Capital Properties Expands for Jobs in Rhode Island
Posted on November 3, 2010
Capital Properties has announced financial results and plans for new jobs in Rhode Island.
The company reported net income of $267,000 and $1,057,000 for the three and nine months ended September 30, 2010. Based upon 6,599,912 shares, the basic income per common share for the same periods was $.04 and $.16. For the three and nine months ended September 30, 2009, the Company had reported net income of $341,000 and $1,079,000, respectively. Based upon 6,599,912 shares, the basic income per common share for the same period was $.05 and $.16, respectively.
For the three and nine months ended September 30, 2010, leasing revenue increased $125,000 and $141,000, respectively, from 2009 due to the termination of the rent relief granted two tenant in 2009 and scheduled increases in rentals under long-term land leases. For the three months ended September 30, 2010, leasing expense decreased $11,000 due to lower legal fees in connection with two leases offset in part by depreciation on the Steeple Street Building and an increase in real property taxes. For the nine months ended September 30, 2010, leasing expense increased $146,000 due to higher legal fees in connection with two leases, an increase in real property taxes, depreciation on the Steeple Street Building and the hiring of a new employee. These increases were offset in part by the reversal of an allowance for doubtful accounts of $62,000.
For the three and nine months ended September 30, 2010, petroleum storage facility revenue increased approximately $30,000 from 2009 due to the May 1, 2010 annual cost-of-living adjustment of $82,000 under the lease for the petroleum storage facility. For the three and nine months ended September 30, 2010, petroleum storage facility expense increased $282,000 and $189,000, respectively, from 2009 due principally to costs of $210,000 recorded in connection with the leak in a tank in August 2010. For the three months ended September 30, 2010, the increase was also due to higher levels of scheduled repairs and maintenance.
For the three and nine months ended September 30, 2010, general and administrative expense remained at approximately the 2009 level.
In April 2010, the Company borrowed $6,000,000 from a bank. This loan bears interest at the rate of 6 percent per annum and has a term of ten years with repayments on a twenty-year amortization schedule (monthly principal payments of $25,000). For the three and nine months ended September 30, 2010, interest was $91,000 and $155,000, respectively. In May 2010, the proceeds from the loan were used principally to fund a special dividend of $5,478,000 to shareholders, which represented the Company’s earnings and profits as calculated for federal income tax purposes at December 31, 2009.
