Capital Automotive Announces 27th Consecutive Increase in Quarterly Common Share Dividend

MCLEAN, Va., Oct. 12, 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 $0.4265 per common share of beneficial interest for the third quarter ending September 30, 2004. The dividend is payable on November 19, 2004 to shareholders of record as of November 8, 2004.

This is the 27th consecutive increase in the Company's quarterly common share dividend and represents an annualized rate of $1.706 per share and a 5.2% yield based on Friday's closing stock price. The Company reaffirms its 2004 annual common share dividend guidance of $1.70 per share, of which approximately 10 to 15% is estimated to be return of capital that 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 (877) 208-9533, or through the Internet at http://www.amstock.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/.

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