10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-08499

CAPITAL PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

Rhode Island	05-0386287
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

100 Dexter Road East Providence, Rhode Island	02914
(Address of principal executive offices)	(Zip Code)

(401) 435-7171

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of March 31, 2015, the Company had 6,599,912 shares of Class A Common Stock outstanding.

CAPITAL PROPERTIES, INC.

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2015

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements		3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 4.	Controls and Procedures		16
PART II – OTHER INFORMATION
Item 6.	Exhibits		17
	Signatures		18
Exhibits 31	Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		19
Exhibits 32	Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		21

2

PART I

Item 1. Financial Statements

CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31, 2015 (unaudited)		December 31, 2014
ASSETS
Properties and equipment (net of accumulated depreciation)	$	19,639,000	$	19,789,000
Cash		3,695,000		2,927,000
Prepaid and other		534,000		653,000
	$	23,868,000	$	23,369,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Notes payable:
Bank ($288,000 due within one year)	$	2,781,000	$	2,852,000
Dividend notes		11,787,000		11,787,000
Accounts payable and accrued expenses:
Property taxes		287,000		282,000
Environmental remediation		80,000		80,000
Other		355,000		261,000
Income taxes payable		184,000		13,000
Deferred income taxes, net		4,911,000		5,011,000
		20,385,000		20,286,000
Shareholders’ equity:
Class A common stock, $.01 par; authorized 10,000,000 shares; issued and outstanding 6,599,912 shares		66,000		66,000
Capital in excess of par		782,000		782,000
Retained earnings		2,635,000		2,235,000
		3,483,000		3,083,000
	$	23,868,000	$	23,369,000

See notes to consolidated financial statements.

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CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(Unaudited)

	2015			2014
Revenues:
Leasing	$	1,180,000		$	1,109,000
Petroleum storage facility		875,000			572,000
		2,055,000			1,681,000
Expenses:
Leasing		225,000			226,000
Petroleum storage facility		683,000			837,000
General and administrative		320,000			296,000
Interest on notes:
Bank		25,000			47,000
Dividend notes		148,000			148,000
		1,401,000			1,554,000
Income before income taxes		654,000			127,000
Income tax expense (benefit):
Current		354,000			77,000
Deferred		(100,000	)		(27,000	)
		254,000			50,000
Net income	$	400,000			77,000
Basic income per share based upon 6,599,912 shares outstanding	$	.06		$	.01

See notes to consolidated financial statements.

4

CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(Unaudited)

	2015			2014
Cash flows from operating activities:
Net income	$	400,000		$	77,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		218,000			215,000
Amortization of deferred costs		11,000			1,000
Deferred income taxes		(100,000	)		(27,000	)
Other, principally net changes in prepaids, accounts payable, accrued expenses and current income taxes		378,000			169,000
Net cash provided by operating activities		907,000			435,000
Cash flows from investing activities:
Purchases of properties and equipment		(68,000	)		—
Cash flows from financing activities:
Principal payments on note payable, bank		(71,000	)		(72,000	)
Increase in cash		768,000			363,000
Cash, beginning		2,927,000			3,305,000
Cash, ending	$	3,695,000		$	3,668,000
Supplemental disclosures:
Cash paid for:
Income taxes	$	183,000		$	2,000
Interest	$	24,000		$	45,000

See notes to consolidated financial statements.

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CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(Unaudited)

1. Description of business:

Capital Properties, Inc. and its wholly-owned subsidiaries, Tri-State Displays, Inc., Capital Terminal Company and Dunellen, LLC (collectively referred to as “the Company”), operate in two segments, leasing and petroleum storage.

The leasing segment consists of (i) the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island (upon the commencement of which the tenants are required to construct buildings thereon, with the exception of a parking garage and Parcels 6B and 6C), (ii) the leasing of a portion of its building (“Steeple Street Building”) under short-term leasing arrangements and (iii) the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts to Lamar Outdoor Advertising, LLC (“Lamar”) which has constructed outdoor advertising boards thereon. The Company anticipates that the future development of its remaining properties in and adjacent to the Capital Center area will consist primarily of long-term ground leases. Pending this development, the Company leases these parcels for public parking under short-term leasing arrangements to Metropark, Ltd. (“Metropark”).

The petroleum storage segment consists of operating the petroleum storage terminal (the “Terminal”) containing 1,004,000 shell barrels and the Wilkesbarre Pier (the “Pier”), both of which are owned by the Company and are collectively referred to as the “Facility,” located in East Providence, Rhode Island for Sprague Operating Resources LLC (“Sprague”), a wholly-owned subsidiary of Sprague Resources LP, which stores and distributes petroleum products.

The principal difference between the two segments relates to the nature of the operations. In the leasing segment, the tenants under long-term land leases incur substantially all of the development and operating costs of the assets constructed on the Company’s land, including the payment of real property taxes on both the land and any improvements constructed thereon. In the petroleum storage segment, the Company is responsible for the operating and maintenance expenditures as well as capital improvements at the Facility.

2. Principles of consolidation and basis of presentation:

The accompanying condensed consolidated financial statements include the accounts and transactions of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying condensed consolidated balance sheet as of December 31, 2014, has been derived from audited financial statements and the unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of March 31, 2015 and the results of operations and cash flows for the three months ended March 31, 2015 and 2014.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Environmental incidents:

The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense.

The Company charges to expense those costs that do not extend the life, increase the capacity or improve the safety or efficiency of the property owned or used by the Company.

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New accounting standards:

The Company reviews new accounting standards as issued. Although some of these accounting standards may be applicable to the Company, the Company expects that none of the new standards will have a significant impact on its consolidated financial statements.

3. Use of estimates:

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

4. Properties and equipment:

Properties and equipment consists of the following:

	March 31, 2015		December 31, 2014
Properties on lease or held for lease:
Land and land improvements	$	4,701,000	$	4,701,000
Building and improvements, Steeple Street		5,552,000		5,545,000
		10,253,000		10,246,000
Petroleum storage facility, on lease:
Land and land improvements		5,569,000		5,569,000
Buildings and structures		1,867,000		1,867,000
Tanks and equipment		14,768,000		14,707,000
		22,204,000		22,143,000
Office equipment		112,000		112,000
		32,569,000		32,501,000
Less accumulated depreciation:
Properties on lease or held for lease		1,054,000		1,000,000
Petroleum storage facility, on lease		11,793,000		11,631,000
Office equipment		83,000		81,000
		12,930,000		12,712,000
	$	19,639,000	$	19,789,000

5. Notes payable:

Bank loan:

In December 2012, the Company and the Bank entered into an Amended and Restated Loan Agreement (“Loan Agreement”) pursuant to which the Company refinanced the $2,700,000 remaining balance of the 2010 debt to the Bank and borrowed an additional $3,025,000. Pursuant to the Loan Agreement, the Company amended and restated the then existing note to the Bank, the first mortgage on Parcels 3S and 5 and certain other loan agreements. For the first five years, the loan bears interest at the annual rate of 3.34% and thereafter will bear interest on either a floating rate basis at LIBOR plus 215 basis points with a floor of 3.25% or a fixed rate of 225 basis points over the five-year Federal Home Loan Bank of Boston Classic Advance Rate (3.34% at March 31, 2015). The loan has a term of ten years with repayments on a 20-year amortization schedule (monthly principal payments of $24,000 plus interest) and a balloon payment for the outstanding balance in December 2022. The Loan Agreement requires the Company to maintain at the Bank unencumbered liquid assets (cash or marketable securities) of $1,000,000. The Loan Agreement contains other customary terms and conditions.

In June and December 2014, the Company prepaid $1,000,000 and $1,300,000, respectively, on its bank loan payable. At March 31, 2015, the balloon payment is $563,000.

Financing fees totaling $71,000 are being amortized by the straight-line method over the 10-year term of the note (which approximates the effective interest rate method). Amortization of deferred financing fees is included in interest expense on the accompanying consolidated statements of income. At March 31, 2015 and December 31, 2014, unamortized deferred financing fees are $55,000 and $57,000, respectively, which are included in prepaid and other on the accompanying consolidated balance sheets.

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Dividend notes:

In 2012, the Company issued $11,787,000 in principal face amount of 5% dividend notes due December 26, 2022 (the “Dividend Notes”). The Dividend Notes are unsecured general obligations of the Company bearing interest at the annual rate of 5% payable semi-annually on June 15 and December 15 to note holders of record on June 1 and December 1 of each year. The Dividend Notes may be redeemed in whole or in part at any time and from time to time at the option of the Company. The Dividend Notes are subject to mandatory redemption in an amount equal to the Net Proceeds from the sale of any real property owned by the Company or any of its subsidiaries. Net Proceeds is defined as the gross cash received by the Company from any such sale reduced by the sum of (a) costs relating to the sale, (b) federal and state income taxes as a result of the sale, and (c) the amount used by the Company to pay in whole or in part financial institution debts secured by a mortgage of the Company’s or any subsidiary’s real property regardless of whether such mortgage encumbers the property sold. The Company has obligated itself not to grant any mortgages on any of its property located in the Capitol Center District in Providence, Rhode Island, other than Parcels 3S and 5, and to cause its subsidiaries not to grant any such mortgages, in each case without the consent of the holders of two-thirds of the outstanding principal face amount of the Dividend Notes. The Dividend Notes contain other customary terms and conditions.

