Hartman Shareholder Alliance Opposes $50M Equity Raise at Silver Star Properties REIT (SSPN), Slams Board for Reckless Asset Sales and Dilution Plan

Summary

FINANCIAL RECKLESSNESS & DILUTION SCHEME: STOP SILVER STAR’S PLAN TO FURTHER DEVALUE YOUR EQUITY

To the Shareholders of Silver Star Properties REIT, Inc.,

Silver Star Properties has abandoned even the appearance of sound financial management. In a span of less than two years, the company has liquidated nearly $400 million in quality income-generating assets—and instead of returning that capital to you, the rightful owners, it has reinvested it in high-risk, underperforming ventures and is now pursuing a scheme that would dilute your stake, increase your risk, and benefit outsiders at your expense.

This is financial malpractice dressed up as strategy.

$395.9 MILLION SOLD. $0 RETURNED TO YOU.

Since the ouster of Al Hartman in 2022, Silver Star has sold off $395.9 million in legacy assets—assets that previously delivered reliable income and NAV appreciation. But rather than reward shareholders or preserve capital, Silver Star recently funneled $32.8 million of your money into speculative acquisitions that:

· Were not part of the company’s original investment thesis
· Offer negative cash flow out of the gate
· Are loaded with unsustainable debt obligations, including 19% interest rate loans

For every $1 in net operating income these assets generate, they require nearly $1.50 in debt service. That’s not positive leverage—it’s a ticking time bomb.

THE $50 MILLION DILUTION SCHEME

Now, rather than admit failure and return remaining capital, Silver Star leadership is pushing a $50 million preferred equity raise. Let us be clear about what this means:

· Your common shares will be subordinated
· Dividends will be diverted to new preferred investors—not to you
· Risk increases while value continues to erode

This is a not a strategy for growth or recovery.

NO VALUE. NO VISION. NO SHAME.

SSP leadership is trying to mask these failures by spinning narratives—blaming prior leadership, citing “deferred maintenance,” and promising future upside. But the math doesn’t lie. The value of the Company has dropped 70%.

This is the definition of reckless.

VOTE TO END THE ABUSE

The Hartman Shareholder Alliance is offering a different path. A responsible path. One rooted in accountability, fiduciary duty, and capital preservation. Our nominees will:

✅ Halt the preferred equity raise
✅ Conduct a forensic audit of asset sales and expenditures
✅ Begin a structured wind-down of the trust to return capital to you
✅ Restore transparency and stop the enrichment of insiders

You can still have a return on your investment.

Vote FOR the Hartman Shareholder Alliance.

Vote to restore control, recover value, and return Silver Star to its true owners—you, the shareholders.

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/831616/000110465925064141/tm2519502d1_dfan14a.htm