 Proceeds from redemption of preferred equity investments ​ 12,768 ​ 8,494 Insurance proceeds related to real estate investments ​ 149 ​ — Investments in preferred equity investments ​ ( 3,005 ) ​ ( 7,528 ) Net cash used in investing activities ​ ( 22,443 ) ​ ( 4,940 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ ​ ​ Distributions to common stockholders ​ ( 3,879 ) ​ — Distributions to noncontrolling interests ​ ( 8,509 ) ​ — Distributions to partially owned properties’ noncontrolling interests ​ ( 104 ) ​ ( 230 ) Distributions to preferred stockholders ​ ​ ( 1,731 ) ​ ​ — Contributions from noncontrolling interests ​ 991 ​ 250 Purchase of interests from noncontrolling interests ​ ( 2,573 ) ​ ( 5,049 ) Borrowings on mortgages payable ​ ​ 23,660 ​ ​ — Repayments on mortgages payable including prepayment penalties ​ ( 21,272 ) ​ ( 1,124 ) Proceeds from revolving credit facilities ​ 35,000 ​ 21,000 Repayments on revolving credit facilities ​ ​ — ​ ​ ( 6,000 ) Payments of deferred financing fees ​ ​ ( 1,504 ) ​ ​ ( 1,092 ) Net proceeds from issuance of 6.0 % Series A Redeemable Preferred Stock ​ ​ 76,730 ​ ​ 3,417 Net cash provided by financing activities ​ 96,809 ​ 11,172 ​ ​ ​ ​ ​ Net increase in cash, cash equivalents and restricted cash ​ $ 78,420 ​ $ 13,021 Cash, cash equivalents and restricted cash, beginning of year ​ 86,384 ​ 82,562 Cash, cash equivalents and restricted cash, end of period ​ $ 164,804 ​ $ 95,583 ​ ​ ​ ​ ​ ​ ​ Reconciliation of cash, cash equivalents and restricted cash ​ ​ ​ ​ Cash and cash equivalents ​ $ 155,131 ​ $ 89,435 Restricted cash ​ ​ 9,673 ​ ​ 6,148 Total cash, cash equivalents and restricted cash, end of period ​ $ 164,804 ​ $ 95,583 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of cash flow information ​ ​ ​ ​ Cash paid for interest (net of interest capitalized) ​ $ 7,984 ​ $ 5,272 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of non-cash investing and financing activities ​ ​ ​ ​ Distributions payable – declared and unpaid ​ $ 548 ​ $ 12 Mortgage assumed upon property acquisition ​ $ 24,333 ​ $ — Capital expenditures held in accounts payable and other accrued liabilities ​ $ 276 ​ $ 883 ​ See Notes to Consolidated Financial Statements 9 Table of Contents BLUEROCK HOMES TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ​ Note 1 – Organization and Nature of Business Bluerock Homes Trust, Inc. (the “Company”) was incorporated in Maryland on December 16, 2021. The Company owns and operates high-quality single-family properties 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 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 pre-existing single-family residential units, developing build-to-rent 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, 2024, the Company held twenty real estate investments, consisting of twelve consolidated investments and eight preferred equity and loan investments. The twenty investments represent an aggregate of 4,000 residential units, comprised of 2,742 consolidated units, of which 170 units are under development, and 1,258 units through preferred equity and loan investments, which includes planned units and those under development. As of September 30, 2024, the Company’s consolidated operating investments were approximately 90.5 % occupied; excluding units classified as held for sale and down/renovation units, the Company’s consolidated operating investments were approximately 94.3 % occupied. The Company has elected to be treated, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. As a REIT, the Company generally is not subject to corporate-level income taxes. To maintain its REIT status, the Company is required, among other requirements, to distribute annually at least 90 % of its “REIT taxable income,” as defined by the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s stockholders. If the Company fails to qualify as a REIT in any taxable year, it would be subject to federal income tax on its taxable income at regular corporate tax rates and it would not be permitted to qualify as a REIT for four years following the year in which it lost its qualification. The Company intends to continue to organize and operate in such a manner as to remain qualified as a REIT. Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company conducts its operations through Bluerock Residential Holdings, L.P., its operating partnership (the “Operating Partnership”), of which it is the sole general partner. The consolidated financial statements include the Company’s accounts and those of the Operating Partnership and its subsidiaries. As of September 30, 2024, limited partners other than the Company owned approximately 69.29 % of the common units of the Operating Partnership, of which 57.09 % is held by holders of limited partnership interest in the Operating Partnership (“OP Units”) and 12.20 % is held by holders of the Operating Partnership’s long-term incentive plan units (“LTIP Units”), including 3.74 % which are not vested as of September 30, 2024. Certain amounts in prior year financial statement presentation have been reclassified to conform to the current year presentation. Real Estate Investments and Preferred Equity Investments The Company first analyzes an investment to determine if it is a variable interest entity (“VIE”) in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810: Consolidation and, if so, whether the Company is the primary beneficiary requiring consolidation of the entity. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests in a VIE that change in value with changes in the fair value of the VIE’s net assets. The Company continuously re-assesses at each level of the investment whether (i) the entity is a VIE, and (ii) the Company is the primary beneficiary of the VIE. If it was determined that an entity in which the Company holds an interest qualified as a VIE and the Company was the primary beneficiary, the entity would be consolidated. 10 Table of Contents If, after consideration of the VIE accounting literature, the Company has determined that an entity is not a VIE, the Company assesses the need for consolidation under all other provisions of ASC 810. These provisions provide for consolidation of majority-owned entities through a majority voting interest held by the Company providing control. In assessing whether the Company is in control of and requiring consolidation of the limited liability company and partnership venture structures, the Company evaluates the respective rights and privileges afforded each member or partner (collectively referred to as “member”). The Company’s member would not be deemed to control the entity if any of the other members has either (i) substantive kickout rights providing the ability to dissolve (liquidate) the entity or otherwise remove the managing member or general partner without cause or (ii) substantive participating rights in the entity. Substantive participating rights (whether granted by contract or law) provide for the ability to effectively participate in significant decisions of the entity that would be expected to be made in the ordinary course of business. The Company analyzes each investment that involves real estate acquisition, development, and construction to consider whether the investment qualifies as an investment in a real estate acquisition, development, and construction arrangement. The Company has evaluated its real estate investments as required by ASC 310-10 Receivables and concluded that no investments are considered an investment in a real estate acquisition, development, or construction arrangement. As such, the Company next evaluates if these investments are considered a security under ASC 320 Investments – Debt Securities . For investments that meet the criteria of a security under ASC 320 Investments – Debt Securities , except as noted regarding Note B of the Wayford at Pringle Loan Financing (refer to Note 6), the Company classifies each preferred equity investment as a held-to-maturity debt security as the Company has the intention and ability to hold the investment to maturity. The Company earns a fixed return on these investments which is included within income from preferred equity investments in its consolidated statements of operations. The Company evaluates the collectability of each preferred equity investment and estimates 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. The Company accounts for these investments as preferred equity investments in its consolidated balance sheets. For investments that do not meet the criteria of a security under ASC 320 Investments – Debt Securities , the Company has concluded that the characteristics and the facts and circumstances indicate that loan accounting treatment is appropriate. The Company recognizes interest income on its notes receivable on the accrual method unless a significant uncertainty of collection exists. If a significant uncertainty exists, interest income is recognized as collected. Costs incurred to originate its notes receivable are deferred and amortized using the effective interest method over the term of the related note receivable. The Company evaluates the collectability of each loan investment and estimates a provision for credit loss, as applicable. Refer to the CECL section of this Note for further information regarding CECL and the Company’s provision for credit losses. Significant Risks and Uncertainties 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. 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 held rates steady between July 2023 and September 2024 and reduced interest rates by 50-basis points in September 2024, 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. 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. 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. The Company continues to closely monitor the impact of economic volatility on all aspects of its business. Summary of Significant Accounting Policies Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the Securities and Exchange Commission (“SEC”) on March 12, 2024 for discussion of the Company’s significant accounting policies. During the nine months ended September 30, 2024, there were no material changes to these policies. 