One-glance verdict
Within fair range
$27.54 our estimate vs market $8.01
Wall Street consensus: $10.00 (-63.7% lower than our fair-value estimate)
71% below our estimate
Fundamentals snapshot
Bluerock Homes Trust, Inc.
BHM · ASE · Real Estate · REIT - Residential
Current price
$8.01
52-week range
$8.02 - $13.30
Market cap
$91.86M
Balance sheet
Distressed
-0.87x Concerning
Net debt $253.18M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 8.5% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Net debt grew 246.2% over 3 years.
- Risk Return on equity was -5.9% last year — the company lost money on shareholders' equity.
What this company does
Bluerock Homes Trust, Inc.
Bluerock Homes Trust is a real estate investment trust (a company that owns properties and passes income to investors) that buys, builds, and renovates single-family homes and rental communities. It makes money from the rent it collects from tenants, focusing on fast-growing areas in the southern and western United States where housing demand is high. This strategy matters because a steady stream of renters in popular locations can lead to consistent income for the company.
How the company got here
Bluerock Homes Trust was established in late 2021 and became its own publicly traded company in October 2022. It was created by spinning off the single-family home rental business from a larger real estate company, Bluerock Residential Growth REIT. This move allowed the new company, BHM, to focus entirely on owning and managing rental homes. The goal was to create a company specifically dedicated to the growing market of renting single-family houses, rather than just apartments.
What it actually does
Bluerock Homes Trust is a special type of company called a Real Estate Investment Trust, or REIT (a company that owns and often operates income-producing real estate). Think of it like a mutual fund, but for properties instead of stocks. BHM buys, builds, and manages single-family homes and communities of homes built specifically for renting. Everyday people then pay rent to live in these homes, which is how BHM makes money. The company focuses on properties in fast-growing areas in the Sunbelt and Western United States.
Rental Homes
This is the company's main business and generates the vast majority of its revenue (the total money it brings in before expenses). BHM owns a collection, or portfolio, of single-family houses that it rents out to tenants. It acquires these homes in two main ways: by purchasing existing houses in established neighborhoods and by building entire new communities of homes specifically for renting, often called 'build-to-rent' communities. The primary customers are individuals and families who want the space and lifestyle of a single-family home without the large down payment and maintenance costs of owning one.
Value-Add Renovations
A key part of the company's strategy involves buying properties that may be a bit older or less up-to-date and then renovating them. This 'Value-Add' approach aims to make the homes more attractive to renters, which allows the company to charge more for rent. By improving the properties, they increase the net operating income (the profit left after paying for the day-to-day costs of running the property). This business is not separate from their rental homes but is a specific strategy they use to make that main business more profitable.
Real Estate Loans and Investments
Besides directly owning properties, BHM also invests money in residential real estate in other ways. This includes providing preferred equity and mezzanine loans to other developers who are building or buying residential properties. Think of this as BHM acting like a bank for other real estate projects, earning interest and returns from these investments. This is a smaller part of their business, giving them another way to profit from the housing market without having to manage the properties directly.
What management is betting on now
The company's main strategy is to keep buying and building homes in what it calls 'knowledge-economy' markets, primarily in the Sunbelt region. These are areas with strong job growth, good schools, and a high quality of life that attract a growing population. Management believes that as homeownership becomes more expensive, more middle-market families will choose to rent single-family homes long-term. They are also focused on their 'Value-Add' strategy, renovating existing properties to increase rental income and the overall value of their portfolio.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-601.00K
FY2024 Q4
$1.63M
FY2025 Q1
$-2.89M
FY2025 Q2
$8.78M
FY2025 Q3
$8.71M
FY2025 Q4
$-4.19M
FY2026 Q1
$-12.30M
FY2026 Q2
$-2.49M
Revenue
$19.33M
Net income
—
Diluted EPS
-0.90
Operating cash flow
$2.77M
Free cash flow
$-2.49M
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Sources
Revenue
$19.70M
Net income
—
Diluted EPS
-0.90
Operating cash flow
$-8.45M
Free cash flow
$-12.30M
Fetching…
Sources
Revenue
$18.91M
Net income
—
Diluted EPS
-0.75
Operating cash flow
$-491.00K
Free cash flow
$-4.19M
Fetching…
Sources
Revenue
$16.61M
Net income
—
Diluted EPS
-0.94
Operating cash flow
$13.44M
Free cash flow
$8.71M
Fetching…
Sources
Revenue
$16.80M
Net income
—
Diluted EPS
-0.66
Operating cash flow
$13.86M
Free cash flow
$8.78M
Fetching…
Sources
Revenue
$16.41M
Net income
—
Diluted EPS
-0.67
Operating cash flow
$951.00K
Free cash flow
$-2.89M
Fetching…
Sources
Revenue
$13.81M
Net income
—
Diluted EPS
-0.65
Operating cash flow
$5.00M
Free cash flow
$1.63M
Fetching…
Sources
Revenue
$12.71M
Net income
—
Diluted EPS
0.24
Operating cash flow
$1.68M
Free cash flow
$-601.00K
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Sources
Is it cheap or expensive?
Fair value $27.54 vs current price $8.01
Wall Street consensus is the average analyst price target: $10.00 (-63.7% lower than our fair-value estimate).
Our most-likely fair value is $27.54 a share — about 244.0% away from today's price of $8.01, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $253.2M. Interest coverage -0.9x.
Net debt
$253.18M
Interest coverage
-0.87x
Bluerock Homes Trust, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
BHM
BASELINE
Bluerock Homes Trust, Inc.
Total debt $426.47M Interest coverage -0.87x This is the baseline the peer rows are being compared against.
Total debt $1.28B Interest coverage 0.72x This peer still has a real interest-payment cushion, while BHM does not.
Total debt $508.48M Interest coverage 0.47x This peer still has a real interest-payment cushion, while BHM does not.
Total debt $1.59B Interest coverage 0.34x This peer still has a real interest-payment cushion, while BHM does not.
Total debt $791.89M Interest coverage 1.61x This peer still has a real interest-payment cushion, while BHM does not.
Total debt $673.71M Interest coverage 2.69x This peer still has a real interest-payment cushion, while BHM does not.
What you should know
The case for and against BHM
3 Rewards
2 Risks
Rewards
-
Revenue grew 8.5% last year.
-
Free cash flow was positive in 2/10 years.
-
Dividend yield is 6.2% with 4-year payout history.
Risks
-
Net debt grew 246.2% over 3 years.
-
Return on equity was -5.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
0.27x
P/S
1.11x
EV/EBITDA
46.34x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
48.7%
Operating margin
-14.3%
Net margin
2.6%
ROE
-5.9%
ROA
-0.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
5.70x
Quick ratio
4.73x
Total debt
$426.47M
Total cash
$173.30M
Growth
How the business has been compounding
Revenue TTM
$74.55M
Revenue 5Y CAGR
26.3%
EPS TTM
-3.49
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$7.27M
Free CF TTM
$10.40M
FCF margin
14.0%
Dividend
Shareholder payout
Yield
6.2%
Payout ratio
0.0%
Last ex-div date
2026-09-25