6. Description of leasing arrangements:

Long-term land leases:

As of March 31, 2015, the Company had entered into nine long-term land leases. Of the nine parcels, seven have had improvements constructed thereon.

Under the nine land leases, the tenants are required to negotiate any tax stabilization treaties or other arrangements, appeal any changes in real property assessments, and pay real property taxes assessed on land and improvements under these arrangements. Accordingly, real property taxes payable by the tenants are excluded from leasing revenues and leasing expenses on the accompanying consolidated statements of income. For the three months ended March 31, 2015 and 2014, the real property taxes attributable to the Company’s land under these leases totaled $308,000 and $325,000, respectively,

In 2012, the Company entered into three amended and restated leases, each for a portion of the original Parcel 6 (Parcels 6A, 6B and 6C). All three leases have an initial term of approximately 95 years with two renewal terms of fifty years each. With respect to the Parcel 6B and 6C leases, an affiliate of the leasehold mortgagee has guaranteed the payment by the tenants of rent and real property taxes as well as certain other tenant monetary obligations for a two-year period which terminated May 18, 2014. Commencing May 18, 2014, each of the lessees of Parcels 6B and 6C has the right to terminate its lease at any time during the remaining term of that lease upon thirty days’ notice. To date, no notice of termination has been received by the Company. The current annual rent on Parcel B is $194,000. On July 1, 2015, rent commences on Parcel 6C at the annual rent of $200,000.

Lamar lease:

The Company, through a wholly-owned subsidiary, leases 23 outdoor advertising locations containing 44 billboard faces along interstate and primary highways in Rhode Island and Massachusetts to Lamar under a lease which expires in 2045. The Lamar lease provides, among other things, for the following: (1) the base rent will increase annually at the rate of 2.75% for each leased billboard location on June 1 of each year, and (2) in addition to base rent, for each 12-month period commencing each June 1, Lamar must pay to the Company within thirty days after the close of the lease year 30% of the gross revenues from each standard billboard and 20% of the gross revenues from each electronic billboard for such 12-month period, reduced by the sum of (a) commissions paid to third parties and (b) base monthly rent for each leased billboard display for each 12-month period.

Short-term leases:

The Company leases the undeveloped parcels of land in or adjacent to the Capital Center area for public parking purposes to Metropark under a short-term cancellable lease.

At March 31, 2015, the Company has three tenants occupying 65 percent of the Steeple Street Building under short-term leases of five years or less at a current annual rental of $140,000. The Company is recognizing the revenue from these leases on a straight-line basis over the terms of the leases. At March 31, 2015 and December 31, 2014, the excess of straight-line over contractual rentals is $5,000 and $6,000, respectively, which is included in prepaid

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and other on the accompanying consolidated balance sheets. The Company also reports as revenue from tenants reimbursements for common area costs and real property taxes. The Company is currently marketing the remaining portions of the building for lease.

7. Petroleum storage facility and environmental incidents:

Leasing of the Facility:

For the first four months of 2014, the Company leased a portion of the Facility (425,000 shell barrels) to Atlantic Trading & Marketing, Inc. (“ATMI”) who vacated the Facility on April 30, 2014.

Effective May 1, 2014, the Company entered into a Petroleum Storage Services Agreement (“the Agreement”) with Sprague Operating Resources, LLC (“Sprague”) for the lease of its entire storage capacity of 1,004,000 barrels for a term of five years. The base rent is $3,500,000, subject to annual cost-of-living adjustments on May 1 of each year. In addition, the Company will receive an additional $.15 for each barrel of throughput at the facility in excess of 3,500,000 barrels in any contract year (May 1 to April 30). Sprague has the right to extend the Agreement for two additional terms of five years each, provided that Sprague gives at least twelve months’ notice prior to the expiration of the initial or the extension term, as applicable. Commencing April 1, 2016 and on each April 1 thereafter during the initial term and any extension term, either party during the following thirty days has the right to terminate the Agreement as of April 30 of the year next following the year in which notice of termination is given.

Commencing May 1, 2015, Sprague will reimburse the Company for any real property taxes in excess of $290,000.

The Company incurred $108,000 in fees in connection with the execution of the Agreement, which amounts are being amortized on the straight-line method over the three-year non-cancellable portion of the term of the Agreement and are included in petroleum storage facility expenses on the accompanying consolidated statements of income for the three months ended March 31, 2015. At March 31, 2015 and December 31, 2014, unamortized deferred agreement costs were $75,000 and $84,000, respectively, which are included in prepaid and other on the accompanying consolidated balance sheets.

Wilkesbarre Pier:

The Pier is a deep-water pier in East Providence, Rhode Island owned by the Company which is integral to the operation of the Terminal. The Pier and the Terminal are connected by two petroleum pipelines which the Company has a permanent right to use.

Environmental incident (2002):

In 2002, during testing of monitoring wells at the Terminal, the Company’s consulting engineer discovered free floating phase product in a groundwater monitoring well located on that portion of the Terminal purchased in 2000. Laboratory analysis indicated that the product was gasoline, which is not a product the Company ever stored at the Terminal. The Company commenced an environmental investigation and analysis, the results of which indicate that the gasoline did not come from the Terminal. The Company notified the Rhode Island Department of Environmental Management (“RIDEM”). RIDEM subsequently identified Power Test Realty Partnership (“Power Test”), the owner of an adjacent parcel, as a potentially responsible party for the contamination. Getty Properties Corp. is the general partner of Power Test. Power Test challenged that determination and, after an administrative hearing, in October 2008 a RIDEM Hearing Officer determined that Power Test is responsible for the discharge of the petroleum product under the Rhode Island Oil Pollution Control Act, R.I.G.L. Section 46-12.5.1-3 and Rule 6(a) and 12(b) of the Oil Pollution Control Regulations. The RIDEM Decision and Order requires Power Test to remediate the contamination as directed by RIDEM and remanded the proposed penalty to RIDEM for recalculation. In November 2008, Power Test appealed the decision to the Rhode Island Superior Court. In addition, in November 2008, Power Test sought, and received, a stay of the Decision and Order of the Hearing Officer pending a clarification by RIDEM of the amount of the proposed penalty. In October 2009, RIDEM issued a recalculated administrative penalty, and, subsequently, the RIDEM Hearing Officer issued a recommended amended decision, which was affirmed as a final decision by the RIDEM Director in December 2009. In January 2010, Power Test appealed that decision to the Superior Court. In September 2011, the Superior Court affirmed the decision of the RIDEM director. Power Test has appealed that decision to the Rhode Island Supreme Court. The Supreme Court has not decided the appeal.

In April 2009, the Company sued Power Test and Getty Properties Corp. in the Rhode Island Superior Court seeking remediation of the site or, in the alternative, the cost of the remediation. On May 1, 2009, Power Test and Getty Properties Corp. removed the action to the United States District Court for the District of Rhode Island (“the Court”). On May 22, 2009, Power Test and Getty Properties Corp. answered the Complaint and filed a Counterclaim against Dunellen, LLC and Capital Terminal Company alleging that Dunellen, LLC and Capital Terminal Company are

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responsible for the contamination. Getty Properties Corp. and Power Test joined Getty Petroleum Marketing, Inc., the tenant under a long-term lease with Getty Properties Corp. of the adjacent property, as a defendant. The Company amended its Complaint to add Getty Petroleum Marketing, Inc. as a defendant. Getty Petroleum Marketing, Inc. moved for summary judgment against the Company, Getty Properties Corp. and Power Test. On December 5, 2011, Getty Petroleum Marketing, Inc. filed for bankruptcy under Chapter 11 of the United States Bankruptcy Act. Thereafter, with Bankruptcy Court approval, Getty Petroleum Marketing, Inc. rejected its lease with Getty Properties Corp. On August 24, 2012, the Bankruptcy Court approved a plan to liquidate Getty Petroleum Marketing, Inc. On January 15, 2013, the Court granted Getty Petroleum Marketing, Inc.’s motion for summary judgment against the Company, Getty Properties Corp. and Power Test, dismissing the Company’s third-party complaint.

The parties have agreed to stay the litigation pending a determination by the Rhode Island Supreme Court on the Power Test appeal.

There can be no assurance that the Company will prevail in this litigation.

Since 2003, the Company has not incurred significant costs in connection with this matter, other than ongoing litigation costs, and is unable to determine the costs it might incur to remedy the situation, as well as any costs to investigate, defend and seek reimbursement from the responsible party with respect to this contamination.

Environmental remediation (1994):

In 1994, a leak was discovered in a 25,000 barrel storage tank at the Terminal which allowed the escape of a small amount of fuel oil. All required notices were made to RIDEM. In 2000, the tank was demolished and testing of the groundwater indicated that there was no large pooling of contaminants. In 2001, RIDEM approved a plan pursuant to which the Company installed a passive system consisting of three wells and commenced monitoring the wells.

In 2003, RIDEM decided that the passive monitoring system previously approved was not sufficient and required the Company to design an active remediation system for the removal of product from the contaminated site. The Company and its consulting engineers began the pre-design testing of the site in the fourth quarter of 2004. The consulting engineers estimated a total cost of $200,000 to design, install and operate the system, which amount was accrued in 2004. Through 2006, the Company had expended $119,000 and has not incurred any significant costs since then. In 2011, RIDEM notified the company to proceed with the next phase of the approval process, notifying the abutters of the proposed remediation system even though RIDEM has not yet taken any action on the Company’s proposed plan. As designed, the system will pump out the contaminants which will be disposed of in compliance with applicable regulations. After a period of time, the groundwater will be tested to determine if sufficient contaminants have been removed. In 2014, the Company engaged new consultants to work with RIDEM to develop the next phase of the approval process. While the Company and its consulting engineers believe that the proposed active remediation system will correct the situation, it is possible that RIDEM could require the Company to expand remediation efforts, which could result in the Company incurring costs in excess of the remaining accrual of $80,000.

