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)

 

Francis C. Poli

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, 2011

 

 



 

Item 1. Schedule of Investments

 


 


 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

March 31, 2011 (Unaudited)

 

 

 

Number
of Shares

 

Value

 

COMMON STOCK 69.7%

 

 

 

 

 

BANK 0.3%

 

 

 

 

 

SJB Escrow Corp., Class A, 144A (a),(b),(c),(d)

 

107,000

 

$

2,140,000

 

REAL ESTATE 69.4%

 

 

 

 

 

DIVERSIFIED 4.5%

 

 

 

 

 

American Assets Trust

 

106,515

 

2,265,574

 

Forest City Enterprises (d),(e),(f)

 

599,815

 

11,294,516

 

Vornado Realty Trust (e),(f)

 

259,160

 

22,676,500

 

 

 

 

 

36,236,590

 

HEALTH CARE 6.3%

 

 

 

 

 

Cogdell Spencer (e),(f)

 

939,400

 

5,580,036

 

HCP (e),(f)

 

171,092

 

6,491,231

 

Health Care REIT (e),(f)

 

216,307

 

11,343,139

 

Nationwide Health Properties (e),(f)

 

228,142

 

9,702,879

 

Senior Housing Properties Trust

 

187,600

 

4,322,304

 

Ventas (e),(f)

 

228,954

 

12,432,202

 

 

 

 

 

49,871,791

 

HOTEL 5.3%

 

 

 

 

 

DiamondRock Hospitality Co.

 

514,924

 

5,751,701

 

Hersha Hospitality Trust (e),(f)

 

684,950

 

4,068,603

 

Hospitality Properties Trust (e)

 

186,002

 

4,305,946

 

Host Hotels & Resorts (e),(f)

 

507,534

 

8,937,674

 

Hyatt Hotels Corp., Class A (d)

 

130,576

 

5,619,991

 

Starwood Hotels & Resorts Worldwide

 

146,900

 

8,537,828

 

Sunstone Hotel Investors (d)

 

525,934

 

5,359,268

 

 

 

 

 

42,581,011

 

INDUSTRIAL 4.0%

 

 

 

 

 

ProLogis (e),(f)

 

1,891,239

 

30,221,999

 

Segro PLC (United Kingdom)

 

277,689

 

1,432,181

 

 

 

 

 

31,654,180

 

 

1



 

 

 

Number
of Shares

 

Value

 

OFFICE 8.0%

 

 

 

 

 

BioMed Realty Trust

 

105,723

 

$

2,010,851

 

Boston Properties (e),(f),(g)

 

272,296

 

25,827,276

 

Brandywine Realty Trust (e),(f)

 

293,646

 

3,564,862

 

Douglas Emmett (e),(f)

 

234,600

 

4,398,750

 

Hudson Pacific Properties

 

190,200

 

2,795,940

 

Liberty Property Trust (e),(f)

 

271,733

 

8,940,016

 

Mack-Cali Realty Corp. (e),(f)

 

270,840

 

9,181,476

 

SL Green Realty Corp. (e),(f)

 

96,131

 

7,229,051

 

 

 

 

 

63,948,222

 

OFFICE/INDUSTRIAL 0.8%

 

 

 

 

 

PS Business Parks (e),(f)

 

102,972

 

5,966,198

 

RESIDENTIAL 16.9%

 

 

 

 

 

APARTMENT 15.8%

 

 

 

 

 

Apartment Investment & Management Co.(e),(f)

 

446,699

 

11,377,424

 

Associated Estates Realty Corp.(e),(f)

 

381,218

 

6,053,742

 

AvalonBay Communities(e),(f)

 

124,894

 

14,997,271

 

BRE Properties(e),(f)

 

190,435

 

8,984,723

 

Campus Crest Communities(e),(f)

 

218,907

 

2,589,670

 

Education Realty Trust

 

342,305

 

2,748,709

 

Equity Residential(e),(f)

 

686,582

 

38,730,091

 

Essex Property Trust(e)

 

61,497

 

7,625,628

 

Home Properties(e),(f)

 

154,900

 

9,131,355

 

Post Properties(e),(f)

 

241,966

 

9,497,165

 

UDR(e)

 

606,596

 

14,782,745

 

 

 

 

 

126,518,523

 

MANUFACTURED HOME 1.1%

 

 

 

 

 

Equity Lifestyle Properties(e)

 

149,043

 

8,592,329

 

