RNP: Not Worth Chasing This 8.3% Yield

Cohen & Steers REIT & Preferred & Income Fund Inc. offers an 8.3% yield, but its distribution is largely fueled by return of capital and capital gains. RNP's leverage (~29% of assets) and upcoming debt refinancings at higher rates threaten net interest income and future distributions. Less than 3% of RNP's yield is supported by income generation; the rest is unsustainable, making the effective yield comparable to VNQ's 3.9%.