UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
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Investment Company Act file number |
811-21326 | |||||||
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Cohen & Steers REIT and Preferred Income Fund, Inc. | ||||||||
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(Exact name of registrant as specified in charter) | ||||||||
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280 Park Avenue New York, NY |
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10017 | ||||||
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(Address of principal executive offices) |
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(Zip code) | ||||||
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Tina M. Payne 280 Park Avenue New York, NY 10017 | ||||||||
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(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: |
(212) 832-3232 |
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Date of fiscal year end: |
December 31 |
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Date of reporting period: |
September 30, 2014 |
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Item 1. Schedule of Investments
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
September 30, 2014 (Unaudited)
|
|
|
Number |
|
Value |
| |
|
COMMON STOCK —REAL ESTATE 67.4% |
|
|
|
|
| |
|
DIVERSIFIED 4.0% |
|
|
|
|
| |
|
American Assets Trust(a) |
|
175,367 |
|
$ |
5,781,850 |
|
|
Forest City Enterprises, Class A(a),(b),(c) |
|
235,858 |
|
4,613,382 |
| |
|
Gramercy Property Trust |
|
725,502 |
|
4,178,891 |
| |
|
Vornado Realty Trust(a),(b) |
|
237,653 |
|
23,755,794 |
| |
|
|
|
|
|
38,329,917 |
| |
|
|
|
|
|
|
| |
|
FREE STANDING 0.7% |
|
|
|
|
| |
|
American Realty Capital Properties(a),(b) |
|
528,094 |
|
6,368,814 |
| |
|
|
|
|
|
|
| |
|
HEALTH CARE 5.0% |
|
|
|
|
| |
|
Aviv REIT(a),(b) |
|
343,669 |
|
9,055,678 |
| |
|
Health Care REIT(a) |
|
154,872 |
|
9,659,367 |
| |
|
Ventas(a),(b) |
|
457,539 |
|
28,344,541 |
| |
|
|
|
|
|
47,059,586 |
| |
|
|
|
|
|
|
| |
|
HOTEL 6.2% |
|
|
|
|
| |
|
Belmond Ltd., Class A (Bermuda)(c) |
|
245,494 |
|
2,862,460 |
| |
|
Chatham Lodging Trust(a) |
|
263,592 |
|
6,083,703 |
| |
|
Hilton Worldwide Holdings(c) |
|
251,681 |
|
6,198,903 |
| |
|
Host Hotels & Resorts(a),(b) |
|
779,369 |
|
16,623,941 |
| |
|
Strategic Hotels & Resorts(a),(b),(c) |
|
1,229,556 |
|
14,324,327 |
| |
|
Sunstone Hotel Investors(a),(b) |
|
913,025 |
|
12,618,006 |
| |
|
|
|
|
|
58,711,340 |
| |
|
|
|
|
|
|
| |
|
INDUSTRIALS 4.4% |
|
|
|
|
| |
|
First Industrial Realty Trust(a),(b) |
|
174,616 |
|
2,952,757 |
| |
|
Prologis(a),(b) |
|
734,022 |
|
27,672,629 |
| |
|
Rexford Industrial Realty |
|
388,613 |
|
5,378,404 |
| |
|
STAG Industrial |
|
279,672 |
|
5,792,007 |
| |
|
|
|
|
|
41,795,797 |
| |
|
|
|
|
|
|
| |
|
OFFICE 13.9% |
|
|
|
|
| |
|
BioMed Realty Trust(a) |
|
678,504 |
|
13,705,781 |
| |
|
Boston Properties(a),(b) |
|
73,652 |
|
8,525,955 |
| |
|
Brandywine Realty Trust(a) |
|
685,266 |
|
9,641,693 |
| |
|
Corporate Office Properties Trust(a),(b) |
|
243,644 |
|
6,266,524 |
| |
|
Cousins Properties(a) |
|
313,664 |
|
3,748,285 |
| |
|
Douglas Emmett(a),(b) |
|
382,532 |
|
9,819,596 |
| |
|
Empire State Realty Trust, Class A(a) |
|
435,908 |
|
6,547,338 |
| |
|
Equity Commonwealth(a) |
|
282,267 |
|
7,257,085 |
| |
|
|
|
Number |
|
Value |
| |
|
Hudson Pacific Properties(a),(b) |
|
291,826 |
|
$ |
7,196,429 |
|
|
Kilroy Realty Corp.(a) |
|
209,873 |
|
12,474,851 |
| |
|
Liberty Property Trust |
|
252,105 |
|
8,385,012 |
| |
|
