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 |
|
10017 |
||||
|
(Address of principal executive offices) |
|
(Zip code) |
||||
|
|
||||||
|
Francis C. Poli |
||||||
|
(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, 2009 |
|
||||
Item 1. Schedule of Investments
COHEN & STEERS REIT AND PREFERRED INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
March 31, 2009 (Unaudited)
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
COMMON STOCK 62.3% |
|
|
|
|
|
|
|
DIVERSIFIED 2.1% |
|
|
|
|
|
|
|
Vornado Realty Trust(a) |
|
157,474 |
|
$ |
5,234,436 |
|
|
|
|
|
|
|
|
|
|
HEALTH CARE 12.5% |
|
|
|
|
|
|
|
HCP |
|
400,788 |
|
7,154,066 |
|
|
|
Health Care REIT(b) |
|
123,250 |
|
3,770,218 |
|
|
|
LTC Properties(b) |
|
61,524 |
|
1,079,131 |
|
|
|
Nationwide Health Properties |
|
377,767 |
|
8,382,650 |
|
|
|
Omega Healthcare Investors(b) |
|
292,126 |
|
4,113,134 |
|
|
|
Senior Housing Properties Trust |
|
123,560 |
|
1,732,311 |
|
|
|
Ventas |
|
220,840 |
|
4,993,192 |
|
|
|
|
|
|
|
31,224,702 |
|
|
|
HOTEL 1.5% |
|
|
|
|
|
|
|
Hospitality Properties Trust |
|
209,402 |
|
2,512,824 |
|
|
|
Host Hotels & Resorts |
|
321,530 |
|
1,260,398 |
|
|
|
|
|
|
|
3,773,222 |
|
|
|
INDUSTRIAL 3.7% |
|
|
|
|
|
|
|
AMB Property Corp. |
|
309,086 |
|
4,450,838 |
|
|
|
EastGroup Properties(b) |
|
61,478 |
|
1,725,687 |
|
|
|
ProLogis |
|
446,599 |
|
2,902,894 |
|
|
|
|
|
|
|
9,079,419 |
|
|
|
OFFICE 13.9% |
|
|
|
|
|
|
|
BioMed Realty Trust |
|
298,541 |
|
2,021,123 |
|
|
|
Boston Properties(a) |
|
262,728 |
|
9,203,362 |
|
|
|
Highwoods Properties |
|
195,418 |
|
4,185,853 |
|
|
|
Kilroy Realty Corp. |
|
133,154 |
|
2,288,917 |
|
|
|
Liberty Property Trust |
|
272,462 |
|
5,160,430 |
|
|
|
Mack-Cali Realty Corp. |
|
596,502 |
|
11,816,705 |
|
|
|
|
|
|
|
34,676,390 |
|
|
|
RESIDENTIAL—APARTMENT 10.7% |
|
|
|
|
|
|
|
American Campus Communities(b) |
|
147,291 |
|
2,556,972 |
|
|
|
Apartment Investment & Management Co. |
|
494,507 |
|
2,709,898 |
|
|
1
2
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
Bank of America Corp., 8.625%, Series MER(b) |
|
140,000 |
|
$ |
1,463,000 |
|
|
Citigroup Capital VIII, 6.95%, due 9/15/31 (TruPS) |
|
60,048 |
|
514,611 |
|
|
|
Cobank ACB, 7.00%, 144A, ($50 par value)(c),(d) |
|
120,000 |
|
3,253,320 |
|
|
|
JPMorgan Chase Capital XXVI, 8.00%, due 5/15/48, Series Z(b) |
|
99,375 |
|
1,999,425 |
|
|
|
