UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY
Investment Company Act file number: 811-21326
Cohen & Steers REIT and Preferred Income Fund, Inc.
Exact Name of Registrant (as specified in charter):
280 Park Avenue New York, NY 10017
Address of Principal Executive Office:
Dana DeVivo
280 Park Avenue
New York, NY 10017
Name and address of agent for service:
Registrant telephone number, including area code: (212) 832-3232
Date of fiscal year end: December 31
Date of reporting period: September 30, 2018
Item 1. Schedule of Investments
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
September 30, 2018 (Unaudited)
Shares | Value | |||||||||||
COMMON STOCK |
68.3 | % | ||||||||||
COMMUNICATIONSTOWERS |
2.9 | % | ||||||||||
Crown Castle International Corp.(a),(b) |
|
265,096 | $ | 29,513,138 | ||||||||
|
|
|||||||||||
REAL ESTATE |
65.4 | % | ||||||||||
DATA CENTERS |
7.9 | % | ||||||||||
CyrusOne, Inc.(a),(b) |
|
234,170 | 14,846,378 | |||||||||
Digital Realty Trust, Inc.(a),(b) |
|
229,964 | 25,866,351 | |||||||||
Equinix, Inc.(a),(b) |
|
94,613 | 40,957,021 | |||||||||
|
|
|||||||||||
81,669,750 | ||||||||||||
|
|
|||||||||||
HEALTH CARE |
7.3 | % | ||||||||||
HCP, Inc.(a) |
|
662,362 | 17,433,368 | |||||||||
Healthcare Trust of America, Inc., Class A(a),(b) |
|
525,209 | 14,007,324 | |||||||||
Sabra Health Care REIT, Inc.(a),(b) |
|
775,672 | 17,933,537 | |||||||||
Ventas, Inc. |
|
181,923 | 9,892,973 | |||||||||
Welltower, Inc.(a) |
|
259,251 | 16,675,024 | |||||||||
|
|
|||||||||||
75,942,226 | ||||||||||||
|
|
|||||||||||
HOTEL |
4.6 | % | ||||||||||
Host Hotels & Resorts, Inc.(a),(b) |
|
657,710 | 13,877,681 | |||||||||
Pebblebrook Hotel Trust(a),(b) |
|
283,625 | 10,315,441 | |||||||||
RLJ Lodging Trust(a),(b) |
|
407,541 | 8,978,128 | |||||||||
Sunstone Hotel Investors, Inc.(a),(b) |
|
856,730 | 14,016,103 | |||||||||
|
|
|||||||||||
47,187,353 | ||||||||||||
|
|
|||||||||||
INDUSTRIALS |
4.2 | % | ||||||||||
Prologis, Inc.(a),(b) |
|
638,016 | 43,251,105 | |||||||||
|
|
|||||||||||
NET LEASE |
3.9 | % | ||||||||||
EPR Properties(a),(b) |
|
124,767 | 8,535,310 | |||||||||
Four Corners Property Trust, Inc. |
|
214,456 | 5,509,375 | |||||||||
Gaming and Leisure Properties, Inc.(a),(b) |
|
118,280 | 4,169,370 | |||||||||
Spirit Realty Capital, Inc. |
|
1,703,795 | 13,732,588 | |||||||||
VICI Properties, Inc.(a),(b) |
|
367,769 | 7,951,166 | |||||||||
|
|
|||||||||||
39,897,809 | ||||||||||||
|
|
|||||||||||
OFFICE |
8.1 | % | ||||||||||
Alexandria Real Estate Equities, Inc.(a),(b) |
|
109,768 | 13,807,717 | |||||||||
Boston Properties, Inc.(a) |
|
112,980 | 13,906,708 | |||||||||
Douglas Emmett, Inc.(a),(b) |
|
231,178 | 8,720,034 | |||||||||
Hudson Pacific Properties, Inc.(a),(b) |
|
339,846 | 11,119,761 | |||||||||
Kilroy Realty Corp.(a),(b) |
|
308,938 | 22,147,765 |
1
Shares | Value | |||||||||||
Vornado Realty Trust(a),(b) |
|
194,861 | $ | 14,224,853 | ||||||||
|
|
|||||||||||
83,926,838 | ||||||||||||
|
|
|||||||||||
RESIDENTIAL |
15.2 | % | ||||||||||
APARTMENT |
10.5 | % | ||||||||||
Apartment Investment & Management Co., Class A(a),(b) |
|
231,507 | 10,216,404 | |||||||||
Equity Residential(a),(b) |
|
258,968 | 17,159,220 | |||||||||
Essex Property Trust, Inc.(a),(b) |
|
156,128 | 38,518,339 | |||||||||
Mid-America Apartment Communities, Inc.(a),(b) |
|
150,186 | 15,045,633 | |||||||||
UDR, Inc.(a),(b) |
|
693,718 | 28,047,019 | |||||||||
|
|
|||||||||||
108,986,615 | ||||||||||||
|
|
|||||||||||
MANUFACTURED HOME |
2.1 | % | ||||||||||
Sun Communities, Inc.(a),(b) |
|
213,633 | 21,692,295 | |||||||||
|
|
|||||||||||
SINGLE FAMILY |
2.0 | % | ||||||||||
Invitation Homes, Inc.(a),(b) |
|
887,482 | 20,332,212 | |||||||||
|
|
|||||||||||
STUDENT HOUSING |
0.6 | % | ||||||||||
American Campus Communities, Inc.(a),(b) |
|
161,018 | 6,627,501 | |||||||||
|
|
|||||||||||
TOTAL RESIDENTIAL |
|
157,638,623 | ||||||||||
|
|
|||||||||||
SELF STORAGE |
3.8 | % | ||||||||||
Extra Space Storage, Inc.(a),(b) |
|
311,257 | 26,967,306 | |||||||||
Life Storage, Inc.(a) |
|
129,987 | 12,369,563 | |||||||||
|
|
|||||||||||
