Bluerock Homes Trust, Inc.

Previous wording

As of June 30, 2026, we held twenty-four real estate investments, consisting of eighteen consolidated investments, five preferred equity investments, and one unconsolidated real estate fund investment. The twenty-three consolidated and preferred equity investments represent an aggregate of 5,420 residential units, comprised of 4,271 consolidated units, of which 410 units are under development or in lease-up, and 1,149 units through preferred equity investments, which includes planned units and those under development. As of June 30, 2026, our consolidated operating investments were approximately 90.2% occupied; excluding units classified as held for sale and down/renovation units, our consolidated operating investments were approximately 92.3% occupied.

Current wording

As of September 30, 2026, we held twenty-five real estate investments, consisting of eighteen consolidated investments, five preferred equity investments, one loan investment, and one unconsolidated real estate fund investment. The twenty-three consolidated and preferred equity investments represent an aggregate of 5,321 residential units, comprised of 4,172 consolidated units, of which 440 units are under development or in lease-up, and 1,149 units through preferred equity investments, which includes planned units and those under development. As of September 30, 2026, our consolidated operating investments were approximately 89.4% occupied; excluding units classified as held for sale and down/renovation units, our consolidated operating investments were approximately 92.0% occupied.

Previous wording

During the first half of 2026, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict. While these factors did not have a significant adverse impact on us during the first half of 2026, they may adversely impact us in the future. Inflation and its related impacts, including increased prices for services and goods and higher interest rates and wages, and any policy interventions by the U.S. government, could negatively impact our residents’ ability to pay rents and our results of operations. Substantially all our leases are for a term of one year or less, which we believe mitigates our exposure to inflation, by permitting us to set rents commensurate with inflation (subject to rent regulations to the extent they apply and assuming our current or prospective residents will accept and can pay commensurate increased rents, of which there can be no assurance). Inflation could outpace any increases in rent and adversely affect us. We may not be able to mitigate the effects of inflation and related impacts, and the duration and extent of any prolonged periods of inflation, and any such related adverse effects on our results of operations and financial condition are unknown at this time. Inflation may also cause increased volatility in financial markets, which could affect our ability to access the capital markets or impact the cost or timing at which we are able to do so. Inflation may also increase the costs to complete our development projects, including costs of materials, labor and services from third-party contractors and suppliers. Higher construction costs could adversely impact our investments in real estate assets and our expected yields on development projects. We continue to monitor increases in inflation and rising interest rates and resulting economic changes in credit and capital markets, as well as direct and indirect impacts resulting from the uncertainty related to, or changes to, the overall regulatory and economic environment and from geopolitical conditions and the effects of international conflicts on global markets.

Current wording

During 2026, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict. While these factors did not have a significant adverse impact on us during the first three quarters of 2026, they may adversely impact us in the future. Inflation and its related impacts, including increased prices for services and goods and higher interest rates and wages, and any policy interventions by the U.S. government, could negatively impact our residents’ ability to pay rents and our results of operations. Substantially all our leases are for a term of one year or less, which we believe mitigates our exposure to inflation, by permitting us to set rents commensurate with inflation (subject to rent regulations to the extent they apply and assuming our current or prospective residents will accept and can pay commensurate increased rents, of which there can be no assurance). Inflation could outpace any increases in rent and adversely affect us. We may not be able to mitigate the effects of inflation and related impacts, and the duration and extent of any prolonged periods of inflation, and any such related adverse effects on our results of operations and financial condition are unknown at this time. Inflation may also cause increased volatility in financial markets, which could affect our ability to access the capital markets or impact the cost or timing at which we are able to do so. Inflation may also increase the costs to complete our development projects, including costs of materials, labor and services from third-party contractors and suppliers. Higher construction costs could adversely impact our investments in real estate assets and our expected yields on development projects. We continue to monitor increases in inflation and rising interest rates and resulting economic changes in credit and capital markets, as well as direct and indirect impacts resulting from the uncertainty related to, or changes to, the overall regulatory and economic environment and from geopolitical conditions and the effects of international conflicts on global markets.

