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:

March 31, 2015

 

 


 

Item 1. Schedule of Investments

 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

March 31, 2015 (Unaudited)

 

 

 

Number
of Shares

 

Value

 

COMMON STOCK—REAL ESTATE 66.0%

 

 

 

 

 

DIVERSIFIED 4.6%

 

 

 

 

 

American Assets Trust(a)

 

175,367

 

$

7,589,884

 

Gramercy Property Trust

 

300,424

 

8,432,902

 

Vornado Realty Trust(a),(b)

 

302,943

 

33,929,616

 

 

 

 

 

49,952,402

 

HEALTH CARE 7.5%

 

 

 

 

 

Aviv REIT(a),(b)

 

291,448

 

10,637,852

 

Health Care REIT(a),(b)

 

336,397

 

26,023,672

 

Healthcare Trust of America, Class A(a)

 

402,380

 

11,210,307

 

Omega Healthcare Investors

 

191,672

 

7,776,133

 

Physicians Realty Trust

 

621,761

 

10,949,211

 

Ventas(a),(b)

 

187,198

 

13,669,198

 

 

 

 

 

80,266,373

 

HOTEL 3.4%

 

 

 

 

 

Extended Stay America(a)

 

516,489

 

10,087,030

 

Host Hotels & Resorts(a),(b)

 

752,869

 

15,192,897

 

Sunstone Hotel Investors(a),(b)

 

661,496

 

11,027,138

 

 

 

 

 

36,307,065

 

INDUSTRIALS 4.2%

 

 

 

 

 

Prologis(a),(b)

 

491,017

 

21,388,700

 

QTS Realty Trust, Class A

 

217,683

 

7,925,838

 

Rexford Industrial Realty

 

388,613

 

6,143,972

 

STAG Industrial

 

408,934

 

9,618,128

 

 

 

 

 

45,076,638

 

OFFICE 9.5%

 

 

 

 

 

BioMed Realty Trust(a)

 

678,504

 

15,374,901

 

Brandywine Realty Trust(a)

 

685,266

 

10,950,551

 

Douglas Emmett(a),(b)

 

382,532

 

11,403,279

 

Equity Commonwealth(a)

 

457,661

 

12,150,899

 

Kilroy Realty Corp.(a),(b)

 

252,628

 

19,242,675

 

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

 

256,653

 

32,949,112

 

 

 

 

 

102,071,417

 

RESIDENTIAL 16.3%

 

 

 

 

 

APARTMENT 15.0%

 

 

 

 

 

American Homes 4 Rent, Class A(a),(b)

 

745,738

 

12,341,964

 

Apartment Investment & Management Co.(a)

 

264,535

 

10,412,097

 

 

1


 

 

 

Number
of Shares

 

Value

 

AvalonBay Communities(a)

 

65,019

 

$

11,329,561

 

Equity Residential(a),(b)

 

649,605

 

50,578,245

 

Essex Property Trust(a)

 

107,418

 

24,695,398

 

Home Properties

 

131,837

 

9,134,986

 

Mid-America Apartment Communities

 

144,826

 

11,190,705

 

Starwood Waypoint Residential Trust

 

306,079

 

7,912,142

 

UDR(a),(b)

 

673,132

 

22,906,682

 

 

 

 

 

160,501,780

 

MANUFACTURED HOME 1.3%

 

 

 

 

 

Sun Communities

 

213,633

 

14,253,594

 

TOTAL RESIDENTIAL

 

 

 

174,755,374

 

 

 

 

 

 

 

SELF STORAGE 5.3%

 

 

 

 

 

CubeSmart(a),(b)

 

770,854

 

18,616,124

 

Extra Space Storage(a),(b)

 

392,436

 

26,516,900

 

Sovran Self Storage(a),(b)

 

119,920

 

11,265,285

 

 

 

 

 

56,398,309

 

SHOPPING CENTERS 14.2%

 

 

 

 

 

COMMUNITY CENTER 5.4%

 

 

 

 

 

DDR Corp.(a)

 

949,842

 

17,686,058

 

Kimco Realty Corp.(a),(b)

 

161,493

 

4,336,087

 

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

 

557,383

 

10,367,324

 

Regency Centers Corp.(a),(b)

