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Capital Automotive REIT Declares Fourth Quarter 1998 Dividend

16 December 1998

Capital Automotive REIT Declares Fourth Quarter 1998 Dividend of $0.32

    MCLEAN, Va., Dec. 16 -- Capital Automotive REIT
today announced that its Board of Trustees has declared a
quarterly cash dividend of $0.32 per share for the fourth quarter ending
December 31, 1998.  The dividend is payable on January 29, 1999 to
shareholders of record as of December 31, 1998.
    Thomas D. Eckert, president and chief executive officer, stated, "The
fourth quarter dividend reflects the successful execution of our business
strategy.  Our annual dividend for 1998 will be $0.88 per share, which is
approximately 95% of our estimated funds from operations ("FFO") for the year.
This relatively high annual payout ratio of FFO is due to our higher taxable
income, which is driven by the limited tax depreciation we receive from our
real estate portfolio, which consists of approximately 50% non-depreciable
land assets."
    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.
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," "pro forma" 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, acquisitions that are pursued by the Company may not
be consummated for a variety of reasons, including the failure to reach
agreement with the seller 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.