39,336,869 | ||||||||||||
|
|
|||||||||||
SHOPPING CENTERS |
9.1 | % | ||||||||||
COMMUNITY CENTER |
4.2 | % | ||||||||||
Brixmor Property Group, Inc.(a),(b) |
|
798,843 | 13,987,741 | |||||||||
Regency Centers Corp.(a),(b) |
|
230,262 | 14,891,043 | |||||||||
Weingarten Realty Investors(a) |
|
475,856 | 14,161,475 | |||||||||
|
|
|||||||||||
43,040,259 | ||||||||||||
|
|
|||||||||||
FREE STANDING |
1.3 | % | ||||||||||
Realty Income Corp. |
|
241,751 | 13,753,215 | |||||||||
|
|
|||||||||||
REGIONAL MALL |
3.6 | % | ||||||||||
Simon Property Group, Inc.(a),(b) |
|
211,679 | 37,414,263 | |||||||||
|
|
|||||||||||
TOTAL SHOPPING CENTERS |
|
94,207,737 | ||||||||||
|
|
|||||||||||
SPECIALTY |
1.3 | % | ||||||||||
Iron Mountain, Inc. |
|
99,664 | 3,440,401 |
2
Shares | Value | |||||||||||
Lamar Advertising Co., Class A(a),(b) |
|
133,077 | $ | 10,353,391 | ||||||||
|
|
|||||||||||
13,793,792 | ||||||||||||
|
|
|||||||||||
TOTAL REAL ESTATE |
|
676,852,102 | ||||||||||
|
|
|||||||||||
TOTAL COMMON STOCK |
706,365,240 | |||||||||||
|
|
|||||||||||
PREFERRED SECURITIES$25 PAR VALUE |
18.4 | % | ||||||||||
BANKS |
4.9 | % | ||||||||||
Bank of America Corp., 6.20%, Series CC(a),(c) |
|
127,981 | 3,314,708 | |||||||||
Bank of America Corp., 6.00%, Series EE(c) |
|
90,774 | 2,347,416 | |||||||||
Bank of America Corp., 6.00%, Series GG(c) |
|
104,775 | 2,724,150 | |||||||||
Bank of America Corp., 5.875%, Series HH(c) |
|
204,000 | 5,202,000 | |||||||||
Bank of America Corp., 6.50%, Series Y(a),(c) |
|
63,268 | 1,648,131 | |||||||||
Citigroup, Inc., 6.30%, Series S(a),(b),(c) |
|
189,006 | 4,925,496 | |||||||||
GMAC Capital Trust I, 8.099%, (3 Month US LIBOR + 5.785%), due 2/15/40, Series 2 (TruPS) (FRN)(a),(d) |
|
324,847 | 8,543,476 | |||||||||
Huntington Bancshares, Inc., 6.25%, Series D(a),(c) |
|
85,273 | 2,194,927 | |||||||||
JPMorgan Chase & Co., 6.125%, Series Y(a),(c) |
|
90,000 | 2,320,200 | |||||||||
New York Community Bancorp, Inc., 6.375% to 3/17/27, Series A(c),(e) |
|
73,450 | 1,961,115 | |||||||||
Peoples United Financial, Inc., 5.625% to 12/15/26, Series A(c),(e) |
|
59,468 | 1,531,301 | |||||||||
Regions Financial Corp., 6.375% to 9/15/24, Series B(c),(e) |
|
76,426 | 2,026,053 | |||||||||
Synovus Financial Corp., 6.30% to 6/21/23, Series D(c),(e) |
|
66,000 | 1,730,520 | |||||||||
TCF Financial Corp., 5.70%, Series C(c) |
|
73,000 | 1,758,570 | |||||||||
US Bancorp, 5.50%, Series K(c) |
|
122,850 | 3,087,221 | |||||||||
Wells Fargo & Co., 5.85% to 9/15/23, Series Q(c),(e) |
|
122,748 | 3,163,216 | |||||||||
Wells Fargo & Co., 5.70%, Series W(a),(c) |
|
87,835 | 2,208,172 | |||||||||
|
|
|||||||||||
50,686,672 | ||||||||||||
|
|
|||||||||||
ELECTRIC |
1.1 | % | ||||||||||
INTEGRATED ELECTRIC |
0.3 | % | ||||||||||
Integrys Holdings, Inc., 6.00% to 8/1/23, due 8/1/73(e) |
|
122,977 | 3,206,625 | |||||||||
|
|
|||||||||||
REGULATED ELECTRIC |
0.8 | % | ||||||||||
Southern Co./The, 6.25%, due 10/15/75 |
|
233,339 | 6,034,147 | |||||||||
Southern Co./The, 5.25%, due 12/1/77 |
|
69,435 | 1,622,696 | |||||||||
|
|
|||||||||||
7,656,843 | ||||||||||||
|
|
|||||||||||
TOTAL ELECTRIC |
|
10,863,468 | ||||||||||
|
|
3
Shares | Value | |||||||||||
FINANCIAL |
2.4 | % | ||||||||||
DIVERSIFIED FINANCIAL SERVICES |
0.5 | % | ||||||||||
KKR & Co., Inc., 6.75%, Series A(c) |
|
140,000 | $ | 3,682,000 | ||||||||
Oaktree Capital Group LLC, 6.55%, Series B(c) |
|
65,000 | 1,616,550 | |||||||||
|
|
|||||||||||
5,298,550 | ||||||||||||
|
|
|||||||||||
INVESTMENT ADVISORY SERVICES |
0.3 | % | ||||||||||
Ares Management LP, 7.00%, Series A(c) |
|
136,000 | 3,598,560 | |||||||||
|
|
|||||||||||
INVESTMENT BANKER/BROKER |
1.6 | % | ||||||||||
Carlyle Group LP/The, 5.875%, Series A(c) |
|
116,675 | 2,641,522 | |||||||||
Charles Schwab Corp./The, 5.95%, Series D(c) |
|
95,123 | 2,423,734 | |||||||||
Morgan Stanley, 6.875% to 1/15/24, Series F(a),(c),(e) |
|
195,524 | 5,353,447 | |||||||||
Morgan Stanley, 6.375% to 10/15/24, Series I(a),(b),(c),(e) |
|
164,338 | 4,391,111 | |||||||||
Morgan Stanley, 5.85% to 4/15/27, Series K(c),(e) |
|
