Key Highlights

  • Rental and other property revenues rose 13.3% to USD 18.8 million in the third quarter, and net Operating Income increased 8.1% to USD 8.5 million, led by residential communities at USD 6.7 million.
  • Diluted FFO attributable to common stockholders and unit holders was negative USD 0.35 a share against negative USD 0.31, while core FFO was negative USD 0.13 a share against negative USD 0.03.
  • Net loss per common share was USD 0.81 against USD 0.94, with the net loss attributable to common stockholders at USD 3.2 million compared with USD 3.7 million a year earlier.
  • Consolidated operating investments were 89.4% occupied at September 30, 2026, or 92.0% excluding held-for-sale and renovation units, across 4,172 consolidated units, of which 440 were under development or in lease-up.

Residential Communities Offset Single-Family Shrinkage

Bluerock Homes Trust (NYSEAMERICAN:BHM) filed its Quarterly Report for the period ended September 30, 2026 on November 10, 2026. Total Revenue rose USD 2.2 million, mainly from buying 625 apartment units at two communities, while the sale of 363 single-family homes since July 1, 2025 weighed. Residential community revenue climbed 40.7% to USD 12.8 million and its net operating income rose 43.8% to USD 6.7 million. Scattered single-family home revenue fell 19.8% to USD 6.0 million, and its net operating income fell 43.7% to USD 1.8 million. Over nine months, revenue rose 17.5% to USD 57.8 million and net operating income rose 16.3% to USD 28.7 million.

Why FFO Stayed Negative Despite Higher Income

The trust owns apartments, build-to-rent communities and single-family homes in Sunbelt and Western markets, and as a REIT it reports funds from operations (FFO). Diluted FFO was negative USD 4.6 million in the quarter against negative USD 3.9 million, and nine-month FFO was negative USD 16.7 million against negative USD 10.0 million. Property operating expenses rose 17.9% to USD 10.3 million, faster than revenue, and preferred dividends rose to USD 2.9 million from USD 2.4 million. Core FFO, which adds back items such as non-cash interest and Equity compensation, was negative USD 1.75 million. Nine-month net loss per common share was USD 2.61 against USD 2.27.

Occupancy Gap and a Development Pipeline

Average occupancy slipped to 89.6% from 91.2% as single-family homes fell to 82.7% from 89.0%, partly because units were deliberately kept vacant ahead of sales, while communities improved to 93.7%. Average rent was USD 1,699, up 0.2%. The trust holds preferred equity in 1,149 planned or operating units, and its development pipeline includes projects in North Carolina, Florida and Georgia. It is externally managed and funds growth partly through a program of private placements and preferred stock. Rising interest rates, financing access and renovation risk are among the risks the filing names. Several communities are held through a program selling interests in Delaware statutory trusts to individual investors.

Where Things Stand

Revenue growth did not translate into positive FFO. Bluerock Homes Trust (NYSEAMERICAN:BHM) grew quarterly revenue 13.3% and net operating income 8.1%, yet diluted FFO per share was negative USD 0.35 as operating costs, preferred dividends and interest absorbed the gains. Communities are strengthening while single-family homes shrink through sales, which trims occupancy and income. Watch lease-up at newer communities, the progress of single-family dispositions, development completions into 2027 and whether core FFO turns back toward positive.