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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
April 27, 2005
To Our Shareholders:
We are pleased to submit to you our report for Cohen & Steers REIT &
Preferred Income Fund for the quarter ended March 31, 2005. The net asset value
at that date was $27.49 per common share. The fund's common stock is traded on
the New York Stock Exchange and its share price can differ from its net asset
value; at quarter end, the fund's closing share price on the NYSE was $24.95 per
share. The fund has been in operation since June 24, 2003 and has delivered the
following total returns (including income) compared to its relevant benchmarks:
TOTAL RETURN, PERIOD ENDED 3/31/05
-----------------------------------------------
MARKET PRICE(a) NET ASSET VALUE(a)
---------------------- ----------------------
SINCE SINCE
QUARTER INCEPTION(b) QUARTER INCEPTION(b)
------- ----------- ------- -----------
Cohen & Steers REIT & Preferred Income
Fund................................. - 6.1% 15.0% - 6.7% 32.7%
NAREIT Equity REIT Index(c)............ - 7.1% 47.2% - 7.1% 47.2%
Merrill Lynch Fixed Rate Preferred
Index(d)............................. - 2.4% 6.1% - 2.4% 6.1%
During the quarter, three monthly dividends of $0.195 per share were paid to
common shareholders. This represented an 11% increase from the monthly
distribution rate paid in the previous quarter. In addition, three monthly
dividends of $0.195 per share were declared and will be paid on April 29, 2005,
May 31, 2005 and June 30, 2005.
INVESTMENT REVIEW
The fund may invest up to 60% and no less than 40% of its assets in each of
REIT common stocks, and corporate preferred securities. During the quarter the
fund held roughly 55% of its assets in REIT common stocks, 43% in preferred
securities, and 2% in corporate bonds. The fund continues to strive in its
primary mission of delivering high current income through a mixed asset class
portfolio that historically has exhibited low correlations and thus is designed
to temper the volatility of returns.
-------------------
(a) As a closed-end investment company, the price of the fund's New York Stock
Exchange-traded shares will be set by market forces and at times may deviate
from the net asset value per share of the fund.
(b) The fund commenced operations on June 27, 2003.
(c) The NAREIT Equity REIT Index ('Equity REITs') is an unmanaged
market-capitalization-weighted index of all tax-qualified Equity REITs
listed on the NYSE, AMEX, and the Nasdaq that have 75% or more of their
gross invested book assets invested directly or indirectly in the equity
ownership of real estate.
(d) The Merrill Lynch Fixed Rate Preferred Index is an unmanaged index of
preferred securities.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
Since its inception, the fund's REIT investments have generated significant
net asset value growth for shareholders while also contributing to the fund's
high level of investment income. However, REITs fared poorly in the first
quarter, with the NAREIT Equity REIT Index returning - 7.1%. The preferred
market also turned in a negative return in the quarter as bond yields
rose, but with a total return of - 2.4% preferreds outperformed REITs.
Over the past several quarters we have focused on the rebound in real estate
fundamentals when determining the outlook for real estate stocks. The
performance of real estate stocks during the past two years, in our view,
demonstrates that the market has come to appreciate the budding turnaround in
property occupancies and rents.
More recently, however, forces outside the real estate industry have begun
to shape the behavior of the REIT broader stock market. Headwinds have started
to blow, perhaps not hard enough to endanger the U.S. economic and real estate
recoveries, but sufficient enough, we believe, to slow their pace and generate
upheaval in some segments of the economy.
The financial press has invoked a laundry list of concerns, including the
trade deficit, the federal budget deficit, the over-consuming and financially
stretched consumer, a housing bubble and fears of higher long-term interest
rates. Our belief is that most of these are not immediately threatening. Our
unease rests largely with rising oil prices and with the Federal Reserve's
persistent monetary tightening. As the Fed reverses the accommodative monetary
stance that returned the economy to a normal growth trajectory, we believe
economic growth should moderate until these interest rate increases work their
way through the system. The flattening yield curve (short-term and long-term
interest rates almost equal) is hinting at this, as it typically does.
REIT share prices have fallen further than most of the broader market equity
indexes, in an abrupt turnaround from last year. Health care, which had a
- 11.2% total return, was the worst performing property sector in the first
quarter -- not surprising given that, unlike most types of real estate, long
lease terms tend to make this group more interest-rate-sensitive. The industrial
and mixed office/industrial sectors, which returned - 10.5% and - 9.7%,
respectively, were the next worst performing groups. Apparent profit taking in
the first quarter made some of the best performing stocks last year the worst
performers in the quarter. Self-storage was the best performing property type in
the quarter with a 0.8% total return.
The fund's best performing investments during the quarter were in the office
and industrial sectors, while the worst performing sector for the fund was the
regional mall sector. Equity Office Properties and Mission West Properties were
two of the fund's best performing holdings, contributing total returns of 5.2%
and 1.2%, respectively. Laggards during the quarter included Mills Corporation
and Macerich Company, both regional mall companies, with total returns of
- 16.1% and - 14.2%, respectively.
Our view of why REIT share prices declined during the quarter is distinct
from popular perception, and hence our outlook for the future is different as
well. The conventional wisdom surrounding REITs is that their outperformance
compared to the broader markets during the past five years necessitates that
they are now overvalued. Additionally, many believe that interest rates are a
key determinant of REIT stock prices and that the rise in interest rates will
cause REITs to underperform -- despite historical evidence to the contrary.
Finally, many
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
fear that a continual rise in interest rates will burst the real estate
'bubble' -- a condition which may exist in some overheated single-family
housing markets but certainly not among commercial property types.
Our perspective is somewhat different. We believe REITs' substantial
outperformance in 2004 resulted in many individuals and institutions being
over-allocated to the REIT asset class at the beginning of 2005, precipitating
some re-balancing of portfolios away from REITs. Many investors have reduced
their REIT holdings, which we believe reflects the dispassionate, disciplined
re-allocation by long-time REIT investors. Perhaps a more simple explanation is
that, after strong returns, investors merely took profits, in a financial market
environment that already was subject to overall poor investor sentiment.
