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, 2015

 

 


 

Item 1. Schedule of Investments

 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

September 30, 2015 (Unaudited)

 

 

 

Number
of Shares

 

Value

 

COMMON STOCK—REAL ESTATE 66.5%

 

 

 

 

 

DIVERSIFIED 4.5%

 

 

 

 

 

American Assets Trust(a),(b)

 

175,367

 

$

7,165,496

 

Gramercy Property Trust(a)

 

157,914

 

3,279,874

 

Vornado Realty Trust(a),(b)

 

368,877

 

33,353,858

 

 

 

 

 

43,799,228

 

HEALTH CARE 7.3%

 

 

 

 

 

Care Capital Properties(a),(b)

 

29,688

 

977,626

 

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

 

549,593

 

13,470,524

 

Omega Healthcare Investors(a),(b)

 

689,610

 

24,239,792

 

Physicians Realty Trust(a)

 

421,514

 

6,360,646

 

Welltower

 

391,687

 

26,525,044

 

 

 

 

 

71,573,632

 

HOTEL 3.5%

 

 

 

 

 

Host Hotels & Resorts(a),(b)

 

1,603,744

 

25,355,193

 

Sunstone Hotel Investors(a),(b)

 

661,496

 

8,751,592

 

 

 

 

 

34,106,785

 

OFFICE 8.9%

 

 

 

 

 

BioMed Realty Trust(a),(b)

 

839,209

 

16,767,396

 

Douglas Emmett(a),(b)

 

308,082

 

8,848,115

 

Kilroy Realty Corp.(a),(b)

 

252,628

 

16,461,240

 

Liberty Property Trust(a)

 

338,519

 

10,666,734

 

PS Business Parks

 

90,942

 

7,218,976

 

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

 

251,951

 

27,251,020

 

 

 

 

 

87,213,481

 

RESIDENTIAL 14.0%

 

 

 

 

 

APARTMENT 12.5%

 

 

 

 

 

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

 

386,748

 

14,317,411

 

Equity Residential(a),(b)

 

541,419

 

40,671,395

 

Essex Property Trust(a),(b)

 

107,418

 

23,999,330

 

Mid-America Apartment Communities

 

167,228

 

13,690,956

 

Starwood Waypoint Residential Trust(a)

 

306,079

 

7,293,863

 

UDR(a),(b)

 

673,132

 

23,209,591

 

 

 

 

 

123,182,546

 

MANUFACTURED HOME 1.5%

 

 

 

 

 

Sun Communities(a)

 

213,633

 

14,475,772

 

TOTAL RESIDENTIAL

 

 

 

137,658,318

 

 

1


 

 

 

Number
of Shares

 

Value

 

SELF STORAGE 6.9%

 

 

 

 

 

CubeSmart(a),(b)

 

770,854

 

$

20,974,937

 

Extra Space Storage(a),(b)

 

436,649

 

33,691,837

 

Sovran Self Storage(a),(b)

 

138,732

 

13,082,428

 

 

 

 

 

67,749,202

 

SHOPPING CENTERS 17.4%

 

 

 

 

 

COMMUNITY CENTER 5.6%

 

 

 

 

 

DDR Corp.(a),(b)

 

949,842

 

14,608,570

 

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

 

557,383

 

8,366,319

 

Regency Centers Corp.(a),(b)

 

317,295

 

19,719,884

 

Retail Properties of America, Class A(a),(b)

 

836,509

 

11,786,412

 

 

 

 

 

54,481,185

 

FREE STANDING 1.2%

 

 

 

 

 

Spirit Realty Capital(a)

 

1,299,599

 

11,878,335

 

 

 

 

 

 

 

REGIONAL MALL 10.6%

 

 

 

 

 

General Growth Properties(a),(b)

 

731,479

 

18,996,509

 

Macerich Co. (The)(a)

 

162,713

 

12,499,612

 

Pennsylvania REIT

 

377,207

 

7,480,015

 

Simon Property Group(a),(b)

 

352,551

 

64,770,670

 

 

 

 

 

103,746,806

 

TOTAL SHOPPING CENTERS

 

 

 

170,106,326

 

 

 

 

 

 

 

SPECIALTY 4.0%

 

 

 

 

 

CyrusOne(a)

 