Mack-Cali Realty Corp. |
|
128,090 |
|
2,447,800 |
| |
|
Parkway Properties(a) |
|
620,448 |
|
11,652,013 |
| |
|
PS Business Parks(a) |
|
39,311 |
|
2,993,140 |
| |
|
SL Green Realty Corp.(a),(b) |
|
211,606 |
|
21,439,920 |
| |
|
|
|
|
|
132,101,422 |
| |
|
|
|
|
|
|
| |
|
RESIDENTIAL 11.7% |
|
|
|
|
| |
|
APARTMENT 11.2% |
|
|
|
|
| |
|
American Homes 4 Rent, Class A(a),(b) |
|
745,738 |
|
12,595,515 |
| |
|
Apartment Investment & Management Co.(a),(b) |
|
264,535 |
|
8,417,504 |
| |
|
AvalonBay Communities(a) |
|
65,019 |
|
9,165,728 |
| |
|
Equity Residential(a),(b) |
|
649,605 |
|
40,002,676 |
| |
|
Essex Property Trust(a) |
|
88,991 |
|
15,907,141 |
| |
|
Home Properties |
|
131,837 |
|
7,678,187 |
| |
|
UDR(a),(b) |
|
457,764 |
|
12,474,069 |
| |
|
|
|
|
|
106,240,820 |
| |
|
|
|
|
|
|
| |
|
MANUFACTURED HOME 0.5% |
|
|
|
|
| |
|
Sun Communities |
|
101,247 |
|
5,112,973 |
| |
|
TOTAL RESIDENTIAL |
|
|
|
111,353,793 |
| |
|
|
|
|
|
|
| |
|
SELF STORAGE 4.9% |
|
|
|
|
| |
|
CubeSmart(a),(b) |
|
327,876 |
|
5,895,211 |
| |
|
Extra Space Storage(a) |
|
154,860 |
|
7,986,130 |
| |
|
Public Storage(a),(b) |
|
139,559 |
|
23,144,465 |
| |
|
Sovran Self Storage(a),(b) |
|
131,376 |
|
9,769,119 |
| |
|
|
|
|
|
46,794,925 |
| |
|
|
|
|
|
|
| |
|
SHOPPING CENTERS 16.1% |
|
|
|
|
| |
|
COMMUNITY CENTER 6.8% |
|
|
|
|
| |
|
Brixmor Property Group(a) |
|
349,818 |
|
7,786,949 |
| |
|
Kimco Realty Corp.(a),(b) |
|
809,291 |
|
17,731,566 |
| |
|
Ramco-Gershenson Properties Trust(a),(b) |
|
557,383 |
|
9,057,474 |
| |
|
Regency Centers Corp.(a),(b) |
|
249,571 |
|
13,434,407 |
| |
|
Washington Prime Group(a),(b) |
|
369,230 |
|
6,454,140 |
| |
|
Weingarten Realty Investors(a),(b) |
|
317,235 |
|
9,992,902 |
| |
|
|
|
|
|
64,457,438 |
| |
|
|
|
|
|
|
| |
|
FREE STANDING 0.5% |
|
|
|
|
| |
|
Spirit Realty Capital |
|
402,766 |
|
4,418,343 |
| |
|
|
|
Number |
|
Value |
| |
|
REGIONAL MALL 8.8% |
|
|
|
|
| |
|
General Growth Properties(a),(b) |
|
848,132 |
|
$ |
19,973,509 |
|
|
Glimcher Realty Trust(a) |
|
290,749 |
|
3,936,741 |
| |
|
Macerich Co. (The)(a),(b) |
|
103,804 |
|
6,625,809 |
| |
|
Pennsylvania REIT |
|
233,298 |
|
4,651,962 |
| |
|
Simon Property Group(a),(b) |
|
294,249 |
|
48,380,421 |
| |
|
|
|
|
|
83,568,442 |
| |
|
TOTAL SHOPPING CENTERS |
|
|
|
152,444,223 |
| |
|
|
|
|
|
|
| |
|
SPECIALTY 0.5% |
|
|
|
|
| |
|
CyrusOne(a) |
|
203,388 |
|
4,889,448 |
| |
|
TOTAL COMMON STOCK (Identified cost—$478,643,884) |
|
|
|
639,849,265 |
| |
|
|
|
|
|
|
| |
|
PREFERRED SECURITIES—$25 PAR VALUE 25.8% |
|
|
|
|
| |
|
BANKS 8.4% |
|
|
|
|
| |
|
AgriBank FCB, 6.875%, ($100 Par Value) |
|
38,000 |
|
4,061,250 |
| |
|
Citigroup, 6.875%, Series K |
|
152,243 |
|
4,010,081 |
| |
|
CoBank ACB, 6.25%, 144A ($100 Par Value)(a),(d) |
|
33,000 |
|
3,483,562 |
| |
|
CoBank ACB, 6.125%, Series G ($100 Par Value) |
|
46,500 |
|
4,202,437 |
| |
|
Countrywide Capital IV, 6.75%, due 4/1/33(a),(b) |
|
238,687 |
|
6,084,132 |
| |
|
Countrywide Capital V, 7.00%, due 11/1/36(a) |
|
262,112 |
|
6,736,278 |
| |
|
Farm Credit Bank of Texas, 6.75%, 144A(a),(d) |
|
63,000 |
|
6,622,875 |
| |
|
Fifth Third Bancorp, 6.625%, Series I |
|
194,842 |
|
5,153,571 |
| |
|
Huntington Bancshares, 8.50%, Series A ($1,000 Par Value)(Convertible)(a) |
|
3,212 |
|
4,239,840 |
| |
|
PNC Financial Services Group, 6.125%, Series P(a) |
|
192,500 |
|
5,257,175 |
| |
|
RBS Capital Funding Trust VII, 6.08%, Series G |
|
140,000 |
|
3,344,600 |
| |
|
Regions Financial Corp., 6.375%, Series B |
|
256,532 |
|
6,510,782 |
| |
|
SunTrust Banks, 5.875%, Series E |
|
100,000 |
|
2,305,000 |
| |
|
