Capital Properties reports profit, revenue increases in 1Q

CAPITAL PROPERTIES INC. reported increases in revenue and profit in the first quarter, of 3.8 percent and 33.8 percent, respectively. / PILLSBURY ASSOCIATES AERIAL PHOTOGRAPHY/DON PILLSBURY
CAPITAL PROPERTIES INC. reported increases in revenue and profit in the first quarter, of 3.8 percent and 33.8 percent, respectively. / PILLSBURY ASSOCIATES AERIAL PHOTOGRAPHY/DON PILLSBURY

EAST PROVIDENCE – Capital Properties Inc. reported a 33.8 percent increase in profit in the first quarter to $535,000, or 8 cents per diluted share, compared with $400,000, or 6 cents per diluted share, a year ago.
Revenue also grew, by nearly 4 percent, to $2.1 million from $2 million last year, the company said Tuesday.
Capital Properties operates in two segments, leasing and petroleum storage. It owns a large part of the Capital Center Special Development District in Providence as well as a petroleum storage facility in East Providence.
The company said it was notified last month that Portsmouth, N.H.-based Sprague Operating Resources LLC, the petroleum storage facility tenant, will terminate its agreement effective April 30, 2017.
Sprague has been a tenant since May 2014, paying Capital Properties $3.5 million annually to use the million-barrel petroleum storage facility.

Capital Properties also leases locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes to go with its Capital Center land, upon which a number of buildings have been constructed through the years and for which continued development is expected.
Leasing revenue climbed $71,000 from a year ago, to $1.3 million from $1.2 million, due to scheduled rent increases under long-term land leases, while leasing expense fell to $214,000 from $225,000 due to lower maintenance costs at the Steeple Street building.
Petroleum storage facility revenue was basically unchanged quarter over quarter, at $882,000 compared with $875,000. Expenses in this category fell, however, to $578,000 from $683,000, due to lower depreciation expense and a decrease in repairs and maintenance.

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