345,215

 

11,274,722

 

Equinix(a),(b)

 

53,251

 

14,558,823

 

QTS Realty Trust, Class A(a)

 

305,320

 

13,339,431

 

 

 

 

 

39,172,976

 

TOTAL COMMON STOCK
(Identified cost—$510,431,943)

 

 

 

651,379,948

 

 

 

 

 

 

 

PREFERRED SECURITIES—$25 PAR VALUE 25.7%

 

 

 

 

 

BANKS 6.2%

 

 

 

 

 

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

 

359,600

 

9,141,032

 

BB&T Corp., 5.20%, Series F

 

99,981

 

2,396,545

 

Capital One Financial Corp., 6.25%, Series C(a)

 

27,584

 

699,806

 

Citigroup, 6.875%, Series K(a)

 

93,838

 

2,502,659

 

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

 

63,000

 

6,595,313

 

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

 

155,465

 

4,236,421

 

First Republic Bank, 5.50%

 

54,276

 

1,289,055

 

 

2


 

 

 

Number
of Shares

 

Value

 

JPMorgan Chase & Co., 5.50%, Series O

 

125,034

 

$

3,019,571

 

JPMorgan Chase & Co., 6.125%, Series Y

 

130,000

 

3,265,600

 

PNC Financial Services Group, 6.125%, Series P(a)

 

122,500

 

3,357,725

 

Regions Financial Corp., 6.375%, Series B

 

228,870

 

5,957,486

 

SunTrust Banks, 5.875%, Series E

 

100,000

 

2,484,000

 

US Bancorp, 6.50%, Series F(a)

 

78,991

 

2,268,622

 

Wells Fargo & Co., 5.20%

 

60,000

 

1,453,200

 

Wells Fargo & Co., 5.85%(a)

 

270,142

 

6,888,621

 

Wells Fargo & Co., 6.625%

 

46,774

 

1,279,269

 

Zions Bancorp, 7.90%, Series F(a)

 

95,656

 

2,586,538

 

Zions Bancorp, 6.30%, Series G

 

45,086

 

1,177,646

 

 

 

 

 

60,599,109

 

BANKS—FOREIGN 1.6%

 

 

 

 

 

Barclays Bank PLC, 7.75%, Series IV (United Kingdom)

 

100,000

 

2,583,000

 

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

 

250,000

 

6,467,500

 

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

 

172,192

 

4,392,618

 

RBS Capital Funding Trust VII, 6.08%, Series G (United Kingdom)

 

87,542

 

2,140,402

 

 

 

 

 

15,583,520

 

DIVERSIFIED FINANCIAL SERVICES 0.2%

 

 

 

 

 

State Street Corp., 5.90%, Series D

 

77,730

 

2,017,871

 

 

 

 

 

 

 

ELECTRIC—INTEGRATED 0.5%

 

 

 

 

 

Integrys Energy Group, 6.00%, due 8/1/73(d)

 

181,652

 

4,886,439

 

 

 

 

 

 

 

FINANCE—INVESTMENT BANKER/BROKER 1.6%

 

 

 

 

 

Morgan Stanley, 6.875%(a)

 

326,871

 

8,737,262

 

Morgan Stanley, 6.375%, Series I

 

268,340

 

6,826,569

 

 

 

 

 

15,563,831

 

FOOD 0.6%

 

 

 

 

 

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

 

62,000

 

6,314,316

 

 

 

 

 

 

 

INDUSTRIALS—CHEMICALS 1.3%

 

 

 

 

 

CHS, 6.75%(a)

 

190,453

 

4,934,637

 

CHS, 7.50%, Series 4

 

74,495

 

1,974,117

 

CHS, 7.10%, Series II(a)

 

213,453

 

5,669,312

 

 

 

 

 

12,578,066

 

 

3


 

 

 

Number
of Shares

 

Value

 

INSURANCE 4.1%

 

 

 

 

 

LIFE/HEALTH INSURANCE—FOREIGN 0.1%

 

 

 

 

 

Aegon NV, 6.50% (Netherlands)

 

44,521

 

$

1,135,286

 

 

 

 

 

 

 

MULTI-LINE 2.1%

 

 

 

 

 

American Financial Group, 5.75%, due 8/25/42

 

200,000

 

