UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT 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 offices)

 

(Zip code)

 

Tina M. Payne

280 Park Avenue

New York, NY 10017

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(212) 832-3232

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

September 30, 2016

 

 


 

Item 1. Schedule of Investments

 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

September 30, 2016 (Unaudited)

 

 

 

Number
of Shares

 

Value

 

COMMON STOCK—REAL ESTATE 60.5%

 

 

 

 

 

DIVERSIFIED 3.0%

 

 

 

 

 

American Assets Trust(a)

 

214,357

 

$

9,298,807

 

Vornado Realty Trust(a),(b)

 

236,186

 

23,904,385

 

 

 

 

 

33,203,192

 

HEALTH CARE 7.5%

 

 

 

 

 

HCP(a),(b)

 

660,379

 

25,061,383

 

Healthcare Trust of America, Class A(a),(b)

 

549,593

 

17,927,724

 

Omega Healthcare Investors(a),(b)

 

371,113

 

13,155,956

 

Physicians Realty Trust(a),(b)

 

740,460

 

15,949,508

 

Ventas

 

134,004

 

9,464,703

 

 

 

 

 

81,559,274

 

HOTEL 2.7%

 

 

 

 

 

Host Hotels & Resorts(a),(b)

 

803,427

 

12,509,358

 

Pebblebrook Hotel Trust

 

219,895

 

5,849,207

 

Sunstone Hotel Investors(a),(b)

 

856,730

 

10,957,577

 

 

 

 

 

29,316,142

 

INDUSTRIALS 3.4%

 

 

 

 

 

Prologis(a),(b)

 

685,497

 

36,701,509

 

 

 

 

 

 

 

NET LEASE 4.3%

 

 

 

 

 

Four Corners Property Trust

 

214,456

 

4,574,346

 

Gaming and Leisure Properties

 

264,452

 

8,845,919

 

National Retail Properties(a),(b)

 

182,790

 

9,294,872

 

Spirit Realty Capital(a),(b)

 

1,299,599

 

17,323,655

 

STORE Capital Corp.

 

244,923

 

7,217,881

 

 

 

 

 

47,256,673

 

OFFICE 5.8%

 

 

 

 

 

Alexandria Real Estate Equities

 

140,068

 

15,235,196

 

Douglas Emmett(a),(b)

 

308,082

 

11,285,044

 

Hudson Pacific Properties

 

238,800

 

7,849,356

 

Kilroy Realty Corp.(a),(b)

 

269,034

 

18,657,508

 

SL Green Realty Corp.(a),(b)

 

96,176

 

10,396,626

 

 

 

 

 

63,423,730

 

RESIDENTIAL 11.7%

 

 

 

 

 

APARTMENT 10.2%

 

 

 

 

 

American Campus Communities

 

220,061

 

11,194,503

 

Apartment Investment & Management Co.(a),(b)

 

312,095

 

14,328,281

 

 

1


 

 

 

Number
of Shares

 

Value

 

Colony Starwood Homes(a),(b)

 

361,547

 

$

10,376,399

 

Equity Residential(a),(b)

 

263,580

 

16,956,101

 

Essex Property Trust(a),(b)

 

84,473

 

18,812,137

 

Mid-America Apartment Communities(a),(b)

 

167,228

 

15,717,760

 

UDR(a),(b)

 

673,132

 

24,226,021

 

 

 

 

 

111,611,202

 

 

 

 

 

 

 

MANUFACTURED HOME 1.5%

 

 

 

 

 

Sun Communities(a)

 

213,633

 

16,765,918

 

TOTAL RESIDENTIAL

 

 

 

128,377,120

 

 

 

 

 

 

 

SELF STORAGE 4.2%

 

 

 

 

 

CubeSmart(a)

 

540,924

 

14,745,588

 

Extra Space Storage(a),(b)

 

337,991

 

26,839,865

 

Life Storage(a),(b)

 

43,843

 

3,899,397

 

 

 

 

 

45,484,850

 

SHOPPING CENTERS 12.3%

 

 

 

 

 

COMMUNITY CENTER 4.1%

 

 

 

 

 

Brixmor Property Group

 

737,404

 

20,492,457

 

Ramco-Gershenson Properties Trust(a),(b)

 

557,383

 

10,445,358

 

Regency Centers Corp.(a),(b)

 

141,529

 

10,967,082

 

Tanger Factory Outlet Centers

 

74,445

 

2,900,377

 

 

 

 

 

44,805,274

 

REGIONAL MALL 8.2%

 

 

 

 

 

General Growth Properties(a),(b)

 

616,183

 

17,006,651

 

