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Overview of Cohen & Steers REIT and Preferred Income Fund's Distributions

Cohen & Steers REIT and Preferred Income Fund, Inc. (NYSE: RNP) has made it a priority to keep shareholders informed regarding the sources of the distributions made by the fund. With an upcoming distribution scheduled for June 30, 2025, this article provides a detailed overview of how distributions are generated and the current financial standings of the fund.

In December 2017, the fund instituted a managed distribution policy after obtaining exemptive relief from the Securities and Exchange Commission. This policy allows for regular monthly distributions at a predetermined fixed rate per common share, thus ensuring a steady income stream for investors. This structure not only allows for a more consistent payout but also provides the fund with heightened flexibility to generate long-term capital gains, which can be regularly distributed to its shareholders.

Distribution Breakdown

Recent estimates reveal the allocation of the forthcoming monthly distribution. For June 2025, the estimated payout is broken down as follows:

• - Net Investment Income: $0.1120 (82.35% of the current distribution)
• - Net Realized Long-Term Capital Gains: $0.0240 (17.65%)
• - Return of Capital: $0.0000 (0.00%)

The total distribution thus amounts to $0.1360 per share, with cumulative distributions for the fiscal year-to-date (up until June 30, 2025) reaching $0.8160 per share.

Understanding Returns of Capital: It’s important for shareholders to note that part of the fund’s distributions may count as a return of capital. In simpler terms, this means that some of the returns might consist of funds that originated from the shareholder's original investment rather than from actual profit generated by the fund. This is crucial as these returns are not taxable, but they do reduce the shareholder's tax basis, consequently impacting future capital gains calculations when shares are sold.

Insights into Total Return and Current Performance

As an essential part of keeping shareholders informed, the fund also divulges its performance metrics. As of May 31, 2025, the fund reported a year-to-date cumulative total return of 3.20% and a cumulative distribution rate of 3.88%. These figures are significant as they provide context to the ongoing distribution policies and the effectiveness of the fund’s investment strategies. For a longer-term perspective, the average annual total return over the preceding five years is depicted as 8.66%, indicating a robust performance capability, sustained by prudent investment decisions and real estate market opportunities.

The figures mentioned above rely on the net asset value (NAV) of the fund, which represents the total market value of the fund's holdings minus its liabilities divided by the total number of outstanding shares. This measure gives investors an understanding of the underlying value associated with their investments. However, it’s essential to differentiate between the NAV and the actual market price of shares, which fluctuates based on supply and demand dynamics in the open market.

Conclusion and Future Considerations

Shareholders should remain vigilant and consider various factors that could influence the distribution policy. The Board of Directors maintains the authority to amend or terminate this managed distribution policy at its discretion, an action potentially realizing adverse effects on the fund's market price. Investors are encouraged to take into account their investment objectives, risks, costs, and the comprehensive profile of the fund before making financial decisions.

Final Takeaway: As Cohen & Steers REIT and Preferred Income Fund moves forward, its commitment to transparency will continue to play a pivotal role in shaping shareholder confidence and satisfaction. This ensures that investors are well-informed as they navigate their personal investment trajectories.