The preferred market had a negative return over the quarter and followed
bonds lower. In addition to rising bond yields, preferred performance also
reflected a very negative tone to credit markets, sparked most immediately by a
massive downward revision to General Motors' earnings forecast. GM's
announcement, which was followed a couple weeks later by a withdrawal of
earnings guidance for the year, revealed the extent of pressure in the auto
sector. Elevated commodity prices, punishing competition and high fixed costs
have together contributed to the negative industry trends.
Over the quarter negativism spread to other credit sectors and especially to
the high yield market as the prospect for the giant auto manufacturers to be
downgraded to 'junk' rose meaningfully. In addition, fears of leveraged buyouts
and other creditor-unfriendly events rose over the quarter as the broader equity
market continued to fare poorly.
It was a difficult quarter for preferreds, but our defensive posturing
helped stem the decline as the fund's preferred holdings performed well relative
to the preferred market overall. The fund's sizable investments in what we view
as very high quality domestic and foreign bank issues were standout performers.
A focus on playing defense in structure also paid off, as higher coupon issues
across sectors generally performed better than the broader preferred market.
With short rates rising and credit markets becoming much less friendly, we added
to positions in floating rate securities of what we see as high quality
companies. These investments were also among the fund's best performing
positions in the quarter.
Auto-related holdings underperformed in the quarter. The fund held both GM
and Ford securities, though in much lower weights than the benchmark index.
Having reduced these investments substantially in recent months, they
represented a little more than 1% of the fund's assets at the quarter end.
Liberty Media securities were also poor performers. Liberty Media's credit
ratings were downgraded following the company's announcement of a potential
spin-off of certain assets and due to management's lack of conviction to
maintaining its investment grade ratings.
INVESTMENT OUTLOOK
Many investors seem to be concerned that we are inevitably headed for a REIT
bear market similar to the one that began in 1998. However, in early 1998, real
estate fundamentals peaked after accelerating for six years. Buildings were full
and a construction boom was underway. Valuations were excessive -- REITs traded
at a 25%
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
premium to the value of their underlying real estate assets -- and investor
sentiment was positive. None of these conditions exist today, in our view.
We believe that investors may want to consider the environment REITs faced
in the 1994 period. The Fed had aggressively raised short-term interest rates
from 3% to 5.5% by year-end, removing the accommodative monetary stimulus that
had jump-started the economy out of the early-1990s recession. The rate of GDP
growth and job growth slowed from white-hot levels to more sustainable levels
and the economic expansion was able to sustain itself for another six years as a
result. As the stock market began to incorporate expectations for a slowing
economy, REIT returns moderated in 1994, to just 3.2% (the S&P 500 returned 1.3%
in 1994), after generating average annual total returns of 23% the prior three
years. As the economy stabilized after this 'mid-course correction,' REITs went
on to generate an average return of 24% annually for the next three years.
While the Fed's current tightening cycle will inevitably cause some
dislocations, and while economic growth may slow somewhat in the near term, we
believe we are still at the beginning of a recovery in most real estate markets.
REIT earnings growth, in our view, may not accelerate as quickly, near-term, as
the economy undergoes this correction, although we believe there will be
continued healthy growth. Very little new construction is underway and
replacement costs -- the long run determinant of real estate value -- will
continue to rise with raw material costs. Vacancy rates are declining and
effective rents are rising. REIT balance sheets in our view are in excellent
shape. We therefore expect REITs to enjoy a strong period of internal growth,
even without the benefit of new property acquisitions. In addition, we believe
profitable acquisition and development opportunities exist for the skilled
players who can access inexpensive capital.
By our estimates, REIT stocks are trading at approximately the value of
their underlying assets. However, the most recent round of real estate asset
sales would suggest that our estimates of asset value might be too low. It seems
unusual at this stage in the cycle that REITs should trade at or below asset
value, when, as we believe, fundamentals are improving and growth opportunities
are plentiful. As a result we believe that REIT investments will continue to
deliver competitive total returns.
The direction of bond yields will, of course, continue to be an important
driver of preferred security valuations. The resilience in the long end of the
yield curve suggests that the market believes the Fed will contain inflation. We
believe so, too, but both economic data and markets have been choppy, making
fair value for Treasury yields exceedingly difficult to assess. Accordingly, we
will continue to maintain a somewhat defensive interest rate posture in our
preferred holdings.
We are also taking a more defensive stance on credit. While fundamentals in
most sectors remain very good, there certainly are challenges in others.
Notably, some cyclical and industrial companies, including the auto
manufacturers, are facing very significant pressures. A lackluster equity market
also means that the resurgence in corporate risk taking and creditor-unfriendly
actions is likely to abide. These factors are likely to continue to exert
pressure on credit markets. We will look to 'pick our spots' in the months to
come but are focusing on higher credit quality for now.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
In summary, we retain a constructive perspective on the REIT market and
generally expect preferreds to deliver returns mostly reflecting their
attractive income rates, currently over 7% in the fund's portfolio. We believe
that the fund's balance of REIT equities and corporate preferred securities will
continue to provide attractive income, reduced net asset value volatility due to
the low correlation between the two asset classes, and appealing long-term total
returns for our shareholders.
Sincerely,
Martin Cohen Robert H. Steers
MARTIN COHEN ROBERT H. STEERS
President Chairman
Joseph M. Harvey William F. Scapell
JOSEPH M. HARVEY WILLIAM F. SCAPELL
Portfolio Manager Portfolio Manager
VISIT COHEN & STEERS ONLINE AT COHENANDSTEERS.COM
--------------------------------------------------------------------------------
For more information about any of our funds, visit
cohenandsteers.com, where you'll find daily net asset
values, fund fact sheets and portfolio highlights. You can
also access newsletters, education tools and market updates
covering the REIT, utility and preferred securities sectors.
In addition, our Web site contains comprehensive information
about our firm, including our most recent press releases,
profiles of our senior investment professionals, and an
overview of our investment approach.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
OUR LEVERAGE STRATEGY
(UNAUDITED)
--------------------------------------------------------------------------------
While we do not attempt to predict what future interest
rates will be, it has been our philosophy to utilize
interest rate swap transactions to seek to reduce the
interest rate risk inherent in our utilization of leverage.
Our leverage strategy involves issuing auction market
preferred shares (AMPS) to raise additional capital for the
fund, with an objective of increasing the net income
available for shareholders. As of March 31, 2005, AMPS
represented 35% of the fund's managed net assets.