Simon Property Group(a),(b)

 

352,551

 

72,981,582

 

 

 

 

 

89,988,233

 

TOTAL SHOPPING CENTERS

 

 

 

134,793,507

 

 

 

 

 

 

 

SPECIALTY 5.6%

 

 

 

 

 

CyrusOne(a)

 

163,314

 

7,768,847

 

DuPont Fabros Technology(a),(b)

 

251,756

 

10,384,935

 

Equinix(a),(b)

 

75,518

 

27,205,359

 

QTS Realty Trust, Class A(a),(b)

 

305,320

 

16,136,162

 

 

 

 

 

61,495,303

 

TOTAL COMMON STOCK
(Identified cost—$447,600,731)

 

 

 

661,611,300

 

 

2


 

 

 

Number
of Shares

 

Value

 

PREFERRED SECURITIES—$25 PAR VALUE 24.6%

 

 

 

 

 

BANKS 6.7%

 

 

 

 

 

Bank of America Corp., 6.20%, Series CC

 

134,575

 

$

3,547,397

 

Bank of America Corp., 6.00%, Series EE

 

280,000

 

7,352,800

 

Bank of America Corp., 6.50%, Series Y(a)

 

261,463

 

7,056,886

 

BB&T Corp., 5.625%

 

65,175

 

1,737,565

 

Citigroup, 6.875%, Series K(a)

 

83,974

 

2,419,291

 

Citigroup, 6.30%, Series S

 

139,006

 

3,722,581

 

Farm Credit Bank of Texas, 6.75%, 144A(a),(c)

 

63,000

 

6,774,472

 

Fifth Third Bancorp, 6.625%, Series I(a)

 

71,998

 

2,198,819

 

First Republic Bank, 5.50%, Series G(a)

 

50,991

 

1,372,168

 

GMAC Capital Trust I, 6.602%, due 2/15/40, Series 2 (TruPS) (FRN)(a)

 

124,847

 

3,172,362

 

Huntington Bancshares, 6.25%, Series D(a)

 

235,000

 

6,471,900

 

JPMorgan Chase & Co., 6.10%, Series AA

 

43,750

 

1,186,063

 

JPMorgan Chase & Co., 6.15%, Series BB(a)

 

78,600

 

2,134,776

 

JPMorgan Chase & Co., 6.125%, Series Y

 

90,000

 

2,438,100

 

Regions Financial Corp., 6.375%, Series B

 

209,686

 

6,070,410

 

Wells Fargo & Co., 5.85%(a)

 

220,206

 

5,890,510

 

Wells Fargo & Co., 6.625%

 

46,774

 

1,392,930

 

Wells Fargo & Co., 5.70%, Series W

 

117,835

 

3,054,283

 

Wells Fargo & Co., 5.50%, Series X

 

140,000

 

3,610,600

 

Zions Bancorp, 7.90%, Series F(a)

 

84,067

 

2,216,006

 

 

 

 

 

73,819,919

 

BANKS—FOREIGN 1.2%

 

 

 

 

 

Barclays Bank PLC, 8.125%, Series 5 (United Kingdom)(a)

 

276,655

 

7,201,330

 

National Westminster Bank PLC, 7.763%, Series C (United Kingdom)(a),(b)

 

219,392

 

5,644,956

 

 

 

 

 

12,846,286

 

ELECTRIC 1.5%

 

 

 

 

 

INTEGRATED ELECTRIC 0.7%

 

 

 

 

 

DTE Energy Co., 5.375%, due 6/1/76, Series B

 

116,388

 

3,000,483

 

Integrys Holdings, 6.00%, due 8/1/73

 

162,977

 

4,467,607

 

 

 

 

 

7,468,090

 

REGULATED ELECTRIC 0.8%

 

 

 

 

 

Southern Co./The, 6.25%, due 10/15/75

 

330,000

 

9,183,900

 

TOTAL ELECTRIC

 

 

 

16,651,990

 

 

3


 

 

 

Number
of Shares

 

Value

 

FINANCIAL 3.3%

 

 

 

 

 

DIVERSIFIED FINANCIAL SERVICES 1.0%

 

 

 

 

 

KKR & Co. LP, 6.75%, Series A

 

140,000

 

$

3,791,200

 

State Street Corp., 5.35%, Series G

 

146,525

 

3,928,335

 

Stifel Financial Corp., 6.25%, Series A

 

124,750

 

3,474,288

 

 

 

 

 

11,193,823

 

INVESTMENT ADVISORY SERVICES 0.3%

 

 

 

 

 

Ares Management LP, 7.00%, Series A

 

136,000

 

3,536,000

 

