CPI IQ Real Return ETF

EAST PROVIDENCE, R.I., Aug. 2 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (AMEX:CPI) reported net income of $241,000 and $1,051,000, respectively, for the three and six months ended June 30, 2005, resulting in a basic income per common share of $.07 and $.32, respectively. For the three and six months ended June 30, 2004, the Company reported net income of $154,000 and $1,399,000, respectively, which resulted in a basic income per common share of $.04 and $.42, respectively. Capital Properties, Inc.'s business consists of the leasing of certain of its real estate interests in downtown Providence, Rhode Island for commercial development and locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes, and the operation of its petroleum storage facilities in East Providence, Rhode Island. In March 2005, the Company sold the parking garage located in the Capital Center Project area, which it had owned since the 1980's for $2,500,000 in cash, resulting in a gain of $1,057,000. The Company retained ownership of the underlying land which it has leased to the former tenant of the garage for 99 years. In March 2004, the Company received $258,000 from the City of Providence for reimbursement of attorney's fees incurred by the Company in its litigation against the City with respect to the City's attempt to assess back taxes against the Company. Exclusive of the $1,057,000 gain on the sale of the parking garage and the $258,000 received for the attorneys fees, for the three and six months ended June 30, 2005, revenue from leasing decreased $88,000 and $179,000, respectively, from 2004. Prior to the commencement of the long-term land leases in 2004 and 2005, the Company was receiving option payments and revenue from a short-term surface parking lease but was paying all real property taxes. Upon commencement of the leases, the Company receives an annual rental which is lower during the construction and lease-up periods (approximately five years) but the tenant directly pays the real property taxes, resulting in a decrease in real property tax expense of $165,000 and $346,000, respectively, for the three and six months ended June 30, 2005. The net effect of these changes is the principal reason for the increase to income before income taxes of the leasing segment for the three and six months ended June 30, 2005. For the three and six months ended June 30, 2005, revenue from petroleum storage facilities increased $130,000 and $223,000 from 2004 due principally to fees for the new 152,000 barrel tank which was completed in October 2004 and higher monthly fees resulting from the annual cost-of-living adjustment, offset in part by lower contingent revenues. For the three and six months ended June 30, 2005, expenses applicable to petroleum storage facilities remained approximately at the 2004 level. Higher depreciation expense related principally to the tank constructed in 2004 and costs associated with maintaining and monitoring the security at the petroleum storage facilities as required by the Department of Homeland Security were offset principally by lower legal fees in connection with the Wilkesbarre Pier litigation. In February 2004, the Company received $1,622,000 from National Railroad Passenger Corporation (Amtrak) for the condemnation of its properties in Providence, Rhode Island in 1999 and 2001. For the three and six months ended June 30, 2005, general and administrative expenses increased $77,000 and $100,000 from 2004 due to various items, including the costs associated with the conversion of the Class B common stock to Class A common stock and expenses associated with responding to a tender offer to acquire up to 285,000 shares of Company's stock which commenced May 2, 2005, and ended June 13, 2005, at which time the tender offeror acquired 9,675 shares of the Company's Class A common stock. Financial Summary Three Months Ended Six Months Ended June 30 June 30 2005 2004 2005 2004 Revenues: Leasing $726,000 $814,000 $1,421,000 $1,600,000 Gain on sale of parking garage -- -- 1,057,000 -- Attorneys fees judgment -- -- -- 258,000 Petroleum storage facilities 632,000 502,000 1,290,000 1,067,000 Condemnation proceeds -- -- -- 1,622,000 Interest 24,000 4,000 33,000 7,000 Total revenues $1,382,000 $1,320,000 $3,801,000 $4,554,000 Total expenses $959,000 $1,061,000 $2,002,000 $2,241,000 Income before income taxes $423,000 $259,000 $1,799,000 $2,313,000 Net income $241,000 $154,000 $1,051,000 $1,399,000 Basic income per common share $.07 $.04 $.32 $.42 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-KSB and 10-QSB. 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 (401) 435-7171 DATASOURCE: Capital Properties, Inc. CONTACT: Barbara J. Dreyer, Treasurer of Capital Properties, Inc., +1-401-435-7171

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