#United States #New York #Cohen & Steers #RNP #REIT Fund

Understanding Cohen & Steers REIT and Preferred Income Fund Distribution

In a recent announcement, Cohen & Steers REIT and Preferred Income Fund, Inc. (NYSE: RNP) has provided critical information regarding its distribution sources. This notification aims to inform shareholders of the yields that will be disbursed on March 31, 2025, along with a summary of cumulative distributions thus far in the fiscal year.

The Fund's Managed Distribution Approach

In December 2017, the Fund adopted a managed distribution policy that was designed under guidelines from the Securities and Exchange Commission. This strategy is crafted to ensure a steady return to shareholders while enabling the Fund to capture long-term capital gains consistently. By declaring fixed monthly distributions per common share, the Fund can optimize its performance over the entire year, thereby offering investors the potential for heightened total returns. However, it is vital for investors to understand that the board holds the right to modify or cease this distribution strategy, a change that could impact share prices in the market.

Details of Current Distributions

The current monthly distribution is composed of various elements that can include long-term capital gains, net investment income, and a portion designated as return of capital—each item affecting shareholders' tax responsibilities differently. Specifically, as outlined in the recent notification:

• - Net Investment Income: $0.1317 (96.84%)
• - Return of Capital: $0.0043 (3.16%)

It is essential to note that a return of capital does not incur immediate taxation but does reduce the shareholder's tax basis in the shares, effectively adjusting their initial investment amount.

Year-to-Date Performance Insights

As of the end of March 2025, the cumulative distributions for the year show that the Fund has distributed a total of $0.4080 per share. Furthermore, the performance metrics provide clarity on the Fund’s financial trajectory:

• - Year-to-date Cumulative Total Return (2025): 4.64%
• - Cumulative Distribution Rate (current fiscal period): 1.88%
• - Average Annual Total Return (five-year period ending February 28, 2025): 7.10%

Final Tax Reporting Considerations

The final characterization of all distributions will be precisely determined after the year concludes, after which shareholders will receive a Form 1099-DIV outlining their tax reporting requirements. Shareholders are strongly encouraged to await this documentation and consult with financial advisors to accurately report these distributions for tax purposes.

Future Outlook for Investors

With a firm foundation in real estate and alternative assets, Cohen & Steers continues to attract attention due to its structured approach to delivering returns. Investors should carefully weigh the risks against the potential rewards presented by this REIT and understand that while dividends provide a means of income, they may also comprise elements that adjust shareholders’ equity positions over time.

This structured, managed distribution model could serve investors well, particularly those seeking regular income combined with long-term capital appreciation. As always, shareholders should remain vigilant concerning updates on distribution policies, adjustments in market conditions, and evolving investment performance metrics as they continue to engage with their investment in the Fund.

For further insights and real-time updates, shareholders can access the Fund’s official website at Cohen & Steers. Here, the management will continue to offer pertinent information that aligns with shareholder interests and keeps them informed on the trajectory of their investments.