US Bancorp, 6.50%, Series F(a) |
|
78,991 |
|
2,265,462 |
| |
|
Wells Fargo & Co., 5.85% |
|
339,617 |
|
8,704,384 |
| |
|
Wells Fargo & Co., 6.625% |
|
46,774 |
|
1,293,301 |
| |
|
Zions Bancorp, 7.90%, Series F(a) |
|
120,959 |
|
3,386,852 |
| |
|
Zions Bancorp, 6.30%, Series G |
|
85,441 |
|
2,165,075 |
| |
|
|
|
|
|
79,826,657 |
| |
|
|
|
|
|
|
| |
|
BANKS—FOREIGN 1.4% |
|
|
|
|
| |
|
Barclays Bank PLC, 7.75%, Series IV (United Kingdom) |
|
100,000 |
|
2,586,000 |
| |
|
Barclays Bank PLC, 8.125%, Series V (United Kingdom)(a) |
|
250,000 |
|
6,492,500 |
| |
|
|
|
Number |
|
Value |
| |
|
National Westminster Bank PLC, 7.76%, Series C (United Kingdom)(a) |
|
172,192 |
|
$ |
4,456,329 |
|
|
|
|
|
|
13,534,829 |
| |
|
|
|
|
|
|
| |
|
DIVERSIFIED FINANCIAL SERVICES 0.2% |
|
|
|
|
| |
|
State Street Corp., 5.90%, Series D |
|
77,730 |
|
1,993,775 |
| |
|
|
|
|
|
|
| |
|
ELECTRIC—INTEGRATED 0.5% |
|
|
|
|
| |
|
Integrys Energy Group, 6.00%, due 8/1/73(e) |
|
181,652 |
|
4,657,557 |
| |
|
NextEra Energy Capital Holdings, 5.70%, due 3/1/72, Series G |
|
3,985 |
|
96,238 |
| |
|
|
|
|
|
4,753,795 |
| |
|
|
|
|
|
|
| |
|
FINANCE—INVESTMENT BANKER/BROKER 1.8% |
|
|
|
|
| |
|
Goldman Sachs Group, 5.95%, Series I |
|
81,666 |
|
1,968,150 |
| |
|
Goldman Sachs Group, 6.375%, Series K |
|
197,505 |
|
5,002,802 |
| |
|
Morgan Stanley, 6.875%(a) |
|
339,231 |
|
8,864,106 |
| |
|
Morgan Stanley, 6.375%, Series I |
|
49,340 |
|
1,236,954 |
| |
|
|
|
|
|
17,072,012 |
| |
|
|
|
|
|
|
| |
|
INDUSTRIALS—CHEMICALS 1.3% |
|
|
|
|
| |
|
CHS, 6.75% |
|
208,000 |
|
5,301,920 |
| |
|
CHS, 7.10%, Series II(a) |
|
260,000 |
|
6,916,000 |
| |
|
|
|
|
|
12,217,920 |
| |
|
|
|
|
|
|
| |
|
INSURANCE 4.1% |
|
|
|
|
| |
|
LIFE/HEALTH INSURANCE 0.2% |
|
|
|
|
| |
|
Principal Financial Group, 6.518%, Series B (FRN) |
|
72,226 |
|
1,838,874 |
| |
|
|
|
|
|
|
| |
|
MULTI-LINE 1.5% |
|
|
|
|
| |
|
Hanover Insurance Group/The, 6.35%, due 3/30/53 |
|
78,400 |
|
1,888,656 |
| |
|
Hartford Financial Services Group, 7.875%, due 4/15/42(a) |
|
213,052 |
|
6,304,209 |
| |
|
Kemper Corp., 7.375%, due 2/27/54 |
|
114,350 |
|
2,921,642 |
| |
|
WR Berkley Corp., 5.625%, due 4/30/53 |
|
132,737 |
|
3,095,427 |
| |
|
|
|
|
|
14,209,934 |
| |
|
|
|
|
|
|
| |
|
MULTI-LINE—FOREIGN 1.2% |
|
|
|
|
| |
|
ING Groep N.V., 7.05% (Netherlands) |
|
149,060 |
|
3,795,068 |
| |
|
ING Groep N.V., 7.375% (Netherlands)(a) |
|
294,873 |
|
7,534,005 |
| |
|
|
|
|
|
11,329,073 |
| |
|
|
|
|
|
|
| |
|
REINSURANCE 0.4% |
|
|
|
|
| |
|
Reinsurance Group of America, 6.20%, due 9/15/42 |
|
140,000 |
|
3,851,400 |
| |
|
|
|
Number |
|
Value |
| |
|
REINSURANCE—FOREIGN 0.8% |
|
|
|
|
| |
|
Aspen Insurance Holdings Ltd., 5.95% (Bermuda) |
|
117,169 |
|
$ |
2,925,710 |
|
|
Aspen Insurance Holdings Ltd., 7.25% (Bermuda) |
|
106,000 |
|
2,765,540 |
| |
|
Axis Capital Holdings Ltd., 6.875%, Series C (Bermuda) |
|
55,284 |
|
1,432,408 |
| |
|
|
|
|
|
7,123,658 |
| |
|
TOTAL INSURANCE |
|
|
|
38,352,939 |
| |
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 0.4% |
|
|
|
|
| |
|
Qwest Corp., 6.125%, due 6/1/53(a) |
|
80,000 |
|
1,857,600 |
| |
|
Qwest Corp., 7.00%, due 4/1/52 |
|
78,395 |
|
1,972,418 |
| |
|
|
|
|
|
3,830,018 |
| |
|
|
|
|
|
|
| |
|
REAL ESTATE 6.9% |
|
|
|
|
| |
|
DIVERSIFIED 1.2% |
|
|
|
|
| |
|
Coresite Realty Corp., 7.25%, Series A |
|
79,200 |
|
2,046,924 |
| |
|
Lexington Realty Trust, 6.50%, Series C ($50 Par Value)(a) |
|
96,586 |
|
4,580,108 |
| |
|
National Retail Properties, 5.70%, Series E |
|
73,266 |
|
1,747,394 |
| |
|
NorthStar Realty Finance Corp., 8.50%, Series D |
|
119,300 |
|
2,981,307 |
| |
|
|
|
|