Wachovia Capital Trust X, 7.85%, due 12/1/67(b) |
|
68,425 |
|
1,163,225 |
|
|
|
|
|
|
|
9,486,705 |
|
|
|
BANK—FOREIGN 9.0% |
|
|
|
|
|
|
|
Barclays Bank PLC, 8.125%(b) |
|
490,550 |
|
6,534,126 |
|
|
|
Deutsche Bank Contingent Capital Trust III, 7.60%(b) |
|
235,000 |
|
3,052,650 |
|
|
|
HSBC Holdings PLC, 8.125%(b) |
|
170,000 |
|
3,401,700 |
|
|
|
Royal Bank of Scotland Group PLC, 7.25%, Series T |
|
13,806 |
|
86,288 |
|
|
|
Santander Finance Preferred, 4.00%, Series 6 (FRN)(b) |
|
140,490 |
|
1,159,042 |
|
|
|
Santander Finance Preferred, 6.50%(b) |
|
113,010 |
|
1,581,010 |
|
|
|
Santander Finance Preferred, 6.80%(b) |
|
474,955 |
|
6,483,136 |
|
|
|
|
|
|
|
22,297,952 |
|
|
|
ELECTRIC—INTEGRATED 1.1% |
|
|
|
|
|
|
|
FPC Capital I, 7.10%, due 5/13/39, Series A (QUIPS)(b) |
|
121,150 |
|
2,654,396 |
|
|
|
|
|
|
|
|
|
|
|
ENERGY- INTEGRATED OIL & GAS 0.8% |
|
|
|
|
|
|
|
Nexen, 7.35%, due 11/1/43, Series B(b) |
|
116,745 |
|
1,932,130 |
|
|
|
|
|
|
|
|
|
|
|
FINANCE 2.0% |
|
|
|
|
|
|
|
INVESTMENT BANKER/BROKER 1.2% |
|
|
|
|
|
|
|
Bear Stearns Capital Trust III, 7.80%, 5/15/31(b) |
|
70,000 |
|
1,466,500 |
|
|
|
Morgan Stanley Capital Trust III, 6.25%(b) |
|
99,962 |
|
1,442,452 |
|
|
|
|
|
|
|
2,908,952 |
|
|
|
INVESTMENT BANKER/BROKER—FOREIGN 0.6% |
|
|
|
|
|
|
|
Credit Suisse Guernsey, 7.90%(b) |
|
90,000 |
|
1,531,800 |
|
|
|
|
|
|
|
|
|
|
|
MORTGAGE LOAN/BROKER 0.2% |
|
|
|
|
|
|
|
Countrywide Capital V, 7.00%, due 11/1/36 |
|
50,000 |
|
474,000 |
|
|
|
TOTAL FINANCE |
|
|
|
4,914,752 |
|
|
|
|
|
|
|
|
|
|
|
GAS—DISTRIBUTION 1.2% |
|
|
|
|
|
|
|
Southwest Gas Capital Trust II, 7.70%, due 9/15/43(b) |
|
147,140 |
|
3,053,155 |
|
|
3
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
INSURANCE 9.5% |
|
|
|
|
|
|
|
LIFE/HEALTH INSURANCE—FOREIGN 0.5% |
|
|
|
|
|
|
|
Prudential PLC, 6.50%, Series A(b) |
|
100,000 |
|
$ |
1,231,000 |
|
|
|
|
|
|
|
|
|
|
MULTI-LINE 0.5% |
|
|
|
|
|
|
|
MetLife, 6.50%, Series B(b) |
|
90,000 |
|
1,320,300 |
|
|
|
|
|
|
|
|
|
|
|
MULTI-LINE—FOREIGN 4.2% |
|
|
|
|
|
|
|
Allianz SE, 8.375%(b) |
|
400,000 |
|
6,740,000 |
|
|
|
ING Groep N.V., 7.375%(b) |
|
328,300 |
|
3,063,039 |
|
|
|
ING Groep N.V., 8.50%(b) |
|
61,353 |
|
668,748 |
|
|
|
|
|
|
|
10,471,787 |
|
|
|
PROPERTY CASUALTY 0.4% |
|
|
|
|
|
|
|
Berkley W R Capital Trust II, 6.75%, due 7/26/45(b) |
|
54,964 |
|
1,058,057 |
|
|
|
|
|
|
|
|
|
|
|
