Capital Automotive REIT

8270 Greensboro Dr., Suite 950

Year founded: 1997

Industry: Real estate

Post 200 Category: Top 125 Companies

Revenue: $201.93 Million

Net Income/Loss: $67.68 Million

Earnings per share: $1.54

Dividend: $1.70

Stockholder equity: $933.93 Million

Auditor: Ernst & Young LLP

Stock: CARS

Assets: $2.16 Billion

Market capitalization: $1.48 Billion

52-week high: 35.65 1/3/2005

52-week low: 25.12 5/17/2004

President and CEO: Thomas D. Eckert

SVP and CFO: David S. Kay

Employees: 30

Local employees: 29

Description: Capital Automotive REIT buys land and buildings owned by large car dealerships and their repair shops and then leases them back to the operators. Since its debut as a public company in 1998, the real estate investment trust has bought several hundred properties across the country for a total of more than $2.2 billion.

Developments: Capital Automotive REIT completed more than $407 million of real estate purchases and other investments during the year. In late December, it raised $147.1 million through a secondary stock offering of 4.6 million common shares priced at $33.25. Most of that money was used to repay debt. Last year, the firm's purchases focused on properties owned by the largest dealerships, including those that have multiple locations or sell several brands of cars. Buying larger dealerships is designed to reduce risk, since the strength of the auto industry fluctuates with swings in the economy and interest rates, giving a solo dealership less staying power. The company structures real estate transactions as sale-leaseback deals, giving this specialty REIT no vacancies and no reason to look for tenants. It did a number of repeat transactions with existing auto dealerships, in addition to acquiring new properties. Capital Automotive's financial strength improved, and the firm received its first investment-grade rating, which should help to lower future borrowing costs. "The achievement of an investment-grade rating is a milestone in our short history," said Thomas D. Eckert, president and chief executive. The company's executives hope to buy about $200 million of automobile-related real estate in 2005.