The Company’s value stood at $412 million, dropping to $134 million for the period ending June 30, 2024. Silver Star is scapegoating “deferred maintenance” as the reason for the losses and drop in occupancy. The truth is, Silver Star had no serious plan in place to lease and maintain their legacy real estate portfolio and retain value.
Legacy assets sales in 2023 realized 2.058 times the original cost. Legacy asset sales in the first half of 2024 realized 1.47 times the original cost. Legacy asset sales in the second half of 2024 realized 57.4% of the original cost. Lastly, Legacy asset sales in the first half of 2025 realized 51.6% of original cost. This gradual and consistent reduction of price each 6-month period is proof positive of operational mismanagement and directly refutes the contrived argument that my “Deferred Maintenance” devalued your investment. When I was there, there was no deferred maintenance, and as a result the properties that sold in the first 6 months after I left got high prices. As time went on, deferred maintenance occurred, and the values started dropping dramatically.
“Deferred Maintenance” is a red herring. Silver Star forced me out of the company 33 months ago and I am not accountable for their fire selling legacy assets. We spent more than $13M per year on maintaining the properties and staffed six Engineering Managers with a cumulative of 50 years of experience compared to Silver Star’s one person with no experience. Silver Star has chosen to conceal their record of maintenance on the properties, and all records of their management, by ignoring a “Books and Records” legal request. Silver Star talking points are unsubstantiated by actual documentation.
The collapse in value is due to operational mismanagement and the drop in occupancy. Vote for a change in leadership for an orderly liquidation of the Company and to return your capital.
Sincerely,
Al Hartman