PROPERTY CASUALTY—FOREIGN 2.0% |
|
|
|
|
|
|
|
Arch Capital Group Ltd., 7.875%, Series B(b) |
|
100,443 |
|
1,872,257 |
|
|
|
Arch Capital Group Ltd., 8.00%(b) |
|
160,000 |
|
3,176,000 |
|
|
|
|
|
|
|
5,048,257 |
|
|
|
REINSURANCE—FOREIGN 1.9% |
|
|
|
|
|
|
|
Aspen Insurance Holdings Ltd., 7.401%, Series A(b) |
|
160,000 |
|
2,148,800 |
|
|
|
Axis Capital Holdings Ltd., 7.50%, Series B ($100 par value) |
|
40,000 |
|
2,472,500 |
|
|
|
|
|
|
|
4,621,300 |
|
|
|
TOTAL INSURANCE |
|
|
|
23,750,701 |
|
|
|
|
|
|
|
|
|
|
|
MEDIA—DIVERSIFIED SERVICES 4.6% |
|
|
|
|
|
|
|
Comcast Corp., 6.625%, due 5/15/56(b) |
|
150,060 |
|
2,839,135 |
|
|
|
Comcast Corp., 7.00%, due 9/15/55, Series B(b) |
|
350,094 |
|
7,047,392 |
|
|
|
Viacom, 6.85%, due 12/5/55(b) |
|
87,013 |
|
1,490,533 |
|
|
|
|
|
|
|
11,377,060 |
|
|
|
REAL ESTATE 10.5% |
|
|
|
|
|
|
|
DIVERSIFIED 1.6% |
|
|
|
|
|
|
|
Duke Realty Corp., 6.95%, Series M(b) |
|
100,000 |
|
850,000 |
|
|
|
Duke Realty Corp., 7.25%, Series N(b) |
|
133,400 |
|
1,148,574 |
|
|
|
Duke Realty Corp., 8.375%, Series O(b) |
|
100,004 |
|
1,138,045 |
|
|
4
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
Vornado Realty Trust, 6.75%, Series H(b) |
|
56,100 |
|
$ |
802,230 |
|
|
|
|
|
|
3,938,849 |
|
|
|
HEALTH CARE 1.2% |
|
|
|
|
|
|
|
Omega Healthcare Investors, 8.375%, Series D(b) |
|
159,669 |
|
2,874,042 |
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIAL 0.3% |
|
|
|
|
|
|
|
First Industrial Realty Trust, 7.25%, Series J(b) |
|
109,560 |
|
794,310 |
|
|
|
|
|
|
|
|
|
|
|
OFFICE 0.5% |
|
|
|
|
|
|
|
BioMed Realty Trust, 7.375%, Series A |
|
55,000 |
|
590,150 |
|
|
|
SL Green Realty Corp., 7.625%, Series C(b) |
|
70,000 |
|
689,500 |
|
|
|
|
|
|
|
1,279,650 |
|
|
|
OFFICE/INDUSTRIAL 1.3% |
|
|
|
|
|
|
|
PS Business Parks, 7.00%, Series H(b) |
|
108,864 |
|
1,742,913 |
|
|
|
PS Business Parks, 7.95%, Series K(b) |
|
83,500 |
|
1,487,970 |
|
|
|
|
|
|
|
3,230,883 |
|
|
|
RESIDENTIAL- APARTMENT 0.9% |
|
|
|
|
|
|
|
Apartment Investment & Management Co., 8.00%, Series V(b) |
|
101,000 |
|
1,093,830 |
|
|
|
Apartment Investment & Management Co., 7.875%, Series Y(b) |
|
110,000 |
|
1,136,300 |
|
|
|
|
|
|
|
2,230,130 |
|
|
|
SELF STORAGE 1.3% |
|
|
|
|
|
|
|
Public Storage, 7.25%, Series I(b) |
|
70,007 |
|
1,365,137 |
|
|
|
Public Storage, 7.25%, Series K(b) |
|
100,035 |
|
1,923,673 |
|
|
|
|
|
|
|
3,288,810 |
|
