n e w s

June 16, 2003
For more information, Call Linda Geiss
Vice President, Colonial Properties Trust
205.250.8768, lgeiss@colonialprop.com

NAIOP NAMES COLONIAL PROPERTIES TRUST
AS 2003 DEVELOPER OF THE YEAR

Washington, D.C - The National Association of Industrial and Office Properties (NAIOP), the nation's leading trade association for developers, owners, investors and asset managers in industrial, office and related commercial real estate, today announced that Colonial Properties Trust (NYSE:CLP) is the winner of the organization's coveted 2003 Developer of the Year award.

"Colonial Properties' ability to succeed in this challenging business environment is a great testament and validation of their business strategy, strategic vision and ability to execute", said Daniel DeMarco, NAIOP's Chairman of the Board. "Colonial's unwavering focus on their customers is one factor that allows them to generate the consistent long term performance that their shareholders expect."

The 2003 Developer of the Year award will be presented to Thomas H. Lowder, President and Chief Executive Officer (CEO) of Colonial Properties, on October 16, 2003 during NAIOP's 2003 Annual Conference in Boston. Mr. Lowder will also deliver an address during a special luncheon to honor the company, which culminates with a keynote address by former US Senator, George Mitchell.

"Colonial Properties Trust is honored to receive the distinguished National Developer of the Year Award," stated Lowder. "We have found that developing High Performance Workplaces® integrated with our multifamily and retail components delivers clients, residents and retailers the competitive edge they need to succeed in today's marketplace. For our peers to acknowledge our successes in that arena is truly an honor."

Given annually to the developer that best exemplifies leadership and innovation in the commercial real estate market, the Developer of the Year award is determined by a five-member selection committee comprised of industry peers, who use six criteria to evaluate entries: industry and business leadership, involvement in NAIOP, quality of products and services, financial consistency and stability, ability to adapt to market conditions and social consciousness.

Nimbly Navigating Challenging Times

As one of the largest diversified real estate investment trusts (REITS) in the United States, Colonial Properties' ability to take advantage of market timing and economic cycles has enabled the company to post improved performance for the ninth consecutive year, a remarkable achievement given the present market environment.

Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. Highlights from the past year include:

§ The continued development of Colonial TownPark in Lake Mary, Florida, a 175-acre mixed-use development, which to date includes 500,000 square feet of office space and Colonial Grand, a 456-unit upscale apartment home community; § The ground breaking of the retail component of Colonial TownPark, a 250,000 square foot lifestyle center that will be anchored by Amstar 12 Stadium Cinema, Albertson's Grocery Store and Hampton Inn and Suites and will include unique restaurants, upscale shops, loft apartments and office-above-retail completing our Main Street atmosphere; § The acquisition of the Heathrow International Business Center (HIBC) in Orlando, Florida - now named Colonial Center Heathrow - an 804,000 square foot office park with 102 acres of development land for multifamily, office and retail. § The acquisition of the Colonnade in Birmingham, Alabama, a 564,000 square foot Class A mixed-use office and retail park with a strong mix of regional and national clients;

Since the company's initial public offering in 1993, Colonial Properties Trust's total market capitalization has grown from $425 million to $2.7 billion. During this same period, Colonial has posted an average annual per share growth rate for funds from operations (FFO) of 8.6%, while raising dividends by an average of 4.9% annually. As a result of its strong balance sheet and increase in earnings, Colonial Properties increased dividends for the tenth consecutive year.

Overall, the company operates a portfolio of 106 multifamily, office and retail properties in high-growth cities located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Mr. Lowder attributes Colonial Properties' solid growth and success to the company's core values, Customer First, Teamwork and Trust, a value-added approach to investing and its foresight to capitalize on the growing trend of creating "lifestyle communities", where people live, work and shop.

Uncompromising Industry and Community Involvement

The NAIOP selection committee also found that Colonial Properties demonstrates a strong commitment to the industry through its consistent support and participation in NAIOP at the local and national levels. Moreover, Colonial Properties is an active participant in NAIOP's National Forums, which provide members from across North America the opportunity to discuss, debate and exchange ideas with other industry leaders.

In addition, Colonial Properties continues to set an example of giving back to the community. In 2002, the company made charitable contributions to more than 90 organizations. In addition, Mr. Lowder recently served as the chair of a Central Alabama United Way fundraising campaign that raised over $28 million.

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About NAIOP: The National Association of Industrial and Office Properties is the nation's leading trade association for developers, owners, investors and asset managers in industrial, office and related commercial real estate. Founded in 1967, NAIOP is comprised of more than 10,500 members in 48 North American chapters and provides networking opportunities, educational programs, research on trends and innovations and strong legislative representation. For more information, visit www.naiop.org.

About Colonial Properties: Colonial Properties Trust is a diversified REIT that, through its subsidiaries, owns a portfolio of 106 multifamily, office and retail properties where you live, work and shop in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. Colonial Properties Trust is one of the largest diversified REITs in the United States with a total market capitalization of $2.7 billion. The cornerstone of Colonial Properties' success is its live, work and shop diversified investment strategy. The Company operates more than 14,300 apartment units, 5.2 million square feet of office space and 15.3 million square feet of retail shopping space including 17 malls and 27 non-mall properties. Additional information on Colonial Properties Trust is available on the Internet at www.colonialprop.com . The Company, headquartered in Birmingham, Ala., is listed on the New York Stock Exchange under the symbol "CLP" and is included in the S&P SmallCap 600 Index.