Previous wording

Other weakened economic conditions, including job losses, high unemployment levels, stock market volatility, and uncertainty about the future, could adversely affect rental rates and occupancy levels. In addition, during 2025, the current U.S. administration has introduced tariffs on imports from a broad set of countries, including Canada, Mexico, European Union member states, Japan and China, in response to which global trading partners have imposed or may impose their own tariffs. In response to a February 2026 U.S. Supreme Court holding that the administration may not rely on the International Emergency Economic Powers Act, or IEEPA, to impose broad-based tariffs, the administration has since turned to alternative temporary statutory authorities to maintain certain surcharges and has indicated that it intends to preserve a broader tariff regime through other trade rules and legal authorities. Such U.S. tariffs, together with actual and potential additional tariffs imposed by the current administration or other countries, contributed to increased volatility in financial markets and interest rates during 2025 and may cause further inflationary pressures in the economy, uncertainty and volatility of debt and equity markets, and a slowdown in the U.S. and global economies in the future. Such tariffs are likely to increase construction costs and further reduce already constrained new supply starts, which could adversely impact the timing of actual completion and/or stabilization of our build-to-rent communities, including potential delays due to supply shortages and labor shortages. Any of these factors could depress economic activity and have a material adverse effect on our business, financial condition, cash flows, and our results of operations.

Current wording

Other weakened economic conditions, including job losses, high unemployment levels, stock market volatility, and uncertainty about the future, could adversely affect rental rates and occupancy levels. In addition, during 2025, the current U.S. administration has introduced tariffs on imports from a broad set of countries, including Canada, Mexico, European Union member states, Japan and China, in response to which global trading partners have imposed or may impose their own tariffs. In response to a February 2026 U.S. Supreme Court holding that the administration may not rely on the International Emergency Economic Powers Act, or IEEPA, to impose broad-based tariffs, the administration has since turned to alternative temporary statutory authorities to maintain certain surcharges and has indicated that it intends to preserve a broader tariff regime through other trade rules and legal authorities. Such U.S. tariffs, together with actual and potential additional tariffs imposed by the current administration or other countries, have contributed to increased volatility in financial markets and interest rates during 2025 and 2026, and may cause further inflationary pressures in the economy, uncertainty and volatility of debt and equity markets, and a slowdown in the U.S. and global economies in the future. Such tariffs are likely to increase construction costs and further reduce already constrained new supply starts, which could adversely impact the timing of actual completion and/or stabilization of our build-to-rent communities, including potential delays due to supply shortages and labor shortages. Any of these factors could depress economic activity and have a material adverse effect on our business, financial condition, cash flows, and our results of operations.

Previous wording

Provided below is a summary of our investment activity during the six months ended June 30, 2026.

Current wording

Provided below is a summary of our investment activity during the nine months ended September 30, 2026.

Previous wording

We acquired, with full ownership interest, an additional 40 units at Parkside at Summers Corner located in Summerville, South Carolina for an aggregate purchase price of $10.3 million. Units are to be acquired in tranches as construction is completed, and as of June 30, 2026, we acquired 52 of the total 100 units we have committed to purchase.

Current wording

We acquired, with full ownership interest, an additional 70 units at Parkside at Summers Corner located in Summerville, South Carolina for an aggregate purchase price of $18.0 million. Units are to be acquired in tranches as construction is completed, and as of September 30, 2026, we acquired 82 of the total 100 units we have committed to purchase.

Previous wording

We closed on the following sales: 35 units in the Ballast portfolio, 47 units in the Golden Pacific portfolio, 29 units in the ILE portfolio, 8 units in the Indy-Springfield portfolio, 31 units in the Peak JV 2 portfolio, and the remaining 42 units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sale agreements. The 192 units, including 92 units classified as held for sale as of December 31, 2025, were all previously classified as held for sale and sold for an aggregate of approximately $39.8 million, subject to certain closing costs, prorations and adjustments typical in such real estate transactions. After deducting the paydown of existing mortgage indebtedness encumbering 27 units in the ILE portfolio of approximately $3.8 million, the sales of the 192 units generated net proceeds of approximately $33.0 million and a gain on sales of approximately $0.9 million. The gain on sales is included in gain on sale of real estate investments, net on our consolidated statements of operations and comprehensive income (loss).

Current wording

We closed on the following sales: 55 units in the Ballast portfolio, 73 units in the Golden Pacific portfolio, 30 units in the ILE portfolio, 15 units in the Indy-Springfield portfolio, 106 units in the Peak JV 2 portfolio, and the remaining 42 units in the Peak JV 3 portfolio, pursuant to the terms and conditions of multiple separate purchase and sale agreements. The 321 units, including 99 units classified as held for sale as of December 31, 2025, were all previously classified as held for sale and sold for an aggregate of approximately $62.6 million, subject to certain closing costs, prorations and adjustments typical in such real estate transactions. After deducting the paydown of existing mortgage indebtedness encumbering 28 units in the ILE portfolio of approximately $4.0 million, the sales of the 321 units generated net proceeds of approximately $53.4 million and a gain on sales of approximately $0.7 million. The gain on sales is included in (loss) gain on sale of real estate investments, net on our consolidated statements of operations and comprehensive income (loss).