5,068,000

 

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

 

139,041

 

3,640,093

 

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

 

78,400

 

1,975,680

 

Hartford Financial Services Group, 7.875%, due 4/15/42(a)

 

183,052

 

5,592,239

 

WR Berkley Corp., 5.625%, due 4/30/53(a)

 

172,793

 

4,233,429

 

 

 

 

 

20,509,441

 

MULTI-LINE—FOREIGN 0.9%

 

 

 

 

 

ING Groep N.V., 7.05% (Netherlands)

 

149,060

 

3,833,823

 

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

 

159,546

 

4,387,515

 

 

 

 

 

8,221,338

 

REINSURANCE 0.3%

 

 

 

 

 

Reinsurance Group of America, 6.20%, due 9/15/42

 

108,573

 

3,006,386

 

 

 

 

 

 

 

REINSURANCE—FOREIGN 0.7%

 

 

 

 

 

Aspen Insurance Holdings Ltd., 5.95% (Bermuda)

 

114,309

 

2,898,876

 

Aspen Insurance Holdings Ltd., 7.25% (Bermuda)

 

106,000

 

2,768,720

 

Axis Capital Holdings Ltd., 6.875%, Series C (Bermuda)

 

55,284

 

1,441,254

 

 

 

 

 

7,108,850

 

TOTAL INSURANCE

 

 

 

39,981,301

 

 

 

 

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.7%

 

 

 

 

 

Qwest Corp., 6.125%, due 6/1/53(a)

 

66,048

 

1,585,152

 

Qwest Corp., 6.625%, due 9/15/55

 

100,000

 

2,495,250

 

Qwest Corp., 6.875%, due 10/1/54

 

73,856

 

1,868,557

 

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

 

55,429

 

1,412,885

 

 

 

 

 

7,361,844

 

REAL ESTATE 7.8%

 

 

 

 

 

DIVERSIFIED 2.1%

 

 

 

 

 

Coresite Realty Corp., 7.25%, Series A

 

79,200

 

2,027,520

 

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

 

76,536

 

3,638,522

 

National Retail Properties, 5.70%, Series E

 

73,266

 

1,794,284

 

NorthStar Realty Finance Corp., 8.50%, Series D

 

119,300

 

2,863,200

 

VEREIT, 6.70%, Series F(a)

 

323,710

 

7,833,782

 

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

 

102,536

 

2,629,023

 

 

 

 

 

20,786,331

 

 

4


 

 

 

Number
of Shares

 

Value

 

FINANCE 0.2%

 

 

 

 

 

iStar Financial, 7.80%, Series F

 

79,630

 

$

1,872,101

 

 

 

 

 

 

 

HOTEL 0.9%

 

 

 

 

 

Hersha Hospitality Trust, 6.875%, Series C

 

134,345

 

3,369,373

 

Hospitality Properties Trust, 7.125%, Series D

 

115,000

 

2,965,850

 

Pebblebrook Hotel Trust, 7.875%, Series A(a),(b)

 

100,000

 

2,539,000

 

 

 

 

 

8,874,223

 

INDUSTRIALS 0.6%

 

 

 

 

 

Gramercy Property Trust, 7.125%, Series B

 

151,270

 

3,857,385

 

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

 

87,500

 

2,301,250

 

 

 

 

 

6,158,635

 

OFFICE 0.3%

 

 

 

 

 

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

 

100,000

 

2,550,000

 

 

 

 

 

 

 

RESIDENTIAL 0.5%

 

 

 

 

 

APARTMENT 0.2%

 

 

 

 

 

American Homes 4 Rent, 5.00%, Series A

 

79,685

 

1,980,172

 

 

 

 

 

 

 

MANUFACTURED HOME 0.3%

 

 

 

 

 

Campus Crest Communities, 8.00%, Series A

 

64,598

 

1,571,669

 

Equity Lifestyle Properties, 6.75%, Series C

 

60,843

 

1,594,087

 

 

 

 

 

3,165,756

 

TOTAL RESIDENTIAL

 

 

 

5,145,928

 

 

 

 

 

 

 

SELF STORAGE 0.3%

 

 

 

 

 

Public Storage, 5.375%, Series V

 

107,703

 

2,617,183

 

 

 

 

 

 

 

