NEW YORK, June 28, 2024 /PRNewswire/ — Shareholders of Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE:RNP) (the ‘Fund’) are hereby informed about the sources of the distribution scheduled for June 28, 2024, as well as the cumulative distributions paid out for the fiscal year-to-date. In December 2017, the Fund set in motion a managed distribution policy, underpinned by exemptive relief granted by the Securities and Exchange Commission (SEC). This policy aims to offer shareholders a steady stream of income through regular monthly distributions at a fixed rate per common share.
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The managed distribution policy provides the Fund with enhanced flexibility in realizing long-term capital gains throughout the year, which can then be distributed on a monthly basis. This approach seeks to maximize the Fund’s long-term total return potential for shareholders. Nonetheless, it is crucial to note that the Board of Directors holds the authority to amend, terminate, or suspend the managed distribution policy at any time. Any changes to this policy could potentially impact the market price of the Fund’s shares adversely.
During any given month, the Fund’s distributions may comprise a mix of long-term capital gains, short-term capital gains, net investment income, and/or return of capital for federal income tax purposes. A return of capital distribution occurs when the Fund disburses more than its net investment income and net realized capital gains, utilizing the Fund’s assets to cover the excess. Importantly, a return of capital distribution is not taxable; instead, it lowers the shareholder’s tax basis in their Fund shares.
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Additionally, distributions from the Fund’s investments in real estate investment trusts (REITs) might later be reclassified as capital gains or return of capital, based on the nature of the dividends reported to the Fund after the year-end by the REITs in its portfolio. As a result, the precise amount of each monthly distribution can fluctuate based on various factors, including changes in the Fund’s portfolio and prevailing market conditions.
To keep shareholders informed, detailed information about each monthly distribution will be promptly posted on the Fund’s website, cohenandsteers.com, and mailed directly to shareholders. However, it is significant to recognize that the final tax characteristics of the Fund’s distributions remain uncertain until the end of the calendar year. Consequently, the information provided in the monthly notifications may change. Final tax characteristics for all Fund distributions will be made available on Form 1099-DIV, mailed to shareholders after the calendar year concludes.
The following table outlines the estimated amounts for the current distribution, as well as cumulative distributions made so far in the fiscal year, specifying the sources as per common share: DISTRIBUTION ESTIMATES for June 2024 and YEAR-TO-DATE (YTD) as of June 30, 2024. Source: Per Share Amount, % of Current Distribution, Per Share Amount, % of 2024 Distributions, Net Investment Income: $0.1360, 100.00%. Full story and detailed table available on Benzinga.com.
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