TOTAL RESIDENTIAL

 

 

 

135,110,852

 

 

2



 

 

 

Number
of Shares

 

Value

 

SELF STORAGE 4.7%

 

 

 

 

 

Public Storage (e),(f)

 

260,911

 

$

28,937,639

 

Sovran Self Storage (e),(f)

 

139,809

 

5,529,446

 

U-Store-It Trust

 

285,476

 

3,003,207

 

 

 

 

 

37,470,292

 

SHOPPING CENTER 17.5%

 

 

 

 

 

COMMUNITY CENTER 5.4%

 

 

 

 

 

Acadia Realty Trust(e)

 

477,875

 

9,041,395

 

Developers Diversified Realty Corp.(e),(f)

 

837,662

 

11,727,268

 

Kimco Realty Corp.(e),(f)

 

330,106

 

6,054,144

 

Ramco-Gershenson Properties Trust

 

304,000

 

3,809,120

 

Regency Centers Corp.

 

158,818

 

6,905,407

 

Urstadt Biddle Properties-Class A(e)

 

293,122

 

5,575,180

 

 

 

 

 

43,112,514

 

REGIONAL MALL 12.1%

 

 

 

 

 

General Growth Properties(e),(f)

 

756,142

 

11,705,078

 

Pennsylvania REIT

 

201,223

 

2,871,452

 

Simon Property Group(e),(f)

 

735,946

 

78,863,974

 

Westfield Group (Australia)

 

291,300

 

2,814,199

 

 

 

 

 

96,254,703

 

TOTAL SHOPPING CENTER

 

 

 

139,367,217

 

SPECIALTY 1.4%

 

 

 

 

 

Digital Realty Trust (e),(f)

 

127,312

 

7,401,920

 

DuPont Fabros Technology (e),(f)

 

168,533

 

4,086,925

 

 

 

 

 

11,488,845

 

TOTAL REAL ESTATE

 

 

 

553,695,198

 

TOTAL COMMON STOCK (Identified cost—$421,580,640)

 

 

 

555,835,198

 

 

3



 

 

 

Number
of Shares

 

Value

 

PREFERRED SECURITIES—$25 PAR VALUE 26.8%

 

 

 

 

 

BANK 6.5%

 

 

 

 

 

Ally Financial, 7.25%, due 2/7/33

 

80,000

 

$

1,933,600

 

Ally Financial, 7.375%, due 12/16/44

 

219,701

 

5,305,779

 

Ally Financial, 8.50%, due 5/15/16, Series A

 

84,000

 

2,089,080

 

Citigroup Capital VII, 7.125%, due 7/31/31, (TruPS)(e)

 

215,000

 

5,370,700

 

Citigroup Capital VIII, 6.95%, due 9/15/31, (TruPS)(e),(f),(g)

 

637,748

 

15,777,886

 

Citigroup Capital XIII, 7.875%, due 10/30/40(e)

 

130,000

 

3,562,000

 

CoBank ACB, 7.00%, 144A ($50 Par Value)(a),(b),(e)

 

135,000

 

6,357,663

 

KeyCorp Capital IX, 6.75%, due 12/15/66(e)

 

252,929

 

6,335,871

 

Regions Financing Trust III, 8.875%, due 6/15/78

 

100,000

 

2,608,000

 

Zions Bancorp, 9.50%, due 12/29/49, Series C

 

100,000

 

2,620,000

 

 

 

 

 

51,960,579

 

BANK—FOREIGN 3.3%

 

 

 

 

 

Barclays Bank PLC, 7.10%, Series III(e)

 

80,000

 

2,017,600

 

Deutsche Bank Contingent Capital Trust III, 7.60%(e)

 

280,000

 

7,341,600

 

HSBC Holdings PLC, 8.00%, Series II(e),(f)

 

115,005

 

3,137,336

 

National Westminster Bank PLC, 7.76%, Series C(e)

 

480,539

 

11,552,158

 

Santander Finance Preferred, 10.50%, Series X

 

67,888

 

1,931,414

 

 

 

 

 

25,980,108

 

FINANCE 2.4%

 

 

 

 

 

INVESTMENT BANKER/BROKER 0.8%

 

 

 

 

 

GMAC Capital Trust I, 8.125%, due 2/15/40, Series II

 

109,500

 

2,792,250

 

Morgan Stanley Capital Trust III, 6.25%, due 3/1/33(e)

 

164,962

 

3,917,848

 