11 Table of Contents Interim Financial Information The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the Unites States of America (“GAAP”) for interim financial reporting, and the instructions to Form 10-Q and Article 10-1 of Regulation S-X. Accordingly, the financial statements for interim reporting do not include all the information and notes or disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for interim periods should not be considered indicative of the operating results for a full year. The balance sheet at December 31, 2023 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, 2023 contained in the Annual Report on Form 10-K as filed with the SEC on March 12, 2024. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update No. 2023-07 “Improvements to Reportable Segment Disclosures (Topic 280)” (“ASU 2023-07”). The amendments in ASU 2023-07 require additional disclosures regarding reportable segments, including a segment’s significant expenses on both an annual and interim basis. The amendments in ASU 2023-07 will be effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements unless it is impracticable to do so. The Company does not expect the adoption of ASU 2023-07 to have a material impact on its consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update No. 2023-09 “Improvements to Income Tax Disclosures (Topic 740)” (“ASU 2023-09”). The amendments in ASU 2023-09 require additional disclosure with respect to the effective tax rate reconciliation and information on income taxes paid. The amendments in ASU 2023-09 are effective for the Company for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact of adopting ASU 2023-09 on its financial disclosures. Note 3 – Acquisition of Real Estate and Additional Interests Acquisition of Villas at Huffmeister On March 25, 2024, the Company, through a 95 % owned joint venture entity, acquired a 294 -unit single-family residential community located in Houston, Texas known as Villas at Huffmeister. The purchase price of $ 41.2 million was funded with a $ 24.3 million senior loan assumption secured by Villas at Huffmeister, along with cash of $ 18.1 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions. Acquisition of Avenue at Timberlin Park On July 31, 2024, the Company acquired a 200 -unit single-family residential community located in Jacksonville, Florida known as Avenue at Timberlin Park. The Company has a full ownership interest in the community, and the purchase price of $ 33.8 million was funded with a $ 23.7 million senior loan secured by Avenue at Timberlin Park, along with cash of $ 12.9 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions. 12 Table of Contents Purchase Price Allocation The real estate acquisitions above have been accounted for as asset acquisitions. The purchase prices were allocated to the acquired assets and mortgage assumed based on their estimated fair values at the dates of acquisition. The following table summarizes the assets acquired and mortgage assumed at the acquisition dates for the Company’s acquisitions made during the nine months ended September 30, 2024 (amounts in thousands): ​ ​ ​ ​ ​ ​ Purchase ​ ​ Price ​ ​ ​ Allocation ​ Land ​ $ 12,702 ​ Building ​ ​ 48,394 ​ Building improvements ​ 1,314 ​ Land improvements ​ 10,288 ​ Furniture and fixtures ​ 1,335 ​ In-place leases ​ 1,754 ​ Total assets acquired (1) ​ $ 75,787 ​ ​ ​ ​ ​ Mortgage assumed ​ $ 27,440 ​ Fair value adjustment ​ ( 3,107 ) ​ Total liabilities assumed ​ $ 24,333 ​ (1) The $ 75.8 million of total assets acquired includes $ 0.8 million of acquisition expenses that have been capitalized as the acquisitions have been accounted for as asset acquisitions. ​ ​ Note 4 – Sale of Real Estate Assets Sale of Navigator Villas Prior to the sale of the property, and to effectuate a tax-deferred exchange under Section 1031 of the Code, the Company purchased its joint venture partner’s interest in Navigator Villas for $ 2.9 million, inclusive of estimated post-close adjustments. On August 7, 2024, the Company closed on the sale of Navigator Villas located in Pasco, Washington for a sale price of $ 36.4 million, subject to certain prorations and adjustments typical in such real estate transactions. After deductions for the payoff of existing mortgage indebtedness encumbering the property in the amount of $ 19.5 million, the purchase price of the joint venture partner’s interest, the payment of early extinguishment of debt costs, and closing costs and fees, the sale of Navigator Villas generated net proceeds of approximately $ 12.7 million and a gain on sale of approximately $ 10.0 million. The Company recorded a loss on extinguishment of debt of $ 0.1 million related to the sale. Sale of Consolidated Operating Units During the three months ended September 30, 2024, the Company closed on the following sales: five units in the Indy-Springfield portfolio, two units in the Peak JV 2 portfolio, and seven units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sales agreements. The fourteen units were sold for an aggregate of approximately $ 2.3 million, subject to certain prorations and adjustments typical in such real estate transactions, and generated net proceeds of approximately $ 2.2 million and a gain on sales of approximately $ 0.2 million. During the nine months ended September 30, 2024, the Company closed on the following sales: one unit in the ILE portfolio, seven units in the Indy-Springfield portfolio, nine units in the Peak JV 2 portfolio, and thirty-four units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sales agreements. The fifty-one units were sold for an aggregate of approximately $ 8.9 million, subject to certain prorations and adjustments typical in such real estate transactions, and generated net proceeds of approximately $ 8.4 million and a gain on sales of approximately $ 0.9 million. 13 Table of Contents Held for Sale At September 30, 2024, the Company classified an aggregate of 207 units as held for sale in its consolidated balance sheets, and for the three and nine months ended September 30, 2024, the Company recorded an impairment of $ 0.9 million and $ 2.1 million, respectively, related to held for sale units which is included in gain on sale and impairment of real estate investments, net in the consolidated statements of operations. The 207 units classified as held for sale are included in the following portfolios: 4 units of ILE, 41 units of Indy-Springfield, 46 units of Peak JV 2, and all 116 units of Peak JV 3. These units were identified based on submarket analysis and individual unit-level operational review. 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 Company’s consolidated balance sheets. ​ Note 5 - Investments in Real Estate As of September 30, 2024, the Company held twenty real estate investments, consisting of twelve consolidated operating investments and eight held through preferred equity and loan investments. The following tables provide summary information regarding the Company’s consolidated operating investments and preferred equity and loan investments. Consolidated Investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Ownership Operating Investment Name Location / Market Units (1) Interest ​ Avenue at Timberlin Park ​ Jacksonville, FL ​ 200 ​ 100 % Ballast ​ AZ / CO / WA ​ 84 ​ 95 % Golden Pacific ​ IN / KS / MO ​ 169 ​ 97 % ILE ​ TX / SE US ​ 481 ​ 95 % Indy-Springfield ​ IN / MO ​ 327 ​ 100 % Peak JV 2 ​ Various / TX ​ 587 ​ 80 % Peak JV 3 ​ Dallas-Fort Worth, TX ​ 116 ​ 56 % Savannah-84 ​ Savannah, GA ​ 84 ​ 100 % Villas at Huffmeister ​ Houston, TX ​ 294 ​ 95 % Wayford at Concord ​ Concord, NC ​ 150 ​ 83 % Yauger Park Villas ​ Olympia, WA ​ 80 ​ 95 % Total Operating Units ​ 2,572 ​ ​ ​ ​ ​ ​ ​ ​ ​ Development Investment Name ​ ​ ​ ​ ​ ​ ​ Abode Wendell Falls ​ Wendell, NC ​ 170 ​ 100 % Total Development Units ​ ​ ​ 170 ​ ​ ​ Total Units ​ ​ ​ 2,742 ​ ​ ​ (1) Total operating units includes an aggregate of 207 units classified as held for sale, with such units included in the following portfolios: 4 units of ILE, 41 units of Indy-Springfield, 46 units of Peak JV 2, and all 116 units of Peak JV 3. ​ Depreciation expense was $ 4.1 million and $ 4.1 million, and $ 12.4 million and $ 12.1 million, for the three and nine months ended September 30, 2024 and 2023, 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 $ 0.8 million and $ 1.3 million for the three and nine months ended September 30, 2024, respectively. There was no amortization expense related to in-place leases during 2023. 