Hartman Group Blasts Silver Star Properties (SLVS) for $400M Asset Sell-Off and Dilution Scheme, Urges Shareholders to Vote for Accountability
Summary
FINANCIAL RECKLESSNESS & DILUTION SCHEME: LET’S STOP SILVER STAR’S DESTRUCTION
To the Shareholders of Silver Star Properties REIT, Inc.,
Silver Star Properties has not just failed—it has betrayed your trust. In just two years, this board has liquidated nearly $400 million in quality, income-generating assets, destroyed shareholder value, and funneled proceeds into unprofitable, high-risk ventures with zero accountability and no return to you—the rightful owners.
This is not strategy.
This is not mismanagement.
This is financial malpractice—deliberate, arrogant, and indefensible.
$395.9 MILLION SOLD. $0 RETURNED. $32 MILLION IN PROFIT—SQUANDERED.
Between 2022 and 2024, Silver Star sold off $395.9 million in legacy assets—a portfolio that once generated stable income with a strong NAV. Those sales created an estimated $32 million in realized profit—not paper gains, but real money that should have been returned to you.
Instead, what did you get?
Nothing.
No dividends.
No return of capital.
No transparency.
That $32 million in realized equity gains wasn’t reinvested into growth—it was siphoned into speculative acquisitions, including Walgreens leaseholds and storage properties that bleed cash and require nearly 50% more in debt service than they earn.
$5.8M in NOI.
$8.7M in debt service.
19% interest debt.
That’s not a “new direction.” It’s a direct route to insolvency.
THEY’RE LYING TO COVER THEIR LOSSES
To justify their recklessness, the board invented a fairy tale: “deferred maintenance”. But the facts—and their own public filings—say otherwise:
· In early 2023 and 1H 2024, under Hartman’s exit-era leadership, assets were sold at $83 to $106 per sq ft. or double what was paid for them.
· After Haddock’s takeover and the failed “New Direction,” asset values plummeted—dropping to just $36–$38 per sq ft in late 2024 and 2025.
· Legacy assets didn’t suddenly degrade. They were mismanaged, occupancy dropped, values declined, and sold at fire sale prices.
And yet SSP leadership continues to stonewall you.
No leasing or occupancy updates.
No sales price transparency.
No real-time financial disclosures.
They are violating the law by not disclosing the above information in accordance with the “Books and Records Request”.
THE DESTRUCTION IS DOCUMENTED IN THEIR OWN FILINGS
Per Silver Star’s publicly available filings:
· In mid-2022, the company reported $412 million in total asset value.
· By June 2024, that figure dropped to $134 million.
That’s nearly $300 million in lost value in just two years.
Not a misstep. A catastrophic collapse.
And now they want you to believe they’re still on track.
HARTMAN’S PLAN: DISCIPLINED, TRANSPARENT, ACCOUNTABLE
The Hartman Shareholder Alliance offers the only path forward that respects your investment and defends your rights:
þ Halt the dilution scheme immediately
þ Conduct a full forensic audit of every sale and acquisition
þ Implement a structured, transparent wind-down of the REIT
þ Return capital directly to shareholders as assets are sold
We don’t promise dreams—we deliver dollars.
We don’t speak in spin—we act in facts.
You’ve waited long enough.
VOTE TO STOP THE BLEEDING. VOTE TO TAKE BACK CONTROL.
This board has proven it can’t be trusted.
Don’t give them another dollar.
Don’t give them another day.
Vote FOR the Hartman Shareholder Alliance.
Vote to recover what’s yours.
Vote to restore accountability.
See the attached proxy letter for more details. Click here to read the full letter.
Call us directly at (619) 664-4780 to vote for the return of your capital or vote the blue proxy from our online e-mail.
Thank you for your trust and support.
Sincerely,
Al Hartman
The Hartman Shareholder Alliance
Source:
https://www.sec.gov/Archives/edgar/data/831616/000110465925066114/tm2519896d2_dfan14a.htm
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