 

 

 

 

6,710,098

 

MORTGAGE LOAN/BROKER 1.6%

 

 

 

 

 

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

 

288,000

 

7,133,760

 

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

 

217,500

 

5,439,675

 

 

 

 

 

12,573,435

 

TOTAL FINANCE

 

 

 

19,283,533

 

 

4


 


 

 

 

Number
of Shares

 

Value

 

INSURANCE 6.0%

 

 

 

 

 

LIFE/HEALTH INSURANCE—FOREIGN 0.8%

 

 

 

 

 

Aegon NV, 6.375%(e)

 

100,555

 

$

2,289,637

 

Aegon NV, 6.875%

 

158,294

 

3,757,900

 

Aegon NV, 7.25%

 

9,297

 

230,008

 

 

 

 

 

6,277,545

 

MULTI-LINE 0.7%

 

 

 

 

 

American Financial Group, 7.00%, due 9/30/50

 

145,000

 

3,639,500

 

American International Group, 7.70%, due 12/18/62

 

93,605

 

2,333,572

 

 

 

 

 

5,973,072

 

MULTI-LINE—FOREIGN 3.1%

 

 

 

 

 

Allianz SE, 8.375%(e)

 

286,472

 

7,672,092

 

ING Groep N.V., 6.375%

 

177,700

 

3,836,543

 

ING Groep N.V., 7.375%(e),(f)

 

408,290

 

9,811,209

 

ING Groep N.V., 8.50%

 

127,900

 

3,283,193

 

 

 

 

 

24,603,037

 

REINSURANCE—FOREIGN 1.4%

 

 

 

 

 

Arch Capital Group Ltd., 7.875%, Series B

 

100,443

 

2,549,243

 

Arch Capital Group Ltd., 8.00%

 

122,864

 

3,131,804

 

Aspen Insurance Holdings Ltd., 7.401%, Series A

 

46,225

 

1,126,041

 

Axis Capital Holdings Ltd., 7.50%, Series B ($100 par value)(e)

 

45,000

 

4,449,375

 

 

 

 

 

11,256,463

 

TOTAL INSURANCE

 

 

 

48,110,117

 

INTEGRATED TELECOMMUNICATIONS SERVICES 1.1%

 

 

 

 

 

Telephone & Data Systems, 6.875%, due 11/15/59

 

154,000

 

3,845,380

 

Telephone & Data Systems, 7.00%, due 3/15/60

 

80,000

 

1,998,400

 

Telephone & Data Systems, 7.60%, due 12/1/41, Series A(e)

 

97,457

 

2,449,094

 

 

 

 

 

8,292,874

 

MEDIA—DIVERSIFIED SERVICES 0.3%

 

 

 

 

 

Comcast Corp., 6.625%, due 5/15/56(e)

 

104,144

 

2,710,868

 

 

5



 

 

 

Number
of Shares

 

Value

 

REAL ESTATE 6.8%

 

 

 

 

 

DIVERSIFIED 1.4%

 

 

 

 

 

Duke Realty Corp., 6.95%, Series M(e),(f)

 

100,000

 

$

2,461,000

 

Duke Realty Corp., 7.25%, Series N(e)

 

133,400

 

3,333,666

 

Lexington Realty Trust, 6.50%, Series C ($50 par value)(e),(f)

 

96,586

 

4,123,256

 

Vornado Realty Trust, 6.75%, Series H(e),(f)

 

56,100

 

1,373,889

 

 

 

 

 

11,291,811

 

HEALTH CARE 0.3%

 

 

 

 

 

Health Care REIT, 6.50%, Series I ($50 Par Value)(Convertible)

 

45,000

 

2,344,500

 

HOTEL 0.3%

 

 

 

 

 

Pebblebrook Hotel Trust, 7.875 %, Series A

 

100,000

 

2,499,000

 

OFFICE 0.4%

 

 

 

 

 

BioMed Realty Trust, 7.375%, Series A(e),(f)

 

55,000

 

1,404,700

 

SL Green Realty Corp., 7.625%, Series C(e)

 

70,000

 

1,754,200

 

 

 

 

 

3,158,900

 

OFFICE/INDUSTRIAL 0.4%

 

 

 

 

 

PS Business Parks, 7.00%, Series H(e)

 

118,864

 

2,964,468

 

RESIDENTIAL 1.2%

 

 

 

 

 

APARTMENT 1.0%

 

 

 

 

 

