Capital Automotive Announces 23rd Consecutive Increase in Quarterly Dividend

MCLEAN, Va., Oct. 14, 2003 -- 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 $0.4140 per share for the third quarter ending September 30, 2003. The dividend is payable on November 20, 2003 to shareholders of record as of November 10, 2003.

This is the 23rd consecutive increase in the Company's quarterly dividend and represents an annualized rate of $1.656 per share and a 5.2% yield based on Friday's closing stock price. The Company reaffirms its 2003 annual dividend guidance of $1.65 per share, of which approximately 27-30% is estimated to be return of capital which is not taxed as ordinary income to its shareholders, and its 2004 annual dividend guidance of $1.70 per share.

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, by calling 800-278-4353, or through the Internet at www.investpower.com.

About Capital Automotive

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 Website at http://www.capitalautomotive.com/.