Understanding Distribution Sources for Cohen & Steers Realty

Insights on Distribution Sources for Cohen & Steers Quality Income Realty Fund, Inc.

Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) provides essential information regarding the sources of its upcoming distributions. This notification is designed to keep shareholders informed about how distribution amounts are determined and the various factors that contribute to these figures.

Managed Distribution Policy Explained

In its ongoing effort to deliver consistent returns, the Fund adopted a managed distribution policy which was established to optimize long-term total return potential. Through this policy, it aims to provide regular monthly distributions to its shareholders. By implementing this approach, the Fund gains the flexibility to manage capital gains more effectively, allowing for better distribution opportunities throughout the year.

Flexibility to Optimize Returns

The primary objective of the managed distribution policy is to stabilize cash flow for investors while factoring in long-term capital gains. The Board of Directors has authority over this plan and can make amendments as necessary. This flexibility aims to enhance performance without compromising the integrity of the Fund's strategies. It's critical for investors to understand that the market price of shares may react to any changes in this policy.

Types of Distributions

The sources of distributions from the Fund may include various components, notably long-term capital gains, short-term capital gains, net investment income, and possibly returns of capital as defined by federal tax regulations. When a distribution exceeds the net investment income, it categorizes as a return of capital, which is significant for tax reporting purposes.

Tax Implications of Distributions

Shareholders should be aware that returns of capital are not immediately taxable. Instead, these amounts adjust the shareholder's tax basis in their shares of the Fund. It’s important for investors to monitor how distributions characterized as capital gains or returns of capital may influence their tax reporting. This categorization can shift over the year as the final tax characteristics are established, typically detailed on the Form 1099-DIV sent to shareholders at year-end.

Monitoring Monthly Distributions

For each monthly distribution, the Fund commits to providing updated information on its website, ensuring that shareholders receive timely notifications. This transparent approach aligns with investor interest and helps them remain informed about their investment’s financial environment.

Current Distribution Insights

The table below summarizes estimated amounts for recent distributions, covering crucial details such as source, amount per share, and percentage of the current distribution:

DISTRIBUTION ESTIMATES

Source: Net Investment Income, Net Realized Short-Term Capital Gains, Net Realized Long-Term Capital Gains, Return of Capital.

Insights into these components provide shareholders a clearer picture of how their total current distributions are formed:

• Net Investment Income: This is crucial as it contributes a significant percentage of the distribution.
• Long-Term Capital Gains: This forms a more substantial part of the total distribution over time.
• Return of Capital: While minimally contributing in some months, this affects the overall tax reporting for shareholders.

Fund Performance and Returns

As investors evaluate their stakes, a performance overview is vital. The Fund’s year-to-date cumulative total return reflects the ongoing journey of investment performance as it relates to the cumulative distribution rate. Shareholders should closely monitor these metrics, particularly for understanding how the current annualized distribution aligns with long-term performance goals.

Annualized Distribution Rates

As of recent evaluations, the annualized distribution rate showcases how effectively the Fund is generating income. This is paramount for shareholders looking for both immediate returns and long-term growth through investment in the Fund. Transparent documentation of these rates helps in making informed investment decisions.

Engaging with Cohen & Steers

Investors are encouraged to engage in ongoing discussions regarding the Fund’s performance. Understanding the investment objectives, risks, charges, and fees associated empowers investors to make sound decisions. Regular updates through their website provide essential insights, ensuring all shareholders can access the information needed to understand their investments comprehensively.

Frequently Asked Questions

What is the managed distribution policy of the Fund?

The managed distribution policy enables the Fund to deliver monthly distributions by managing long-term capital efficiently.

How are capital gains characterized for tax purposes?

Distributions may represent long-term capital gains; these amounts must be reported for tax but are only taxed if realized upon sale.

What is a return of capital?

A return of capital is a distribution beyond the current income, reducing the tax basis of an investment, which is not immediately taxable.

How do I access updated distribution information?

Shareholders can visit the Fund’s website for current distribution updates and related information to stay informed.

Can I track the Fund’s performance over time?

Yes, performance data is regularly shared by the Fund, allowing investors to track year-to-date returns and distribution adjustments.

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