Colonial Properties Trust Increases Common Dividend.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), announced today its Board of Trustees has approved a dividend of $0.68 per common share, payable on February 13, 2006 to shareholders of record as of February 6, 2006, representing an ex-dividend date of February 2, 2006. This annualized dividend of $2.72 per share represents a $0.02 increase over the dividend rate for 2005. This represents the thirteenth consecutive year that the Company has increased its dividend. Thomas H. Lowder, Colonial Properties' chairman and chief executive officer noted, "Colonial Properties has increased its dividend each year since our initial public offering (IPO) in 1993. We continue to provide an above average yield for our investors."

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. 30, the company owns or manages 48,100 apartment units, 20.2 million square feet of office space and 13.6 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.