Silver Star Properties REIT Provides Updated Information to Shareholders on Net Asset Value and Charles Schwab

Houston, September 24, 2024 /PRNewswire/ — Silver Star Properties REIT, Inc. (“Silver Star” or the “Company”), a self-managed real estate investment trust currently repositioning itself in the self-storage asset class, is providing an update to shareholders on Charles Schwab custody and NAV.

Charles Schwab custody

Charles Schwab has recently initiated a series of communications with shareholders and their financial advisors who own shares of Silver Star Properties REIT (formerly Hartman Short Term Income Properties XX, Inc.) in shareholders 401k and IRA accounts that will no longer be custodians as of December 2, 2024. According Charles SchwabThis is because Silver Star was unable to meet reporting benchmarks due to, among other things, erroneous and improper Lis Pendens actions brought against the Company's properties by its former CEO and current director, which prompted the Company's Chapter 11 bankruptcy filing and a subsequent SEC investigation. Silver Star exited its voluntary bankruptcy proceeding. March 27, 2024 and the SEC concluded its investigation without further action. August 15, 2024.

We are working hard to complete the reporting requirements. In the interim period, due to reports not being completed or submitted, Charles SchwabConstrained by these regulatory requirements and internal protocols, it has been unable to determine an updated value and due to those requirements has set the value of the stock at “zero” until the report is completed. Our goal is to resolve this before the end of the year. No further action is required by shareholders at this time.

Net asset value

The Company previously reported that the Executive Committee of the Board of Directors approved a Net Asset Value (“NAV”) of $6.25 per common share and operating partnership unit from December 31, 2022. In January 13, 2024 The Board of Directors (the “Board”) determined that a “Flip In” event had been triggered pursuant to the terms of the Company's Rights Agreement (the “Rights Agreement”). The Flip-In event resulted in the issuance of approximately 31,315,910 shares of common stock pursuant to the Rights Agreement. Management provided that the estimated NAV per share of the common stock and operating partnership unit as of June 31, 2011 was $1.0 billion. December 31, 2022would be, on a pro forma basis, $3.36 per common share and operating partnership unit.

The Company issued a press release on March 28, 2024 stating that “Silver Star management has estimated the net asset value (“NAV”) of the Company as of December 31, 2010.” December 31, 2023be $2.70 per common share and operating partnership unit. This estimated NAV is subject to approval by the Company’s Board of Directors.”

The Company has recently engaged a real estate valuation expert to determine the value of the Company's real estate assets from June 30, 2024Management will use the real estate valuation report to prepare its calculation of the Company's net asset value and net asset value per common share and operating partnership unit. The management report will be considered and, as appropriate, approved by the Board of Directors. Until a new net asset value is approved by the Board of Directors, the current net asset value reflected on the transfer agent portal (Phoenix American Financial Services) of $3.41 It should not be relied upon.

Don't miss this opportunity to hear directly from our CEO about the future of our company. Company status The podcast is currently available on our website at https://silverstarreit.com/silver-star-update-message-from-ceo-gerald-haddock/.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “may,” “should” and similar expressions, and variations or negative forms of these words. They are not guarantees of future results and forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including those described in greater detail in our filings with the Securities and Exchange Commission (“the SEC”), particularly those described in our most recent Annual Report on Form 10-K, which was filed with the SEC on January 1, 2015. May 26, 2023 and quarterly reports on Form 10-Q. Readers should not place undue reliance on any forward-looking statements and are urged to review the Company’s other filings with the SEC for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Statements made herein speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

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SOURCE Silver Star Properties REIT