I write to you as a deeply concerned shareholder in Silver Star who has watched, with growing alarm, the consistent destruction of shareholder value under the current Directors and executive team.
Over the past 32 months since my departure, the Board of Directors and executive team have presided over:
- ·Significant share price underperformance, with stock price dropping over 66% to its current $2.01 price per share.
- Deteriorating financial results, marked by net asset value attributable to shareholders declining from $412 million on December 31, 2021, to an estimated $134 million as of June 30, 2024 (their last published price per share).
- Strategic missteps, including decreasing occupancy and deteriorating property conditions, resulting in recent fire-sales of assets, replacing debt at astronomically high interest rates at 19%, and capital misallocation by acquiring high-priced self-storage and Walgreens properties without your consent or prioritization of your return of capital.
- Poor corporate governance, including a lack of accountability, limited transparency, and a Board lacking the necessary skills, independence, and shareholder focus. Despite the destruction of value, Haddock (CEO and executive chairman of Silver Star) just awarded himself 1,000,000 shares of stock, further diluting your investment.
Despite numerous calls for change, transparency, and an annual shareholder vote, the current Board has shown little willingness to acknowledge the company’s failures—let alone correct them. Instead, they lodge unbased claims about me and my leadership and have intentionally refused to listen to your voice and desire to hold an annual shareholder meeting.
This is why I have taken the extraordinary step of nominating an alternative slate of director candidates—a highly qualified group of independent, experienced professionals with proven track records in value creation, corporate governance, and operational excellence.
Our Vision
Our alternative slate is committed to:
- Immediate return of capital to shareholders in the near term.
- Restoring financial discipline by monetizing newly purchased assets and paying off the current debt facilities.
- Driving occupancy of legacy assets to unlock near-term value and liquidity.
- Installing rigorous oversight of management to ensure decisions are aligned with shareholder interests.
- Increasing shareholder value by decreasing executive compensation, paying off the debt, and positioning the legacy assets for successful dispositions.
We firmly believe that change at the board level is not only necessary – it is the only option for the preservation of your value and future liquidity.
Your Vote Matters
Starting Tuesday, June 3rd, you will have an opportunity to vote for a better future for Silver Star. We urge you to support our independent nominees and send a clear message that the status quo is unacceptable.
This is a pivotal moment for our investment. Let’s seize it—together.
Please don’t hesitate to reach out to us at ir@hartman-investments.com to learn more about our nominees, platform, or to share your thoughts.
Thank you for your support.
God Bless,
Allen R. Hartman
On behalf of Concerned Silver Star Shareholders