 

249,571

 

16,980,811

 

Retail Properties of America, Class A

 

580,886

 

9,311,602

 

 

 

 

 

58,681,882

 

REGIONAL MALL 8.8%

 

 

 

 

 

General Growth Properties(a),(b)

 

731,479

 

21,615,205

 

Macerich Co. (The)(a)

 

162,713

 

13,721,587

 

Pennsylvania REIT

 

247,002

 

5,737,857

 

Simon Property Group(a),(b)

 

271,588

 

53,133,476

 

 

 

 

 

94,208,125

 

TOTAL SHOPPING CENTERS

 

 

 

152,890,007

 

 

 

 

 

 

 

SPECIALTY 1.0%

 

 

 

 

 

CyrusOne(a)

 

329,384

 

10,250,430

 

TOTAL COMMON STOCK
(Identified cost—$485,735,443)

 

 

 

707,968,015

 

 

2


 

 

 

Number
of Shares

 

Value

 

PREFERRED SECURITIES—$25 PAR VALUE 26.3%

 

 

 

 

 

BANKS 9.2%

 

 

 

 

 

AgriBank FCB, 6.875%, ($100 Par Value)

 

38,000

 

$

3,992,375

 

Bank of America Corp., 6.50%, Series Y

 

309,600

 

7,919,568

 

BB&T Corp., 5.20%, Series F

 

99,981

 

2,407,542

 

Capital One Financial Corp., 6.25%, Series C

 

202,803

 

5,195,813

 

Citigroup, 6.875%, Series K(a),(b)

 

152,243

 

4,150,144

 

CoBank ACB, 6.25%, 144A ($100 Par Value)(a),(c)

 

33,000

 

3,391,783

 

CoBank ACB, 6.125%, Series G ($100 Par Value)(a)

 

46,500

 

4,289,625

 

Countrywide Capital IV, 6.75%, due 4/1/33(a)

 

195,210

 

4,989,568

 

Countrywide Capital V, 7.00%, due 11/1/36(a)

 

2,253

 

58,330

 

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

 

63,000

 

6,579,563

 

Fifth Third Bancorp, 6.625%, Series I

 

155,465

 

4,391,886

 

First Republic Bank, 5.50%

 

54,276

 

1,342,788

 

Hancock Holding Co., 5.95%, due 6/15/45

 

65,000

 

1,576,250

 

Huntington Bancshares, 8.50%, Series A ($1,000 Par Value)(Convertible)(a)

 

3,212

 

4,281,596

 

JPMorgan Chase & Co., 5.50%, Series O

 

135,021

 

3,351,221

 

JPMorgan Chase & Co., 6.125%, Series Y

 

130,000

 

3,302,000

 

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

 

142,500

 

4,104,000

 

RBS Capital Funding Trust VII, 6.08%, Series G

 

256,000

 

6,341,120

 

Regions Financial Corp., 6.375%, Series B

 

256,532

 

6,649,309

 

SunTrust Banks, 5.875%, Series E

 

100,000

 

2,507,000

 

US Bancorp, 6.50%, Series F(a)

 

78,991

 

2,346,823

 

Wells Fargo & Co., 5.20%

 

60,000

 

1,474,800

 

Wells Fargo & Co., 5.85%(a)

 

320,142

 

8,490,166

 

Wells Fargo & Co., 6.625%

 

46,774

 

1,320,430

 

Zions Bancorp, 7.90%, Series F(a)

 

95,656

 

2,635,323

 

Zions Bancorp, 6.30%, Series G

 

45,086

 

1,177,646

 

 

 

 

 

98,266,669

 

BANKS—FOREIGN 1.3%

 

 

 

 

 

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

 

100,000

 

2,604,000

 

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

 

250,000

 

6,562,500

 

HSBC Holdings PLC, 6.20%, Series A (United Kingdom)

 

31,705

 

812,599

 

National Westminster Bank PLC, 7.76%, Series C (United Kingdom)(a)

 

172,192

 

4,476,992

 

 

 

 

 

14,456,091

 

DIVERSIFIED FINANCIAL SERVICES 0.2%

 

 

 

 

 

State Street Corp., 5.90%, Series D

 

77,730

 