 

 

 

 

 

 

INVESTMENT BANKER/BROKER 2.0%

 

 

 

 

 

Charles Schwab Corp./The, 5.95%, Series D

 

172,400

 

4,692,728

 

Morgan Stanley, 6.875%(a),(b)

 

316,012

 

9,300,233

 

Morgan Stanley, 6.375%, Series I

 

254,338

 

7,088,400

 

 

 

 

 

21,081,361

 

TOTAL FINANCIAL

 

 

 

35,811,184

 

 

 

 

 

 

 

INDUSTRIALS—CHEMICALS 1.1%

 

 

 

 

 

CHS, 6.75%(a)

 

130,453

 

3,734,869

 

CHS, 7.50%, Series 4

 

74,495

 

2,199,837

 

CHS, 7.10%, Series II(a)

 

193,453

 

5,795,852

 

 

 

 

 

11,730,558

 

INSURANCE 3.3%

 

 

 

 

 

LIFE/HEALTH INSURANCE—FOREIGN 0.1%

 

 

 

 

 

Aegon NV, 6.50% (Netherlands)

 

41,743

 

1,078,222

 

 

 

 

 

 

 

MULTI-LINE 1.4%

 

 

 

 

 

American Financial Group, 6.00%, due 11/15/55

 

99,000

 

2,690,820

 

American Financial Group, 6.25%, due 9/30/54

 

139,041

 

3,756,888

 

Hanover Insurance Group/The, 6.35%, due 3/30/53

 

78,400

 

2,024,288

 

WR Berkley Corp., 5.75%, due 6/1/56

 

139,375

 

3,607,025

 

WR Berkley Corp., 5.90%, due 3/1/56

 

112,600

 

2,974,892

 

 

 

 

 

15,053,913

 

MULTI-LINE—FOREIGN 0.2%

 

 

 

 

 

PartnerRe Ltd., 6.50%, Series G (Bermuda)

 

74,903

 

2,138,481

 

PartnerRe Ltd., 7.25%, Series H (Bermuda)

 

5,109

 

153,474

 

 

 

 

 

2,291,955

 

REINSURANCE 0.4%

 

 

 

 

 

Reinsurance Group of America, 5.75%, due 6/15/56(a)

 

138,000

 

4,014,420

 

 

4


 

 

 

Number
of Shares

 

Value

 

REINSURANCE—FOREIGN 1.2%

 

 

 

 

 

Arch Capital Group Ltd., 5.25%, Series E (Bermuda)

 

140,700

 

$

3,513,110

 

Aspen Insurance Holdings Ltd., 5.95% (Bermuda)

 

114,309

 

3,332,107

 

Aspen Insurance Holdings Ltd., 7.25% (Bermuda)

 

53,391

 

1,381,225

 

Endurance Speciality Holdings Ltd., 6.35%, Series C (Bermuda)

 

177,000

 

4,956,000

 

 

 

 

 

13,182,442

 

TOTAL INSURANCE

 

 

 

35,620,952

 

 

 

 

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.5%

 

 

 

 

 

Qwest Corp., 6.50%, due 9/1/56

 

171,900

 

4,443,615

 

Qwest Corp., 7.00%, due 4/1/52

 

55,429

 

1,419,537

 

 

 

 

 

5,863,152

 

REAL ESTATE 5.1%

 

 

 

 

 

DIVERSIFIED 1.7%

 

 

 

 

 

Coresite Realty Corp., 7.25%, Series A

 

79,200

 

2,048,904

 

Lexington Realty Trust, 6.50%, Series C ($50 Par Value)(a)

 

76,536

 

4,037,274

 

NorthStar Realty Finance Corp., 8.50%, Series D

 

90,426

 

2,327,565

 

VEREIT, 6.70%, Series F(a)

 

273,710

 

7,291,635

 

Wells Fargo Real Estate Investment Corp., 6.375%, Series A

 

102,536

 

2,718,229

 

 

 

 

 

18,423,607

 

HOTEL 0.5%

 

 

 

 

 

Hersha Hospitality Trust, 6.875%, Series C(a)

 

134,345

 

3,519,839

 

Sunstone Hotel Investors, 6.95%, Series E

 

65,000

 

1,760,200

 

 

 

 

 

5,280,039

 

INDUSTRIALS 0.8%

 

 

 

 

 

Gramercy Property Trust, 7.125%, Series A

 

151,270

 

4,105,468

 

Monmouth Real Estate Investment Corp., 7.875%, Series B

 

87,500

 

2,283,750

 

STAG Industrial, 6.875%, Series C

 

96,000

 

2,584,320

 