14 Table of Contents Preferred Equity and Loan Investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actual / ​ ​ ​ ​ Planned ​ ​ ​ ​ Number of Lease-up Investment Name Location / Market Units The Woods at Forest Hill (1) ​ Forest Hill, TX ​ 18 Willow Park Willow Park, TX 58 The Cottages at Myrtle Beach ​ Myrtle Beach, SC ​ 294 The Cottages of Port St. Lucie ​ Port St. Lucie, FL ​ 286 Chandler ​ Chandler, AZ ​ 208 Wayford at Innovation Park Charlotte, NC 210 Wayford at Pringle (2) ​ Charlotte, NC ​ 102 Total Lease-up Units ​ 1,176 ​ ​ ​ ​ ​ Development Investment Name ​ ​ ​ ​ Indigo Cove ​ Bluffton, SC ​ 82 Total Development Units ​ ​ ​ 82 Total Units ​ ​ ​ 1,258 (1) The Woods at Forest Hill unit count decreased from 76 units at December 31, 2023 to 18 units at September 30, 2024 resulting from the sales of 58 units during the nine months ended September 30, 2024. Proceeds from the sales of these units were used to fully pay off the Company’s loan investment, and partially redeem the Company’s preferred equity investment, in The Woods at Forest Hill. Refer to Note 6 and Note 7 for further information. (2) Wayford at Pringle is a loan investment for which the Company disburses loan proceeds to the borrower for unit acquisitions upon construction completion. Of the total 102 build-to-rent units that are to be acquired, construction of 85 units was completed during the nine months ended September 30, 2024 for which the Company provided the borrower with loan proceeds for their acquisition. The Company estimates that all units will be completed and acquired, and its loan commitment fully funded, by the end of 2024. Refer to Note 6 for further information. ​ ​ 15 Table of Contents Note 6 – Notes and Interest Receivable Following is a summary of the notes and accrued interest receivable due from loan investments at September 30, 2024 and December 31, 2023 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, Investment Name 2024 2023 Notes Receivable ​ ​ ​ ​ ​ ​ The Woods at Forest Hill (1) ​ $ — ​ $ 8,284 Wayford at Pringle ​ 24,554 ​ — Willow Park ​ 9,400 ​ 9,400 Total notes receivable ​ $ 33,954 ​ $ 17,684 ​ ​ ​ ​ ​ ​ ​ Accrued Interest Receivable ​ ​ ​ ​ The Woods at Forest Hill (1) ​ $ — ​ $ 94 Wayford at Pringle ​ 838 ​ — Willow Park ​ 33 ​ 35 Total accrued interest receivable ​ $ 871 ​ $ 129 Total notes and accrued interest receivable ​ $ 34,825 ​ $ 17,813 Allowance for credit losses ​ ( 114 ) ​ ( 16 ) Total, net ​ $ 34,711 ​ $ 17,797 (1) In August 2024, the Company’s loan investment in The Woods at Forest Hill was paid off in full, including any accrued but unpaid interest amounts. Refer to The Woods at Forest Hill Loan Financing disclosure below for further information. Allowance for Credit Losses The provision for credit losses of the Company’s loan investments at September 30, 2024 and December 31, 2023 are summarized in the table below (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ ​ 2024 ​ ​ 2023 Beginning balances, net as of January 1, 2024 and 2023, respectively ​ $ 16 ​ $ — Provision for credit losses on pool of assets, net (1) ​ ​ 98 ​ ​ 16 Allowance for credit losses, net, end of period ​ $ 114 ​ $ 16 (1) 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 provision for credit losses during the nine months ended September 30, 2024 was attributable to the addition of one investment to the pool of assets and an increase in the trailing twelve-month historical default rate. The following table is a summary of the interest income from loan investments for the three and nine months ended September 30, 2024 (amounts in thousands). The Company did no t record any interest income from loan investments during the corresponding periods ended September 30, 2023 as it held no loan investments in 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended Investment Name ​ September 30, 2024 ​ September 30, 2024 The Woods at Forest Hill (1) ​ $ 7 ​ $ 254 Wayford at Pringle ​ 601 ​ 1,118 Willow Park ​ 122 ​ 363 Total ​ $ 730 ​ $ 1,735 (1) In August 2024, the Company’s loan investment in The Woods at Forest Hill was paid off in full, including any accrued but unpaid interest amounts. Refer to The Woods at Forest Hill Loan Financing disclosure below for further information. 16 Table of Contents Peak Housing Financing Prior to 2024, the Company provided a mezzanine loan to the portfolio owner in Peak JV 3, which is owned through a joint venture between the Company and the operating partnership of Peak Housing REIT (the “Peak REIT OP”). The entity through which the Company provided the loan (the lender-entity) and the entity to which the loan was provided (the property owner) consolidate into the Company’s financial statements. As such, the loan receivable balance and the loan payable balance, and the loan interest income and loan interest expense attributable to the Company, are eliminated through consolidation on the consolidated balance sheets and statements of operations, respectively. The Company (as lender entity) recognizes Peak REIT OP’s portion of interest expense on the loan as income and this amount is reflected in net income (loss) attributable to common stockholders in the Company’s consolidated statements of operations. The mezzanine loan was to mature on June 30, 2024; however, on May 22, 2024, the property owner delivered written notice to the Company of its intention to exercise the loan’s final six-month extension option, extending the maturity date to December 30, 2024. The loan can be prepaid without penalty. At December 31, 2023, the outstanding balance of the loan provided by the Company was $ 15.9 million. During the nine months ended September 30, 2024, proceeds from the sales of 34 units in the Peak JV 3 portfolio (refer to Note 4 for further information) have been used to reduce the outstanding balance of the loan to $ 11.7 million at September 30, 2024. ​ Wayford at Pringle Loan Financing On January 10, 2024, the Company entered into an agreement to provide a loan in the maximum aggregate amount up to $ 30.1 million (the “Pringle Loan”) to an unaffiliated, third-party borrower to acquire 102 build-to-rent, single-family residential units in Charlotte, North Carolina to be known as Wayford at Pringle. The project is currently under development, and the Company will disburse loan proceeds to the borrower for unit acquisitions as construction is completed. The Pringle Loan is comprised of two notes as follows: Note A in the maximum principal amount up to $ 22.3 million and Note B in the maximum principal amount up to $ 7.8 million. Note B has certain conversion options that require the consent of both parties before such options can be exercised; neither party has unilateral control to enforce a conversion. The Company has evaluated both notes and concluded that loan accounting treatment is appropriate for Note A, whereas Note B, due to the conversion options, meets the criteria of a debt security and is considered as available for sale. The Company records both notes in notes and accrued interest receivable, net in its consolidated balance sheets, and the interest income earned on both notes is recorded in interest income from loan investments in its consolidated statements of operations. ​ Note A and Note B both have an initial maturity of January 12, 2026 and contain four (4) six-month extension options subject to certain conditions. Note A bears interest on the amount drawn at the one-month Secured Overnight Financing Rate (“SOFR”) plus 4.50 % through initial maturity, and if extended, such rate becomes subject to a 5.31 % rate floor. Note A has regular monthly payments that are interest-only during the term of the loan, and no prepayment of Note A, in part or in whole, can be made prior to prepayment of Note B subject to certain conditions. On Note B, interest shall accrue on the amount drawn at a rate of 15.00 % per annum, compounded monthly, with outstanding principal and accrued interest amounts due upon maturity. Note B can be prepaid in part or in whole subject to minimum interest. As of September 30, 2024, construction was completed on 85 of the total 102 units, and the Company had funded $ 16.8 million of Note A and fully funded the $ 7.8 million of Note B. There were no unrealized gains or losses associated with Note B as of September 30, 2024 as the Company determined that the $ 7.8 million face value of Note B represents its fair value at such measurement date. ​ The Woods at Forest Hill Loan Financing In December 2023, the Company assumed an $ 8.3 million senior loan (the “Woods Loan”) made to an unaffiliated third-party borrower for 76 build-to-rent, single family residential units in Forest Hill, Texas. The Woods Loan investment was in addition to the Company’s existing preferred equity investment in The Woods at Forest Hill. The Woods Loan borrower is currently in the process of selling the individual units, and during the nine months ended September 30, 2024, the borrower sold 58 of the 76 units that collateralized the Company’s loan and preferred equity investments in The Woods at Forest Hill. Proceeds from the sales of these units were used to fully pay off the Woods Loan investment made by the Company in the aggregate amount of $ 8.5 million, which included principal investment of $ 8.3 million and accrued interest of $ 0.2 million, with the final payment received in August 2024. Following the payoff of the Woods Loan, remaining available proceeds from the unit sales were used to partially redeem the Company’s preferred equity investment in The Woods at Forest Hill (refer to Note 7 for further information). 17 Table of Contents Willow Park Loan Financing In October 2023, the Company provided a $ 9.4 million senior loan (the “Willow Loan”) to an unaffiliated third-party borrower for 58 build-to-rent, single-family residential units. The Willow Loan was to initially mature on October 28, 2024; however, on September 30, 2024, the borrower delivered written notice to the Company of its intention to exercise the first of the Willow Loan’s two six-month extension options, extending the maturity date to April 28, 2025. Following the initial maturity date, the Willow Loan interest rate will increase from a fixed rate of 5.08 % per annum to a fixed rate of 7.50 % per annum through the first extension period, with regular monthly payments remaining interest-only. The Willow Loan can be prepaid in part, subject to a minimum payment, or in whole without penalty. ​ Note 7 – Preferred Equity Investments The carrying amount of the Company’s preferred equity investments at September 30, 2024 and December 31, 2023 is summarized in the table below (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Investment Name 2024 2023 Chandler ​ $ 15,000 ​ $ 15,000 Indigo Cove ​ ​ 3,004 ​ ​ — Peak Housing (1) ​ ​ — ​ ​ 10,663 The Cottages at Myrtle Beach ​ 17,913 ​ 17,913 The Cottages of Port St. Lucie ​ 18,785 ​ 18,785 The Woods at Forest Hill (2) ​ 5,165 ​ 7,270 Wayford at Innovation Park ​ 13,400 ​ 13,400 Total ​ $ 73,267 ​ $ 83,031 Allowance for credit losses ​ ( 296 ) ​ ( 180 ) Total, net ​ $ 72,971 ​ $ 82,851 (1) In September 2024, the Company’s preferred equity investment in Peak Housing was fully redeemed. Refer to the Peak Housing Interests disclosure below for