UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-21326

 

Cohen & Steers REIT and Preferred Income Fund, Inc.

(Exact name of registrant as specified in charter)

 

280 Park Avenue

New York, NY

 

10017

(Address of principal executive offices)

 

(Zip code)

 

Tina M. Payne

280 Park Avenue

New York, NY 10017

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(212) 832-3232

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

March 31, 2016

 

 



 

Item 1. Schedule of Investments

 



 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

March 31, 2016 (Unaudited)

 

 

 

Number
of Shares

 

Value

 

COMMON STOCK—REAL ESTATE 65.0%

 

 

 

 

 

DIVERSIFIED 4.0%

 

 

 

 

 

American Assets Trust(a)

 

214,357

 

$

8,557,132

 

Vornado Realty Trust(a),(b)

 

354,547

 

33,479,873

 

 

 

 

 

42,037,005

 

HEALTH CARE 9.0%

 

 

 

 

 

HCP(a),(b)

 

648,001

 

21,111,873

 

Healthcare Trust of America, Class A(a),(b)

 

549,593

 

16,169,026

 

Omega Healthcare Investors(a),(b)

 

689,610

 

24,343,233

 

Physicians Realty Trust(a),(b)

 

813,881

 

15,121,909

 

Ventas

 

284,241

 

17,895,813

 

 

 

 

 

94,641,854

 

HOTEL 2.4%

 

 

 

 

 

Host Hotels & Resorts(a),(b)

 

989,061

 

16,517,319

 

Sunstone Hotel Investors(a),(b)

 

599,110

 

8,387,540

 

 

 

 

 

24,904,859

 

INDUSTRIALS 0.9%

 

 

 

 

 

Duke Realty Corp.(a)

 

422,696

 

9,527,568

 

NET LEASE 3.7%

 

 

 

 

 

Gaming and Leisure Properties

 

89,120

 

2,755,590

 

National Retail Properties(a),(b)

 

331,108

 

15,297,190

 

Spirit Realty Capital(a),(b)

 

1,299,599

 

14,620,489

 

STORE Capital Corp.

 

244,923

 

6,338,607

 

 

 

 

 

39,011,876

 

OFFICE 5.0%

 

 

 

 

 

Alexandria Real Estate Equities

 

26,505

 

2,409,040

 

Cousins Properties

 

143,168

 

1,486,084

 

Douglas Emmett(a),(b)

 

308,082

 

9,276,349

 

Kilroy Realty Corp.(a),(b)

 

296,048

 

18,316,490

 

PS Business Parks(a)

 

90,942

 

9,140,580

 

SL Green Realty Corp.(a),(b)

 

120,815

 

11,704,557

 

 

 

 

 

52,333,100

 

RESIDENTIAL 13.5%

 

 

 

 

 

APARTMENT 12.0%

 

 

 

 

 

Apartment Investment & Management Co.(a),(b)

 

386,748

 

16,173,801

 

Colony Starwood Homes(a),(b)

 

306,079

 

7,575,455

 

Education Realty Trust(a)

 

185,181

 

7,703,530

 

 

1



 

 

 

Number
of Shares

 

Value

 

Equity Residential(a),(b)

 

362,977

 

$

27,234,164

 

Essex Property Trust(a),(b)

 

107,418

 

25,120,774

 

Mid-America Apartment Communities(a),(b)

 

167,228

 

17,092,374

 

UDR(a),(b)

 

673,132

 

25,935,776

 

 

 

 

 

126,835,874

 

MANUFACTURED HOME 1.5%

 

 

 

 

 

Sun Communities(a)

 

213,633

 

15,298,259

 

TOTAL RESIDENTIAL

 

 

 

142,134,133

 

SELF STORAGE 6.3%

 

 

 

 

 

CubeSmart(a),(b)

 

665,541

 

22,162,515

 

Extra Space Storage(a),(b)

 

418,388

 

39,102,542

 

Sovran Self Storage(a),(b)

 

43,843

 

5,171,282

 

 

 

 

 

66,436,339

 

SHOPPING CENTERS 14.9%

 

 

 

 

 

COMMUNITY CENTER 5.3%

 

 

 

 

 

Brixmor Property Group

 

564,805

 

14,470,304

 

DDR Corp.(a),(b)

 

949,842

 

16,897,689

 

Ramco-Gershenson Properties Trust(a),(b)

 

557,383

 

10,049,615

 

Regency Centers Corp.(a),(b)

 

153,735

 

11,507,065

 

Tanger Factory Outlet Centers

 

91,602

 

3,333,397

 

 

 

 

 

56,258,070

 

REGIONAL MALL 9.6%

 

 

 

 

 

General Growth Properties(a),(b)

 

655,786

 

19,496,518

 

Pennsylvania REIT(a)

 

377,207

 

8,241,973

 

Simon Property Group(a),(b)

 

352,551

 

73,221,317

 

 

 

 

 

100,959,808

 

