Cornerstone Announces Quarterly Dividends.

RICHMOND, Va. -- Cornerstone Realty Income Trust, Inc. (NYSE: TCR) announced today that a regular quarterly cash dividend of $0.20 per common share will be paid on October 20, 2004 to common shareholders of record on September 30, 2004.

Cornerstone also announced a regular quarterly cash dividend for its Series A Convertible Preferred shares (NYSE:TCRPR). A dividend of $0.5938 per Series A preferred share will be paid on October 20, 2004 to Series A preferred shareholders of record on September 30, 2004.

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from results expressed or implied by such forward-looking statements. Such factors include, among other things, risks associated with the ability to obtain property financing, unanticipated adverse business developments affecting the company, adverse changes in the real estate markets, and local as well as general economic and competitive factors. There is no assurance that planned events or results will be achieved. In addition, the timing and level of distributions to common shareholders are within the discretion of the company's board of directors. The company on a regular basis considers what level of distributions to common shareholders is appropriate.

Cornerstone Realty Income Trust, Inc. (NYSE:TCR) is a fully integrated, self-managed and self-advised real estate company that has operated as a real estate investment trust (REIT) since 1993. The company focuses on the ownership and management of multifamily communities in select markets in Virginia, North Carolina, South Carolina, Georgia and Texas. Currently Cornerstone owns 87 apartment communities with 22,910 units, a third-party property management business, apartment land under development, and ownership interests in four joint ventures. Cornerstone is headquartered in Richmond, Virginia and its common stock trades on the New York Stock Exchange under the symbol "TCR." For more information about Cornerstone, visit the company's web site at www.cornerstonereit.com.