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Cohen & Steers Quality Income Realty Fund Insights

In a recent announcement dated August 28, 2025, Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) informed shareholders about the sources of its upcoming distribution scheduled for August 29, 2025. This communication serves as an essential guide for investors, outlining both the cumulative distributions for the current fiscal year and their sources.

Distribution Policy Overview

Since December 2012, the Fund has followed a managed distribution policy implemented under the relief issued by the Securities and Exchange Commission. This strategy aims to deliver long-term total returns to shareholders through stable monthly distributions which are set at a fixed rate per common share. This policy grants the Fund greater latitude to realize long-term capital gains throughout the year, allowing for consistent monthly distributions to investors.

The Board of Directors retains the authority to amend, suspend, or terminate this managed distribution policy at any time, a decision that could potentially influence the market price of the Fund’s shares. Therefore, understanding these distributions and their sources is crucial for investors looking to navigate their investments effectively.

Breakdown of Monthly Distributions

The Fund’s monthly distributions may comprise:

• - Long-term capital gains
• - Short-term capital gains
• - Net investment income
• - Return of capital

In federal income tax terms, the return of capital consists of distributions that surpass the Fund’s net investment income and realized capital gains, sourced from the Fund's assets. A return of capital is not taxed at the time of distribution; however, it lowers a shareholder's tax basis in the respective shares of the Fund. This nuanced understanding of the distribution components is paramount, especially regarding expected tax implications.

The Fund’s distributions from investments in Real Estate Investment Trusts (REITs) can also later be classified as capital gains or return of capital, dependent on how those dividends are reported back to the Fund after the year-end.

Estimated Distribution for August 2025

For August 2025, the Fund has provided estimates for the distribution sources, all stated on a per-share basis. Here’s a summary of the distribution estimates:


This structured approach allows shareholders to perceive how distributions may vary based on changing portfolio dynamics and prevailing market conditions.

Essential Considerations

It is important for investors to refrain from making any assumptions about the Fund's investment performance based solely on the distribution amounts or the managed distribution policy terms. The estimates reported can shift over time and do not serve tax-reporting applications. The actual numbers concerning accounting and tax obligations hinge on the Fund's investment activities throughout the fiscal year, along with adjustments to tax regulations.

Each year, the Fund will dispatch a Form 1099-DIV indicating how to accurately report these distributions for federal income tax purposes, enabling clarity and compliance for investors during tax season.

Year-to-Date Fund Performance

The Fund reported a Cumulative Total Return of 3.63% year-to-date as of July 31, 2025, providing a snapshot into its performance while noting the connection to the Cumulative Distribution Rate of 5.03%.
Additionally, for the five-year period ending July 31, 2025, the Average Annual Total Return was recorded at 8.47%, with a Current Annualized Distribution Rate of 7.55%. These metrics are derived from the Fund’s net asset value (NAV), indicative of investment performance, providing a relevant lens for shareholders evaluating their engagement with the Fund.

Conclusion - Strategic Insights for Investors

Investors in the Cohen & Steers Quality Income Realty Fund should consider various aspects, including investment objectives, financial risks, fees, and expenses before making investment choices. By gaining insights into the Fund's distribution characteristics and performance, shareholders can be better equipped to make informed decisions in managing their investment portfolios. Investors can gain access to the Fund's recent periodic reports and official documents via the company's website or through their financial advisor.

With its longstanding legacy since its inception in 1986 and continued growth across global markets, Cohen & Steers remains a formidable player in the investment sphere specializing in real assets and generating alternative income. Understanding the dynamics of the Fund’s distributions is paramount to leveraging potential investment gains while remaining compliant with tax regulations.