8. Income taxes:

Deferred income taxes are recorded based upon differences between financial statement and tax basis amounts of assets and liabilities. The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:

	March 31, 2015			December 31, 2014
Gross deferred tax liabilities:
Property having a financial statement basis in excess of tax basis	$	4,951,000		$	5,016,000
Insurance premiums and accrued leasing revenues		90,000			143,000
		5,041,000			5,159,000
Deferred tax assets		(130,000	)		(148,000	)
	$	4,911,000		$	5,011,000

9. Operating segment disclosures:

The Company operates in two segments, leasing and petroleum storage.

The Company makes decisions relative to the allocation of resources and evaluates performance based on each segment’s respective income before income taxes, excluding interest expense and certain corporate expenses.

Inter-segment revenues are immaterial in amount.

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The following financial information is used for making operating decisions and assessing performance of each of the Company’s segments for the three months ended March 31, 2015 and 2014:

	2015		2014
Leasing:
Revenues:
Long-term leases:
Contractual	$	935,000	$	875,000
Contingent		25,000		25,000
Short-term leases		220,000		209,000
Total revenues	$	1,180,000	$	1,109,000
Property tax expense	$	108,000	$	110,000
Depreciation	$	54,000	$	53,000
Income before income taxes	$	955,000	$	883,000
Assets	$	9,408,000	$	9,764,000
Petroleum storage:
Revenues, contractual	$	875,000	$	572,000
Property tax expense	$	75,000	$	75,000
Depreciation	$	162,000	$	161,000
Income (loss) before income taxes	$	192,000	$	(265,000	)
Assets	$	11,158,000	$	11,543,000

The following is a reconciliation of the segment information to the amounts reported in the accompanying consolidated financial statements for the three months ended March 31, 2015 and 2014:

	2015			2014
Revenues for operating segments:
Leasing	$	1,180,000		$	1,109,000
Petroleum storage		875,000			572,000
Total consolidated revenues	$	2,055,000		$	1,681,000
Property tax expense for operating segments:
Leasing	$	108,000		$	110,000
Petroleum storage		75,000			75,000
		183,000			185,000
Unallocated corporate property tax expense		1,000			1,000
Total consolidated property tax expense	$	184,000		$	186,000
Depreciation:
Depreciation for operating segments:
Leasing	$	54,000		$	53,000
Petroleum storage segment:		162,000			161,000
		216,000			214,000
Unallocated corporate depreciation		2,000			1,000
Total consolidated depreciation	$	218,000		$	215,000
Income before income taxes:
Income (loss) before income taxes for operating segments:
Leasing	$	955,000		$	883,000
Petroleum storage		192,000			(265,000	)
		1,147,000			618,000
Unallocated corporate expenses		(320,000	)		(296,000	)
Interest expense		(173,000	)		(195,000	)
Total consolidated income before income taxes	$	654,000		$	127,000

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	2015		2014
Assets:
Assets for operating segments:
Leasing	$	9,408,000	$	9,764,000
Petroleum storage		11,158,000		11,543,000
		20,566,000		21,307,000
Corporate cash		3,273,000		3,186,000
Other unallocated amounts		29,000		319,000
Total consolidated assets	$	23,868,000	$	24,812,000

10. Fair value of financial instruments:

The Company believes that the fair values of its financial instruments, including cash, receivables and payables, approximate their respective book values because of their short-term nature. The fair value of the bank note payable approximates its book value and was determined using borrowing rates currently available to the Company for loans with similar terms and maturities. The fair value of the dividend notes payable approximates their book value. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP, which included statistics for the issuance, rating and trading of corporate debt securities issued by other companies.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD LOOKING STATEMENTS

Certain portions of this report, and particularly the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Sections 21E of the Securities Exchange Act of 1934, as amended, which represent the Company’s expectations or beliefs concerning future events. 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, including, without limitation, the following: the ability of the Company to generate adequate amounts of cash; the collectability of the accrued leasing revenues when due over the terms of the long-term land leases and the early termination of the Parcel 6B and Parcel 6C land leases; the commencement of additional long-term land leases; changes in economic conditions that may affect either the current or future development on the Company’s parcels; the right of the petroleum storage facility tenant to terminate the lease of the Facility effective April 30, 2017 and each April 30^th thereafter;: and exposure to contamination, remediation or similar costs associated with the operation of the petroleum storage facility. The Company does not undertake the obligation to update forward-looking statements in response to new information, future events or otherwise.

1. Overview:

Critical accounting policies:

The Company believes that its revenue recognition policy for long-term leases with scheduled rent increases (leasing segment) meets the definition of a critical accounting policy which is discussed in the Company’s Form 10-K for the year ended December 31, 2014. There have been no changes to the application of this accounting policy since December 31, 2014.

Segments:

The Company operates in two segments, leasing and petroleum storage.

The leasing segment consists of (i) the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island (upon the commencement of which the tenants have been required to construct buildings thereon, with the exception of a parking garage and Parcels 6B and 6C), (ii) the leasing of a portion of the Steeple Street Building under short-term leasing arrangements and (iii) the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts to Lamar Outdoor Advertising, LLC (“Lamar”) which has constructed outdoor advertising boards thereon. The Company anticipates that the future development of its remaining properties in and adjacent to the Capital Center area will consist primarily of long-term ground leases. Pending this development, the Company leases these parcels for public parking under short-term leasing arrangements to Metropark, Ltd. (“Metropark).

The petroleum storage segment consists of operating the petroleum storage terminal (the “Terminal”) containing 1,004,000 shell barrels and the Wilkesbarre Pier (the “Pier”), both of which are owned by the Company and are collectively referred to as the “Facility,” located in East Providence, Rhode Island for Sprague Operating Resources LLC (“Sprague”), a wholly-owned subsidiary of Sprague Resources LP, which stores and distributes petroleum products.

The principal difference between the two segments relates to the nature of the operations. In the leasing segment, the tenants under long-term land leases incur substantially all of the development and operating costs of the assets constructed on the Company’s land, including the payment of real property taxes on both the land and any improvements constructed thereon. In the petroleum storage segment, the Company is responsible for the operating and maintenance expenditures as well as capital improvements at the Facility.

13

2. Liquidity and capital resources:

Bank loan:

In December 2012, the Company and the Bank entered into an Amended and Restated Loan Agreement (“Loan Agreement”) pursuant to which the Company refinanced the $2,700,000 remaining balance of the 2010 debt to the Bank and borrowed an additional $3,025,000. Pursuant to the Loan Agreement, the Company amended and restated the then existing note to the Bank, the first mortgage on Parcels 3S and 5 and certain other loan agreements. For the first five years, the loan bears interest at the annual rate of 3.34% and thereafter will bear interest on either a floating rate basis at LIBOR plus 215 basis points with a floor of 3.25% or a fixed rate of 225 basis points over the five-year Federal Home Loan Bank of Boston Classic Advance Rate (3.34% at March 31, 2015). The loan has a term of ten years with repayments on a 20-year amortization schedule (monthly principal payments of $24,000 plus interest) and a balloon payment for the outstanding balance in December 2022. The Loan Agreement requires the Company to maintain at the Bank unencumbered liquid assets (cash or marketable securities) of $1,000,000. The Loan Agreement contains other customary terms and conditions.

In June and December 2014, the Company prepaid $1,000,000 and $1,300,000, respectively, on its bank loan payable. At March 31, 2015, the balloon payment is $563,000.

Dividend notes:

On December 7, 2012, the Board of Directors of the Company declared an extraordinary dividend of $2.25 per share on its Class A and Class B common stock to shareholders of record on December 17, 2012. On December 27, 2012, the Company paid out $3,063,000 in cash and issued $11,787,000 in principal face amount of 5% dividend notes due December 26, 2022 (the “Dividend Notes”). The Dividend Notes are unsecured general obligations of the Company bearing interest at the annual rate of 5% payable semi-annually on June 15 and December 15 to note holders of record on June 1 and December 1 of each year. The Dividend Notes may be redeemed in whole or in part at any time and from time to time at the option of the Company. The Dividend Notes are subject to mandatory redemption in an amount equal to the Net Proceeds from the sale of any real property owned by the Company or any of its subsidiaries. Net Proceeds means the gross cash received by the Company from any such sale reduced by the sum of (a) costs relating to the sale, (b) federal and state income taxes as a result of the sale, and (c) the amount used by the Company to pay in whole or in part financial institution debts secured by a mortgage of the Company’s or any subsidiary’s real property regardless of whether such mortgage encumbers the property sold. The Company has obligated itself not to grant any mortgages on any of its property located in the Capitol Center District in Providence, Rhode Island, other than Parcels 3S and 5, and to cause its subsidiaries not to grant any such mortgages, in each case without the consent of the holders of two-thirds of the outstanding principal face amount of the Dividend Notes. The Dividend Notes contain other customary terms and conditions. The interest payments on an annual basis total $589,000.

Petroleum storage facility:

For the first four months of 2014, the Company leased a portion of the Facility (425,000 shell barrels) to Atlantic Trading & Marketing, Inc. (“ATMI”) who vacated the Facility on April 30, 2014.

