NPORT-EX 2 NPORT_4X26_70427673_0921.htm HTML

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

SCHEDULE OF INVESTMENTS

September 30, 2021 (Unaudited)

 

                                                                       
                          Shares      Value  

COMMON STOCK

      109.0 %      

COMMUNICATIONS—TOWERS

      16.3 %      

American Tower Corp.(a),(b)

 

     822,441      $ 218,284,066  

Crown Castle International Corp.

 

     461,825        80,043,509  

SBA Communications Corp.

 

     139,779        46,206,744  
       

 

 

  
     344,534,319  
       

 

 

  

REAL ESTATE

      92.7 %      

DATA CENTERS

      10.5 %      

CyrusOne, Inc.(a),(b)

 

     944,425        73,107,939  

Digital Realty Trust, Inc.(a)

 

     368,814        53,275,183  

Equinix, Inc.(a),(b)

 

     120,301        95,053,429  
       

 

 

  
     221,436,551  
       

 

 

  

DIVERSIFIED—FOREIGN

      0.0 %      

BGP Holdings PLC (EUR) (Australia)(c),(d)

 

     3,927,678        0  
       

 

 

  

HEALTH CARE

      14.1 %      

Healthcare Trust of America, Inc., Class A

 

     1,197,410        35,515,181  

Healthpeak Properties, Inc.(a),(b),(e)

 

     2,829,578        94,734,271  

Ventas, Inc.(a),(b)

 

     1,492,381        82,394,355  

Welltower, Inc.(a)

 

     1,031,182        84,969,397  
       

 

 

  
     297,613,204  
       

 

 

  

HOTEL

      3.7 %      

DiamondRock Hospitality Co.(d)

 

     2,164,938        20,458,664  

Host Hotels & Resorts, Inc.(a),(b),(d)

 

     3,577,048        58,413,194  
       

 

 

  
     78,871,858  
       

 

 

  

INDUSTRIALS

      11.5 %      

Americold Realty Trust

 

     1,348,690        39,179,444  

BG LLH, LLC (Lineage Logistics)(f)

 

     142,519        10,724,555  

Duke Realty Corp.(a),(b)

 

     2,233,970        106,940,144  

Prologis, Inc.(a)

 

     693,075        86,932,397  
       

 

 

  
     243,776,540  
       

 

 

  

NET LEASE

      11.3 %      

NETSTREIT Corp.

 

     713,226        16,867,795  

Spirit Realty Capital, Inc.(a),(b)

 

     962,799        44,327,266  

VEREIT, Inc.(a),(b)

 

     1,945,115        87,977,551  

VICI Properties, Inc.(a),(b)

 

     3,156,385        89,672,898  
       

 

 

  
     238,845,510  
       

 

 

  

 

1

 

 

                                                                       
                          Shares      Value  

OFFICE

      1.5 %      

Cousins Properties, Inc.

 

     446,629      $ 16,654,795  

Kilroy Realty Corp.(a)

 

     239,348        15,847,231  
       

 

 

  
     32,502,026  
       

 

 

  

RESIDENTIAL

      17.5 %      

APARTMENT

      11.3 %      

Apartment Income REIT Corp.

 

     768,491        37,510,046  

Essex Property Trust, Inc.(a)

 

     269,694        86,231,959  

UDR, Inc.(a),(b)

 

     2,158,070        114,334,549  
       

 

 

  
     238,076,554  
       

 

 

  

MANUFACTURED HOME

      3.1 %      

Sun Communities, Inc.(a),(b)

 

     358,570        66,371,307  
       

 

 

  

SINGLE FAMILY

      3.1 %      

Invitation Homes, Inc.(a),(b)

 

     1,695,055        64,971,458  
       

 

 

  

TOTAL RESIDENTIAL

           369,419,319  
       

 

 

  

SELF STORAGE

      10.0 %      

Extra Space Storage, Inc.(a)

 

     500,041        84,001,888  

Public Storage(a),(b),(e)

 

     426,889        126,828,722  
       

 

 

  
     210,830,610  
       

 

 

  

SHOPPING CENTERS

      7.2 %      

COMMUNITY CENTER

      1.8 %      

Kimco Realty Corp.