further information. (2) The Woods at Forest Hill carrying amount at September 30, 2024 includes amounts related to Willow Park, a preferred equity investment that the Company was redeemed out of in October 2023. Refer to the The Woods at Forest Hill Interests disclosure below for further information. Allowance for Credit Losses The provision for credit losses of the Company’s preferred equity investments at September 30, 2024 and December 31, 2023 are summarized in the table below (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2024 ​ 2023 Beginning balances, net as of January 1, 2024 and 2023, respectively ​ $ 180 ​ $ 22 Provision for credit losses on pool of assets, net (1) ​ 116 ​ 158 Allowance for credit losses, net, end of period ​ $ 296 ​ $ 180 (1) 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 provision for credit losses during the nine months ended September 30, 2024 was primarily attributable to an increase in the trailing twelve-month historical default rate. At September 30, 2024, the Company, through wholly-owned subsidiaries of the Operating Partnership, had outstanding preferred equity investments in six joint ventures which are classified as held to maturity debt securities as the Company has the intention and ability to hold the investments to maturity. The Company earns a fixed return on these investments, which is included within income from preferred equity investments in its consolidated statements of operations. Each joint venture’s purpose is to develop or operate a portfolio of residential units. 18 Table of Contents The following table summarizes the Company’s income from preferred equity investments for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, Investment Name 2024 2023 2024 2023 Chandler ​ $ 518 ​ $ — ​ $ 1,542 ​ $ — Indigo Cove ​ ​ 102 ​ ​ — ​ ​ 104 ​ ​ — Peak Housing (1) ​ ​ 94 ​ ​ 303 ​ ​ 523 ​ ​ 1,087 The Cottages at Myrtle Beach ​ 664 ​ 664 ​ 1,977 ​ 1,970 The Cottages at Warner Robins (2) ​ — ​ 491 ​ — ​ 1,457 The Cottages of Port St. Lucie ​ 696 ​ 696 ​ 2,074 ​ 2,066 The Woods at Forest Hill ​ 219 ​ 201 ​ 814 ​ 464 Wayford at Innovation Park ​ ​ 428 ​ ​ 428 ​ 1,274 ​ 1,191 Willow Park (2) ​ — ​ 176 ​ — ​ 414 Total income from preferred equity investments (3) ​ $ 2,721 ​ $ 2,959 ​ $ 8,308 ​ $ 8,649 (1) In September 2024, the Company’s preferred equity investment in Peak Housing was fully redeemed. Refer to the Peak Housing Interests disclosure below for further information. (2) The Company’s preferred equity investments in The Cottages at Warner Robins and Willow Park were redeemed in December 2023 and October 2023, respectively. (3) Total income from preferred equity investments includes both current and accrued income amounts. The accrued portion of the total income was $ 2.6 million and $ 2.7 million, and $ 7.8 million and $ 7.6 million, for the three and nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024 and December 31, 2023, the Company had $ 19.9 million and $ 13.7 million, respectively, of total accrued preferred equity income, which is recorded in accounts receivable, prepaids and other assets, net in its consolidated balance sheets. Indigo Cove Interests On June 27, 2024, the Company entered into a joint venture agreement with an unaffiliated third party (the “Indigo JV”) to develop approximately 82 build-to-rent, single-family residential units in Bluffton, South Carolina. The Company made a commitment to invest $ 5.3 million for preferred equity interests in the Indigo JV, of which $ 3.0 million had been funded as of September 30, 2024. The Company earns an accrued return on its outstanding capital contributions at a rate of 17.0 % per annum compounded monthly, subject to a minimum return, with preferred return payments commencing in December 2025 contingent upon the property generating cash flows in excess of operating costs. The Indigo JV is required to redeem the Company’s preferred equity interests plus any accrued preferred return on the date the construction loan (addressed below) is repaid or refinanced, or earlier upon the occurrence of certain events. In conjunction with the Indigo Cove development, the Indigo Cove property owner, which is owned by the Indigo JV, entered into a $ 22.0 million construction loan, of which $ 0.6 million was outstanding as of September 30, 2024. The loan bears interest on the amount drawn based on one-month Term SOFR plus 5.55 %, subject to a 9.87 % rate floor, with interest-only monthly payments during the term of the loan. The loan matures on June 18, 2026 and is secured by the fee simple interest in the Indigo Cove development. The loan contains two (2) six-month extension options, subject to certain conditions, and can be prepaid without penalty. ​ 19 Table of Contents Peak Housing Interests Prior to 2024, the Company made a preferred equity investment in the Peak REIT OP in the aggregate amount of $ 20.3 million which was collateralized by 648 single-family residential units (“Peak Housing”). Peak REIT OP could sell the units collateralizing the Company’s preferred equity investment, though Peak REIT OP was required to distribute any net sale proceeds to the Company, after consideration for partnership operating expenses and reserve requirements, until the Company’s full preferred equity investment had been repaid in full, subject to certain rate of return requirements and including any accrued but unpaid preferred returns. During 2023, Peak REIT OP sold 196 of the 648 units that collateralized the Company’s investment, with the proceeds from the sales used to partially redeem the Company’s preferred equity investment. At December 31, 2023, the Company’s outstanding preferred equity principal investment in Peak REIT OP was $ 10.6 million. During the nine months ended September 30, 2024, Peak REIT OP continued to sell units that collateralized the Company’s investment. Proceeds from the sales were used by Peak REIT OP to fully redeem the Company’s preferred equity investment in the aggregate amount of $ 11.2 million, which included the Company’s remaining principal investment of $ 10.6 million and accrued preferred return of $ 0.6 million, with the final redemption payment received in September 2024. The Cottages of Port St. Lucie Interests The Company is party to a joint venture agreement with an unaffiliated third party (the “Cottages St. Lucie JV”) that developed 286 build-to-rent, single-family residential units in Port St. Lucie, Florida. The Company made an $ 18.8 million preferred equity investment in the Cottages St. Lucie JV, and the joint venture is required to redeem the Company’s investment, plus any accrued but unpaid preferred returns, on the date the construction loan is due and payable or earlier upon the occurrence of certain events. The construction loan was to mature on August 26, 2024; however, The Cottages of Port St. Lucie property owner, which is owned by the Cottages St. Lucie JV, executed an amendment to the construction loan agreement, which included revising the maturity date to November 26, 2024. The construction loan can be prepaid without penalty and has regular monthly payments that will remain interest-only during the extension period. The Woods at Forest Hill Interests The Company is party to a joint venture agreement with an unaffiliated third party (the “Woods JV”) for 76 build-to-rent, single-family residential units in Forest Hill, Texas. The Company made a $ 5.6 million preferred equity investment in the Woods JV, which preceded the senior loan investment made by the Company in The Woods at Forest Hill (the Woods Loan - refer to Note 6 for further information). The Woods Loan borrower is currently in the process of selling the individual units, and during the nine months ended September 30, 2024, the borrower sold 58 of the 76 units that collateralized the Company’s preferred equity and loan investments in The Woods at Forest Hill. Proceeds from the sales of these units were first used to fully pay off the Woods Loan investment made by the Company, with remaining available proceeds used to partially redeem the Company’s preferred equity investment in the Woods JV in the aggregate amount of $ 3.8 million, which included principal investment of $ 2.1 million, accrued preferred return of $ 1.1 million, and a minimum multiple payment of $ 0.6 million. At September 30, 2024, the Company’s outstanding preferred equity investment in the Woods JV was $ 3.5 million, with a remaining 18 units as collateral underlying the Company’s investment. In addition, The Woods at Forest Hill units, along with other Peak REIT OP investments, serve as collateral for the Company’s previous preferred equity investment in Willow Park. In October 2023, the Company’s investment in Willow Park was redeemed by the Willow Park joint venture, with the Company receiving $ 2.9 million of its $ 4.6 million principal investment. The remaining $ 1.7 million of the Company’s preferred equity investment in Willow Park, together with the Company’s $ 3.5 million of outstanding preferred equity investment in the Woods JV, results in the Company’s preferred equity investment carrying value of $ 5.2 million in The Woods at Forest Hill at September 30, 2024. Peak REIT OP has guaranteed the full return of the Company’s investments in both The Woods at Forest Hill and Willow Park. 20 Table of Contents Note 8— Revolving Credit Facilities The outstanding balances on the revolving credit facilities at September 30, 2024 and December 31, 2023 are as follows (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, Revolving Credit Facilities 2024 2023 Amended DB Credit Facility ​ $ 85,000 ​ $ 50,000 Amended ILE Sunflower Credit Facility ​ 20,000 ​ 20,000 Total ​ $ 105,000 ​ $ 70,000 ​ Amended Deutsche Bank Credit Facility (“Amended DB Credit Facility”) On December 29, 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 provides for a revolving loan with a maximum commitment amount of $ 150 million. Borrowings under the Amended DB Credit Facility are 