Understanding Distribution Sources for Cohen & Steers Realty Fund

Exploring Distribution Sources of Cohen & Steers Quality Income Realty Fund, Inc. (RQI)

This article delves into the important aspects of Cohen & Steers Quality Income Realty Fund, Inc. (RQI) to inform shareholders about its distribution sources and performance metrics. With a meticulous approach toward managed distributions, this fund aims to bolster shareholder returns through regular, monthly payouts.

Managed Distribution Policy Overview

Established over a decade ago, the managed distribution policy by RQI allows for a systematic approach to delivering consistent returns to investors. This structure adopts a fixed monthly distribution per share, designed to enhance long-term capital gains over the fiscal year. The flexibility of this policy enables the Fund to distribute capital gains in a timely manner, which is crucial for shareholder satisfaction.

Continuation of the Policy

The Board of Directors maintains the ability to modify or suspend this distribution policy at any given time. Such adjustments may influence the market price of RQI's shares, which is vital for potential and existing investors to consider.

Tax Implications of Distributions

Distributions from RQI may stem from diverse sources: long-term or short-term capital gains, net investment income, or returns of capital, each having different tax consequences for shareholders. A return of capital can reduce one’s tax basis in their shares, an essential detail for tax reporting purposes. Tax characteristics of the distributions generally become clearer after the year-end, where formal documentation like Form 1099-DIV outlines the specifics for shareholders.

Current Distribution Estimates and Year-to-Date Performance

For this fiscal year, RQI has outlined current and cumulative distribution estimates, valuable data per common share. Shareholders receive updates alongside their monthly distribution notices. The amount of distributions may fluctuate, reflecting changes in market conditions and portfolio allocations.

Distribution Details Summary

As of the current fiscal cycle:

• Net Investment Income: $0.0157 per share (19.63% of current distribution)
• Net Realized Short-Term Capital Gains: $0.0000 per share
• Net Realized Long-Term Capital Gains: $0.0643 per share (80.37% of current distribution)
• Total Distribution Amount: $0.0800 with a total return of $0.8800 for the year.

These figures represent the foundation of financial decision-making for investors considering their involvement with RQI.

Understanding the Fund’s Performance Metrics

Investors can assess the Year-to-date Cumulative Total Return, which captures performance from the beginning of the year to recent metrics. Noteworthy is the Cumulative Distribution Rate that offers insight into the balance between returns and distributions to maintain investor interest.

Long-term Performance Reflection

As shareholders evaluate the Cumulative Total Return and the associated Annual Returns over the last five years, a clear picture of investment growth emerges. As of the latest data, the average annual total return stands at approximately 6.31%. Such metrics are crucial for understanding the overall efficacy of the Fund's strategy.

Investor Considerations and Tax Guidance

Before investing in Cohen & Steers Quality Income Realty Fund, it is imperative for potential investors to consider their investment objectives in conjunction with risks and charges associated with the Fund. Thorough analysis of periodic reports and regulatory filings is recommended for informed decision-making.

Expert Guidance for Tax Reporting

Investors should receive a Form 1099-DIV at the end of the year, detailing how to report the Fund’s distributions effectively. Such preparation is vital for accurate federal income tax reporting.

Frequently Asked Questions

What is the managed distribution policy of RQI?

The managed distribution policy aims to provide shareholders with consistent monthly distributions, reflecting the Fund's ability to generate returns throughout the fiscal year.

How does the Fund generate its distributions?

Distributions can arise from various sources including net investment income, long-term capital gains, and returns of capital, impacting the tax implications for shareholders.

Where can I find more information about RQI?

Investors can explore detailed reports and regulatory filings directly on the official Cohen & Steers website for comprehensive insights.

What are the current estimated distributions from RQI?

The current distribution estimates for RQI include specific per share amounts for net investment income and capital gains, with a total distribution of $0.0800.

What performance metrics should investors look at?

Key metrics include Year-to-date Cumulative Total Return and Average Annual Total Return, which provide insights into the financial growth of the Fund over time.

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