56,056 | 1,425,504 | |||||||||
|
|
|||||||||||
16,235,318 | ||||||||||||
|
|
|||||||||||
TOTAL FINANCIAL |
|
25,132,428 | ||||||||||
|
|
|||||||||||
INDUSTRIALSCHEMICALS |
1.0 | % | ||||||||||
CHS, Inc., 7.10% to 3/31/24, Series 2(a),(c),(e) |
|
190,229 | 5,132,379 | |||||||||
CHS, Inc., 6.75% to 9/30/24, Series 3(a),(c),(e) |
|
130,453 | 3,421,782 | |||||||||
CHS, Inc., 7.50%, Series 4(c) |
|
74,495 | 2,035,948 | |||||||||
|
|
|||||||||||
10,590,109 | ||||||||||||
|
|
|||||||||||
INSURANCE |
3.4 | % | ||||||||||
LIFE/HEALTH INSURANCE |
0.8 | % | ||||||||||
MetLife, Inc., 5.625%, Series E(c) |
|
185,000 | 4,662,000 | |||||||||
Prudential Financial, Inc., 5.625%, due 8/15/58 |
|
66,000 | 1,634,820 | |||||||||
Unum Group, 6.25%, due 6/15/58 |
|
66,000 | 1,666,500 | |||||||||
|
|
|||||||||||
7,963,320 | ||||||||||||
|
|
|||||||||||
MULTI-LINE |
1.1 | % | ||||||||||
American Financial Group, Inc., 6.00%, due 11/15/55 |
|
107,384 | 2,742,587 | |||||||||
American Financial Group, Inc., 6.25%, due 9/30/54 |
|
79,734 | 2,049,164 | |||||||||
Hanover Insurance Group, Inc./The, 6.35%, due 3/30/53 |
|
78,400 | 1,975,680 | |||||||||
WR Berkley Corp., 5.70%, due 3/30/58 |
|
56,505 | 1,382,112 | |||||||||
WR Berkley Corp., 5.75%, due 6/1/56 |
|
142,445 | 3,468,536 | |||||||||
|
|
|||||||||||
11,618,079 | ||||||||||||
|
|
|||||||||||
MULTI-LINEFOREIGN |
0.2 | % | ||||||||||
PartnerRe Ltd., 6.50%, Series G (Bermuda)(c) |
|
74,903 | 1,948,227 | |||||||||
|
|
|||||||||||
PROPERTY CASUALTYFOREIGN |
0.6 | % | ||||||||||
Enstar Group Ltd., 7.00% to 9/1/28, Series D (Bermuda)(c),(e) |
|
123,000 | 3,247,200 |
4
Shares | Value | |||||||||||
Validus Holdings Ltd., 5.80%, Series B (Bermuda)(c) |
|
105,871 | $ | 2,763,233 | ||||||||
|
|
|||||||||||
6,010,433 | ||||||||||||
|
|
|||||||||||
REINSURANCE |
0.3 | % | ||||||||||
Reinsurance Group of America, Inc., 5.75% to 6/15/26, due 6/15/56(a),(b),(e) |
|
138,000 | 3,514,860 | |||||||||
|
|
|||||||||||
REINSURANCEFOREIGN |
0.4 | % | ||||||||||
Arch Capital Group Ltd., 5.25%, Series E (Bermuda)(c) |
|
6,670 | 153,477 | |||||||||
Arch Capital Group Ltd., 5.45%, Series F (Bermuda)(c) |
|
62,999 | 1,484,886 | |||||||||
RenaissanceRe Holdings Ltd., 5.75%, Series F (Bermuda)(c) |
|
94,600 | 2,358,378 | |||||||||
|
|
|||||||||||
3,996,741 | ||||||||||||
|
|
|||||||||||
TOTAL INSURANCE |
35,051,660 | |||||||||||
|
|
|||||||||||
INTEGRATED TELECOMMUNICATIONS SERVICES |
0.2 | % | ||||||||||
AT&T, Inc., 5.625%, due 8/1/67 |
|
70,000 | 1,733,200 | |||||||||
|
|
|||||||||||
PIPELINES |
0.9 | % | ||||||||||
Enbridge, Inc., 6.375% to 4/15/23, due 4/15/78, Series B (Canada)(e) |
|
222,000 | 5,603,280 | |||||||||
Energy Transfer Partners LP, 7.625% to 8/15/23, Series D(c),(e) |
|
135,000 | 3,492,450 | |||||||||
|
|
|||||||||||
9,095,730 | ||||||||||||
|
|
|||||||||||
REAL ESTATE |
3.5 | % | ||||||||||
DIVERSIFIED |
0.5 | % | ||||||||||
Lexington Realty Trust, 6.50%, Series C ($50 Par Value)(a),(c) |
|
76,536 | 3,787,767 | |||||||||
Wells Fargo Real Estate Investment Corp., 6.375%, Series A(c) |
|
60,862 | 1,558,067 | |||||||||
|
|
|||||||||||
5,345,834 | ||||||||||||
|
|
|||||||||||
HOTEL |
0.5 | % | ||||||||||
Hersha Hospitality Trust, 6.875%, Series C(a),(c) |
|
134,345 | 3,300,857 | |||||||||
Sunstone Hotel Investors, Inc., 6.95%, Series E(c) |
|
65,000 | 1,686,100 | |||||||||
|
|
|||||||||||
4,986,957 | ||||||||||||
|
|
|||||||||||
INDUSTRIALS |
0.6 | % | ||||||||||
Monmouth Real Estate Investment Corp., 6.125%, Series C(c) |
|
140,000 | 3,353,000 | |||||||||
STAG Industrial, Inc., 6.875%, Series C(c) |
|
96,000 | 2,500,800 | |||||||||
|
|
|||||||||||
5,853,800 | ||||||||||||
|
|
|||||||||||
NET LEASE |
0.8 | % | ||||||||||
Gramercy Property Trust, 7.125%, Series A(c) |
|
151,270 | 3,778,724 | |||||||||
VEREIT, Inc., 6.70%, Series F(a),(c) |
|
189,902 | 4,719,065 | |||||||||
|
|
|||||||||||
8,497,789 | ||||||||||||
|
|
5
Shares | Value | |||||||||||
SELF STORAGE |
0.3 | % | ||||||||||
National Storage Affiliates Trust, 6.00%, Series A(c) |
|
115,000 | $ | 2,855,450 | ||||||||
|
|
|||||||||||
SHOPPING CENTERSCOMMUNITY CENTER |
