Bluerock Homes Trust Reports 34.3% Revenue Growth in Q2 2025 Despite Increased Expenses

Bluerock Homes Trust, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenues reaching $16.8 million, a 34.3% increase from $12.5 million in the same period last year. Rental and other property revenues alone surged by 40% to $16.7 million, driven by the acquisition of 1,230 units across four residential communities and organic rent growth. However, the company also faced increased expenses, with total expenses rising to $22.2 million from $16.5 million, leading to a net loss of $5.8 million for the quarter, compared to a loss of $5.2 million in the prior year.

In terms of strategic developments, Bluerock Homes completed the acquisition of Southern Pines Reserve, a 272-unit residential community in North Carolina, for $56.6 million. This acquisition was financed through a combination of a senior loan, borrowings from a credit facility, and cash. The company also sold 85 units across various portfolios for approximately $15.1 million during the first half of 2025, generating net proceeds of about $10.7 million after paying down existing mortgage debt.

Operationally, Bluerock Homes managed a total of 5,038 residential units as of June 30, 2025, with an overall occupancy rate of 91.4%. The company reported a slight decrease in average occupancy from 92.4% to 91.7% year-over-year. The average rent per occupied unit increased by 5.2% to $1,692, reflecting effective management and market conditions. The company’s employee headcount remained stable, supporting its operational needs as it continues to expand its portfolio.

The filing also highlighted the company's ongoing commitment to maintaining its status as a Real Estate Investment Trust (REIT), which requires distributing at least 90% of its taxable income to shareholders. As of June 30, 2025, Bluerock Homes had cash and cash equivalents of $127.6 million, providing a solid liquidity position to support future investments and operational needs. The company anticipates continued growth through strategic acquisitions and development projects, despite potential challenges posed by economic volatility and rising interest rates.

Looking ahead, Bluerock Homes remains focused on its Value-Add strategy, which aims to enhance the quality of its residential assets to drive rent growth and improve margins. The company is also monitoring market conditions closely, particularly the impact of inflation and interest rate fluctuations on its operations and investment strategies.