SHOPPING CENTERS 2.4%

 

 

 

 

 

COMMUNITY CENTER 1.5%

 

 

 

 

 

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

 

219,000

 

5,291,040

 

DDR Corp., 6.50%, Series J

 

60,000

 

1,507,800

 

Inland Real Estate Corp., 8.125%, Series A

 

135,000

 

3,461,400

 

Inland Real Estate Corp., 6.95%, Series B

 

100,134

 

2,547,910

 

Saul Centers, 6.875%, Series C

 

79,140

 

2,037,855

 

 

 

 

 

14,846,005

 

REGIONAL MALL 0.9%

 

 

 

 

 

CBL & Associates Properties, 7.375%, Series D(a)

 

324,982

 

8,134,299

 

TOTAL SHOPPING CENTERS

 

 

 

22,980,304

 

 

 

 

 

 

 

SPECIALTY 0.5%

 

 

 

 

 

Digital Realty Trust, 7.375%, Series H

 

60,000

 

1,601,400

 

 

5


 

 

 

Number
of Shares

 

Value

 

Digital Realty Trust, 6.35%, Series I

 

140,000

 

$

3,463,600

 

 

 

 

 

5,065,000

 

TOTAL REAL ESTATE

 

 

 

76,049,705

 

TRANSPORT—MARINE—FOREIGN 0.1%

 

 

 

 

 

Seaspan Corp., 9.50%, Series C (Hong Kong)

 

40,786

 

1,034,741

 

Teekay Offshore Partners LP, 7.25%, Series A (Marshall Islands)

 

1,474

 

23,436

 

 

 

 

 

1,058,177

 

UTILITIES 1.0%

 

 

 

 

 

SCE Trust III, 5.75%

 

103,349

 

2,784,222

 

SCE Trust IV, 5.375%, Series J

 

272,000

 

7,004,000

 

 

 

 

 

9,788,222

 

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$239,531,517)

 

 

 

251,782,401

 

 

 

 

 

 

 

PREFERRED SECURITIES—CAPITAL SECURITIES 41.3%

 

 

 

 

 

BANKS 12.0%

 

 

 

 

 

AgriBank FCB, 6.875%

 

38,000

 

3,999,500

 

Ally Financial, 7.00%, Series G, 144A(c)

 

4,500

 

4,536,703

 

Bank of America Corp., 6.10%, Series AA

 

3,222,000

 

3,145,478

 

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

 

9,638,000

 

9,842,807

 

Citigroup, 5.875%, Series O(a)

 

3,950,000

 

3,885,813

 

Citigroup, 5.95%, Series Q

 

3,500,000

 

3,455,305

 

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

 

4,700,000

 

5,909,014

 

Citizens Financial Group, 5.50%, 144A(c)

 

1,400,000

 

1,368,500

 

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

 

33,000

 

3,427,875

 

CoBank ACB, 6.125%, Series G(a)

 

46,500

 

4,514,862

 

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

 

6,000

 

7,488,750

 

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

 

2,100,000

 

2,412,236

 

Goldman Sachs Capital II, 4.00%, (FRN)(a)

 

3,340,000

 

2,421,500

 

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

 

3,212

 

4,288,020

 

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

 

13,000,000

 

13,520,000

 

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

 

6,650,000

 

6,932,625

 

JPMorgan Chase & Co., 6.125%, Series U

 

1,900,000

 

1,900,000

 

JPMorgan Chase & Co., 6.10%, Series X

 

2,000,000

 

1,989,500

 

JPMorgan Chase & Co., 5.30%, Series Z

 

2,300,000

 

2,265,500

 

PNC Financial Services Group, 6.75%(a)

 

6,275,000

 

6,816,219

 

Wells Fargo & Co., 7.98%, Series K(a)

 

11,975,000

 

12,663,562

 

Wells Fargo & Co., 5.90%, Series S

 

2,255,000

 

2,260,638

 

Wells Fargo & Co., 5.875%, Series U

 

3,870,000

 

3,966,750

 

 

6


 

 

 

Number
of Shares

 

Value

 

Zions Bancorp, 7.20%, Series J

 

3,997,000

 

$

4,281,786

 

 

 

 

 

117,292,943

 

 

 

 

 

 

 

BANKS—FOREIGN 13.1%

 