TOTAL SHOPPING CENTERS

 

 

 

157,217,878

 

SPECIALTY 5.3%

 

 

 

 

 

CyrusOne(a)

 

258,025

 

11,778,841

 

DuPont Fabros Technology

 

87,335

 

3,539,687

 

Equinix(a),(b)

 

79,191

 

26,189,256

 

QTS Realty Trust, Class A(a),(b)

 

305,320

 

14,466,062

 

 

 

 

 

55,973,846

 

TOTAL COMMON STOCK
(Identified cost—$476,684,532)

 

 

 

684,218,458

 

 

2



 

 

 

Number
of Shares

 

Value

 

PREFERRED SECURITIES—$25 PAR VALUE 28.4%

 

 

 

 

 

BANKS 7.6%

 

 

 

 

 

Bank of America Corp., 6.20%, Series CC

 

134,575

 

$

3,505,679

 

Bank of America Corp., 6.50%, Series Y(a)

 

341,463

 

9,038,526

 

BB&T Corp., 5.625%

 

65,175

 

1,648,928

 

BB&T Corp., 5.20%, Series F

 

79,981

 

2,015,521

 

Capital One Financial Corp., 6.25%, Series C(a)

 

27,584

 

725,735

 

Citigroup, 6.875%, Series K(a)

 

83,974

 

2,297,529

 

Citigroup, 6.30%, Series S

 

165,000

 

4,293,300

 

Farm Credit Bank of Texas, 6.75%, 144A(c)

 

63,000

 

6,784,312

 

Fifth Third Bancorp, 6.625%, Series I(a)

 

155,465

 

4,520,922

 

First Republic Bank, 5.50%

 

54,199

 

1,361,479

 

First Republic Bank, 5.50%, Series G

 

4,175

 

104,417

 

GMAC Capital Trust I, 6.402%, due 2/15/40, Series 2 (TruPS) (FRN)

 

164,847

 

4,040,400

 

Huntington Bancshares, 6.25%, Series D

 

154,000

 

3,957,800

 

JPMorgan Chase & Co., 6.10%, Series AA

 

50,000

 

1,306,500

 

JPMorgan Chase & Co., 6.15%, Series BB

 

75,000

 

1,956,750

 

JPMorgan Chase & Co., 6.125%, Series Y

 

130,000

 

3,404,700

 

PNC Financial Services Group, 6.125%, Series P(a)

 

122,500

 

3,567,200

 

Regions Financial Corp., 6.375%, Series B

 

209,686

 

5,674,103

 

SunTrust Banks, 5.875%, Series E

 

90,014

 

2,322,361

 

US Bancorp, 6.50%, Series F

 

78,991

 

2,323,915

 

Wells Fargo & Co., 5.85%(a)

 

270,142

 

7,120,943

 

Wells Fargo & Co., 6.625%

 

46,774

 

1,371,881

 

Wells Fargo & Co., 5.70%, Series W

 

117,835

 

3,051,926

 

Zions Bancorp, 7.90%, Series F(a)

 

84,067

 

2,275,694

 

Zions Bancorp, 6.30%, Series G

 

45,086

 

1,160,965

 

 

 

 

 

79,831,486

 

BANKS—FOREIGN 1.9%

 

 

 

 

 

Barclays Bank PLC, 8.125%, Series 5 (United Kingdom)(a)

 

315,000

 

8,240,400

 

Barclays Bank PLC, 7.75%, Series IV (United Kingdom)

 

100,000

 

2,595,000

 

HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)

 

100,000

 

2,620,000

 

National Westminster Bank PLC, 7.763%, Series C (United Kingdom)(a)

 

219,392

 

5,669,089

 

Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)

 

31,081

 

791,012

 

 

 

 

 

19,915,501

 

 

3



 

 

 

Number
of Shares

 

Value

 

ELECTRIC 1.3%

 

 

 

 

 

INTEGRATED ELECTRIC 0.4%

 

 

 

 

 

Integrys Holdings, 6.00%, due 8/1/73(d)

 

162,977

 

$

4,303,619

 

REGULATED ELECTRIC 0.9%

 

 

 

 

 

Southern Co./The, 6.25%, due 10/15/75

 

330,000

 

9,018,900

 

TOTAL ELECTRIC

 

 

 

13,322,519

 

FINANCIAL 2.3%

 

 

 

 

 

DIVERSIFIED FINANCIAL SERVICES 0.3%

 

 

 

 

 

KKR & Co. LP, 6.75%, Series A

 

140,000

 

3,530,800

 

INVESTMENT BANKER/BROKER 2.0%

 

 

 

 

 

Charles Schwab Corp./The, 5.95%, Series D

 

172,400

 

4,491,020

 

Morgan Stanley, 6.875%(a)

 

316,012

 

8,576,566

 

Morgan Stanley, 6.375%, Series I

 

303,517

 

7,912,688

 

 

 

 

 

20,980,274

 

TOTAL FINANCIAL

 