 

 

 

 

8,973,538

 

OFFICE 0.4%

 

 

 

 

 

Corporate Office Properties Trust, 7.375%, Series L(a)

 

100,000

 

2,590,000

 

Government Properties Income Trust, 5.875%, due 5/1/46

 

70,000

 

1,810,200

 

 

 

 

 

4,400,200

 

RESIDENTIAL 0.3%

 

 

 

 

 

APARTMENT 0.2%

 

 

 

 

 

American Homes 4 Rent, 5.00%, Series A

 

79,685

 

2,255,882

 

 

5


 

 

 

Number
of Shares

 

Value

 

MANUFACTURED HOME 0.1%

 

 

 

 

 

Equity Lifestyle Properties, 6.75%, Series C

 

60,843

 

$

1,584,960

 

TOTAL RESIDENTIAL

 

 

 

3,840,842

 

 

 

 

 

 

 

SHOPPING CENTERS—COMMUNITY CENTER 0.9%

 

 

 

 

 

Cedar Realty Trust, 7.25%, Series B(a)

 

219,000

 

5,628,300

 

DDR Corp., 6.50%, Series J(a)

 

60,000

 

1,534,200

 

Saul Centers, 6.875%, Series C

 

84,140

 

2,213,303

 

 

 

 

 

9,375,803

 

SPECIALTY 0.5%

 

 

 

 

 

Digital Realty Trust, 7.375%, Series H

 

60,000

 

1,649,400

 

Digital Realty Trust, 6.35%, Series I

 

140,000

 

3,735,200

 

 

 

 

 

5,384,600

 

TOTAL REAL ESTATE

 

 

 

55,678,629

 

 

 

 

 

 

 

TECHNOLOGY—SOFTWARE 0.4%

 

 

 

 

 

eBay, 6.00%, due 2/1/56

 

173,000

 

4,695,220

 

 

 

 

 

 

 

UTILITIES 1.5%

 

 

 

 

 

Dominion Resources, 5.25%, due 7/30/76, Series A

 

115,000

 

2,927,900

 

Entergy New Orleans, 5.50%, due 4/1/66

 

60,000

 

1,641,600

 

NextEra Energy Capital Holdings, 5.25%, due 6/1/76, Series K

 

116,605

 

2,995,582

 

SCE Trust IV, 5.375%, Series J

 

125,870

 

3,651,489

 

SCE Trust V, 5.45%, Series K(a)

 

188,469

 

5,595,645

 

 

 

 

 

16,812,216

 

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$245,657,155)

 

 

 

269,530,106

 

 

 

 

 

 

 

PREFERRED SECURITIES—CAPITAL SECURITIES 41.9%

 

 

 

 

 

BANKS 10.9%

 

 

 

 

 

AgriBank FCB, 6.875%(a)

 

38,000

 

4,096,875

 

Bank of America Corp., 6.30%, Series DD(a),(b)

 

7,900,000

 

8,601,125

 

Bank of America Corp., 7.25%, Series L (Convertible)

 

2,200

 

2,685,848

 

Bank of America Corp., 6.50%, Series Z(a)

 

10,113,000

 

10,966,284

 

Bank of New York Mellon Corp./The, 4.625%, Series F

 

2,360,000

 

2,330,500

 

Citigroup, 6.125%, Series R

 

2,806,000

 

2,921,748

 

Citigroup, 6.25%, Series T

 

6,925,000

 

7,461,687

 

Citigroup Capital III, 7.625%, due 12/1/36(a)

 

4,700,000

 

5,983,669

 

CoBank ACB, 6.25%, 144A(a),(c)

 

33,000

 

3,489,750

 

CoBank ACB, 6.125%, Series G(a)

 

46,500

 

4,737,188

 

CoBank ACB, 6.25%, Series I

 

4,334,000

 

4,746,159

 

 

6


               

 

 

Number
of Shares

 

Value

 

Farm Credit Bank of Texas, 10.00%, Series I(a)

 

6,000

 

$

7,125,000

 

Goldman Sachs Capital I, 6.345%, due 2/15/34(a)

 

939,000

 

1,146,683

 

Huntington Bancshares, 8.50%, Series A (Convertible)(a)

 

3,212

 

4,657,336

 

JPMorgan Chase & Co., 7.90%, Series I(a)

 

11,000,000

 

11,316,250

 

JPMorgan Chase & Co., 6.75%, Series S(a)

 

8,650,000

 

9,558,250

 

KeyCorp, 5.00%, Series D

 

3,400,000

 

3,357,500

 

PNC Financial Services Group, 6.75%

 

4,275,000

 

