Bluerock Homes Trust Grants Incentive Units to Executives

Equity-linked awards replace part of cash fees to balance alignment with liquidity needs.

August 21, 2025

Bluerock Homes Trust shifted part of its second-quarter 2025 management fee into equity-linked incentive units, sending the awards directly to its top executives. The move keeps leadership compensation tied to company performance while easing near-term cash use.

Compensation framework

Bluerock operates under a management agreement with Bluerock Homes Manager that calls for a quarterly base fee. The board approved payment of $210,000 of the Q2 2025 fee in long-term incentive plan units of the operating partnership, with the remainder in cash.

Executive salary elections

In December 2024, Chief Executive Officer R. Ramin Kamfar and President Jordan Ruddy elected to take a portion of their 2025 base salaries in incentive units. That election applied to Q2. On August 19, 2025, a total of 16,012 units were issued: 11,437 to Kamfar valued at $150,000 and 4,575 to Ruddy valued at $60,000. These grants represented 80 percent of each executive’s base salary for the quarter.

How the units work

The units vested on issuance. They can convert into partnership interests and may later be redeemed for cash or, after the required holding period, exchanged for Class A common shares. The executives will receive distribution equivalents that track dividends paid on the company’s common stock.

Regulatory footing

The company relied on private offering exemptions under federal securities laws to complete the awards, noting that both executives qualify as accredited investors with a longstanding relationship to the organization.

Why it matters

Preserves liquidity: Paying part of the fee in equity reduces immediate cash outlays.
Aligns incentives: Linking pay to equity exposure ties outcomes for management and shareholders.
Consistent approach: Reflects a broader practice among externally managed real estate firms to use incentive units for senior leadership compensation.

By directing a portion of the quarterly fee into vested incentive units, Bluerock keeps compensation closely connected to long-term performance while maintaining flexibility in cash management.