Considering that AMPS have variable dividend rates, we seek
to lock in the rate on a majority of this additional capital
through interest rate swap agreements (where we effectively
convert our variable rate obligation to a fixed rate
obligation for the term of the swap agreements).
Specifically, we have fixed the rate on 63% of our
borrowings at an average interest rate of 3.66%, for an
average remaining period of 3.7 years (when we first entered
into the swaps, the average term was 5.3 years). By locking
in a large portion of our leveraging costs, we have
endeavored to adequately protect the dividend-paying ability
of the fund. The use of leverage increases the volatility of
the fund's net asset value in both up and down markets.
However, we believe that locking in a portion of the fund's
leveraging costs for the term of the swap agreements
partially protects the fund from any impact that an increase
in short-term interest rates may have as a result of the use
of leverage.
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LEVERAGE FACTS(a)
Leverage (as % of managed net assets).............. 35%
% Fixed Rate....................................... 63%
% Variable Rate.................................... 37%
Average Rate on Swaps.............................. 3.66%
Average Term on Swaps.............................. 3.7 years
Current Rate on AMPS............................... 3.12%
-------------------
(a) Data as of March 31, 2005. Information is subject to change.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
MARCH 31, 2005
TOP TEN HOLDINGS
(UNAUDITED)
MARKET % OF
VALUE MANAGED ASSETS
SECURITY ----------- --------------
1. Equity Office Properties Trust...................... $76,328,329 3.72%
2. Archstone-Smith Trust............................... 66,224,565 3.23
3. Health Care Property Investors...................... 66,173,665 3.22
4. Heritage Property Investment Trust.................. 59,428,264 2.90
5. Health Care REIT.................................... 55,859,200 2.72
6. Mack-Cali Realty Corp. ............................. 50,798,825 2.48
7. Arden Realty........................................ 50,392,495 2.46
8. Glimcher Realty Trust............................... 50,281,920 2.45
9. First Industrial Realty Trust....................... 49,307,622 2.40
10. Liberty Property Trust.............................. 44,645,865 2.18
SECTOR BREAKDOWN
(Based on Managed Assets)
(Unaudited)
[CHART]
Other 9.00%
Mortgage 1.64%
Media 1.64%
Gas--Distribution 2.31%
Industrial 2.40%
Electric--Integrated 2.63%
Finance 4.94%
Diversified 5.26%
Bank 5.87%
Bank--Foreign 5.95%
Insurance 8.24%
Cash & Other Assets
in Excess of Liabilities 1.63%
Office 19.56%
Residential Apartment 10.04%
Shopping Center 9.68%
Health Care 9.21%
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD(a)
---------- -------------- ------------
COMMON STOCK 83.36%(b)
DIVERSIFIED 6.75%
Capital Trust -- Class A............. 97,400 $ 3,231,732 6.63%
Colonial Properties Trust............ 300,000 11,523,000 7.03
Crescent Real Estate Equities Co..... 1,064,000 17,385,760 9.18
iStar Financial...................... 990,000 40,768,200 7.12
Vornado Realty Trust................. 239,100 16,562,457 4.39
--------------
89,471,149
--------------
HEALTH CARE 12.45%
Health Care Property Investors(c).... 2,819,500 66,173,665 7.08
Healthcare Realty Trust.............. 199,200 7,258,848 7.14
Health Care REIT..................... 1,745,600 55,859,200 7.50
Nationwide Health Properties......... 1,362,200 27,530,062 7.32
Ventas............................... 335,000 8,361,600 5.77
--------------
165,183,375
--------------
HOTEL 2.02%
Hospitality Properties Trust......... 545,200 22,015,176 7.13
Strategic Hotel Capital.............. 323,800 4,759,860 5.99
--------------
26,775,036
--------------
INDUSTRIAL 3.72%
First Industrial Realty Trust........ 1,303,400 49,307,622 7.35
--------------
MORTGAGE 2.53%
Newcastle Investment Corp............ 1,135,074 33,598,190 8.45
--------------
-------------------
(a) Dividend yield is computed by dividing the security's current annual
dividend rate by the last sale price on the principal exchange, or market,
on which such security trades.
(b) Percentages indicated are based on the net assets applicable to common
shares of the fund.
(c) 75,000 shares segregated as collateral for interest rate swap transactions.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
OFFICE 24.37%
Arden Realty......................... 1,488,700 $ 50,392,495 5.97%
Brandywine Realty Trust.............. 787,800 22,373,520 6.20
CarrAmerica Realty Corp.............. 942,300 29,729,565 6.34
CRT Properties....................... 290,000 6,316,200 6.43
Equity Office Properties Trust....... 2,533,300 76,328,329 6.64
Highwoods Properties................. 910,200 24,411,564 6.34
HRPT Properties Trust................ 1,406,100 16,746,651 7.05
Mack-Cali Realty Corp................ 1,199,500 50,798,825 5.95
Maguire Properties................... 1,286,100 30,712,068 6.70
Prentiss Properties Trust............ 374,900 12,806,584 6.56
Reckson Associates Realty Corp....... 87,500 2,686,250 5.53
--------------
323,302,051
--------------
OFFICE/INDUSTRIAL 3.99%
Liberty Property Trust............... 1,143,300 44,645,865 6.25
Mission West Properties.............. 778,800 8,255,280 6.04
--------------
52,901,145
--------------
RESIDENTIAL -- APARTMENT 13.55%
AMLI Residential Properties Trust.... 590,400 16,171,056 7.01
Archstone-Smith Trust................ 1,941,500 66,224,565 5.04
Camden Property Trust................ 581,800 27,362,054 5.40
Education Realty Trust(a)............ 368,800 6,133,144 --
GMH Communities Trust................ 604,200 7,075,182 7.77
Gables Residential Trust............. 1,186,100 39,497,130 7.24
Mid-America Apartment Communities.... 349,000 12,738,500 6.41
Town & Country Trust................. 173,400 4,586,430 6.50
