Bluerock Homes Trust Affirms Investor Payouts with Q1 Dividends

NEW YORK, NY – January 15, 2026 – Bluerock Homes Trust, Inc. (NYSE American: BHM) today reaffirmed its commitment to shareholder returns, announcing that its Board of Directors has declared monthly cash dividends for the first quarter of 2026 for its Series A and Series B Redeemable Preferred Stock. The move signals financial stability and provides clarity for income-focused investors at the start of the new year.

The announcement details consistent payouts for two classes of the company's preferred stock, an investment vehicle often favored for its reliable income stream. This declaration comes as the real estate investment trust (REIT) continues to navigate a dynamic housing market by focusing on high-growth residential sectors.

A Closer Look at the Dividend Structure

Bluerock has structured the dividends to provide steady, predictable payments throughout the quarter. Holders of the Series A Preferred Stock will receive a total quarterly dividend of $0.375 per share, distributed in monthly increments of $0.125. These payments are scheduled for February 5, March 5, and April 2, 2026, for stockholders of record on January 23, February 25, and March 25, respectively.

Similarly, investors in the Series B Preferred Stock are set to receive a quarterly rate of $0.46875 per share, paid out in monthly installments of $0.15625 on the same payment and record dates. The company noted that any newly-issued shares will receive prorated dividends based on the number of days they were outstanding during the period.

A significant component of the announcement is the continuation of an “enhanced special dividend” for Series A stockholders. This feature links the dividend yield to the broader interest rate market, specifically the average one-month term Secured Overnight Financing Rate (SOFR). The dividend is calculated by adding a 2.0% premium to the SOFR rate. Crucially, this variable payout is protected by a floor and a ceiling, guaranteeing an annual rate between 6.5% and 8.5%.

Given the current one-month SOFR average of approximately 3.70%, the calculated rate (SOFR + 2.0%) would be 5.70%. However, the dividend floor mechanism kicks in, ensuring investors receive the more favorable 6.5% minimum annual rate. With economic forecasts projecting a gradual decline in the SOFR rate through the first quarter, this downside protection becomes an increasingly valuable feature, safeguarding investor returns against falling interest rates.

Strategy in High-Growth Residential Markets

The ability for Bluerock Homes Trust to sustain these dividend payments is intrinsically linked to its underlying business strategy. The REIT is an externally managed firm that owns and operates a portfolio of institutional-grade residential properties, with a sharp focus on single-family homes and build-to-rent (BTR) communities. Its portfolio is geographically concentrated in what it identifies as attractive markets within the Sunbelt and high-growth areas of the Western United States.

These regions continue to benefit from strong demographic tailwinds, including robust job creation, sustained population growth, and persistent in-migration from more expensive coastal states. Bluerock targets what it calls the “high disposable income renter by choice,” a growing segment of the population seeking the flexibility and amenities of renting without the financial burdens of homeownership.

The build-to-rent sector, in particular, has become a cornerstone of this strategy. The BTR model is experiencing a surge in demand, fueled by elevated home prices and mortgage rates that have pushed homeownership out of reach for many. With the average U.S. mortgage payment now significantly exceeding the average monthly rent, professionally managed communities of single-family rental homes offer a compelling alternative. Analysts project the BTR sector will continue its rapid expansion, potentially accounting for 15% of all new single-family home starts over the next five years, with much of that growth centered in the Sunbelt where Bluerock operates.

Navigating Market Dynamics and Financial Health

While the long-term outlook for its chosen markets appears strong, Bluerock is operating in a complex environment. Some Sunbelt metropolitan areas, including Austin and Phoenix, are currently absorbing a significant influx of new apartment supply. This has led to a temporary market imbalance, with landlords offering increased concessions like free rent to attract tenants, particularly in the luxury segment. However, industry experts anticipate this to be a short-term issue, with a slowdown in new construction expected to restore pricing power to property owners within the next 12 to 18 months.

From a financial standpoint, Bluerock maintains a moderate leverage profile. As of late 2024, the company reported a low net debt of 9% and a portfolio occupancy of 94.3%, indicating healthy operational performance. Its debt-to-capital ratio of 0.56 suggests a balanced approach to financing its growth.

However, recent financial reports have shown variability, with the company posting a net loss of $23.12 million through the first three quarters of 2025. While such figures can raise investor questions, it is critical to distinguish between different parts of the company's capital structure. The declared dividends are for preferred stock, which holds seniority over common stock. This means preferred stockholders are first in line for dividend payments, making these distributions significantly more secure than their common stock counterparts. The company’s substantial asset base, previously reported at approximately $840 million supporting the Series A preferred shares, provides a solid foundation for meeting these obligations as it executes its value-add and development strategies in America's fastest-growing residential markets.