|
11,355,733 |
| |
|
|
|
|
|
|
| |
|
FINANCE 0.2% |
|
|
|
|
| |
|
iStar Financial, 7.80%, Series F |
|
79,630 |
|
1,962,083 |
| |
|
|
|
|
|
|
| |
|
HOTEL 0.9% |
|
|
|
|
| |
|
Hersha Hospitality Trust, 6.875%, Series C |
|
134,345 |
|
3,472,818 |
| |
|
Hospitality Properties Trust, 7.125%, Series D |
|
95,000 |
|
2,433,900 |
| |
|
Pebblebrook Hotel Trust, 7.875%, Series A(a),(b) |
|
100,000 |
|
2,578,500 |
| |
|
|
|
|
|
8,485,218 |
| |
|
|
|
|
|
|
| |
|
INDUSTRIALS 0.6% |
|
|
|
|
| |
|
Gramercy Property Trust, 7.125%, Series B |
|
151,270 |
|
3,804,441 |
| |
|
Monmouth Real Estate Investment Corp., 7.875%, Series B |
|
87,500 |
|
2,299,500 |
| |
|
|
|
|
|
6,103,941 |
| |
|
|
|
|
|
|
| |
|
OFFICE 1.1% |
|
|
|
|
| |
|
American Realty Capital Properties, 6.70%, Series F(a) |
|
323,710 |
|
7,484,175 |
| |
|
Corporate Office Properties Trust, 7.375%, Series L(a),(b) |
|
100,000 |
|
2,581,000 |
| |
|
|
|
|
|
10,065,175 |
| |
|
|
|
|
|
|
| |
|
RESIDENTIAL—MANUFACTURED HOME 0.4% |
|
|
|
|
| |
|
Campus Crest Communities, 8.00%, Series A |
|
94,068 |
|
2,356,403 |
| |
|
|
|
Number |
|
Value |
| |
|
Equity Lifestyle Properties, 6.75%, Series C |
|
60,843 |
|
$ |
1,582,831 |
|
|
|
|
|
|
3,939,234 |
| |
|
SHOPPING CENTERS 2.5% |
|
|
|
|
| |
|
COMMUNITY CENTER 1.6% |
|
|
|
|
| |
|
Cedar Realty Trust, 7.25%, Series B(a) |
|
219,000 |
|
5,726,850 |
| |
|
DDR Corp., 6.50%, Series J |
|
60,000 |
|
1,514,400 |
| |
|
Inland Real Estate Corp., 8.125%, Series A |
|
135,000 |
|
3,579,525 |
| |
|
Saul Centers, 6.875%, Series C |
|
79,140 |
|
2,057,640 |
| |
|
Weingarten Realty Investors, 6.50%, Series F(a),(b) |
|
101,803 |
|
2,566,454 |
| |
|
|
|
|
|
15,444,869 |
| |
|
REGIONAL MALL 0.9% |
|
|
|
|
| |
|
CBL & Associates Properties, 7.375%, Series D(a) |
|
324,982 |
|
8,287,041 |
| |
|
TOTAL SHOPPING CENTERS |
|
|
|
23,731,910 |
| |
|
TOTAL REAL ESTATE |
|
|
|
65,643,294 |
| |
|
|
|
|
|
|
| |
|
TRANSPORT—MARINE—FOREIGN 0.5% |
|
|
|
|
| |
|
Seaspan Corp., 6.375%, due 4/30/19 (Hong Kong) |
|
62,325 |
|
1,594,897 |
| |
|
Seaspan Corp., 9.50%, Series C (Hong Kong)(a) |
|
56,054 |
|
1,498,323 |
| |
|
Teekay Offshore Partners LP, 7.25%, Series A (Marshall Islands) |
|
60,000 |
|
1,487,400 |
| |
|
|
|
|
|
4,580,620 |
| |
|
UTILITIES 0.3% |
|
|
|
|
| |
|
SCE Trust III, 5.75% |
|
112,175 |
|
2,963,664 |
| |
|
TOTAL PREFERRED SECURITIES—$25 PAR VALUE (Identified cost—$227,110,590) |
|
|
|
244,769,523 |
| |
|
|
|
|
|
|
| |
|
PREFERRED SECURITIES—CAPITAL SECURITIES 40.5% |
|
|
|
|
| |
|
BANKS 8.5% |
|
|
|
|
| |
|
Bank of America Corp., 6.25%, Series X |
|
5,162,000 |
|
5,153,932 |
| |
|
Citigroup Capital III, 7.625%, due 12/1/36(a) |
|
4,700,000 |
|
5,840,826 |
| |
|
Farm Credit Bank of Texas, 10.00%, Series I(a) |
|
6,000 |
|
7,516,875 |
| |
|
Goldman Sachs Capital I, 6.345%, due 2/15/34(a) |
|
3,250,000 |
|
3,705,244 |
| |
|
Goldman Sachs Capital II, 4.00%, (FRN)(a) |
|
3,340,000 |
|
2,556,770 |
| |
|
JPMorgan Chase & Co., 7.90%, Series I(a),(b) |
|
16,500,000 |
|
17,943,750 |
| |
|
JPMorgan Chase & Co., 6.75%, Series S |
|
5,900,000 |
|
6,227,450 |
| |
|
JPMorgan Chase & Co., 6.125%, Series U |
|
1,900,000 |
|
1,889,550 |
| |
|
JPMorgan Chase & Co., 6.10%, Series X |
|
3,700,000 |
|
3,674,074 |
| |
|
PNC Financial Services Group, 6.75%(a),(b) |
|
4,000,000 |
|
4,440,456 |
| |
|
Wells Fargo & Co, 5.90%, Series S |
|
2,255,000 |
|
2,302,919 |
| |
|
Wells Fargo & Co., 7.98%, Series K(a),(b) |
|
13,475,000 |
|
14,813,067 |
| |
|
|
|
Number |
|
Value |
| |
|
Zions Bancorp, 7.20%, Series J |
|
3,997,000 |
|
$ |
4,236,820 |
|
|
|
|
|
|
80,301,733 |
| |
|
BANKS—FOREIGN 14.6% |
|
|
|
|
| |
