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Understanding the Recent Notice Regarding Cohen & Steers REIT and Preferred and Income Fund

On October 28, 2025, Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE: RNP) issued an important notification concerning the sources of its upcoming distribution payment set for October 31, 2025. This article aims to provide shareholders and potential investors with a clear understanding of this recent announcement, the significance of the managed distribution policy implemented by the Fund, and its implications for the performance and stability of their investments.

Overview of the Fund and Its Distribution Policy

The Cohen & Steers REIT and Preferred and Income Fund is designed to pursue long-term total return by generating through a managed distribution plan. This policy, which was established in December 2017 under the approval of the Securities and Exchange Commission, allows the Fund to provide regular monthly distributions to shareholders at a fixed rate per common share. The approach not only promises to enhance the returns for investors but also grants the Fund flexibility to capitalize on long-term capital gains throughout the year, paid to shareholders on a consistent monthly basis.

However, it's essential for investors to note that the Fund's Board of Directors retains the authority to make changes, including amendments or even termination of this managed distribution policy. Such alterations could potentially influence the market price of the Fund's shares, prompting shareholders to closely monitor these developments.

Breakdown of the Monthly Distribution

The upcoming monthly distributions from the Fund are expected to consist of several components, including:

• - Net Investment Income: Amounting to $0.0533 per share, representing 39.19% of the current distribution.
• - Return of Capital: A crucial element accounting for $0.0827 per share or 60.81%; these distributions often exceed net investment income and realized capital gains, impacting the tax basis for shareholders.

This results in a total current distribution of $0.1360 per share, which is accurately articulated to highlight the proportion attributed to each source. For the year-to-date, by the end of October, shareholders will have received cumulative distributions amounting to $1.3600 per share.

Fiscal Year Performance and Expectations

As the fiscal year of 2025 progresses, it is notable to mention the Fund's performance metrics has been positively significant. The year-to-date cumulative total return up to September 30, 2025, is reported at 7.81%, thus giving investors a reason to remain optimistic regarding the overall return on their investments. This performance aligns well against a cumulative distribution rate of 6.34%, asserting that the distribution practices are as much a function of investment outcomes as the managerial strategy.

Furthermore, examining the historical context reveals that the average annual total return over the past five years stands at 8.09%, with a corresponding current annualized distribution rate of 7.61%.

Importance of Transparency in Tax Reporting

The announcement emphasizes that while projections of these distributions may change, accurate reporting will be provided at the conclusion of the calendar year through the issuance of Form 1099-DIV. This reporting is crucial for shareholders, as it defines how to report distributions for tax purposes, ensuring compliance and clarity.

Conclusion

In conclusion, shareholders and potential investors in the Cohen & Steers REIT and Preferred and Income Fund should consider both the recent distribution announcements and the fund's overall performance metrics while making informed investment decisions. Staying updated on the various components of distributions and understanding their implications can aid in assessing the investment effectively. As the fund continues to navigate the ups and downs of market conditions, the flexibility inherent in its managed distribution policy remains a critical focal point, promising stability and long-term returns for its shareholders.