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Cohen & Steers REIT and Preferred and Income Fund, Inc. (RNP) Distribution Notification

On July 30, 2025, Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE: RNP) published a notification to inform shareholders about the upcoming distribution scheduled for July 31, 2025. This announcement not only lays out essential information regarding the sources of distribution but also summarizes the cumulative distributions paid so far during the fiscal year.

This Fund has been operating under a managed distribution policy since December 2017, in line with the exemptive relief granted by the Securities and Exchange Commission. The managed distribution policy aims to provide long-term benefits to its investors by offering regular monthly distributions at a fixed rate per common share. Such policies allow the Fund to retain more flexibility in achieving capital gains and to distribute these gains consistently throughout the year. Investigators should note, however, that the Board of Directors reserves the right to amend, suspend, or terminate this policy at any time, which could negatively impact the market price of Fund shares.

According to the announcement, monthly distributions can comprise various components, including long-term and short-term capital gains, as well as net investment income or a return of capital from federal income tax viewpoints. A return of capital typically refers to distributions that exceed net investment income and net realized capital gains. Importantly, a return of capital isn't taxable in the current year; instead, it reduces the taxpayer's cost basis in their shares of the Fund.

Shareholders should be aware that the distributions from the Fund's investments in real estate investment trusts (REITs) can also take the form of capital gains or returns of capital, influenced by the nature of dividends reported to the Fund post-year-end by its held REITs. The monthly distributions are subject to alterations based on varying factors, such as portfolio changes and prevailing market conditions.

Information regarding each distribution will be accessible on cohenandsteers.com and will also be mailed directly to shareholders as a concurrent update. However, final tax characteristics for the Fund's distributions cannot be established until the year's close, meaning that the reported figures might undergo adjustments based on investment performance and fiscal year management.

The press release presented a breakdown of the estimated amounts for the current distribution along with cumulative figures for year-to-date (YTD) payments. Here’s a summary of these estimates expressed on a per common share basis:


It’s vital to mention that investors should not derive conclusions about the Fund's performance solely based on the current distribution figure or the managed distribution policy. Generally, it's estimated that the Fund has distributed more than its net income and recognized capital gains, inferring that portions of these distributions are classified as return of capital. This should not be mistaken for 'yield' or 'income' since the nature of the distribution doesn’t reflect the Fund's overall investment performance.

The distribution amounts and sources indicated in this notice serve merely as estimates and are anticipated to modify over time. Actual amounts for taxation and accounting will depend on the Fund's investment outcomes for the remainder of the fiscal year and could change in accordance with tax regulations. Shareholders will eventually receive a Form 1099-DIV outlining how to report these distributions for federal tax reporting.

The Fund's Cumulative Total Return thus far in fiscal year 2025 (spanning January 1, 2025, to June 30, 2025) is recorded at 4.59%. The Cumulative Distribution Rate for 2025 stands at 4.49%, whereas the Average Annual Total Return over the five-year period concluding on June 30, 2025, is 8.57%, aligning with a Current Annualized Distribution Rate of 7.70%.

As prudent investors, it’s crucial to assess the investment objectives, associated risks, charges, and expenses, before engaging with the Fund. Up-to-date periodic reports and other regulatory filings can be accessed via financial advisors or directly from the Cohen & Steers website. Given these complexities, it’s advisable to seek clarity from these resources before making investment decisions.