0.5 | % | ||||||||||
Cedar Realty Trust, Inc., 7.25%, Series B(a),(c) |
|
33,020 | 815,264 | |||||||||
DDR Corp., 6.50%, Series J(a),(c) |
|
120,000 | 2,929,200 | |||||||||
Saul Centers, Inc., 6.875%, Series C(a),(c) |
|
49,082 | 1,229,504 | |||||||||
|
|
|||||||||||
4,973,968 | ||||||||||||
|
|
|||||||||||
SPECIALTY |
0.3 | % | ||||||||||
Digital Realty Trust, Inc., 6.35%, Series I(c) |
|
140,000 | 3,580,500 | |||||||||
|
|
|||||||||||
TOTAL REAL ESTATE |
|
36,094,298 | ||||||||||
|
|
|||||||||||
TECHNOLOGYSOFTWARE |
0.3 | % | ||||||||||
eBay, Inc., 6.00%, due 2/1/56 |
|
133,000 | 3,489,920 | |||||||||
|
|
|||||||||||
UTILITIES |
0.7 | % | ||||||||||
SCE Trust IV, 5.375% to 9/15/25, Series J(c),(e) |
|
116,165 | 2,830,941 | |||||||||
SCE Trust V, 5.45% to 3/15/26, Series K(a),(b),(c),(e) |
|
82,931 | 2,047,566 | |||||||||
SCE Trust VI, 5.00%(c) |
|
132,644 | 2,865,111 | |||||||||
|
|
|||||||||||
7,743,618 | ||||||||||||
|
|
|||||||||||
TOTAL PREFERRED SECURITIES$25 PAR VALUE |
|
190,481,103 | ||||||||||
|
|
|||||||||||
Principal Amount |
||||||||||||
PREFERRED SECURITIESCAPITAL SECURITIES |
45.1 | % | ||||||||||
BANKS |
8.7 | % | ||||||||||
Bank of America Corp., 6.25% to 9/5/24, Series X(c),(e) |
|
$ | 5,800,000 | 6,126,250 | ||||||||
Bank of America Corp., 6.50% to 10/23/24, Series Z(a),(c),(e) |
|
5,713,000 | 6,177,181 | |||||||||
Citigroup Capital III, 7.625%, due 12/1/36(a) |
|
4,700,000 | 5,977,403 | |||||||||
Citigroup, Inc., 5.90% to 2/15/23(c),(e) |
|
2,000,000 | 2,050,000 | |||||||||
Citigroup, Inc., 6.125% to 11/15/20, Series R(c),(e) |
|
4,806,000 | 5,013,259 | |||||||||
Citigroup, Inc., 6.25% to 8/15/26, Series T(a),(c),(e) |
|
2,825,000 | 2,952,125 | |||||||||
CoBank ACB, 6.25% to 10/1/22, Series F(a),(c),(e) |
|
33,000 | | 3,448,500 | ||||||||
CoBank ACB, 6.125%, Series G(a),(c) |
|
46,500 | | 4,673,250 | ||||||||
CoBank ACB, 6.25% to 10/1/26, Series I(a),(c),(e) |
|
4,334,000 | 4,615,710 | |||||||||
Farm Credit Bank of Texas, 6.75% to 9/15/23, 144A(a),(b),(c),(e),(f) |
|
63,000 | | 6,772,500 | ||||||||
Farm Credit Bank of Texas, 10.00%, Series I(a),(c) |
|
6,000 | | 6,870,000 | ||||||||
Goldman Sachs Group, Inc./The, 5.70% to 5/10/19, Series L(c),(e) |
|
1,520,000 | 1,534,820 |
6
Principal Amount |
Value | |||||||||||
JPMorgan Chase & Co., 5.809%, (3 Month US LIBOR + 3.47%), Series I (FRN)(a),(c),(d) |
|
$ | 8,000,000 | $ | 8,044,000 | |||||||
JPMorgan Chase & Co., 6.75% to 2/1/24, Series S(a),(c),(e) |
|
6,650,000 | 7,265,125 | |||||||||
JPMorgan Chase & Co., 5.30% to 5/1/20, Series Z(c),(e) |
|
1,500,000 | 1,537,500 | |||||||||
PNC Financial Services Group, Inc., 6.75% to 8/1/21(c),(e) |
|
2,775,000 | 3,005,325 | |||||||||
Wells Fargo & Co., 6.104%, (3 Month US LIBOR + 3.77%), |
|
3,800,000 | 3,855,822 | |||||||||
Wells Fargo & Co., 5.90% to 6/15/24, Series S(c),(e) |
|
1,750,000 | 1,778,438 | |||||||||
Wells Fargo & Co., 5.875% to 6/15/25, Series U(c),(e) |
|
4,330,000 | 4,560,096 | |||||||||
Wells Fargo Capital X, 5.95%, due 12/15/36, (TruPS)(a) |
|
3,700,000 | 3,977,500 | |||||||||
|
|
|||||||||||
90,234,804 | ||||||||||||
|
|
|||||||||||
BANKSFOREIGN |
14.2 | % | ||||||||||
Banco Bilbao Vizcaya Argentaria SA, 8.875% to 4/14/21 (EUR) (Spain)(c),(e),(g),(h) |
|
2,600,000 | 3,380,979 | |||||||||
Banco Santander SA, 6.75% to 4/25/22 (EUR) (Spain)(c),(e),(g),(h) |
|
1,000,000 | 1,253,923 | |||||||||
Bank of China Hong Kong Ltd., 5.90% to 9/14/23, 144A (Hong Kong)(c),(e),(f) |
|
3,300,000 | 3,305,976 | |||||||||
Bankia SA, 6.375% to 9/19/23 (EUR) (Spain)(c),(e),(g),(h) |
|
2,000,000 | 2,362,343 | |||||||||
Barclays PLC, 7.75% to 9/15/23 (United Kingdom)(c),(e),(h) |
|
3,800,000 | 3,819,000 | |||||||||
Barclays PLC, 7.875% to 3/15/22 (United Kingdom)(c),(e),(g),(h) |
|
3,400,000 | 3,523,345 | |||||||||
Barclays PLC, 8.25% to 12/15/18 (United Kingdom)(a),(c),(e),(h) |
|
2,870,000 | 2,898,792 | |||||||||
BNP Paribas SA, 7.195% to 6/25/37, 144A (France)(a),(c),(e),(f) |
|
5,300,000 | 5,591,500 | |||||||||
BNP Paribas SA, 7.375% to 8/19/25, 144A (France)(c),(e),(f),(h) |
|
2,600,000 | 2,736,370 | |||||||||