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 bear interest on the amount drawn at Term SOFR plus 2.80 %, and borrowings can be prepaid without premium or penalty. The interest rate on outstanding borrowings was 8.00 % at September 30, 2024. The Amended DB Credit Facility matures on April 6, 2025 and contains a one-year extension option, subject to certain conditions. The Amended DB Credit Facility contains certain financial and operating covenants, including maximum leverage ratio, minimum debt yield and minimum debt service coverage ratios. At September 30, 2024, the Amended DB Credit Facility was drawn at $ 85 million and the Company was in compliance with all covenants under the Amended DB Credit Facility. The availability of borrowings under the Amended DB Credit Facility at September 30, 2024 was approximately $ 13 million and is based on the collateral and compliance with various ratios related to those assets. Amended ILE Sunflower Credit Facility On June 27, 2023, the Company, along with its unaffiliated joint venture partner, ILE, entered into an amended and restated credit facility with Sunflower Bank, N.A. (the “Amended ILE Sunflower Credit Facility”). The Amended ILE Sunflower Credit Facility transitioned the interest rate on borrowings from LIBOR to a SOFR-based rate. There were no other material changes in terms from the previous credit facility. The Amended ILE Sunflower Credit Facility provided for a revolving loan with an initial commitment amount of $ 20 million, which commitment contained an accordion feature to a maximum total commitment of up to $ 50 million. The Amended ILE Sunflower Credit Facility, along with three other separate non-revolving credit facilities (refer to Note 9 for further information), was used in the financing of acquisitions of single-family residential units. Borrowings under the Amended ILE Sunflower Credit Facility bore interest at Term SOFR plus 3.11 %, subject to a rate floor, and could be prepaid without penalty or premium. The interest rate on outstanding borrowings was 7.97 % at September 30, 2024. Prior to the full payoff of the Amended ILE Sunflower Credit Facility in October 2024 (refer to the ILE Financing disclosure in Note 15 for further information), the Amended ILE Sunflower Credit Facility was to mature on December 27, 2024 and contained certain financial and operating covenants, including a minimum fixed charge coverage ratio. At September 30, 2024, the Company was in compliance with all covenants under the Amended ILE Sunflower Credit Facility and the initial commitment was fully drawn at $ 20 million. A principal of ILE had guaranteed the obligations under the Amended ILE Sunflower Credit Facility and the joint venture had pledged certain assets as collateral. ​ 21 Table of Contents Note 9 – Mortgages Payable The following table summarizes certain information as of September 30, 2024 and December 31, 2023 with respect to the Company’s senior mortgage indebtedness (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Principal As of September 30, 2024 ​ ​ September 30, ​ December 31, ​ ​ ​ Interest-only ​ ​ Property 2024 2023 Interest Rate through date Maturity Date ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed Rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Avenue at Timberlin Park ​ $ 23,660 ​ $ — ​ 5.47 % August 2027 ​ August 1, 2029 ILE (1) ​ ​ 28,653 ​ ​ 29,680 ​ 4.05 % (2) ​ (1) Navigator Villas (3) ​ ​ — ​ ​ 19,702 ​ ​ ​ ​ ​ ​ Villas at Huffmeister ​ ​ 27,440 ​ ​ — ​ 3.56 % October 2024 ​ October 1, 2029 Yauger Park Villas (4) ​ ​ 14,123 ​ ​ 14,350 ​ 4.86 % (2) ​ April 1, 2026 Total Fixed Rate ​ $ 93,876 ​ $ 63,732 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Floating Rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Wayford at Concord (5) ​ $ 32,973 ​ $ 32,973 ​ 4.73 % May 2027 ​ May 1, 2029 Total Floating Rate ​ $ 32,973 ​ $ 32,973 ​ ​ ​ ​ ​ ​ Total ​ $ 126,849 ​ $ 96,705 ​ ​ ​ ​ ​ ​ Fair value adjustments ​ ​ ( 2,482 ) ​ ​ 916 ​ ​ ​ ​ ​ ​ Deferred financing costs, net ​ ​ ( 1,838 ) ​ ​ ( 951 ) ​ ​ ​ ​ ​ ​ Total mortgages payable ​ $ 122,529 ​ $ 96,670 ​ ​ ​ ​ ​ ​ (1) 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 $ 6.0 million at a fixed rate of 3.50 %, the second credit agreement (“CA2”) has a balance of $ 18.2 million at a fixed rate of 3.75 %, and the third credit agreement (“CA3”) has a balance of $ 4.5 million at a fixed rate of 6.00 % . CA1 and CA2 both mature in 2026; CA3 matures in 2028. (2) The loan requires monthly payments of principal and interest. (3) The Company sold Navigator Villas in August 2024. (4) The principal balance includes a $ 9.8 million senior loan at a fixed rate of 4.81 % and a $ 4.3 million supplemental loan at a fixed rate of 4.96 % . (5) The Wayford at Concord loan bears interest at the 30-day average SOFR plus 2.23 % . In September 2024, the 30-day average SOFR in effect was 5.35 % . SOFR rate is subject to a 2.50 % rate cap through April 2025. Refer to Note 11 for further information. Deferred financing costs 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. Fair value adjustments of debt The Company records a fair value adjustment based upon the fair value of the loans on the date they were assumed in conjunction with acquisitions. The fair value adjustments are being amortized to interest expense over the remaining life of the loans. 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. The Company had $ 0.1 million of loss on extinguishment of debt costs and no debt modification costs for both the three and nine months ended September 30, 2024. The Company had no loss on extinguishment of debt or debt modification costs during 2023. 22 Table of Contents Debt maturities At September 30, 2024, contractual principal payments for the five subsequent years and thereafter are as follows (amounts in thousands): ​ ​ ​ ​ ​ Year Total 2024 (October 1–December 31) ​ $ 413 2025 ​ 1,859 2026 ​ 37,318 2027 ​ 1,107 2028 ​ 5,702 Thereafter ​ 80,450 ​ ​ $ 126,849 Add: Unamortized fair value debt adjustment ​ ( 2,482 ) Subtract: Deferred financing costs, net ​ ( 1,838 ) Total mortgages payable ​ $ 122,529 ​ The net book value of real estate assets providing collateral for these above borrowings, including the revolving credit facilities (refer to Note 8 for further information), was $ 403.9 million at September 30, 2024. 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. These exceptions generally include fraud or a material misrepresentation, misstatement or omission by the borrower, intentional or grossly negligent conduct by the borrower that harms the property or results in a loss to the lender, filing of a bankruptcy petition by the borrower, either directly or indirectly, and certain environmental liabilities. In addition, upon the occurrence of certain events, such as fraud or filing of a bankruptcy petition by the borrower, the Company or our joint ventures would be liable for the entire outstanding balance of the loan, all interest accrued thereon and certain other costs, including penalties and expenses. The mortgage loans have a period where a prepayment fee or yield maintenance would be required. ​ 23 Table of Contents Note 10 – Fair Value of Financial Instruments Fair Value Measurements For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price the Company would expect to receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date under current market conditions. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions; preference is given to observable inputs. In accordance with GAAP and as defined in ASC Topic 820: Fair Value Measurement, these two types of inputs create the following fair value hierarchy: ● Level 1: Quoted prices for identical instruments in active markets ● Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable ● Level 3: Significant inputs to the valuation model are unobservable If the inputs used to measure the fair value fall within different levels of the hierarchy, the fair value is determined based upon the lowest level input that is significant to the fair value measurement. Whenever possible, the Company uses quoted market prices to determine fair value. In the absence of quoted market prices, the Company uses independent sources and data to determine fair value. Fair Value of Financial Instruments At September 30, 2024 and December 31, 2023, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, 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. The carrying values and fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 are summarized in the table below (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2024 ​ December 31, 2023 ​ ​ Carrying Value Fair Value Carrying Value Fair Value Assets ​ ​ ​ ​ Note receivable (available for sale) (1) Level 3 ​ $ 7,800 ​ $ 7,800 ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ Mortgages payable (2) Level 2 ​ $ 124,367 ​ $ 124,052 ​ $ 97,621 ​ $ 93,046 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents Note B of the Pringle Loan which, due to conversion options, meets the criteria of a debt security and is considered as available for sale (refer to Note 6 for further information). The fair value of the note receivable is estimated by modeling the expected contractual cash flows required under the instrument and discounting such cash flows back to their present value using estimates of current market rates. As the estimated current market rates did not substantially differ from the discount rates originally applied, the carrying amount of the note receivable approximates its fair value. There were no purchases, sales, issuances, or settlements during the nine months ended September 30, 2024 other than the $ 7.8 million initial funding of the note in the first quarter 2024. (2) The carrying values of the mortgages payable include ($ 2,482 ) and $ 916 of unamortized fair value debt adjustments and exclude $ 1,838 and $ 951 of deferred financing costs at September 30, 2024 and December 31, 2023, respectively. The fair value of mortgages payable is estimated based on interest rates obtained from third party lenders for similar types of borrowing arrangements. 