Hartman Shareholder Alliance Blasts Silver Star Properties REIT (SSPN) for Mismanagement, Urges Liquidation and Board Overhaul

Summary

MISMANAGEMENT OF ASSETS & OCCUPANCY DECLINE – THE COST OF LEADERSHIP FAILURE

Dear Shareholders,

When Hartman was removed from operations in October 2022, almost 3 years ago, the leadership of Silver Star Properties REIT, Inc. promised a “New Direction.” What followed instead was a period of staggering mismanagement, negligence, and collapse. They had no plan to maintain occupancy and instead fired all marketing and leasing staff.

The core duty of any real estate operator is clear: maintain strong occupancy, preserve asset value, and build long-term value. Silver Star’s current board failed at all three.

OCCUPANCY COLLAPSE

Under SSP’s current leadership, several of our most valuable properties have seen catastrophic declines in occupancy—turning once-productive assets into distressed liabilities:

· Gulf Interstate: Occupancy plummeted from 85% to 15%
· One Technology Center: Occupancy dropped from 90% to 45%

These are not market-driven fluctuations. These are the direct result of abandonment, poor leasing execution, and an utter lack of proactive asset management. In fact, the very company they hired to lease One Technology Center stole the anchor tenant, Galan Nursing who occupied 6 floors, from the building.

NO PLAN, NO PERFORMANCE

Since taking over operations, Silver Star leadership has failed to present or execute a comprehensive leasing strategy. Tenant renewals were not pursued. Marketing and retention were sidelined. Leasing teams were fired. The result was a visible decline in occupancy across the portfolio.

When you neglect tenants, they leave. When tenants leave, asset values crash. And that’s exactly what happened.

MASSIVE VALUE DESTRUCTION

The consequences of poor occupancy management became evident in fire-sale prices across the portfolio. The value of the equity dropped from $412 million to $134 million, a $278 million dollar drop which is 70% of the value.

· Westway One: Sold for $9 million despite conservative valuations between $16–$23 million
· Atrium I & II: Sold for $5.375 million – well below its expected range of $11–$15 million
· Ashford Crossing: Sold for $4.65 million, half of its $11 million valuation

Each of these sales reflects not a weak market—but weak management. When buildings are left half-empty and unmaintained, buyers discount their offers heavily. SSP’s current board failed to protect these assets, failed to stabilize occupancy, and failed to secure fair market value.

WHO PAYS THE PRICE? YOU DO.

As the value of the portfolio collapsed, so too did your investment. No distributions. No financial disclosures. No upside. Just continued excuses and mounting losses.

The Hartman Shareholder Alliance will not stand by and allow this mismanagement to continue. Our board nominees—Benjamin Thomas and Brent Longnecker—have real experience operating assets and preserving shareholder value. Our plan is to:

· Put the self-storage and Walgreen’s assets on the market for immediate sale;
· Stabilize the legacy property conditions;
· Implement aggressive leasing and renewal programs;
· Sell the legacy assets as they lease up.

It’s time to stop rewarding failure and start demanding results.

Vote to return your investment. Vote for liquidation of the Company. Vote for the Hartman Shareholder Alliance.

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 Team

Source:

https://www.sec.gov/Archives/edgar/data/831616/000110465925064674/tm2519593d1_dfan14a.htm