2,121,252

 

 

3


 

 

 

Number
of Shares

 

Value

 

ELECTRIC—INTEGRATED 0.5%

 

 

 

 

 

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

 

181,652

 

$

5,106,238

 

 

 

 

 

 

 

 

FINANCE—INVESTMENT BANKER/BROKER 1.6%

 

 

 

 

 

Goldman Sachs Group, 6.375%, Series K

 

102,192

 

2,730,570

 

Morgan Stanley, 6.875%(a)

 

339,231

 

9,332,245

 

Morgan Stanley, 6.375%, Series I

 

208,340

 

5,425,174

 

 

 

 

 

17,487,989

 

INDUSTRIALS—CHEMICALS 1.2%

 

 

 

 

 

CHS, 6.75%(a)

 

210,453

 

5,475,987

 

CHS, 7.50%, Series 4

 

73,795

 

2,044,859

 

CHS, 7.10%, Series II(a)

 

218,466

 

5,900,767

 

 

 

 

 

13,421,613

 

INSURANCE 4.0%

 

 

 

 

 

LIFE/HEALTH INSURANCE 0.2%

 

 

 

 

 

Principal Financial Group, 6.518%, Series B (FRN)

 

72,226

 

1,826,596

 

 

 

 

 

 

 

LIFE/HEALTH INSURANCE—FOREIGN 0.1%

 

 

 

 

 

Aegon NV, 6.50% (Netherlands)

 

44,521

 

1,147,306

 

 

 

 

 

 

 

MULTI-LINE 1.7%

 

 

 

 

 

American Financial Group, due 9/30/54

 

139,041

 

3,660,950

 

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

 

78,400

 

1,970,192

 

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

 

183,052

 

5,623,357

 

Kemper Corp., 7.375%, due 2/27/54

 

108,366

 

2,844,607

 

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

 

172,793

 

4,375,119

 

 

 

 

 

18,474,225

 

MULTI-LINE—FOREIGN 1.0%

 

 

 

 

 

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

 

149,060

 

3,830,842

 

ING Groep N.V., 7.375% (Netherlands)(a)

 

294,873

 

7,592,980

 

 

 

 

 

11,423,822

 

REINSURANCE 0.3%

 

 

 

 

 

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

 

108,573

 

3,135,588

 

 

 

 

 

 

 

REINSURANCE—FOREIGN 0.7%

 

 

 

 

 

Aspen Insurance Holdings Ltd., 5.95% (Bermuda)

 

114,309

 

2,935,455

 

Aspen Insurance Holdings Ltd., 7.25% (Bermuda)

 

106,000

 

2,809,000

 

 

4


 

 

 

Number
of Shares

 

Value

 

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

 

55,284

 

$

1,489,351

 

 

 

 

 

7,233,806

 

TOTAL INSURANCE

 

 

 

43,241,343

 

 

 

 

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.6%

 

 

 

 

 

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

 

105,000

 

2,625,000

 

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

 

73,856

 

1,943,890

 

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

 

55,429

 

1,458,891

 

 

 

 

 

6,027,781

 

REAL ESTATE 6.9%

 

 

 

 

 

DIVERSIFIED 1.6%

 

 

 

 

 

Coresite Realty Corp., 7.25%, Series A

 

79,200

 

2,071,080

 

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

 

95,536

 

4,702,759

 

National Retail Properties, 5.70%, Series E

 

73,266

 

1,827,987

 

NorthStar Realty Finance Corp., 8.50%, Series D

 

119,300

 

3,106,572

 

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

 

207,536

 

5,400,087

 

 

 

 

 

17,108,485

 

FINANCE 0.2%

 

 

 

 

 

iStar Financial, 7.80%, Series F

 

79,630

 

1,959,296

 

 

 

 

 

 

 

HOTEL 0.8%

 

 

 

 

 

Hersha Hospitality Trust, 6.875%, Series C

 

134,345

 

3,457,368

 

Hospitality Properties Trust, 7.125%, Series D

 

95,000

 

2,513,700

 

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

 

100,000

 

2,599,000

 

 

 

 

 

8,570,068

 

INDUSTRIALS 0.6%

 

 

 

 

 

Gramercy Property Trust, 7.125%, Series B

 