BNP Paribas SA, 7.625% to 3/30/21, 144A (France)(a),(c),(e),(f),(h) |
|
8,000,000 | 8,420,000 | |||||||||
Cooperative Rabobank UA, 11.00% to 6/30/19, 144A (Netherlands)(a),(c),(e),(f) |
|
10,375,000 | 10,989,719 | |||||||||
Credit Agricole SA, 8.125% to 12/23/25, 144A (France)(a),(c),(e),(f),(h) |
|
7,300,000 | 8,048,148 | |||||||||
Credit Suisse Group AG, 7.125% to 7/29/22 (Switzerland)(c),(e),(g),(h) |
|
3,400,000 | 3,489,250 | |||||||||
Credit Suisse Group AG, 7.50% to 7/17/23, 144A (Switzerland)(c),(e),(f),(h) |
|
3,600,000 | 3,712,500 | |||||||||
DNB Bank ASA, 6.50% to 3/26/22 (Norway)(c),(e),(g),(h) |
|
4,700,000 | 4,823,976 | |||||||||
Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (Germany)(a),(f) |
|
3,835,906 | 4,748,852 | |||||||||
HSBC Capital Funding LP, 10.176% to 6/30/30, 144A |
|
5,192,000 | 7,687,379 | |||||||||
HSBC Holdings PLC, 6.25% to 3/23/23 (United Kingdom)(c),(e),(h) |
|
2,800,000 | 2,793,000 | |||||||||
HSBC Holdings PLC, 6.375% to 9/17/24 (United Kingdom)(c),(e),(h) |
|
1,600,000 | 1,590,464 |
7
Principal Amount |
Value | |||||||||||
HSBC Holdings PLC, 6.375% to 3/30/25 (United Kingdom)(a),(b),(c),(e),(h) |
|
$ | 4,600,000 | $ | 4,571,250 | |||||||
HSBC Holdings PLC, 6.875% to 6/1/21 (United Kingdom)(c),(e),(h) |
|
5,200,000 | 5,395,000 | |||||||||
ING Groep N.V., 6.875% to 4/16/22 (Netherlands)(c),(e),(g),(h) |
|
3,600,000 | 3,662,935 | |||||||||
Lloyds Banking Group PLC, 7.50% to 6/27/24 (United Kingdom)(a),(c),(e),(h) |
|
3,266,000 | 3,376,227 | |||||||||
Macquarie Bank Ltd./London, 6.125% to 3/8/27, 144A (Australia)(c),(e),(f),(h) |
|
1,200,000 | 1,098,000 | |||||||||
Nationwide Building Society, 10.25% (GBP) (United Kingdom)(c),(g) |
|
1,815,000 | 3,542,593 | |||||||||
Royal Bank of Scotland Group PLC, 7.648% to 9/30/31 (United Kingdom)(a),(c),(e) |
|
3,541,000 | 4,448,381 | |||||||||
Royal Bank of Scotland Group PLC, 8.00% to 8/10/25 (United Kingdom)(c),(e),(h) |
|
2,000,000 | 2,123,760 | |||||||||
Royal Bank of Scotland Group PLC, 8.625% to 8/15/21 (United Kingdom)(a),(c),(e),(h) |
|
9,400,000 | 10,093,250 | |||||||||
Skandinaviska Enskilda Banken AB, 5.75% to 5/13/20, Series EMTN (Sweden)(c),(e),(g),(h) |
|
1,400,000 | 1,412,074 | |||||||||
Societe Generale SA, 7.375% to 9/13/21, 144A (France)(c),(e),(f),(h) |
|
4,200,000 | 4,341,750 | |||||||||
Standard Chartered PLC, 6.50% to 4/2/20, 144A (United Kingdom)(c),(e),(f),(h) |
|
1,600,000 | 1,598,627 | |||||||||
Standard Chartered PLC, 7.50% to 4/2/22, 144A (United Kingdom)(c),(e),(f),(h) |
|
400,000 | 412,000 | |||||||||
Standard Chartered PLC, 7.75% to 4/2/23, 144A (United Kingdom)(c),(e),(f),(h) |
|
800,000 | 820,000 | |||||||||
Swedbank AB, 6.00% to 3/17/22 (Sweden)(c),(e),(g),(h) |
|
4,200,000 | 4,261,354 | |||||||||
UBS Group AG, 7.00% to 2/19/25 (Switzerland)(c),(e),(g),(h) |
|
2,200,000 | 2,341,214 | |||||||||
UBS Group AG, 7.125% to 2/19/20 (Switzerland)(c),(e),(g),(h) |
|
3,000,000 | 3,076,890 | |||||||||
UBS Group AG, 7.125% to 8/10/21 (Switzerland)(c),(e),(g),(h) |
|
5,000,000 | 5,254,660 | |||||||||
|
|
|||||||||||
147,005,481 | ||||||||||||
|
|
|||||||||||
COMMUNICATIONSTOWERS |
0.4 | % | ||||||||||
Crown Castle International Corp., 6.875%, due 8/1/20, Series A (Convertible) |
|
3,900 | | 4,213,404 | ||||||||
|
|
|||||||||||
ELECTRICINTEGRATED ELECTRIC |
0.4 | % | ||||||||||
CenterPoint Energy, Inc., 6.125% to 9/1/23, Series A(c),(e) |
|
4,250,000 | 4,329,688 | |||||||||
|
|
8
Principal Amount |
Value | |||||||||||
FOOD |
1.8 | % | ||||||||||
Dairy Farmers of America, Inc., 7.875%, 144A(c),(f),(i) |
52,100 | | $ | 5,296,903 | ||||||||
Dairy Farmers of America, Inc., 7.875%, Series B, 144A(c),(f) |
|
82,000 | | 9,512,000 | ||||||||
Land O Lakes, Inc., 7.00%, 144A(c),(f) |
|
$ | 1,650,000 | 1,674,750 | ||||||||
Land O Lakes, Inc., 7.25%, 144A(c),(f) |
|
1,595,000 | 1,662,787 | |||||||||
|
|
|||||||||||
18,146,440 | ||||||||||||
|
|
|||||||||||
INDUSTRIALSDIVERSIFIED MANUFACTURING |
1.1 | % | ||||||||||
General Electric Co., 5.00% to 1/21/21, Series D(a),(c),(e) |
11,636,000 | 11,358,190 | ||||||||||
|
|
|||||||||||
INSURANCE |