 

 

24,511,074

 

INDUSTRIALS—CHEMICALS 1.0%

 

 

 

 

 

CHS, 6.75%(a)

 

130,453

 

3,466,136

 

CHS, 7.50%, Series 4

 

74,495

 

2,073,196

 

CHS, 7.10%, Series II(a)

 

193,453

 

5,356,714

 

 

 

 

 

10,896,046

 

INSURANCE 4.3%

 

 

 

 

 

LIFE/HEALTH INSURANCE—FOREIGN 0.1%

 

 

 

 

 

Aegon NV, 6.50% (Netherlands)

 

44,521

 

1,169,567

 

MULTI-LINE 2.0%

 

 

 

 

 

American Financial Group, 5.75%, due 8/25/42

 

200,000

 

5,146,000

 

American Financial Group, 6.00%, due 11/15/55

 

99,000

 

2,514,600

 

American Financial Group, 6.25%, due 9/30/54

 

139,041

 

3,698,491

 

Hanover Insurance Group/The, 6.35%, due 3/30/53

 

78,400

 

1,999,200

 

Hartford Financial Services Group, 7.875%, due 4/15/42(a)

 

67,397

 

2,104,134

 

WR Berkley Corp., 5.625%, due 4/30/53(a)

 

117,836

 

2,954,148

 

WR Berkley Corp., 5.90%, due 3/1/56

 

112,600

 

2,847,654

 

 

 

 

 

21,264,227

 

MULTI-LINE—FOREIGN 1.0%

 

 

 

 

 

ING Groep N.V., 7.05% (Netherlands)

 

149,060

 

3,911,334

 

PartnerRe Ltd., 6.50%, Series D (Bermuda)

 

64,770

 

1,715,110

 

PartnerRe Ltd., 7.25%, Series E (Bermuda)

 

167,275

 

4,732,210

 

 

 

 

 

10,358,654

 

 

4



 

 

 

Number
of Shares

 

Value

 

REINSURANCE 0.1%

 

 

 

 

 

Reinsurance Group of America, 6.20%, due 9/15/42

 

26,133

 

$

741,655

 

REINSURANCE—FOREIGN 1.1%

 

 

 

 

 

Aspen Insurance Holdings Ltd., 5.95% (Bermuda)

 

114,309

 

3,018,901

 

Aspen Insurance Holdings Ltd., 7.25% (Bermuda)

 

106,000

 

2,798,400

 

Axis Capital Holdings Ltd., 6.875%, Series C (Bermuda)

 

49,728

 

1,286,960

 

Endurance Speciality Holdings Ltd., 6.35%, Series C (Bermuda)

 

177,000

 

4,639,170

 

 

 

 

 

11,743,431

 

TOTAL INSURANCE

 

 

 

45,277,534

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.4%

 

 

 

 

 

Qwest Corp., 7.00%, due 4/1/52

 

55,429

 

1,413,439

 

Qwest Corp., 7.375%, due 6/1/51

 

100,000

 

2,553,000

 

 

 

 

 

3,966,439

 

REAL ESTATE 7.2%

 

 

 

 

 

DIVERSIFIED 2.0%

 

 

 

 

 

Coresite Realty Corp., 7.25%, Series A

 

79,200

 

2,059,200

 

Lexington Realty Trust, 6.50%, Series C ($50 Par Value)(a)

 

76,536

 

3,704,725

 

National Retail Properties, 5.70%, Series E

 

73,266

 

1,906,381

 

NorthStar Realty Finance Corp., 8.50%, Series D

 

90,426

 

2,043,628

 

VEREIT, 6.70%, Series F(a)

 

323,710

 

8,199,574

 

Wells Fargo Real Estate Investment Corp., 6.375%, Series A

 

102,536

 

2,761,295

 

 

 

 

 

20,674,803

 

HOTEL 0.8%

 

 

 

 

 

Hersha Hospitality Trust, 6.875%, Series C

 

134,345

 

3,658,214

 

Hospitality Properties Trust, 7.125%, Series D

 

107,050

 

2,798,287

 

Sunstone Hotel Investors, 6.95%, Series E

 

65,000

 

1,706,250

 

 

 

 

 

8,162,751

 

INDUSTRIALS 0.8%

 

 

 

 

 

Gramercy Property Trust, 7.125%, Series A

 

151,270

 

3,933,020

 

Monmouth Real Estate Investment Corp., 7.875%, Series B

 

87,500

 

2,308,250

 

STAG Industrial, 6.875%, Series C

 

96,000

 

2,538,240

 

 

 

 

 

8,779,510

 

OFFICE 0.2%

 

 

 

 

 

Corporate Office Properties Trust, 7.375%, Series L(a)

 

100,000

 

2,600,000

 

 

5



 

 

 

Number
of Shares

 

Value

 

RESIDENTIAL 0.3%

 

 

 

 

 

APARTMENT 0.2%

 

 

 

 

 