4,788,000

 

Wells Fargo & Co., 7.98%, Series K(a)

 

11,475,000

 

12,006,866

 

Wells Fargo & Co., 7.50%, Series L (Convertible)

 

1,300

 

1,701,180

 

Wells Fargo & Co., 5.875%, Series U

 

5,270,000

 

5,724,538

 

 

 

 

 

119,402,436

 

BANKS—FOREIGN 11.8%

 

 

 

 

 

Allied Irish Banks PLC, 7.375%, Series EMTN (EUR) (Ireland)

 

1,200,000

 

1,222,653

 

Australia & New Zealand Banking Group Ltd./United Kingdom, 6.75%, 144A (Australia)(c)

 

5,100,000

 

5,614,672

 

Banco Bilbao Vizcaya Argentaria SA, 8.875% (EUR) (Spain)

 

5,200,000

 

6,151,018

 

Banco Bilbao Vizcaya Argentaria SA, 9.00% (Spain)

 

2,600,000

 

2,671,674

 

Banco Mercantil del Norte SA, 5.75%, due 10/4/31, 144A (Mexico)(c)

 

4,000,000

 

3,920,800

 

Bank of Ireland, 7.375% (EUR) (Ireland)

 

1,600,000

 

1,718,410

 

Barclays PLC, 8.25% (United Kingdom)(a)

 

5,320,000

 

5,333,300

 

Barclays PLC, 7.875% (United Kingdom)

 

3,400,000

 

3,352,176

 

BNP Paribas, 7.195%, 144A (France)(a),(c)

 

3,300,000

 

3,720,750

 

BNP Paribas SA, 7.625%, 144A (France)(c)

 

6,600,000

 

6,809,761

 

Credit Agricole SA, 8.125%, 144A (France)(a),(c)

 

7,300,000

 

7,763,360

 

Credit Suisse Group AG, 7.50%, 144A (Switzerland)(a),(c)

 

3,605,000

 

3,676,649

 

Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (Germany)(a),(c)

 

5,235,906

 

6,243,818

 

HSBC Capital Funding LP, 10.176%, 144A (United Kingdom)(c)

 

8,442,000

 

12,817,657

 

HSBC Holdings PLC, 6.875% (United Kingdom)

 

4,800,000

 

5,004,000

 

Lloyds Banking Group PLC, 7.50% (United Kingdom)(a)

 

7,766,000

 

8,039,363

 

Nationwide Building Society, 10.25% (GBP) (United Kingdom)

 

4,790,000

 

7,962,473

 

Rabobank Nederland, 11.00%, 144A (Netherlands)(a),(c)

 

5,800,000

 

7,047,000

 

Royal Bank of Scotland Group PLC, 7.648% (United Kingdom)(a)

 

3,591,000

 

4,318,178

 

Royal Bank of Scotland Group PLC, 8.625% (United Kingdom)

 

7,600,000

 

7,457,500

 

Societe Generale SA, 7.375%, 144A (France)(c)

 

3,800,000

 

3,733,500

 

 

7


 

 

 

Number
of Shares

 

Value

 

Standard Chartered PLC, 7.50%, 144A (United Kingdom)(c)

 

3,000,000

 

$

3,000,000

 

UBS Group AG, 6.875% (Switzerland)

 

2,000,000

 

1,978,550

 

UBS Group AG, 7.00% (Switzerland)

 

1,600,000

 

1,692,307

 

UBS Group AG, 7.125% (Switzerland)

 

3,000,000

 

3,047,850

 

UBS Group AG, 7.125% (Switzerland)

 

5,000,000

 

5,147,600

 

 

 

 

 

129,445,019

 

FINANCIAL—DIVERSIFIED FINANCIAL SERVICES 0.6%

 

 

 

 

 

National Rural Utilities Cooperative Finance Corp., 5.25%, due 4/20/46

 

2,640,000

 

2,855,448

 

State Street Corp., 5.25%, Series F

 

3,005,000

 

3,177,787

 

 

 

 

 

6,033,235

 

FOOD 1.2%

 

 

 

 

 

Dairy Farmers of America, 7.875%, 144A(c),(d)

 

40,100

 

4,283,181

 

Dairy Farmers of America, 7.875%, 144A ($100 Par Value)(c)

 

82,000

 

8,674,067

 

TOTAL FOOD (Identified cost—$12,327,375)

 

 

 

12,957,248

 

 

 

 

 

 

 

INDUSTRIALS—DIVERSIFIED MANUFACTURING 1.8%

 

 

 

 

 

General Electric Co., 5.00%, Series D(a)

 

18,486,000

 

19,682,044

 

