Capital Properties 3Q profit rises 43.5%

EAST PROVIDENCE – Capital Properties Inc. (Amex: CPI) has posted a third-quarter profit of $478,000, a 43.54-percent increase from the year-ago $333,000 (READ MORE), on total revenue that rose 7.41 percent to $1.68 million. Basic income per common share rose to 14 cents from the 2007 third quarter’s 10 cents.
General and administrative expenses for the three months ended Sept. 30 fell $115,000, or 37.34 percent, compared with a year ago to $193,000. The decline was “due principally to a decrease in payroll and related costs due to the non-replacement of a retired employee,” the company said.
Ronald P. Chrzanowski, former president and chief operating officer of Capital Properties, and Avery L. Noe, former president of the Capital Terminal Co. subsidiary, both left the company at the end of 2007. Robert H. Eder, the company’s new president, is also a director of the Providence and Worcester Railroad Co.
Third-quarter revenue in the company’s petroleum-storage segment rose $88,000, or 10.23 percent, to $948,000. Higher monthly rents due to the annual cost-of-living adjustment and an increase in contractual revenue from tenant reimbursements “for certain expenses incurred by the company,” were offset in part by lower contingent revenue due to a reduction in throughput of petroleum products, Capital Properties said. But excluding tenant-reimbursable expenses, petroleum-storage revenue fell $4,000 compared with a year ago, the company said. And storage-segment expenses rose $50,000, or 9.69 percent, to $566,000.
Third-quarter revenue in the company’s leasing segment rose $50,000, or 7.40 percent, to $726,000. An increase in revenue from short-term leases – including income from the 3 Steeple St. building the company purchased last November (READ MORE), adjacent to its Capital Center development – more than made up for the year-ago period’s one-time gain of $100,000 from the settlement of a former tenant’s premature lease termination, Capital Properties said. Segment expenses fell $28,000, or 16.57 percent, to $141,000 after holding steady the year before.
Meanwhile, other income (including interest revenue) shrank 75.86 percent to $7,000 from the 2007 third quarter’s $29,000.
Year-to-date net income for the nine months ended Sept. 30 rose 11.73 percent to $1.34 million, from the year-ago $1.20 million, on total revenue that rose 2.32 percent to $5.12 million. Basic income per common share rose to 41 cents, from the year-ago period’s 36 cents.
Petroleum-storage revenue rose $105,000, or 3.82 percent, to $2.85 million, but segment revenue excluding tenant-reimbursable expenses fell $98,000, or 3.57 percent, compared with a year ago. Leasing-segment revenue rose $87,000, or 4.01 percent, to $2.25 million. Other income shrank 80.08 percent to $18,000 in first nine months of the year from $94,000 in the year-ago period.
A regular quarterly dividend of 6 cents per share – unchanged from a year ago – was declared by the Capital Properties board of directors on Oct. 29. The dividend, on the company’s outstanding Class A common stock, is payable Nov. 25 to shareholders of record as of the close of business on Nov. 12.
Capital Properties Inc. (Amex: CPI) is a $5.8 million company based in East Providence. It and its subsidiaries operate in two segments: leasing, both of commercial real estate in downtown Providence and of outdoor advertising sites along highways in Rhode Island and Massachusetts; and petroleum storage at the Capital terminal and Wilkesbarre Pier in East Providence, which are leased to Waltham, Mass.-based regional petroleum wholesaler Global Companies LLC (NYSE: GLP). To learn more, visit www.CapitalProperties.com.

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