Capital Automotive Declares Quarterly Preferred Share Dividends

MCLEAN, Va., July 13 -- 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 dividend for the period commencing May 1, 2004 and ending July 31, 2004 of $0.46875 per Series A Cumulative Redeemable Preferred Share of beneficial interest of the Company, payable on August 16, 2004 to shareholders of record as of August 2, 2004. On an annualized basis, this payment represents a 7.8% yield based on Friday's closing stock price.

The Board of Trustees has also declared its initial preferred dividend payment equal to $0.5222 per Series B Cumulative Redeemable Preferred Share (which is the pro-ration of the regular quarterly dividend of $0.50 per share from the date of original issue (April 27, 2004) through July 31, 2004). The Series B Preferred Dividend is payable on August 16, 2004 to shareholders of record as of August 2, 2004. On an annualized basis, this payment represents a 7.8% yield based on Friday's closing stock price.

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