Cohen & Steers REIT and Preferred Income Fund’s Distributions: Sources and Cumulative Payments
On February 27, 2025, Cohen & Steers REIT and Preferred Income Fund, Inc. (NYSE: RNP) issued a press release to update shareholders regarding the sources of the distribution to be paid on February 28, 2025, and the cumulative distributions paid fiscal year-to-date. The Fund implemented a managed distribution policy in December 2017, which was granted exemptive relief by the Securities and Exchange Commission (SEC).
Managed Distribution Policy
The managed distribution policy allows the Fund to make regular distributions to shareholders, with the amount and source of each distribution determined by the Fund’s investment manager. This approach enables the Fund to provide a steady stream of income to investors, regardless of the investment performance in a given period.
Sources of Distributions
The press release detailed the sources of distributions for the current month and the fiscal year-to-date. In January 2025, 49% of the distribution was derived from net investment income, 42% from realized capital gains, and 9% from return of capital.
Cumulative Distributions
As of February 28, 2025, the Fund had paid out $3.15 per share in distributions for the fiscal year, comprised of $1.45 per share from net investment income, $1.20 per share from realized capital gains, and $0.45 per share from return of capital.
Impact on Individual Investors
For individual investors, the managed distribution policy of Cohen & Steers REIT and Preferred Income Fund could provide a consistent income stream. However, it is essential to understand that return of capital distributions reduce the investor’s cost basis, which may lead to a higher capital gain when shares are sold. Investors should consult their financial advisors to determine the tax implications of these distributions and their overall investment strategy.
Impact on the World
The managed distribution policy of REITs and other income funds, like Cohen & Steers, plays a vital role in the real estate and investment industries. These funds provide investors with exposure to the real estate sector while offering a steady income stream. The policy also enables fund managers to maintain a consistent yield, which can be attractive to income-focused investors. Furthermore, the managed distribution policy can help stabilize the REIT sector during periods of market volatility.
Conclusion
Cohen & Steers REIT and Preferred Income Fund’s managed distribution policy allows the Fund to provide shareholders with a consistent income stream, regardless of investment performance. The sources of distributions for the current month and fiscal year-to-date have been detailed in the press release, with 49% coming from net investment income, 42% from realized capital gains, and 9% from return of capital. Individual investors should consult their financial advisors to understand the tax implications of these distributions and their overall investment strategy. The managed distribution policy plays a vital role in the real estate and investment industries, providing investors with exposure to the real estate sector while offering a steady income stream and helping to stabilize the sector during periods of market volatility.
- Cohen & Steers REIT and Preferred Income Fund implements managed distribution policy in December 2017
- Regular distributions to shareholders, determined by investment manager
- Sources of distributions: net investment income, realized capital gains, return of capital
- Impact on individual investors: steady income stream, tax implications
- Impact on the world: exposure to real estate sector, stabilizing the sector during market volatility
