CPI IQ Real Return ETF

EAST PROVIDENCE, R.I., May 1 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (AMEX:CPI) reported net income of $321,000 for the three months ended March 31, 2006, resulting in a basic income per common share of $.10. For the three months ended March 31, 2005, the Company had reported net income of $810,000, or $.25 per share. In March 2005, the Company sold its parking garage located in the Capital Center Project area for $2,500,000 in cash, resulting in a gain of $1,057,000. Exclusive of this gain, for the three months ended March 31, 2006, revenues from leasing decreased $63,000 from 2005. Prior to the commencement of the long-term land leases in 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 tenants directly pay the real property taxes, resulting in a decrease in real property tax expense for the three months ended March 31, 2006 of $81,000 from 2005. The net effect of the above is the principal reason for the increase to income before taxes of the leasing segment ($60,000) for the three months ended March 31, 2006 from 2005. For the three months ended March 31, 2006, revenue from the petroleum storage facility increased $149,000 from 2005 due principally to fees for a new 152,000 barrel tank effective December 2005, higher monthly fees resulting from the annual cost-of-living adjustment and higher contingent revenue. For the three months ended March 31, 2006, expenses applicable to petroleum storage facility decreased $14,000 from 2005. Lower legal fees in connection with the Wilkesbarre Pier litigation and a decrease in expenses relating to security maintenance were offset in part by higher depreciation expense related principally to the new 152,000 barrel tank constructed in 2005 and higher payroll and related costs. For the three months ended March 31, 2006, interest income increased $22,000 from 2005 resulting from higher levels of cash available for short-term investments. For the three months ended March 31, 2006, general and administrative expense increased $27,000 from 2005 due principally to higher payroll and related costs and directors fees. Financial Summary Three Months Ended March 31, 2006 and 2005 2006 2005 Revenues: Leasing $632,000 $695,000 Gain on sale of parking garage -- 1,057,000 Petroleum storage facility 807,000 658,000 Interest 31,000 9,000 Total revenues $1,470,000 $2,419,000 Total expenses $172,000 $295,000 Income before income taxes $536,000 $1,376,000 Net income $321,000 $810,000 Basic income per common share $.10 $.25 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. 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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