Hartman Shareholder Alliance Slams Silver Star Properties REIT (SSPN) for Reckless Acquisitions and Mismanagement, Urges Shareholders to Remove Current Leadership

Summary

SILVER STAR FAILS REAL ESTATE 101

June 24, 2025

Dear Shareholders,

You buy real estate to put your money to work for you and receive a return for your equity – the higher the better SILVER STAR HAS DONE THE EXACT OPPOSITE. Silver Star took $32.8 million dollars of your equity (proceeds they should have returned to you the shareholder) and bought new assets generating $5.8 million net operating income and $8.693 million in interest costs. THIS IS INDEFENSIBLE.

1 Assumed 55% NOI for Storage and 85% for Leasehold Interests.

In their haste to execute on their Failed New Direction Plan and appear legitimate in their leadership of the Company, they missed the essential principle of success in real estate investing . . . buy with an eye to profit! Silver Star used your equity to buy marginal properties generating an income of approximately 3-5%, added expensive debt, and then delivered to you the investor the resulting negative cash flow.

Southern Star Whistleblower Discloses Silver Star Mismanagement

Silver Star purchased the self-storage operation Southern Star for $3 Million dollars without paying the sellers.

I received a phone call a few weeks ago from a whistleblower who was part owner of The Southern Star Company. He described Silver Star’s operations as so poor that the occupancy dropped, the income dropped, and they operated so poorly that they did not pay property expenses and utilities and as a result the properties’ utilities were cut off. The first thing Silver Star did when they took over was to stop the distributions to the investors. Despite all this destruction of value, Haddock took the $3 million dollar acquisition price and put it on Silver Star’s balance sheet for $30 million dollars. Another deceptive move by Haddock.

A fiduciary acts ethically and legally on behalf of shareholders. Silver Star has done neither. Vote today for their removal as fiduciaries of your real estate investment.

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/831616/000110465925063033/tm2519251d2_dfan14a.htm