24 Table of Contents 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, 2024 are summarized below (amounts in thousands). The Company had no operating units classified as held for sale during the corresponding periods ended September 30, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, 2024 ​ September 30, 2024 Investment in operating units classified as held for sale (Level 3) ​ ​ ​ ​ Pre-impairment amount ​ $ 10,944 ​ $ 12,930 Total impairments (1) ​ ( 948 ) ​ ( 2,079 ) Fair value (2) ​ $ 9,996 ​ $ 10,851 (1) Impairment amounts are included in gain on sale and impairment of real estate investments, net in the Company’s consolidated statements of operations. (2) 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 Company’s consolidated balance sheets. The estimated fair value is based on discussions with third party brokers, historical sales experience, and current market conditions. Derivative Financial Instruments ​ The estimated fair values of derivative financial instruments are valued using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and volatility. The fair value of interest rate caps is determined using the market-standard methodology of discounting the future expected cash receipts which would occur if floating interest rates rise above the strike rate of the caps. The floating interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The inputs used in the valuation of interest rate caps and swaps fall within Level 2 of the fair value hierarchy. ​ Note 11 – Derivative Financial Instruments The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash payments principally related to the Company’s borrowings. The Company’s objectives in using interest rate derivative financial instruments are to add stability to interest expense and to manage the Company’s exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate caps and swaps as part of its interest rate risk management strategy. Interest rate caps involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. Interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has not designated any of the interest rate derivatives as hedges. Although these derivative financial instruments were not designated or did not qualify for hedge accounting, the Company believes these derivative financial instruments mitigate increases in interest rates. The Company does not use derivative financial instruments for trading or speculative purposes. 25 Table of Contents At September 30, 2024, 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 $ 128.5 million of the Company’s debt. The following table summarizes the Company’s derivative financial instruments at September 30, 2024 ($ in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest Rate Caps Interest Rate Swaps Notional balance ​ $ 145,473 ​ $ 10,500 Number of instruments ​ 2 ​ 2 Earliest maturity date ​ May 2025 ​ March 2026 Latest maturity date ​ May 2025 ​ August 2028 ​ The table below presents the classification and fair value of the Company’s derivative financial instruments on the consolidated balance sheets at September 30, 2024 and December 31, 2023 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging ​ Fair Values of Derivative Instruments instruments under ASC 815-20 Balance Sheet Location September 30, 2024 December 31, 2023 Interest rate caps Accounts receivable, prepaids and other assets ​ $ 1,438 ​ $ 1,934 Interest rate swaps Accounts receivable, prepaids and other assets ​ 223 ​ 483 ​ The table below presents the classification and effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Effect of Derivative Instruments on the ​ ​ ​ Statements of Operations Derivatives not designated as hedging ​ Location of Gain (Loss) ​ Three Months Ended September 30, ​ Nine Months Ended September 30, instruments under ASC 815-20 Recognized in Income ​ 2024 2023 2024 2023 Interest rate caps Interest expense, net ​ $ ( 1,578 ) ​ $ ( 792 ) ​ $ ( 3,184 ) ​ $ ( 1,477 ) Interest rate swaps Interest expense, net ​ ( 310 ) ​ ​ 94 ​ ( 260 ) ​ 141 ​ ​ Note 12 – Related Party Transactions Management Agreement In October 2022, the Company entered into a management agreement (the “Management Agreement”) with the Operating Partnership and Bluerock Homes Manager, LLC (the “Manager”), which is an affiliate of Bluerock Real Estate, LLC (“BRE”), pursuant to which the Manager provides for the day-to-day management of the Company’s operations. Pursuant to the terms of the Management Agreement, the Manager provides the Company with a management team and appropriate support personnel to provide such management services to the Company. The Management Agreement requires the Manager to manage the Company’s business affairs under the supervision and direction of the Company’s board of directions (the “Board”). Specifically, the Manager is responsible for (i) the selection, purchase and sale of the Company’s portfolio investments, (ii) the Company’s financing activities, and (iii) providing the Company with advisory services, in each case in conformity with the investment guidelines and other policies approved and monitored by its Board. The Management Agreement expires on October 6, 2024 and will be automatically renewed for a one-year term on each anniversary date thereafter unless earlier terminated or not renewed in accordance with the terms thereof. The Company pays the Manager a base management fee (the “base management fee”) in an amount equal to 1.50 % of the Company’s New Stockholders’ Equity (as defined in the Management Agreement) per year, as well as an incentive fee (the “incentive fee”) with respect to each calendar quarter (or part thereof that the Management Agreement is in effect) in arrears. 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. The Management Agreement provides that (i) the base management fee and the incentive fee shall be allocated and payable as one half ( 50 %) in C-LTIP Units 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. 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. 26 Table of Contents For the three and nine months ended September 30, 2024 and 2023, the Company recorded base management fees of $ 2.4 million and $ 2.0 million, and $ 6.6 million and $ 5.9 million, respectively. Commencing with the base management fee for the first quarter 2024, the Company paid, and expects to continue to pay, the base management fee to the Manager as one half ( 50 )% in C-LTIP Units and the remainder in cash; prior to the first quarter 2024, the Company paid the base management fee to the Manager entirely through the issuance of C-LTIP Units. There have been no incentive fee expenses incurred during 2024 or the year ended December 31, 2023. For the three and nine months ended September 30, 2024 and 2023, the Company recorded operating expense reimbursements of $ 1.0 million and $ 0.4 million, and $ 3.3 million and $ 1.1 million, respectively. Commencing with the operating expense reimbursement for the first quarter 2024, the Company paid, and expects to continue to pay, the operating expense reimbursement to the Manager entirely in cash; prior to the first quarter 2024, the Company paid the operating expense reimbursement to the Manager entirely through the issuance of C-LTIP Units. The operating expense reimbursement for each of the first three quarters of 2024 included an average reimbursement to the Manager of $ 0.7 million for accounting and legal services. Prior to the fourth quarter 2023, the Manager elected to not seek reimbursement for accounting and legal services during the Company’s first year of operations. In addition, for the three and nine months ended September 30, 2024 and 2023, the Company recorded direct expense reimbursements of $ 0.1 million and $ 0.1 million, and $ 0.3 million and $ 0.3 million, respectively, which were paid to the Manager in cash. Both the operating and direct expense reimbursements were recorded as part of general and administrative expenses in the Company’s consolidated statements of operations. The table below presents the related party amounts payable to the Manager at September 30, 2024 and December 31, 2023 pursuant to the terms of the Management Agreement (amounts in thousands). The Company records these payables in due to affiliates in its consolidated balance sheets. ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, Amounts payable to the Manager under the Management Agreement 2024 2023 Base management fee ​ $ 2,377 ​ $ 2,048 Operating and direct expense reimbursements ​ 1,140 ​ 1,365 Offering expense reimbursements ​ ​ 98 ​ ​ 96 Total amounts payable to the Manager ​ $ 3,615 ​ $ 3,509 ​ At September 30, 2024 and December 31, 2023, the Company had no receivables due from any related parties. Selling Commissions and Dealer Manager Fees In conjunction with the offering of the Company’s Series A Preferred Stock (refer to Note 13 for further information), the Company engaged a related party as dealer manager, and 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, 2024, the Company incurred $ 6.1 million in selling commissions and discounts and $ 2.6 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 for offering costs of $ 0.6 million in conjunction with the offering of Series A Preferred Stock during the nine months ended September 30, 2024. The selling commissions, dealer manager fees, discounts and reimbursements for offering costs were recorded as a reduction to the proceeds of the offering. Note 13 – Stockholders’ Equity and Redeemable Preferred Stock Net Income (Loss) Per Common Share Basic and diluted net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders, less dividends on restricted stock, LTIP Units and C-LTIP Units expected to vest, by the weighted average number of common shares outstanding for the period. Net income (loss) attributable to common stockholders is computed by adjusting net income (loss) for the non-forfeitable dividends paid on non-vested restricted stock, LTIP Units and C-LTIP Units. The Company considers the requirements of the two-class method when preparing earnings per share. The Company has two classes of common stock outstanding: Class A common stock, $ 0.01 par value per share, and Class C common stock, $ 0.01 par value per share. 