 

 

 

 

Baggot Securities Ltd., 10.24%, 144A (EUR) (Ireland)(c)

 

2,474,000

 

2,805,941

 

Banco Bilbao Vizcaya Argentaria SA, 9.00% (Spain)

 

3,400,000

 

3,601,875

 

Barclays Bank PLC, 7.625%, due 11/21/22 (United Kingdom)(a)

 

3,375,000

 

3,788,438

 

Barclays Bank PLC, 6.86%, 144A (United Kingdom)(a),(c)

 

4,300,000

 

4,891,250

 

Barclays PLC, 7.875% (GBP) (United Kingdom)

 

800,000

 

1,190,747

 

Barclays PLC, 8.00% (EUR) (United Kingdom)

 

2,050,000

 

2,426,540

 

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

 

5,320,000

 

5,555,394

 

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

 

3,300,000

 

3,836,250

 

BNP Paribas, 7.375%, 144A (France)(c)

 

8,200,000

 

8,261,500

 

Credit Suisse AG, 6.50%, due 8/8/23, 144A (Switzerland)(c)

 

2,000,000

 

2,158,750

 

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

 

4,005,000

 

4,182,321

 

Deutsche Bank AG, 7.50% (Germany)(a),(b)

 

1,600,000

 

1,526,000

 

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

 

7,235,906

 

9,053,927

 

HBOS Capital Funding LP, 6.85% (United Kingdom)

 

3,300,000

 

3,329,469

 

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

 

8,442,000

 

12,726,315

 

HSBC Holdings PLC, 6.00% (EUR) (United Kingdom)

 

1,200,000

 

1,316,777

 

HSBC Holdings PLC, 6.375% (United Kingdom)(a),(b)

 

7,400,000

 

7,076,250

 

Intesa Sanpaolo SpA, 7.70%, 144A (Italy)(c)

 

3,000,000

 

2,934,111

 

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

 

7,366,000

 

7,538,365

 

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

 

4,790,000

 

9,333,808

 

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

 

5,800,000

 

7,152,850

 

Royal Bank of Scotland Group PLC, 7.50% (United Kingdom)

 

2,500,000

 

2,500,775

 

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

 

5,691,000

 

7,113,750

 

Royal Bank of Scotland Group PLC, 8.00% (United Kingdom)

 

1,500,000

 

1,515,000

 

Standard Chartered PLC, 6.50%, 144A (United Kingdom)(c)

 

2,600,000

 

2,426,889

 

Standard Chartered PLC, 7.014%, 144A (United Kingdom)(a),(b),(c)

 

2,250,000

 

2,452,500

 

UBS AG, 7.625%, due 8/17/22 (Switzerland)(a),(b)

 

1,750,000

 

2,016,096

 

UBS Group AG, 7.00% (Switzerland)

 

3,800,000

 

3,880,750

 

 

7


 

 

 

Number
of Shares

 

Value

 

UBS Group AG, 7.125% (Switzerland)

 

1,600,000

 

$

1,647,000

 

 

 

 

 

128,239,638

 

FINANCE—DIVERSIFIED FINANCIAL SERVICES 2.5%

 

 

 

 

 

Depository Trust & Clearing Corp/The, 4.875%, Series C, 144A(c)

 

3,000,000

 

2,992,500

 

General Electric Capital Corp., 7.125%, Series A(a)

 

11,000,000

 

12,718,750

 

General Electric Capital Corp., 6.25%, Series B(a)

 

5,600,000

 

6,083,000

 

State Street Corp., 5.25%, Series F

 

3,005,000

 

3,020,025

 

 

 

 

 

24,814,275

 

FOOD 0.8%

 

 

 

 

 

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

 

68,100

 

7,254,781

 

 

 

 

 

 

 

INSURANCE 9.8%

 

 

 

 

 

LIFE/HEALTH INSURANCE 2.7%

 

 

 

 

 

MetLife, 5.25%, Series C

 

5,602,000

 

5,559,985

 

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

 

8,065,000

 

11,149,862

 

Principal Financial Group, 4.70%, due 5/15/55

 

4,100,000

 

4,079,500

 

Prudential Financial, 5.375%, due 5/15/45

 

3,886,000

 

3,861,713

 

