Cohen & Steers Quality Income Realty Fund, Inc. (RQI) Notification of Sources of Distribution Under Section 19(a)

Rhea-AI Summary

Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) has announced its distribution for August 2024, to be paid on August 30, 2024. The Fund follows a managed distribution policy aimed at delivering long-term total return through regular monthly distributions. For August 2024, the distribution is $0.0800 per share, with 93.37% coming from net realized long-term capital gains and 6.63% from net investment income.

The Fund's year-to-date cumulative total return from January 1 to July 31, 2024, is 6.94%, with a cumulative distribution rate of 4.81%. The Fund's five-year average annual total return ending July 31, 2024, is 6.76%, with a current annualized distribution rate of 7.21%. Shareholders are advised that the Fund may be distributing more than its income and capital gains, potentially including a return of capital.

Positive

• The Fund's year-to-date cumulative total return is 6.94%
• The current annualized distribution rate is 7.21%
• 93.37% of the August distribution comes from net realized long-term capital gains

Negative

• The Fund may be distributing more than its income and capital gains, potentially including a return of capital

Financial Analyst

This distribution announcement from Cohen & Steers Quality Income Realty Fund (RQI) provides valuable insights into the fund's performance and distribution strategy. The fund's managed distribution policy, implemented in 2012, aims to deliver long-term total returns through regular monthly distributions.

Key points to note:

• The current distribution of $0.08 per share comprises 93.37% from net realized long-term capital gains and 6.63% from net investment income.
• Year-to-date, the fund has distributed $0.64 per share, with 45.66% from long-term capital gains and 27.29% classified as return of capital.
• The fund's year-to-date total return is 6.94%, with a cumulative distribution rate of 4.81%.
• The five-year average annual total return stands at 6.76%, while the current annualized distribution rate is 7.21%.

These figures suggest the fund is maintaining a healthy distribution rate while achieving moderate growth. However, investors should be aware that a significant portion of distributions may represent return of capital, which could impact their tax situation and the fund's long-term sustainability.

REIT Specialist

As a REIT specialist, I find the Cohen & Steers Quality Income Realty Fund's distribution breakdown particularly interesting. The substantial portion of distributions coming from net realized long-term capital gains (93.37% for August and 45.66% year-to-date) suggests the fund has been successfully capitalizing on property value appreciation or profitable asset sales within its REIT portfolio.

However, the 27.29% year-to-date return of capital is noteworthy. While this can be a tax-efficient way to distribute funds, it may also indicate that the fund's income-generating capabilities are not fully covering the distribution. This could be due to challenges in the real estate market, such as lower occupancy rates or reduced rental income.

The fund's 6.94% year-to-date total return, while positive, may reflect the broader challenges faced by the REIT sector in 2024, including higher interest rates and economic uncertainties. Investors should monitor how these factors might affect the fund's ability to maintain its current distribution level in the long term.

NEW YORK, Aug. 28, 2024 /PRNewswire/ -- This press release provides shareholders of Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) (the "Fund") with information regarding the sources of the distribution to be paid on August 30, 2024 and cumulative distributions paid fiscal year-to-date.

In December 2012, the Fund implemented a managed distribution policy in accordance with exemptive relief issued by the Securities and Exchange Commission. The managed distribution policy seeks to deliver the Fund's long-term total return potential through regular monthly distributions declared at a fixed rate per common share. The policy gives the Fund greater flexibility to realize long-term capital gains throughout the year and to distribute those gains on a regular monthly basis to shareholders. The Board of Directors of the Fund may amend, terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund's shares. 

The Fund's monthly distributions may include long-term capital gains, short-term capital gains, net investment income and/or return of capital for federal income tax purposes. Return of capital includes distributions paid by the Fund in excess of its net investment income and net realized capital gains and such excess is distributed from the Fund's assets. A return of capital is not taxable; rather, it reduces a shareholder's tax basis in his or her shares of the Fund. In addition, distributions from the Fund's investments in real estate investment trusts (REITs) may later be characterized as capital gains and/or a return of capital, depending on the character of the dividends reported to the Fund after year end by REITs held by the Fund. The amount of monthly distributions may vary depending on a number of factors, including changes in portfolio and market conditions.

At the time of each monthly distribution, information will be posted to cohenandsteers.com and mailed to shareholders in a concurrent notice. However, this information may change at the end of the year because the final tax characteristics of the Fund's distributions cannot be determined with certainty until after the end of the calendar year. Final tax characteristics of all of the Fund's distributions will be provided on Form 1099-DIV, which is mailed after the close of the calendar year.

