Update for Shareholders of Silver Star Properties REIT
Silver Star Properties REIT, Inc. is currently navigating a significant transition as it shifts into the self-storage asset class. The company is dedicated to keeping its shareholders informed about recent updates concerning net asset value (NAV) and the custodianship situation with Charles Schwab.
Changes with Charles Schwab Custodianship
Recently, Charles Schwab communicated to shareholders who hold Silver Star Properties REIT shares in their 401k and IRA accounts that they will be ending custodianship. This decision will be effective soon and is due to the company facing difficulties in meeting certain reporting benchmarks. These issues were associated with inappropriate Lis Pendens actions taken against the company’s properties by its former CEO, which had serious consequences including a Chapter 11 bankruptcy filing. While the company has successfully exited bankruptcy, it is now functioning under strict regulatory guidelines.
Tackling Regulatory Issues
Silver Star Properties REIT is diligently working to meet its reporting requirements. Due to delays in this process, Charles Schwab has decided to assign the share value to zero until the reports are completed. The company wants shareholders to understand that no action is needed from them at this time and emphasizes its dedication to resolving these issues swiftly.
What is Net Asset Value?
The Board of Directors has previously reported a NAV of $6.25 per common share and operating partnership unit as of the end of 2022. Following a recent review, they identified that a "Flip In" event had transpired, resulting in the issuance of around 31 million shares of common stock pursuant to the company’s Rights Agreement.
Updated NAV Estimates
In light of the latest assessment, the company has revised its NAV per share to a pro forma amount of $3.36. This adjustment reflects the ongoing changes within the company's structure. Moreover, recent communications suggest that management has projected the NAV as of June 30, 2024, planning to include insights from a real estate valuation expert to further refine this estimate.
Looking Ahead and Keeping Shareholders Informed
Management aims to release an updated NAV as soon as it receives approval from the Board of Directors. It's essential for shareholders to realize that until this new NAV is confirmed, the current portal NAV of $3.41 should not be considered definitive.
Connecting with Shareholders
Listeners should take the opportunity to hear directly from the company’s CEO about future plans and outlooks. The State of the Company podcast is accessible on the company’s website, delivering valuable insights and updates on their ongoing progress and strategy.
Frequently Asked Questions
What is the current status of Charles Schwab custodianship?
Charles Schwab will soon stop its custodianship for shareholders of Silver Star Properties REIT, impacting accounts in 401k and IRA plans.
What is the currently reported net asset value for Silver Star?
The company has indicated a NAV of $6.25 per common share, though adjustments may occur based on ongoing evaluations.
What caused the defaulting of share value to zero?
Charles Schwab defaulted the share value of Silver Star Properties to zero because of incomplete reports and regulatory requirements until a resolution is reached.
How will shareholders receive updates about the NAV in the future?
Shareholders will receive updates via board communications regarding the estimated NAV as it is refined and approved.
Where can I find more information about the company?
For additional insights and updates, shareholders can find information through the company’s official communication channels and the State of the Company podcast on their website.
