Silver Star Properties (SSSS) Slammed by Hartman Shareholder Alliance Over Failed Strategy and Capital Destruction

Summary

Silver Star’s Failed New Direction Plan

July 24, 2025

Dear Shareholders,

Silver Star Properties REIT’s so-called “New Direction Plan” has failed. Not just quietly or gradually—but completely, publicly, and catastrophically. It has left behind a trail of plummeting asset values, broken trust, and zero evidence of a viable future.

For nearly three years, Gerald Haddock and his inner circle have operated in secrecy, refusing to share even the most basic operating information. While shareholders demanded answers, they offered deflection. While value vanished, they issued misleading press releases. And while assets were dumped for cents on the dollar, they congratulated themselves on fictional “progress.”

Let’s be clear: the New Direction Plan was never a plan—it was a smokescreen.

What Have We Seen?

• A NAV collapse from $412 million to $134 million as of June 30, 2024.
• The sale of over $395 million in legacy assets, often far below original cost.
• A sharp decline in occupancy rates and tenant retention, with key properties like Gulf Interstate and One Technology Center suffering catastrophic occupancy losses.
• The proposed $50 million preferred equity raise—recklessly subordinating shareholders to new speculative financing.

What Haven’t We Seen?

• A single detailed explanation of how the New Direction Plan creates value.
• Any disclosure of historical or current occupancy metrics.
• A breakdown of capex expenditures post-2022.
• A single viable roadmap to monetization, recapitalization, or recovery.

Despite repeated shareholder requests, SSP’s leadership has refused to release full financials, asset performance data, leasing metrics, or executive compensation details. Maryland law entitles shareholders to this information. Mr. Haddock has chosen to break the law, stonewall, distract, and litigate instead.

Make no mistake: Mr. Haddock and his team had no real plan beyond enriching themselves. They liquidated valuable assets to cover their mistakes, failed to reinvest wisely, and masked incompetence with press releases.

While Silver Star’s board members collect massive compensation and reward themselves with performance units, you—the shareholders—have lost over 70% of your equity. More than $275 million of value has been permanently destroyed.

A Better Way Forward

The Hartman Shareholder Alliance proposes a return to transparency, stability, and value realization:

• Release full, unredacted financial data right away.
• Monetize storage and Walgreens leasehold assets.
• Return capital to shareholders immediately as assets sell.

We ask you to look at the facts. If this New Direction Plan was working, you’d see results. You’d see value. You’d see growth. Instead, you see excuses.

The road Haddock built doesn’t lead to recovery, it leads to ruin and now only more time has been wasted while your equity disappears.

It’s time for new leadership, a clear plan, and honest stewardship of your investment.

As the proxy vote approaches at the end of August, remember this delay serves only Haddock. Vote for the Hartman Shareholder Alliance. Vote for transparency. Vote for a real plan forward and the return of capital to 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 Team

Source:

https://www.sec.gov/Archives/edgar/data/831616/000110465925070371/tm2521676d1_dfan14a.htm