CAPITAL PROPERTIES INC /RI/ Management’s Report of Financial Condition and Results of Operations (Form 10-Q)
Certain portions of this report, and in particular 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 regarding future events. The Company cautions that such 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 Company’s ability to generate adequate cash; the recoverability of the excess of linear rents over contractual rents when due over the term of long-term leases; default by the tenant under one or more of the leases; the start of additional long-term land leases; changes in economic conditions that could affect the current or future development of the Company’s parcels; the impact of the COVID-19 pandemic on the Company’s economy, parking operations and financial performance; exposure to reclamation costs associated with its former operation of the oil storage facility and the resolution of the Sprague action against the Company in connection with the construction of the dolphin at the terminal jetty. The Company does not undertake to update any forward-looking statements in response to new information, future events or otherwise. 1. Overview:
Critical accounting conventions:
The Company believes that its revenue recognition policy for long-term leases with anticipated rent increases meets the definition of a critical accounting policy which is described in the Company’s Form 10-K for the year ended
Historically, the Company had sufficient liquidities to finance its activities.
Cash and cash commitments:
his total rent arrears is
For the three months ended
The Company does not expect to receive contingent rent from Metropark in 2022.
The terminal’s sales contract and related documentation stipulate that the company is required to obtain an approved remediation plan and address contamination caused by a 1994 leak from a storage tank at the terminal. To
incurred in the remaining quarters of 2022. Any subsequent increase or decrease in the expected cost of remediation will be recognized in the gain (loss) on sale of discontinued operations, net of tax.
The terminal sale agreement also contained a cost-sharing clause for a Duke of Alba under which all costs incurred in connection with the construction of the Duke of Alba beyond the initial estimate of
The declaration of future dividends will depend on future earnings and financial performance. 3. Results of operations:
Three months ended
March 31, 2022compared to three months ended March 31, 2021:
Turnover, leasing on the rise
Operating expenses increased
General and administrative expenses increased
For the three months ended
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