Apartment Investment & Management Co., 7.75%, Series U

 

100,000

 

2,497,000

 

Apartment Investment & Management Co., 8.00%, Series V(e)

 

101,000

 

2,541,160

 

Apartment Investment & Management Co., 7.875%, Series Y(e)

 

110,000

 

2,755,500

 

 

 

 

 

7,793,660

 

MANUFACTURED HOME 0.2%

 

 

 

 

 

Equity Lifestyle Properties, 8.034 %, Series A

 

60,000

 

1,487,400

 

TOTAL RESIDENTIAL

 

 

 

9,281,060

 

 

6



 

 

 

Number
of Shares

 

Value

 

SHOPPING CENTER 2.8%

 

 

 

 

 

COMMUNITY CENTER 1.9%

 

 

 

 

 

Cedar Shopping Centers, 8.875%, Series A

 

62,000

 

$

1,553,100

 

Developers Diversified Realty Corp., 7.50%, Series I(e)

 

158,603

 

3,957,145

 

Kimco Realty Corp., 7.75%, Series G(e)

 

134,996

 

3,490,996

 

Regency Centers Corp., 7.25%, Series D(e)

 

100,000

 

2,489,000

 

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

 

157,540

 

3,736,849

 

 

 

 

 

15,227,090

 

REGIONAL MALL 0.9%

 

 

 

 

 

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

 

304,982

 

7,414,113

 

TOTAL SHOPPING CENTER

 

 

 

22,641,203

 

TOTAL REAL ESTATE

 

 

 

54,180,942

 

TRANSPORT—MARINE 0.4%

 

 

 

 

 

Seaspan Corp., 9.50%, due 1/19/49, Series C

 

110,000

 

2,961,200

 

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$194,826,457)

 

 

 

213,480,221

 

PREFERRED SECURITIES—CAPITAL SECURITIES 43.8%

 

 

 

 

 

BANK 12.0%

 

 

 

 

 

AgFirst Farm Credit Bank, 6.585%, due 6/29/49, 144A(b),(e)

 

3,000,000

 

2,415,441

 

AgFirst Farm Credit Bank, 7.30%, due 10/14/49, 144A(a),(b),(e),(f)

 

18,000,000

 

15,930,180

 

Astoria Capital Trust I, 9.75%, due 11/1/29, Series B(a),(e)

 

9,600,000

 

10,030,858

 

Bank of America Corp., 8.125%, due 12/29/49 (FRN)(e),(f)

 

9,300,000

 

10,012,566

 

BB&T Capital Trust IV, 6.82%, due 6/12/57

 

2,500,000

 

2,496,875

 

Citigroup Capital III, 7.625%, due 12/1/36

 

8,950,000

 

9,300,840

 

CoBank ACB, 11.00%, Series C, 144A(b),(e)

 

125,000

 

6,960,937

 

Farm Credit Bank of Texas, 10.00%, due 12/15/20, Series I

 

4,000

 

4,492,500

 

JP Morgan Chase & Co., 7.90%, due 12/31/49, (FRN)(e),(f)

 

15,000,000

 

16,468,545

 

NB Capital Trust II, 7.83%, due 12/15/26

 

4,000,000

 

4,120,000

 

Sovereign Capital Trust VI, 7.908%, due 6/13/36(e)

 

3,250,000

 

3,258,252

 

Wells Fargo & Co., 7.98%, due 3/29/49, Series K (FRN)(e)

 

9,550,000

 

10,505,000

 

 

 

 

 

95,991,994

 

 

7



 

 

 

Number
of Shares

 

Value

 

BANK—FOREIGN 12.9%

 

 

 

 

 

Abbey National Capital Trust I, 8.963%, due 12/29/49(e)

 

7,559,000

 

$

8,296,864

 

Barclays Bank PLC, 6.278%, due 12/31/49(e)

 

8,350,000

 

7,264,500

 

Barclays Bank PLC, 6.86%, due 9/29/49, 144A (FRN)(b),(e)

 

8,000,000

 

7,560,000

 

BBVA Bancomer SA Texas, 6.50%, due 3/10/21, 144A(b)

 

2,500,000

 

2,482,905

 

BBVA International Preferred SA, 5.919%, due 12/31/49, (FRN)

 

2,500,000

 

2,118,463

 

BNP Paribas, 7.195%, due 12/31/49, 144A(b),(e)

 

5,900,000

 

5,723,000

 