--------------
179,788,061
--------------
SELF STORAGE 1.08%
Sovran Self Storage.................. 222,200 8,805,786 6.11
U-Store-It Trust(a).................. 315,800 5,494,920 --
--------------
14,300,706
--------------
-------------
(a) Nonincome producing security.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
SHOPPING CENTER 12.90%
COMMUNITY CENTER 8.24%
Cedar Shopping Centers............... 400,000 $ 5,696,000 6.32%
Heritage Property Investment Trust... 2,002,300 59,428,264 7.08
New Plan Excel Realty Trust.......... 1,340,500 33,659,955 6.57
Ramco-Gershenson Properties Trust.... 390,000 10,588,500 6.45
--------------
109,372,719
--------------
REGIONAL MALL 4.66%
Glimcher Realty Trust................ 2,121,600 50,281,920 8.11
Macerich Co.......................... 215,200 11,465,856 4.88
--------------
61,747,776
--------------
TOTAL SHOPPING CENTER................ 171,120,495
--------------
TOTAL COMMON STOCK
(Identified
cost -- $916,539,030)......... 1,105,747,830
--------------
PREFERRED SECURITIES -- $25 PAR VALUE 26.34%
AUTOMOTIVE 0.26%
DaimlerChrysler, 7.25% (CBTCS)....... 26,008 642,658 7.34
DaimlerChrysler, 7.50% (CBTCS)....... 38,800 956,032 7.61
Ford Motor Co., 8.00% (CORTS)........ 80,000 1,907,200 8.39
--------------
3,505,890
--------------
BANK 2.64%
ASBC Capital I, 7.625%, Series A
(TOPrS)........................... 75,500 1,978,100 7.28
Cobank ACB, 7.00%, 144A(a)........... 200,000 10,476,000 6.68
Colonial Capital Trust IV, 7.875%.... 390,000 10,062,000 7.63
Countrywide Capital IV, 6.75%........ 71,100 1,786,032 6.73
First Republic Bank, 6.70%........... 200,000 5,060,000 6.65
Fleet Capital Trust VIII, 7.20%
Series............................ 87,900 2,268,699 6.97
HSBC USA, Series F................... 96,000 2,400,000 3.85
Old Second Bancorp Capital Trust I,
7.80%............................. 90,000 949,050 7.50
--------------
34,979,881
--------------
------------------
(a) The fund prices this security at fair value using procedures approved by
the fund's board of directors.
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
BANK -- FOREIGN 1.35%
Abbey National PLC, 7.375%, Series
B................................. 105,700 $ 2,822,190 6.91%
Abbey National PLC, 7.375%, Series
C................................. 493,264 12,923,517 7.05
Northern Rock, 8.00%, Series......... 30,000 752,589 7.97
Royal Bank of Scotland Group, 7.25%,
Series H.......................... 55,600 1,411,684 7.14
--------------
17,909,980
--------------
ELECTRIC -- INTEGRATED 1.49%
DTE Energy Trust II, 7.50%, due
6/01/44, Series................... 55,200 1,457,280 7.10
Energy East Capital Trust I, 8.25%... 61,000 1,598,200 7.87
Enterprise Capital Trust, 7.44%...... 116,000 2,905,800 7.43
NVP Capital III, 7.75%, due 9/30/38,
Series............................ 81,900 2,037,672 7.79
NVP Capital I, 8.20%, due 3/31/37,
Series A (QUIPS).................. 2,600 64,688 8.24
Northern States Power Co., 8.00%,
Notes (PINES)..................... 41,700 1,116,309 7.47
PSEG Funding Trust II, 8.75%
Series............................ 199,900 5,481,258 7.98
Puget Sound Energy Capital Trust II,
8.40% (TOPrS)..................... 70,800 1,811,772 8.21
Southern California Edison, 7.23%,
due 4/30/07, Series M............. 12,300 1,241,378 7.16
Virginia Power Capital Trust II,
7.375%, (TruPS)................... 79,761 2,085,750 7.05
--------------
19,800,107
--------------
FINANCE 1.38%
MBNA Capital, 8.125%, Series D
(TruPS)........................... 234,100 5,971,891 7.96
MBNA Capital, 8.10%, Series E
(TOPrs)........................... 166,300 4,293,866 7.84
Merrill Lynch & Co., Series 1
(FRN)............................. 320,000 8,102,400 3.59
--------------
18,368,157
--------------
GAS -- DISTRIBUTION 3.57%
Dominion CNG Capital, 8.40%.......... 78,700 2,054,070 7.47
Laclede Capital Trust I, 7.70%
(TOPrS)........................... 56,300 1,517,285 7.14
Southern Union Co., 7.55%, Series
C................................. 1,040,000 27,778,400 7.07
Southwest Gas Capital Trust II,
7.70%............................. 600,000 15,960,000 7.26
--------------
47,309,755
--------------
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
INSURANCE 2.85%
LIFE/HEALTH INSURANCE 0.20%
Lincoln National Capital V, 7.65%,
Series E (TruPS).................. 63,700 $ 1,635,816 7.45%
Torchmark Capital Trust I, 7.75%..... 41,000 1,065,590 7.45
--------------
2,701,406
--------------
MULTI-LINE 0.79%
ING Groep NV, 7.05% Series........... 241,600 6,199,456 6.87
ING Groep NV, 7.20% Series........... 165,700 4,281,688 6.97
--------------
10,481,144
--------------
PROPERTY/CASUALTY 1.01%
ACE Ltd., 7.80%, Series C............ 389,300 10,125,693 7.50
St. Paul Capital Trust I, 7.60%
(TruPS)........................... 125,130 3,198,323 7.43
--------------
13,324,016
--------------
REINSURANCE 0.17%
Everest Re Capital Trust II, 6.20%,
Series B.......................... 100,000 2,291,000 6.77
--------------
REINSURANCE -- FOREIGN 0.68%
PartnerRe Ltd., 6.75%, Series C...... 206,500 5,162,500 6.75
PartnerRe Ltd., 7.90%, Series D...... 54,000 1,333,800 6.58
RenaissanceRE Holdings Ltd., 8.10%,
Series A.......................... 30,900 805,872 7.76
RenaissanceRE Holdings Ltd., 7.30%,
Series B.......................... 65,900 1,700,220 7.07
--------------
9,002,392
--------------
TOTAL INSURANCE...................... 37,799,958
--------------
MEDIA 1.73%
CABLE TELEVISION 0.91%
Shaw Communications, 8.50%, Series B
(COPrS)........................... 479,700 12,054,861 8.46
--------------
DIVERSIFIED SERVICES 0.82%
AOL Time Warner, 7.625%, Series A-1
(CABCO)........................... 112,600 2,989,530 7.18
Liberty Media Corp., 8.75% (CBTCS)... 198,500 5,051,825 8.60
Liberty Media Corp., 8.75% (PPLUS)... 108,745 2,787,134 8.53
--------------
10,828,489
--------------