American Homes 4 Rent, 5.00%, Series A

 

79,685

 

$

2,110,856

 

MANUFACTURED HOME 0.1%

 

 

 

 

 

Equity Lifestyle Properties, 6.75%, Series C

 

60,843

 

1,570,966

 

TOTAL RESIDENTIAL

 

 

 

3,681,822

 

SELF STORAGE 0.2%

 

 

 

 

 

Public Storage, 5.375%, Series V

 

89,880

 

2,304,523

 

SHOPPING CENTERS 2.4%

 

 

 

 

 

COMMUNITY CENTER 1.6%

 

 

 

 

 

Cedar Realty Trust, 7.25%, Series B(a)

 

219,000

 

5,547,270

 

DDR Corp., 6.50%, Series J

 

60,000

 

1,557,000

 

Inland Real Estate Corp., 8.125%, Series A

 

171,427

 

4,407,388

 

Inland Real Estate Corp., 6.95%, Series B

 

121,388

 

3,049,874

 

Saul Centers, 6.875%, Series C

 

84,140

 

2,233,917

 

 

 

 

 

16,795,449

 

REGIONAL MALL 0.8%

 

 

 

 

 

CBL & Associates Properties, 7.375%, Series D(a)

 

324,982

 

8,043,304

 

TOTAL SHOPPING CENTERS

 

 

 

24,838,753

 

SPECIALTY 0.5%

 

 

 

 

 

Digital Realty Trust, 7.375%, Series H

 

60,000

 

1,665,000

 

Digital Realty Trust, 6.35%, Series I

 

140,000

 

3,612,000

 

 

 

 

 

5,277,000

 

TOTAL REAL ESTATE

 

 

 

76,319,162

 

TECHNOLOGY—SOFTWARE 0.4%

 

 

 

 

 

eBay, 6.00%, due 2/1/56

 

173,000

 

4,359,600

 

TRANSPORT—MARINE—FOREIGN 0.1%

 

 

 

 

 

Seaspan Corp., 9.50%, Series C (Hong Kong)

 

60,786

 

1,537,278

 

UTILITIES 1.9%

 

 

 

 

 

Entergy New Orleans, 5.50%, due 4/1/66

 

140,000

 

3,561,600

 

SCE Trust III, 5.75%

 

52,698

 

1,416,522

 

SCE Trust IV, 5.375%, Series J

 

272,000

 

7,080,160

 

SCE Trust V, 5.45%, Series K

 

277,849

 

7,404,676

 

 

 

 

 

19,462,958

 

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$280,458,956)

 

 

 

299,399,597

 

 

6



 

 

 

Number
of Shares

 

Value

 

PREFERRED SECURITIES—CAPITAL SECURITIES 37.4%

 

 

 

 

 

BANKS 10.1%

 

 

 

 

 

AgriBank FCB, 6.875%

 

38,000

 

$

4,030,375

 

Bank of America Corp., 6.10%, Series AA

 

2,575,000

 

2,539,594

 

Bank of America Corp., 6.30%, Series DD

 

7,900,000

 

8,156,750

 

Bank of America Corp., 6.50%, Series Z(a)

 

10,113,000

 

10,451,280

 

Citigroup, 6.125%, Series R

 

2,806,000

 

2,816,438

 

Citigroup Capital III, 7.625%, due 12/1/36(a)

 

4,700,000

 

5,829,795

 

CoBank ACB, 6.25%, 144A(a),(c)

 

33,000

 

3,390,750

 

CoBank ACB, 6.125%, Series G(a)

 

46,500

 

4,413,143

 

Farm Credit Bank of Texas, 10.00%, Series I(a)

 

6,000

 

7,526,250

 

Goldman Sachs Capital I, 6.345%, due 2/15/34(a)

 

600,000

 

701,808

 

Huntington Bancshares, 8.50%, Series A (Convertible)(a)

 

3,212

 

4,368,320

 

JPMorgan Chase & Co., 7.90%, Series I(a)

 

10,000,000

 

10,012,500

 

JPMorgan Chase & Co., 6.75%, Series S(a)

 

8,650,000

 

9,508,512

 

JPMorgan Chase & Co., 5.30%, Series Z

 

3,225,000

 

3,241,125

 

PNC Financial Services Group, 6.75%

 

6,275,000

 

6,870,498

 

US Bancorp, 5.125%, Series I

 

1,583,000

 

1,614,739

 

Wells Fargo & Co., 7.98%, Series K(a)

 

11,475,000

 

11,889,821

 

Wells Fargo & Co., 5.90%, Series S

 

1,369,000

 

1,389,108

 

Wells Fargo & Co., 5.875%, Series U

 

3,870,000

 

4,137,224

 

Zions Bancorporation, 7.20%, Series J

 

3,997,000

 

4,096,925

 

 

 

 

 

106,984,955

 

BANKS—FOREIGN 10.5%

 

 

 

 

 

Allied Irish Banks PLC, 7.375%, Series EMTN (EUR) (Ireland)

