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Understanding Cohen & Steers Quality Income Realty Fund's Distributions

On June 29, 2026, the Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) released crucial information regarding its upcoming distributions. This update aims to inform its shareholders about where distributions will originate from and how they impact overall investment strategies. The Fund has committed to a managed distribution policy since December 2012, which falls under exemptive relief as provided by the Securities and Exchange Commission. This policy is designed to provide regular monthly payments to shareholders while offering the Fund flexibility in managing capital gains throughout the year.

Purpose of Managed Distribution Policy

The intent of the managed distribution policy is to enhance the Fund's long-term total returns by facilitating consistent monthly payouts. This approach allows the Fund to capitalize on long-term capital gains and distribute them systematically to shareholders. It's noteworthy that the Fund's Board of Directors holds the authority to modify, suspend, or terminate the distribution policy, which could negatively influence the Fund's share market price.

Composition of Monthly Distributions

Shareholders should be aware that these distributions are typically composed of various sources. For instance, they may include:

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

Here’s how the distribution for June 2026 breaks down based on the latest press release:

• - Net Investment Income: $0.0900 per share (100% of the current distribution)
• - Net Realized Short-Term Capital Gains: $0.0000 per share (0% of distribution)
• - Net Realized Long-Term Capital Gains: $0.0000 per share (0% of distribution)
• - Return of Capital: $0.0000 per share (0% of distribution)

The total current distribution stands at $0.0900 per common share. As for the cumulative distribution rate for the fiscal year-to-date up until June 30, 2026, shareholders have received a total of $0.5400 per share, which includes realized gains and income.

Tax Considerations

Investors should note that while return of capital can reduce tax liabilities, it does not imply taxable earnings at distribution times. Instead, it adjusts a shareholder’s tax basis in their shares. It's essential for shareholders to remain updated by regularly checking the Fund’s official communications and to consult Form 1099-DIV at the end of the year for tax reporting purposes. These regulatory documents will clarify the exact nature of their distributions based on the final listings by the Fund’s investments in real estate investment trusts (REITs).

Fund Performance Overview

Additionally, the press release shared important performance statistics for the Fund:

• - Year-to-date Cumulative Total Return (Jan 1, 2026 - May 31, 2026): 14.32%
• - Cumulative Distribution Rate for 2026: 4.04%
• - Average Annual Total Return for the past five years: 5.18%
• - Current Annualized Distribution Rate: 8.09%

These figures reflect the performance dynamics of the Fund, calculated based on its net asset value (NAV). Investors must recognize that the NAV assessment is not the same as the market price of their shares, which is influenced by market demand and supply dynamics.

Risk Considerations

As with any investment vehicle, the Cohen & Steers Fund includes risks associated with investment objectives, expenses, and charges. Potential investors and current shareholders should carefully analyze these factors and consider reviewing the Fund's periodic reports and regulatory filings available on the official website or through financial advisors for complete insights. Understanding the implications of the managed distribution policy and expected return rates can significantly inform investment decisions.

In summary, the announcement from Cohen & Steers Quality Income Realty Fund not only highlights upcoming financial distributions but also contextualizes the Fund’s operational policies and performance statistics. Shareholders are encouraged to stay well-informed and proactive in managing their investments accordingly.