Profit, revenue rise in 2Q for Capital Properties

CAPITAL PROPERTIES said net income rose 1.6 percent to $583,000, or 9 cents a share, in the second quarter compared with net income of $574,000, also 9 cents a share, in the 2015 second quarter. / PILLSBURY ASSOCIATES AERIAL PHOTOGRAPHY/DON PILLSBURY
CAPITAL PROPERTIES said net income rose 1.6 percent to $583,000, or 9 cents a share, in the second quarter compared with net income of $574,000, also 9 cents a share, in the 2015 second quarter. / PILLSBURY ASSOCIATES AERIAL PHOTOGRAPHY/DON PILLSBURY

EAST PROVIDENCE – Capital Properties, which owns a significant part of the Capital Center Special Development District in Providence as well as a petroleum storage facility in East Providence, reported increases in net income and revenue in the second quarter that ended June 30.
The company on Friday said net income rose 1.6 percent to $583,000, or 9 cents a share, in the second quarter compared with net income of $574,000, also 9 cents a share, in the 2015 second quarter. Revenue climbed 1.9 percent to $2.3 million from $2.2 million a year ago.
Capital Properties said leasing revenue increased $33,000 to $1.4 million from $1.3 million a year ago, due to scheduled rent increases under both short-term and long-term land leases. This was partially offset by a decrease in 2016 in the percentage rent under the lease with Lamar Outdoor Advertising LLC.
The company also leases locations along interstate and primary highways in Rhode Island and Massachusetts.
Leasing expense declined $6,000 to $215,000 from $221,000, due to fewer repairs and maintenance at the Steeple Street building. That decline was partially offset by an increase in the city of Providence’s real estate taxes.
Petroleum storage revenue rose $10,000 to $890,000, due to a scheduled cost-of-living rent adjustment under the agreement with Sprague Operating Resources LLC.

Portsmouth, N.H.-based Sprague, the petroleum storage tenant since May 2014, notified Capital Properties in April that it will terminate its agreement effective April 30.
Sprague pays Capital Properties $3.5 million annually to use the million-barrel petroleum storage facility.
Petroleum storage facility expense decreased $33,000 to $588,000, as a result of some assets becoming fully depreciated last year as well as a decline in insurance premiums.
General and administrative expense increased $78,000 to $331,000 due to an increase in legal fees and costs associated with the company’s partial redemption payment on its dividend notes.

In the second quarter, the interest expense for the dividend notes was $166,000 compared with $147,000 a year ago. In November 2015, the company paid the bank loan in full. The interest expense, bank loan for second quarter 2015 was $23,000.

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