|
Baggot Securities Ltd., 10.24%, 144A (EUR) (Ireland)(d) |
|
2,474,000 |
|
3,320,086 |
| |
|
Banco Bilbao Vizcaya Argentaria SA, 7.00% (Spain) |
|
2,600,000 |
|
3,464,771 |
| |
|
Banco Bilbao Vizcaya Argentaria SA, 9.00% (Spain) |
|
5,400,000 |
|
5,751,000 |
| |
|
Banco do Brasil SA/Cayman, 9.00%, 144A (Brazil)(d) |
|
5,550,000 |
|
5,411,805 |
| |
|
Barclays Bank PLC, 7.625%, due 11/21/22 (United Kingdom)(a),(b) |
|
3,375,000 |
|
3,633,187 |
| |
|
Barclays Bank PLC, 6.86%, 144A (United Kingdom)(a),(d) |
|
4,300,000 |
|
4,778,375 |
| |
|
Barclays PLC, 8.00% (United Kingdom) (EUR) |
|
2,050,000 |
|
2,705,770 |
| |
|
Barclays PLC, 8.25% (United Kingdom)(a) |
|
6,520,000 |
|
6,704,190 |
| |
|
BBVA Bancomer SA Texas, 6.75%, due 9/30/22, 144A (Mexico)(d) |
|
2,800,000 |
|
3,143,000 |
| |
|
BNP Paribas, 7.195%, 144A (France)(a),(b),(d) |
|
3,200,000 |
|
3,728,000 |
| |
|
Commerzbank AG, 8.125%, due 9/19/23, 144A (Germany)(a),(d) |
|
2,700,000 |
|
3,127,353 |
| |
|
Coventry Building Society, 6.375% (United Kingdom) |
|
1,300,000 |
|
2,015,292 |
| |
|
Credit Agricole SA, 6.625%, 144A (France)(d) |
|
2,800,000 |
|
2,674,773 |
| |
|
Credit Agricole SA, 7.875%, 144A (France)(d) |
|
3,109,000 |
|
3,149,806 |
| |
|
Credit Suisse AG, 6.50%, due 8/8/23, 144A (Switzerland)(d) |
|
2,000,000 |
|
2,180,100 |
| |
|
Credit Suisse Group AG, 7.50%, 144A (Switzerland)(a),(d) |
|
4,605,000 |
|
4,846,762 |
| |
|
Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (Germany)(a),(d) |
|
7,640,000 |
|
9,053,400 |
| |
|
HBOS Capital Funding LP, 6.85% (United Kingdom) |
|
3,300,000 |
|
3,325,163 |
| |
|
HSBC Capital Funding LP, 10.176%, 144A (United Kingdom)(d) |
|
8,442,000 |
|
12,747,420 |
| |
|
HSBC Holdings PLC, 6.375% (United Kingdom) |
|
2,000,000 |
|
2,000,000 |
| |
|
Itau Unibanco Holding SA/Cayman Island, 5.50%, due 8/6/22, 144A (Brazil)(d) |
|
1,800,000 |
|
1,786,500 |
| |
|
Lloyds Banking Group PLC, 7.50% (United Kingdom)(a) |
|
6,166,000 |
|
6,366,395 |
| |
|
Nationwide Building Society, 10.25% (United Kingdom)(f) |
|
4,790,000 |
|
9,706,637 |
| |
|
Nationwide Building Society, 6.875%, Series EMTN (United Kingdom) |
|
2,150,000 |
|
3,365,224 |
| |
|
Nordea Bank AB, 6.125%, 144A (Sweden)(d) |
|
2,600,000 |
|
2,557,781 |
| |
|
Rabobank Nederland, 8.40% (Netherlands) |
|
3,000,000 |
|
3,311,250 |
| |
|
Rabobank Nederland, 11.00%, 144A (Netherlands)(a),(d) |
|
4,800,000 |
|
6,360,000 |
| |
|
Royal Bank of Scotland Group PLC, 7.648% (United Kingdom)(a) |
|
5,691,000 |
|
6,686,925 |
| |
|
SMFG Preferred Capital, 9.50%, 144A (FRN) (Cayman Islands)(a),(d) |
|
2,500,000 |
|
3,087,500 |
| |
|
|
|
Number |
|
Value |
| |
|
Societe Generale SA, 7.875%, 144A (France)(d) |
|
3,400,000 |
|
$ |
3,400,850 |
|
|
Standard Chartered PLC, 7.014%, 144A (United Kingdom)(a),(d) |
|
2,250,000 |
|
2,538,837 |
| |
|
UBS AG, 7.625%, due 8/17/22 (Switzerland)(a) |
|
1,750,000 |
|
2,036,157 |
| |
|
|
|
|
|
138,964,309 |
| |
|
FINANCE 2.4% |
|
|
|
|
| |
|
DIVERSIFIED FINANCIAL SERVICES 2.1% |
|
|
|
|
| |
|
General Electric Capital Corp., 7.125%, Series A(a),(b) |
|
11,800,000 |
|
13,679,185 |
| |
|
General Electric Capital Corp., 6.25%, Series B(a),(b) |
|
6,000,000 |
|
6,492,924 |
| |
|
|
|
|
|
20,172,109 |
| |
|
INVESTMENT BANKER/BROKER 0.3% |
|
|
|
|
| |
|
Goldman Sachs Group, 5.70%, Series L |
|
2,750,000 |
|
2,803,394 |
| |
|
TOTAL FINANCE |
|
|
|
22,975,503 |
| |
|
|
|
|
|
|
| |
|
FOOD 0.8% |
|
|
|
|
| |
|
Dairy Farmers of America, 7.875%, 144A(d),(g) |
|
68,100 |
|
7,339,907 |
| |
|
|
|
|
|
|
| |
|
INSURANCE 9.4% |
|
|
|
|
| |
|
LIFE/HEALTH INSURANCE 1.4% |
|
|
|
|
| |
|