Prudential Financial, 5.625%, due 6/15/43

 

2,000,000

 

2,069,000

 

 

 

 

 

26,720,060

 

LIFE/HEALTH INSURANCE—FOREIGN 1.7%

 

 

 

 

 

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

 

3,400,000

 

3,527,500

 

La Mondiale Vie, 7.625% (France)

 

5,700,000

 

6,151,378

 

Nippon Life Insurance Co., 5.10%, due 10/16/44, 144A (Japan)(c)

 

3,000,000

 

3,105,000

 

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

 

3,800,000

 

4,275,000

 

 

 

 

 

17,058,878

 

MULTI-LINE 0.8%

 

 

 

 

 

American International Group, 8.175%, due 5/15/68, (FRN)(a)

 

2,723,000

 

3,607,975

 

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

 

3,000,000

 

4,687,500

 

 

 

 

 

8,295,475

 

MULTI-LINE—FOREIGN 1.0%

 

 

 

 

 

Aviva PLC, 8.25% (United Kingdom)

 

2,700,000

 

2,901,161

 

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

 

1,800,000

 

2,451,384

 

 

8


 

 

 

Number
of Shares

 

Value

 

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

 

4,050,000

 

$

4,206,937

 

 

 

 

 

9,559,482

 

PROPERTY CASUALTY 0.7%

 

 

 

 

 

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

 

6,150,000

 

7,164,750

 

 

 

 

 

 

 

PROPERTY CASUALTY—FOREIGN 2.2%

 

 

 

 

 

Atradius Finance BV, 5.25%, due 9/23/44 (EUR) (Netherlands)

 

3,200,000

 

3,049,181

 

Mitsui Sumitomo Insurance Co., Ltd., 7.00%, due 3/15/72, 144A (Japan)(a),(c)

 

3,750,000

 

4,312,688

 

QBE Capital Funding III Ltd., 7.25%, due 5/24/41, 144A (Australia)(a),(c)

 

3,800,000

 

4,251,250

 

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

 

6,003,000

 

6,273,135

 

RL Finance Bonds No. 2 PLC, 6.125%, due 11/30/43 (GBP) (United Kingdom)

 

2,000,000

 

3,164,478

 

 

 

 

 

21,050,732

 

REINSURANCE—FOREIGN 0.7%

 

 

 

 

 

Aquarius + Investments PLC, 8.25% (Switzerland)

 

6,000,000

 

6,465,528

 

TOTAL INSURANCE

 

 

 

96,314,905

 

 

 

 

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.8%

 

 

 

 

 

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

 

6,254

 

7,665,059

 

 

 

 

 

 

 

PIPELINES 0.2%

 

 

 

 

 

Enterprise Products Operating LLC, 7.034%, due 1/15/68, Series B(a)

 

2,150,000

 

2,273,625

 

 

 

 

 

 

 

UTILITIES 2.1%

 

 

 

 

 

ELECTRIC UTILITIES 0.5%

 

 

 

 

 

FPL Group Capital, 7.30%, due 9/1/67, Series D(a)

 

5,200,000

 

5,161,000

 

 

 

 

 

 

 

ELECTRIC UTILITIES—FOREIGN 1.0%

 

 

 

 

 

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

 

7,010,000

 

8,068,300

 

RWE AG, 6.625%, due 7/30/75 (Germany)

 

1,652,000

 

1,478,249

 

 

 

 

 

9,546,549

 

MULTI-UTILITIES 0.6%

 

 

 

 

 

Dominion Resources, 5.75%, due 10/1/54(a)

 

2,722,000

 

2,800,257

 

Dominion Resources, 7.50%, due 6/30/66, Series A(a)

 

1,914,000

 

1,724,993

 

 

9


 

 

 

 

 

Number
of Shares

 

Value

 

PPL Capital Funding, 6.70%, due 3/30/67, Series A

 

 

 

2,000,000

 

$

1,705,560

 

 

 

 

 

 

 

6,230,810

 

TOTAL UTILITIES

 

 

 

 

 

20,938,359

 

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES (Identified cost—$373,457,127)

 

 

 

 

 

404,793,585

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal
Amount

 

 

 

CORPORATE BONDS—INTEGRATED TELECOMMUNICATIONS SERVICES 1.0%

 

