Bluerock Homes Trust Declares Increased Dividend on Series A Preferred Stock
The Bluerock Homes Trust Inc. board authorized the payment of a new special dividend with respect to its Series A redeemable preferred stock, replacing its previously announced special dividend. The company (New York Stock Exchange American: BHM) intends to pay the Series A preferred special dividends, which will be aggregated with the regular monthly dividend so as to effect a dividend rate of the average one-month term secured overnight financing rate plus 2%, subject to a 6.5% minimum and 8.5% maximum annual rate, calculated and paid monthly.
By way of example, if the average SOFR is equal to 5.3% for a particular month, the aggregate dividend per share with respect to that month would be 1/12th of 7.3% (the SOFR, plus 2%) based on the stated value of $25 per share, or $0.152. Conversely, if the average SOFR is equal to 3% for a particular month, the aggregate dividend per share with respect to that month would be 1/12th of the 6.5% annual dividend minimum based on the stated value of $25 per share, or $0.135.
The Series A preferred special dividends shall be declared for each month for which the board declares the regular monthly dividend of $0.125 per outstanding share of Series A preferred stock, commencing in May 2024 and payable in June 2024. The Series A preferred special dividends will be calculated based on the 1-month term SOFR for each day commencing on the 26th day of the prior month and ending on the 25th day of the applicable month, payable on the 5th of each month.
BHM began trading on the NYSE in October 2022. Its stated principal objective is to generate attractive risk-adjusted investment returns by assembling a portfolio of preexisting single-family rental homes and developing build-to-rent communities.
Bluerock Homes Trust Inc. is an externally managed real estate investment trust that owns and operates single-family properties located in regions of the Sunbelt and high-growth areas of the Western United States. The properties target a growing pool of middle-market renters seeking the single-family lifestyle without the upfront and ongoing investments associated with home ownership.
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