Capital Automotive Announces 24th Consecutive Increase in Quarterly Dividend

MCLEAN, Va., Jan. 20, 2004 -- 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 dividend of $0.4165 per common share of beneficial interest for the fourth quarter ending December 31, 2003. The dividend is payable on February 19, 2004 to shareholders of record as of February 9, 2004.

This is the 24th consecutive increase in the Company's quarterly dividend and represents an annualized rate of $1.666 per share and a 5.0% yield based on Friday's closing stock price. The Company reaffirms its 2004 annual dividend guidance of $1.70 per share, of which approximately 10 to 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, 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/.