|
|
SHOPPING CENTER 3.1% |
|
|
|
|
|
|
|
COMMUNITY CENTER 3.1% |
|
|
|
|
|
|
|
Developers Diversified Realty Corp., 7.50%, Series I |
|
57,720 |
|
297,835 |
|
|
|
Kimco Realty Corp., 7.75%, Series G(b) |
|
134,996 |
|
1,842,696 |
|
|
|
Regency Centers Corp., 7.25%, Series D(b) |
|
140,000 |
|
2,207,800 |
|
|
|
Saul Centers, 8.00%, Series A(b) |
|
60,000 |
|
1,320,000 |
|
|
|
Weingarten Realty Investors, 6.50%, Series F(b) |
|
191,165 |
|
2,139,136 |
|
|
|
|
|
|
|
7,807,467 |
|
|
5
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
REGIONAL MALL 0.0% |
|
|
|
|
|
|
|
CBL & Associates Properties, 7.75%, Series C |
|
3,100 |
|
$ |
19,685 |
|
|
TOTAL SHOPPING CENTER |
|
|
|
7,827,152 |
|
|
|
|
|
|
|
|
|
|
|
SPECIALTY 0.3% |
|
|
|
|
|
|
|
Digital Realty Trust, 7.875%, Series B(b) |
|
46,900 |
|
754,386 |
|
|
|
TOTAL REAL ESTATE |
|
|
|
26,218,212 |
|
|
|
|
|
|
|
|
|
|
|
TELECOMMUNICATION SERVICES 2.0% |
|
|
|
|
|
|
|
Telephone & Data Systems, 7.60%, due 12/1/41, Series A(b) |
|
217,505 |
|
3,808,513 |
|
|
|
United States Cellular Corp., 7.50%, due 6/15/34(b) |
|
72,400 |
|
1,288,720 |
|
|
|
|
|
|
|
5,097,233 |
|
|
|
UTILITIES 0.4% |
|
|
|
|
|
|
|
Xcel Energy, 7.60%(b) |
|
40,000 |
|
928,400 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED SECURITIES—$25 PAR VALUE |
|
|
|
111,710,696 |
|
|
|
|
|
|
|
|
|
|
|
PREFERRED SECURITIES—CAPITAL SECURITIES 48.4% |
|
|
|
|
|
|
|
BANK 16.1% |
|
|
|
|
|
|
|
AgFirst Farm Credit Bank, 6.585%, due 6/29/49 144A(d) |
|
3,000,000 |
|
1,801,572 |
|
|
|
AgFirst Farm Credit Bank, 7.30%, due 10/14/49, 144A(c),(d) |
|
18,000,000 |
|
9,192,060 |
|
|
|
Astoria Capital Trust I, 9.75%, due 11/1/29, Series B(c) |
|
10,000,000 |
|
9,109,460 |
|
|
|
Bank of America Corp., 8.00%, due 12/29/49(b) |
|
3,000,000 |
|
1,202,790 |
|
|
|
Bank of America Corp., 8.125%, due 12/29/49(b) |
|
1,500,000 |
|
617,010 |
|
|
|
CoBank ACB, 11.00%, Series C, 144A(d) |
|
100,000 |
|
4,570,550 |
|
|
|
JPMorgan Chase, 7.90%, due 4/29/49(b) |
|
7,500,000 |
|
4,829,633 |
|
|
|
PNC Preferred Funding Trust I, 8.70%, due 12/31/49, 144A(d) |
|
4,000,000 |
|
1,802,372 |
|
|
|
Regions Financing Trust II, 6.625%, due 5/15/47(b) |
|
3,000,000 |
|
1,088,226 |
|
|
|
Sovereign Capital Trust VI, 7.908%, due 6/13/36(b) |
|
4,250,000 |
|
2,814,524 |
|
|
|
Webster Capital Trust IV, 7.65%, due 6/15/37(b) |
|
2,750,000 |
|
1,142,427 |
|
|
|