BPCE SA, 9.00%, due 12/31/49

 

2,750,000

 

4,035,652

 

Claudius Ltd., 7.875%, due 12/29/49

 

5,500,000

 

5,692,500

 

HSBC Capital Funding LP, 10.176%, due 12/29/49, 144A(b),(e)

 

14,692,000

 

19,834,200

 

Intesa Sanpaolo SpA, 9.50%, due 12/31/49

 

5,000,000

 

7,192,287

 

LBG Capital No.1 PLC, 8.00%, due 12/29/49, 144A(b)

 

6,800,000

 

6,562,000

 

Rabobank Nederland, 11.00%, due 6/30/19, 144A(b),(e)

 

2,800,000

 

3,657,819

 

Resona Preferred Global Securities, 7.191%, due 12/29/49, 144A (FRN)(b)

 

2,000,000

 

1,995,248

 

Santander Finance Preferred SA Unipersonal, 11.30%, due 7/27/49, Series VIII

 

2,750,000

 

4,808,587

 

Santander UK PLC, 7.95%, due 10/26/29

 

3,000,000

 

3,182,724

 

SMFG Preferred Capital, 9.50%, due 7/29/49, 144A (FRN)(b)

 

4,950,000

 

5,841,000

 

Standard Chartered PLC, 7.014%, due 7/29/49, 144A(b),(e)

 

6,850,000

 

6,681,449

 

 

 

 

 

102,929,198

 

CONSUMER NON-CYCLICAL 0.3%

 

 

 

 

 

CVS Caremark Corp., 6.302%, due 6/1/37

 

2,600,000

 

2,555,197

 

FINANCE 2.6%

 

 

 

 

 

CREDIT CARD 1.2%

 

 

 

 

 

American Express Co., 6.80%, due 9/1/66 (FRN)(e)

 

4,100,000

 

4,212,750

 

Capital One Capital III, 7.686%, due 8/15/36(e)

 

5,000,000

 

5,193,750

 

 

 

 

 

9,406,500

 

DIVERSIFIED FINANCIAL SERVICES 0.4%

 

 

 

 

 

Credit Suisse Group Guernsey I Ltd., 7.875%, due 2/24/41

 

3,000,000

 

3,087,000

 

 

8


 


 

 

 

Number
of Shares

 

Value

 

INVESTMENT BANKER/BROKER 1.0%

 

 

 

 

 

Schwab Capital Trust I, 7.50%, due 11/15/37, (FRN)(e)

 

7,550,000

 

$

7,824,986

 

TOTAL FINANCE

 

 

 

20,318,486

 

FOOD 0.6%

 

 

 

 

 

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

 

50,000

 

4,596,875

 

INSURANCE 10.4%

 

 

 

 

 

LIFE/HEALTH INSURANCE 1.7%

 

 

 

 

 

American General Institutional Capital B, 8.125%, due 3/15/46, 144A(b)

 

2,000,000

 

2,185,000

 

Great-West Life & Annuity Insurance Co., 7.153%, due 5/16/46, 144A(b),(e)

 

5,200,000

 

5,408,000

 

Lincoln National Corp., 7.00%, due 5/17/66

 

6,000,000

 

6,015,000

 

 

 

 

 

13,608,000

 

LIFE/HEALTH INSURANCE—FOREIGN 0.9%

 

 

 

 

 

Dai-Ichi Mutual Life, 7.25%, due 12/31/49, 144A(b)

 

3,750,000

 

3,719,741

 

Prudential PLC, 7.75%, due 6/23/16, Series EMTN

 

3,750,000

 

3,806,250

 

 

 

 

 

7,525,991

 

MULTI-LINE 2.8%

 

 

 

 

 

American International Group, 8.175%, due 5/15/58

 

5,000,000

 

5,418,750

 

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

 

3,000,000

 

4,150,770

 

MetLife Capital Trust X, 9.25%, due 4/8/38, 144A(b),(e)

 

10,515,000

 

12,749,437

 

 

 

 

 

22,318,957

 

MULTI-LINE—FOREIGN 1.5%

 

 

 

 

 

AXA SA, 6.379%, due 12/14/49, 144A(b),(e)

 

3,385,000

 

3,029,575

 

AXA SA, 6.463%, due 12/31/49, 144A(b),(e)

 

3,600,000

 

3,177,000

 

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

 

2,000,000

 

2,371,832

 

Old Mutual Capital Funding, 8.00%, due 5/29/49

 