151,270

 

3,997,310

 

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

 

87,500

 

2,340,625

 

 

 

 

 

6,337,935

 

OFFICE 1.0%

 

 

 

 

 

American Realty Capital Properties, 6.70%, Series F(a),(b)

 

323,710

 

7,639,556

 

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

 

100,000

 

2,625,000

 

 

 

 

 

10,264,556

 

RESIDENTIAL—MANUFACTURED HOME 0.4%

 

 

 

 

 

Campus Crest Communities, 8.00%, Series A

 

94,068

 

2,382,742

 

Equity Lifestyle Properties, 6.75%, Series C

 

60,843

 

1,612,340

 

 

 

 

 

3,995,082

 

 

5


 

 

 

Number
of Shares

 

Value

 

SHOPPING CENTERS 2.2%

 

 

 

 

 

COMMUNITY CENTER 1.5%

 

 

 

 

 

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

 

219,000

 

$

5,612,970

 

DDR Corp., 6.50%, Series J

 

60,000

 

1,532,400

 

Inland Real Estate Corp., 8.125%, Series A

 

135,000

 

3,530,250

 

Inland Real Estate Corp., 6.95%, Series B

 

21,012

 

540,219

 

Saul Centers, 6.875%, Series C

 

79,140

 

2,103,541

 

Weingarten Realty Investors, 6.50%, Series F(a)

 

101,803

 

2,571,544

 

 

 

 

 

15,890,924

 

REGIONAL MALL 0.7%

 

 

 

 

 

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

 

324,982

 

8,209,045

 

TOTAL SHOPPING CENTERS

 

 

 

24,099,969

 

 

 

 

 

 

 

SPECIALTY 0.1%

 

 

 

 

 

Digital Realty Trust, 7.375%, Series H

 

60,000

 

1,656,600

 

TOTAL REAL ESTATE

 

 

 

73,991,991

 

 

 

 

 

 

 

SELF STORAGE 0.2%

 

 

 

 

 

Public Storage, 5.375%, Series V

 

107,703

 

2,593,488

 

 

 

 

 

 

 

TRANSPORT—MARINE—FOREIGN 0.3%

 

 

 

 

 

Seaspan Corp., 6.375%, due 4/30/19 (Hong Kong)

 

40,225

 

1,012,866

 

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

 

40,786

 

1,091,433

 

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

 

40,622

 

938,368

 

 

 

 

 

3,042,667

 

UTILITIES 0.3%

 

 

 

 

 

SCE Trust III, 5.75%

 

112,175

 

3,079,204

 

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$260,845,268)

 

 

 

282,836,326

 

 

 

 

 

 

 

PREFERRED SECURITIES—CAPITAL SECURITIES 36.9%

 

 

 

 

 

BANKS 9.1%

 

 

 

 

 

Bank of America Corp., 6.10%, Series AA

 

5,282,000

 

5,371,134

 

Bank of America Corp., 6.50%, Series Z

 

6,450,000

 

6,837,000

 

Citigroup, 5.875%, Series O

 

3,950,000

 

3,999,375

 

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

 

4,700,000

 

6,169,361

 

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

 

1,839,000

 

1,839,000

 

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

 

6,000

 

7,498,125

 

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

 

3,250,000

 

4,062,169

 

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

 

3,340,000

 

2,605,200

 

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

 

13,500,000

 

14,596,875

 

 

6


 

 

 

Number
of Shares

 

Value

 

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

 

5,900,000

 

$

6,431,000

 

JPMorgan Chase & Co., 6.125%, Series U

 

1,900,000

 

1,947,310

 

JPMorgan Chase & Co., 6.10%, Series X

 

2,000,000

 

2,065,000

 

PNC Financial Services Group, 6.75%(a),(b)

 

6,275,000

 

6,996,625

 

Wells Fargo & Co., 5.90%, Series S

 

2,255,000

 

2,353,656

 

Wells Fargo & Co., 7.98%, Series K(a),(b)

 

14,975,000

 

16,472,500

 

Wells Fargo & Co., 5.875%, Series U

 

3,870,000

 

4,102,974

 

Zions Bancorp, 7.20%, Series J

 

3,997,000

 

