Bluerock Homes Trust (BHM) Announces Share Repurchase Plan

Rhea-AI Summary

Bluerock Homes Trust, Inc. (BHM) announces a $5.0 million share repurchase plan for its Class A common stock, following SEC regulations. The repurchase plan is flexible and subject to market conditions, aiming to enhance shareholder value.

Insights

Financial Analyst

Bluerock Homes Trust's announcement of a share repurchase plan signifies the company's confidence in its intrinsic value and financial stability. Share buybacks often lead to an appreciation in stock value as they reduce the number of shares available in the market, potentially increasing earnings per share (EPS) and the stock's scarcity. It is essential to consider the size of the buyback relative to the company's market capitalization. A $5.0 million repurchase plan may have a modest impact if the market cap is significantly large. Investors should evaluate the repurchase plan in the context of the company's overall capital allocation strategy, including investments in growth and debt reduction.

Market Research Analyst

The implementation of a share repurchase plan under Rule 10b-18 indicates a structured approach to buybacks, minimizing potential market disruption. By adhering to certain volume and timing restrictions, Bluerock Homes Trust aims to avoid creating artificial price movements. Market conditions will influence the execution of this plan and investors should monitor the housing market trends, as they can affect the company's stock performance and the perceived success of the repurchase program. Additionally, the repurchase plan's one-year term provides the company with flexibility to adapt to changing market conditions.

Legal Expert

Conducting the repurchase under the Exchange Act's Rule 10b-18 provides Bluerock Homes Trust with a 'safe harbor' from potential market manipulation allegations. However, the company must still comply with Rule 10b-5, which prohibits trading on material non-public information. The plan's compliance with these rules is crucial for maintaining shareholder trust and avoiding legal repercussions. Stakeholders should be aware that while the plan offers protection against certain legal risks, it does not guarantee protection against all possible regulatory or legal challenges.

NEW YORK, Feb. 22, 2024 /PRNewswire/ -- Bluerock Homes Trust, Inc. (NYSE American: BHM) (the "Company") today announced that its Board of Directors has authorized a new plan for the repurchase of up to $5.0 million of its outstanding shares of Class A common stock (the "Class A Common Stock"). The repurchase plan will be conducted in accordance with the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and subject to Rule 10b-5 of the Exchange Act.

The repurchase plan has a term of one year and may be discontinued at any time. The extent to which the Company repurchases shares of its Class A Common Stock under the repurchase plan, and the timing of any such repurchases, will depend on a variety of factors including general business and market conditions and other corporate considerations. The Company expects to repurchase shares of its Class A Common Stock through open market transactions, subject to market conditions, certain price limitations and other conditions established thereunder. Open market repurchases will be structured to occur within the method, timing, price and volume requirements of Rule 10b-18 of the Exchange Act.

About Bluerock Homes Trust, Inc.
Bluerock Homes Trust, Inc. (NYSE American: BHM), headquartered in New York, New York, is an externally managed REIT that owns and operates high-quality single-family properties located in attractive markets with a focus on the knowledge-economy and high quality of life regions of the Sunbelt and high growth areas of the Western United States. BHM's principal objective is to generate attractive risk-adjusted investment returns by assembling a portfolio of pre-existing single-family rental homes and developing build-to-rent communities. BHM properties are located across a diverse group of growth markets and will seek to target a growing pool of middle-market renters seeking the single-family lifestyle without the upfront and ongoing investments associated with home ownership. For more information, please visit bluerockhomes.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the risk factors set forth in Item 1A of the Company's Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on March 22, 2023, and subsequent filings by the Company with the SEC. We claim the safe harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of 1995.

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SOURCE Bluerock Homes Trust, Inc.

FAQ

What did Bluerock Homes Trust, Inc. (BHM) announce regarding its Class A common stock?

Bluerock Homes Trust, Inc. (BHM) announced a new plan for the repurchase of up to $5.0 million of its outstanding shares of Class A common stock.

Under which regulations will the repurchase plan be conducted?

The repurchase plan will be conducted in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and subject to Rule 10b-5 of the Exchange Act.

What factors will determine the extent and timing of share repurchases?

The extent and timing of share repurchases under the plan will depend on factors like general business and market conditions, as well as other corporate considerations.

How does Bluerock Homes Trust, Inc. (BHM) plan to repurchase shares?

The company expects to repurchase shares through open market transactions, adhering to market conditions, price limitations, and other established conditions under Rule 10b-18 of the Exchange Act.