Previous wording

We increased our original capital commitment for preferred equity interests in Canvas at Wildwood by $1.5 million, increasing our total investment to $16.1 million. As of June 30, 2026, we funded $40.0 million of our $48.8 million aggregate commitment to fund capital for preferred equity interests in Archer at RiverBlue, Canvas at Wildwood, River Ford, and Sanford Marketplace.

Current wording

We increased our original capital commitment for preferred equity interests in Canvas at Wildwood by $1.5 million, increasing our total investment to $16.1 million. As of September 30, 2026, we funded $45.2 million of our $48.8 million aggregate commitment to fund capital for preferred equity interests in Archer at RiverBlue, Canvas at Wildwood, River Ford, and Sanford Marketplace.

Previous wording

As of June 30, 2026 and December 31, 2025, we classified an aggregate of 81 units and 107 units, respectively, as held for sale on our consolidated balance sheets, with all units reported in our scattered single-family homes segment. The 81 units classified as held for sale at June 30, 2026 are included in the following portfolios: 16 units of Ballast, 45 units of Golden Pacific, 8 units of ILE, 10 units of Indy-Springfield, and 2 units of Peak JV 2. As of June 30, 2025, we classified an aggregate of 94 units as held for sale, with all units reported in our scattered single-family homes segment. For the three and six months ended June 30, 2026 and 2025, we recorded impairments of $0.5 million and $0.1 million, and $1.1 million and $0.2 million, respectively, related to held for sale units which is included in impairment of real estate investments on our consolidated statements of operations and comprehensive income (loss).

Current wording

As of September 30, 2026 and December 31, 2025, we classified an aggregate of 91 units and 107 units, respectively, as held for sale on our consolidated balance sheets, with all units reported in our scattered single-family homes segment. The 91 units classified as held for sale at September 30, 2026 are included in the following portfolios: 21 units of Ballast, 65 units of Golden Pacific, 1 unit of ILE, 3 units of Indy-Springfield, and 1 unit of Peak JV 2. As of September 30, 2025, we classified an aggregate of 84 units as held for sale, with all units reported in our scattered single-family homes segment. For the three and nine months ended September 30, 2026 and 2025, we recorded impairments of $1.0 million and $0.4 million, and $2.2 million and $0.6 million, respectively, related to held for sale units which is included in impairment of real estate investments on our consolidated statements of operations and comprehensive income (loss).

Previous wording

As of June 30, 2026, we, at the request of holders, redeemed a total of 10,960 shares of Series A Preferred Stock through the issuance of 18,653 shares of Class A common stock and redeemed a total of 58,855 shares of Series A Preferred Stock for $1.4 million in cash.

Current wording

As of September 30, 2026, we, at the request of holders, redeemed a total of 10,960 shares of Series A Preferred Stock through the issuance of 18,653 shares of Class A common stock and redeemed a total of 117,176 shares of Series A Preferred Stock for $2.8 million in cash.

Previous wording

As of June 30, 2026, we issued 351,304 shares of Series B Preferred Stock pursuant to the Series B Preferred Offering with net proceeds of approximately $6.9 million after commissions, dealer manager fees, sales discounts and costs related to establishing the offering of Series B Preferred Stock. As of June 30, 2026, we had not redeemed any shares of Series B Preferred Stock.

Current wording

As of September 30, 2026, we issued 652,187 shares of Series B Preferred Stock pursuant to the Series B Preferred Offering with net proceeds of approximately $13.5 million after commissions, dealer manager fees, sales discounts and costs related to establishing the offering of Series B Preferred Stock. As of September 30, 2026, we had not redeemed any shares of Series B Preferred Stock.

Previous wording

Our total stockholders’ equity decreased $7.8 million from $128.7 million as of December 31, 2025 to $120.9 million as of June 30, 2026. The decrease in our total stockholders’ equity is primarily attributable to net loss attributable to common stockholders of $6.9 million and common stock dividends declared of $1.0 million.

Current wording

Our total stockholders’ equity decreased $10.9 million from $128.7 million as of December 31, 2025 to $117.8 million as of September 30, 2026. The decrease in our total stockholders’ equity is primarily attributable to net loss attributable to common stockholders of $10.1 million and common stock dividends declared of $1.5 million, partially offset by Class A common stock issuances, net of forfeitures, of $0.4 million.

