Executive Realignment and Continuing Operating Reports Regarding Southern Star

HOUSTON, May 16, 2024 /PRNewswire/ -- Silver Star Properties REIT, Inc. ("Silver Star" or the "Company") is a self-managed real estate investment trust that is currently repositioning in an orderly manner into the self-storage asset class.  The Company announced today that Mr. Alex Board has been unanimously appointed and approved by the Executive Committee of Silver Star (the "EC") to be the Principal Accounting Officer and Deputy Chief Financial Officer of Silver Star. Mr. Board's direct report will be to Gerald Haddock as Chief Executive Officer and Executive Chairman of the Board of Directors of the Company. In addition, he will continue to have direct responsibility to the Company's audit committee. "I am excited to step into the new role and continue executing the Company's strategic initiatives," said Mr. Board. "I look forward to working closely with the EC and building on the Company's progress towards its long-term objectives." Mr. Board has served as a Controller of the Company since 2021. He will continue as Controller and will also be responsible for the preparation of the financials relating to a 100% subsidiary of the Company, Southern Star Self Storage Investment Company ("Southern Star"). In conjunction with the Company's deeper examination of the current operations of Southern Star, Mr. Board has been assigned oversight of the financials of Southern Star.

Furthermore, in connection with streamlining the Company's reporting, Lou Fox has been directed to focus all of his time to the matters at hand with Silver Star. Previously, Southern Star has been operated autonomously and that will generally be continued, but supplemented with oversight by Silver Star, together with Mr. Board's new oversight and direct responsibility for the financial reporting as previously stated.

With new management now in place, the initial focus for Southern Star turnaround efforts includes a focused reduction in tenant delinquencies to enhance revenue and create more leasable spaces.  Management will implement a programmatic approach to engagement with community influencers and organizations, including homebuilders, civic clubs, chambers of commerce, political contacts, and others to increase customer acquisition opportunities and enhance market penetration, with an emphasis on a strong ongoing community touch at each location.  Facilities will be cleaned and maintained at a high level and security measures will be enhanced where necessary.  All locations will promote this change with a banner announcing, "Under New Management." Mr. Wheeler has implemented a strong messaging program to all operators and has replaced two employees at the top. According to Mr. Wheeler, "I am confident that we can bring additional focus that will substantially enhance operational execution at Southern Star, thereby ensuring that we have compliance and a successful turnaround as directed by the EC."   

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Forward-Looking Statements: This press release contains certain forward-looking statements. Because such statements include risks, uncertainties, and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements, and you should not place undue reliance on any such statements. Several important factors could cause actual results to differ materially from the forward-looking statements contained in this material. Forward-looking statements in this press release speak only as of the date on which such statements were made, and the company undertakes no obligation to update any such statements that may become untrue because of subsequent events. Such forward-looking statements are subject to the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

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SOURCE Silver Star Properties REIT, Inc.