TOTAL MEDIA.......................... 22,883,350
--------------
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
OIL -- EXPLORATION 1.19%
Nexen, 7.35%, due 11/1/43,
Series B.......................... 608,660 $ 15,800,814 7.08%
--------------
REAL ESTATE 7.75%
DIVERSIFIED 1.39%
iStar Financial, 7.875%, Series E.... 400,000 10,168,000 7.74
iStar Financial, 7.80%, Series F..... 243,600 6,297,060 7.54
iStar Financial, 7.65%, Series G..... 80,000 2,010,400 7.59
--------------
18,475,460
--------------
HEALTH CARE 0.60%
Health Care REIT, 7.875%, Series D... 100,000 2,505,000 7.86
Health Care REIT, 7.625%, Series F... 10,000 250,000 7.62
Omega Healthcare Investors, 8.375%,
Series D.......................... 200,000 5,200,000 8.05
--------------
7,955,000
--------------
HOTEL 0.18%
Innkeepers USA Trust, 8.00%,
Series C.......................... 93,500 2,346,850 7.97
--------------
OFFICE 1.91%
Cousins Properties, 7.75%, Series
A................................. 457,500 11,551,875 7.67
Kilroy Realty Corp, 7.80%, Series
E................................. 100,000 2,515,000 7.75
Maguire Properties, 7.625%, Series
A................................. 288,900 7,179,165 7.67
SL Green Realty Corp., 7.625%, Series
C................................. 100,000 2,535,000 7.55
SL Green Realty Corp., 7.875%, Series
D................................. 60,000 1,510,200 7.82
--------------
25,291,240
--------------
RESIDENTIAL -- APARTMENT 1.98%
Apartment Investment and Management
Co., 8.00%, Series T.............. 93,700 2,315,327 8.09
Apartment Investment and Management
Co., 8.00%, Series V.............. 101,000 2,519,950 8.02
Apartment Investment & Management
Co., 7.875%, Series Y............. 110,000 2,722,500 7.95
Associated Estates Realty Corp.,
8.70%, Series B................... 40,000 1,024,000 8.50
Mid-America Apartment Communities,
8.30%, Series H................... 690,600 17,748,420 8.07
--------------
26,330,197
--------------
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13
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
SHOPPING CENTER 1.69%
COMMUNITY CENTER 0.30%
Developers Diversified Realty Corp.,
7.50%, Series I................... 47,800 $ 1,205,038 7.44%
Developers Diversified Realty Corp.,
8.00%, Series G................... 38,700 999,621 7.74
Saul Centers, 8.00%, Series A........ 69,400 1,759,984 7.89
--------------
3,964,643
--------------
REGIONAL MALL 1.39%
Glimcher Realty Trust, 8.75%, Series
F................................. 279,300 7,261,800 8.41
Glimcher Realty Trust, 8.125%, Series
G................................. 240,000 6,024,000 8.09
Mills Corp., 8.75%, Series E......... 197,600 5,161,312 8.37
--------------
18,447,112
--------------
TOTAL SHOPPING CENTER................ 22,411,755
--------------
TOTAL REAL ESTATE............... 102,810,502
--------------
TELECOMMUNICATION SERVICES 2.13%
Centaur Funding Corp., 9.08%(a)...... 13,908 17,851,210 7.07
Telephone & Data Systems, 7.60%,
Series A.......................... 197,800 5,059,724 7.43
United States Cellular Corp., 7.50%,
due 6/15/34, Series............... 201,500 5,275,270 7.16
Verizon South, 7.00%, Series F....... 3,300 84,018 6.87
--------------
28,270,222
--------------
TOTAL PREFERRED SECURITIES --$25
PAR VALUE (Identified
cost -- $343,899,156)......... 349,438,616
--------------
--------------
(a) The fund prices this security at fair value using procedures approved by the
fund's board of directors.
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14
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
PREFERRED SECURITIES -- CAPITAL TRUST 34.12%
BANK 6.45%
AgFirst Farm Credit Bank, 7.30%,
due 10/14/49, 144A................ 29,100,000 $ 30,558,376 6.95%
Astoria Capital Trust I, 9.75%, due
11/1/29, Series B................. 13,500,000 16,140,600 8.15
BankBoston Capital Trust II, 7.75%,
due 12/15/26...................... 1,500,000 1,604,948 7.24
BT Preferred Capital Trust II,
7.875%, due 2/25/27............... 1,000,000 1,089,923 7.23
First Tennessee Bank, Series 144A.... 2,000 2,005,000 0.10
Great Western Financial Trust II,
8.206%, due 2/1/27, Series A...... 2,232,000 2,440,085 7.51
Roslyn Preferred Trust FRN, 4.78%,
due 4/1/32, 144A.................. 10,000,000 10,050,000 5.74
Roslyn Real Estate Asset Corp. FRN,
4.813%, due 9/30/08, Series D..... 100 10,075,000 6.15
Sky Financial Capital Trust I, 9.75%,
due 5/1/30, Series B.............. 3,000,000 3,554,100 7.88
Webster Capital Trust I, 9.36%, due
1/29/27, 144A..................... 7,300,000 8,079,669 8.46
--------------
85,597,701
--------------
BANK -- FOREIGN 7.86%
BNP Paribas Capital Trust V, 7.20%... 19,550,000 20,088,172 7.01
CA Preferred Fund Trust, 7.00%
(Eurobond)........................ 25,200,000 25,797,492 6.84
HBOS Capital Funding LP, 6.85%....... 23,000,000 23,464,830 6.71
HSBC Capital Funding LP, 10.176%..... 9,680,000 14,915,718 6.60
RBS Capital Trust B, 6.80%........... 19,700,000 20,032,733 6.69
--------------
104,298,945
--------------
ELECTRIC -- INTEGRATED 2.58%
Dominion Resources Capital Trust III,
8.40%, due 1/15/31................ 21,732,000 27,704,453 6.59
DPL Capital Trust, 8.125%, due
9/1/31............................ 3,000,000 3,472,260 7.02
Enterprise Capital Trust II, due
6/30/28, Series B................. 3,000,000 2,986,815 3.80
--------------
34,163,528
--------------
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15
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
FINANCE 4.92%
CREDIT CARD 0.51%
MBNA Capital, 8.278%, due 12/1/26,
Series A.......................... 6,200,000 $ 6,760,127 7.59%
--------------
DIVERSIFIED FINANCIAL SERVICES 2.33%
Old Mutual Capital Funding, 8.00%,
due 5/29/49 (Eurobond)............ 29,950,000 30,946,826 7.74
--------------
INVESTMENT BANKER/BROKER 1.04%
Chase Capital I, 7.67%, due
12/1/06........................... 2,519,000 2,708,056 7.13
JPM Capital Trust I, 7.54%, due
