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Cohen & Steers Total Return Realty Fund Update

Cohen & Steers Total Return Realty Fund, Inc. (NYSE: RFI) has released important details regarding its upcoming distribution, effective October 30, 2026. This notification, aimed at informing shareholders, highlights the sources from which the distributions will be drawn, alongside a review of cumulative distributions from the fiscal year to date.

Since its establishment of a managed distribution policy in December 2011, the Fund has pursued a strategy designed to enhance its long-term total return potential. This approach allows the Fund to declare regular monthly distributions at a fixed rate per common share, providing shareholders with consistent cash flow while enabling the Fund to capitalize on long-term capital gains throughout the year.

The flexibility offered by this policy does come with caveats; the Fund's Board of Directors retains the authority to amend, suspend, or terminate the policy at their discretion. Such actions might influence the market price of the Fund’s shares. Notably, the Fund's distributions can encompass several sources: long-term and short-term capital gains, net investment income, as well as returns of capital under federal income tax regulations. Returns of capital represent the transfers paid out to shareholders that exceed the Fund's net investment income and capital gains, subsequently drawing from the fund’s assets. Importantly, this return of capital is not taxable but will adjust a shareholder's tax basis in their shares of the Fund.

As the Fund navigates its investments in real estate investment trusts (REITs), certain distributions may subsequently be categorized as long-term capital gains or further return of capital, influenced by the dividends reported to the Fund by the REITs they hold after the year-end accounting.

The announcements during each monthly distribution cycle provide shareholders with updated information posted on the official website, cohenandsteers.com, coupled with notifications dispatched directly to shareholders. However, it's crucial to acknowledge that this information is subject to change toward the end of the fiscal year due to the uncertainty surrounding the final tax characterizations of the Fund’s distributions. Shareholders will receive Form 1099-DIV following the close of the calendar year, detailing how to report these distributions for federal income tax purposes.

The recent distribution estimates for October 2026 demonstrates that out of a total current distribution of $0.0800 per share, a notable percentage (59.37%) originates from a return of capital, which underscores the managed distribution policy's impact on operational flexibility. Other sources include net investment income (5.00%) and net realized short-term capital gains (35.63%). This breakdown allows for clearer insights into the Fund's fiscal dynamics and the monetary flows that shareholders can expect.

In a broader context, shareholders must understand the correlation between the Fund's Year-to-Date (YTD) cumulative total return for fiscal year 2026, which stands at 15.50%, and its cumulative distribution rate of 27.29%. Additionally, the average annual total return over the five-year span up to September 30, 2026, reveals a strong figure of 32.65%, enhancing shareholders' confidence in the Fund's historical performance. Simultaneously, the current annualized distribution rate is recorded at an impressive 48.74%.

Investors are urged to consider the Fund's investment objectives, associated risks, and costs prior to committing. Periodic reports and regulatory documents are available upon request from financial advisors or via the Fund's website. It’s important to exercise diligence and assess all relevant information thoroughly before making investment decisions, ensuring an understanding of the tax implications related to the Fund's distributions.

About Cohen & Steers
Founded in 1986, Cohen & Steers is a distinguished global investment management firm, with a specialization in real assets and alternative income. The firm oversees a diversified range of investments including private and listed real estate, preferred securities, infrastructure, resource equities, commodities, and multi-strategy solutions. Headquartered in New York City, Cohen & Steers has established a strong international presence with offices across various global cities.

In conclusion, staying informed on developments such as distributions and performance metrics is crucial for investors in navigating their holdings effectively, ensuring strategic financial planning and execution.

Please note that the information here does not serve for tax return planning. Shareholders will receive detailed forms at the end of the calendar year illustrating how to report distributions for tax purposes.