Capital Automotive Announces Tax Status of 2003 Distributions

MCLEAN, Va., Jan. 13, 2004 -- Capital Automotive REIT , the nation's leading specialty finance company for automotive retail real estate, today announced the tax status of its 2003 distributions made to shareholders. The characterization of the distributions is as follows:

                                                      Distribution Type
                                    Total           Taxable
   Record        Payment        Distribution        Ordinary    Return of
    Date          Date            Per Share          Income      Capital

  02/10/03      02/20/03           $0.4065          $0.2710      $0.1355
  05/09/03      05/20/03            0.4085           0.2724       0.1361
  08/08/03      08/19/03            0.4110           0.2740       0.1370
  11/10/03      11/20/03            0.4140           0.2760       0.1380

     Total                         $1.6400          $1.0934      $0.5466
                                   100.00%           66.67%       33.33%

Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Capital Automotive distributions.

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/.

  Contact Information:

  David S. Kay
  Senior Vice President, Chief Financial Officer and Treasurer
  Capital Automotive REIT
  703.394.1302