Court Sides with Hartman in High-Stakes Showdown Over Silver Star Properties' Future

03 April 2025

Court-Mandated Shareholder Vote Follows $278 Million in Lost Value Under Current Leadership; Hartman Urges Return to Accountability and Strategic Discipline

HOUSTON – The Circuit Court for Baltimore City, Maryland issued a decisive ruling ordering Silver Star Properties (SSP) to hold an annual shareholder meeting offering shareholders a binary choice by July 21, 2025. The ruling comes after months of legal pressure and mounting evidence of gross mismanagement by current SSP leadership, led by CEO Gerald Haddock. Shareholders will now be given a choice. A court-mandated vote to determine whether the company should liquidate its assets or defer liquidation to pursue an alternate strategy proposed by current management. The company is also offering shareholders an option to replace current board members with highly qualified alternatives.

Since Haddock took over leadership following Hartman’s forced departure in October 2022, SSP has lost an estimated $278 million in net asset value attributable to common shareholders. According to SSP’s own filings, the Company’s net asset value stood at $412 million in 2020. On April 13, 2023, SSP filed a Form 8-K indicating $228 million of net asset value for the period ending December 31, 2022, which resulted in the loss of an estimated $184 million in net asset value. On September 24, 2024, SSP filed a Form 8-K indicating further decline to $134 million of net asset value for the period ending June 30, 2024. This represented an additional $93 million destruction of net asset value over the 18-month period between January 1, 2023 and June 30, 2024.

Now five months after their most recent NAV filing, Haddock and SSP colleagues are warning shareholders that a liquidation could yield zero value—underscoring the severity of their financial mismanagement. Haddock’s failed New Direction Plan allowed occupancy levels to deteriorate, failed to control operating expenses and overpaid for questionable Walgreens' leases and storage assets.

Haddock’s failed New Direction Plan resulted in:

Selling legacy assets at below-market prices, in some cases for less than their original purchase price.
Mismanaging occupancy levels, contributing to net asset value deterioration.
Poor expense management, exacerbating operating losses.
Taking excess fees and salaries, Haddock’s bloated payroll is substantially higher for what a company of SSP’s asset size should maintain.
Over leveraging the company to acquire overpriced and questionable Walgreens leases and storage assets.

Silver Star’s leadership has demonstrated a pattern of financial misrepresentation, deflection, and reckless decision-making. Judge Vittoria’s ruling is a resounding affirmation that shareholders deserve a voice and a clear path forward after years of financial erosion under Haddock’s failed leadership.

This pivotal legal decision represents a powerful moment of accountability for SSP and shareholders. We have filed a proxy providing shareholders the option to replace existing board of directors in an effort to rectify recent financial damage, failed governance and reestablish a path rooted in responsible leadership and sound business practices—hallmarks of Hartman’s tenure and ongoing success.

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Media Contact:
Melissa Rein Lively
America First PR
Direct: 602.384.4747
Email: melissa@americafirstpublicrelations.com
Website: www.americafirstpublicrelations.com