Wells Fargo & Co, 7.98%, due 2/28/49(b) |
|
4,000,000 |
|
1,882,260 |
|
|
|
|
|
|
|
40,052,884 |
|
|
|
BANK—FOREIGN 6.9% |
|
|
|
|
|
|
|
Barclays Bank PLC, 7.434%, due 9/29/49, 144A(d) |
|
5,430,000 |
|
2,258,446 |
|
|
|
BNP Paribas, 7.195%, due 12/31/49, 144A(d) |
|
6,000,000 |
|
3,074,100 |
|
|
6
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
HSBC Capital Funding LP, 10.176%, due 12/29/49, 144A(d) |
|
12,430,000 |
|
$ |
9,153,638 |
|
|
Standard Chartered PLC, 7.014%, due 12/30/49, 144A(d) |
|
5,500,000 |
|
2,561,840 |
|
|
|
|
|
|
|
17,048,024 |
|
|
|
ELECTRIC—INTEGRATED 2.9% |
|
|
|
|
|
|
|
Dominion Resources Capital Trust I, 7.83%, due 12/1/27(b) |
|
2,464,000 |
|
2,014,460 |
|
|
|
DPL Capital Trust II, 8.125%, due 9/1/31 |
|
3,000,000 |
|
2,955,642 |
|
|
|
FPL Group Capital, 7.30%, due 9/1/67, Series D(b) |
|
3,000,000 |
|
2,238,201 |
|
|
|
|
|
|
|
7,208,303 |
|
|
|
FINANCE 4.4% |
|
|
|
|
|
|
|
CREDIT CARD 0.5% |
|
|
|
|
|
|
|
Capital One Capital III, 7.686%, due 8/15/36(b) |
|
4,000,000 |
|
1,365,104 |
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES 1.8% |
|
|
|
|
|
|
|
ZFS Finance USA Trust II, 6.45%, due 12/15/65, 144A(d) |
|
10,500,000 |
|
4,542,248 |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT BANKER/BROKER 1.9% |
|
|
|
|
|
|
|
Schwab Capital Trust I, 7.50%, due 11/15/37 |
|
7,500,000 |
|
4,737,307 |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT MANAGEMENT 0.2% |
|
|
|
|
|
|
|
Aberdeen Asset Management, 7.90%, due 12/31/49 |
|
800,000 |
|
412,000 |
|
|
|
TOTAL FINANCE |
|
|
|
11,056,659 |
|
|
|
FOOD 3.5% |
|
|
|
|
|
|
|
Dairy Farmers of America, 7.875%, 144A(c),(d) |
|
75,000 |
|
4,293,750 |
|
|
|
HJ Heinz Finance Co, 8.00%, due 7/15/13, 144A(d) |
|
50 |
|
4,325,000 |
|
|
|
|
|
|
|
8,618,750 |
|
|
|
GAS UTILITIES 1.5% |
|
|
|
|
|
|
|
Southern Union Co., 7.20%, due 11/1/66(b) |
|
7,500,000 |
|
3,787,500 |
|
|
|
|
|
|
|
|
|
|
|
INSURANCE 6.5% |
|
|
|
|
|
|
|
LIFE/HEALTH INSURANCE 1.0% |
|
|
|
|
|
|
|
Great-West Life & Annuity Insurance Co., 7.153%, due 5/16/46, 144A(d) |
|
5,000,000 |
|
2,505,950 |
|
|
|
|
|
|
|
|
|
|
|
MULTI-LINE 2.9% |
|
|
|
|
|
|
|
AXA SA, 6.463%, due 12/31/49, 144A(d) |
|
4,000,000 |
|
1,423,280 |
|
|
7
|
|
|
Number |
|
|
|
|
|
|
|
of Shares |
|
Value |
|
|
|
AXA SA, 6.379%, due 12/14/49, 144A(d) |
|
2,000,000 |
|
$ |
732,860 |
|
|
Catlin Insurance Co., 7.249%, due 12/1/49, 144A(d) |
|
4,000,000 |
|
