Hartman Group Slams Silver Star (SVSP) Over Occupancy Collapse, Urges Removal of Board Ahead of August 29 Vote

Summary

Dear Shareholders,

There has been an overt systematic process of value destruction at Silver Star. There are only six legacy assets left, and they are doing almost no leasing. They are in fact, losing more occupancy every day. The occupancy on these properties is about 27% less than when I was operating the company 3 years ago. Below is a list that showed what occupancy was when I was running the company, what it is now, and comments from the brokers regarding how poorly Silver Star is managing the properties.

· Three Forest Plaza had a prior occupancy of 80%, currently at 57.0%.

· Westheimer went from 80% to 55.7%, with comments noting: "Ownership has been difficult to do deals with."

· 601 Sawyer dropped from 85% to 58.8% and has the same ownership-related issues.

· The Preserve declined from 90% to 68.9%, also citing difficulty in ownership negotiations. This property always stayed well leased when we operated it.

· One Technology saw occupancy fall from 90% to approximately 50%. The broker listing was dropped due to lack of funding from ownership. This is the same broker who stole the Galan Nursing tenant that occupied 6 floors. They now have no one leasing the property.

· Cornerstone decreased from 70% to approximately 50%.

Overall Average: Prior occupancy was at approximately 83%, current occupancy is at 56.7%.

Their claim in the last letter that they can somehow create value is totally misleading and untruthful. If they are currently destroying values with the current assets, how are they somehow going to wave a magic wand and create value going forward?

I would highly recommend that you reach out to these close to 80-year-old board members and demand that they stop liquidating the properties at fire sale prices so value can be preserved in the company. Tell them you don’t want your capital tied up for 5 more years with their hair brained schemes. Tell them to honor the outcome of the vote on August 29th and to not cheat like they did on the consent revocation, and to not delay further. We want them removed immediately before they further destroy the company. They can be reached at the following email and phone numbers:

Gerald Haddock Gerald@haddockinvestments.com 817-307-5146

Jim Still jim.still@rdcadvisors.com 267-226-0241

J. Tompkins jtompkins@artaequity.com 713-817-3515

You received a letter from Silverstar on Thursday. The underlying issue addressed by the letter is in regard to discovery issues. The Court has ordered certain documents be produced and deposition be taken. The attorney's fees referenced in the letter relate to the discovery issues and are approximately $2,300. Our attorney is addressing these issues.

Proverbs 11:3 “The integrity of the upright will guide them, but the crookedness of the treacherous will destroy them. “

Proverbs 11:5b “…But the wicked will fall by his own wickedness.”

Proverbs 11:6b “…But the treacherous will be caught by their own greed.”

Give God all the glory and praise for the tremendous victory over evil and destructive people.

Sincerely,

Al Hartman

Source:

https://www.sec.gov/Archives/edgar/data/831616/000110465925076846/tm2523290d1_dfan14a.htm