3,000,000

 

2,985,000

 

 

 

 

 

11,563,407

 

 

9



 

 

 

Number
of Shares

 

Value

 

PROPERTY CASUALTY 2.7%

 

 

 

 

 

ACE Capital Trust II, 9.70%, due 4/1/30(e)

 

5,410,000

 

$

6,857,175

 

Liberty Mutual Group, 7.00%, due 3/15/37, 144A(b),(e)

 

3,000,000

 

2,889,246

 

Liberty Mutual Group, 7.80%, due 3/15/37, 144A(b),(e)

 

4,000,000

 

4,020,000

 

Liberty Mutual Group, 10.75%, due 6/15/58, 144A(b),(e)

 

2,500,000

 

3,275,000

 

USF&G Capital, 8.312%, due 7/1/46, 144A(b),(e)

 

3,845,000

 

4,311,710

 

 

 

 

 

21,353,131

 

REINSURANCE—FOREIGN 0.8%

 

 

 

 

 

Catlin Insurance Co., 7.249%, due 12/1/49, 144A(b),(e)

 

6,800,000

 

6,460,000

 

TOTAL INSURANCE

 

 

 

82,829,486

 

INTEGRATED TELECOMMUNICATIONS SERVICES 2.0%

 

 

 

 

 

Centaur Funding Corp., 9.089, due 4/1/20,144A(b)

 

14,454

 

16,007,805

 

PIPELINES 1.9%

 

 

 

 

 

Enbridge Energy Partners LP, 8.05%, due 10/1/37(e),(f)

 

6,000,000

 

6,376,572

 

Enterprise Products Operating LP, 8.375%, due 8/1/66(e)

 

7,710,000

 

8,335,767

 

 

 

 

 

14,712,339

 

UTILITIES 1.1%

 

 

 

 

 

ELECTRIC UTILITIES 0.6%

 

 

 

 

 

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

 

5,000,000

 

5,225,405

 

MULTI UTILITIES 0.5%

 

 

 

 

 

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

 

3,650,000

 

3,822,930

 

TOTAL UTILITIES

 

 

 

9,048,335

 

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES
(Identified cost—$321,468,607)

 

 

 

348,989,715

 

 

10



 

 

 

Principal
Amount

 

Value

 

CORPORATE BONDS 2.6%

 

 

 

 

 

BANK 0.5%

 

 

 

 

 

Regions Bank, 7.50%, due 5/15/18, Series BKNT

 

$

1,376,000

 

$

1,456,510

 

Regions Financial Corp., 7.375%, due 12/10/37

 

2,500,000

 

2,456,250

 

 

 

 

 

3,912,760

 

INSURANCE—PROPERTY CASUALTY 0.5%

 

 

 

 

 

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

 

4,500,000

 

4,150,679

 

INTEGRATED TELECOMMUNICATIONS SERVICES 0.5%

 

 

 

 

 

Citizens Communications Co., 9.00%, due 8/15/31

 

4,000,000

 

4,110,000

 

REAL ESTATE 1.1%

 

 

 

 

 

OFFICE 0.7%

 

 

 

 

 

BR Properties SA, 9.00%, due 12/31/49, 144A(a),(b)

 

5,500,000

 

5,465,625

 

SHOPPING CENTER 0.4%

 

 

 

 

 

General Shopping Finance Ltd., 10.00%, due 11/9/15, 144A(b)

 

2,965,000

 

3,016,887

 

TOTAL REAL ESTATE

 

 

 

8,482,512

 

TOTAL CORPORATE BONDS (Identified cost—$20,478,068)

 

 

 

20,655,951

 

 

 

 

Number
of Shares

 

 

 

SHORT-TERM INVESTMENTS 0.5%

 

 

 

 

 

MONEY MARKET FUNDS

 

 

 

 

 

Federated Government Obligations Fund, 0.01%(h)

 

2,256,355

 

2,256,355

 

State Street Institutional Liquid Reserves Fund, 0.19%(h)

 

2,276,976

 

2,276,976

 

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$4,533,331)

 

 

 

4,533,331

 

 

11



 

 

 

 

 

Value

 

 

 

 

 

 

 

TOTAL INVESTMENTS (Identified cost—$962,887,103)

 

143.4

%

$

1,143,494,416

 

 

 

 

 

 

 

LIABILITIES IN EXCESS OF OTHER ASSETS

 

(43.4

)

(346,248,730

)

 

 

 

 

 

 

NET ASSETS (Equivalent to $16.60 per share based on 48,034,510 shares of common stock outstanding)

 

100.0

%

$

797,245,686

 

 

Glossary of Portfolio Abbreviations

 

FRN

Floating Rate Note

 

REIT

Real Estate Investment Trust

 

TruPS

Trust Preferred Securities

 


Note: Percentages indicated are based on the net assets of the Fund.