1/15/27........................... 3,925,000 4,232,751 6.99
JPM Capital Trust II, 7.95%, due
2/27/07........................... 6,400,000 6,892,909 7.38
--------------
13,833,716
--------------
MORTGAGE LOAN/BROKER 1.04%
Countrywide Capital III, 8.05%, due
6/15/27, Series B (SKIS).......... 11,285,000 13,718,170 6.62
--------------
TOTAL FINANCE........................ 65,258,839
--------------
FOOD 1.61%
Dairy Farmers of America, 7.875%,
144A(a)........................... 135,000 13,708,170 7.76
Gruma S.A., 7.75%, due 12/29/49,
144A(a)........................... 8,000,000 7,658,152 8.10
--------------
21,366,322
--------------
INSURANCE 7.91%
LIFE/HEALTH 0.34%
AmerUS Capital, 8.85%, due 2/1/27,
Series A.......................... 4,000,000 4,463,040 7.93
--------------
MULTI-LINE 6.55%
AFC Capital Trust I, 8.207%, due
02/03/27, Series B................ 15,750,000 16,809,125 7.69
AXA, 7.10%, due 5/29/49 (Eurobond)... 26,500,000 27,306,925 6.89
GenAmerica Capital I, 8.525%, due
6/30/27........................... 14,000,000 15,471,806 7.71
USF&G Capital, 8.312%, due 7/1/46.... 3,845,000 4,588,696 6.96
Zurich Capital Trust I, 8.376%, due
6/1/37............................ 20,712,000 22,655,262 7.66
--------------
86,831,814
--------------
-----------
(a) The fund prices this security at fair value using procedures approved by
the fund's board of directors.
--------------------------------------------------------------------------------
16
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
---------- -------------- -----
PROPERTY/CASUALTY 1.02%
W.R. Berkley Capital Trust, 8.197%,
due 12/15/45...................... 13,100,000 $ 13,583,744 7.91%
--------------
TOTAL INSURANCE...................... 104,878,598
--------------
OIL COMPANY -- EXPLORATION AND
PRODUCTION 0.83%
Pemex Project Funding Master Trust,
7.75%, due 9/29/49................ 11,000,000 10,932,229 7.80
--------------
PIPELINES 1.96%
K N Capital Trust I, 8.56%, due
4/15/27 (TruPS)................... 9,513,000 10,657,052 7.64
K N Capital Trust III, 7.63%, due
4/15/28 (TruPS)................... 13,330,000 15,395,710 6.61
--------------
26,052,762
--------------
TOTAL PREFERRED SECURITIES --
CAPITAL TRUST (Identified
cost -- $439,585,577)......... 452,548,924
--------------
PRINCIPAL
AMOUNT
-----------
CORPORATE BOND 8.39%
AUTOMOTIVE 1.81%
Ford Motor Co., 9.98%, due
2/15/47.......................... $13,400,000 14,763,919
General Motors Corp., 7.375%, due
5/23/48.......................... 11,377,000 9,173,082
--------------
23,937,001
--------------
CELLULAR TELECOMMUNICATIONS 0.08%
Rogers Wireless Communications,
8.00%, due 12/15/12, 144A........ 1,000,000 1,032,500
--------------
INSURANCE 1.98%
Liberty Mutual Insurance, 7.697%,
due 10/15/97..................... 16,730,000 17,894,977
Oil Casualty Insurance, 8.00%,
due 9/15/34, 144A................ 8,000,000 8,382,392
--------------
26,277,369
--------------
INVESTMENT BANKER/BROKER 1.33%
NBP Capital Trust III, 7.375%, due
10/29/49......................... 16,900,000 17,697,122
--------------
--------------------------------------------------------------------------------
17
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
----------- --------------
MEDIA 0.82%
Liberty Media Corp., 8.25%, due
2/1/30............................. $ 7,250,000 $ 7,371,227
Rogers Cable, 8.75%, due 5/1/32....... 3,000,000 3,495,000
--------------
10,866,227
--------------
MEDICAL -- HOSPITALS 1.20%
Columbia/HCA, 7.50%, due 11/15/95..... 16,534,000 15,946,778
--------------
REAL ESTATE
0.39%
BF Saul Real Estate Investment Trust,
7.50%, due 3/1/14, 144A............ 5,000,000 5,212,500
--------------
TELEPHONE -- INTEGRATED 0.78%
Citizens Communications Co., 9.00%,
due 8/15/31........................ 9,925,000 10,371,625
--------------
TOTAL CORPORATE BOND
(Identified cost --
$112,185,205).................. 111,341,122
--------------
COMMERCIAL PAPER 0.14%
Prudential FDG Corp., 2.12%, due
04/01/05 (Identified cost --
$1,860,000)........................ 1,860,000 1,860,000
--------------
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18
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
VALUE
--------------
TOTAL INVESTMENTS (Identified
cost -- $1,814,002,086)............................ 152.35% $2,020,936,492(a)
OTHER ASSETS IN EXCESS OF LIABILITIES................ 2.38% 31,524,609
LIQUIDATION VALUE OF AUCTION MARKET PREFERRED SHARES:
SERIES M7, SERIES T7, SERIES W7, SERIES F7
(Equivalent to $25,000 per share based on 3,280
shares outstanding per class), SERIES TH7
(Equivalent to $25,000 per share based on 5,480
shares outstanding), SERIES W28A, SERIES W28B,
SERIES W28C (Equivalent to $25,000 per share based
on 2,800 shares outstanding per class), AND
SERIES TH28 (Equivalent to $25,000 per share based
on 2,040 shares outstanding)....................... (54.73%) (726,000,000)
------ --------------
NET ASSETS APPLICABLE TO COMMON SHARES (Equivalent to
$27.49 per share based on 48,251,666 shares of
capital stock outstanding)......................... 100.00% $1,326,461,101
------ --------------
------ --------------
GLOSSARY OF PORTFOLIO ABBREVIATIONS
CABCO Corporate Asset Backed Corporation
CBTCS Corporate Backed Trust Certificates
COPrS Canadian Origin Preferred Securities
CORTS Corporate Backed Trust Securities
FRN Floating Rate Note
PINES Public Income Notes
PPLUS Preferred Plus Trust
QUIPS Quarterly Income Preferred Securities
SKIS Subordinated Capital Income Securities
TOPrS Trust Originated Preferred Securities
TruPS Trust Preferred Securities
-------------------
(a) At March 31, 2005, net unrealized appreciation was $206,934,406 based on
cost for federal income tax purposes of $1,814,002,086. This consisted of
aggregate gross unrealized appreciation on investments of $212,791,160
and aggregate gross unrealized depreciation on investments of $5,856,754.
