NEW
YORK, Feb. 6, 2025 /PRNewswire/ -- Bluerock
Homes Trust, Inc. (NYSE American: BHM, the "Company") announced
today that it is implementing a new Series A Preferred Stock
Redemption Safeguard Policy.
Under the Company's new Series A Preferred Stock Redemption
Safeguard Policy, should a holder have its Series A Preferred Stock
redeemed, either at their option or at the Company's, and in
connection with such redemption receive the Company's Class A
Common Stock, if the shareholder sells such Class A Common Stock
within 10 business days at a loss (i.e. a lower price than the
Aggregate Redemption Value), the shareholder can apply to the
Company to be made whole, excluding any transaction costs or
redemption fees, as applicable. The new policy applies both
retroactively, and on a go-forward basis, to holders of the
Company's Series A Preferred Stock. Shareholders can access the new
policy by visiting the Company's public website at:
www.bluerockhomes.com.
As of January 31, 2025, the
Company has raised more than $120
million in the Series A Preferred Stock at a $25 per share price with a current minimum annual
dividend yield of 6.5%1. The Company's Series A
Preferred Stock dividends for 2024 benefitted from favorable tax
treatment, including depreciation, resulting in a tax equivalent
yield of approximately 7.93%2. The Series A Preferred
Stock is supported by approximately $840
million in gross assets with ownership and investments in
45,000 single-family and built-to-rent homes primarily located in
in high-growth Sunbelt markets. The portfolio was 94.3% occupied
with a low 9% net debt as of the most recent public reporting
period ending September 30,
20243.
"As Bluerock Homes Trust continues to expand its growing asset
base and provide a best-in-class non-traded preferred stock option
for income-focused investors, we are pleased to offer our preferred
shareholders an innovative safeguard against downside risk at the
time of redemption of their Series A Preferred Stock," said
Ramin Kamfar, CEO of Bluerock Homes
Trust.
About Bluerock Homes Trust, Inc.
Bluerock Homes Trust,
Inc. (NYSE American: BHM), headquartered in New York, New York, is an externally managed
REIT that owns and operates high-quality single-family properties
located in attractive markets with a focus on the knowledge-economy
and high quality of life regions of the Sunbelt and high growth
areas of the Western United
States. BHM's principal objective is to generate attractive
risk-adjusted investment returns by assembling a portfolio of
pre-existing single-family rental homes and developing
build-to-rent communities. BHM properties are located across a
diverse group of growth markets and will seek to target a growing
pool of middle-market renters seeking the single-family lifestyle
without the upfront and ongoing investments associated with home
ownership. For more information, please visit
bluerockhomes.com.
About Bluerock
Bluerock is a leading institutional alternative asset manager based
in New York with regional offices
across the U.S. Bluerock principals have a collective 100+ years of
investing experience with more than $120
billion in capital markets experience and manage multiple
well-recognized company platforms. Bluerock has more than
$19 billion in acquired and managed
assets and offers a complementary suite of public and private
investment programs, with both short and long-term goals, to
individual investors seeking solutions aimed at providing
predictable income, capital growth, and tax benefits.
1 Payment of Dividends is not guaranteed. Reflects
the regular monthly dividend of $0.125 per outstanding share of Series A
Preferred Stock (the Series A Preferred Regular Dividends) plus a
special dividend (the "Series A Preferred Special Dividends") which
shall be declared for each month for which the Board declares the
Series A Preferred Regular Dividends, and shall be payable at the
rate of SOFR 1-month Term Rate plus 2%, subject to a 6.5% minimum
and 8.5% maximum annual rate, calculated and paid monthly. The
Series A Preferred Special Dividends will be aggregated and payable
in cash on the 5th day of the following month. The average 1-month
Term SOFR Rate will be calculated based on the average 1-month Term
SOFR Rate for each day commencing on the 26th day of the prior
month and ending on the 25th day of the applicable month. Dividends
may be paid from sources other than cash flow from operations.
Dividends may represent a return of capital.
2 A return of capital (ROC), for tax purposes, should
be distinguished from an economic return of capital, where an
investor is repaid out of its own contributions rather than from
the economic profits of the investment. As a tax law concept, an
ROC is not tied to an investment's financial performance. From a
tax perspective, amortization and depreciation create an income
deferral benefit because a taxpayer is entitled to amortization and
depreciation deductions without regard to whether an asset actually
amortizes or depreciates. ROC distributions reduce the
stockholder's tax basis in the year the dividend is received, and
generally defer taxes on that portion until the stock is sold.
Investors should be aware that a REIT's ROC percentage may vary
significantly in a given year. The tax-equivalent yield
assumes a 6.5% distribution rate, 37% federal income tax rate and
5% state income tax rate. As of the year-end 2024, BHM's 2024
common stock dividends were categorized as 100% ROC. Preferred
stock dividends were categorized as 30.42% return of capital,
61.54% capital gain, and 8.04% ordinary dividend.
3 Net debt leverage ratio is a non-GAAP financial
measure calculated by the Company, using financial measures
calculated in accordance with GAAP, as net debt (total principal
debt outstanding, comprised of mortgages payable and revolving
credit facilities, less total cash) divided by net assets (total
assets less total cash plus depreciation and amortization).
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws. These forward-looking statements are based upon
the Company's present expectations, but these statements are not
guaranteed to occur. Furthermore, the Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
of new information, data or methods, future events, or other
changes. Investors should not place undue reliance upon
forward-looking statements. For further discussion of the
factors that could affect outcomes, please refer to the risk
factors set forth in Item 1A of the Company's Annual Report on Form
10-K filed by the Company with the U.S. Securities and Exchange
Commission ("SEC") on March 12, 2024,
and subsequent filings by the Company with the SEC. We claim
the safe harbor protection for forward looking statements contained
in the Private Securities Litigation Reform Act of 1995.
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SOURCE Bluerock Homes Trust, Inc.
