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Overview of Cohen & Steers REIT Fund Distribution Sources

On December 18, 2025, Cohen & Steers REIT and Preferred Income Fund, Inc. (NYSE: RNP) made an announcement crucial for shareholders. This statement detailed the sources of distribution for the upcoming payment on December 31, 2025. Investors must understand the financial mechanisms behind these distributions to grasp the implications for their investments.

Managed Distribution Policy

The Fund has been operating under a managed distribution policy initiated in December 2017. This strategy was conceived following an exemptive relief granted by the Securities and Exchange Commission. The main objective behind this policy is to optimize long-term returns for shareholders by ensuring regular monthly distributions at a predefined rate per share. By implementing such a policy, the Fund can harness long-term capital gains throughout the fiscal year.

The Board of Directors possesses the authority to amend or even terminate this policy. Any changes could greatly impact the market price of the Fund’s shares, a factor that shareholders must monitor closely.

Breakdown of Monthly Distributions

Monthly distributions from the Fund can include various financial components:

• - Net Investment Income
• - Short-Term Capital Gains
• - Long-Term Capital Gains
• - Return of Capital

Return of capital refers to amounts paid out to shareholders that surpass the net investment income and realized capital gains. Notably, these returns don’t constitute taxable income; rather, they reduce the tax basis of shares owned by investors. It’s essential for shareholders to comprehend how investments in real estate investment trusts (REITs) may also affect distribution classification, as some distributions may later be categorized differently, impacting tax implications.

For December 2025, the estimated contribution of these sources to the current distribution is as follows:

• - Net Investment Income: $0.1339 (98.46% of current distribution)
• - Return of Capital: $0.0021 (1.54% of current distribution)

In total, the current distribution for this month amounts to $0.1360 per share.

Year-to-Date Financial Overview

As shareholders analyze their investments, they should also take note of cumulative distributions paid throughout the fiscal year. The cumulative figures demonstrate a significant relationship between the Fund's performance and its distribution policy. Thus far in 2025, the Fund has distributed $1.6320 per share. Shareholders will receive a detailed report via Form 1099-DIV after the fiscal year ends, indicating the precise tax reporting for these distributions.

Performance Metrics

In terms of performance, the Fund's year-to-date cumulative total return as of November 30, 2025, stands at 7.79%. This performance indicates the percentage change in the Fund’s net asset value (NAV) and showcases the effectiveness of its distribution approach. The average annual total return over the past five years is also noteworthy, reporting at 6.80%. This data provides context for potential investors considering the Fund's ongoing viability and capital growth opportunities.

Caution for Investors

Investors must exercise caution and evaluate the potential risks associated with investments in the Fund. Notably, the distribution amounts can fluctuate based on market performance and the changes in the Fund's portfolio. Relying on distribution figures without understanding the underlying investment performance can lead to misleading conclusions. The valuation of a shareholder's investment ultimately correlates with market prices and demand for shares rather than just distribution amounts.

Conclusion

Cohen & Steers has established a systematic approach to its distribution models that benefits its shareholders. The thorough understanding of the sources and characteristics of these distributions is paramount for investors making informed decisions. As the financial landscape evolves, continuous monitoring of the Fund's performance and distribution policy will be crucial for maximizing returns.

For further updates and information, shareholders are encouraged to visit Cohen & Steers' website.