Company: RNP
Filing Date: 2025-09-05
Form Type: N-CSRS
Source: 0001193125-25-196906
Chunk: 3

Company: COHEN & STEERS REIT & PREFERRED & INCOME FUND INC
Filing Date: 2025-09-05
Form: N-CSRS
Chunk 3
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 the companies most directly impacted by tariffs and any potential slowdown in trade, had a slight decline. Bellwether industrial landlord Prologis reported solid earnings but decided not to raise its outlook, citing a delay in decision activity from prospective tenants and lower-than-usual leasing volume. Stock selection in industrial hindered performance, due in part to an overweight in cold storage operator Americold Realty Trust, which fell as the company cut its earnings outlook amid volume concerns.

Retail landlords had mixed returns. Shopping centers and regional malls declined as retail sales faltered in the second half of the period, with May retail sales coming in weaker than consensus expectations. Free-standing retail companies, which tend to be rate-sensitive due to having long leases, advanced amid the decline in bond yields. The Fund’s underweight in free standing detracted from performance, while an underweight in shopping centers contributed.

Data center REITs struggled, reflecting weakness in shares of Equinix, which issued a soft five-year revenue outlook relative to expectations. Still, the company noted strong data center fundamentals and an expanding potential customer base. Stock selection in the sector helped relative performance due to an underweight in Equinix.

Elsewhere of note in the Fund’s equity allocation, stock selection among specialty REITs hindered performance, due primarily to an overweight in Iron Mountain. The information and data storage company underperformed amid concerns that the U.S. government, under the new administration, may digitize some of its recordkeeping.

Preferred securities had a positive total return in the period against a mostly supportive interest-rate environment. Within the group, the banking sector performed well against the backdrop of positive industry fundamentals and strong balance sheets. Banks’ asset quality remained in good shape. Security selection in banking contributed to relative performance; top contributors included out-of-benchmark issues from European banks that had sizable gains.

As with banks, the insurance industry’s cash flows and asset quality remained healthy. However, issues in the sector modestly underperformed preferreds as a whole. The Fund’s security selection in insurance aided relative performance.

Factors that detracted from relative performance in the Fund’s preferred allocation included an overweight in telecommunication services. The sector fell in the period despite the decline in bond yields. An underweight in the finance sector hindered performance as well.

Impact of Leverage on Fund Performance

The Fund employs leverage as part of a yield-enhancement strategy. Leverage, which can increase total return in rising markets (just as it can have the opposite effect in declining markets), contributed to the Fund