Capital Automotive Declares Quarterly Preferred Share Dividends

MCLEAN, Va., July 12 -- 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, 2005 and ending July 31, 2005 of $0.46875 per Series A Cumulative Redeemable Preferred Share of beneficial interest of the Company, payable on August 15, 2005 to shareholders of record as of August 1, 2005. On an annualized basis, this payment represents a 7.4% yield based on Friday's closing stock price.

The Board of Trustees has also declared a dividend for the period commencing May 1, 2005 and ending July 31, 2005 of $0.50 per Series B Cumulative Redeemable Preferred Share of beneficial interest of the Company, payable on August 15, 2005 to shareholders of record as of August 1, 2005. On an annualized basis, this payment represents a 7.6% 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. The Company's primary strategy is to acquire 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/.