MetLife Capital Trust X, 9.25%, due 4/8/38, 144A(a),(b),(d) |
|
9,315,000 |
|
13,483,462 |
| |
|
|
|
|
|
|
| |
|
LIFE/HEALTH INSURANCE—FOREIGN 1.6% |
|
|
|
|
| |
|
Groupama SA, 6.375% (France) |
|
3,900,000 |
|
4,962,841 |
| |
|
La Mondiale Vie, 7.625% (France) |
|
5,700,000 |
|
6,270,000 |
| |
|
Sumitomo Life Insurance Co, 6.50%, due 9/20/73, 144A (Japan)(a),(d) |
|
3,800,000 |
|
4,351,863 |
| |
|
|
|
|
|
15,584,704 |
| |
|
MULTI-LINE 1.5% |
|
|
|
|
| |
|
American International Group, 8.175%, due 5/15/58, (FRN)(a) |
|
7,223,000 |
|
9,769,107 |
| |
|
MetLife, 10.75%, due 8/1/69(a) |
|
3,000,000 |
|
4,860,000 |
| |
|
|
|
|
|
14,629,107 |
| |
|
MULTI-LINE—FOREIGN 0.9% |
|
|
|
|
| |
|
Aviva PLC, 8.25% (United Kingdom) |
|
2,700,000 |
|
3,033,561 |
| |
|
AXA SA, 8.60%, due 12/15/30 (France)(a) |
|
1,800,000 |
|
2,425,500 |
| |
|
AXA SA, 6.463%, 144A (France)(a),(d) |
|
3,050,000 |
|
3,220,800 |
| |
|
|
|
|
|
8,679,861 |
| |
|
PROPERTY CASUALTY 0.8% |
|
|
|
|
| |
|
Liberty Mutual Group, 7.80%, due 3/15/37, 144A(a),(d) |
|
6,000,000 |
|
7,087,500 |
| |
|
|
|
Number |
|
Value |
| |
|
PROPERTY CASUALTY—FOREIGN 1.4% |
|
|
|
|
| |
|
Atradius Finance BV, 5.25%, due 9/23/44 (Netherlands) |
|
3,200,000 |
|
$ |
4,054,897 |
|
|
Mitsui Sumitomo Insurance Co., Ltd., 7.00%, due 3/15/72, 144A (Japan)(a),(d) |
|
3,750,000 |
|
4,350,000 |
| |
|
RL Finance Bonds No. 2 PLC, 6.125%, due 11/30/43 (United Kingdom) |
|
2,650,000 |
|
4,505,807 |
| |
|
|
|
|
|
12,910,704 |
| |
|
REINSURANCE—FOREIGN 1.8% |
|
|
|
|
| |
|
Aquarius + Investments PLC, 8.25% (Switzerland) |
|
6,000,000 |
|
6,631,500 |
| |
|
Catlin Insurance Co., 7.249%, 144A (Bermuda)(a),(d) |
|
5,800,000 |
|
6,003,000 |
| |
|
QBE Capital Funding III Ltd., 7.25%, due 5/24/41, 144A (Australia)(a),(d) |
|
3,800,000 |
|
4,147,495 |
| |
|
|
|
|
|
16,781,995 |
| |
|
TOTAL INSURANCE |
|
|
|
89,157,333 |
| |
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 1.0% |
|
|
|
|
| |
|
Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman)(a),(d) |
|
6,254 |
|
7,852,679 |
| |
|
Embarq Corp., 7.995%, due 6/1/36 |
|
2,000,000 |
|
2,166,800 |
| |
|
|
|
|
|
10,019,479 |
| |
|
PIPELINES 1.2% |
|
|
|
|
| |
|
Enbridge Energy Partners LP, 8.05%, due 10/1/37(a) |
|
7,700,000 |
|
8,701,000 |
| |
|
Enterprise Products Operating LLC, 7.034%, due 1/15/68, Series B(a) |
|
2,150,000 |
|
2,431,304 |
| |
|
|
|
|
|
11,132,304 |
| |
|
UTILITIES 2.6% |
|
|
|
|
| |
|
ELECTRIC UTILITIES 0.6% |
|
|
|
|
| |
|
FPL Group Capital, 7.30%, due 9/1/67, Series D(a) |
|
5,200,000 |
|
5,695,154 |
| |
|
|
|
|
|
|
| |
|
ELECTRIC UTILITIES—FOREIGN 0.8% |
|
|
|
|
| |
|
Enel SpA, 8.75%, due 9/24/73, 144A (Italy)(d) |
|
6,260,000 |
|
7,285,388 |
| |
|
|
|
|
|
|
| |
|
MULTI-UTILITIES 1.2% |
|
|
|
|
| |
|
Dominion Resources, 5.75%, due 10/1/54 |
|
4,883,000 |
|
4,951,025 |
| |
|
Dominion Resources, 7.50%, due 6/30/66, Series A(a),(b) |
|
3,720,000 |
|
4,006,812 |
| |
|
|
|
Number |
|
Value |
| |
|
PPL Capital Funding, 6.70%, due 3/30/67, Series A |
|
3,000,000 |
|
$ |
3,040,725 |
|
|
|
|
|
|
11,998,562 |
| |
|
TOTAL UTILITIES |
|
|
|
24,979,104 |
| |
|
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES (Identified cost—$344,941,655) |
|
|
|
384,869,672 |
| |
|
|
|
Principal |
|
|
| |
|
CORPORATE BONDS 1.0% |
|
|
|
|
| |
|
INSURANCE-PROPERTY CASUALTY 0.7% |
|
|
|
|
| |
|
Liberty Mutual Insurance, 7.697%, due 10/15/97, 144A(a),(d) |
|
$ |
5,250,000 |
|
6,241,205 |
|
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 0.3% |
|
|
|
|
| |
|
Frontier Communications Corp., 9.00%, due 8/15/31(a) |
|
3,000,000 |
|
3,127,500 |
| |
|
TOTAL CORPORATE BONDS (Identified cost—$7,778,544) |