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. 27 Table of Contents The following table reconciles the components of basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands, except share and per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2024 2023 2024 2023 Net income (loss) ​ $ 3,547 ​ $ ( 3,618 ) ​ $ ( 4,794 ) ​ $ ( 10,075 ) Less preferred stock dividends ​ ​ ( 1,412 ) ​ ​ ( 12 ) ​ ​ ( 2,227 ) ​ ​ ( 12 ) Less preferred stock accretion ​ ​ — ​ ​ — ​ ​ ( 181 ) ​ ​ — Less net income / addback net loss attributable to noncontrolling interests ​ ​ ( 1,214 ) ​ ​ 2,562 ​ ​ 5,471 ​ ​ 7,144 Net income (loss) attributable to common stockholders ​ $ 921 ​ $ ( 1,068 ) ​ $ ( 1,731 ) ​ $ ( 2,943 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding (1) ​ ​ 3,859,226 ​ ​ 3,845,926 ​ ​ 3,853,321 ​ 3,844,488 Potential dilutive shares (2) ​ ​ 11,975 ​ ​ — ​ ​ — ​ — Weighted average common shares outstanding and potential dilutive shares (1) ​ ​ 3,871,201 ​ ​ 3,845,926 ​ ​ 3,853,321 ​ 3,844,488 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per common share, basic ​ $ 0.24 ​ $ ( 0.28 ) ​ $ ( 0.45 ) ​ $ ( 0.77 ) Net income (loss) per common share, diluted ​ $ 0.24 ​ $ ( 0.28 ) ​ $ ( 0.45 ) ​ $ ( 0.77 ) (1) Amounts relate to shares of the Company’s Class A and Class C common stock outstanding. (2) For the three months ended September 30, 2024, potential vesting of restricted Class A common stock of 11,975 shares are included in the diluted shares calculation. For the nine months ended September 30, 2024, potential vesting of restricted Class A common stock of 3,383 shares are excluded from the diluted shares calculation as the effect is antidilutive. For the three and nine months ended September 30, 2024, potential conversion of the Series A Preferred Stock into Class A common stock of 4,142,972 shares and 2,315,348 shares, respectively, are excluded from the diluted shares calculation as the effect is antidilutive. For the three and nine months ended September 30, 2023, (i) potential vesting of restricted Class A common stock of zero shares and 3,702 shares, respectively, are excluded from the diluted shares calculation as the effect is antidilutive, and (ii) potential conversion of the Series A Preferred Stock into Class A common stock of 44,658 shares and 12,810 shares, respectively, are excluded from the diluted shares calculation as the effect is antidilutive. 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. 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, 2024, the Company issued 3,459,331 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 $ 76.7 million after (i) commissions, dealer manager fees and sales discounts of approximately $ 8.7 million, and (ii) costs related to establishing the offering of Series A Preferred Stock of approximately $ 1.2 million. As of September 30, 2024, the Company had issued a total of 3,896,006 shares of Series A Preferred Stock with total net proceeds of approximately $ 85.0 million after commissions, dealer manager fees, sales discounts and offering costs. During the nine months ended September 30, 2024, the Company, at the request of holders, redeemed 6,560 shares of Series A Preferred Stock through the issuance of 9,103 shares of Class A common stock. 28 Table of Contents In November 2023, the Company announced the payment of additional contingent special daily dividends with respect to the Company’s Series A Preferred Stock. This dividend was aggregated with the regular monthly dividend so as to effect a dividend rate of two percent over the average 10-Year Daily Treasury Par Yield Curve Rate with a floor of 6 % annually, calculated and paid monthly. Commencing in November 2023, the Series A Preferred Stock additional contingent 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 May 2024, the Company announced the payment of an enhanced special dividend replacing the additional contingent special daily 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. Class A Common Stock Repurchase Plan On February 13, 2024, the Board authorized a 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 Securities 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 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. The Company expects to repurchase shares of its Class A common stock through open market transactions, subject to market conditions, certain price limitations and other conditions established under the plan. 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, 2024, 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, 2024, limited partners other than the Company owned approximately 69.29 % of the common units of the Operating Partnership ( 7,365,735 OP Units, or 57.09 %, is held by OP Unit holders, and 1,573,575 LTIP Units, or 12.20 %, is held by LTIP Unit holders, including 3.74 % which are not vested as of September 30, 2024). 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 February 21, 2024, the Company granted to the Manager (i) 151,600 C-LTIP Units in payment of the full base management fee of $ 2.0 million, and (ii) 95,204 C-LTIP Units in payment of the full operating expense reimbursement of $ 1.3 million, incurred for the fourth quarter 2023. On May 14, 2024, the Company granted 60,080 C-LTIP Units to the Manager in payment of one half ( 50 )% of the total base management fee of $ 2.1 million incurred for the first quarter 2024. On August 8, 2024, the Company granted 58,390 C-LTIP Units to the Manager in payment of one half ( 50 )% of the total base management fee of $ 2.2 million incurred for the second quarter 2024. All such C-LTIP Units were issued pursuant to the Management Agreement and 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 The Board has adopted, and the Company’s sole initial stockholder has approved, the Bluerock Homes Trust, Inc. 2022 Equity Incentive Plan for Individuals (the “BHM Individuals Plan”) and the Bluerock Homes Trust, Inc. 2022 Equity Incentive Plan for Entities (the “BHM Entities Plan”). Together, the Company refers to the BHM Individuals Plan and the BHM 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. 29 Table of Contents LTIP Unit Grants On January 8, 2024, the Company granted 5,185 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. Effective April 1, 2024, for tax efficiency purposes, the Manager forfeited 57,670 unvested LTIP Units granted to the Manager on May 25, 2023 in payment of the annual long-term incentive equity grant pursuant to the BHM Entities Plan. During the second quarter 2024, the Company reversed previously recognized compensation expense of approximately $ 0.3 million related to the forfeiture. Such expense reversal was recorded as part of general and administrative expenses in the Company’s consolidated statements of operations. On April 30, 2024 the Company granted 101,789 LTIP Units, including (by mutual agreement of the Manager and the Company, and at the direction of the Manager) the 57,670 unvested LTIP Units forfeited by the Manager, pursuant to the BHM Incentive Plans, directly to and among certain of the Manager’s executive management team and personnel who provide other services to the Manager as an annual long-term incentive equity grant for the year ended December 31, 2023. Such LTIP Units 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 LTIP Units based on the fair value at the date of grant. During the three and nine months ended September 30, 2024 and 2023, the Company recognized compensation expense for such LTIP Units of approximately $ 0.7 million and $ 0.7 million, and $ 2.0 million and $ 1.7 million, respectively. Such expense was recorded as part of general and administrative expenses in the Company’s consolidated statements of operations. At September 30, 2024, there was $ 7.8 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 2.8 years. Restricted Stock Grants In November 2023, the Company issued 31,260 shares of Class A common stock as restricted stock grants (“RSGs”), pursuant to the BHM Individuals Plans, directly to and among certain of the Manager’s executive management team and personnel who provide other services to the Manager (collectively, the “BREH Personnel”), as equity compensation for services provided to the Manager in such capacities. One-third of such RSGs vested on May 25, 2024, and the remainder will vest ratably on an annual basis over a two-year period from April 1, 2024. On April 1, 2024 and on April 30, 2024, the Company issued 66,846 shares and 10,435 shares, respectively, of Class A common stock as RSGs, pursuant to the BHM Individual Plans, directly to and among certain of the BREH Personnel as an annual long-term incentive equity grant for the year ended December 31, 2023. Such RSGs will vest ratably on an annual basis over a three-year period from their date of grant. During the three and nine months ended September 30, 2024 and 2023, the Company recognized compensation expense for all such RSGs of approximately $ 0.2 million and $ 0.05 million, and $ 0.4 million and $ 0.06 million, respectively. Such expense was recorded as part of general and administrative expenses in the Company’s consolidated statements of operations. At September 30, 2024, there was $ 1.4 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 2.3 years. 