 

3,400,000

 

3,479,381

 

Banco Bilbao Vizcaya Argentaria SA, 9.00% (Spain)

 

2,600,000

 

2,681,250

 

Barclays Bank PLC, 7.625%, due 11/21/22 (United Kingdom)(a)

 

3,375,000

 

3,634,453

 

Barclays PLC, 8.00% (EUR) (United Kingdom)

 

2,050,000

 

2,262,714

 

Barclays PLC, 8.25% (United Kingdom)(a)

 

5,320,000

 

5,333,726

 

BNP Paribas, 7.195%, 144A (France)(a),(b),(c)

 

3,300,000

 

3,572,250

 

BNP Paribas, 7.375%, 144A (France)(c)

 

2,000,000

 

1,937,500

 

BNP Paribas SA, 7.625%, 144A (France)(c)

 

4,200,000

 

4,233,600

 

Credit Agricole SA, 8.125%, 144A (France)(c)

 

7,300,000

 

7,310,914

 

Credit Suisse Group AG, 7.50%, 144A (Switzerland)(a),(c)

 

4,805,000

 

4,743,136

 

Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (Germany)(a),(b),(c)

 

7,235,906

 

8,411,741

 

HBOS Capital Funding LP, 6.85% (United Kingdom)

 

3,300,000

 

3,343,263

 

HSBC Capital Funding LP, 10.176%, 144A (United Kingdom)(c)

 

8,442,000

 

12,473,055

 

 

7



 

 

 

Number
of Shares

 

Value

 

Intesa Sanpaolo SpA, 7.70%, 144A (Italy)(c)

 

2,400,000

 

$

2,208,000

 

Lloyds Banking Group PLC, 7.50% (United Kingdom)(a)

 

7,366,000

 

7,310,018

 

Nationwide Building Society, 10.25% (GBP) (United Kingdom)

 

4,790,000

 

8,599,886

 

Rabobank Nederland, 11.00%, 144A (Netherlands)(a),(c)

 

5,800,000

 

6,981,170

 

Royal Bank of Scotland Group PLC, 7.50% (United Kingdom)

 

2,500,000

 

2,331,250

 

Royal Bank of Scotland Group PLC, 7.648% (United Kingdom)(a)

 

5,691,000

 

6,686,925

 

Royal Bank of Scotland Group PLC, 8.00% (United Kingdom)

 

2,100,000

 

2,007,600

 

Standard Chartered PLC, 7.014%, 144A (United Kingdom)(a),(c)

 

2,250,000

 

2,266,875

 

UBS AG, 7.625%, due 8/17/22 (Switzerland)(a),(b)

 

1,750,000

 

2,006,898

 

UBS Group AG, 6.875% (Switzerland)

 

3,400,000

 

3,375,761

 

UBS Group AG, 7.125% (Switzerland)

 

3,000,000

 

3,042,735

 

 

 

 

 

110,234,101

 

FINANCIAL—DIVERSIFIED FINANCIAL SERVICES 0.6%

 

 

 

 

 

Depository Trust & Clearing Corp/The, 4.875%, Series C, 144A(c)

 

3,000,000

 

2,977,500

 

State Street Corp., 5.25%, Series F

 

3,005,000

 

3,057,888

 

 

 

 

 

6,035,388

 

FOOD 1.0%

 

 

 

 

 

Dairy Farmers of America, 7.875%, 144A(c),(e)

 

40,100

 

4,253,106

 

Dairy Farmers of America, 7.875%, 144A ($100 Par Value)(c)

 

62,000

 

6,351,125

 

 

 

 

 

10,604,231

 

INDUSTRIALS—DIVERSIFIED MANUFACTURING 2.3%

 

 

 

 

 

General Electric Co., 5.00%, Series D

 

23,586,000

 

24,323,063

 

INSURANCE 11.1%

 

 

 

 

 

LIFE/HEALTH INSURANCE 2.4%

 

 

 

 

 

MetLife, 5.25%, Series C

 

4,266,000

 

4,087,361

 

MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A(c)

 

2,000,000

 

2,310,000

 

MetLife Capital Trust X, 9.25%, due 4/8/68, 144A(a),(c)

 

8,065,000

 

10,958,319

 

Prudential Financial, 5.625%, due 6/15/43

 

7,384,000

 

7,529,834

 

 

 

 

 

24,885,514

 

LIFE/HEALTH INSURANCE—FOREIGN 4.3%

 

 

 

 

 

Cloverie PLC for Zurich Insurance Co., Ltd., 5.625%, due 6/24/46 (Ireland)

 

3,800,000

 

3,915,227

 

Dai-ichi Life Insurance Co. Ltd., 5.10%, 144A (Japan)(c)

 

3,400,000

 

3,689,000

 

 

8



 

 

 

Number
of Shares

 

Value

 

Demeter BV (Swiss Re Ltd.), 5.75%, due 8/15/50 (Netherlands)

