The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Capital Automotive Announces 20th Consecutive Increase in Quarterly Dividend

Capital Automotive Announces 20th Consecutive Increase in Quarterly Dividend

    MCLEAN, Va., Jan. 21 /PRNewswire-FirstCall/ -- 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 $0.4065 per share for the fourth quarter ending
December 31, 2002. The dividend is payable on February 20, 2003 to
shareholders of record as of February 10, 2003.
    This is the 20th consecutive increase in the Company's quarterly dividend
and represents an annualized rate of $1.626 per share and a 7.10% yield based
on Friday's closing stock price. The Company reaffirms its 2003 annual
dividend guidance of $1.65 per share, of which approximately 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.
    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 that acquires 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 .

    Certain matters discussed within this press release are forward-looking
statements within the meaning of the federal securities laws. Although the
Company believes that the expectations reflected in the forward-looking
statements are based upon reasonable assumptions, the Company's future
operations will depend on a number of factors that may differ, some
materially, from the Company's assumptions. These factors, which could cause
the Company's actual results to differ materially from those set forth in the
forward-looking statements, include risks that our tenants will not pay rent;
risks that our growth will be limited if we cannot obtain additional capital;
risks of financing, such as our ability to consummate planned and additional
financings on terms which are acceptable to us and our ability to meet
existing financial covenants; risks that planned and additional acquisitions
may not be consummated; risks that our operating costs will be higher than
expected; risks related to the automotive industry, such as the ability of our
tenants to compete effectively in the automotive retail industry and the
ability of our tenants to perform their lease obligations as a result of
changes in any manufacturer's production, inventory, marketing or other
practices; environmental and other risks associated with the acquisition and
leasing of automotive properties; risks related to our status as a REIT for
federal income tax purposes, such as the existence of complex regulations
relating to our status as a REIT, the effect of future changes in REIT
requirements as a result of new legislation and the adverse consequences of
the failure to qualify as a REIT; and those risks detailed from time to time
in the Company's SEC reports, including its annual report on Form 10-K and its
quarterly reports on Form 10-Q. The Company makes no promise to update any of
the forward-looking statements, or to publicly release the results if the
Company revises any of them.

    Contact Information
    David S. Kay
    Senior Vice President and Chief Financial Officer
    Capital Automotive REIT
    703.394.1302