Previous wording

The following is a summary of our consolidated operational results by reportable segment for the three and six months ended June 30, 2026 and 2025 ($ in thousands, except average rental rates):

Current wording

The following is a summary of our consolidated operational results by reportable segment for the three and nine months ended September 30, 2026 and 2025 ($ in thousands, except average rental rates):

Previous wording

The following is a summary of our preferred equity investments as of June 30, 2026:

Current wording

The following is a summary of our preferred equity and loan investments as of September 30, 2026:

Previous wording

Rental and other property revenuesincreased $2.6 million, or 16%, to $19.3 million for the three months ended June 30, 2026 as compared to $16.7 million for the same prior year period. The increase was primarily due to: (i) the acquisition of 897 units at three residential communities, which was partially offset by sales of 280 single-family units in our portfolio since April 1, 2025. We also benefitted from a 2.2% increase in average occupancy in our residential communities, which was 94.9% during the three months ended June 30, 2026, compared to 92.7% during the second quarter of 2025. This was partially offset by a 5.9% decrease in average occupancy in our single-family homes, which was 84.6% during the three months ended June 30, 2026, compared to 90.5% during the second quarter of 2025. The decrease in average occupancy in our single-family homes was lower due to units at Ballast and Golden Pacific intentionally held vacant in preparation for sale.

Current wording

Rental and other property revenuesincreased $2.2 million, or 13%, to $18.8 million for the three months ended September 30, 2026 as compared to $16.6 million for the same prior year period. The increase was primarily due to the acquisition of 625 units at two residential communities, offset by sales of 363 single-family units in our portfolio since July 1, 2025. We also benefitted from a 0.5% increase in average occupancy in our residential communities, which was 93.7% during the three months ended September 30, 2026, compared to 93.2% during the third quarter of 2025. This was partially offset by a 6.3% decrease in average occupancy in our single-family homes, which was 82.7% during the three months ended September 30, 2026, compared to 89.0% during the third quarter of 2025. The decrease in average occupancy in our single-family homes was lower due to units at Ballast and Golden Pacific intentionally held vacant in preparation for sale.

Previous wording

Interest income from loan investments amounted to zero for the three months ended June 30, 2026 as compared to $0.1 million for the same prior year period due to the full payoff of a loan investment in the second quarter of 2025.

Current wording

Interest income from notes receivable amounted to $0.4 million for the three months ended September 30, 2026 from a new loan investment during the third quarter of 2026, as compared to zero for the same prior year period due to the full payoff of a loan investment in the second quarter of 2025.

Previous wording

Property operating expensesincreased* $1.6 million, or 20%, to $9.8 million for the three months ended June 30, 2026 as compared *to $8.2 million for the same prior year period. The increase was primarily due to the acquisition of 897 units at three residential communities, which was partially offset by sales of 280 single-family units in our portfolio since April 1, 2025.

Current wording

Property operating expensesincreased $1.6 million, or 18%, to $10.3 million for the three months ended September 30, 2026 as compared to $8.7 million for the same prior year period. The increase was primarily due to the acquisition of 625 units at two residential communities, which was partially offset by sales of 363 single-family units in our portfolio since July 1, 2025.

Previous wording

Property management and asset management fee expenses were $1.3 million for the three months ended June 30, 2026 as compared to $1.3 million in the same prior year period. Property management fees are based on a stated percentage of property revenues and asset management fees are based on a stated percentage of capital contributions or assets under management, where applicable.

Current wording

Property management and asset management fee expenseswere $1.4 million for the three months ended September 30, 2026 as compared to $1.3 million in the same prior year period. Property management fees are based on a stated percentage of property revenues and asset management fees are based on a stated percentage of capital contributions or assets under management, where applicable.

Previous wording

General and administrative expenses amounted to $2.5 million for the three months ended June 30, 2026 as compared to $2.7 million for the same prior year period. Of the $2.5 million total expense in the second quarter 2026, $1.5 million relates to direct costs incurred by us, while the remaining $1.0 million relates to the operating expense reimbursement to our Manager, which includes rent, utilities, accounting and legal services, and IT expenses.

Current wording

General and administrative expenses amounted to $2.8 million for the three months ended September 30, 2026 as compared to $2.7 million for the same prior year period. Of the $2.8 million total expense in the third quarter 2026, $1.8 million relates to direct costs incurred by us, while the remaining $1.0 million relates to the operating expense reimbursement to our Manager, which includes rent, utilities, accounting and legal services, and IT expenses.

Previous wording

Management fees to related party amounted to $2.7 million for the three months ended June 30, 2026 as compared to $2.6 million for the same prior year period. The increase was due to an increase in equity primarily from our Series B Preferred Offerings. For the second quarter of 2026, we will pay $0.2 million of the base management fee in C-LTIP Units with the remainder in cash.

