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Overview of Distribution Sources for Cohen & Steers Total Return Realty Fund, Inc.

Cohen & Steers Total Return Realty Fund, Inc. (NYSE: RFI) recently issued a notification concerning the sources from which its upcoming distribution will be derived, scheduled for January 30, 2026. This communication aims to keep shareholders well-informed, particularly regarding the financial dynamics of the fund.

Managed Distribution Policy Implementation

Since December 2011, the Fund has adopted a managed distribution policy that was initiated following exemptive relief from the Securities and Exchange Commission (SEC). This strategy has been designed to provide investors with steady monthly distributions that are declared at a fixed rate per share. Such a systematic approach enhances the Fund's capability to harness long-term capital gains throughout the year, allowing for regularized gains distribution to shareholders.

However, it is essential to note that the Board of Directors holds the authority to amend, suspend, or even terminate this managed distribution policy at any given time. Such actions could adversely affect the market price of the Fund’s shares, emphasizing the need for shareholders to remain cognizant of potential changes.

Composition of Monthly Distributions

The monthly distributions from the Fund may comprise several components: long-term capital gains, short-term capital gains, net investment income, and return of capital for federal tax purposes. Specifically, the return of capital refers to distributions exceeding the Fund’s net investment income and net realized capital gains. Importantly, these distributions are sourced from the Fund’s assets, and a return of capital is not subject to taxation. Instead, it serves to reduce the shareholders' tax basis in their shares of the Fund. Additionally, distributions attributable to the Fund's investments in Real Estate Investment Trusts (REITs) can also be classified as capital gains or returns of capital, contingent on the dividends described to the Fund by the REITs post year-end.

The variability in the amount of monthly distributions hinges on several factors including alterations in market conditions and portfolio dynamics, underlining the fluctuating nature of such financial instruments.

Communication of Distribution Information

At the time of each monthly distribution, detailed information will be accessible on the fund's official site, cohenandsteers.com. Additionally, shareholders will receive concurrent notifications via mail. However, it’s critical to acknowledge that the final tax characteristics of the Fund's distributions can only be confidently determined after the closure of the calendar year. Consequently, shareholders will receive a Form 1099-DIV after the year-end, summarizing the definitive tax implications.

Distribution Estimates for January 2026

The estimated distributions for January 2026 and cumulative distributions paid year-to-date are outlined as follows (amounts per common share):

Important Considerations

Investors should not hastily correlate the volume of these distributions with the Fund's investment performance, as it is estimated that the Fund has distributed more than its income and capital gains. This aspect highlights that a portion of the distributions may be classified as a return of capital — essentially returning some initial capital to shareholders. Such distributions do not inherently indicate the Fund's performance outcomes and should be distinguished from yield or income.

The reported amounts and sources of distributions provided in this communication are to be viewed as estimates that are likely to evolve over time. The actual amounts for accounting and tax purposes will rest on the Fund’s investment experiences over the course of the fiscal year and may undergo changes dictated by tax regulations.

Shareholder Communication

Cohen & Steers underscores the necessity for shareholders to contemplate their investment objectives, associated risks, and expenses prior to making investment decisions. Comprehensive information concerning the Fund's recent reports and regulatory filings can be accessed through personal financial advisors or via their dedicated website. Given the intricate nature of these financial products, a thorough examination of the available documentation is vital before making any investment commitment.

Conclusion

Cohen & Steers continues its dedication to providing valuable insights to its investors while navigating the multifaceted landscape of real estate investment. Shareholders remain encouraged to stay informed and utilize the resources provided to optimize their investment strategy.