 

3,200,000

 

$

3,210,864

 

La Mondiale Vie, 7.625% (France)

 

5,700,000

 

5,975,384

 

Meiji Yasuda Life Insurance Co., 5.20%, due 10/20/45, 144A (Japan)(c)

 

10,150,000

 

10,956,418

 

Nippon Life Insurance Co., 4.70%, due 1/20/46, 144A (Japan)(c)

 

10,000,000

 

10,424,750

 

Nippon Life Insurance Co., 5.10%, due 10/16/44, 144A (Japan)(c)

 

2,200,000

 

2,351,250

 

Sumitomo Life Insurance Co., 6.50%, due 9/20/73, 144A (Japan)(c)

 

3,800,000

 

4,417,500

 

 

 

 

 

44,940,393

 

MULTI-LINE 0.4%

 

 

 

 

 

MetLife, 10.75%, due 8/1/69(a)

 

3,000,000

 

4,567,500

 

MULTI-LINE—FOREIGN 0.9%

 

 

 

 

 

Aviva PLC, 8.25% (United Kingdom)

 

2,700,000

 

2,896,330

 

AXA SA, 8.60%, due 12/15/30 (France)(a)

 

2,400,000

 

3,168,000

 

AXA SA, 6.463%, 144A (France)(c)

 

3,250,000

 

3,323,125

 

 

 

 

 

9,387,455

 

PROPERTY CASUALTY 0.6%

 

 

 

 

 

Liberty Mutual Group, 7.80%, due 3/7/87, 144A(a),(c)

 

6,150,000

 

6,718,875

 

PROPERTY CASUALTY—FOREIGN 1.9%

 

 

 

 

 

Mitsui Sumitomo Insurance Co., Ltd., 7.00%, due 3/15/72, 144A (Japan)(a),(c)

 

3,250,000

 

3,847,188

 

QBE Capital Funding III Ltd., 7.25%, due 5/24/41, 144A (Australia)(a),(c)

 

3,800,000

 

4,118,250

 

QBE Insurance Group Ltd., 6.75%, due 12/2/44 (Australia)

 

6,003,000

 

6,267,132

 

RL Finance Bonds No. 3 PLC, 6.125%, due 11/13/28 (GBP) (United Kingdom)

 

3,200,000

 

4,718,076

 

Sompo Japan Nipponkoa Insurance, 5.325%, due 3/28/73, 144A (Japan)(c)

 

600,000

 

652,500

 

 

 

 

 

19,603,146

 

REINSURANCE—FOREIGN 0.6%

 

 

 

 

 

Aquarius + Investments PLC, 8.25% (Switzerland)

 

6,000,000

 

6,457,500

 

TOTAL INSURANCE

 

 

 

116,560,383

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.7%

 

 

 

 

 

Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)(a),(c)

 

6,254

 

7,489,165

 

 

9



 

 

 

Number
of Shares

 

Value

 

UTILITIES 1.1%

 

 

 

 

 

ELECTRIC UTILITIES 0.2%

 

 

 

 

 

NextEra Energy Capital Holdings, 7.30%, due 9/1/67, Series D(a)

 

2,140,000

 

$

2,000,472

 

 

 

 

 

 

 

ELECTRIC UTILITIES—FOREIGN 0.8%

 

 

 

 

 

Enel SpA, 8.75%, due 9/24/73, 144A (Italy)(a),(c)

 

8,010,000

 

8,931,150

 

 

 

 

 

 

 

MULTI-UTILITIES 0.1%

 

 

 

 

 

Dominion Resources, 5.75%, due 10/1/54(a)

 

1,198,000

 

1,151,877

 

TOTAL UTILITIES

 

 

 

12,083,499

 

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES
(Identified cost—$365,036,730)

 

 

 

394,314,785

 

 

 

 

 

 

 

 

 

Principal
Amount

 

 

 

CORPORATE BONDS—INTEGRATED TELECOMMUNICATIONS SERVICES 0.7%

 

 

 

 

 

Embarq Corp., 7.995%, due 6/1/36

 

$

3,210,000

 

3,107,087

 

Frontier Communications Corp., 9.00%, due 8/15/31(a)

 

4,397,000

 

3,803,405

 

TOTAL CORPORATE BONDS
(Identified cost—$7,617,875)

 

 

 

6,910,492

 

 

 

 

 

 

 

 

 

Number
of Shares

 

 

 

SHORT-TERM INVESTMENTS 0.3%

 

 

 

 

 

MONEY MARKET FUNDS

 

 

 

 

 

State Street Institutional Treasury Money Market Fund, 0.19%(f)

 

3,300,000

 

3,300,000

 

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$3,300,000)

 

 

 

3,300,000

 

 

10



 

TOTAL INVESTMENTS (Identified cost—$1,133,098,093)

 

131.8

%

 

 

$

1,388,143,332

 

LIABILITIES IN EXCESS OF OTHER ASSETS

 

(31.8

)

 

 

(334,990,147

)

NET ASSETS (Equivalent to $22.14 per share based on 47,566,736 shares of common stock outstanding)

 

100.0

%

 

 

$

1,053,153,185

 

 


Note: Percentages indicated are based on the net assets of the Fund.