Current wording

Management fees to related partyamounted to $2.7 million for the three months ended September 30, 2026 as compared to $2.6 million for the same prior year period. The increase was due to an increase in equity primarily from our Series B Preferred Offerings. For the third quarter of 2026, we will pay $0.2 million of the base management fee in C-LTIP Units with the remainder in cash.

Previous wording

Acquisition and other transaction costs were $0.6 million for the three months ended June 30, 2026 and amounted to $0.1 million for the same prior year period. Acquisition costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods

Current wording

Acquisition and other transaction costs amounted to income of $0.4 million for the three months ended September 30, 2026, primarily due to the reimbursement of previously incurred costs. This compared to expense of $0.1 million for the same prior year period. Acquisition costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods.

Previous wording

Weather-related losses amounted to $0.2 million for the three months ended June 30, 2026 as compared to less than $0.1 million for the same prior year period. The 2026 expense relates to damage at two of our scattered single-family home investments.

Current wording

Weather-related losses amounted to $0.3 million for the three months ended September 30, 2026 as compared to less than $0.1 million for the same prior year period. The 2026 expense primarily relates to damage at two of our scattered single-family home investments.

Previous wording

Impairment of real estate investments amounted to $0.5 million for the three months ended June 30, 2026 as compared to $0.1 million for the same prior year period. An impairment loss is recognized when we determine that the carrying value of operating and/or held for sale real estate, and related intangible assets, exceeds their estimated fair value. Impairment amounts recorded during the three months ended June 30, 2026 and 2025 relate to held for sale single-family units.

Current wording

Impairment of real estate investments amounted to $1.0 million for the three months ended September 30, 2026 as compared to $4.2 million for the same prior year period. An impairment loss is recognized when we determine that the carrying value of operating and/or held for sale real estate, and related intangible assets, exceeds their estimated fair value. Impairment amounts recorded during the three months ended September 30, 2026 and 2025 relate to single-family units held for sale.

Previous wording

Depreciation and amortization expenses were $7.9 million for the three months ended June 30, 2026 as compared to $7.2 million for the same prior year period, with the increase primarily due to the acquisition of two residential communities since the second quarter of 2025. The increase was partially offset by (i) the sales of single-family units in our portfolio since the second quarter of 2025 and (ii) in-place leases being fully amortized at three residential communities prior to the second quarter of 2026.

Current wording

Depreciation and amortization expenseswere $7.2 million for the three months ended September 30, 2026 as compared to $6.8 million for the same prior year period, with the increase primarily due to the acquisition of three residential communities since the third quarter of 2025. The increase was partially offset by (i) the sales of single-family units in our portfolio since the third quarter of 2025 and (ii) in-place leases being fully amortized at one residential community prior to the third quarter of 2026.

Previous wording

Other income and expense amounted to expense of $2.8 million for the three months ended June 30, 2026 as compared to income of $0.2 million for the same prior year period. This was primarily due a $1.5 million gain on the sale of one preferred equity investment during the second quarter of 2025 and a decrease of $0.6 million in gain on sales of real estate investment from the second quarter of 2025. In addition, during the second quarter of 2026 we had increased interest expense of $0.9 million.

Current wording

Other income and expense amounted to expense of $2.4 million for the three months ended September 30, 2026 as compared to income of $0.3 million for the same prior year period. This was primarily due a $1.8 million gain on the sale of one preferred equity investment during the third quarter of 2025 and increased interest expense of $1.0 million during the third quarter of 2026.

Previous wording

Income tax expense amounted to zero for the three months ended June 30, 2026 as compared to $0.6 million for the same prior year period. The decrease was primarily due to lower income tax expense related to our preferred equity investments.

Current wording

Income tax expenseamounted to income of $0.1 million for the three months ended September 30, 2026 as compared to expense of $0.4 million for the same prior year period. The decrease was primarily due to lower income tax expense related to our preferred equity investments and the revision of a previous income tax expense estimate for one of our DST investments.

Previous wording

Interest income from loan investments amounted to zero for the six months ended June 30, 2026 as compared to $0.6 million for the same prior year period due to the full payoff of two loan investments in early-2025.

Current wording

Interest income from notes receivable amounted to $0.4 million for the nine months ended September 30, 2026 from a new loan investment during the third quarter of 2026 as compared to $0.6 million for the same prior year period when two loan investments were paid off in early-2025.

