Bluerock Homes Trust Introduces Innovative Safeguard for Preferred Stock Shareholders
Bluerock Homes Trust, Inc., trading on NYSE American under the ticker BHM, has announced a significant development impacting its Series A Preferred Stockholders. The company has implemented a new Series A Preferred Stock Redemption Safeguard Policy, designed to provide shareholders with enhanced protection during the stock redemption process.
Under this newly established policy, if a holder opts to redeem their Series A Preferred Stock or if the company decides to execute the redemption, shareholders will receive Class A Common Stock in exchange. A particularly notable aspect of this policy allows shareholders who incur a loss on the sale of such Class A Common Stock within a ten-business-day window to seek remedy from Bluerock Homes Trust. Specifically, if the shares are sold at a price lower than the Aggregate Redemption Value, shareholders can apply for compensation that effectively makes them whole, barring transaction costs or redemption fees.
This policy applies not only to future transactions but also retroactively, benefiting current holders of the Series A Preferred Stock. Interested parties can find detailed information about the policy on the official Bluerock Homes Trust website at www.bluerockhomes.com.
As of January 31, 2025, Bluerock Homes Trust has successfully raised over $120 million through Series A Preferred Stock, issued at a price of $25 per share. The fund has offered a robust minimum annual dividend yield of 6.5%, which reflects a competitive rate for income-oriented investors. Furthermore, due to favorable tax treatment, particularly concerning depreciation, the tax-equivalent yield for preferred stock dividends in 2024 approximated 7.93%.
The company’s Series A Preferred Stock is underpinned by substantial assets totaling around $840 million, which encompass ownership and investments in approximately 45,000 single-family and built-to-rent homes. These properties are strategically located in high-growth regions, particularly within the attractive Sunbelt markets. According to recent reports, the portfolio maintained a remarkable 94.3% occupancy rate coupled with a minimal net debt ratio of just 9% as of September 30, 2024.
Ramin Kamfar, CEO of Bluerock Homes Trust, expressed optimism concerning the newly introduced safeguard. He stated, "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."
Founded and headquartered in New York City, Bluerock Homes Trust is a real estate investment trust (REIT) focused on owning and managing high-quality single-family properties in regions characterized by robust knowledge-economy growth and high quality of life. The company aims to generate attractive risk-adjusted returns by assembling a diverse portfolio of pre-existing rental homes and developing new build-to-rent communities. Through its investments, Bluerock targets the middle market renters who prefer single-family living without the complexities associated with ownership.
Bluerock has established itself as a notable player in the institutional alternative asset management space, boasting more than $19 billion in assets under management and a commitment to providing diverse investment solutions that cater to both capital growth and predictable income initiatives. Investors interested in more information about the trust, its operations, or the latest updates are encouraged to visit the Bluerock Homes Trust website for further details.
Under this newly established policy, if a holder opts to redeem their Series A Preferred Stock or if the company decides to execute the redemption, shareholders will receive Class A Common Stock in exchange. A particularly notable aspect of this policy allows shareholders who incur a loss on the sale of such Class A Common Stock within a ten-business-day window to seek remedy from Bluerock Homes Trust. Specifically, if the shares are sold at a price lower than the Aggregate Redemption Value, shareholders can apply for compensation that effectively makes them whole, barring transaction costs or redemption fees.
This policy applies not only to future transactions but also retroactively, benefiting current holders of the Series A Preferred Stock. Interested parties can find detailed information about the policy on the official Bluerock Homes Trust website at www.bluerockhomes.com.
As of January 31, 2025, Bluerock Homes Trust has successfully raised over $120 million through Series A Preferred Stock, issued at a price of $25 per share. The fund has offered a robust minimum annual dividend yield of 6.5%, which reflects a competitive rate for income-oriented investors. Furthermore, due to favorable tax treatment, particularly concerning depreciation, the tax-equivalent yield for preferred stock dividends in 2024 approximated 7.93%.
The company’s Series A Preferred Stock is underpinned by substantial assets totaling around $840 million, which encompass ownership and investments in approximately 45,000 single-family and built-to-rent homes. These properties are strategically located in high-growth regions, particularly within the attractive Sunbelt markets. According to recent reports, the portfolio maintained a remarkable 94.3% occupancy rate coupled with a minimal net debt ratio of just 9% as of September 30, 2024.
Ramin Kamfar, CEO of Bluerock Homes Trust, expressed optimism concerning the newly introduced safeguard. He stated, "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."
Founded and headquartered in New York City, Bluerock Homes Trust is a real estate investment trust (REIT) focused on owning and managing high-quality single-family properties in regions characterized by robust knowledge-economy growth and high quality of life. The company aims to generate attractive risk-adjusted returns by assembling a diverse portfolio of pre-existing rental homes and developing new build-to-rent communities. Through its investments, Bluerock targets the middle market renters who prefer single-family living without the complexities associated with ownership.
Bluerock has established itself as a notable player in the institutional alternative asset management space, boasting more than $19 billion in assets under management and a commitment to providing diverse investment solutions that cater to both capital growth and predictable income initiatives. Investors interested in more information about the trust, its operations, or the latest updates are encouraged to visit the Bluerock Homes Trust website for further details.
Topics Financial Services & Investing）
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