Capital Automotive Announces Canadian Joint Venture and Initial Investments

MCLEAN, Va., June 2 -- Capital Automotive REIT , today announced that it has formed a joint venture with Kimco Realty Corporation to acquire automotive retail real estate in Canada. The primary strategy of the joint venture is to purchase real estate to be leased to operators of franchised automotive dealerships under long- term, triple-net leases. In addition, the venture will also provide mortgages, facility improvements, construction financing and takeout commitments in certain circumstances. The investments are to be sourced and managed by Capital Automotive and are subject to review and approval by a joint oversight committee consisting of Capital Automotive and Kimco management personnel. There are an estimated 3,500 franchised automotive dealerships in Canada with a total value of approximately $5 billion (Canadian).

Additionally, the joint venture has closed on its first acquisitions totaling $6.5 million (Canadian). These investments consist of two automotive dealerships located in Toronto, Ontario and are leased to a multi-franchised, multi-location dealer group who has been in the business for approximately 18 years. The dealer group operates two Nissan franchises and an Infinity franchise at these locations.

Thomas D. Eckert, President and CEO of Capital Automotive stated, "We are extremely excited about expanding our business into Canada with our new partner Kimco. Kimco has significant experience having been in the Canadian market since 2001. We believe that by combining our industry knowledge and contacts with their market and structuring capabilities we can create value for Canadian automobile dealers and our shareholders."

Milton Cooper, Kimco's Chairman and CEO stated, "We are proud to be expanding our Canadian portfolio by teaming up with the premier capital provider for automobile dealerships in the U.S. The venture continues and expands our commitment to building our Canadian business."

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. As of March 31, 2005, the Company had invested nearly $2.3 billion in 343 properties, consisting of 505 automotive franchises in 31 states. Approximately 76% of the Company's total real estate investments are located in the top 50 metropolitan areas in the U.S. in terms of population. Approximately 73% of the Company's portfolio is invested in properties leased to the "Top 100" dealer groups as published by Automotive News. The properties are leased under long-term, triple-net leases with a weighted average initial lease term of approximately 15.1 years. Additional information on Capital Automotive is available on the Company's Website at http://www.capitalautomotive.com/.

About Kimco Realty

Kimco, a publicly-traded real estate investment trust, has specialized in shopping center acquisitions, development and management for over 45 years, and owns and operates the nation's largest portfolio of neighborhood and community shopping centers. The Company owns interests in 781 properties comprising approximately 114.0 million square feet of leasable space located throughout 42 states, Canada and Mexico.

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