|
|
|
9,368,705 |
| |
|
|
|
|
|
Number |
|
|
| |
|
SHORT-TERM INVESTMENTS 0.7% |
|
|
|
|
|
|
| |
|
MONEY MARKET FUNDS |
|
|
|
|
|
|
| |
|
State Street Institutional Treasury Money Market Fund, 0.00%(h) |
|
|
|
6,500,000 |
|
6,500,000 |
| |
|
TOTAL SHORT-TERM INVESTMENTS (Identified cost—$6,500,000) |
|
|
|
|
|
6,500,000 |
| |
|
TOTAL INVESTMENTS (Identified cost—$1,064,974,673) |
|
135.4 |
% |
|
|
1,285,357,165 |
| |
|
LIABILITIES IN EXCESS OF OTHER ASSETS |
|
(35.4 |
) |
|
|
(336,278,566 |
) | |
|
NET ASSETS (Equivalent to $19.87 per share based on 47,769,767 shares of common stock outstanding) |
|
100.0 |
% |
|
|
$ |
949,078,599 |
|
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 revolving credit agreement. $728,688,964 in aggregate has been pledged as collateral.
(b) A portion of the security has been rehypothecated in connection with the Fund’s revolving credit agreement. $319,474,494 in aggregate has been rehypothecated.
(c) Non-income producing security.
(d) Resale is restricted to qualified institutional investors. Aggregate holdings equal 16.8% of the net assets of the Fund, of which 0.8% are illiquid.
(e) A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $1,025,600 in aggregate has been segregated as collateral.
(f) Fair valued security. This security has been valued at its fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Board of Directors. Aggregate fair valued securities represent 1.0% of the net assets of the Fund.
(g) Illiquid security. Aggregate holdings equal 0.8% of the net assets of the Fund.
(h) Rate quoted represents the annualized seven-day yield of the Fund.
Forward foreign currency exchange contracts outstanding at September 30, 2014 were as follows:
|
Counterparty |
|
Contracts to |
|
In Exchange |
|
Settlement |
|
Unrealized |
| ||||
|
Brown Brothers Harriman |
|
EUR |
3,042,815 |
|
USD |
|
3,942,301 |
|
10/2/14 |
|
$ |
99,073 |
|
|
Brown Brothers Harriman |
|
EUR |
11,660,365 |
|
USD |
|
15,362,974 |
|
10/2/14 |
|
635,345 |
| |
|
Brown Brothers Harriman |
|
GBP |
13,081,771 |
|
USD |
|
21,713,961 |
|
10/2/14 |
|
506,445 |
| |
|
Brown Brothers Harriman |
|
USD |
18,577,468 |
|
EUR |
|
14,703,180 |
|
10/2/14 |
|
(6,610 |
) | |
|
Brown Brothers Harriman |
|
USD |
21,211,699 |
|
GBP |
|
13,081,771 |
|
10/2/14 |
|
(4,184 |
) | |
|
Brown Brothers Harriman |
|
EUR |
14,635,407 |
|
USD |
|
18,493,754 |
|
11/4/14 |
|
4,550 |
| |
|
Brown Brothers Harriman |
|
GBP |
12,504,593 |
|
USD |
|
20,267,995 |
|
11/4/14 |
|
1,975 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,236,594 |
|
Glossary of Portfolio Abbreviations
|
EUR |
Euro Currency |
|
FRN |
Floating Rate Note |
|
GBP |
Great British Pound |
|
REIT |
Real Estate Investment Trust |
|
USD |
United States Dollar |
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 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 pricing service 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.
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.
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
Cohen & Steers REIT and Preferred Income Fund, Inc.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
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.
Foreign equity fair value pricing procedures utilized by the Fund may cause certain non-U.S. equity holdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values such securities and the earlier closing of foreign 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
Cohen & Steers REIT and Preferred Income Fund, Inc.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 securities as of September 30, 2014.
