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An Insight into Cohen & Steers Total Return Realty Fund, Inc. (RFI)

Cohen & Steers Total Return Realty Fund, Inc., trading under the symbol RFI, has released important details regarding its distribution sources effective on June 30, 2025. This update is crucial for investors and shareholders wishing to understand how their investments are performing and what components make up their returns.

Distribution Policy Overview

Since December 2011, the Fund has operated under a managed distribution policy, which was established with the approval of the Securities and Exchange Commission. This policy aims to provide shareholders with a steady flow of income through monthly distributions set at a fixed rate for each common share. The managed distribution approach allows the Fund to optimize long-term capital gains, ensuring consistent payments to shareholders throughout the fiscal year.

The board of directors retains the authority to alter, suspend, or terminate the managed distribution policy whenever necessary, which could significantly impact the market valuation of the Fund's shares. Therefore, it is essential for shareholders to stay informed about any potential changes.

Components of Distributions

The monthly distributions to shareholders encompass several financial elements, including long-term capital gains, short-term capital gains, net investment income, and return of capital, as classified for federal income tax. Specifically, a return of capital refers to payments made by the Fund that exceed its net investment income and net realized capital gains, affecting the tax basis of a shareholder's shares rather than being directly taxable.

It is vital to note that returns associated with the Fund's investments in real estate investment trusts (REITs) can be designated as capital gains or return of capital. This determination is based on the character of the dividends reported by the REITs to the Fund at the year's end. Consequently, the monthly distribution amounts may fluctuate based on portfolio changes and market conditions.

Monthly Distribution Estimates

The following estimates specify the current distribution amounts along with cumulative distributions paid thus far in the fiscal year:


These figures further highlight the diverse sources that contribute to the Fund's distribution landscape. Investors should not correlate the distribution amounts or the framework of the management policy directly with the Fund's performance. Instead, these distributions are estimates that may evolve over time. Actual figures and sources for tax documentation will depend on the Fund's investment activities throughout the fiscal year, subject to tax regulations that might alter the investments' outcomes.

Performance Metrics

Understanding the relationship between the Fund’s year-to-date cumulative total return and its cumulative distribution rate can offer insights into its performance. For the fiscal year 2025 (spanning from January 1, 2025, to May 31, 2025), the following performance metrics are relevant:

• - Year-to-Date Cumulative Total Return: 3.46%
• - Cumulative Distribution Rate: 4.13%

Moreover, for the five-year period concluding on May 31, 2025:

• - Average Annual Total Return: 7.89%
• - Current Annualized Distribution Rate: 8.25%

These metrics underscore the effectiveness of the Fund's strategy in delivering returns to its shareholders while maintaining a focus on real estate investments.

Conclusion

Investors are encouraged to consider their investment objectives, risks, and associated costs before engaging with the Fund. It is advisable to review the most recent reports and regulatory filings, accessible via the Fund’s website or through financial advisors, ensuring informed decisions in line with personal investment strategies.

As further updates arise or when tax information becomes available, shareholders will be notified through the Fund's official communications, including Form 1099-DIV distributions to summarize how funds should be reported for tax purposes.

For further information, you can visit Cohen & Steers' official website.