Capital Properties, Inc. Announces Third Quarter 2016 Results

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Nov 08, 2016, 08:44 ET

EAST PROVIDENCE, R.I., Nov. 8, 2016 /PRNewswire/ -- Today, Capital Properties, Inc. (OTCQX: CPTP) reported net income of $529,000 and $1,647,000 for the three and nine months ended September 30, 2016. Based upon 6,599,912 shares outstanding, the basic income per common share for the same periods was $.08 and $.25, respectively. For the three and nine months ended September 30, 2015, the Company had reported net income of $576,000 and $1,550,000, respectively. Based upon 6,599,912 shares outstanding, the basic income per common share for the same periods in 2015 was $.08 and $.23, respectively.

For the three months ended September 30, 2016, leasing revenue decreased $7,000 from 2015 due to the termination of a lease at Steeple Street, offset in part by scheduled increases in rentals under long-term land leases. For the nine months ended September 30, 2016, leasing revenue increased $97,000 from 2015 due to scheduled increases in rentals under long-term land leases, offset in part by a decrease in 2016 in the percentage rent under the lease with Lamar Outdoor Advertising, LLC. For the three and nine months ended September 30, 2016, leasing expense decreased $14,000 and $31,000, respectively, from 2015 due to an decrease in repairs and maintenance at the Steeple Street Building and a decrease in insurance premiums, offset in part by an increase in the City of Providence real estate taxes.

For the three and nine months ended September 30, 2016, petroleum storage facility revenue increased $9,000 and $26,000, respectively, from 2015 due to a scheduled cost-of-living rent adjustment under the Agreement with Sprague Operating Resources LLC. For the three months ended September 30, 2016, petroleum storage facility expense increased $87,000 from 2015 due to increases in repairs and maintenance expense and legal fees incurred in connection with consideration of strategic alternatives for the Terminal, offset in part by a decrease in insurance premiums. For the nine months ended September 30, 2016, petroleum storage facility expense decreased $51,000 from 2015 due to lower depreciation expense due to certain assets becoming fully depreciated in 2015 and a decrease in insurance premiums, offset in part by legal fees incurred in connection with consideration of strategic alternatives for the Terminal.

For the three and nine months ended September 30, 2016, general and administrative expense increased $39,000 and $113,000, respectively, from 2015 due to an increase in legal fees and costs incurred in connection with the partial redemption of the Dividend Notes.

On June 15, 2016, the Company made a partial redemption payment of $1,179,000 on its dividend notes. For the three and nine months ended September 30, 2016, the interest expense, dividend notes was $132,000 and $445,000, respectively. For the three and nine months ended September 30, 2015, the interest expense, dividend notes was $147,000 and $442,000, respectively. In November 2015, the Company paid the bank loan in full. The interest expense, bank loan for the three and nine months ended September 30, 2015, was $14,000 and $62,000, respectively.

Financial Summary

	Three Months Ended September30				Nine Months Ended September 30
	2016		2015		2016		2015
Revenues:
Leasing	$	1,242,000	$	1,249,000	$	3,860,000	$	3,763,000
Petroleum Storage Facility	892,000		883,000		2,664,000		2,638,000
Total Revenues	2,134,000		2,132,000		6,524,000		6,401,000

Expenses:
Leasing	193,000		207,000		622,000		653,000
Petroleum storage facility	648,000		561,000		1,814,000		1,865,000
General and administrative	294,000		255,000		941,000		828,000
Interest on notes:
Bank loan	--		14,000		--		62,000
Dividend notes	132,000		147,000		445,000		442,000
		1,267,000	1,184,000		3,822,000		3,850,000
Income before income taxes	$	867,000	$	948,000	$	2,702,000	$	2,551,000

Net income	$	529,000	$	576,000	$	1,647,000	$	1,550,000

Basic income per common share, based
upon 6,599,912 shares outstanding	$.08		$.08			$.25		$.23

Capital Properties, Inc. and its subsidiaries operate in two segments: (1) Leasing and (2) Petroleum Storage. The leasing segment consists of the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island for commercial development, the leasing of a portion of a building and the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes. The petroleum storage segment consists of the petroleum storage terminal and the Wilkesbarre Pier in East Providence, Rhode Island, collectively referred to as the "Facility," which the Company operates for the tenant of the Facility.

Certain written statements made in this press release may contain "forward-looking statements" which represent the Company's expectations or beliefs concerning future events. Certain risks, uncertainties and other important factors are detailed in reports filed by the Company with the Securities and Exchange Commission, including Forms 8-K, 10-K and 10-Q. The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements.

CONTACT:
Barbara J. Dreyer, Treasurer
(401) 435-7171

SOURCE Capital Properties, Inc.