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Cohen & Steers REIT Fund: Shareholder Notification of Distribution Sources

Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE: RNP) recently issued important information to its shareholders regarding the distribution of funds slated for April 30, 2025. This notification is crucial for investors to understand the sources of their upcoming dividends and the cumulative distributions for the current fiscal year.

In December 2017, the Fund introduced a managed distribution policy, a strategic move aligned with exemptive relief granted by the Securities and Exchange Commission. This policy is designed to optimize the Fund's long-term total return potential while ensuring regular monthly distributions declared at a constant rate of income each share.

This approach provides the Fund with the flexibility to capitalize on long-term capital gains throughout the year, allowing these gains to be paid out to shareholders on a consistent monthly basis. However, it is crucial for shareholders to understand that the Board of Directors holds the discretion to amend, suspend, or terminate this policy at any time, which could have implications for the market price of the Fund's shares.

Distribution Composition

The monthly distributions from the Fund are composed of various financial sources, including long-term capital gains, short-term capital gains, net investment income, and return of capital. Specifically, returns of capital generally encompass distributions exceeding the net investment income and net realized capital gains. It is important to note that these returns of capital are not subject to taxation; instead, they decrease the shareholder's tax basis in the Fund's shares.

Moreover, distributions from the REIT investments may be interpreted as capital gains or return of capital, depending on the nature of the dividends reported by those REITs, which will only be finalized after the year-end. Hence, the distribution amounts may fluctuate according to changes in portfolio composition and market conditions.

Key Distribution Estimates

For April 2025, the Fund anticipates a distribution breakdown as follows:

• - Net Investment Income: $0.0545 (40.07% of total distribution)
• - Net Realized Short-Term Capital Gains: $0.0000 (0.00% of total distribution)
• - Net Realized Long-Term Capital Gains: $0.0162 (11.91% of total distribution)
• - Return of Capital: $0.0653 (48.02% of total distribution)
• - Total Current Distribution: $0.1360

The total distributions provided year-to-date as of April 30, 2025, amount to $0.5440 per share. These figures reflect the various sources from which the distributions are derived.

Performance Metrics

Investors should not make assumptions about the Fund's investment performance based on the distribution size or the specifics of the managed distribution policy. The Fund's advisory indicates that a portion of the distributions may constitute a return of capital. Such a return does not necessarily correlate with the income generated from the Fund's investments.

The cumulative return rate for the year-to-date period ending March 31, 2025, is recorded at 2.94%, while the cumulative distribution rate stands at approximately 2.56%. Over five years, the Fund's average annual total return has been 11.68%, contributing to a current annualized distribution rate of 7.67%.

Conclusion

In summary, Cohen & Steers REIT and Preferred Income Fund is proactively informing its shareholders about distribution sources and amounts as we approach the end of April 2025. Shareholders can expect estimates and final details on their distributions via notifications on the company's website and other communication forms. As always, it’s advised that investors review the specific financial documents, including the Form 1099-DIV, to understand the full implications of these distributions on their tax obligations. For further information, stakeholders are encouraged to consult their financial advisors or access resources on the Cohen & Steers website.

This proactive approach in communication not only fosters transparency but also enhances investors' ability to make informed decisions regarding their investments in the Fund.