(a) All or a portion of the security is pledged as collateral in connection with the Fund’s credit agreement. $711,169,527  in aggregate has been pledged as collateral.

(b) A portion of the security has been rehypothecated in connection with the Fund’s credit agreement. $322,021,532 in aggregate has been rehypothecated.

(c) Resale is restricted to qualified institutional investors. Aggregate holdings equal 15.0% of the net assets of the Fund, of which 0.4% are illiquid.

(d) A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $1,214,690 in aggregate has been segregated as collateral.

(e) Illiquid security. Aggregate holdings equal 0.4% of the net assets of the Fund.

(f) Rate quoted represents the annualized seven-day yield of the Fund.

 

Forward foreign currency exchange contracts outstanding at March 31, 2016 were as follows:

Counterparty

 

Contracts to
Deliver

 

In Exchange
For

 

Settlement
Date

 

Unrealized
Appreciation
(Depreciation)

 

Brown Brothers Harriman

 

EUR

6,499,452

 

USD

7,069,460

 

4/4/16

 

$

(326,265

)

Brown Brothers Harriman

 

GBP

9,732,079

 

USD

13,565,263

 

4/4/16

 

(412,428

)

Brown Brothers Harriman

 

USD

13,990,740

 

GBP

9,732,079

 

4/4/16

 

(13,049

)

Brown Brothers Harriman

 

USD

7,407,945

 

EUR

6,499,452

 

4/4/16

 

(12,220

)

Brown Brothers Harriman

 

EUR

5,054,259

 

USD

5,764,964

 

5/3/16

 

8,737

 

Brown Brothers Harriman

 

GBP

9,244,670

 

USD

13,289,860

 

5/4/16

 

11,009

 

 

 

 

 

 

 

 

 

$

(744,216

)

 

 

Glossary of Portfolio Abbreviations

 

 

 

 

EUR

Euro Currency

 

FRN

Floating Rate Note

 

 

11



 

GBP

Great British Pound

 

REIT

Real Estate Investment Trust

 

TruPS

Trust Preferred Securities

 

USD

United States Dollar

 

 

12



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

 

Note 1. Portfolio Valuation

 

Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price. Exchange traded options are valued at their last sale price as of the close of options trading on applicable exchanges on the valuation date. In the absence of a last sale price on such day, options are valued at the average of the quoted bid and ask prices as of the close of business. Over-the-counter options are valued based upon prices provided by the respective counterparty. Forward contracts are valued daily at the prevailing forward exchange rate.

 

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.

 

Readily marketable securities traded in the over-the-counter market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be over-the-counter, are valued at the last sale price on the valuation date as reported by sources deemed appropriate by the Board of Directors to reflect their fair market value. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price. However, certain fixed-income securities may be valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair market value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are used to calculate the fair values.

 

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at their closing net asset value.

 



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment manager, subject to the oversight of the Board of Directors. The investment manager has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

 

Securities for which market prices are unavailable, or securities for which the investment manager determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.

 

The Fund’s use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

 

Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability.  The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.

 

·      Level 1 — quoted prices in active markets for identical investments

·                  Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

·                  Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfer at the end of the period in which the underlying event causing the movement occurred. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 securities as of March 31, 2016.

 



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

The following is a summary of the inputs used as of March 31, 2016 in valuing the Fund’s investments carried at value:

 

 

 

 

 

Quoted Prices In
Active Markets
for Identical
Investments

 

Other
Significant
Observable
Inputs

 

Significant
Unobservable
Inputs

 

 

 

Total

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Common Stock

 

$

684,218,458

 

$

684,218,458

 

$

 

$

 

Preferred Securities - $25 Par Value:

 

 

 

 

 

 

 

 

 

Banks

 

79,831,486

 

73,047,174

 

6,784,312

 

 

Electric-Integrated Electric

 

4,303,619

 

 

4,303,619

 

 

Other Industries

 

215,264,492

 

215,264,492

 

 

 

Preferred Securities - Capital Securities:

 

 

 

 

 

 

 

 

 

Banks

 

106,984,955

 

4,368,320

 

102,616,635

 

 

Food

 

10,604,231

 

 

6,351,125

 

4,253,106

 

Other Industries

 

276,725,599

 

 

276,725,599

 

 

Corporate Bonds

 

6,910,492

 

 

6,910,492

 

 

Short-Term Investments

 

3,300,000

 

 

3,300,000

 

 

Total Investments(a)

 

$

1,388,143,332

 

$

976,898,444

 

$

406,991,782

 

$

4,253,106

(b)

Forward foreign currency exchange contracts

 

$

19,746

 

$

 

$

19,746

 

$

 

Total Appreciation in Other Financial Instruments(a)

 

$

19,746

 

$

 

$

19,746

 

$

 

Forward foreign currency exchange contracts

 

$

(763,962

)

$

 

$

(763,962

)

$

 

Total Depreciation in Other Financial Instruments(a)

 

$

(763,962

)

$

 

$

(763,962

)

$

 

 


(a) Portfolio holdings are disclosed individually on the Schedule of Investments.