 

 

 

 

 

 

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

 

 

 

$

3,210,000

 

3,319,332

 

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

 

 

 

5,660,000

 

4,697,800

 

Frontier Communications Corp., 10.50%, due 9/15/22, 144A(c)

 

 

 

2,500,000

 

2,443,750

 

TOTAL CORPORATE BONDS (Identified cost—$11,403,859)

 

 

 

 

 

10,460,882

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS (Identified cost—$1,134,824,446)

 

134.5

%

 

 

1,318,416,816

 

LIABILITIES IN EXCESS OF OTHER ASSETS

 

(34.5

)

 

 

(338,440,905

)

NET ASSETS (Equivalent to $20.60 per share based on 47,566,736 shares of common stock outstanding)

 

100.0

%

 

 

$

979,975,911

 

 

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. $713,533,462  in aggregate has been pledged as collateral.

(b) A portion of the security has been rehypothecated in connection with the Fund’s credit agreement. $318,530,997 in aggregate has been rehypothecated.

(c) Resale is restricted to qualified institutional investors. Aggregate holdings equal 16.6% of the net assets of the Fund, of which 0.8% are illiquid.

(d) A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $1,076,000 in aggregate has been segregated as collateral.

(e) Illiquid security. Aggregate holdings equal 0.8% of the net assets of the Fund.

 

10


 

Forward foreign currency exchange contracts outstanding at September 30, 2015 were as follows:

 

Counterparty

 

Contracts to
Deliver

 

In Exchange
For

 

Settlement
Date

 

Unrealized
Appreciation
(Depreciation)

 

Brown Brothers Harriman

 

EUR

7,696,094

 

USD

8,628,014

 

10/2/15

 

$

28,402

 

Brown Brothers Harriman

 

GBP

8,952,571

 

USD

13,768,159

 

10/2/15

 

225,162

 

Brown Brothers Harriman

 

USD

13,563,593

 

GBP

8,952,571

 

10/2/15

 

(20,596

)

Brown Brothers Harriman

 

USD

8,592,458

 

EUR

7,696,094

 

10/2/15

 

7,154

 

Brown Brothers Harriman

 

EUR

8,596,465

 

USD

9,601,263

 

11/3/15

 

(9,051

)

Brown Brothers Harriman

 

GBP

9,074,649

 

USD

13,745,108

 

11/3/15

 

19,509

 

 

 

 

 

 

 

 

 

$

250,580

 

 

Glossary of Portfolio Abbreviations

 

EUR

Euro Currency

FRN

Floating Rate Note

GBP

Great British Pound

REIT

Real Estate Investment Trust

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 sale price on such day, options are valued at the average of the quoted bid and ask prices as of the close of business. Over-the-counter options are valued based upon prices provided by the respective counterparty. Forward contracts are valued daily at the prevailing forward exchange rate.

 

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined.

 

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.

 

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at their closing net asset value.

 

The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment manager, subject to the oversight of the Board of Directors. The investment manager has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures 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

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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 judgements and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

 

Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability.  The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.

 

·      Level 1 — quoted prices in active markets for identical investments

·                  Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

·                  Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfer at the end of the period in which the underlying event causing the movement occurred. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 securities as of September 30, 2015.

 

The following is a summary of the inputs used as of September 30, 2015 in valuing the Fund’s investments carried at value:

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

 

 

 

 

Quoted Prices In
Active Markets
for Identical
Investments

 

Other
Significant
Observable
Inputs

 

Significant
Unobservable
Inputs

 

 

 

Total

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Common Stock

 

$

651,379,948

 

$

651,379,948

 

$

—

 

$

—

 

Preferred Securities - $25 Par Value - Banks

 

60,599,109

 

54,003,796

 

6,595,313

 

—

 

Preferred Securities - $25 Par Value - Food

 

6,314,316

 

—

 

6,314,316

 

—

 

Preferred Securities - $25 Par Value - Other Industries

 

184,868,976

 

184,868,976

 

—

 

—

 

Preferred Securities - Capital Securities - Banks

 

117,292,943

 

4,288,020

 

113,004,923

 

—

 

Preferred Securities - Capital Securities - Food

 

7,254,781

 

—

 

—

 

7,254,781

 