Effective May 1, 2014, the Company entered into a Petroleum Storage Services Agreement (“the Agreement”) with Sprague Operating Resources, LLC (“Sprague”) for the lease of its entire storage capacity of 1,004,000 barrels for a term of five years. The base rent is $3,500,000, subject to annual cost-of-living adjustments on May 1 of each year. In addition, the Company will receive an additional $.15 for each barrel of throughput at the facility in excess of 3,500,000 barrels in any contract year (May 1 to April 30). Sprague has the right to extend the Agreement for two additional terms of five years each, provided that Sprague gives at least twelve months’ notice prior to the expiration of the initial or the extension term, as applicable. Commencing April 1, 2016 and on each April 1 thereafter during the initial term and any extension term, either party during the following thirty days has the right to terminate the Agreement as of April 30 of the year next following the year in which notice of termination is given.

Commencing May 1, 2015, Sprague will reimburse the Company for any real property taxes in excess of $290,000.

During the first three months of 2015, the Company’s operating activities provided $907,000 of cash which was $473,000 more than the cash provided by operating activities for the three months ended March 31, 2014. Cash and cash equivalents at March 31, 2015 increased $768,000 from year end. The increase in cash flows from operations and cash and cash equivalents was principally due to the commencement of the Sprague agreement on May 1, 2014 and scheduled increases in rentals under long-term land leases and increases under short-term leases.

Historically, the Company has had adequate liquidity to fund its operations.

14

Cash and cash commitments:

At March 31, 2015, the Company had cash of $3,695,000. The Federal Deposit Insurance Corporation (“FDIC”) insures the Company’s bank accounts to a maximum of $250,000. The Company periodically evaluates the financial stability of the financial institution at which the Company’s funds are held. In connection with the December 2012 Amended and Restated Loan Agreement, the Company is required to maintain unencumbered liquid assets (cash and marketable securities) of $1,000,000 at the Bank.

Under the terms of two long-term land leases, the scheduled annual contractual rent increased in 2015 as follows: (1) on February 1, 2015, the rent on Parcel 8 increased $20,000 and (2) on April 1, 2014, the rent on Parcel 7A increased $9,000. On July 1, 2015, the rent commences on Parcel 6C at the annual rate of $200,000.

At March 31, 2015, the Company has three tenants occupying 65 percent of the Steeple Street Building under short-term leases (five years or less) at a current annual rental of $140,000. The Company is currently marketing the remaining portions of the building for lease.

In June and December 2014, the Company prepaid $1,000,000 and $1,300,000, respectively on the bank loan payable. Future prepayments will depend on the Company’s level of available cash.

In light of the extraordinary dividend paid in December 2012, at each of the quarterly Board meetings held in 2014 and 2015, the Board of Directors voted to omit the regular quarterly dividend of $0.03 per share. The Board will review the declaration of future dividends on a quarterly basis. The declaration of future dividends will depend on future earnings and financial performance.

3. Results of operations:

Three months ended March 31, 2015 compared to three months ended March 31, 2014:

Leasing segment:

	2015		2014		Difference
Leasing revenues	$	1,180,000	$	1,109,000	$	71,000
Leasing expense		225,000		226,000	$	(1,000	)
	$	955,000	$	883,000

Leasing revenue increased due to scheduled increases in rentals under long-term land leases and increases under short-term leases. Leasing expense remained at the same level.

Petroleum storage segment:

	2014		2013			Difference
Petroleum storage facility revenues	$	875,000	$	572,000		$	303,000
Petroleum storage facility expense		683,000		837,000		$	(154,000	)
	$	192,000	$	(265,000	)

Petroleum storage facility revenues increased in 2015 due to Sprague leasing the entire Facility. During the first quarter of 2014, the Company had leased to ATMI a portion of the storage capacity of the Facility. Petroleum storage facility expense decreased due to decrease in repairs and maintenance, insurance and professional fees, offset in part by an increase in payroll and related costs.

General:

For the three months ended March 31, 2015, general and administrative expense increased $24,000 due to an increase in payroll and related costs.

Interest expense:

For the three months ended March 31, 2015 and 2014, the interest expense, bank loan was $25,000 and $47,000, respectively. In June and December 2014, the Company prepaid $1,000,000 and $1,300,000, respectively, on its bank loan payable. For the three months ended March 31, 2015 and 2014, the interest expense, dividend notes remained at the same level.

15

Item 4. Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report. This evaluation was carried out under the supervision and with the participation of the Company’s management, including the Company’s principal executive officer and the Company’s principal financial officer. Based upon that evaluation, the principal executive officer and the principal financial officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms.

There was no significant change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to affect, the Company’s internal control over financial reporting. The Company continues to enhance its internal controls over financial reporting, primarily by evaluating and enhancing process and control documentation. Management discusses with and discloses these matters to the Audit Committee of the Board of Directors and the Company’s auditors.

16

PART II – OTHER INFORMATION

Item 6. Exhibits

(b) Exhibits:

3.1	Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the registrant’s report on Form 8-K filed on April 24, 2013).
3.2	By-laws, as amended (incorporated by reference to Exhibit 3.2 to the registrant’s annual report on Form 10-K for the year ended December 31, 2007).
10	Material contracts:
	(a)	Petroleum Storage Services Agreement between Sprague Operating Resources LLC and Company:
		(i)	Dated April 18, 2014 (incorporated by reference to Exhibit 10(a) to the registrant’s Quarterly report on Form 10-Q for the quarter ended March 31, 2014)
	(b)	Amended Loan Agreement between Bank Rhode Island and Company:
		(i) Dated December 20, 2012 (incorporated by reference to Exhibit 10.1 to the registrant’s report on Form 8-K filed on December 27, 2012)
	(c)	Form of Dividend Note:
		(i) Dated December 27, 2012 (incorporated by reference to Exhibit 10.2 to the registrant’s report on Form 8-K filed on December 27, 2012)
	(d)	Lease between Metropark, Ltd. and Company:
		(i) Dated January 1, 2005 (incorporated by reference to Exhibit 10(a) to the registrant’s annual report on Form 10-KSB for the year ended December 31, 2004), as amended.
31.1	Rule 13a-14(a) Certification of President and Principal Executive Officer
31.2	Rule 13a-14(a) Certification of Treasurer and Principal Financial Officer
32.1	Certification of President and Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Treasurer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101†	The following financial information from the Company’s Quarterly Report on Form 10-Q for the Quarter ended March 31, 2015, filed with the Securities and Exchange Commission on May 1, 2015, formatted in eXtensible Business Reporting Language:
	(i)	Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014
	(ii)	Consolidated Statements of Income for the Three Months ended March 31, 2015 and 2014
	(iii)	Consolidated Statements of Cash Flows for the Three Months ended March 31, 2015 and 2014
	(iv)	Notes to Consolidated Financial Statements.

17

SIGNATURE

In accordance with the requirements of the Exchange Act, the Issuer caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CAPITAL PROPERTIES, INC.
By	/s/ Robert H. Eder
	Robert H. Eder
	President and Principal Executive Officer
By	/s/ Barbara J. Dreyer
	Barbara J. Dreyer
	Treasurer and Principal Financial Officer

DATED: May 1, 2015

18

EX-31.1

Exhibit 31.1

CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

Certification Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Robert H. Eder, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Capital Properties, Inc. and Subsidiaries;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that was materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 1, 2015

/s/ Robert H. Eder

Robert H. Eder

President and Principal Executive Officer

EX-31.2

Exhibit 31.2

CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

Certification Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Barbara J. Dreyer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Capital Properties, Inc. and Subsidiaries;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant’s as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that was materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 1, 2015

/s/ Barbara J. Dreyer

Barbara J. Dreyer

Treasurer and Principal Financial Officer

EX-32.1

Exhibit 32.1

CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Capital Properties, Inc. (the Company) on Form 10-Q for the quarterly period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Robert H. Eder, President and Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert H. Eder

Robert H. Eder

President and Principal Executive Officer

May 1, 2015

EX-32.2

Exhibit 32.2

CAPITAL PROPERTIES, INC. AND SUBSIDIARIES

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Capital Properties, Inc. (the Company) on Form 10-Q for the quarterly period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Barbara J. Dreyer, Treasurer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Barbara J. Dreyer

Barbara J. Dreyer, Treasurer and Principal Financial Officer

May 1, 2015

XML

Petroleum Storage Facility and Environmental Incidents - Additional Information (Detail) (USD $)	3 Months Ended	12 Months Ended			4 Months Ended	0 Months Ended
	Mar. 31, 2015 bbl	Dec. 31, 2014	Dec. 31, 2006	Dec. 31, 2004	Apr. 30, 2014 bbl	May 01, 2014 bbl Terms
Environmental Incident 1994 [Member]
Oil and Gas In Process Activities [Line Items]
Volume of storage tank with leakage at the Terminal	25,000
Estimated cost related to design install and operate the system				$ 200,000
Expense incurred related to design install and operate the system			119,000
Remaining accrual for environmental remediation		80,000
Wilkesbarre Pier [Member]
Oil and Gas In Process Activities [Line Items]
Number of petroleum pipelines connections between Pier and the Terminal	2
Atlantic Trading and Marketing Inc [Member]
Oil and Gas In Process Activities [Line Items]
Number of shell barrels leased					425,000
Sprague Operating Resources LLC [Member] | Petroleum Storage Services Agreement [Member]
Oil and Gas In Process Activities [Line Items]
Number of shell barrels at terminal						1,004,000
Annual base rent						3,500,000
Additional amount per barrel of Throughput Agreement						0.15
Minimum barrel threshold in throughput agreement						3,500,000
Agreement additional extended term						2
Agreement period						5 years
Notice period of lease						30 days
Notice prior to expiration of initial or extension term						12 months
Real property taxes eligible for reimbursement in excess of minimum established amount	290,000
Real Property Taxes Reimbursement Eligibility commencement date	May 01, 2015
Execution of petroleum storage services agreement fee	108,000
Non-cancellable agreement term	3 years
Unamortized deferred agreement cost	75,000	$ 84,000