(b) Level 3 investments are valued by a third-party pricing service.  The inputs for these securities are not readily available or cannot be reasonably estimated.  A change in the significant unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.

 

Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

 



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

 

 

Total
Investments
in Securities

 

Preferred
Securities -
 Capital
Securities -
Banks

 

Preferred
Securities -
 $25 Par
Value -
Food

 

Balance as of December 31, 2015

 

$

11,380,918

 

$

4,215,518

 

7,165,400

 

Sales

 

(2,911,946

)

 

(2,911,946

)

Realized gain

 

111,946

 

 

111,946

 

Change in unrealized appreciation (depreciation)

 

85,331

 

197,625

 

(112,294

)

Transfers out of Level 3(a)

 

(4,413,143

)

(4,413,143

)

 

Balance as of March 31, 2016

 

$

4,253,106

 

$

 

$

4,253,106

 

 

The change in unrealized appreciation (depreciation) attributable to securities owned on March 31, 2016 which were valued using significant unobservable inputs (Level 3) amounted to $(112,294).

 


(a) Transfers from Level 3 to Level 2 are due to an increase in market activity (e.g. frequency of trades), which resulted in an increase in available market inputs to determine prices.

 

Note 2.   Derivative Instruments

 

The following is a summary of the Fund’s derivative instruments as of March 31, 2016:

 

Forward foreign currency exchange contracts $ (744,216)

 

The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the three months ended March 31, 2016:

 

 

 

Forward foreign
currency exchange
contracts

 

Average Notional Balance

 

$

22,266,622

 

Ending Notional Balance

 

19,054,824

 

 

Options:  The Fund may purchase and write exchange-listed and over-the-counter put or call options on securities, stock indices and other financial instruments to enhance portfolio returns and reduce overall volatility.

 



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When an option expires, the Fund realizes a gain on the option to the extent of the premium received. Premiums received from writing options which are exercised or closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium reduces the cost basis of the security purchased by the Fund.  If a call option is exercised, the premium is added to the proceeds of the security sold to determine the realized gain or loss. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the underlying index or security. Other risks include the possibility of an illiquid options market or the inability of the counterparties to fulfill their obligations under the contracts.

 

Put and call options purchased are accounted for in the same manner as portfolio securities. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract.

 

At March 31, 2016, the Fund did not have any option contracts outstanding.

 

Transactions in written options during the three months ended March 31, 2016, were as follows:

 

 

 

Number

 

 

 

 

 

of Contracts

 

Premiums

 

Written options contracts outstanding at December 31, 2015

 

1,614

 

72,629

 

Option contracts expired

 

(1,614

)

(72,629

)

Written option contracts outstanding at March 31, 2016

 

 

$

 

 

Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts to hedge the currency exposure associated with certain of its non-U.S. dollar denominated securities. A forward foreign currency exchange contract is a commitment between two parties to purchase or sell foreign currency at a set price on a future date. The market value of a forward foreign currency exchange contract fluctuates with changes in foreign currency exchange rates. These contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on foreign currency translations. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are included in net realized gain or loss on foreign currency

 



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

transactions. For federal income tax purposes, the Fund has made an election to treat gains and losses from forward foreign currency exchange contracts as capital gains and losses.

 

Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Schedule of Investments. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the contract. Risks may also arise upon entering these contracts from the potential inability of the counterparties to meet the terms of their contracts. In connection with these contracts, securities may be identified as collateral in accordance with the terms of the respective contracts.

 

Note 3.   Income Tax Information

 

As of March 31, 2016, the federal tax cost and net unrealized appreciation and depreciation in value of securities held were as follows:

 



 

Cost for federal income tax purposes

 

$

1,133,098,093

 

Gross unrealized appreciation

 

$

259,739,687

 

Gross unrealized depreciation

 

(4,694,448

)

Net unrealized appreciation

 

$

255,045,239

 

 



 

Item 2. Controls and Procedures

 

(a)                                 The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act as of a date within 90 days of the filing of this report.

 

(b)                                 During the last fiscal quarter, there were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

(a)                                 Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

 

By:

/s/ Adam M. Derechin

 

 

Name: Adam M. Derechin

 

 

Title: President

 

 

Date: May 26, 2016

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Adam M. Derechin

 

By:

/s/ James Giallanza

 

Name: Adam M. Derechin

 

 

Name: James Giallanza

 

Title: President and Principal

 

 

Title: Treasurer and Principal

 

Executive Officer

 

 

Financial Officer

 

 

 

 

Date: May 26, 2016