Understanding Sources of Distribution for Cohen & Steers RNP Fund: Important Updates for Shareholders

Overview of Cohen & Steers REIT and Preferred Income Fund

Cohen & Steers REIT and Preferred Income Fund, Inc. (NYSE: RNP) focuses on delivering consistent income to its investors through a managed distribution policy. This systematic approach was enhanced by the SEC's exemptive relief in late 2017, aiming to distribute earnings at fixed rates per share. This article elucidates the most recent distribution announcement for January 30, 2026, including its sources and composition.

Distribution Mechanism Explained

The managed distribution policy allows the Fund to provide regular monthly payouts to its shareholders without waiting for year-end gains and losses to be confirmed. For January 2026, the Fund declared a distribution of $0.1360 per common share. Of this amount, $0.0405 (approximately 29.78%) came from net investment income, while the bulk, $0.0955 (70.22%), was classified as return of capital.

Understanding these categorizations is crucial for investors, as the return of capital represents a portion of the original investment being paid back, which affects the overall tax basis in the shares but does not constitute taxable income.

Implications for Investors

The shift toward a managed distribution policy reflects a strategic decision to balance shareholder returns with long-term capital growth opportunities. However, the Board retains the authority to amend or halt this policy at any point, which could influence the share price and investors' expectations.

Distributions are subject to variability depending on market conditions and portfolio performance, making it vital for shareholders to stay informed about their investment's characteristics and the tax implications.

Year-to-Date Performance Insights

For those tracking the performance metrics, as of January 31, 2026, the year-to-date cumulative total return stands at 5.81%. This performance is contextualized within the broader framework of the $0.66 cumulative distribution rate for the fiscal year 2026, which measures distributions against the net asset value (NAV) as of December 31, 2025. Additionally, over a five-year period leading into 2025, the average annual total return was recorded at 5.76%, coupled with a current annualized distribution rate of 7.91%.

All investors should exercise caution and review their financial strategies in relation to the characteristics described above. Each shareholder will receive a Form 1099-DIV, which outlines how these distributions should be reported for federal income tax purposes, emphasizing the importance of accurate record-keeping in your investment journey.

Conclusion

The Cohen & Steers RNP Fund exemplifies a strategic model for fostering investor confidence through consistent disbursements. By understanding the foundation of these distributions, stakeholders can make more informed decisions based upon the Fund's policies and ongoing financial performance. As always, investors are advised to consult with financial advisors and keep abreast of SEC disclosures, including updated distribution information, to ensure alignment with their investment goals.