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year-to-date from the sources indicated. All amounts are expressed per common share.

DISTRIBUTION ESTIMATES	August 2024		YEAR-TO-DATE (YTD) August 30, 2024*
Source	Per Share Amount	% of Current Distribution	Per Share Amount	% of 2024 Distributions
Net Investment Income	$0.0053	6.63 %	$0.1731	27.05 %
Net Realized Short-Term Capital Gains	$0.0000	0.00 %	$0.0000	0.00 %
Net Realized Long-Term Capital Gains	$0.0747	93.37 %	$0.2922	45.66 %
Return of Capital (or other Capital Source)	$0.0000	0.00 %	$0.1747	27.29 %
Total Current Distribution	$0.0800	100.00 %	$0.6400	100.00 %

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's managed distribution policy. The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'. The amounts and sources of distributions reported in this Notice are only estimates, are likely to change over time, and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The amounts and sources of distributions year-to-date may be subject to additional adjustments.

*THE FUND WILL SEND YOU A FORM 1099-DIV FOR THE CALENDAR YEAR THAT WILL TELL YOU HOW TO REPORT THESE DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.

The Fund's Year-to-date Cumulative Total Return for fiscal year 2024 (January 1, 2024 through July 31, 2024) is set forth below. Shareholders should take note of the relationship between the Year-to-date Cumulative Total Return with the Fund's Cumulative Distribution Rate for 2024. In addition, the Fund's Average Annual Total Return for the five-year period ending July 31, 2024 is set forth below. Shareholders should note the relationship between the Average Annual Total Return with the Fund's Current Annualized Distribution Rate for 2024. The performance and distribution rate information disclosed in the table is based on the Fund's net asset value per share (NAV). The Fund's NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total liabilities, divided by the total number of shares outstanding. While NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's individual investment in the Fund. The value of a shareholder's investment in the Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market.

Fund Performance and Distribution Rate Information:

Year-to-date January 1, 2024 to July 31, 2024
Year-to-date Cumulative Total Return1	6.94 %
Cumulative Distribution Rate2	4.81 %
Five-year period ending July 31, 2024
Average Annual Total Return3	6.76 %
Current Annualized Distribution Rate4	7.21 %

1.	Year-to-date Cumulative Total Return is the percentage change in the Fund's NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions.
2.	Cumulative Distribution Rate for the Fund's current fiscal period (January 1, 2024 through August 30, 2024) measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund's NAV as of July 31, 2024.
3.	Average Annual Total Return represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ending July 31, 2024. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and assuming reinvestment of those distributions.
4.	The Current Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of July 31, 2024.

Investors should consider the investment objectives, risks, charges and expense of the Fund carefully before investing. You can obtain the Fund's most recent periodic reports, when available, and other regulatory filings by contacting your financial advisor or visiting cohenandsteers.com. These reports and other filings can be found on the Securities and Exchange Commission's EDGAR Database. You should read these reports and other filings carefully before investing.

Shareholders should not use the information provided here in preparing their tax returns. Shareholders will receive a Form 1099-DIV for the calendar year indicating how to report Fund distributions for federal income tax purposes.

Website: https://www.cohenandsteers.com
Symbol: (NYSE: CNS)

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

Forward-Looking Statements
This press release and other statements that Cohen & Steers may make may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect the company's current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative versions of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties.

Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

View original content:https://www.prnewswire.com/news-releases/cohen--steers-quality-income-realty-fund-inc-rqi-notification-of-sources-of-distribution-under-section-19a-302233435.html

SOURCE Cohen & Steers, Inc.

FAQ

What is the August 2024 distribution amount for Cohen & Steers Quality Income Realty Fund (RQI)?

The August 2024 distribution for Cohen & Steers Quality Income Realty Fund (RQI) is $0.0800 per share.

What is the year-to-date cumulative total return for RQI as of July 31, 2024?

The year-to-date cumulative total return for RQI from January 1 to July 31, 2024, is 6.94%.

What is the current annualized distribution rate for RQI as of July 31, 2024?

The current annualized distribution rate for RQI as of July 31, 2024, is 7.21%.

What percentage of RQI's August 2024 distribution comes from net realized long-term capital gains?

93.37% of RQI's August 2024 distribution comes from net realized long-term capital gains.