4,282,785

 

 

 

 

 

97,630,089

 

BANKS—FOREIGN 12.3%

 

 

 

 

 

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

 

2,474,000

 

2,803,552

 

Banco Bilbao Vizcaya Argentaria SA, 9.00% (Spain)

 

3,400,000

 

3,706,000

 

Banco Bilbao Vizcaya Argentaria SA, 6.75%, (EUR) (Spain)

 

3,200,000

 

3,528,301

 

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

 

3,375,000

 

3,957,187

 

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

 

4,300,000

 

4,806,540

 

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

 

2,050,000

 

2,460,786

 

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

 

5,320,000

 

5,710,573

 

BBVA Bancomer SA Texas, 6.75%, due 9/30/22, 144A (Mexico)(c)

 

2,800,000

 

3,172,960

 

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

 

3,200,000

 

3,872,000

 

Credit Agricole SA, 7.875%, 144A (France)(c)

 

3,509,000

 

3,727,155

 

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

 

2,000,000

 

2,288,574

 

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

 

4,005,000

 

4,310,381

 

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

 

6,400,000

 

6,519,991

 

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

 

8,735,906

 

10,887,123

 

HBOS Capital Funding LP, 6.85% (United Kingdom)

 

3,300,000

 

3,403,534

 

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

 

8,442,000

 

12,831,840

 

HSBC Holdings PLC, 6.375% (United Kingdom)

 

4,400,000

 

4,510,000

 

HSBC Holdings PLC, 6.375% (United Kingdom)

 

4,400,000

 

4,499,000

 

Itau Unibanco Holding SA/Cayman Island, 5.50%, due 8/6/22, 144A (Brazil)(c)

 

1,800,000

 

1,796,400

 

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

 

7,366,000

 

7,844,790

 

Nationwide Building Society, 10.25% (United Kingdom)

 

4,790,000

 

9,015,299

 

Rabobank Nederland, 8.40% (Netherlands)

 

3,000,000

 

3,330,570

 

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

 

5,800,000

 

7,482,000

 

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

 

5,691,000

 

7,199,115

 

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

 

3,600,000

 

3,635,431

 

 

7


 

 

 

Number
of Shares

 

Value

 

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

 

2,250,000

 

$

2,550,058

 

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

 

1,750,000

 

2,125,624

 

 

 

 

 

131,974,784

 

FINANCE—DIVERSIFIED FINANCIAL SERVICES 2.0%

 

 

 

 

 

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

 

10,000,000

 

11,775,000

 

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

 

5,600,000

 

6,328,000

 

UBS Group AG, 7.00% (Switzerland)

 

1,900,000

 

1,977,140

 

UBS Group AG, 7.125% (Switzerland)

 

1,600,000

 

1,680,400

 

 

 

 

 

21,760,540

 

FOOD 0.7%

 

 

 

 

 

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

 

68,100

 

7,259,038

 

 

 

 

 

 

 

INSURANCE 8.8%

 

 

 

 

 

LIFE/HEALTH INSURANCE 1.3%

 

 

 

 

 

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

 

9,315,000

 

13,914,281

 

 

 

 

 

 

 

LIFE/HEALTH INSURANCE—FOREIGN 1.9%

 

 

 

 

 

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

 

3,400,000

 

3,720,610

 

La Mondiale Vie, 7.625% (France)

 

5,700,000

 

6,330,562

 

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

 

5,000,000

 

5,440,145

 

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

 

3,800,000

 

4,457,332

 

 

 

 

 

19,948,649

 

MULTI-LINE 1.3%

 

 

 

 

 

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

 

5,973,000

 

8,499,878

 

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

 

3,000,000

 

5,053,500

 

 

 

 

 

13,553,378

 

MULTI-LINE—FOREIGN 0.9%

 

 

 

 

 

Aviva PLC, 8.25% (United Kingdom)

 

2,700,000

 

3,026,997

 

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

 

1,800,000

 

2,515,500

 

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

 

4,050,000

 

4,333,500

 

 

 

 

 

9,875,997

 

PROPERTY CASUALTY 0.8%

 

 

 

 

 

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

 

6,900,000

 

8,469,750

 

 

 

 

 

 

 

