Company: RNP
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049819
Chunk: 3

Company: COHEN & STEERS REIT & PREFERRED & INCOME FUND INC
Filing Date: 2025-03-07
Form: N-CSR
Chunk 3
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 sizable gain, continuing to benefit from strong demand, driven by cloud migration and the early innings of an expected multi-year tailwind from artificial intelligence (AI). The Fund’s overweight and stock selection in data centers contributed to relative performance. In addition, the Fund’s overweight in specialty REIT Iron Mountain benefited performance with a large gain; the company has continued to expand into data center operations.

Health care landlords performed well, lifted by robust senior housing and medical office space fundamentals. The Fund’s overweight and stock selection in the sector aided performance, led by an overweight in Welltower; the company benefited from rising occupancy rates in its senior living facilities and the company’s ability to find attractive acquisition opportunities.

2

C OHEN& S TEERSREIT ANDP REFERRED ANDI NCOMEF UND, I NC.

Within residential, single-family homes for rent were flat, despite favorable supply and demand fundamentals, partly resulting from high mortgage rates and affordability challenges in the homes-for-sale market. The Fund’s stock selection in the sector detracted from performance. Apartments outperformed broader REITs amid better-than-expected fundamentals, particularly in coastal markets. An underweight allocation to apartment owners hindered relative performance.

Retail landlords had solid gains, aided by optimism about consumer spending. The Fund’s overweight in regional malls, consisting of an allocation to Simon Property Group, helped performance, although the effect was largely countered by the negative impact of an underweight in shopping centers.

Telecommunication REITs, a typically interest-rate sensitive sector, struggled amid a rise in bond yields. Industrial REITs also had a significant decline, amid an uncertain demand outlook following an extended period of strong growth during the pandemic. The Fund’s overweight in telecommunications detracted from performance while an underweight in industrial aided performance.

Preferred securities had a solid absolute return and meaningfully outperformed U.S. Treasuries and investment-grade corporate bonds. 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 positively to the Fund’s relative performance.

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 and underweight allocation in the insurance sector aided relative performance.

The utilities sector had a gain amid a positive growth outlook, partly supported by the expected long-term demand for power for artificial intelligence applications. The Fund’s security selection in utilities