Cohen & Steers REIT and Utility Income Fund, Inc. Announces Filing of Registration Statement to Issue Additional Auction Market
November 16 2004 - 5:05PM
PR Newswire (US)
Cohen & Steers REIT and Utility Income Fund, Inc. Announces
Filing of Registration Statement to Issue Additional Auction Market
Preferred Shares NEW YORK, Nov. 16 /PRNewswire-FirstCall/ -- Cohen
& Steers REIT and Utility Income Fund, Inc. today filed a
registration statement on Form N-2 to register additional auction
market preferred shares. If issued, the additional series of
preferred shares would have the effect of increasing the fund's
targeted leverage from 33-1/3% to approximately 35% of the fund's
capital after issuance. The proposed offering also would take into
account the increase that has occurred in the value of the fund's
net assets since the offering of the fund's common stock in January
2004. The offering of the additional preferred shares would create
the opportunity to increase the net income available to common
shareholders as long as the rate of return, net of applicable fund
expenses, on the fund's portfolio investments exceeds the dividend
rate, as reset periodically, on the preferred shares and/or the
payment rate set by any interest rate swap or cap transaction the
fund enters into in connection with this proposed preferred share
offering. Whether the fund effects the proposed issuance in the
future will depend on market conditions at that time. The proposed
issuance of the additional preferred shares could increase the
likelihood of greater volatility of net asset value and market
price of the fund's common shares. It also could increase the
possibility that common share income will fluctuate or fall if the
dividend rate on the preferred shares rises. The fund is a
closed-end investment company with a primary investment objective
of high current income through investment in real estate
securities. Capital appreciation is a secondary investment
objective. The fund's common shares trade on the New York Stock
Exchange under the symbol "RTU." The fund is managed by Cohen &
Steers Capital Management, Inc., which is a wholly owned subsidiary
of Cohen & Steers, Inc., a publicly traded company whose common
stock is listed on the New York Stock Exchange under the symbol
"CNS." For more complete information about the fund, including
charges and expenses, please call 1-800-330-REIT. There are special
risks associated with an investment in the fund, which are similar
to the risks of investing directly in REITs and utilities. These
risks are described in the prospectus, which you should read
carefully before you invest or send money. Please note that a
Registration Statement relating to the additional series of
preferred shares has been filed with the Securities and Exchange
Commission but has not yet become effective. The information in
this document is not complete and may be changed. These securities
may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. This communication
shall not constitute an offer to sell or the solicitation of any
offer to buy nor shall there be any sale of these securities in any
State in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any state. DATASOURCE: Cohen & Steers REIT and Utility Income
Fund, Inc. CONTACT: Lawrence. B. Stoller, senior vice president and
general counsel, +1-212-832-3232, for Cohen & Steers REIT and
Utility Income Fund, Inc. Web site: http://www.cohenandsteers.com/
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