PROPERTY CASUALTY—FOREIGN 1.6%

 

 

 

 

 

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

 

3,200,000

 

3,495,269

 

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

 

3,750,000

 

4,476,562

 

 

8


 

 

 

Number
of Shares

 

Value

 

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

 

4,503,000

 

$

4,874,497

 

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

 

2,650,000

 

4,409,611

 

 

 

 

 

17,255,939

 

REINSURANCE—FOREIGN 1.0%

 

 

 

 

 

Aquarius + Investments PLC, 8.25% (Switzerland)

 

6,000,000

 

6,727,500

 

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

 

3,800,000

 

4,232,786

 

 

 

 

 

10,960,286

 

TOTAL INSURANCE

 

 

 

93,978,280

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.7%

 

 

 

 

 

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

 

6,254

 

7,797,956

 

 

 

 

 

 

 

PIPELINES 1.0%

 

 

 

 

 

Enbridge Energy Partners LP, 8.05%, due 10/1/37(a),(b)

 

7,579,000

 

8,166,373

 

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

 

2,150,000

 

2,325,887

 

 

 

 

 

10,492,260

 

UTILITIES 2.3%

 

 

 

 

 

ELECTRIC UTILITIES 0.5%

 

 

 

 

 

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

 

5,200,000

 

5,476,011

 

 

 

 

 

 

 

ELECTRIC UTILITIES—FOREIGN 0.8%

 

 

 

 

 

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

 

7,010,000

 

8,471,402

 

 

 

 

 

 

 

MULTI-UTILITIES 1.0%

 

 

 

 

 

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

 

4,883,000

 

5,228,712

 

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

 

2,968,000

 

3,071,880

 

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

 

2,864,000

 

2,770,742

 

 

 

 

 

11,071,334

 

TOTAL UTILITIES

 

 

 

25,018,747

 

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES
(Identified cost—$350,530,073)

 

 

 

395,911,694

 

 

9


 

 

 

Principal
Amount

 

Value

 

CORPORATE BONDS 1.3%

 

 

 

 

 

INSURANCE-PROPERTY CASUALTY 0.6%

 

 

 

 

 

Liberty Mutual Insurance, 7.697%, due 10/15/97, 144A(a),(c)

 

$

5,250,000

 

$

6,874,502

 

 

 

 

 

 

 

 

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.7%

 

 

 

 

 

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

 

3,660,000

 

4,361,256

 

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

 

3,000,000

 

3,225,000

 

 

 

 

 

7,568,256

 

TOTAL CORPORATE BONDS
(Identified cost—$11,771,637)

 

 

 

14,460,758

 

 

 

 

 

 

Number
of Shares

 

 

 

SHORT-TERM INVESTMENTS 0.6%

 

 

 

 

 

 

 

MONEY MARKET FUNDS

 

 

 

 

 

 

 

State Street Institutional Treasury Money Market Fund, 0.00%(f)

 

 

 

6,400,000

 

6,400,000

 

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$6,400,000)

 

 

 

 

 

6,400,000

 

TOTAL INVESTMENTS
(Identified cost—$1,115,282,421)

 

131.1

%

 

 

1,407,576,793

 

LIABILITIES IN EXCESS OF OTHER ASSETS

 

(31.1

)

 

 

(334,128,725

)

NET ASSETS (Equivalent to $22.47 per share based on 47,769,767 shares of common stock outstanding)

 

100.0

%

 

 

$

1,073,448,068

 

 

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 revolving credit agreement. $701,750,107 in aggregate has been pledged as collateral.

(b)

A portion of the security has been rehypothecated in connection with the Fund’s revolving credit agreement. $309,800,368 in aggregate has been rehypothecated.

(c)

Resale is restricted to qualified institutional investors. Aggregate holdings equal 14.5% of the net assets of the Fund, of which 0.7% are illiquid.

(d)

A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $1,124,400 in aggregate has been segregated as collateral.

 

10


 

(e)

Illiquid security. Aggregate holdings equal 0.7% of the net assets of the Fund.