12.6 | % | ||||||||||
LIFE/HEALTH INSURANCE |
4.9 | % | ||||||||||
MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A(f) |
|
1,381,000 | 1,698,630 | |||||||||
MetLife, Inc., 10.75%, due 8/1/39(a) |
|
3,592,000 | 5,522,700 | |||||||||
MetLife, Inc., 9.25%, due 4/8/38, 144A(a),(f) |
|
9,265,000 | 12,507,750 | |||||||||
MetLife, Inc., 5.25% to 6/15/20, Series C(c),(e) |
|
4,266,000 | 4,332,123 | |||||||||
MetLife, Inc., 5.875% to 3/15/28, Series D(c),(e) |
|
1,650,000 | 1,691,250 | |||||||||
Prudential Financial, Inc., 5.20% to 3/15/24, due 3/15/44(e) |
|
2,000,000 | 1,992,500 | |||||||||
Prudential Financial, Inc., 5.625% to 6/15/23, due 6/15/43(a),(e) |
|
10,464,000 | 10,921,800 | |||||||||
Prudential Financial, Inc., 5.70% to 9/15/28, due 9/15/48(e) |
|
3,400,000 | 3,388,372 | |||||||||
Prudential Financial, Inc., 5.875% to 9/15/22, due 9/15/42(e) |
|
1,500,000 | 1,588,125 | |||||||||
Voya Financial, Inc., 5.65% to 5/15/23, due 5/15/53(a),(e) |
|
5,550,000 | 5,607,442 | |||||||||
Voya Financial, Inc., 6.125% to 9/15/23, Series A(c),(e) |
|
1,550,000 | 1,577,125 | |||||||||
|
|
|||||||||||
50,827,817 | ||||||||||||
|
|
|||||||||||
LIFE/HEALTH INSURANCEFOREIGN |
5.6 | % | ||||||||||
Dai-ichi Life Insurance Co. Ltd., 4.00% to 7/24/26, 144A (Japan)(c),(e),(f) |
|
5,100,000 | 4,768,500 | |||||||||
Dai-ichi Life Insurance Co. Ltd., 5.10% to 10/28/24, 144A (Japan)(a),(c),(e),(f) |
|
3,400,000 | 3,465,314 | |||||||||
Dai-ichi Life Insurance Co. Ltd., 7.25% to 7/25/21, 144A (Japan)(c),(e),(f) |
|
1,000,000 | 1,082,500 | |||||||||
Fukoku Mutual Life Insurance Co., 6.50% to 9/19/23 (Japan)(c),(e),(g) |
|
3,064,000 | 3,305,443 | |||||||||
Hanwha Life Insurance Co., Ltd., 4.70% to 4/23/23, due 4/23/48, 144A (South Korea)(e),(f) |
|
3,200,000 | 3,060,061 | |||||||||
La Mondiale SAM, 4.80% to 1/18/28, due 1/18/48 (France)(e),(g) |
|
1,400,000 | 1,229,880 | |||||||||
La Mondiale Vie, 7.625% to 4/23/19 (France)(c),(e),(g) |
|
4,500,000 | 4,608,707 | |||||||||
Meiji Yasuda Life Insurance Co., 5.10% to 4/26/28, due 4/26/48,
144A |
|
2,000,000 | 2,017,500 |
9
Principal Amount |
Value | |||||||||||
Meiji Yasuda Life Insurance Co., 5.20% to 10/20/25, due 10/20/45, 144A (Japan)(a),(e),(f) |
|
$ | 7,350,000 | $ | 7,469,438 | |||||||
Nippon Life Insurance Co., 4.70% to 1/20/26, due 1/20/46, 144A (Japan)(a),(e),(f) |
|
5,600,000 | 5,551,000 | |||||||||
Nippon Life Insurance Co., 5.00% to 10/18/22, due 10/18/42, 144A (Japan)(e),(f) |
|
3,100,000 | 3,173,377 | |||||||||
Nippon Life Insurance Co., 5.10% to 10/16/24, due 10/16/44, 144A (Japan)(e),(f) |
|
1,000,000 | 1,017,500 | |||||||||
Phoenix Group Holdings, 5.75% to 4/26/28 (GBP) (United Kingdom)(c),(e),(g),(h) |
|
2,600,000 | 2,994,888 | |||||||||
Phoenix Group Holdings, 5.375%, due 7/6/27, Series EMTN (United Kingdom)(g) |
|
3,800,000 | 3,508,156 | |||||||||
Prudential PLC, 6.50% to 10/20/28, due 10/20/48, Series EMTN (United Kingdom)(e),(g) |
|
2,100,000 | 2,110,500 | |||||||||
Sumitomo Life Insurance Co., 4.00% to 9/14/27, due 9/14/77, 144A (Japan)(e),(f) |
|
2,200,000 | 2,058,276 | |||||||||
Sumitomo Life Insurance Co., 6.50% to 9/20/23, due 9/20/73, 144A (Japan)(e),(f) |
|
6,200,000 | 6,727,000 | |||||||||
|
|
|||||||||||
58,148,040 | ||||||||||||
|
|
|||||||||||
MULTI-LINE |
0.2% | |||||||||||
American International Group, Inc., 5.75% to 4/1/28, due 4/1/48, Series A-9(e) |
|
860,000 | 837,425 | |||||||||
Hartford Financial Services Group, Inc./The, 4.439%, (3 Month US LIBOR + 2.125), due 2/12/47, 144A, Series ICON (FRN)(d),(f) |
|
1,000,000 | 942,500 | |||||||||
|
|
|||||||||||
1,779,925 | ||||||||||||
|
|
|||||||||||
PROPERTY CASUALTY |
0.4% | |||||||||||
Assurant, Inc., 7.00% to 3/27/28, due 3/27/48(e) |
|
3,150,000 | 3,213,000 | |||||||||
Liberty Mutual Group, Inc., 7.80%, due 3/15/37, 144A(f) |
|
1,147,500 | 1,345,444 | |||||||||
|
|
|||||||||||
4,558,444 | ||||||||||||
|
|
|||||||||||
PROPERTY CASUALTYFOREIGN |
1.5% | |||||||||||
QBE Insurance Group Ltd., 6.75% to 12/2/24, due 12/2/44 (Australia)(e),(g) |
|
6,003,000 | 6,303,150 | |||||||||