XML

Use of estimates

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Use of estimates

3. Use of estimates:

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

XML

Operating Segment Disclosures - Reconciliation of Segment Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Revenues for operating segments:
Total consolidated revenues	$ 2,055,000	$ 1,681,000
Property tax expense for operating segments:
Total consolidated property tax expense	184,000	186,000
Depreciation for operating segments:
Total consolidated depreciation	218,000	215,000
Income (loss) before income taxes for operating segments:
Interest expense	(173,000)	(195,000)
Income (loss) before income taxes	654,000	127,000
Assets for operating segments:
Total assets for operating segments	23,868,000	24,812,000	23,369,000
Operating Segments [Member]
Property tax expense for operating segments:
Total consolidated property tax expense	183,000	185,000
Depreciation for operating segments:
Total consolidated depreciation	216,000	214,000
Income (loss) before income taxes for operating segments:
Income (loss) before income taxes	1,147,000	618,000
Assets for operating segments:
Total assets for operating segments	20,566,000	21,307,000
Unallocated [Member]
Property tax expense for operating segments:
Total consolidated property tax expense	1,000	1,000
Depreciation for operating segments:
Total consolidated depreciation	2,000	1,000
Income (loss) before income taxes for operating segments:
Income (loss) before income taxes	(320,000)	(296,000)
Assets for operating segments:
Corporate cash	3,273,000	3,186,000
Other assets	29,000	319,000
Leasing [Member]
Property tax expense for operating segments:
Total consolidated property tax expense	108,000	110,000
Depreciation for operating segments:
Total consolidated depreciation	54,000	53,000
Income (loss) before income taxes for operating segments:
Income (loss) before income taxes	955,000	883,000
Assets for operating segments:
Total assets for operating segments	9,408,000	9,764,000
Leasing [Member] | Operating Segments [Member]
Revenues for operating segments:
Total consolidated revenues	1,180,000	1,109,000
Property tax expense for operating segments:
Total consolidated property tax expense	108,000	110,000
Depreciation for operating segments:
Total consolidated depreciation	54,000	53,000
Income (loss) before income taxes for operating segments:
Income (loss) before income taxes	955,000	883,000
Assets for operating segments:
Total assets for operating segments	9,408,000	9,764,000
Petroleum Storage [Member]
Property tax expense for operating segments:
Total consolidated property tax expense	75,000	75,000
Depreciation for operating segments:
Total consolidated depreciation	162,000	161,000
Income (loss) before income taxes for operating segments:
Income (loss) before income taxes	192,000	(265,000)
Assets for operating segments:
Total assets for operating segments	11,158,000	11,543,000
Petroleum Storage [Member] | Operating Segments [Member]
Revenues for operating segments:
Total consolidated revenues	875,000	572,000
Property tax expense for operating segments:
Total consolidated property tax expense	75,000	75,000
Depreciation for operating segments:
Total consolidated depreciation	162,000	161,000
Income (loss) before income taxes for operating segments:
Income (loss) before income taxes	192,000	(265,000)
Assets for operating segments:
Total assets for operating segments	$ 11,158,000	$ 11,543,000

XML

Operating Segment Disclosures - Financial Information Used for Making Operating Decisions and Assessing Performance (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Revenues:
Total revenues	$ 1,180,000	$ 1,109,000
Property tax expense	184,000	186,000
Depreciation	218,000	215,000
Income (loss) before income taxes	654,000	127,000
Assets	23,868,000	24,812,000	23,369,000
Revenues, contractual	2,055,000	1,681,000
Leasing [Member]
Revenues:
Total revenues	1,180,000	1,109,000
Property tax expense	108,000	110,000
Depreciation	54,000	53,000
Income (loss) before income taxes	955,000	883,000
Assets	9,408,000	9,764,000
Leasing [Member] | Long Term Leases [Member]
Revenues:
Contractual Leases	935,000	875,000
Contingent Leases	25,000	25,000
Leasing [Member] | Short Term Leases [Member]
Revenues:
Contractual Leases	220,000	209,000
Petroleum Storage [Member]
Revenues:
Property tax expense	75,000	75,000
Depreciation	162,000	161,000
Income (loss) before income taxes	192,000	(265,000)
Assets	11,158,000	11,543,000
Petroleum Storage [Member] | Contractual [Member]
Revenues:
Revenues, contractual	$ 875,000	$ 572,000

XML

Principles of consolidation and basis of presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Principles of consolidation and basis of presentation

2. Principles of consolidation and basis of presentation:

The accompanying condensed consolidated financial statements include the accounts and transactions of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying condensed consolidated balance sheet as of December 31, 2014, has been derived from audited financial statements and the unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of March 31, 2015 and the results of operations and cash flows for the three months ended March 31, 2015 and 2014.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.

Environmental incidents:

The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense.

The Company charges to expense those costs that do not extend the life, increase the capacity or improve the safety or efficiency of the property owned or used by the Company.

New accounting standards:

The Company reviews new accounting standards as issued. Although some of these accounting standards may be applicable to the Company, the Company expects that none of the new standards will have a significant impact on its consolidated financial statements.

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Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Properties and equipment (net of accumulated depreciation)	$ 19,639,000	$ 19,789,000
Cash	3,695,000	2,927,000
Prepaid and other	534,000	653,000
Total assets	23,868,000	23,369,000
Notes payable:
Bank ($288,000 due within one year)	2,781,000	2,852,000
Dividend notes	11,787,000	11,787,000
Accounts payable and accrued expenses:
Property taxes	287,000	282,000
Environmental remediation	80,000	80,000
Other	355,000	261,000
Income taxes payable	184,000	13,000
Deferred income taxes, net	4,911,000	5,011,000
Total liabilities	20,385,000	20,286,000
Shareholders' equity:
Capital in excess of par	782,000	782,000
Retained earnings	2,635,000	2,235,000
Total shareholders' equity	3,483,000	3,083,000
Total liabilities and shareholders' equity	23,868,000	23,369,000
Common Class A [Member]
Shareholders' equity:
Common stock	$ 66,000	$ 66,000

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 400,000	$ 77,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	218,000	215,000
Amortization of deferred costs	11,000	1,000
Deferred income taxes	(100,000)	(27,000)
Other, principally net changes in prepaids, accounts payable, accrued expenses and current income taxes	378,000	169,000
Net cash provided by operating activities	907,000	435,000
Cash flows from investing activities:
Purchases of properties and equipment	(68,000)
Cash flows from financing activities:
Principal payments on note payable, bank	(71,000)	(72,000)
Increase in cash	768,000	363,000
Cash, beginning	2,927,000	3,305,000
Cash, ending	3,695,000	3,668,000
Cash paid for:
Income taxes	183,000	2,000
Interest	$ 24,000	$ 45,000

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Properties and Equipment - Properties and Equipment (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Properties and equipment gross	$ 32,569,000	$ 32,501,000
Accumulated depreciation total	12,930,000	12,712,000
Properties and equipment net	19,639,000	19,789,000
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Properties and equipment gross	112,000	112,000
Accumulated depreciation total	83,000	81,000
Properties on Lease or Held for Lease [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	10,253,000	10,246,000
Less accumulated depreciation:	1,054,000	1,000,000
Properties on Lease or Held for Lease [Member] | Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	4,701,000	4,701,000
Properties on Lease or Held for Lease [Member] | Building and Improvements, Steeple Street [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	5,552,000	5,545,000
Petroleum Storage Facility, on Lease [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	22,204,000	22,143,000
Less accumulated depreciation:	11,793,000	11,631,000
Petroleum Storage Facility, on Lease [Member] | Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	5,569,000	5,569,000
Petroleum Storage Facility, on Lease [Member] | Buildings and Structures [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	1,867,000	1,867,000
Petroleum Storage Facility, on Lease [Member] | Tanks and Equipment [Member]
Property, Plant and Equipment [Line Items]
Properties on lease or held for lease	$ 14,768,000	$ 14,707,000

XML

Description of Leasing Arrangements - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015 Terms LandLeases Parcels	Mar. 31, 2014	Jul. 01, 2015	Dec. 31, 2012 LandLeases	Dec. 31, 2014
Operating Leased Assets [Line Items]
Number of long-term land leases	9
Number of parcels upon which improvements have been completed	7
Estimated real property taxes attributable to the company land	$ 308,000	$ 325,000
Number of amended and restated leases				3
Initial term for each amended and restated leases	95 years
Number of renewal terms	2
Renewal terms of lease	50 years
Lamar Lease [Member]
Operating Leased Assets [Line Items]
Number of advertising locations	23
Number of billboard faces along interstate and primary highways leased	44
Lease expiration year	2045
Annual increment in base rent of lease, percentage	2.75%
Period for advance receipt of percentage of gross revenue on leases	12 months
Period to recognize specified lease revenue	30 days
Percentage of revenue receive in advance of gross revenues from each standard billboard	30.00%
Percentage of revenue receive in advance of gross revenues from each electronic billboard	20.00%
Parcel (6B) [Member]
Operating Leased Assets [Line Items]
Annual rent	194,000
Parcel (6C) [Member] | Scenario, Forecast [Member]
Operating Leased Assets [Line Items]
Annual rent			200,000
Parcel (6B) and (6C) [Member]
Operating Leased Assets [Line Items]
Period of tenant obligation	2 years
Notice period of lease	30 days
Steeple Street Building [Member]
Operating Leased Assets [Line Items]
Annual rent	140,000
Number of tenants occupying 65% of building	3
Percentage of building occupied by three tenants	65.00%
Term of short term leases	Five years or less
Short term leases rent receivable over contractual rent	$ 5,000				$ 6,000

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Description of business

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Description of business

1. Description of business:

Capital Properties, Inc. and its wholly-owned subsidiaries, Tri-State Displays, Inc., Capital Terminal Company and Dunellen, LLC (collectively referred to as “the Company”), operate in two segments, leasing and petroleum storage.