1,085,428 |
|
|
|
Old Mutual Capital Funding, 8.00%, due 5/29/49, (Eurobond) |
|
2,000,000 |
|
740,000 |
|
|
|
USF&G Capital, 8.312%, due 7/1/46, 144A(d) |
|
3,845,000 |
|
3,182,241 |
|
|
|
|
|
|
|
7,163,809 |
|
|
|
PROPERTY CASUALTY 2.6% |
|
|
|
|
|
|
|
Liberty Mutual Group, 7.00%, due 3/15/37, 144A(c),(d) |
|
8,000,000 |
|
2,886,640 |
|
|
|
Liberty Mutual Group, 7.80%, due 3/15/37, 144A(c),(d) |
|
9,500,000 |
|
3,622,293 |
|
|
|
|
|
|
|
6,508,933 |
|
|
|
TOTAL INSURANCE |
|
|
|
16,178,692 |
|
|
|
|
|
|
|
|
|
|
|
PIPELINES 3.3% |
|
|
|
|
|
|
|
Enterprise Products Operating LP, 8.05%, due 10/1/37(b) |
|
6,000,000 |
|
3,183,894 |
|
|
|
Enterprise Products Operating LP, 8.375%, due 8/1/66(b) |
|
7,500,000 |
|
5,031,030 |
|
|
|
|
|
|
|
8,214,924 |
|
|
|
TELECOMMUNICATION SERVICES 3.3% |
|
|
|
|
|
|
|
Centaur Funding Corp., 9.08%, due 4/21/20 144A(c),(d) |
|
12,954 |
|
8,161,020 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES |
|
|
|
120,326,756 |
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
CORPORATE BONDS 7.7% |
|
|
|
|
|
|
|
BANK 0.9% |
|
|
|
|
|
|
|
CoBank ACB, 7.875%, due 4/16/18, 144A(d) |
|
$ |
2,250,000 |
|
2,199,402 |
|
|
BANK—FOREIGN 1.1% |
|
|
|
|
|
|
|
Barclays Bank PLC, 7.70%, due 4/25/49, 144A(d) |
|
4,250,000 |
|
1,869,996 |
|
|
|
Natixis, 10.00%, due 4/29/49, 144A(d) |
|
3,000,000 |
|
901,554 |
|
|
|
|
|
|
|
2,771,550 |
|
|
|
INSURANCE 4.7% |
|
|
|
|
|
|
|
MULTI-LINE 1.1% |
|
|
|
|
|
|
|
MetLife Capital Trust X, 9.25%, due 4/8/38, 144A(d) |
|
5,000,000 |
|
2,804,285 |
|
|
8
|
|
|
Principal |
|
|
|
||
|
|
|
Amount |
|
Value |
|
||
|
MULTI-LINE—FOREIGN 1.4% |
|
|
|
|
|
||
|
QBE Insurance Group Ltd., 9.75%, due 3/14/14, 144A(d) |
|
$ |
3,500,000 |
|
$ |
3,501,911 |
|
|
|
|
|
|
|
|
|
|
|
PROPERTY CASUALTY 2.2% |
|
|
|
|
|
||
|
ACE Capital Trust II, 9.70%, due 4/1/30(b) |
|
3,910,000 |
|
3,038,696 |
|
||
|
Liberty Mutual Group, 10.75%, due 6/15/58, 144A(d) |
|
5,000,000 |
|
2,452,825 |
|
||
|
|
|
|
|
5,491,521 |
|
||
|
TOTAL INSURANCE |
|
|
|
11,797,717 |
|
||
|
|
|
|
|
|
|
||
|
REAL ESTATE—SHOPPING CENTER—REGIONAL MALL 1.0% |
|
|
|
|
|
||
|
Simon Property Group LP, 10.35%, due 4/1/19(b) |
|
2,500,000 |
|
2,433,392 |
|
||
|
|
|
|
|
|
|
||
|
TOTAL CORPORATE BONDS |
|
|
|
19,202,061 |
|
||
|
|
|
Number |
|
|
|
||
|
|
|
of Shares |
|
|
|
||
|
SHORT-TERM INVESTMENTS 6.7% |
|
|
|
|
|
||
|
MONEY MARKET FUNDS |
|
|
|
|
|
||
|
