Capital Automotive Announces 16th Consecutive Increase in Quarterly Dividend

MCLEAN, Va., Jan. 22 Capital Automotive REIT , the nation's leading specialty finance company for automotive retail real estate, today announced that its Board of Trustees has declared a quarterly cash dividend of $0.3890 per share for the fourth quarter ending December 31, 2001. The dividend is payable on February 20, 2002 to shareholders of record as of February 11, 2002.

This is the 16th consecutive increase in the Company's quarterly dividend and represents an annualized rate of $1.556 per share and a 7.5% yield based on Friday's closing stock price. The Company reaffirms its 2002 annual dividend guidance of $1.60 per share, of which 15% is estimated to be return of capital, which is not taxed as ordinary income to its shareholders.

Capital Automotive is committed to providing shareholders with stable and predictable quarterly dividend payments and consistent dividend growth. The dividend payments are supported by the Company's strong tenant base, conservative capital structure, and high quality real estate portfolio. As of December 31, 2001, the Company had invested approximately $1.23 billion in 260 properties, consisting of 365 automotive franchises in 27 states.

Capital Automotive offers a Dividend Reinvestment and Share Purchase Plan to all shareholders. The Plan provides an economical and convenient way for current shareholders and other interested new investors to invest in Capital Automotive. Inquiries regarding the Plan should be directed to American Stock Transfer and Trust Company, the Plan administrator, at 800-278-4353.

Capital Automotive, headquartered in McLean, Virginia, is a self- administered, self-managed real estate investment trust formed to acquire real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses. Additional information on Capital Automotive is available on the Company's Web site at http://www.capitalautomotive.com .