Previous wording

Property management and asset management fee expenses were $2.9 million for the six months ended June 30, 2026 as compared to $2.7 million in the same prior year period. Property management fees are based on a stated percentage of property revenues and asset management fees are based on a stated percentage of capital contributions or assets under management, where applicable.

Current wording

Property management and asset management fee expenseswere $4.2 million for the nine months ended September 30, 2026 as compared to $4.0 million in the same prior year period. Property management fees are based on a stated percentage of property revenues and asset management fees are based on a stated percentage of capital contributions or assets under management, where applicable.

Previous wording

General and administrative expenses amounted to $5.6 million for the six months ended June 30, 2026 as compared to $5.7 million for the same prior year period. Of the $5.6 million total expense for the six months ended June 30, 2026, $3.6 million related to direct costs incurred by us, while the remaining $2.0 million related to the operating expense reimbursement to our Manager, which includes rent, utilities, accounting and legal services, and IT expenses.

Current wording

General and administrative expenses amounted to $8.4 million for the nine months ended September 30, 2026 as compared to $8.4 million for the same prior year period. Of the $8.4 million total expense for the nine months ended September 30, 2026, $5.4 million related to direct costs incurred by us, while the remaining $3.0 million related to the operating expense reimbursement to our Manager, which includes rent, utilities, accounting and legal services, and IT expenses.

Previous wording

Management fees to related party amounted to $5.4 million for the six months ended June 30, 2026 as compared to $5.1 million for the same prior year period. The increase was due to an increase in equity primarily from our Series A and Series B Preferred Stock Offerings. For the six months ended June 30, 2026, we will pay $0.4 million of the base management fee in C-LTIP Units with the remainder in cash.

Current wording

Management fees to related partyamounted to $8.1 million for the nine months ended September 30, 2026 as compared to $7.8 million for the same prior year period. The increase was due to an increase in equity primarily from our Series A and Series B Preferred Stock Offerings. For the nine months ended September 30, 2026, we will pay $0.6 million of the base management fee in C-LTIP Units with the remainder in cash.

Previous wording

Acquisition and other transaction costs amounted to $0.6 million for the six months ended June 30, 2026 compared to $0.2 million for the same prior year period. Acquisition costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods.

Current wording

Acquisition and other transaction costs amounted to $0.2 million for the nine months ended September 30, 2026 compared to $0.3 million for the same prior year period. Acquisition costs can vary greatly, and the costs incurred in any given period may be significantly different in future periods.

Previous wording

Weather-related losses amounted to $0.4 million for the six months ended June 30, 2026 compared to less than $0.1 million for the same prior year period. The 2026 expenses relates to damage at three of our scattered single-family home investments and one residential community.

Current wording

Weather-related lossesamounted to $0.7 million for the nine months ended September 30, 2026 compared to $0.1 million for the same prior year period. The 2026 expense relates to damage at three of our residential communities and two of our scattered single-family home investments.

Previous wording

Depreciation and amortization expenses were $16.7 million for the six months ended June 30, 2026 as compared to $14.7 million for the same prior year period, with the increase primarily due to higher depreciation expense and amortization of in-place lease costs at two residential communities that were acquired since June 30, 2025, offset by lower amortization of in-place lease costs at two residential communities that had expense in the prior year and none in the current year.

Current wording

Depreciation and amortization expenseswere $24.0 million for the nine months ended September 30, 2026 as compared to $21.4 million for the same prior year period, with the increase primarily due to higher depreciation expense and amortization of in-place lease costs at two residential communities that were acquired since September 30, 2025, offset by lower depreciation expense at two single-family investments due to sales of single-family units and lower amortization of in-place lease costs at two residential communities that had expense in the prior year and none in the current year.

Previous wording

Other income and expense amounted to expense of $6.6 million for the six months ended June 30, 2026 as compared to expense of $0.9 million for the same prior year period. This was primarily due to a decrease in preferred returns of $1.9 million as investments in our preferred equity investments decreased to $55.6 million at June 30, 2026 as compared to $60.7 million at June 30, 2025 due to the redemption and/or sale of five preferred equity investments partially offset by two new preferred equity investments. In addition, during the six months ended June 30, 2026 we had increased interest expense of $1.1 million compared to the prior year period and during the six months ended June 30, 2025 we recorded a $1.5 million gain on the sale of one preferred equity investment.

Current wording

Other income and expenseamounted to expense of $9.0 million for the nine months ended September 30, 2026 as compared to expense of $0.6 million for the same prior year period. This was primarily due to $3.2 million of gains on the sale of two preferred equity investments during 2025 compared to zero during 2026, increased interest expense of $2.1 million, lower gains on the sale of real estate investments of $1.3 million, and a decrease in preferred returns of $1.1 million due to the redemption and/or sale of five preferred equity investments partially offset by one new preferred equity investment.

