#USA #New York #Cohen & Steers #REIT #RNP

Overview of Cohen & Steers REIT and Preferred and Income Fund

Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE: RNP) is a prominent investment vehicle focusing on real estate and income-generating assets. As part of its operations, the Fund issues regular monthly distributions to its shareholders. Understanding the sources of these distributions is vital for investors looking to gauge the Fund's performance and strategy. This article dives into the details surrounding the Fund's distribution practices, especially as it approaches the upcoming payout scheduled for May 30, 2025.

Distribution Notification Under Section 19(a)

On May 22, 2025, the Fund released a notification regarding its distributions under Section 19(a). This notification serves to inform shareholders about the estimated amounts and sources of the distributions for May and year-to-date cumulative payments. The information provided is crucial for investors as it sheds light on how the Fund utilizes its income and gains to drive returns to its shareholders.

Managed Distribution Policy

Since December 2017, Cohen & Steers has operated under a managed distribution policy authorized by the Securities and Exchange Commission (SEC). This strategy is designed to provide shareholders with regular monthly distributions at a fixed rate per share of common stock. The policy allows the Fund to capture long-term capital gains throughout the year, distributing these gains regularly. This consistent payout strategy gives investors confidence, although it also opens up the possibility for the Fund's Board of Directors to amend, suspend, or terminate this policy, which could impact the market price of shares.

Under the managed distribution policy, monthly distributions can come from various sources, including long-term capital gains, short-term capital gains, net investment income, and return of capital. A return of capital signifies that some of the distribution exceeds the Fund's net investment income and capital gains. While this part of the distribution is not taxable, it does lower the shareholder's tax basis in their shares.

Breakdown of Distribution Sources

In the recent notification, the breakdown of sources for the May 2025 distribution was provided:

• - Net Investment Income: $0.0946 per share (approx. 69.56% of the current distribution)
• - Net Realized Short-Term Capital Gains: $0.0000 (0.00% of the current distribution)
• - Net Realized Long-Term Capital Gains: $0.0185 (approx. 13.60% of the current distribution)
• - Return of Capital: $0.0229 (approx. 16.84% of the current distribution)

The total current distribution stands at $0.1360 per share for May 2025, with the cumulative distribution reaching $0.6800 year-to-date as of May 31, 2025.

Performance Metrics

Investors should also be aware of the Fund's performance metrics as they relate to distributions. The year-to-date cumulative total return for 2025, as of April 30, stands at 1.37%, with a cumulative distribution rate of 3.27%. Over the past five years, the average annual total return has been 9.01%, while the current annualized distribution rate stands at 7.84%.

These figures demonstrate that while the Fund has maintained a steady income stream through distributions, the relationship between the Fund's performance and its policy should not be overlooked. Distributions should not be solely interpreted as indicators of performance but rather viewed in the context of overall investment strategy and market conditions.

Conclusion

For existing and prospective shareholders of the Cohen & Steers REIT and Preferred and Income Fund, understanding the sources of distributions and the performance metrics is essential. As the Fund continues to navigate the broader market landscape, its managed distribution policy provides a reliable structure for delivering shareholder returns. Investors should stay informed about any updates on distribution sources and financial performance, as these factors will significantly impact their investment decisions in the future. For the most up-to-date information and detailed reports, shareholders are encouraged to visit cohenandsteers.com or consult their financial advisors.

In conclusion, Cohen & Steers remains dedicated to providing clarity regarding its distribution policy while delivering consistent returns to shareholders, showcasing its commitment to sound investment practices in the finance sector.