Capital Properties profit climbs 79% in 2Q on new facility contract
CAPITAL PROPERTIES INC. â€“ owner of downtown Providence real estate, as well as the petroleum storage facility in East Providence pictured above â€“ reported that its net income rose 79.3 percent in the second quarter due to its new contract to operate the facility for Sprague Operating Resources LLC.
EAST PROVIDENCE â€“ Capital Properties Inc. reported Tuesday that its second-quarter net income rose 79.3 percent to $450,000, or 7 cents per share, compared with $251,000, or 4 cents per share, during the same period a year ago.
Total revenue increased 30.3 percent for the three months ended June 30, climbing to $2.02 million from $1.6 million in the second quarter of 2013.
Capital Properties owns a substantial portion of the Capital Center area of Providence and derives leasing income from tenants that have built commercial and residential buildings on the land, including the headquarters of Blue Cross & Blue Shield of Rhode Island, the Waterplace condominiums and the Capitol Cove apartments, among other properties.
Revenue from that portion of its holdings increased slightly in the second quarter to $1.3 million from $1.2 million during the same three-month period last year, an increase of 6.4 percent.
The other half of the companyâ€™s business comprises a petroleum storage facility in East Providence and an offloading pier in Narragansett Bay, which Capital Properties began renting to Portsmouth, N.H.-based Sprague Operating Resources LLC effective May 1 for $3.5 million annually.
Petroleum storage facility revenue for the second quarter totaled $732,000, more than double the $340,000 in revenue brought in for the same period last year, when Capital Propertiesâ€™ contract with Global Companies LLC to operate the facility ended and the 1.04 million shell barrels of capacity became mostly empty.
On a year-to-date basis, Capital Properties revenue increased 2.4 percent during the first six months of 2014 to $3.7 million, while net income decreased 10.8 percent to $527,000, or 8 cents per share.