Previous wording

Income tax expense amounted to $0.1 million for the six months ended June 30, 2026 as compared to $1.0 million for the same prior year period. The decrease was primarily due to lower income tax expense related to our preferred equity investments.

Current wording

Income tax expenseamounted to less than $0.1 million for the nine months ended September 30, 2026 as compared to $1.4 million for the same prior year period. The decrease was primarily due to lower income tax expense related to our preferred equity and DST investments.

Previous wording

Our ability to access capital on favorable terms as well as to use cash from operations to continue to meet our short-term liquidity needs could be affected by various risks and uncertainties, including the risks detailed in Part I, Item 1A titled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 27, 2026. While consolidated occupancy excluding units classified as held for sale and down/renovation units remains strong at 92.3% as of June 30, 2026, in future periods we may experience reduced levels of tenant retention, and reduced foot traffic and lease applications from prospective tenants.

Current wording

Our ability to access capital on favorable terms as well as to use cash from operations to continue to meet our short-term liquidity needs could be affected by various risks and uncertainties, including the risks detailed in Part I, Item 1A titled “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 27, 2026. While consolidated occupancy excluding units classified as held for sale and down/renovation units remains strong at 92.0% as of September 30, 2026, in future periods we may experience reduced levels of tenant retention, and reduced foot traffic and lease applications from prospective tenants.

Previous wording

In October 2024, we launched a program (collectively, the “DST Program”) to sponsor and raise capital in private placement offerings of beneficial interests in specific Delaware statutory trusts (each, a “DST”) holding real properties (each, a “DST Property”). We expect that the DST Program will give us the opportunity to expand and diversify our capital raise strategies by offering what we believe to be an attractive investment product for investors that may be seeking replacement properties to complete like-kind exchange transactions and create future pipeline acquisition opportunities. In conjunction with the DST Program, our Operating Partnership has issued certain non-interest bearing demand notes in relation to its role as the master tenant (the “Master Tenant”) under certain master leases (the “Master Leases”) related to the DST Program (the “Demand Notes”), which could be called upon if the net operating cash flow is insufficient to pay the rent required under the Master Leases (subject to limited deferral rights) or satisfy its other obligations under the Master Leases. As compensation for the Operating Partnership’s obligations under the Master Leases, we will share in the rent paid by the tenants of the underlying properties in accordance with the waterfall set forth in the applicable Master Lease. As of June 30, 2026, we had four DST Properties (Amira at Westly, District at Parkview, Skytop Apartments and Southern Pines Reserve) in our DST Program and raised net offering proceeds of $149.8 million, issued demand notes of $2.3 million, and had $305.8 million in total net real estate investments associated with the DST Program. The Amira at Westly DST and Skytop Apartments DST had been fully subscribed with equity from individual investors as of June 30, 2026.

Current wording

In October 2024, we launched a program (collectively, the “DST Program”) to sponsor and raise capital in private placement offerings of beneficial interests in specific Delaware statutory trusts (each, a “DST”) holding real properties (each, a “DST Property”). We expect that the DST Program will give us the opportunity to expand and diversify our capital raise strategies by offering what we believe to be an attractive investment product for investors that may be seeking replacement properties to complete like-kind exchange transactions and create future pipeline acquisition opportunities. In conjunction with the DST Program, our Operating Partnership has issued certain non-interest bearing demand notes in relation to its role as the master tenant (the “Master Tenant”) under certain master leases (the “Master Leases”) related to the DST Program (the “Demand Notes”), which could be called upon if the net operating cash flow is insufficient to pay the rent required under the Master Leases (subject to limited deferral rights) or satisfy its other obligations under the Master Leases. As compensation for the Operating Partnership’s obligations under the Master Leases, we will share in the rent paid by the tenants of the underlying properties in accordance with the waterfall set forth in the applicable Master Lease. As of September 30, 2026, we had four DST Properties (Amira at Westly, District at Parkview, Skytop Apartments and Southern Pines Reserve) in our DST Program and raised net offering proceeds of $169.2 million, issued demand notes of $2.3 million, and had $303.9 million in total net real estate investments associated with the DST Program. As of September 30, 2026, District at Parkview was the only DST Program offering with equity interests remaining available for subscription by individual investors.