--------------------------------------------------------------------------------
19
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
MARCH 31, 2005 (UNAUDITED)
NOTE 1. INVESTMENTS IN INTEREST RATE SWAPS
The fund has entered into interest rate swap agreements with Merrill Lynch
Derivative Products AG, UBS AG, and Royal Bank of Canada. Under the agreements
the fund receives a floating rate and pays a respective fixed rate. The fund has
segregated 75,000 shares of Health Care Property Investors as collateral for the
interest rate swap transactions. Details of the swaps at March 31, 2005 are as
follows:
NOTIONAL FLOATING RATE(a) UNREALIZED
COUNTERPARTY AMOUNT FIXED RATE (RESET MONTHLY) TERMINATION DATE APPRECIATION
------------------------------- ----------- ---------- --------------- ------------------ --------------
Merrill Lynch Derivative
Products AG.................. $43,625,000 3.3200% 2.850% October 22, 2007 $ 964,517
Merrill Lynch Derivative
Products AG.................. $58,500,000 3.2075% 2.716% October 2, 2008 2,208,310
Merrill Lynch Derivative
Products AG.................. $20,000,000 3.4100% 2.800% January 13, 2009 693,852
Royal Bank of Canada........... $58,125,000 3.3980% 2.850% August 25, 2007 1,043,532
Royal Bank of Canada........... $43,250,000 3.4520% 2.820% September 16, 2008 1,247,229
UBS AG......................... $58,125,000 2.8325% 2.850% August 25, 2006 852,341
UBS AG......................... $58,125,000 3.9900% 1.840% August 25, 2009 1,080,059
UBS AG......................... $58,125,000 4.3975% 2.850% August 25, 2010 395,467
UBS AG......................... $58,125,000 4.5950% 2.850% August 25, 2011 57,768
----------
$8,543,075
----------
----------
-------------------
(a) Based on LIBOR (London Interbank Offered Rate). Represents rates in effect
at March 31, 2005.
--------------------------------------------------------------------------------
20
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COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
FINANCIAL HIGHLIGHTS(a)
MARCH 31, 2005 (UNAUDITED)
NET ASSET VALUE
TOTAL NET ASSETS PER SHARE
------------------------------ ---------------
NET ASSET VALUE:
Beginning of period: 12/31/04............ $1,452,986,456 $30.11
Net investment income................ $ 21,244,412 $ 0.43
Net realized and unrealized loss on
investments and interest rate swap
transactions...................... (114,696,248) (2.36)
Distributions from net investment income
to:
Common shareholders.................. (28,227,225) (0.59)
Preferred shareholders............... (4,846,294) (0.10)
------------- ------
Net decrease in net asset value.......... (126,525,355) (2.62)
-------------- ------
End of period: 3/31/2005................. $1,326,461,101 $27.49
-------------- ------
-------------- ------
-------------------
(a) Financial information included in this report has been taken from the
records of the fund without examination by independent accountants.
--------------------------------------------------------------------------------
21
--------------------------------------------------------------------------------
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
AVERAGE ANNUAL TOTAL RETURNS
(PERIOD ENDED MARCH 31, 2005) (UNAUDITED)
BASED ON NET ASSET VALUE BASED ON MARKET PRICE
----------------------------------- -----------------------------------
SINCE INCEPTION SINCE INCEPTION
ONE YEAR (6/27/03) ONE YEAR (6/27/03)
-------- --------- -------- ---------
3.28% 17.42% 1.37% 8.26%
The performance data quoted represent past performance. Past performance is no
guarantee of future results. The rate of return will vary and the principal
value of an investment will fluctuate and shares, if sold, may be worth more or
less than their original cost. Current performance may be lower or higher than
the performance data quoted.
REINVESTMENT PLAN
We urge shareholders who want to take advantage of this plan and whose
shares are held in 'Street Name' to consult your broker as soon as possible to
determine if you must change registration into your own name to participate.
OTHER INFORMATION
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the fund may purchase, from time to time, shares of its
common stock in the open market.
A description of the policies and procedures that the fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-330-7348, (ii) on our Web site at
cohenandsteers.com, or (iii) on the Securities and Exchange Commission's (SEC)
Web site at http://www.sec.gov. In addition, the fund's proxy voting record for
the most recent 12-month period ended June 30 is available (i) without charge
upon request, by calling 1-800-330-7348, or (ii) on the SEC's Web site at
http://www.sec.gov.
The fund files its complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The fund's Forms
N-Q are available (ii) without charge, upon request by calling 1-800-330-7348,
or (ii) on the SEC's website at http://www.sec.gov. In addition, the Forms N-Q
may be reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
Please note that the distributions paid by the fund to shareholders are
subject to recharacterization for tax purposes. The final tax treatment of these
distributions is reported to shareholders on their 1099-DIV forms, which are
mailed to shareholders after the close of each fiscal year. As noted in the
shareholder letter, the fund has adopted a level rate distribution policy. Under
this policy, the fund will pay distributions in excess of the fund's net
investment company taxable income and this excess will be a tax-free return of
capital distributed from the fund's assets. The fund's shareholders of record
will be notified of the estimated amount of capital returned to shareholders for
each distribution and this information will also be available at
cohenandsteers.com. Distributions
--------------------------------------------------------------------------------
22
--------------------------------------------------------------------------------
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
of capital decrease the fund's total assets and, therefore, could have the
effect of increasing the fund's expense ratio. In addition, in order to make
these distributions, the fund may have to sell portfolio securities at a less
than opportune time.
