Capital Properties, Inc. Announces Second Quarter 2008 Results

EAST PROVIDENCE, R.I., Aug. 13  /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (AMEX:CPI) reported net income of $461,000 and $865,000 for the three and six months ended June 30, 2008, resulting in a basic income per common share of $.14 and $.26, respectively.  For the three and six months ended June 30, 2007, the Company had reported net income of  $489,000 and $869,000, respectively, which resulted in a basic income per common share of $.15 and $.26, respectively.

In June 2007, the Company received a one-time payment of $100,000 in settlement of a former tenant's termination of its lease with the Company, which amount was included in 2007 leasing revenues.  Exclusive of this $100,000 settlement, for the three and six months ended June 30, 2008, leasing revenues increased $81,000 and $137,000, respectively, from 2007, due principally to increases in rentals under short-term leases, including rentals from a building purchased in November 2007.   For the three and six months ended June 30, 2008, leasing expense increased $56,000 and $108,000, respectively, from 2007, principally due to costs associated with the building purchased in November 2007 and higher real property taxes.

For the three and six months ended June 30, 2008, petroleum storage facility revenue increased $41,000 and $17,000, respectively, from 2007, due principally to higher monthly rent resulting from the annual cost-of-living adjustment and an increase in property taxes payable by the tenant of $25,000 and $51,000, respectively for the three and six months ended June 30, 2008. This increase was offset in part by lower contingent revenue as a result of lower throughput.  For the three months ended June 30, 2008, petroleum storage facility expense remained at the 2007 level.  For the six months ended June 30, 2008, petroleum storage facility expense decreased $43,000 from 2007 principally due to lower legal and engineering fees.

For the three months and six months ended June 30, 2008, general and administrative expense decreased $34,000 and $78,000, respectively, from 2007 due principally to a decrease in payroll and related costs due to the non-replacement of a retired employee.

                            Financial Summary

                           Three Months Ended        Six Months Ended
                                June 30                   June 30
                            2008       2007         2008           2007
  Revenues and other
   income:
  Revenues:
    Leasing             $813,000    $832,000    $1,528,000     $1,491,000
    Petroleum storage
     facility            951,000     910,000     1,902,000      1,885,000
                       1,764,000   1,742,000     3,430,000      3,376,000
  Other income,
   interest                4,000      34,000        11,000         65,000
    Total revenues and
     other income      1,768,000   1,776,000     3,441,000      3,441,000

  Expenses:
    Leasing              179,000     123,000       369,000        261,000
    Petroleum storage
     facility            545,000     548,000     1,060,000      1,102,000
    General and
     administrative      254,000     288,000       545,000        623,000
                         978,000     959,000     1,974,000      1,987,000
  Income before income
   taxes                $790,000    $817,000    $1,467,000     $1,454,000

  Net income            $461,000    $489,000      $865,000       $869,000

  Basic income per
   common share             $.14        $.15          $.26           $.26




Capital Properties, Inc. and its subsidiaries operate in two segments: (1) Leasing and (2) Petroleum Storage.  The leasing segment consists of the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island for commercial development and the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes.  The petroleum storage segment consists of the operating of its petroleum storage facility in East Providence, Rhode Island.

Certain written statements made in this press release may contain "forward-looking statements" which represent the Company's expectations or beliefs concerning future events.  Certain risks, uncertainties and other important factors are detailed in reports filed by the Company with the Securities and Exchange Commission, including Forms 8-K, 10-K and 10-Q.  The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements.

   CONTACT:
   Barbara J. Dreyer, Treasurer
   [phone]


DATASOURCE: Capital Properties, Inc.



CONTACT:  Barbara J. Dreyer, Treasurer of Capital Properties, Inc.,

[phone]

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