Colonial Properties Announces Multifamily Activity.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust, announced today the development of three communities in Austin, Texas, totaling $87 million, and the sale of eight multifamily properties for a sales price of $122.9 million. As a result of the sale, the company reduced secured debt by $22.5 million; net proceeds from the sale reduced the company's unsecured line of credit.

Seven of the properties sold, totaling 1,629 units, were acquired April 1 as part of the Cornerstone Realty Income Trust merger. Three of these properties were located in Atlanta, Ga., two in Ft. Worth, Texas, one in Dallas, Texas, and one in Charlotte, N.C. The average age of these properties was 25 years. The eighth property, Colonial Village at Lake Mary in Orlando, Fla., was 13.5 years old and had 504 units.

The sale of these eight properties is part of a larger and ongoing transaction that was first announced in April. Combined, the company sold 4,207 units for a total sales price of $266.7 million, representing a 6.3 percent cap rate.

"We are pleased that we were able to sell these properties at a favorable return," said Paul Earle, executive vice president of the company's multifamily division. "Most of these Cornerstone assets did not fit our portfolio strategy, and we were able to locate an interested buyer quickly. This is another step in our progress towards the company's objective of maximizing returns."

The company also announced it will build three Colonial Grand multifamily communities in Austin, Texas. The three properties, which will add 996 units to the company's portfolio, will stabilize starting in the second quarter of 2007 and continuing through the fourth quarter of 2007. The company expects to earn 8 percent to 9 percent on its $87 million investment.

"Austin fits the company's criteria for investment with its top quartile placement in terms of job growth, population growth and household income growth," Earle said. "By our estimates, Austin ranks in the top five places to consider for investment opportunities."

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. The company has a total market capitalization of approximately $5.5 billion. As of July, 2005, the company owned or managed 47,700 apartment units, 7.9 million square feet of office space and 13.5 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the cost and availability of new debt financings; volatility of interest rates or capital market conditions; effect of any terrorist activity; or other factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the Company assumes no liability to update the information in this press release.

The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Business-Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, which discuss these and other factors that could adversely affect the Company's results.