(f)

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

 

Forward foreign currency exchange contracts outstanding at March 31, 2015 were as follows:

 

Counterparty

 

Contracts to
Deliver

 

In Exchange
For

 

Settlement
Date

 

Unrealized
Appreciation
(Depreciation)

 

Brown Brothers Harriman

 

EUR

 

11,333,693

 

USD

 

12,712,754

 

4/2/15

 

$

526,197

 

Brown Brothers Harriman

 

GBP

 

8,960,196

 

USD

 

13,840,080

 

4/2/15

 

548,525

 

Brown Brothers Harriman

 

USD

 

13,298,723

 

GBP

 

8,960,196

 

4/2/15

 

(7,168

)

Brown Brothers Harriman

 

USD

 

12,170,006

 

EUR

 

11,333,693

 

4/2/15

 

16,551

 

Brown Brothers Harriman

 

EUR

 

11,416,385

 

USD

 

12,262,750

 

5/5/15

 

(18,024

)

Brown Brothers Harriman

 

GBP

 

9,049,095

 

USD

 

13,426,432

 

5/5/15

 

5,900

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,071,981

 

 

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. 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 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 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.

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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 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.

 

Foreign equity fair value pricing procedures utilized by the Fund may cause certain non-U.S. equity holdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values such securities and the earlier closing of foreign 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 are not necessarily an indication of the risk associated with investing in those securities.

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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 March 31, 2015.

 

The following is a summary of the inputs used as of March 31, 2015 in valuing the Fund’s 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)

 

Common Stock

 

$

707,968,015

 

$

707,968,015

 

$

—

 

$

—

 

Preferred Securities - $25 Par Value:

 

 

 

 

 

 

 

—

 

Banks

 

98,266,669

 

78,437,073

 

19,829,596

 

—

 

Other Industries

 

184,569,657

 

184,569,657

 

—

 

—

 

Preferred Securities - Capital Securities:

 

 

 

 

 

 

 

 

 

Banks

 

97,630,089

 

—

 

90,131,964

 

7,498,125

 

Food

 

7,259,038

 

—

 

—

 

7,259,038

 

Other Industries

 

291,022,567

 

—

 

291,022,567

 

—

 

Corporate Bonds

 

14,460,758

 

—

 

14,460,758

 

—

 

Short-Term Investments

 

6,400,000

 

—

 

6,400,000

 

—

 

Total Investments(a)

 

$

1,407,576,793

 

$

970,974,745

 

$

421,844,885

 

$

14,757,163

(b)

Forward foreign currency exchange contracts

 

$

1,097,173

 

$

—

 

$

1,097,173

 

$

—

 

Total Appreciation in Other Financial Instruments(a)

 

$

1,097,173

 

$

—

 

$

1,097,173

 

$

—

 

Forward foreign currency exchange contracts

 

$

(25,192

)

$

 

 

$

(25,192

)

$

 

 

Total Appreciation in Other Financial Instruments(a)

 

$

(25,192

)

$

—

 

$

(25,192

)

$

—

 

 

(a)

Portfolio holdings are disclosed individually on the Schedule of Investments.

(b)

Level 3 investments are valued by a third-party princing 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:

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

 

 

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)

 

135,969

 

159,375

 

(23,406

)

Balance as of March 31, 2015

 

$

14,757,163

 

$

7,498,125

 

$

7,259,038

 

 

The change in unrealized appreciation (depreciation) attributable to securities owned on March 31, 2015 which were valued using significant unobservable inputs (Level 3) amounted to $135,969.

 

Note 2.   Derivative Instruments

 

The following is a summary of the Fund’s derivative instruments as of March 31, 2015:

 

Forward foreign currency exchange contracts $ 1,071,981

 

The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the three months ended March 31, 2015:

 

 

 

Forward foreign
currency exchange
contracts

 

Average Notional Balance

 

$

26,385,035

 

Ending Notional Balance

 

25,689,182

 

 

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 on the Statement of Assets and Liabilities 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

 


 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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.

 

Transactions in written option contracts during the three months ended March 31, 2015, were as follows:

 

 

 

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 March 31, 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 March 31, 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

 

$

1,115,282,421

 

Gross unrealized appreciation

 

$

296,224,522

 

Gross unrealized depreciation

 

(3,930,150

)

Net unrealized appreciation

 

$

292,294,372

 

 


 

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: May 27, 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: May 27, 2015