The following is a summary of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value:
|
|
|
Total |
|
Quoted Prices In |
|
Other |
|
Significant |
| ||||
|
Common Stock |
|
$ |
639,849,265 |
|
$ |
639,849,265 |
|
$ |
— |
|
$ |
— |
|
|
Preferred Securities - $25 Par Value - Banks |
|
79,826,657 |
|
61,456,533 |
|
11,747,249 |
|
6,622,875 |
(b) | ||||
|
Preferred Securities - $25 Par Value - Other Industries |
|
164,942,866 |
|
164,942,866 |
|
— |
|
— |
| ||||
|
Preferred Securities - Capital Securities - Food |
|
7,339,907 |
|
— |
|
— |
|
7,339,907 |
(b) | ||||
|
Preferred Securities - Capital Securities - Other Industries |
|
377,529,765 |
|
— |
|
377,529,765 |
|
— |
| ||||
|
Corporate Bonds |
|
9,368,705 |
|
— |
|
9,368,705 |
|
— |
| ||||
|
Money Market Funds |
|
6,500,000 |
|
— |
|
6,500,000 |
|
— |
| ||||
|
Total Investments(c) |
|
$ |
1,285,357,165 |
|
$ |
866,248,664 |
|
$ |
405,145,719 |
|
$ |
13,962,782 |
|
|
Forward foreign currency exchange contracts |
|
$ |
1,247,388 |
|
$ |
— |
|
$ |
1,247,388 |
|
$ |
— |
|
|
Total Appreciation in Other Financial Instruments(c) |
|
$ |
1,247,388 |
|
$ |
— |
|
$ |
1,247,388 |
|
$ |
— |
|
|
Forward foreign currency exchange contracts |
|
$ |
(10,794 |
) |
$ |
— |
|
$ |
(10,794 |
) |
$ |
— |
|
|
Total Depreciation in Other Financial Instruments(c) |
|
$ |
(10,794 |
) |
$ |
— |
|
$ |
(10,794 |
) |
$ |
— |
|
(a) Certain of the Fund’s investments are categorized as Level 3 and were valued utilizing third party pricing information without adjustment. Such valuations are based on significant unobservable inputs. A change in the significant unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.
(b) Valued by a pricing service utilizing independent broker quotes.
(c) Portfolio holdings are disclosed individually on the Schedule of 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 |
|
Common |
|
Preferred |
|
Preferred |
|
Preferred |
| |||||
|
Balance as of December 31, 2013 |
|
$ |
20,824,973 |
|
$ |
3,866,999 |
|
$ |
5,329,812 |
|
$ |
4,418,074 |
|
$ |
7,210,088 |
|
|
Purchases |
|
6,062,196 |
|
— |
|
1,018,750 |
|
5,043,446 |
|
— |
| |||||
|
Amortization |
|
(35 |
) |
— |
|
— |
|
(35 |
) |
— |
| |||||
|
Change in unrealized appreciation (depreciation) |
|
961,176 |
|
311,892 |
|
274,313 |
|
245,152 |
|
129,819 |
| |||||
|
Transfers out of Level 3(a) |
|
(13,885,528 |
) |
(4,178,891 |
) |
— |
|
(9,706,637 |
) |
— |
| |||||
|
Balance as of September 30, 2014 |
|
$ |
13,962,782 |
|
$ |
— |
|
$ |
6,622,875 |
|
$ |
— |
|
$ |
7,339,907 |
|
The change in unrealized appreciation (depreciation) attributable to securities owned on September 30, 2014 which were valued using significant unobservable inputs (Level 3) amounted to $404,132.
(a) As of December 31, 2013, the Fund used significant unobservable inputs in determining the value of certain investments. As of September 30, 2014, the Fund used significant observable inputs and/or quoted prices in determining the value of the same investments.
Note 2. Derivative Instruments
The following is a summary of the Fund’s derivative instruments as of September 30, 2014:
|
Forward foreign currency exchange contracts |
|
$ |
1,236,594 |
|
The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the nine months ended September 30, 2014:
|
|
|
Forward foreign |
| |
|
Average Notional Balance |
|
$ |
30,587,231 |
|
|
Ending Notional Balance |
|
38,761,749 |
| |
Options: The Fund writes covered call options on securities and may write put or call options on an index and put options on securities with the intention of earning option premiums. Option
Cohen & Steers REIT and Preferred Income Fund, Inc.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
premiums may increase the Fund’s realized gains and therefore may help increase distributable income. When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded on the Statement of Assets and Liabilities 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.
Transactions in written options during the for the nine months ended September 30, 2014, were as follows:
|
|
|
Number |
|
|
| |
|
|
|
of Contracts |
|
Premiums |
| |
|
Options outstanding at December 31, 2013 |
|
2,832 |
|
$ |
57,682 |
|
|
Options expired |
|
(2,832 |
) |
(57,682 |
) | |
|
Options outstanding at September 30, 2014 |
|
— |
|
$ |
— |
|
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 foreign forward 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 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.
Cohen & Steers REIT and Preferred Income Fund, Inc.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Note 3. Income Tax Information
As of September 30, 2014, the federal tax cost and net unrealized appreciation and depreciation in value of securities held were as follows:
|
Cost for federal income tax purposes |
|
$ |
1,064,974,673 |
|
|
Gross unrealized appreciation |
|
$ |
232,440,411 |
|
|
Gross unrealized depreciation |
|
(12,057,919 |
) | |
|
Net unrealized appreciation |
|
$ |
220,382,492 |
|
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: November 25, 2014 |
| |
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 Executive Officer |
|
|
Title: Treasurer and Principal Financial Officer |
Date: November 25, 2014