The leasing segment consists of (i) the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island (upon the commencement of which the tenants are required to construct buildings thereon, with the exception of a parking garage and Parcels 6B and 6C), (ii) the leasing of a portion of its building (“Steeple Street Building”) under short-term leasing arrangements and (iii) the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts to Lamar Outdoor Advertising, LLC (“Lamar”) which has constructed outdoor advertising boards thereon. The Company anticipates that the future development of its remaining properties in and adjacent to the Capital Center area will consist primarily of long-term ground leases. Pending this development, the Company leases these parcels for public parking under short-term leasing arrangements to Metropark, Ltd. (“Metropark”).

The petroleum storage segment consists of operating the petroleum storage terminal (the “Terminal”) containing 1,004,000 shell barrels and the Wilkesbarre Pier (the “Pier”), both of which are owned by the Company and are collectively referred to as the “Facility,” located in East Providence, Rhode Island for Sprague Operating Resources LLC (“Sprague”), a wholly-owned subsidiary of Sprague Resources LP, which stores and distributes petroleum products.

The principal difference between the two segments relates to the nature of the operations. In the leasing segment, the tenants under long-term land leases incur substantially all of the development and operating costs of the assets constructed on the Company’s land, including the payment of real property taxes on both the land and any improvements constructed thereon. In the petroleum storage segment, the Company is responsible for the operating and maintenance expenditures as well as capital improvements at the Facility.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Notes payable due within one year	$ 288,000
Common Class A [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	6,599,912	6,599,912
Common stock, shares outstanding	6,599,912	6,599,912

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Principles of consolidation and basis of presentation (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Environmental incidents

Environmental incidents:

The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense.

The Company charges to expense those costs that do not extend the life, increase the capacity or improve the safety or efficiency of the property owned or used by the Company.

New accounting standards

New accounting standards:

The Company reviews new accounting standards as issued. Although some of these accounting standards may be applicable to the Company, the Company expects that none of the new standards will have a significant impact on its consolidated financial statements.

Use of estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Fair value of financial instruments

The Company believes that the fair values of its financial instruments, including cash, receivables and payables, approximate their respective book values because of their short-term nature. The fair value of the bank note payable approximates its book value and was determined using borrowing rates currently available to the Company for loans with similar terms and maturities. The fair value of the dividend notes payable approximates their book value. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP, which included statistics for the issuance, rating and trading of corporate debt securities issued by other companies.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	CPTP
Entity Registrant Name	CAPITAL PROPERTIES INC /RI/
Entity Central Index Key	0000202947
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	6,599,912

XML

Properties and equipment (Tables)

3 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

Properties and Equipment

Properties and equipment consists of the following:

	March 31, 2015		December 31, 2014
Properties on lease or held for lease:
Land and land improvements	$	4,701,000	$	4,701,000
Building and improvements, Steeple Street		5,552,000		5,545,000
		10,253,000		10,246,000
Petroleum storage facility, on lease:
Land and land improvements		5,569,000		5,569,000
Buildings and structures		1,867,000		1,867,000
Tanks and equipment		14,768,000		14,707,000
		22,204,000		22,143,000
Office equipment		112,000		112,000
		32,569,000		32,501,000
Less accumulated depreciation:
Properties on lease or held for lease		1,054,000		1,000,000
Petroleum storage facility, on lease		11,793,000		11,631,000
Office equipment		83,000		81,000
		12,930,000		12,712,000

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Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Leasing	$ 1,180,000	$ 1,109,000
Petroleum storage facility	875,000	572,000
Total revenues	2,055,000	1,681,000
Expenses:
Leasing	225,000	226,000
Petroleum storage facility	683,000	837,000
General and administrative	320,000	296,000
Interest on notes:
Bank	25,000	47,000
Dividend notes	148,000	148,000
Total expenses	1,401,000	1,554,000
Income before income taxes	654,000	127,000
Income tax expense (benefit):
Current	354,000	77,000
Deferred	(100,000)	(27,000)
Total Income tax expense	254,000	50,000
Net income	$ 400,000	$ 77,000
Basic income per share based upon 6,599,912 shares outstanding	$ 0.06	$ 0.01

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Description of leasing arrangements

3 Months Ended

Mar. 31, 2015

Leases [Abstract]

Description of leasing arrangements

6. Description of leasing arrangements:

Long-term land leases:

As of March 31, 2015, the Company had entered into nine long-term land leases. Of the nine parcels, seven have had improvements constructed thereon.

Under the nine land leases, the tenants are required to negotiate any tax stabilization treaties or other arrangements, appeal any changes in real property assessments, and pay real property taxes assessed on land and improvements under these arrangements. Accordingly, real property taxes payable by the tenants are excluded from leasing revenues and leasing expenses on the accompanying consolidated statements of income. For the three months ended March 31, 2015 and 2014, the real property taxes attributable to the Company’s land under these leases totaled $308,000 and $325,000, respectively,

In 2012, the Company entered into three amended and restated leases, each for a portion of the original Parcel 6 (Parcels 6A, 6B and 6C). All three leases have an initial term of approximately 95 years with two renewal terms of fifty years each. With respect to the Parcel 6B and 6C leases, an affiliate of the leasehold mortgagee has guaranteed the payment by the tenants of rent and real property taxes as well as certain other tenant monetary obligations for a two-year period which terminated May 18, 2014. Commencing May 18, 2014, each of the lessees of Parcels 6B and 6C has the right to terminate its lease at any time during the remaining term of that lease upon thirty days’ notice. To date, no notice of termination has been received by the Company. The current annual rent on Parcel B is $194,000. On July 1, 2015, rent commences on Parcel 6C at the annual rent of $200,000.

Lamar lease:

The Company, through a wholly-owned subsidiary, leases 23 outdoor advertising locations containing 44 billboard faces along interstate and primary highways in Rhode Island and Massachusetts to Lamar under a lease which expires in 2045. The Lamar lease provides, among other things, for the following: (1) the base rent will increase annually at the rate of 2.75% for each leased billboard location on June 1 of each year, and (2) in addition to base rent, for each 12-month period commencing each June 1, Lamar must pay to the Company within thirty days after the close of the lease year 30% of the gross revenues from each standard billboard and 20% of the gross revenues from each electronic billboard for such 12-month period, reduced by the sum of (a) commissions paid to third parties and (b) base monthly rent for each leased billboard display for each 12-month period.

Short-term leases:

The Company leases the undeveloped parcels of land in or adjacent to the Capital Center area for public parking purposes to Metropark under a short-term cancellable lease.

At March 31, 2015, the Company has three tenants occupying 65 percent of the Steeple Street Building under short-term leases of five years or less at a current annual rental of $140,000. The Company is recognizing the revenue from these leases on a straight-line basis over the terms of the leases. At March 31, 2015 and December 31, 2014, the excess of straight-line over contractual rentals is $5,000 and $6,000, respectively, which is included in prepaid and other on the accompanying consolidated balance sheets. The Company also reports as revenue from tenants reimbursements for common area costs and real property taxes. The Company is currently marketing the remaining portions of the building for lease.

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Notes payable

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Notes payable

5. Notes payable:

Bank loan:

In December 2012, the Company and the Bank entered into an Amended and Restated Loan Agreement (“Loan Agreement”) pursuant to which the Company refinanced the $2,700,000 remaining balance of the 2010 debt to the Bank and borrowed an additional $3,025,000. Pursuant to the Loan Agreement, the Company amended and restated the then existing note to the Bank, the first mortgage on Parcels 3S and 5 and certain other loan agreements. For the first five years, the loan bears interest at the annual rate of 3.34% and thereafter will bear interest on either a floating rate basis at LIBOR plus 215 basis points with a floor of 3.25% or a fixed rate of 225 basis points over the five-year Federal Home Loan Bank of Boston Classic Advance Rate (3.34% at March 31, 2015). The loan has a term of ten years with repayments on a 20-year amortization schedule (monthly principal payments of $24,000 plus interest) and a balloon payment for the outstanding balance in December 2022. The Loan Agreement requires the Company to maintain at the Bank unencumbered liquid assets (cash or marketable securities) of $1,000,000. The Loan Agreement contains other customary terms and conditions.

In June and December 2014, the Company prepaid $1,000,000 and $1,300,000, respectively, on its bank loan payable. At March 31, 2015, the balloon payment is $563,000.

