CPI IQ Real Return ETF

EAST PROVIDENCE, R.I., Nov. 5 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (AMEX:CPI) reported net income of $333,000 and $1,202,000 for the three and nine months ended September 30, 2007, resulting in a basic income per common share of $.10 and $.36, respectively. For the three and nine months ended September 30, 2006, the Company had reported net income of $373,000 and $946,000, respectively, which resulted in a basic income per common share of $.11 and $.28, respectively. For the three months ended September 30, 2007, leasing revenue increased $23,000 from 2006 due principally to rent increases in short-term leases. For the nine months ended September 30, 2007, leasing revenues increased $328,000 from 2006. In June 2007, the Company entered into a settlement agreement with a former tenant concerning amounts due the Company resulting from the tenant's prematurely terminating its lease with the Company in 2003; the Company received $100,000 in settlement. Effective June 1, 2006, the Company entered into an Amended and Restated Agreement of Lease with Lamar Outdoor Advertising, which changed the contractual rental payments thereby extending the date on which the actual revenues would exceed revenues on a straight-line basis to 2022. As a result, the Company concluded that it should not presently record the receivable resulting from reporting leasing revenue on a straight-line basis. Prior to June 1, 2006, the Company had been recognizing revenue on this lease on a straight-line basis and, accordingly, recorded a reduction in leasing revenue of $187,000 for the nine months ended September 30, 2006, which amounts in part related to periods prior to 2006. Therefore, as compared to 2006, leasing revenues in 2007 increased in part because the Company is no longer recognizing revenue on this lease on the straight-line basis. For the three months ended September 30, 2007, leasing expense remained at approximately the 2006 level with an increase in real property taxes being offset in part by a decrease in professional fees. For the nine months ended September 30, 2007, leasing expense decreased $91,000 from 2006, principally due to lower real property taxes resulting from an existing tenant's assumption of all real property taxes on its parcel as of January 1, 2007 (offset in part by an increase in the 2007 real property taxes) and a decrease in professional fees. For the three and nine months ended September 30, 2007, petroleum storage facility revenue increased $68,000 and $407,000, respectively, from 2006, due principally to rent for a new 175,000 barrel tank effective August 2006 and higher monthly rent resulting from the annual cost-of-living adjustments. For the three and nine months ended September 30, 2007, petroleum storage facility expense increased $82,000 and $301,000, respectively, from 2006, due principally to higher depreciation related principally to the new tank and the hiring of a new employee. For the three months ended September 30, 2007, general and administrative expense increased $60,000 from 2006 due principally to costs incurred in complying with Section 404 of the Sarbanes-Oxley Act of 2002. For the nine months ended September 30, 2007, general and administrative expense increased $96,000 from 2006 due principally to higher professional fees incurred in connection with the Company's filing status changing from a small business issuer to a non-accelerated filer for the year ended December 31, 2006 and costs incurred in complying with Section 404 of the Sarbanes-Oxley Act of 2006. Financial Summary Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 Revenues and other income: Revenues: Leasing $676,000 $653,000 $2,167,000 $1,839,000 Petroleum storage facility 860,000 792,000 2,745,000 2,338,000 1,536,000 1,445,000 4,912,000 4,177,000 Other income, interest 29,000 26,000 94,000 83,000 Total revenues and other income 1,565,000 1,471,000 5,006,000 4,260,000 Expenses: Leasing 169,000 164,000 430,000 521,000 Petroleum storage facility 516,000 434,000 1,619,000 1,318,000 General and administrative 308,000 248,000 931,000 835,000 993,000 846,000 2,980,000 2,674,000 Income before income taxes $572,000 $625,000 $2,026,000 $1,586,000 Net income $333,000 $373,000 $1,202,000 $946,000 Basic income per common share $.10 $.11 $.36 $.28 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 (401) 435-7171 DATASOURCE: Capital Properties, Inc. CONTACT: Barbara J. Dreyer, Treasurer of Capital Properties, Inc., +1-401-435-7171

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