Capital Automotive: Ahead of the Pack.

Kiplinger's Pick of the Day Web Feature, June, 2004

Byline:Kiplinger Washington Editors

High-yield real estate investment trusts (REITs) took a hit this spring but are still riding high. The real estate operations industry climbed nearly 20% in the past 12 months alone. But popularity on Wall Street tends to take some of the punch out of REIT yields and, in some cases, the stock's growth prospects. Capital Automotive REIT (CARS) looks like an exception. The company owns car-dealership real estate and leases it in 31 states to some 450 franchises. The fragmented nature of the car-dealership and service-station industry will give CARS room to maneuver -- if it's smart about acquisitions. A.G. Edwards' analyst Art Havener upgraded the company to a "buy" based on its ability to generate cash flow at a faster...

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