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Capital Automotive REIT Announces Share Repurchase Program

8 September 1998

Capital Automotive REIT Announces Three Million Share Repurchase Program

    MCLEAN, Va., Sept. 8 /PRNewsire/ -- Capital Automotive REIT
announced today that its Board of Trustees has authorized the repurchase of up
to three million shares, or approximately 10% of its Common Stock outstanding.
Purchases will be made from time to time in open market transactions at
prevailing prices or in negotiated private transactions at management's
discretion. The share repurchase will commence immediately.
    Thomas D. Eckert, president and chief executive officer, stated, "The
repurchase program reflects our confidence in the intrinsic value of our
company.  We believe our stock is significantly undervalued relative to our
net asset value and the future growth potential of Capital Automotive.  While
we maintain a robust pipeline of attractive acquisition opportunities in the
marketplace, Capital Automotive stock represents an exceptional investment at
current price levels.  Our strong, unlevered balance sheet and financial
flexibility permits us to commence this program immediately as well as
continue with our strategy of pursuing high quality acquisitions."
    Capital Automotive REIT, headquartered in McLean, Virginia, is a
self-administered, self-managed real estate investment trust formed to acquire
the real property and improvements used by operators of multi-site,
multi-franchised motor vehicle dealerships and motor vehicle related business.
As of June 30, 1998, Capital Automotive owned 64 properties in 14 states
occupied by 96 franchises representing 27 automotive brands.  Additional
information on Capital Automotive REIT is available on the Company's website
at http://www.capitalautomotive.com.
    The matters discussed in this press release include forward-looking
statements.  In addition, when used in this press release, the words "intends
to," "believes," "anticipates," "expects" and similar expressions are intended
to identify forward-looking statements.  Such statements are subject to a
number of risks and uncertainties.  Actual results in the future could differ
materially and adversely from those described in the forward-looking
statements as a result of various important factors, including the general
economic climate, the supply of and demand for automotive properties, interest
rate levels, the availability of financing, and other risks associated with
the acquisition and leasing of properties, including risks that the tenants
will not pay rent or that operating costs may be greater than anticipated and
the other risk factors set forth in the Company's filings with the Securities
and Exchange Commission.  The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements that
may be made to reflect any future events or circumstances.