PRIVACY POLICY *
In the course of doing business with Cohen & Steers, you may share personal
information with us. We are committed to maintaining the privacy of this
information and recognize the importance of preventing unauthorized access to
it. You may provide personal information on account applications and requests
for forms or other literature (such as your address and social security number)
and through account transactions with us (such as purchases, sales and account
balances). You may also provide us with this information through written,
electronic and telephone account inquiries.
We do not sell personal information about current and former customers to
anyone, and we do not disclose it unless necessary to process a transaction,
service an account or as otherwise required or permitted by law. For example, we
may disclose information to companies that perform administrative or marketing
services for Cohen & Steers, such as transfer agents, or printers that assist us
in the distribution of investor materials. These organizations will use this
information only for purposes of providing the required services or as otherwise
may be required by law. We may also share personal information within the Cohen
& Steers family of companies to provide you with additional information about
our products and services.
We maintain physical, electronic and procedural safeguards to protect your
personal information. Within Cohen & Steers, we restrict access to your personal
information to those employees who need it to perform their jobs, such as
servicing your account or informing you of new products and services.
The accuracy of your personal information is important. If you need to
correct or update your personal or account information, please call us at
800-330-7348. We will be happy to review, correct or update your personal or
account information.
-------------------
* This privacy policy applies to the following Cohen & Steers companies: Cohen &
Steers Capital Management, Inc., Cohen & Steers Securities, LLC, Cohen &
Steers Capital Advisors, LLC and the Cohen & Steers Funds.
--------------------------------------------------------------------------------
23
--------------------------------------------------------------------------------
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
MEET THE COHEN & STEERS FAMILY OF OPEN-END FUNDS:
FOR TOTAL RETURN: FOR TOTAL RETURN:
COHEN & STEERS COHEN & STEERS
---------------- ------------------
REALTY SHARES INSTITUTIONAL REALTY SHARES
DESIGNED FOR INVESTORS SEEKING MAXIMUM TOTAL DESIGNED FOR INSTITUTIONAL INVESTORS SEEKING
RETURN, INVESTING PRIMARILY IN REITS MAXIMUM TOTAL RETURN, INVESTING PRIMARILY IN
SYMBOL: CSRSX REITS
SYMBOL: CSRIX
FOR HIGH CURRENT INMCOME: FOR CAPITAL APPRECIATION:
COHEN & STEERS COHEN & STEERS
---------------- ------------------
REALTY INCOME FUND REALTY FOCUS FUND
DESIGNED FOR INVESTORS SEEKING HIGH CURRENT DESIGNED FOR INVESTORS SEEKING MAXIMUM CAPITAL
INCOME, INVESTING PRIMARILY IN REITS APPRECIATION, INVESTING IN A LIMITED NUMBER OF
SYMBOLS: CSEIX, CSBIX, CSCIX, CSDIX REITS AND OTHER REAL ESTATE SECURITIES
SYMBOLS: CSFAX, CSFBX, CSFCX, CSSPX
FOR TOTAL RETURN: FOR TOTAL RETURN:
COHEN & STEERS COHEN & STEERS
---------------- ------------------
INTERNATIONAL REALTY FUND UTILITY FUND
DESIGNED FOR INVESTORS SEEKING MAXIMUM TOTAL DESIGNED FOR INVESTORS SEEKING MAXIMUM TOTAL
RETURN, INVESTING PRIMARILY IN INTERNATIONAL RETURN, INVESTING PRIMARILY IN UTILITIES
REAL ESTATE SECURITIES SYMBOLS: CSUAX, CSUBX, CSUCX, CSUIX
SYMBOLS: IRFAX, IRFCX, IRFIX
FOR MORE INFORMATION ABOUT ANY COHEN & STEERS FUND
OR TO OBTAIN A PROSPECTUS PLEASE CONTACT US AT:
1-800-330-7348, OR VISIT OUR WEB SITE AT COHENANDSTEERS.COM
PLEASE CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE
FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION ABOUT THE FUND.
PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
--------------------------------------------------------------------------------
24
--------------------------------------------------------------------------------
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
OFFICERS AND DIRECTORS KEY INFORMATION
Robert H. Steers INVESTMENT MANAGER
Director and chairman Cohen & Steers Capital Management, Inc.
757 Third Avenue
Martin Cohen New York, NY 10017
Director and president (212) 832-3232
Bonnie Cohen FUND SUBADMINISTRATOR AND CUSTODIAN
Director State Street Bank and Trust Company
225 Franklin Street
George Grossman Boston, MA 02110
Director
TRANSFER AGENT -- COMMON SHARES
Richard E. Kroon Equiserve Trust Company
Director 250 Royall Street
Canton, MA 02021
Richard J. Norman (800) 426-5523
Director
TRANSFER AGENT -- PREFERRED SHARES
Frank K. Ross The Bank of New York
Director 100 Church Street
New York, NY 10007
Willard H. Smith Jr.
Director LEGAL COUNSEL
Simpson Thacher & Bartlett LLP
C. Edward Ward, Jr. 425 Lexington Avenue
Director New York, NY 10017
Adam Derechin New York Stock Exchange Symbol: RNP
Vice president and assistant treasurer Web site: cohenandsteers.com
Joseph M. Harvey This report is for shareholder information. This is not
Vice president a prospectus intended for use in the purchase or sale
of fund shares. Past performance is of course no
William F. Scapell guarantee of future results and your investment may
Vice president be worth more or less at the time you sell.
Lawrence B. Stoller
Assistant secretary
--------------------------------------------------------------------------------
25
COHEN & STEERS
----------------
REIT AND PREFERRED INCOME FUND
----------------------------
QUARTERLY REPORT
MARCH 31, 2005
COHEN & STEERS
REIT AND PREFERRED INCOME FUND
757 THIRD AVENUE
NEW YORK, NY 10017
ANNOUNCING OUR NEW OPEN-END FUND, COHEN & STEERS INTERNATIONAL REALTY FUND