Financial Analysis

Note 3 Acquisition of Real Estate Acquisition of Villas at Huffmeister On March 25, 2024, the Company, through a 95% owned joint venture entity, acquired a 294-unit 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 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. Acquisition of Allure at Southpark On December 6, 2024, the Company, through a 98.05% owned joint venture entity, acquired a 350-unit residential community located in Charlotte, North Carolina known as Allure at Southpark. The purchase price of $92.0 million was funded with a $55.2 million senior loan secured by Allure at Southpark, along with cash of $39.3 million funded by the Company, inclusive of certain adjustments typical in such real estate transactions. Acquisition of Residential Communities th …

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Note 16 Commitments and Contingencies The aggregate amount of the Companys contractual commitments to fund future cash obligations in certain of its preferred equity investments was $27.0 million and $17.6 million at December 31, 2025 and 2024, respectively. In addition, the Company has two consolidated residential communities (Abode Wendell Falls and Harmony at Clear Creek) under construction comprised of an aggregate of 358 units. At December 31, 2025, the Company estimates the remaining costs to complete the construction of these two residential communities to be approximately $113.6 million. The Company intends to finance these costs through a combination of available cash, proceeds from construction loans, and preferred equity capital contributions. The Company also committed to acquire an aggregate of 100 residential community units known as Parkside at Summers Corner. The Company expects acquisitions to occur in tranches as construction is completed, and as of December 31, 2025, 88 units remain to be acquired, representing an aggregate purchase price of $22.6 million. 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. Lessee Operating Lease I …

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Note 12 Fair Value 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 Companys 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, th …

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New Accounting Pronouncements 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 evaluated the impact of ASU 2023-09 on its financial disclosures and has included additional income tax disclosures as applicable in the notes to its consolidated financial statements. In November 2024, the FASB issued Accounting Standards Update No. 2024-03 Disaggregation of Income Statement Expenses (Subtopic 220-40) (ASU 2024-03). The amendments in ASU 2024-03 require additional disclosure of specified information about certain costs and expenses within the notes to the financial statements. The amendments in ASU 2024-03 are effective for the Company for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of adopting ASU 2024-03 on its financial disclosures. In November 2025, the FASB issued Accounting Standards Update No. 2025 - 08, Financial Instruments Credit Losses (Topic 326) (ASU 2025 - 08). The amendments in ASU 2025 - 08 expand the use of the gross - up approach for the recognition of expected cred …

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Note 14 Related Party Transactions Management Agreement with the Manager In October 2022, the Company entered into a management agreement (the Management Agreement) with the Operating Partnership and Bluerock Homes Manager, LLC (the Manager) pursuant to which the Manager provides for the day-to-day management of the Companys 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 Companys business affairs under the supervision and direction of the Companys board of directors (the Board). Specifically, the Manager is responsible for (i) the selection, purchase and sale of the Companys portfolio investments, (ii) the Companys 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, 2026 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 Companys New Stockholders Equity (as defined in the Management Agreement) per year, as well as an incentive fee (the incentive fee) wi …

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Note 17 Segment Information The Company owns and operates residential real estate assets that generate rental and other property-related income through the leasing of residential units to a diverse base of tenants. The Company evaluates operating performance on an individual property investment level and based on the investments similar economic characteristics. The Companys Chief Operating Decision Makers (CODMs) are its Chief Executive Officer, Chief Investment Officer and Chief Financial Officer. The CODMs primary financial measure for operating performance is NOI as it measures the core operations of property performance by excluding corporate level expenses and those other items not related to property operating performance. CODMs are provided financial reports which include an income statement with property revenues, property operating expenses, and property net income. These financial reports assist the CODMs in assessing the Companys financial performance and in allocating resources appropriately. The Company views its residential real estate assets as two reportable segments, consisting of (i) residential communities and (ii) scattered single-family homes. The CODMs do not distinguish or group operations on a geographic, tenant or other basis when assessing the financial performance of the Companys portfolio of properties/investments. Residential communities segment includes the acquisition, ownership, management, renovation, construction, and development of resident …

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Note 15 Stockholders Equity Net Loss Per Common Share Basic and diluted net loss per common share is computed by dividing net loss attributable to common stockholders, less dividends on restricted stock and LTIP Units expected to vest, by the weighted average number of common shares outstanding for the period. Net loss attributable to common stockholders is computed by adjusting net loss for the non-forfeitable dividends paid on non-vested restricted stock and LTIP Units. The Company considers the requirements of the two-class method when preparing earnings per share. 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 Companys Class A and C common stock participate in dividends on a one-for-one basis. The following table reconciles the components of basic and diluted net loss per common share for the years ended December 31, 2025 and 2024 (amounts in thousands, except share and per share amounts): 2025 2024 Net loss $ (32,598) $ (12,091) Less preferred stock dividends (9,203) (4,022) Less preferred stock accretion (4,538) (244) Less dividends on restricted stock and LTIP Units expected to vest (263) Addback net loss attributable to noncontrolling interests 34,848 12,123 Net loss attributable to common stockholders $ (11,754) $ (4,234) Weighted average common shares outstanding (1) 3,889,301 3,856,162 …

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Note 18 Subsequent Events Issuance of LTIP Units under the BHM Incentive Plans On January 1, 2026, the Company granted 7,824 LTIP Units pursuant to the BHM Incentive Plans to each independent member of the Board in payment of the equity portion of their respective annual retainers. Such LTIP Units were fully vested upon issuance. Declaration of Dividends Declaration Date Record Date Amount Paid / Payable Date Series A Preferred Stock (1) January 15, 2026 January 23, 2026 $ 0.12500 February 5, 2026 January 15, 2026 February 25, 2026 0.12500 March 5, 2026 January 15, 2026 March 25, 2026 0.12500 April 2, 2026 Series A Preferred Enhanced Special Dividend January 15, 2026 January 23, 2026 (2) February 5, 2026 January 15, 2026 February 25, 2026 (2) March 5, 2026 January 15, 2026 March 25, 2026 (2) April 2, 2026 Series B Preferred Stock (1) January 15, 2026 January 23, 2026 $ 0.15625 February 5, 2026 January 15, 2026 February 25, 2026 0.15625 March 5, 2026 January 15, 2026 March 25, 2026 0.15625 April 2, 2026 (1) Holders of record of newly issued Series A Preferred Stock shares and Series B Preferred Stock shares that are held only a portion of the applicable monthly dividend period will receive a prorated dividend based on the actual number of days in the applicable dividend period during which each such share of Series A Preferred Stock and Series B Preferred Stock was outstanding. (2) Holders of record of Series A Preferred Stock shares are entitled to an enhanced special dividen …

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