#United States #New York #Cohen & Steers #RQI #distribution

Overview of Cohen & Steers Quality Income Realty Fund's Distribution Notification

Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) has recently released important information regarding its distribution sources for the upcoming payout scheduled for November 29, 2024. This notification serves as a crucial guide for shareholders, outlining how their investments will affect their financial returns.

In December 2012, Cohen & Steers introduced a managed distribution policy under an exemption from the Securities and Exchange Commission. This policy was designed to enhance the total return potential for the Fund by offering consistent monthly distributions at a specified rate for each common share. By doing so, they enable the Fund to capture long-term capital gains throughout the year, distributing these channeled gains regularly to shareholders. However, shareholders need to be mindful that the Board of Directors retains the authority to modify or halt this policy at any point, a change that could unfavorably affect the market value of the Fund’s shares.

The distribution amounts will encompass a variety of sources such as long-term and short-term capital gains, net investment income, and may involve a return of capital for tax purposes. Essentially, when the distribution surpasses the Fund's net investment income and net realized capital gains, it can be accounted as a return of capital from the Fund's assets. It’s noteworthy that a return of capital doesn't trigger tax liabilities but instead reduces the shareholder's tax basis in their shares.

Furthermore, distributions originating from the Fund's investments in Real Estate Investment Trusts (REITs) may also be classified as capital gains or a return of capital, depending on how REITs report dividends at the end of the year. As market conditions and portfolio changes can affect the distribution amounts, shareholders will notice variations from month to month.

At the time of each distribution, the Fund will communicate details to shareholders through direct mail and by updating information on their official website, cohenandsteers.com. There may be further adjustments to this information at the end of the year, particularly in relation to the final tax characteristics of distributions, which aren’t determined until the year concludes. Shareholders will receive a Form 1099-DIV after the end of the calendar year clarifying how to report these amounts for federal income tax purposes.

Breakdown of November 2024 Distribution

The announcement includes an estimate of the current distribution amounts on a per-share basis along with cumulative distributions for the fiscal year-to-date. Here’s a detailed breakdown of the expected distribution on a per-share basis:

• - Net Investment Income: $0.0157 (19.63% of current distribution, $0.2640 year-to-date)
• - Net Realized Short-Term Capital Gains: $0.0000 (0.00%)
• - Net Realized Long-Term Capital Gains: $0.0643 (80.37% of current distribution, $0.6160 year-to-date)
• - Return of Capital: $0.0000 (0.00%)
• - Total Current Distribution: $0.0800 (100% of current distribution, $0.8800 year-to-date)

Investor Considerations

Shareholders should refrain from drawing conclusions about the Fund's investment performance based solely on the distribution amounts or the specifics of the managed distribution policy. The reported amounts and sources of distributions in this notification are merely estimates and may be refined over time. Actual values pertinent for accounting and tax may depend on the Fund's investment activities for the remaining fiscal year and could be subject to regulatory changes.

Moreover, investors are encouraged to evaluate the Fund's investment objectives, risks, and costs before proceeding with any investment. Up-to-date reports and regulatory filings are available through financial advisors or on the Cohen & Steers website, where comprehensive data regarding the Fund's performance can be found.

Fund Performance Insights

The Fund's cumulative total return for the fiscal year 2024, which encompasses January through October 2024, currently stands at 13.64%. Moreover, the cumulative distribution rate for the same period is 6.33%, indicating stable returns for fundholders. Looking at a broader scale, the five-year average annual total return is at 6.31%, coupled with a current annualized distribution rate of 6.91%, demonstrating a robust investment trajectory.

In conclusion, shareholders of Cohen & Steers Quality Income Realty Fund should remain informed about the essence of the distribution notification as it has tangible implications for their investment strategy and tax obligations. Proactive engagement with investment documents and understanding the shifting landscapes of investment returns are key to leveraging the benefits of their holdings in this Fund.