 

 

 

 

 

 

INSURANCE 10.8%

 

 

 

 

 

LIFE/HEALTH INSURANCE 2.9%

 

 

 

 

 

MetLife, 5.25%, Series C

 

4,266,000

 

4,297,995

 

MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A(c)

 

2,000,000

 

2,519,196

 

MetLife Capital Trust X, 9.25%, due 4/8/68, 144A(a),(c)

 

8,065,000

 

11,623,278

 

Prudential Financial, 5.625%, due 6/15/43(a)

 

9,464,000

 

10,221,593

 

Voya Financial, 5.65%, due 5/15/53

 

3,300,000

 

3,304,125

 

 

 

 

 

31,966,187

 

LIFE/HEALTH INSURANCE—FOREIGN 4.4%

 

 

 

 

 

Cloverie PLC for Zurich Insurance Co., Ltd., 5.625%, due 6/24/46 (Ireland)

 

1,000,000

 

1,081,700

 

Dai-ichi Life Insurance Co. Ltd., 4.00%, 144A (Japan)(c)

 

7,600,000

 

7,657,000

 

Dai-ichi Life Insurance Co. Ltd., 5.10%, 144A (Japan)(c)

 

3,400,000

 

3,740,340

 

Demeter BV (Swiss Re Ltd.), 5.625%, due 8/15/52 (Netherlands)

 

3,200,000

 

3,319,334

 

Demeter BV (Swiss Re Ltd.), 5.75%, due 8/15/50 (Netherlands)

 

3,200,000

 

3,368,096

 

La Mondiale Vie, 7.625% (France)

 

4,500,000

 

4,826,250

 

Meiji Yasuda Life Insurance Co., 5.20%, due 10/20/45, 144A (Japan)(a),(b),(c)

 

7,350,000

 

8,277,938

 

 

8


 

 

 

Number
of Shares

 

Value

 

Nippon Life Insurance Co., 4.70%, due 1/20/46, 144A (Japan)(c)

 

10,000,000

 

$

10,849,820

 

Sumitomo Life Insurance Co., 6.50%, due 9/20/73, 144A (Japan)(a),(c)

 

3,800,000

 

4,545,750

 

 

 

 

 

47,666,228

 

MULTI-LINE 0.5%

 

 

 

 

 

MetLife, 10.75%, due 8/1/69(a)

 

3,442,000

 

5,524,754

 

 

 

 

 

 

 

MULTI-LINE—FOREIGN 0.6%

 

 

 

 

 

AXA SA, 8.60%, due 12/15/30 (France)(a)

 

2,400,000

 

3,396,000

 

AXA SA, 6.463%, 144A (France)(a),(c)

 

3,250,000

 

3,398,915

 

 

 

 

 

6,794,915

 

PROPERTY CASUALTY 0.9%

 

 

 

 

 

Liberty Mutual Group, 7.80%, due 3/7/87, 144A(a),(c)

 

8,650,000

 

10,142,125

 

 

 

 

 

 

 

PROPERTY CASUALTY—FOREIGN 0.9%

 

 

 

 

 

QBE Insurance Group Ltd., 6.75%, due 12/2/44 (Australia)

 

6,003,000

 

6,663,330

 

QBE Insurance Group Ltd., 5.875%, due 6/17/46, Series EMTN (Australia)

 

2,800,000

 

2,969,574

 

 

 

 

 

9,632,904

 

REINSURANCE—FOREIGN 0.6%

 

 

 

 

 

Aquarius + Investments PLC, 8.25% (Switzerland)

 

6,000,000

 

6,451,500

 

TOTAL INSURANCE

 

 

 

118,178,613

 

 

 

 

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.3%

 

 

 

 

 

Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)(a),(c)

 

3,254

 

3,844,804

 

 

 

 

 

 

 

MATERIAL—METALS & MINING 1.1%

 

 

 

 

 

BHP Billiton Finance USA Ltd., 6.75%, due 10/19/75, 144A (Australia)(a),(c)

 

10,200,000

 

11,577,000

 

 

 

 

 

 

 

PIPELINES 0.7%

 

 

 

 

 

Transcanada Trust, 5.875%, due 8/15/76, Series 16-A (Canada)

 

7,002,000

 

7,425,621

 

 

 

 

 

 

 

REAL ESTATE—DIVERSIFIED 0.3%

 

 

 

 

 

QCP SNF West/Central/East/AL REIT LLC, 8.125%, due 11/1/23, 144A(c)

 

3,700,000

 

3,767,063

 

 

 

 

 

 

 

UTILITIES 2.4%

 

 

 

 

 