Dreyfus Treasury Cash Management Fund, 0.09%(e) |
|
2,700,570 |
|
2,700,570 |
|
||
|
Federated U.S. Treasury Cash Reserves Fund, 0.01%(e) |
|
13,867,454 |
|
13,867,454 |
|
||
|
|
|
|
|
|
|
||
|
TOTAL SHORT-TERM INVESTMENTS |
|
|
|
16,568,024 |
|
||
|
|
|
|
|
|
|
||
|
TOTAL INVESTMENTS (Identified cost—$693,688,968) |
170.0 |
% |
|
|
422,960,929 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES IN EXCESS OF OTHER ASSETS |
(5.7 |
)% |
|
|
(14,118,508 |
) |
|
|
|
|
|
|
|
|
|
|
|
LIQUIDATION VALUE OF PREFERRED SHARES |
(64.3 |
)% |
|
|
(160,000,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS APPLICABLE TO COMMON SHARES |
100.0 |
% |
|
|
$ |
248,842,421 |
|
9
Glossary of Portfolio Abbreviations
|
FRN |
|
Floating Rate Note |
|
QUIPS |
|
Quarterly Income Preferred Securities |
|
REIT |
|
Real Estate Investment Trust |
|
TruPS |
|
Trust Preferred Securities |
Note: Percentages indicated are based on the net assets applicable to common shares of the Fund.
(a) A portion of the security is segregated as collateral for interest rate swap transactions: $14,134,650 has been segregated as collateral.
(b) A portion or all of the security is pledged in connection with the revolving credit agreement: $115,000,273 has been pledged as collateral.
(c) Illiquid security. Aggregate holdings equal 16.3% of net assets applicable to common shares of the Fund.
(d) Resale is restricted to qualified institutional investors. Aggregate holdings equal 35.4% of net assets applicable to common shares of the Fund.
(e) Rate quoted represents the seven day yield of the fund.
10
Interest rate swaps outstanding at March 31, 2009 are as follows:
|
|
|
|
|
Fixed |
|
Floating Rate(a) |
|
|
|
|
|
||
|
|
|
Notional |
|
Rate |
|
(reset monthly) |
|
Termination |
|
Unrealized |
|
||
|
Counterparty |
|
Amount |
|
Payable |
|
Receivable |
|
Date |
|
Depreciation |
|
||
|
Merrill Lynch Derivative Products Ag(b) |
|
$ |
45,000,000 |
|
3.510 |
% |
0.523 |
% |
December 22, 2012 |
|
$ |
(3,075,872 |
) |
|
Royal Bank of Canada(b) |
|
$ |
60,000,000 |
|
3.653 |
% |
0.556 |
% |
July 17, 2013 |
|
(4,650,406 |
) |
|
|
Royal Bank of Canada(b) |
|
$ |
70,000,000 |
|
3.615 |
% |
0.523 |
% |
March 29, 2014 |
|
(5,397,739 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(13,124,017 |
) |
|
(a) Based on LIBOR (London Interbank Offered Rate). Represents rates in effect at March 31, 2009.
