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Cohen & Steers REIT and Preferred Income Fund Update

Cohen & Steers REIT and Preferred and Income Fund, Inc. (RNP) has recently notified its shareholders about the upcoming distribution scheduled for February 28, 2025. This announcement delivers an essential insight into how these distributions are structured and their potential impacts on investors' returns.

Since December 2017, the Fund has operated under a managed distribution policy, as sanctioned by the Securities and Exchange Commission. This strategy aims to enhance the long-term total returns for shareholders through regular monthly payouts at a fixed rate per common share. It facilitates the Fund's ability to distribute capital gains on a consistent monthly basis, providing a predictable income stream for investors, while also allowing flexibility in realizing long-term gains throughout the year.

However, it's crucial to note that the Board of Directors retains the right to amend, suspend, or terminate this managed distribution policy, a shift that could potentially influence the market price of the Fund's shares significantly. During this period of evolving economic conditions, these changes could affect investor sentiment and market positioning.

The Fund's distribution inevitably includes several components, such as long-term capital gains, short-term capital gains, net investment income, and return of capital. The latter refers to the distributions exceeding the net investment income and capital gains, which, while not taxable income per se, does reduce the shareholders' tax basis in their Fund shares. The specific character of the distributions will often be contingent upon reported dividends from the Fund's underlying REIT investments, subject to final determination after the fiscal year concludes.

Monthly distributions can vary, influenced by portfolio fluctuations and broader market conditions. Shareholders are encouraged to visit cohenandsteers.com for the latest updates regarding their monthly distributions. A formal notification will also be sent to shareholders containing these updates, which may adjust later in the calendar year pending the final calculations of distribution characteristics.

The estimated distribution amounts for February 2025 reveal that out of the current total distribution of $0.1360 per share, a substantial 89.19% is attributed to net investment income, with a smaller fraction—10.81%—indicating a return of capital. Over the fiscal year-to-date, these figures mirror a similar pattern, showcasing the Fund's focus on delivering consistent income while navigating potential market volatility.

It is also noteworthy that the Fund's Year-to-date cumulative total return for the first month of 2025 stands at 0.98%, while the cumulative distribution rate directed towards investors currently rests at 1.29%. Over a five-year horizon, the average annual total return is reported at 4.97%, with an annualized distribution rate of 7.72%. Such metrics are critical for investors evaluating the overall performance of the Fund relative to its distribution strategy and capital growth objectives.

As always, prospective investors should consult with financial advisors and carefully assess their investment ambitions, risks, and associated costs before making any decisions. The Fund's latest periodic reports are readily available, offering transparency and insight into operational performance—accessible on the Securities and Exchange Commission’s EDGAR database.

In summary, Cohen & Steers continues to provide strategic insights and structured distributions aimed at balancing investment performance and shareholder returns. For ongoing updates, please refer to the Fund’s official communications and website.