30 Table of Contents The Company currently uses authorized and unissued shares to satisfy share award grants. Distributions ​ Declaration Date Record Date Amount Paid / Payable Date Class A common stock Special Dividend ​ ​ ​ ​ ​ ​ ​ December 19, 2023 ​ December 29, 2023 ​ $ 1.00 ​ January 5, 2024 Class C common stock Special Dividend ​ ​ ​ ​ ​ ​ ​ December 19, 2023 ​ December 29, 2023 ​ $ 1.00 ​ January 5, 2024 Series A Preferred Stock (1) ​ ​ ​ ​ ​ ​ ​ October 13, 2023 ​ December 22, 2023 ​ $ 0.125 ​ January 5, 2024 January 15, 2024 ​ January 25, 2024 ​ ​ 0.125 ​ February 5, 2024 January 15, 2024 ​ February 23, 2024 ​ ​ 0.125 ​ March 5, 2024 January 15, 2024 ​ March 25, 2024 ​ ​ 0.125 ​ April 5, 2024 April 12, 2024 ​ April 25, 2024 ​ ​ 0.125 ​ May 3, 2024 April 12, 2024 ​ May 24, 2024 ​ ​ 0.125 ​ June 5, 2024 April 12, 2024 ​ June 25, 2024 ​ ​ 0.125 ​ July 5, 2024 July 12, 2024 ​ July 25, 2024 ​ ​ 0.125 ​ August 5, 2024 July 12, 2024 ​ August 23, 2024 ​ ​ 0.125 ​ September 5, 2024 July 12, 2024 ​ September 25, 2024 ​ ​ 0.125 ​ October 4, 2024 Series A Preferred Special Dividend (2) ​ ​ ​ ​ ​ ​ ​ November 7, 2023 ​ Each day of December 1 - 31, 2023 ​ $ 0.002469 ​ January 5, 2024 January 15, 2024 ​ Each day of January 1 - 31, 2024 ​ ​ 0.000337 ​ February 5, 2024 January 15, 2024 ​ Each day of February 1 - 29, 2024 ​ ​ 0.003458 ​ March 5, 2024 January 15, 2024 ​ Each day of March 1 - 31, 2024 ​ ​ 0.004603 ​ April 5, 2024 April 12, 2024 ​ Each day of April 1 - 30, 2024 ​ ​ 0.009953 ​ May 3, 2024 Series A Preferred Enhanced Special Dividend (3) ​ ​ ​ ​ ​ ​ ​ May 3, 2024 ​ May 24, 2024 ​ $ 0.027507 ​ June 5, 2024 May 3, 2024 ​ June 25, 2024 ​ ​ 0.027775 ​ July 5, 2024 July 12, 2024 ​ July 25, 2024 ​ ​ 0.027862 ​ August 5, 2024 July 12, 2024 ​ August 23, 2024 ​ ​ 0.027633 ​ September 5, 2024 July 12, 2024 ​ September 25, 2024 ​ ​ 0.022237 ​ October 4, 2024 (1) 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. (2) Holders of record of Series A Preferred Stock shares as of the close of business on each day of the applicable month were entitled to additional contingent special daily dividends for each such day, to be aggregated and payable (if at all) on the payable date, in each case equal to the amount (if any) by which (i) the Stated Value of the Series A Preferred Stock multiplied by (a) the sum of (I) the average 10-year Daily Treasury Par Yield Curve Rate for the period from the 26 th of the prior month to the 25 th of the applicable month (as reported by the United States Department of the Treasury), plus (II) two percent, divided by (b) twelve , divided further by (c) the actual number of days in the applicable month, exceeds (ii) the quotient of (a) $ 0.125 divided by (b) the actual number of days in the applicable month. (3) Holders of record of Series A Preferred Stock shares are entitled to an enhanced special dividend, which replaces the additional contingent special daily dividends, 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 effect a dividend rate on the Series A Preferred Stock that is subject to a 6.5 % minimum and 8.5 % maximum annual rate. 31 Table of Contents A portion of each dividend may constitute a return of capital for tax purposes. There is no assurance that the Company will continue to declare dividends or at this rate. 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, 2024 were as follows (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Distributions 2024 Declared Paid First Quarter ​ ​ ​ ​ ​ ​ Class A common stock ​ $ — ​ $ 3,871 Class C common stock ​ ​ — ​ ​ 8 Series A Preferred Stock (1) ​ ​ 253 ​ ​ 206 OP Units ​ ​ — ​ ​ 7,366 LTIP / C-LTIP Units ​ ​ — ​ ​ 1,143 Total First Quarter ​ $ 253 ​ $ 12,594 Second Quarter ​ ​ ​ ​ ​ ​ Series A Preferred Stock (1) ​ $ 562 ​ $ 396 Total Second Quarter ​ $ 562 ​ $ 396 Third Quarter ​ ​ ​ ​ ​ ​ Series A Preferred Stock (1) ​ $ 1,412 ​ $ 1,129 Total Third Quarter ​ $ 1,412 ​ $ 1,129 Total ​ $ 2,227 ​ $ 14,119 ​ (1) Series A Preferred Stock amounts include the standard dividend at an annual rate of 6.0 % of the Stated Value plus any special and enhanced special dividends . Note 14 – Commitments and Contingencies As of September 30, 2024, the Company has contractual commitments to fund future cash obligations in certain of its loan and preferred equity investments in the aggregate of $ 7.8 million. In addition, the Company has made a commitment to fund the total estimated project costs of $ 56.9 million for the development of Abode Wendell Falls, a 170 -unit build-to-rent development project in Wendell, North Carolina. As of September 30, 2024, the remaining estimated project costs to complete Abode Wendell Falls is $ 50.0 million. In connection with the Company moving its New York (Manhattan) headquarters, effective on May 31, 2024, the Company and an unaffiliated third-party landlord entered into a lease for separate corporate space (the “NY Premises Lease”) located at 919 Third Avenue, New York, New York (the “Future NY Premises”). The NY Premises Lease will commence on the date the landlord makes the space available to the Company, which is the date that is the earlier of (i) the landlord delivering the space to the Company with substantially all agreed upon improvements completed, or (ii) the Company using the space to conduct business or begin its own alterations or improvements. Upon the date the lease commences, the Company will record a right-of-use asset and lease liability on its consolidated balance sheets. The Company expects the NY Premises Lease to commence in December 2024, with the Company occupying the Future NY Premises shortly thereafter. The Company is subject to various legal actions and claims arising in the ordinary course of business. Although the outcome of any legal matter cannot be predicted with certainty, management does not believe that any of these legal proceedings or matters will have a material adverse effect on the consolidated financial position or results of operations or liquidity of the Company. 32 Table of Contents Note 15 – Subsequent Events Declaration of Dividends ​ ​ ​ ​ ​ ​ ​ ​ ​ Declaration Date Record Date Amount Paid / Payable Date Series A Preferred Stock (1) ​ October 14, 2024 ​ October 25, 2024 ​ $ 0.125 ​ November 5, 2024 October 14, 2024 ​ November 25, 2024 ​ ​ 0.125 ​ December 5, 2024 October 14, 2024 ​ December 24, 2024 ​ ​ 0.125 ​ January 3, 2025 Series A Preferred Enhanced Special Dividend ​ ​ ​ ​ ​ ​ ​ October 14, 2024 ​ October 25, 2024 ​ ​ (2) ​ November 5, 2024 October 14, 2024 ​ November 25, 2024 ​ ​ (2) ​ December 5, 2024 October 14, 2024 ​ December 24, 2024 ​ ​ (2) ​ January 3, 2025 (1) 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. (2) 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 effect a dividend rate on the Series A Preferred Stock that is subject to a 6.5 % minimum and 8.5 % maximum annual rate. Distributions Paid The following distributions were declared and/or paid to the Company’s stockholders subsequent to September 30, 2024 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares Declaration Date Record Date Date Paid Distribution per Share Total Distribution Series A Preferred Stock (1) ​ July 12, 2024 ​ September 25, 2024 ​ October 4, 2024 ​ $ 0.147237 ​ $ 548 Series A Preferred Stock (1) ​ October 14, 2024 ​ October 25, 2024 ​ November 5, 2024 ​ 0.141593 ​ 576 Total ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,124 (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. ILE Financing On October 1, 2024, the Company, along with its unaffiliated joint venture partner, ILE, entered into a $ 23.0 million floating rate loan, with a portion of the proceeds used to fully pay off the outstanding balance of the Amended ILE Sunflower Credit Facility (refer to Note 8 for further information). The loan bears interest at one-month Term SOFR plus 2.85 %, subject to a 6.50 % rate floor, with interest-only monthly payments during the term of the loan. The loan matures on October 1, 2027 and can be prepaid in part or in whole through October 1, 2026 subject to a prepayment penalty; after such date, the loan can be prepaid without penalty. 33 Table of Contents KeyBank Credit Facility On October 25, 2024, the Company, through a subsidiary of its Operating Partnership, entered into a credit agreement with KeyBank National Association (the “KeyBank Credit Facility”). The KeyBank Credit Facility provides for a revolving loan with a maximum commitment amount of $ 50.0 million. 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 %). 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. Borrowings can be prepaid, in whole or in part, without premium or penalty. Acquisition of Amira at Westly On October 31, 2024, the Company, through BR Amira DST, a Delaware statutory trust and a wholly owned subsidiary of its Operating Partnership (the “Amira DST”), acquired a 408 -unit single-family residential community located in Tampa, Florida known as Amira at Westly. The purchase price of $ 103.0 million was funded with (i) a $ 56.7 million senior loan secured by Amira at Westly, (ii) borrowings of $ 36.0 million on the KeyBank Credit Facility, and (iii) cash of $ 14.5 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions. Amira at Westly is the first property acquired by the Company through a Delaware statutory trust to be part of a private placement offering through which interests in the Amira DST will be issued to third party accredited investors therein (as further described below). Following the acquisition of Amira at Westly, the organizational structure with respect to the ownership of Amira at Westly is such that Amira at Westly is owned by the Amira DST, and the Amira DST is wholly owned by BHM Amira Investment Co, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Operating Partnership (“BHM Amira Investment Co”). BHM Amira Investment Co initially owns all Class 2 DST Interests in the Amira DST, which will be redeemed over time to permit the issuance of Class 1 DST Interests in the Amira DST to third party accredited investors therein as part of a private placement offering. Amira at Westly is subject to a Master Lease Agreement with BHM Amira Leaseco, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Operating Partnership (“BHM Amira Leaseco”), pursuant to which the Company, through BHM Amira Leaseco, receives and is obligated to pay rent received from Amira at Westly to the Amira DST. ​ 34 Table of Contents