UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

☒           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

☐          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ______

Commission File Number 001-41322

BLUEROCK HOMES TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland	87-4211187
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1345 Avenue of the Americas, 32nd Floor, New York, NY	10105
(Address of principal executive offices)	(Zip Code)

(212) 843-1601

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share	BHM	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐	Non-Accelerated Filer	☒
Smaller reporting company	☐	Emerging growth company	☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Number of shares outstanding of the registrant’s

classes of common stock, as of November 11, 2024

Class A Common Stock: 3,953,919 shares

Class C Common Stock: 8,489 shares

BLUEROCK HOMES TRUST, INC.

FORM 10-Q

September 30, 2024

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 (Audited)	3
	Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023	4
	Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023	5
	Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2024 and 2023	9
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	52
Item 4.	Controls and Procedures	53
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	55
Item 6.	Exhibits	56
SIGNATURES		57

2

PART I – FINANCIAL INFORMATION

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

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

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

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

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

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

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