Colonial Properties Trust Announces Sale of Eight Multifamily Properties.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust that owns a portfolio of multifamily, office and retail properties, announced today the sale of eight multifamily properties for a sales price of $98.8 million. As a result of the sale, the company reduced secured debt on these properties by $71.7 million. Additionally, the company pre-paid $16.6 million in cross-collateralized debt on a property still held for sale. The remaining proceeds reduced the company's unsecured line of credit.

Colonial Properties acquired the assets on April 1, when it merged with Cornerstone Realty Income Trust. The eight properties, representing 2,458 units, are located in Texas; four in Dallas, two in Fort Worth, and one each in Austin and San Antonio. The average age of these properties is 21.2 years.

"We continue to position our portfolio to maximize returns, and we are pleased that we have been able to sell these properties at a favorable price," said Paul Earle, executive vice president of the company's multifamily division. "This is part of our ongoing strategy to reduce the average age of our portfolio and concentrate our investments in the Sunbelt markets with the highest growth potential."

This sale is part of an ongoing transaction announced in April. Since the April announcement, 6,665 units at 22 properties have been sold for total proceeds of $365.7 million, representing a 6.5 percent capitalization rate.

The properties included in this transaction are Cutters Point, Eagle Crest, TimberGlen, and Toscana, all in Dallas. Also sold were Arbors on Forest Ridge and Silverbrook I and II, in Fort Worth, Meridian in Austin, and Sierra Ridge in San Antonio.

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 Sept. 27, the company owns or manages 48,170 apartment units, 20 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.