QBE Insurance Group Ltd., 5.875% to 6/17/26, due 6/17/46, Series EMTN (Australia)(e),(g) |
|
2,200,000 | 2,198,499 | |||||||||
Sompo Japan Nipponkoa Insurance, Inc., 5.325% to 3/28/23, due 3/28/73, 144A (Japan)(e),(f) |
|
3,200,000 | 3,316,000 |
10
Principal Amount |
Value | |||||||||||
VIVAT NV, 6.25% to 11/16/22 (EUR) (Netherlands)(c),(e),(g) |
$ | 3,200,000 | $ | 3,248,973 | ||||||||
|
|
|||||||||||
15,066,622 | ||||||||||||
|
|
|||||||||||
TOTAL INSURANCE |
|
130,380,848 | ||||||||||
|
|
|||||||||||
INTEGRATED TELECOMMUNICATIONS SERVICES |
0.7 | % | ||||||||||
Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)(a),(f) |
|
3,254 | | 3,514,320 | ||||||||
Vodafone Group PLC, 6.25% to 7/3/24, due 10/3/78 (United Kingdom)(e),(g) |
|
3,400,000 | 3,390,874 | |||||||||
|
|
|||||||||||
6,905,194 | ||||||||||||
|
|
|||||||||||
MATERIALMETALS & MINING |
1.2 | % | ||||||||||
BHP Billiton Finance USA Ltd., 6.75% to 10/20/25, due 10/19/75, 144A (Australia)(a),(e),(f) |
|
9,000,000 | 9,888,750 | |||||||||
BHP Billiton Finance USA Ltd., 6.25% to 10/19/20, due 10/19/75, 144A (Australia)(e),(f) |
|
2,000,000 | 2,091,000 | |||||||||
|
|
|||||||||||
11,979,750 | ||||||||||||
|
|
|||||||||||
PIPELINES |
1.4 | % | ||||||||||
Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada)(e) |
|
2,750,000 | 2,662,730 | |||||||||
Transcanada Trust, 5.30% to 3/15/27, due 3/15/77 (Canada)(e) |
|
2,365,000 | 2,254,141 | |||||||||
Transcanada Trust, 5.625% to 5/20/25, due 5/20/75 (Canada)(e) |
|
2,700,000 | 2,652,750 | |||||||||
Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)(a),(e) |
|
7,002,000 | 7,168,297 | |||||||||
|
|
|||||||||||
14,737,918 | ||||||||||||
|
|
|||||||||||
UTILITIES |
2.6 | % | ||||||||||
ELECTRIC UTILITIES |
0.3 | % | ||||||||||
Southern Co./The, 5.50% to 3/15/22, due 3/15/57, Series B(e) |
|
3,200,000 | 3,245,954 | |||||||||
|
|
|||||||||||
ELECTRIC UTILITIESFOREIGN |
2.0 | % | ||||||||||
Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)(a),(b),(e) |
|
10,820,000 | 11,577,400 | |||||||||
Enel SpA, 8.75% to 9/24/23, due 9/24/73, 144A (Italy)(a),(e),(f) |
|
8,110,000 | 9,002,100 | |||||||||
|
|
|||||||||||
20,579,500 | ||||||||||||
|
|
|||||||||||
MULTI-UTILITIES |
0.3 | % | ||||||||||
NiSource, Inc., 5.65% to 6/15/23, 144A(c),(e),(f) |
|
3,535,000 | 3,504,069 | |||||||||
|
|
|||||||||||
TOTAL UTILITIES |
27,329,523 | |||||||||||
|
|
|||||||||||
TOTAL PREFERRED SECURITIESCAPITAL SECURITIES |
466,621,240 | |||||||||||
|
|
11
Shares | Value | |||||||||||
SHORT-TERM INVESTMENTS |
1.7 | % | ||||||||||
MONEY MARKET FUNDS |
||||||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 1.95%(j) |
16,810,648 | $ | 16,810,648 | |||||||||
|
|
|||||||||||
TOTAL SHORT-TERM INVESTMENTS |
16,810,648 | |||||||||||
|
|
|||||||||||
TOTAL INVESTMENTS IN SECURITIES (Identified cost$1,169,968,358) |
133.5 | % | 1,380,278,231 | |||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS |
(33.5 | ) | (346,054,131 | ) | ||||||||
|
|
|
|
|||||||||
NET ASSETS (Equivalent to $21.74 per share based on 47,566,736 shares of common stock outstanding) |
100.0 | % | $ | 1,034,224,100 | ||||||||
|
|
|
|
Forward Foreign Currency Exchange Contracts
Counterparty |
Contracts |
In Exchange |
Settlement |
Unrealized Appreciation (Depreciation) |
||||||||||||||
Brown Brothers Harriman |
EUR | 7,125,245 | USD | 8,285,377 | 10/2/18 | $ | 12,608 | |||||||||||
Brown Brothers Harriman |
GBP | 5,224,787 | USD | 6,781,303 | 10/2/18 | (28,686 | ) | |||||||||||
Brown Brothers Harriman |
USD | 6,820,594 | GBP | 5,224,787 | 10/2/18 | (10,605 | ) | |||||||||||
Brown Brothers Harriman |
USD | 8,281,173 | EUR | 7,125,245 | 10/2/18 | (8,404 | ) | |||||||||||
Brown Brothers Harriman |
EUR | 6,107,301 | USD | 7,114,823 | 11/2/18 | 6,776 | ||||||||||||
Brown Brothers Harriman |
GBP | 5,135,755 | USD | 6,713,099 | 11/2/18 | 9,962 | ||||||||||||
|
|
|||||||||||||||||
$ | (18,349 | ) | ||||||||||||||||
|
|
The total amount of all forward foreign currency exchange contracts as presented in the table above, is representative of the volume of activity for this derivative type during the nine months ended September 30, 2018.