(a)

Illiquid security. Aggregate holdings equal 5.6% of net assets of the Fund.

(b)

Resale is restricted to qualified institutional investors. Aggregate holdings equal 22.4% of net assets of the Fund, of which 4.3% is illiquid.

(c)

Fair valued security. This security has been valued at its fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Board of Directors. Aggregate fair value securities represent 0.3% of net assets of the Fund.

(d)

Non-income producing security.

(e)

A portion or all of the security is pledged in connection with the revolving credit agreement: $723,139,298 has been pledged as collateral.

(f)

A portion or all of the security has been rehypothecated in connection with the Fund’s revolving credit agreement in the aggregate amount of $322,559,556.

(g)

A portion of the security is segregated as collateral for interest rate swap transactions: $15,464,500 has been segregated as collateral.

(h)

Rate quoted represents the seven day yield of the fund.

 

12



 

COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

March 31, 2011 (Unaudited)

 

Interest rate swaps outstanding at March 31, 2011 are as follows:

 

 

 

 

 

Fixed

 

Floating Rate(a)

 

 

 

Unrealized

 

 

 

Notional

 

Rate

 

(reset monthly)

 

Termination

 

Appreciation

 

Counterparty

 

Amount

 

Payable

 

Receivable

 

Date

 

(Depreciation)

 

Merrill Lynch Derivative

 

 

 

 

 

 

 

 

 

 

 

Products AG

 

$

45,000,000

 

3.510

%

0.254

%

December 22, 2012

 

$

(2,152,134

)

Royal Bank of Canada

 

$

60,000,000

 

3.653

%

0.254

%

July 17, 2013

 

(3,596,935

)

Royal Bank of Canada

 

$

70,000,000

 

3.615

%

0.248

%

March 29, 2014

 

(4,522,327

)

Royal Bank of Canada

 

$

35,000,000

 

1.865

%

0.256

%

June 13, 2015

 

235,863

 

Royal Bank of Canada

 

$

35,000,000

 

2.474

%

0.258

%

February 10, 2016

 

(317,375

)

 

 

 

 

 

 

 

 

 

 

$

(10,352,908

)

 


(a)  Based on LIBOR (London Interbank Offered Rate).  Represents rates in effect at March 31, 2011.

 

Limited Access

 

13



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)

 

Note 1. Portfolio Valuation: Investments in securities that are listed on the New York Stock Exchange are valued, except as indicated below, at the last sale price reflected at the close of the New York Stock Exchange 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 asked prices for the day or, if no asked 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.  In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. Over-the-counter options quotations are provided by the respective counterparty when such prices are believed by the Board of Directors to reflect the fair market value.

 

Securities not listed on the New York Stock Exchange 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 on the business day as of which such value is being determined as reflected on the tape at the close of the exchange representing the principal market for such securities. 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 foreign securities 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 official closing prices as reported by sources as the Board of Directors deem appropriate 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 asked prices for the day, or if no asked price is available, at the bid price. However, certain fixed-income securities may be valued on the basis of prices provided by a pricing service when such prices are believed by the Board of Directors to reflect the fair market value of such securities.

 

Securities for which market prices are unavailable, or securities for which the advisor determines that the bid and/or asked price or a counterparty valuation does not reflect market value, will be valued at fair value 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. Interest rate swaps are valued utilizing quotes received from an outside pricing service.

 

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

 

14



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

materially different than the value that could be realized upon the sale of that security.

 

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

 

Fair value is defined as the price that the Fund would receive to sell an investment or 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.

