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Understanding Cohen & Steers Total Return Realty Fund's Distribution Notification for Shareholders

On December 17, 2024, Cohen & Steers Total Return Realty Fund, Inc. (NYSE: RFI) announced important information regarding its upcoming distribution set for December 31, 2024. This notification is crucial for shareholders who need to understand the components of their investment returns and the implications related to the distribution policy.

Overview of the Fund

Cohen & Steers specializes in real assets and alternative income and has maintained a managed distribution policy since December 2011. This policy was established under exemptive relief issued by the Securities and Exchange Commission (SEC) and allows the fund management greater flexibility in distributing long-term capital gains throughout the year to its shareholders.

Distribution Components

The upcoming distribution will comprise various sources, including:

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

For December 2024, the fund estimates a total current distribution of $0.0800 per common share. Here’s the breakdown:

• - Net Investment Income: $0.0563 (70.38%)
• - Net Realized Short-Term Capital Gains: $0.0000 (0.00%)
• - Net Realized Long-Term Capital Gains: $0.0237 (29.62%)
• - Return of Capital: $0.0000 (0.00%)

These figures indicate a composite that primarily favors net investment income, showcasing the ongoing emphasis on regular income distributions.

Managed Distribution Policy

The managed distribution policy promotes the fund's aim of achieving long-term total return potential via fixed monthly distributions. This systematic approach offers investors predictability in income while allowing the fund to capitalize on market opportunities for long-term gains. However, it's important to note that the fund's Board of Directors retains the discretion to alter, suspend, or terminate this policy at any time, which could potentially impact the market price of shares.

Tax Considerations

Shareholders should be aware that distributions may include portions categorized as return of capital. A return of capital is not taxable at the time of distribution; instead, it lowers the investor's tax basis in the shares. Conversely, future distributions from investments in real estate investment trusts (REITs) held by the fund can later be characterized differently, thus affecting tax implications.

Year-to-Date Insights

For fiscal year 2024, the fund is reporting a Year-to-date Cumulative Total Return of 13.45% and a Cumulative Distribution Rate of 7.62% as of November 30, 2024. Furthermore, its Average Annual Total Return over the last five years stands at 6.08%.

These numbers reflect not only the ongoing performance of the fund but also provide a perspective on how such returns align with the current fiscal year's distribution strategies.

Shareholder Communication

Anything affecting the distribution amounts will also be communicated through cohenandsteers.com and through notices mailed to shareholders. Nonetheless, final tax characteristics for the year will only be confirmed after the close of the calendar year, with details provided via Form 1099-DIV.

Conclusion

Understanding the distribution notification from Cohen & Steers Total Return Realty Fund enables shareholders to make informed decisions. By closely following the fund's policies, market conditions, and individual investment performance, investors can better navigate their investment landscape.

Shareholders are encouraged to review the detailed reports available on the fund’s official website and maintain open communication with their financial advisors to adapt to any changes in tax reporting or distribution structuring throughout the fiscal year.