Bluerock Homes Grows Portfolio

Despite expanding its residential footprint and securing new investments, the company reported a net loss driven by higher expenses and impairments.

November 07, 2025

A Growing Residential Platform

Bluerock Homes Trust is staying active in a volatile market. In Q3 2025, the company expanded its portfolio, added new development projects, and raised capital through both preferred equity and its DST program. At the same time, it worked through rising costs and market-driven impairments that pushed its year-to-date net loss to $23.1 million.

As of September 30, Bluerock had 22 real estate investments on its books. That includes 17 consolidated operating properties and 5 preferred equity positions, representing a total of 5,282 residential units. Of these, 358 are under development.

The quarter’s biggest moves came through acquisitions. Bluerock closed on two new properties: Southern Pines Reserve, a 272-unit community in North Carolina, and Skytop Apartments, a 361-unit complex in Ohio. Both were structured through DSTs and funded using a mix of mortgage debt, credit facility borrowings, and equity. The company also acquired land in Kansas for a new 188-unit development, expanding its pipeline in the Sunbelt and Western U.S. regions.

The real estate portfolio now totals over $857 million in gross operating investments, up from $704 million at the end of last year. Occupancy across operating properties remained strong at 91.8%, or 93.7% excluding units held for sale or under renovation.

Operating Results and Income Drivers

Rental and property-related revenues reached $49.2 million through the first nine months, a 42% increase from the same period last year. But expenses rose faster. Depreciation, management fees, and general overhead contributed to total expenses of $66.6 million.

The company’s bottom line reflected those pressures. It reported a $10.0 million net loss for the third quarter and a $23.1 million net loss year to date. Interest expense and a $3.8 million impairment tied to its scattered single-family homes portfolio were key factors.

Still, Bluerock generated positive contributions from preferred equity income, investment fund gains, and real estate sales. It also improved liquidity, with $162.7 million in cash and equivalents on hand as of quarter-end, up from $115.2 million at year-end 2024.

Capital Flows and Asset Rotation

Bluerock continues to rotate capital through its DST program and investment partnerships. The company raised roughly $75 million from DST investors across three offerings, giving it a channel to recycle equity while retaining operational control through master leases. Skytop Apartments and Southern Pines Reserve were both structured this way.

On the disposition side, Bluerock sold 104 single-family units across four portfolios, generating $18.4 million in gross proceeds and recording a $2.0 million gain. These sales were part of a broader portfolio review, targeting assets with lower return expectations.

Strategic Shifts in Preferred Equity

Bluerock also rebalanced its preferred equity exposure. The company exited four positions through redemptions or sales and added three new investments, including Sanford Marketplace, a 300-unit development in North Carolina. As of quarter-end, Bluerock held $45.1 million in preferred equity across five projects, down from $81.7 million at year-end.

In addition, the company committed $25 million to the Marble Capital Income and Impact Fund. That investment, which is accounted for under the equity method, gives Bluerock access to a diversified pool of multifamily and build-to-rent assets across the U.S.

Series A Preferred and Common Stock Programs

Bluerock continues to raise capital through its Series A Preferred Stock offering. During the quarter, the company issued 1.5 million shares, bringing total issuance to 6.1 million. It also implemented a new redemption safeguard policy designed to protect holders opting to convert shares to common stock.

The company’s common stock repurchase plan remained in place throughout the period, though no shares were repurchased as of September 30.

Looking Ahead

Bluerock’s strategy remains focused on high-growth markets and value-add residential opportunities. The company is investing in new development, recycling capital through its DST platform, and maintaining REIT compliance through regular distributions.

At the same time, management is keeping a close eye on cost pressures and market risk. Inflation, interest rate shifts, and supply chain volatility continue to shape timelines and financing terms. With $183 million in liquidity and new investment vehicles in place, Bluerock appears positioned to stay flexible as market conditions evolve.