Previous wording

As of June 30, 2026, we had contractual commitments to fund future cash obligations in certain of our preferred equity investments in the aggregate of $8.8 million. In addition, we have two consolidated residential communities (Abode Wendell Falls and Harmony at Clear Creek) under construction comprised of an aggregate of 358 units. As of June 30, 2026, we estimate that the remaining costs associated with the completion of construction for these two residential communities will be approximately $107.9 million. We intend to finance these costs through a combination of available cash, proceeds from construction loans, and preferred equity capital contributions. We also committed to acquire an aggregate of 100 residential community units known as Parkside at Summers Corner. We expect acquisitions to occur in tranches as construction is completed, and as of June 30, 2026, 48 units remain to be acquired, representing an aggregate purchase price of $12.3 million. During the second quarter of 2026, two of our scattered single-family home portfolios incurred weather-related losses related to hailstorms in Illinois and Missouri. An assessment of the damage is ongoing. As of June 30, 2026, we expect that the total cost to repair all damage, which primarily includes roof and siding replacement, will be approximately $1.5 million, of which $0.2 million was incurred and recognized during the second quarter. A portion of the future costs are expected to be recognized as repair costs in weather-related losses with the remainder capitalized within buildings and improvements.

Current wording

As of September 30, 2026, we had contractual commitments to fund future cash obligations in certain of our loan and preferred equity investments in the aggregate of $5.2 million. In addition, we have two consolidated residential communities (Abode Wendell Falls and Harmony at Clear Creek) under construction comprised of an aggregate of 358 units. As of September 30, 2026, we estimate that the remaining costs associated with the completion of construction for these two residential communities will be approximately $99.3 million. We intend to finance these costs through a combination of available cash, proceeds from construction loans, and preferred equity capital contributions. We also committed to acquire an aggregate of 100 residential community units known as Parkside at Summers Corner. We expect acquisitions to occur in tranches as construction is completed, and as of September 30, 2026, 18 units remain to be acquired, representing an aggregate purchase price of $4.6 million.

Previous wording

Our primary long-term liquidity requirements relate to (i) costs for additional residential investments, including development projects, (ii) repayment of long-term debt and our revolving credit facility, (iii) capital expenditures, and (iv) cash redemption requirements related to our Series A Preferred Stock and our Series B Preferred Stock, (v) cash requirements related to our Series A Safeguard Policy and our Series B Safeguard Policy, and (v) Class A common stock repurchases under our stock repurchase plan.

Current wording

Our primary long-term liquidity requirements relate to (i) costs for additional residential investments, including development projects, (ii) repayment of long-term debt and our revolving credit facility, (iii) capital expenditures, and (iv) cash redemption requirements related to our Series A Preferred Stock and our Series B Preferred Stock, (v) cash requirements related to our Series A Safeguard Policy and our Series B Safeguard Policy, and (vi) Class A common stock repurchases under our stock repurchase plan.

Previous wording

As we did in the six months ended June 30, 2026, we may also selectively sell consolidated operating assets at appropriate times, which would be expected to generate cash sources for both our short-term and long-term liquidity needs.

Current wording

As we did in the nine months ended September 30, 2026, we may also selectively sell consolidated operating assets at appropriate times, which would be expected to generate cash sources for both our short-term and long-term liquidity needs.

Previous wording

We may also meet our long-term liquidity needs through borrowings from a number of sources, either at the corporate or project level. In October 2024, we entered into a credit agreement related to our DST Program with KeyBank National Association and a syndicate of other lenders which provides for a revolving loan with a maximum commitment amount of $50 million. We believe this revolving credit facility will serve as our primary debt source that will continue to enable us to deploy our capital more efficiently and provide capital structure flexibility as we grow our asset base. The revolving credit facility contains certain financial and operating covenants. As of June 30, 2026, we were in compliance with all covenants under our credit facility. We will continue to monitor the debt markets, including Fannie Mae and Freddie Mac, and as market conditions permit, access borrowings that are advantageous to us.

Current wording

We may also meet our long-term liquidity needs through borrowings from a number of sources, either at the corporate or project level. In October 2024, we entered into a credit agreement related to our DST Program with KeyBank National Association (“KeyBank”) and a syndicate of other lenders which provided for a revolving loan with a maximum commitment amount of $50 million. The revolving credit facility contained certain financial and operating covenants and had no outstanding balance as of September 30, 2026. The revolving credit facility matured on October 25, 2026 with no amounts outstanding, and as of the date of this Quarterly Report on Form 10-Q, we were in discussions with KeyBank regarding a replacement facility. There can be no assurance that we will enter into a new facility on acceptable terms, or at all. We will continue to monitor the debt markets, including Fannie Mae and Freddie Mac, and as market conditions permit, access borrowings that are advantageous to us.