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 (RQI) has announced its April 2025 distribution details and sources. The Fund follows a managed distribution policy implemented in December 2012 to deliver long-term total returns through monthly distributions at a fixed rate per share.

Key financial highlights:

• April 2025 distribution: $0.0800 per share, entirely from net realized short-term capital gains
• Year-to-date distributions: $0.3200 per share, comprising 29.50% short-term and 70.50% long-term capital gains
• Year-to-date cumulative total return: 4.01% (as of March 31, 2025)
• Five-year average annual total return: 13.49%
• Current annualized distribution rate: 7.33%

The Fund's distributions may include capital gains, investment income, and/or return of capital. Final tax characteristics will be reported on Form 1099-DIV after the calendar year-end.

Positive

• Net Realized Short-Term Capital Gains of $0.08 per share (100% of current distribution)
• Strong 13.49% Average Annual Total Return over 5-year period
• Positive Year-to-date Total Return of 4.01%
• Healthy Current Annualized Distribution Rate of 7.33%
• 70.50% of year-to-date distributions come from Net Realized Long-Term Capital Gains

Negative

• Monthly distribution amounts may vary based on market conditions
• Return of capital distributions reduce shareholders' tax basis in Fund shares
• Final tax characteristics cannot be determined until year-end

Insights

Financial Analyst specializing in REIT investments

Cohen & Steers REIT fund distributes $0.08/share from capital gains, maintaining 7.33% distribution rate with strong 5-year performance.

Cohen & Steers Quality Income Realty Fund's April 2025 distribution reveals important aspects of the fund's income generation strategy. The $0.0800 per share distribution is sourced entirely (100%) from net realized short-term capital gains, while year-to-date distributions of $0.3200 per share have come from a combination of short-term (29.50%) and long-term (70.50%) capital gains.

The absence of return of capital in the distribution composition is significant for income investors. Unlike return of capital distributions that effectively return shareholders' initial investment and reduce their cost basis, these distributions represent actual realized gains from the fund's investment activities.

Performance metrics show a year-to-date cumulative total return of 4.01% through March 31, 2025, and a five-year average annual total return of 13.49%. The fund maintains a current annualized distribution rate of 7.33% based on NAV.

The fund's managed distribution policy, implemented in December 2012, creates a more predictable income stream for shareholders while allowing management flexibility to realize and distribute capital gains throughout the year rather than concentrating distributions in certain periods.

For tax-conscious investors, the distribution composition has important implications. While distributions from capital gains are taxable in the current year, they don't reduce the investor's cost basis as return of capital distributions would. The fund's ability to source distributions entirely from realized gains rather than return of capital may indicate the underlying portfolio is generating sufficient investment returns to support the distribution policy without eroding shareholder capital.

NEW YORK, April 28, 2025 /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 April 30, 2025 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	April 2025		YEAR-TO-DATE (YTD) April 30, 2025*
Source	Per Share Amount	% of Current Distribution	Per Share Amount	% of 2025 Distributions
Net Investment Income	$0.0000	0.00 %	$0.0000	0.00 %
Net Realized Short-Term Capital Gains	$0.0800	100.00 %	$0.0944	29.50 %
Net Realized Long-Term Capital Gains	$0.0000	0.00 %	$0.2256	70.50 %
Return of Capital (or other Capital Source)	$0.0000	0.00 %	$0.0000	0.00 %
Total Current Distribution	$0.0800	100.00 %	$0.3200	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 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 2025 (January 1, 2025 through March 31, 2025) 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 2025. In addition, the Fund's Average Annual Total Return for the five-year period ending March 31, 2025 is set forth below. Shareholders should note the relationship between the Average Annual Total Return with the Fund's Current Annualized Distribution Rate for 2025. 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, 2025 to March 31, 2025
Year-to-date Cumulative Total Return1	4.01 %
Cumulative Distribution Rate2	2.44 %
Five-year period ending March 31, 2025
Average Annual Total Return3	13.49 %
Current Annualized Distribution Rate4	7.33 %

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, 2025 through April 30, 2025) measured on the dollar value of distributions in the year-to-date period as a percentage of the Fund's NAV as of March 31, 2025.
3.	Average Annual Total Return represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ending March 31, 2025. 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 March 31, 2025.

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.

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SOURCE Cohen & Steers, Inc.

FAQ

What is the current distribution rate for Cohen & Steers Quality Income Realty Fund (RQI) in 2025?

The Fund's Current Annualized Distribution Rate is 7.33% of NAV as of March 31, 2025, with a monthly distribution of $0.0800 per share.

How has RQI Fund performed in the first quarter of 2025?

RQI Fund achieved a Year-to-date Cumulative Total Return of 4.01% from January 1, 2025 to March 31, 2025, with a Cumulative Distribution Rate of 2.44%.

What is RQI Fund's 5-year average annual return through March 2025?

The Fund's Average Annual Total Return for the five-year period ending March 31, 2025, is 13.49%, based on NAV performance.

How are RQI Fund's April 2025 distributions structured?

The April 2025 distribution of $0.0800 per share consists of 100% Net Realized Short-Term Capital Gains, with no return of capital or net investment income.

What percentage of RQI Fund's 2025 YTD distributions come from long-term capital gains?

70.50% of the Fund's year-to-date distributions in 2025 ($0.2256 per share) come from Net Realized Long-Term Capital Gains.