ELECTRIC UTILITIES 0.1%

 

 

 

 

 

NextEra Energy Capital Holdings, 7.30%, due 9/1/67, Series D(a)

 

1,038,000

 

1,033,152

 

 

9


 

 

 

Number
of Shares

 

Value

 

ELECTRIC UTILITIES—FOREIGN 2.3%

 

 

 

 

 

Emera, 6.75%, due 6/15/76, Series 16-A (Canada)

 

13,850,000

 

$

14,922,904

 

Enel SpA, 8.75%, due 9/24/73, 144A (Italy)(a),(c)

 

8,510,000

 

9,967,338

 

 

 

 

 

24,890,242

 

TOTAL UTILITIES

 

 

 

25,923,394

 

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES
(Identified cost—$417,281,842)

 

 

 

458,236,477

 

 

 

 

 

 

 

 

 

Principal
Amount

 

 

 

CORPORATE BONDS—INTEGRATED TELECOMMUNICATIONS SERVICES 0.6%

 

 

 

 

 

Embarq Corp., 7.995%, due 6/1/36

 

$

3,210,000

 

3,256,481

 

Frontier Communications Corp., 9.00%, due 8/15/31(a)

 

3,147,000

 

2,910,975

 

TOTAL CORPORATE BONDS
(Identified cost—$6,354,895)

 

 

 

6,167,456

 

 

 

 

 

 

 

 

 

Number
of Shares

 

 

 

SHORT-TERM INVESTMENTS 2.1%

 

 

 

 

 

MONEY MARKET FUNDS

 

 

 

 

 

State Street Institutional Treasury Money Market Fund, Premier Class, 0.19%(e)

 

22,600,000

 

22,600,000

 

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$22,600,000)

 

 

 

22,600,000

 

TOTAL INVESTMENTS (Identified cost—$1,139,494,623)

 

129.7

%

 

 

1,418,145,339

 

LIABILITIES IN EXCESS OF OTHER ASSETS

 

(29.7

)

 

 

(324,853,079

)

NET ASSETS (Equivalent to $22.98 per share based on 47,566,736 shares of common stock outstanding)

 

100.0

%

 

 

$

1,093,292,260

 

 

10


 

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 credit agreement. $716,379,117  in aggregate has been pledged as collateral.

(b)    A portion of the security has been rehypothecated in connection with the Fund’s credit agreement. $315,526,457 in aggregate has been rehypothecated.

(c)     Resale is restricted to qualified institutional investors. Aggregate holdings equal 16.4% of the net assets of the Fund, of which 0.4% are illiquid.

(d)    Illiquid security. Aggregate holdings equal 0.4% of the net assets of the Fund.

(e)     Rate quoted represents the annualized seven-day yield of the Fund.

 

Forward foreign currency exchange contracts outstanding at September 30, 2016 were as follows:

Counterparty

 

Contracts to
Deliver

 

In Exchange
For

 

Settlement
Date

 

Unrealized
Appreciation
(Depreciation)

 

Brown Brothers Harriman

 

EUR

8,061,055

 

USD

8,987,641

 

10/4/16

 

$

(67,740

)

Brown Brothers Harriman

 

GBP

6,146,288

 

USD

8,053,672

 

10/4/16

 

87,164

 

Brown Brothers Harriman

 

USD

7,982,430

 

GBP

6,146,288

 

10/4/16

 

(15,923

)

Brown Brothers Harriman

 

USD

9,060,868

 

EUR

8,061,055

 

10/4/16

 

(5,486

)

Brown Brothers Harriman

 

EUR

8,163,226

 

USD

9,187,392

 

11/2/16

 

4,871

 

Brown Brothers Harriman

 

GBP

6,187,003

 

USD

8,039,367

 

11/2/16

 

15,323

 

 

 

 

 

 

 

 

 

$

18,209

 

 

 

Glossary of Portfolio Abbreviations

 

 

 

 

EUR

Euro Currency

 

FRN

Floating Rate Note

 

GBP

Great British Pound

 

REIT

Real Estate Investment Trust

 

TruPS

Trust Preferred Securities

 

USD

United States Dollar

 

 

11


 

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 last 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 foreign currency 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 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 market 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 adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are 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 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

 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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.

 

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.

 

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 may or may not be 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 assigned level within the disclosure hierarchy.  There were no transfers between Level 1 and Level 2 securities as of September 30, 2016.

