#USA #Houston #Real Estate #Silver Star REIT #Al Hartman

Silver Star Properties REIT Sets the Record Straight

In a recent update, Silver Star Properties REIT, Inc. reaffirmed its commitment to transparency and clarity following a misguided communication from former CEO Al Hartman. On January 28, 2025, the self-managed real estate investment trust, which is currently transitioning into the self-storage asset class, took decisive steps to address misrepresentations being circulated regarding a court decision in Maryland litigation.

This communication was a follow-up to an earlier message from January 24, where the company already began clarifying the realities against Hartman’s recent narrative. Hartman’s January 27 message included claims that misrepresented the court’s findings, particularly regarding his credibility, which has been called into question by the ruling. Silver Star firmly believes it is crucial for shareholders to receive accurate and factual updates, rather than be misled by baseless assertions.

Key Misrepresentations

One primary issue highlighted by the Company is Hartman’s depiction of the recent court order. Contrary to Hartman's claims, the court’s opinion does not vindicate him; rather, it points to credibility issues he has faced. In fact, the court's memorandum detailed five instances that raised doubts about Mr. Hartman's honesty. This starkly contrasts with his narrative that suggests he has been vindicated by the ruling.

The court stated explicitly, "The Court found Plaintiff to have general credibility issues stemming from instances in which Plaintiff had been shown to be dishonest." With such serious accusations against a former leader, the Company feels it must stand firm and protect its reputation as well as that of the current leadership team.

Additionally, Hartman’s correspondence included slanderous remarks directed at the company and its executives, which the Company dismisses as unfounded. Silver Star expressed disappointment in his behavior, especially given his previous role as a leader within the organization.

The Facts of the Case

Silver Star emphasized that the recent court decision truly does not support Hartman’s attempts to undermine the credibility of the current management team. In response to Hartman’s claim that the lis pendens filed on Silver Star’s properties caused no damage, the court clearly articulated otherwise. The judge remarked that the lis pendens negatively impacted the company’s ability to market its office assets, thereby jeopardizing refinancing efforts. This ultimately led to significant costs incurred by the company in the wake of legal proceedings.

Silver Star reassures its shareholders that all executive committee members and leadership staff are dedicated to ensuring the best outcomes for the company. They will not shy away from addressing falsehoods that could hamper the organization’s integrity and impact the stakeholders negatively.

Ongoing Commitment to Shareholders

The leadership at Silver Star is committed not only to addressing misinformation but also to maintaining open channels of communication with its shareholders. The company urges shareholders to disregard the misleading information presented by Hartman and to rely only on official announcements from Silver Star for accurate insights into the company’s affairs.

Shareholders are encouraged to direct any further inquiries or communications to the Investor Relations team to safeguard against inaccuracies. Silver Star Properties REIT is dedicated to keeping all stakeholders informed and will continue to take necessary actions to protect both the company and its investors from misinformation.

In closing, Silver Star expresses gratitude for its shareholders' enduring trust and support during these turbulent times. The company looks forward to demonstrating its commitment to transparency and accountability in every matter, ensuring that the future remains bright for all involved.