RNP: Not Worth Chasing This 8.3% Yield

Roberts Berzins, CFA14.43K FollowersFollow5ShareSavePlay(8min)Comments(3)SummaryCohen & 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%.I remain skeptical of RNP due to structural headwinds and recommend considering IYRI for higher, more sustainable yield from REIT exposure. Muhammad Safuan/iStock via Getty Images In November 2025, I circulated a bearish article on Cohen & Steers REIT & Preferred & Income Fund Inc. (RNP) outlining why, in my view, the odds for RNP's upside remain limited due toThis article was written byRoberts Berzins, CFA14.43K FollowersFollowRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.