 


 

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, 2016 in valuing the Fund’s investments carried at value:

 

 

 

 

 

Quoted Prices in
Active Markets
for Identical
Investments

 

Other
Significant
Observable
Inputs

 

Significant
Unobservable
Inputs

 

 

 

Total

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Common Stock

 

$

661,611,300

 

$

661,611,300

 

$

—

 

$

—

 

Preferred Securities - $25 Par Value:

 

 

 

 

 

 

 

 

 

Banks

 

73,819,919

 

67,045,447

 

6,774,472

 

—

 

Electric-Integrated Electric

 

7,468,090

 

3,000,483

 

4,467,607

 

—

 

Reinsurance-Foreign

 

13,182,442

 

9,669,332

 

3,513,110

 

—

 

Other Industries

 

175,059,655

 

175,059,655

 

—

 

—

 

Preferred Securities - Capital Securities:

 

 

 

 

 

 

 

 

 

Banks

 

119,402,436

 

9,064,364

 

110,358,072

 

—

 

Food

 

12,957,248

 

—

 

8,674,067

 

4,283,181

(b)

Other Industries

 

325,876,793

 

—

 

325,876,793

 

—

 

Corporate Bonds

 

6,167,456

 

—

 

6,167,456

 

—

 

Short-Term Investments

 

22,600,000

 

—

 

22,600,000

 

—

 

Total Investments(a)

 

$

1,418,145,339

 

$

925,430,581

 

$

488,431,577

 

$

4,283,181

 

Forward foreign currency exchange contracts

 

$

107,358

 

$

—

 

$

107,358

 

$

—

 

Total Appreciation in Other Financial Instruments(a)

 

$

107,358

 

$

—

 

$

107,358

 

$

—

 

Forward foreign currency exchange contracts

 

$

(89,149

)

$

—

 

$

(89,149

)

$

—

 

Total Depreciation in Other Financial Instruments(a)

 

$

(89,149

)

$

—

 

$

(89,149

)

$

—

 

 

(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)

 

Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

 

 

 

Total
Investments
in Securities

 

Preferred
Securities -
Capital
Securities -
Banks

 

Preferred
Securities -
Capital
Securities -
Food

 

Balance as of December 31, 2015

 

$

11,380,918

 

$

4,215,518

 

$

7,165,400

 

Change in unrealized appreciation (depreciation)

 

439,450

 

521,669

 

(82,219

)

Sales

 

(2,911,946

)

—

 

(2,911,946

)

Realized gain

 

111,946

 

—

 

111,946

 

Transfers out of Level 3(a)

 

(4,737,187

)

(4,737,187

)

—

 

Balance as of September 30, 2016

 

$

4,283,181

 

$

—

 

$

4,283,181

 

 

The change in unrealized appreciation (depreciation) attributable to securities owned on September 30, 2016 which were valued using significant unobservable inputs (Level 3) amounted to $(82,219).

 

(a) Transfers from Level 3 to Level 2 are due to an increase in market activity (e.g. frequency of trades), which resulted in an increase in available market inputs to determine prices.

 

Note 2.   Derivative Instruments

 

The following is a summary of the Fund’s derivative instruments as of September 30, 2016:

 

Forward foreign currency exchange contracts

 

$

18,209

 

 

The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the nine months ended September 30, 2016:

 

 

 

Forward foreign
currency exchange
contracts

 

Average Notional Balance

 

$

20,817,324

 

Ending Notional Balance

 

17,226,759

 

 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

Options:  The Fund may purchase and write exchange-listed and over-the-counter put or call options on securities, stock indices and other financial instruments to enhance portfolio returns and reduce overall volatility.

 

When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded 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.

 

Put and call options purchased are accounted for in the same manner as portfolio securities.  Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract.

 

At September 30, 2016, the Fund did not have any option contracts outstanding.

 

Transactions in written options during the nine months ended September 30, 2016, were as follows:

 

 

 

Number

 

 

 

 

 

of Contracts

 

Premiums

 

Written options contracts outstanding at December 31, 2015

 

1,614

 

72,629

 

Option contracts written

 

21

 

223,325

 

Option contracts expired

 

(1,614

)

(72,629

)

Option contracts terminated in closing contracts

 

(21

)

(223,325

)

Written option contracts outstanding at September 30, 2016

 

—

 

$

—

 

 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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 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.

 

Note 3.   Income Tax Information

 

As of September 30, 2016, the federal tax cost and net unrealized appreciation and depreciation in value of securities held were as follows:

 

Cost for federal income tax purposes

 

$

1,139,494,623

 

Gross unrealized appreciation

 

$

281,314,249

 

Gross unrealized depreciation

 

(2,663,533

)

Net unrealized appreciation

 

$

278,650,716

 

 


 

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 and Principal Executive Officer

 

 

Date: November 23, 2016

 

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 23, 2016