Financing fees totaling $71,000 are being amortized by the straight-line method over the 10-year term of the note (which approximates the effective interest rate method). Amortization of deferred financing fees is included in interest expense on the accompanying consolidated statements of income. At March 31, 2015 and December 31, 2014, unamortized deferred financing fees are $55,000 and $57,000, respectively, which are included in prepaid and other on the accompanying consolidated balance sheets.

Dividend notes:

In 2012, the Company issued $11,787,000 in principal face amount of 5% dividend notes due December 26, 2022 (the “Dividend Notes”). The Dividend Notes are unsecured general obligations of the Company bearing interest at the annual rate of 5% payable semi-annually on June 15 and December 15 to note holders of record on June 1 and December 1 of each year. The Dividend Notes may be redeemed in whole or in part at any time and from time to time at the option of the Company. The Dividend Notes are subject to mandatory redemption in an amount equal to the Net Proceeds from the sale of any real property owned by the Company or any of its subsidiaries. Net Proceeds is defined as the gross cash received by the Company from any such sale reduced by the sum of (a) costs relating to the sale, (b) federal and state income taxes as a result of the sale, and (c) the amount used by the Company to pay in whole or in part financial institution debts secured by a mortgage of the Company’s or any subsidiary’s real property regardless of whether such mortgage encumbers the property sold. The Company has obligated itself not to grant any mortgages on any of its property located in the Capitol Center District in Providence, Rhode Island, other than Parcels 3S and 5, and to cause its subsidiaries not to grant any such mortgages, in each case without the consent of the holders of two-thirds of the outstanding principal face amount of the Dividend Notes. The Dividend Notes contain other customary terms and conditions.

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Notes Payable - Additional Information (Detail) (USD $)	1 Months Ended		3 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2012	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Refinance amount under loan agreement		$ 2,700,000
Amount borrowed under loan agreement					3,025,000
Period for fixed rate of interest			5 years
Annual rate of interest			3.34%
Interest rate thereafter on floating rate basis			3.25%
Basis points on floating rate			2.15%
Basis points on fixed rate			2.25%
Federal home loan maturity period			5 years
Repayment term of long term loan			10 years
Amortization schedule of long term loan			20 years
Monthly principal payments of long term loan			24,000
Balloon payment due period			2022-12
Principal prepayment	1,000,000			1,300,000
Balloon payment			563,000
Deferred finance costs			71,000
Amortization period for financing fees			10 years
Unamortized deferred financing fees			55,000	57,000
Notes Payable to Banks [Member] | Federal Home Loan Bank of Boston [Member]
Debt Instrument [Line Items]
Annual rate of interest			3.34%
Notes Payable to Banks [Member] | Minimum [Member]
Debt Instrument [Line Items]
Loan agreement, minimum required balance of cash and marketable securities			1,000,000
Dividend Notes [Member]
Debt Instrument [Line Items]
Dividend notes		$ 11,787,000			$ 11,787,000
Dividend notes annual interest rate		5.00%			5.00%
Maturity date of long term loan		Dec. 26, 2022
Dividend notes description			The Dividend Notes are unsecured general obligations of the Company bearing interest at the annual rate of 5% payable semi-annually on June 15 and December 15 to note holders of record on June 1 and December 1 of each year.
Consent of the dividend notes holders required for to grant any mortgages			67.00%

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Income taxes (Tables)

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:

	March 31, 2015			December 31, 2014
Gross deferred tax liabilities:
Property having a financial statement basis in excess of tax basis	$	4,951,000		$	5,016,000
Insurance premiums and accrued leasing revenues		90,000			143,000
		5,041,000			5,159,000
Deferred tax assets		(130,000	)		(148,000	)
	$	4,911,000		$	5,011,000

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Operating segment disclosures

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Operating segment disclosures

9. Operating segment disclosures:

The Company operates in two segments, leasing and petroleum storage.

The Company makes decisions relative to the allocation of resources and evaluates performance based on each segment’s respective income before income taxes, excluding interest expense and certain corporate expenses.

Inter-segment revenues are immaterial in amount.

The following financial information is used for making operating decisions and assessing performance of each of the Company’s segments for the three months ended March 31, 2015 and 2014:

	2015		2014
Leasing:
Revenues:
Long-term leases:
Contractual	$	935,000	$	875,000
Contingent		25,000		25,000
Short-term leases		220,000		209,000
Total revenues	$	1,180,000	$	1,109,000
Property tax expense	$	108,000	$	110,000
Depreciation	$	54,000	$	53,000
Income before income taxes	$	955,000	$	883,000
Assets	$	9,408,000	$	9,764,000
Petroleum storage:
Revenues, contractual	$	875,000	$	572,000
Property tax expense	$	75,000	$	75,000
Depreciation	$	162,000	$	161,000
Income (loss) before income taxes	$	192,000	$	(265,000	)
Assets	$	11,158,000	$	11,543,000

The following is a reconciliation of the segment information to the amounts reported in the accompanying consolidated financial statements for the three months ended March 31, 2015 and 2014:

	2015			2014
Revenues for operating segments:
Leasing	$	1,180,000		$	1,109,000
Petroleum storage		875,000			572,000
Total consolidated revenues	$	2,055,000		$	1,681,000
Property tax expense for operating segments:
Leasing	$	108,000		$	110,000
Petroleum storage		75,000			75,000
		183,000			185,000
Unallocated corporate property tax expense		1,000			1,000
Total consolidated property tax expense	$	184,000		$	186,000
Depreciation:
Depreciation for operating segments:
Leasing	$	54,000		$	53,000
Petroleum storage segment:		162,000			161,000
		216,000			214,000
Unallocated corporate depreciation		2,000			1,000
Total consolidated depreciation	$	218,000		$	215,000
Income before income taxes:
Income (loss) before income taxes for operating segments:
Leasing	$	955,000		$	883,000
Petroleum storage		192,000			(265,000	)
		1,147,000			618,000
Unallocated corporate expenses		(320,000	)		(296,000	)
Interest expense		(173,000	)		(195,000	)
Total consolidated income before income taxes	$	654,000		$	127,000

	2015		2014
Assets:
Assets for operating segments:
Leasing	$	9,408,000	$	9,764,000
Petroleum storage		11,158,000		11,543,000
		20,566,000		21,307,000
Corporate cash		3,273,000		3,186,000
Other unallocated amounts		29,000		319,000
Total consolidated assets	$	23,868,000	$	24,812,000

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Petroleum storage facility and environmental incidents

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Petroleum storage facility and environmental incidents

7. Petroleum storage facility and environmental incidents:

Leasing of the Facility:

For the first four months of 2014, the Company leased a portion of the Facility (425,000 shell barrels) to Atlantic Trading & Marketing, Inc. (“ATMI”) who vacated the Facility on April 30, 2014.

Effective May 1, 2014, the Company entered into a Petroleum Storage Services Agreement (“the Agreement”) with Sprague Operating Resources, LLC (“Sprague”) for the lease of its entire storage capacity of 1,004,000 barrels for a term of five years. The base rent is $3,500,000, subject to annual cost-of-living adjustments on May 1 of each year. In addition, the Company will receive an additional $.15 for each barrel of throughput at the facility in excess of 3,500,000 barrels in any contract year (May 1 to April 30). Sprague has the right to extend the Agreement for two additional terms of five years each, provided that Sprague gives at least twelve months’ notice prior to the expiration of the initial or the extension term, as applicable. Commencing April 1, 2016 and on each April 1 thereafter during the initial term and any extension term, either party during the following thirty days has the right to terminate the Agreement as of April 30 of the year next following the year in which notice of termination is given.

Commencing May 1, 2015, Sprague will reimburse the Company for any real property taxes in excess of $290,000.

The Company incurred $108,000 in fees in connection with the execution of the Agreement, which amounts are being amortized on the straight-line method over the three-year non-cancellable portion of the term of the Agreement and are included in petroleum storage facility expenses on the accompanying consolidated statements of income for the three months ended March 31, 2015. At March 31, 2015 and December 31, 2014, unamortized deferred agreement costs were $75,000 and $84,000, respectively, which are included in prepaid and other on the accompanying consolidated balance sheets.

Wilkesbarre Pier:

The Pier is a deep-water pier in East Providence, Rhode Island owned by the Company which is integral to the operation of the Terminal. The Pier and the Terminal are connected by two petroleum pipelines which the Company has a permanent right to use.

Environmental incident (2002):

In 2002, during testing of monitoring wells at the Terminal, the Company’s consulting engineer discovered free floating phase product in a groundwater monitoring well located on that portion of the Terminal purchased in 2000. Laboratory analysis indicated that the product was gasoline, which is not a product the Company ever stored at the Terminal. The Company commenced an environmental investigation and analysis, the results of which indicate that the gasoline did not come from the Terminal. The Company notified the Rhode Island Department of Environmental Management (“RIDEM”). RIDEM subsequently identified Power Test Realty Partnership (“Power Test”), the owner of an adjacent parcel, as a potentially responsible party for the contamination. Getty Properties Corp. is the general partner of Power Test. Power Test challenged that determination and, after an administrative hearing, in October 2008 a RIDEM Hearing Officer determined that Power Test is responsible for the discharge of the petroleum product under the Rhode Island Oil Pollution Control Act, R.I.G.L. Section 46-12.5.1-3 and Rule 6(a) and 12(b) of the Oil Pollution Control Regulations. The RIDEM Decision and Order requires Power Test to remediate the contamination as directed by RIDEM and remanded the proposed penalty to RIDEM for recalculation. In November 2008, Power Test appealed the decision to the Rhode Island Superior Court. In addition, in November 2008, Power Test sought, and received, a stay of the Decision and Order of the Hearing Officer pending a clarification by RIDEM of the amount of the proposed penalty. In October 2009, RIDEM issued a recalculated administrative penalty, and, subsequently, the RIDEM Hearing Officer issued a recommended amended decision, which was affirmed as a final decision by the RIDEM Director in December 2009. In January 2010, Power Test appealed that decision to the Superior Court. In September 2011, the Superior Court affirmed the decision of the RIDEM director. Power Test has appealed that decision to the Rhode Island Supreme Court. The Supreme Court has not decided the appeal.