(b) Fair valued security. This security has been fair 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 holdings equal (5.3)% of net assets applicable to common shares of the Fund.
Limited Access
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.
Securities not listed on the New York Stock Exchange but listed on other domestic or foreign securities exchanges or admitted to trading on the National Association of Securities Dealers Automated Quotations, Inc. (Nasdaq) national market system 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.
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, but excluding securities admitted to trading on the Nasdaq National List, are valued at the official closing prices as reported by Nasdaq, the Pink Sheets, or such other comparable 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. Where securities are traded on more than one exchange and also over-the-counter, the securities will generally be valued using the quotations the Board of Directors believes most closely reflect the value of such securities. Interest rate swaps are valued utilizing quotes received from an outside pricing service.
Portfolio securities primarily traded on foreign markets are generally valued at the closing values of such securities on their respective exchanges or if after the close of the foreign markets, 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.
Securities for which market prices are unavailable, or securities for which the investment manager determines that bid and/or asked price 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 recent transactions in comparable securities, information relating to the specific security and developments in the markets.
The Fund’s use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing
involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.
Short-term debt securities, which have a maturity date of 60 days or less, are valued at amortized cost, which approximates value.
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, 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. FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs 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, prepayment speeds, 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, 2009 in valuing the Fund’s investments carried at value:
|
|
|
|
|
Fair Value Measurements at March 31, 2009 Using |
|
||||||||
|
|
|
|
|
Quoted Prices In |
|
Significant |
|
Significant |
|
||||
|
|
|
|
|
Active Market for |
|
Other Observable |
|
Unobservable |
|
||||
|
|
|
|
|
Identical Assets |
|
Inputs |
|
Inputs |
|
||||
|
|
|
Total |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Investments in Securities |
|
$ |
422,960,929 |
|
$ |
261,138,268 |
|
$ |
146,114,571 |
|
$ |
15,708,090 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other Financial Instruments* |
|
(13,124,017 |
) |
— |
|
(13,124,017 |
) |
— |
|
||||
* 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:
|
|
|
Investments |
|
|
|
Balance as of December 31, 2008 |
|
$ |
24,596,427 |
|
|
|
|
|
|
|
|
Accrued premiums |
|
27 |
|
|
|
|
|
|
|
|
|
Realized loss |
|
(2,292,468 |
) |
|
|
|
|
|
|
|
|
Change in unrealized depreciation |
|
(503,985 |
) |
|
|
|
|
|
|
|
|
Net sales |
|
(2,590,000 |
) |
|
|
|
|
|
|
|
|
Transfers in/out of Level 3 |
|
(3,501,911 |
) |
|
|
Balance as of March 31, 2009 |
|
$ |
15,708,090 |
|
Note 2. Derivative Investments: The Fund has adopted the provisions of Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (FAS 161). This new standard requires funds to disclose information intended to enable financial statement users to understand how and why the fund uses derivative instruments, how derivative instruments are accounted for under FAS 133 and how derivative instruments affect the company’s financial position, results of operations, and cash flows. All changes to the disclosures required in this report have been made in accordance with FAS 161.
The following is a summary of the market valuations of the Fund’s derivative instruments:
|
Interest Rate Contracts |
|
$ |
(13,124,017 |
) |
Interest Rate Swaps: The Fund uses interest rate swaps in connection with the sale of preferred shares and 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 preferred shares and 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 preferred shares and 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 or paid to 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, 2009, the federal tax cost and net unrealized depreciation were as follows:
|
Gross Unrealized appreciation |
|
$ |
5,966,467 |
|
|
Gross Unrealized depreciation |
|
(276,694,506 |
) |
|
|
Net unrealized depreciation |
|
$ |
(270,728,039 |
) |
|
|
|
|
|
|
|
Cost for federal income tax purpose |
|
$ |
693,688,968 |
|
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 28, 2009 |
|
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 28, 2009 |
|
|
|