 

The following is a summary of the inputs used as of March 31, 2011 in valuing the Fund’s investments carried at value:

 

 

 

Total

 

Quoted
Prices In
Active Market
for Identical
Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Common Stock — Bank

 

$

2,140,000

 

$

 

$

 

$

2,140,000

 

Common Stock — Other Industries

 

553,695,198

 

553,695,198

 

 

 

Preferred Securities — $25 Par Value — Bank

 

51,960,579

 

45,602,916

 

 

6,357,663

 

Preferred Securities — $25 Par Value — Insurance — Multi-Line — Foreign

 

24,603,037

 

16,930,945

 

7,672,092

 

 

Preferred Securities — $25 Par Value — Insurance — Reinsurance — Foreign

 

11,256,463

 

6,807,088

 

4,449,375

 

 

Preferred Securities — $25 Par Value — Other Industries

 

125,660,142

 

125,660,142

 

 

 

Preferred Securities — Capital Securities — Food

 

4,596,875

 

 

 

4,596,875

 

Preferred Securities — Capital Securities — Other Industries

 

344,392,840

 

 

344,392,840

 

 

Corporate Bonds — Other Industries

 

20,655,951

 

 

20,655,951

 

 

Money Market Funds

 

4,533,331

 

 

4,533,331

 

 

Total Investments

 

$

1,143,494,416

 

$

748,696,289

 

$

381,703,589

 

$

13,094,538

 

Other Financial Instruments*

 

$

(10,352,908

)

 

$

(10,352,908

)

 

 

15



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 


* Other financial instruments are interest rate swap contracts.

 

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

 

 

 

Total
Investments
in Securities

 

Common
Stock —
Bank

 

Preferred
Securities—
$25 Par
Value —
Bank

 

Preferred
Securities —
Capital
Securities —
Food

 

Corporate
Bonds —
Real
Estate —
Office

 

Balance as of December 31, 2010

 

$

17,490,000

 

$

2,140,000

 

$

5,415,000

 

$

4,462,500

 

$

5,472,500

 

Change in unrealized appreciation(depreciation)

 

360,963

 

 

233,463

 

134,375

 

(6,875

)

Purchases

 

709,200

 

 

709,200

 

 

 

Transfers in and/or out of Level 3

 

(5,465,625

)

 

 

 

(5,465,625

)

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2011

 

$

13,094,538

 

$

2,140,000

 

$

6,357,663

 

$

4,596,875

 

 

 

Investments classified as Level 3 infrequently trade and have significant unobservable inputs. The Level 3 preferred securities have been deemed illiquid and were valued by a pricing service which has utilized independent broker quotes. The Level 3 common stock is illiquid and has been fair valued utilizing inputs and assumptions which include book value, recent comparables in similar securities, as well as liquidity and market risk factors.

 

Note 2. Derivative Instruments:  The following is a summary of the market valuations of the Fund’s derivative instruments as of March 31, 2011:

 

Interest rate contracts

 

$

(10,352,908

)

 

16



 

Cohen & Steers REIT and Preferred Income Fund, Inc.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

 

Interest Rate Swaps: The Fund uses interest rate swaps in connection with borrowing under its credit agreement. The interest rate swaps are intended to reduce the risk that an increase in short-term interest rates could have on the performance of the Fund’s common shares as a result of the floating rate structure of the credit agreement. In these interest rate swaps, the Fund agrees to pay the other party to the interest rate swap (which is known as the counterparty) a fixed rate payment in exchange for the counterparty agreeing to pay the Fund a variable rate payment that is intended to approximate the Fund’s variable rate payment obligation on the credit agreement. The payment obligation is based on the notional amount of the swap. Depending on the state of interest rates in general, the use of interest rate swaps could enhance or harm the overall performance of the common shares. The market value of interest rate swaps is based on pricing models that consider the time value of money, volatility, the current market and contractual prices of the underlying financial instrument. Unrealized appreciation is reported as an asset and unrealized depreciation is reported as a liability on the Statement of Assets and Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be paid or received on swaps, is reported as unrealized appreciation or depreciation in the Statement of Operations. A realized gain or loss is recorded upon payment or receipt of a periodic payment or termination of swap agreements. Swap agreements involve, to varying degrees, elements of market and counterparty risk, and exposure to loss in excess of the related amounts reflected in the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that such amount is positive.

 

Note 3. Income Tax Information

 

As of March 31, 2011, the federal tax cost and net unrealized appreciation on securities were as follows:

 

Gross unrealized appreciation

 

$

187,490,778

 

Gross unrealized depreciation

 

(6,883,465

)

Net unrealized appreciation

 

$

180,607,313

 

Cost for federal income tax purposes

 

$

962,887,103

 

 

17



 

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, 2011

 

 

 

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

 

 

Title: Treasurer and Principal

 

 Executive Officer

 

 

 Financial Officer

 

 

 

 

 

 

Date: May 27, 2011