12
Glossary of Portfolio Abbreviations
EMTN | Euro Medium Term Note | |
EUR | Euro Currency | |
FRN | Floating Rate Note | |
GBP | Great British Pound | |
LIBOR | London Interbank Offered Rate | |
REIT | Real Estate Investment Trust | |
TruPS | Trust Preferred Securities | |
USD | United States Dollar |
Note: Percentages indicated are based on the net assets of the Fund.
| Represents shares. |
(a) | All or a portion of the security is pledged as collateral in connection with the Funds credit agreement. $713,253,169 in aggregate has been pledged as collateral. |
(b) | A portion of the security has been rehypothecated in connection with the Funds credit agreement. $320,732,259 in aggregate has been rehypothecated. |
(c) | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. |
(d) | Variable rate. Rate shown is in effect at September 30, 2018. |
(e) | Security converts to floating rate after the indicated fixed-rate coupon period. |
(f) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold to qualified institutional buyers. Aggregate holdings amounted to $176,630,790 which represents 17.1% of the net assets of the Fund, of which 0.5% are illiquid. |
(g) | Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $75,284,606 which represents 7.3% of the net assets of the Fund, of which 0.0% are illiquid. |
(h) | Contingent Capital security (CoCo). CoCos are preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. Aggregate holdings amounted to $109,685,969 which represents 10.6% of the net assets of the Fund (7.9% of the managed assets of the Fund). |
(i) | Security value is determined based on significant unobservable inputs (Level 3). |
(j) | Rate quoted represents the annualized seven-day yield. |
13
Sector Summary |
% of Managed Assets |
|||
Other |
28.2 | |||
Insurance (Preferred) |
11.9 | |||
Residential (Common) |
11.4 | |||
BanksForeign (Preferred) |
10.6 | |||
Banks (Preferred) |
10.2 | |||
Shopping Centers (Common) |
6.8 | |||
Office (Common) |
6.1 | |||
Data Centers (Common) |
5.9 | |||
Health Care (Common) |
5.5 | |||
Hotel (Common) |
3.4 | |||
|
|
|||
100.0 | ||||
|
|
14
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
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. Forward foreign currency exchange 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 (including NASDAQ) 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 OTC market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be OTC, are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.
Fixed-income securities are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at net asset value (NAV).
The policies and procedures approved by the Funds Board of Directors delegate authority to make fair value determinations to the investment manager, subject to the oversight of the Board of Directors. The investment manager has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
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 Funds Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.
The Funds use of fair value pricing may cause the NAV of Fund shares to differ from the NAV 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 Funds 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 Funds own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing investments may or may not be an indication of the risk associated with those investments.
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
The following is a summary of the inputs used as of September 30, 2018 in valuing the Funds investments carried at value:
Total | Quoted Prices in Active Markets for Identical Investments (Level 1) |
Other Significant Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
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Common Stock |
$ | 706,365,240 | $ | 706,365,240 | $ | | $ | | ||||||||
Preferred Securities$25 Par Value: |
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Electric-Integrated Electric |
3,206,625 | | 3,206,625 | | ||||||||||||
Real EstateHotel |
4,986,957 | 3,300,857 | 1,686,100 | | ||||||||||||
Real EstateIndustrials |
5,853,800 | 3,353,000 | 2,500,800 | | ||||||||||||
Other Industries |
176,433,721 | 176,433,721 | | | ||||||||||||
Preferred SecuritiesCapital Securities: |
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Food |
18,146,440 | | 12,849,537 | 5,296,903 | ||||||||||||
Other Industries |
448,474,800 | | 448,474,800 | | ||||||||||||
Short-Term Investments |
16,810,648 | | 16,810,648 | | ||||||||||||
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Total Investments in Securities(a) |
$ | 1,380,278,231 | $ | 889,452,818 | $ | 485,528,510 | $ | 5,296,903 | (b) | |||||||
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Forward Foreign Currency Exchange Contracts |
$ | 29,346 | $ | | $ | 29,346 | $ | | ||||||||
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Total Derivative Assets(a) |
$ | 29,346 | $ | | $ | 29,346 | $ | | ||||||||
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Forward Foreign Currency Exchange Contracts |
$ | (47,695 | ) | $ | | $ | (47,695 | ) | $ | | ||||||
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Total Derivative Liabilities(a) |
$ | (47,695 | ) | $ | | $ | (47,695 | ) | $ | | ||||||
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(a) | Portfolio holdings are disclosed individually on the Schedule of Investments. |
(b) | Level 3 investments are valued by a third-party pricing service. The inputs for these securities are not readily available or cannot be reasonably estimated. A change in the significant unobservable inputs could result in a significantly lower or higher value in such Level 3 investments. |
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
Preferred Securities Capital Securities Food |
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Balance as of December 31, 2017 |
$ | 5,471,630 | ||
Change in unrealized appreciation (depreciation) |
(174,727 | ) | ||
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Balance as of September 30, 2018 |
$ | 5,296,903 | ||
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The change in unrealized appreciation (depreciation) attributable to securities owned on September 30, 2018 which were valued using significant unobservable inputs (Level 3) amounted to $(174,727).
Note 2. Derivative Instruments
Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts to hedge the currency exposure associated with certain of its non-U.S. dollar denominated securities. A forward foreign currency exchange contract is a commitment between two parties to purchase or sell foreign currency at a set price on a future date. The market value of a forward foreign currency exchange contract fluctuates with changes in foreign currency exchange rates. These contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on forward foreign currency exchange contracts. 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 forward foreign currency exchange contracts. 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.
Item 2. Controls and Procedures
(a) | The registrants principal executive officer and principal financial officer have concluded that the registrants 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 of 1934 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 registrants 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 registrants 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 and Principal Executive Officer | ||
Date: November 21, 2018 |
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 Title: President and Principal Executive Officer |
Name: James Giallanza Title: Principal Financial Officer | |||||||
Date: November 21, 2018 |