Preferred Securities - Capital Securities - Other Industries

 

280,245,861

 

—

 

280,245,861

 

—

 

Corporate Bonds

 

10,460,882

 

—

 

10,460,882

 

—

 

Total Investments(a)

 

$

1,318,416,816

 

$

894,540,740

 

$

416,621,295

 

$

7,254,781

(b)

Forward foreign currency exchange contracts

 

$

280,227

 

$

—

 

$

280,227

 

$

—

 

Total Appreciation in Other Financial Instruments(a)

 

$

280,227

 

$

—

 

$

 280,227

 

$

—

 

Forward foreign currency exchange contracts

 

$

(29,647

)

$

—

 

$

(29,647

)

$

—

 

Total Appreciation in Other Financial Instruments(a)

 

$

(29,647

)

$

—

 

$

(29,647

)

$

—

 

 

(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.

 

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, 2014

 

$

14,621,194

 

$

7,338,750

 

$

7,282,444

 

Change in unrealized appreciation (depreciation)

 

122,337

 

150,000

 

(27,663

)

Transfers out of Level 3(a)

 

(7,488,750

)

(7,488,750

)

—

 

Balance as of September 30, 2015

 

$

7,254,781

 

$

—

 

$

7,254,781

 

 

The change in unrealized appreciation (depreciation) attributable to securities owned on September 30, 2015 which were valued using significant unobservable inputs (Level 3) amounted to $(27,663).

 

(a) As of December 31, 2014, the Fund used significant unobservable inputs in determining the value of certain investments. As of September 30, 2015, the Fund used significant observable inputs in determining the value of the same investments.

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

Note 2.   Derivative Instruments

 

The following is a summary of the Fund’s derivative instruments as of September 30, 2015:

 

Forward foreign currency exchange contracts $ 250,580

 

The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the nine months ended September 30, 2015:

 

 

 

Forward foreign
currency exchange
contracts

 

Average Notional Balance

 

$

25,730,468

 

Ending Notional Balance

 

23,346,371

 

 

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.

 

Transactions in written options during the nine months ended September 30, 2015, were as follows:

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

 

 

Number

 

 

 

 

 

of Contracts

 

Premiums

 

Written options contracts outstanding at December 31, 2014

 

18,444

 

$

1,659,960

 

Option contracts terminated in closing transactions

 

(9,222

)

(682,428

)

Option contracts expired

 

(9,222

)

(977,532

)

Written option contracts outstanding at September 30, 2015

 

—

 

$

—

 

 

Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts to hedge the currency exposure associated with certain of its non-U.S. dollar denominated securities. A forward foreign currency exchange contract is a commitment between two parties to purchase or sell foreign currency at a set price on a future date. The market value of a foreign forward currency exchange contract fluctuates with changes in foreign currency exchange rates. These contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on foreign currency translations. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are included in net realized gain or loss on foreign currency transactions. For federal income tax purposes, the Fund has made an election to treat gains and losses from forward foreign currency exchange contracts as capital gains and losses.

 

Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Schedule of Investments. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the contract. Risks may also arise upon entering these contracts from the potential inability of the counterparties to meet the terms of their contracts. In connection with these contracts, securities may be identified as collateral in accordance with the terms of the respective contracts.

 

Note 3.   Income Tax Information

 

As of September 30, 2015, the federal tax cost and net unrealized appreciation and depreciation in value of securities held were as follows:

 


 

Cost for federal income tax purposes

 

$

1,134,824,446

 

Gross unrealized appreciation

 

$

202,135,769

 

Gross unrealized depreciation

 

(18,543,399

)

Net unrealized appreciation

 

$

183,592,370

 

 


 

Item 2. Controls and Procedures

 

(a)                                 The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act as of a date within 90 days of the filing of this report.

 

(b)                                 During the last fiscal quarter, there were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

(a)                                 Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

 

By:

/s/ Adam M. Derechin

 

 

Name: Adam M. Derechin

 

 

Title: President

 

 

Date: November 25, 2015

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

/s/ Adam M. Derechin

 

By:

/s/ James Giallanza

 

Name: Adam M. Derechin

 

 

Name: James Giallanza

 

Title: President and Principal Executive Officer

 

 

Title: Treasurer and Principal Financial Officer

 

Date: November 25, 2015