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An Overview of Cohen & Steers REIT and Preferred and Income Fund

Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE: RNP) has issued an important notification to its shareholders regarding the sources of distributions slated for September 30, 2026. This announcement outlines how the fund plans to distribute earnings and the implications for its stakeholders.

What is a Managed Distribution Policy?

In December 2017, the Fund introduced a managed distribution policy, guided by an exemption from the Securities and Exchange Commission (SEC). The intention of this initiative is to enhance the Fund's long-term return potential through regular monthly distributions. By declaring distributions at a fixed rate per common share, the policy provides the Fund with the flexibility to realize long-term capital gains throughout the year, distributing them on a consistent basis. However, the Board of Directors reserves the right to make amendments or suspend this policy at their discretion, an action that could negatively impact the market price of the Fund's shares.

Breakdown of Monthly Distributions

The monthly distributions from the Fund can include various components: long-term capital gains, short-term capital gains, net investment income, or a return of capital as defined for federal tax purposes. Notably, any excess distributions beyond the net investment income and net real estate capital gains indicate a return of capital, which is not subject to taxation. Instead, it reduces the tax basis of a shareholder's shares in the Fund.

Moreover, returns generated from the Fund's investments in Real Estate Investment Trusts (REITs) may later be classified as capital gains or a return of capital, depending on what the Fund reports at the end of the year.

September and Year-to-Date Distribution Estimates

For September 2026, the current distribution is estimated at $0.1360 per share, exclusively coming from net investment income, which constitutes 100% of the current distribution. Over the year-to-date (YTD), the cumulative total payments add up to $1.2240 per share. A detailed breakdown reveals:

• - Net Investment Income: $0.1360 (100% of current distribution)
• - Net Realized Short-Term Capital Gains: $0.0000 (0% of current distribution)
• - Net Realized Long-Term Capital Gains: $0.0000 (0% of current distribution)
• - Return of Capital: $0.0000 (0% of current distribution)

The fund maintains a strict accounting of these figures, reminding investors that the reported distributions are only estimates and can change as conditions evolve, especially in regard to tax reporting. Actual distribution amounts will become clearer when the IRS Form 1099-DIV is released after the end of the calendar year.

Performance Metrics

As of August 31, 2026, the Fund recorded notable performance metrics, including a year-to-date cumulative total return of 10.39% and a cumulative distribution rate of 5.66%. Over the five-year period ending August 31, 2026, the average annual total return stood at 3.48%, with a current annualized distribution rate of 7.55%.

Accordingly, this data remains critical for shareholders as it informs them of their investment's performance relative to the prevailing distribution rates. Over time, shareholders should be aware that the fluctuations in the Fund's net asset value (NAV) directly influence their investment's actual market value, which is determined by the demand and supply for the Fund’s shares in the marketplace.

Conclusion

Cohen & Steers emphasizes the importance of understanding their managed distribution policy as it aligns investor expectations with the Fund’s performance metrics. Shareholders should carefully evaluate investment objectives and related risks before committing their finances to the Fund. For a comprehensive view of their investments and distribution characteristics, shareholders are encouraged to visit cohenandsteers.com or connect with their financial advisors.

In conclusion, staying informed about these updates can significantly influence investment strategies and enhance shareholder value in the long term.