In April 2009, the Company sued Power Test and Getty Properties Corp. in the Rhode Island Superior Court seeking remediation of the site or, in the alternative, the cost of the remediation. On May 1, 2009, Power Test and Getty Properties Corp. removed the action to the United States District Court for the District of Rhode Island (“the Court”). On May 22, 2009, Power Test and Getty Properties Corp. answered the Complaint and filed a Counterclaim against Dunellen, LLC and Capital Terminal Company alleging that Dunellen, LLC and Capital Terminal Company are responsible for the contamination. Getty Properties Corp. and Power Test joined Getty Petroleum Marketing, Inc., the tenant under a long-term lease with Getty Properties Corp. of the adjacent property, as a defendant. The Company amended its Complaint to add Getty Petroleum Marketing, Inc. as a defendant. Getty Petroleum Marketing, Inc. moved for summary judgment against the Company, Getty Properties Corp. and Power Test. On December 5, 2011, Getty Petroleum Marketing, Inc. filed for bankruptcy under Chapter 11 of the United States Bankruptcy Act. Thereafter, with Bankruptcy Court approval, Getty Petroleum Marketing, Inc. rejected its lease with Getty Properties Corp. On August 24, 2012, the Bankruptcy Court approved a plan to liquidate Getty Petroleum Marketing, Inc. On January 15, 2013, the Court granted Getty Petroleum Marketing, Inc.’s motion for summary judgment against the Company, Getty Properties Corp. and Power Test, dismissing the Company’s third-party complaint.

The parties have agreed to stay the litigation pending a determination by the Rhode Island Supreme Court on the Power Test appeal.

There can be no assurance that the Company will prevail in this litigation.

Since 2003, the Company has not incurred significant costs in connection with this matter, other than ongoing litigation costs, and is unable to determine the costs it might incur to remedy the situation, as well as any costs to investigate, defend and seek reimbursement from the responsible party with respect to this contamination.

Environmental remediation (1994):

In 1994, a leak was discovered in a 25,000 barrel storage tank at the Terminal which allowed the escape of a small amount of fuel oil. All required notices were made to RIDEM. In 2000, the tank was demolished and testing of the groundwater indicated that there was no large pooling of contaminants. In 2001, RIDEM approved a plan pursuant to which the Company installed a passive system consisting of three wells and commenced monitoring the wells.

In 2003, RIDEM decided that the passive monitoring system previously approved was not sufficient and required the Company to design an active remediation system for the removal of product from the contaminated site. The Company and its consulting engineers began the pre-design testing of the site in the fourth quarter of 2004. The consulting engineers estimated a total cost of $200,000 to design, install and operate the system, which amount was accrued in 2004. Through 2006, the Company had expended $119,000 and has not incurred any significant costs since then. In 2011, RIDEM notified the company to proceed with the next phase of the approval process, notifying the abutters of the proposed remediation system even though RIDEM has not yet taken any action on the Company’s proposed plan. As designed, the system will pump out the contaminants which will be disposed of in compliance with applicable regulations. After a period of time, the groundwater will be tested to determine if sufficient contaminants have been removed. In 2014, the Company engaged new consultants to work with RIDEM to develop the next phase of the approval process. While the Company and its consulting engineers believe that the proposed active remediation system will correct the situation, it is possible that RIDEM could require the Company to expand remediation efforts, which could result in the Company incurring costs in excess of the remaining accrual of $80,000.

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Income taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income taxes

8. Income taxes:

Deferred income taxes are recorded based upon differences between financial statement and tax basis amounts of assets and liabilities. The tax effects of temporary differences which give rise to deferred tax assets and liabilities were as follows:

	March 31, 2015			December 31, 2014
Gross deferred tax liabilities:
Property having a financial statement basis in excess of tax basis	$	4,951,000		$	5,016,000
Insurance premiums and accrued leasing revenues		90,000			143,000
		5,041,000			5,159,000
Deferred tax assets		(130,000	)		(148,000	)
	$	4,911,000		$	5,011,000

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Fair value of financial instruments

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair value of financial instruments

10. Fair value of financial instruments:

The Company believes that the fair values of its financial instruments, including cash, receivables and payables, approximate their respective book values because of their short-term nature. The fair value of the bank note payable approximates its book value and was determined using borrowing rates currently available to the Company for loans with similar terms and maturities. The fair value of the dividend notes payable approximates their book value. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP, which included statistics for the issuance, rating and trading of corporate debt securities issued by other companies.

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Description of Business - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015 Segment
Description Of Business [Line Items]
Number of segments	2
Facility [Member]
Description Of Business [Line Items]
Number of shell barrels at terminal	1,004,000

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Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Gross deferred tax liabilities:
Property having a financial statement basis in excess of tax basis	$ 4,951,000	$ 5,016,000
Insurance premiums and accrued leasing revenues	90,000	143,000
Gross deferred tax liabilities	5,041,000	5,159,000
Deferred tax assets	(130,000)	(148,000)
Deferred tax liabilities, net of deferred tax assets	$ 4,911,000	$ 5,011,000

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Consolidated Statements of Income (Unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Basic income per share, shares outstanding	6,599,912	6,599,912

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Properties and equipment

3 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

Properties and equipment

4. Properties and equipment:

Properties and equipment consists of the following:

	March 31, 2015		December 31, 2014
Properties on lease or held for lease:
Land and land improvements	$	4,701,000	$	4,701,000
Building and improvements, Steeple Street		5,552,000		5,545,000
		10,253,000		10,246,000
Petroleum storage facility, on lease:
Land and land improvements		5,569,000		5,569,000
Buildings and structures		1,867,000		1,867,000
Tanks and equipment		14,768,000		14,707,000
		22,204,000		22,143,000
Office equipment		112,000		112,000
		32,569,000		32,501,000
Less accumulated depreciation:
Properties on lease or held for lease		1,054,000		1,000,000
Petroleum storage facility, on lease		11,793,000		11,631,000
Office equipment		83,000		81,000
		12,930,000		12,712,000
	$	19,639,000	$	19,789,000

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Operating Segment Disclosures - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015 Segment
Segment Reporting [Abstract]
Number of segments	2

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Operating segment disclosures (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Financial Information Used for Making Operating Decisions and Assessing Performance

The following financial information is used for making operating decisions and assessing performance of each of the Company’s segments for the three months ended March 31, 2015 and 2014:

	2015		2014
Leasing:
Revenues:
Long-term leases:
Contractual	$	935,000	$	875,000
Contingent		25,000		25,000
Short-term leases		220,000		209,000
Total revenues	$	1,180,000	$	1,109,000
Property tax expense	$	108,000	$	110,000
Depreciation	$	54,000	$	53,000
Income before income taxes	$	955,000	$	883,000
Assets	$	9,408,000	$	9,764,000
Petroleum storage:
Revenues, contractual	$	875,000	$	572,000
Property tax expense	$	75,000	$	75,000
Depreciation	$	162,000	$	161,000
Income (loss) before income taxes	$	192,000	$	(265,000	)
Assets	$	11,158,000	$	11,543,000

Reconciliation of Segment Information

The following is a reconciliation of the segment information to the amounts reported in the accompanying consolidated financial statements for the three months ended March 31, 2015 and 2014:

	2015			2014
Revenues for operating segments:
Leasing	$	1,180,000		$	1,109,000
Petroleum storage		875,000			572,000
Total consolidated revenues	$	2,055,000		$	1,681,000
Property tax expense for operating segments:
Leasing	$	108,000		$	110,000
Petroleum storage		75,000			75,000
		183,000			185,000
Unallocated corporate property tax expense		1,000			1,000
Total consolidated property tax expense	$	184,000		$	186,000
Depreciation:
Depreciation for operating segments:
Leasing	$	54,000		$	53,000
Petroleum storage segment:		162,000			161,000
		216,000			214,000
Unallocated corporate depreciation		2,000			1,000
Total consolidated depreciation	$	218,000		$	215,000
Income before income taxes:
Income (loss) before income taxes for operating segments:
Leasing	$	955,000		$	883,000
Petroleum storage		192,000			(265,000	)
		1,147,000			618,000
Unallocated corporate expenses		(320,000	)		(296,000	)
Interest expense		(173,000	)		(195,000	)
Total consolidated income before income taxes	$	654,000		$	127,000

	2015		2014
Assets:
Assets for operating segments:
Leasing	$	9,408,000	$	9,764,000
Petroleum storage		11,158,000		11,543,000
		20,566,000		21,307,000
Corporate cash		3,273,000		3,186,000
Other unallocated amounts		29,000		319,000
Total consolidated assets	$	23,868,000	$	24,812,000