        1,890,767        39,233,415  
       

 

 

  

REGIONAL MALL

      5.4 %      

Simon Property Group, Inc.(a)

 

     879,047        114,249,739  
       

 

 

  

TOTAL SHOPPING CENTERS

           153,483,154  
       

 

 

  

SPECIALTY

      1.7 %      

Lamar Advertising Co., Class A

        325,973        36,981,637  
       

 

 

  

TIMBER

      3.7 %      

Weyerhaeuser Co.(a),(b)

 

     2,221,309        79,011,961  
       

 

 

  

TOTAL REAL ESTATE

           1,962,772,370  
       

 

 

  

TOTAL COMMON STOCK
(Identified cost—$1,541,056,894)

           2,307,306,689  
       

 

 

  

PREFERRED SECURITIES—$25 PAR VALUE

      10.7 %      

BANKS

      1.1 %      

JPMorgan Chase & Co., 5.75%, Series DD(g)

 

     75,000        2,048,250  

JPMorgan Chase & Co., 4.75%, Series GG(g)

 

     172,000        4,494,360  

 

2

 

 

                                                                       
                          Shares      Value  

JPMorgan Chase & Co., 4.625%, Series LL(g)

 

     189,812      $ 5,011,037  

JPMorgan Chase & Co., 4.20%, Series MM(g)

 

     100,000        2,525,000  

Wells Fargo & Co., 4.70%, Series AA(g)

 

     88,000        2,312,640  

Wells Fargo & Co., 4.25%, Series DD(g)

 

     69,325        1,735,898  

Wells Fargo & Co., 4.75%, Series Z(g)

 

     208,044        5,448,672  
       

 

 

  
          23,575,857  
       

 

 

  

ELECTRIC

      0.2 %      

CMS Energy Corp., 5.875%, due 3/1/79

 

     140,000        3,781,400  
       

 

 

  

INTEGRATED TELECOMMUNICATIONS SERVICES

      0.1 %      

United States Cellular Corp., 5.50%, due 6/1/70

 

     132,706        3,536,615  
       

 

 

  

PIPELINES

      0.2 %      

Energy Transfer LP, 7.60% to 5/15/24, Series E(g),(h)

 

     147,000        3,727,920  
       

 

 

  

REAL ESTATE

      9.1 %      

DATA CENTERS

      1.1 %      

Digital Realty Trust, Inc., 5.85%, Series K(g)

 

     98,115        2,698,163  

Digital Realty Trust, Inc., 5.20%, Series L(g)

 

     100,000        2,720,000  

DigitalBridge Group, Inc., 7.15%, Series I(g)

 

     314,915        8,112,210  

DigitalBridge Group, Inc., 7.125%, Series J(g)

 

     236,273        6,180,902  

KKR Real Estate Finance Trust, Inc., 6.50%, Series A(g)

 

     150,000        3,906,000  
       

 

 

  
          23,617,275  
       

 

 

  

DIVERSIFIED

      1.6 %      

Armada Hoffler Properties, Inc., 6.75%, Series A(g)

 

     375,000        10,098,750  

EPR Properties, 9.00%, Series E (Convertible)(a),(g)

 

     128,829        4,756,367  

EPR Properties, 5.75%, Series G(g)

 

     177,002        4,587,892  

Lexington Realty Trust, 6.50%, Series C ($50 Par Value)(a),(g)

 

     79,704        5,171,992  

National Retail Properties, Inc., 5.20%, Series F(g)

 

     25,000        626,500  

Office Properties Income Trust, 6.375%, due 6/23/50

 

     25,000        696,500  

Urstadt Biddle Properties, Inc., 6.25%, Series H(g)

 

     157,556        4,115,363  

Urstadt Biddle Properties, Inc., 5.875%, Series K(g)

 

     159,900        4,197,375  
       

 

 

  
          34,250,739  
       

 

 

  

HOTEL

      1.5 %      

DiamondRock Hospitality Co., 8.25%(g)

 

     46,466        1,258,299  

Pebblebrook Hotel Trust, 6.30%, Series F(g)

 

     140,000        3,474,800  

Pebblebrook Hotel Trust, 6.375%, Series G(g)

 

     188,800        4,823,840  

Pebblebrook Hotel Trust, 5.70%, Series H(g)

 

     160,000        4,000,000  

RLJ Lodging Trust, 1.95%, Series A(g)

 

     154,846        4,506,019  

Summit Hotel Properties, Inc., 6.25%, Series E(g)

 

     226,000        5,882,780  

Summit Hotel Properties, Inc., 5.875%, Series F(g)

 

     140,000        3,658,424  

Sunstone Hotel Investors, Inc., 6.125%, Series H(g)

 

     114,000        2,948,040  
       

 

 

  
          30,552,202  
       

 

 

  

 

3

 

 

                                                                       
                          Shares      Value  

INDUSTRIALS

      1.0 %      

Monmouth Real Estate Investment Corp., 6.125%, Series C(a),(g)

 

     473,000      $ 11,929,060  

PS Business Parks, Inc., 5.20%, Series W(g)

 

     45,000        1,134,900  

PS Business Parks, Inc., 5.20%, Series Y(g)

 

     185,000        4,859,950  

PS Business Parks, Inc., 4.875%, Series Z(g)

 

     52,384        1,445,798  

Rexford Industrial Realty, Inc., 5.625%, Series C(g)

 

     30,000        790,500  
       

 

 

  
          20,160,208  
       

 

 

  

NET LEASE

      0.6 %      

Agree Realty Corp., 4.25%, Series A(g)

 

     118,173        2,970,869  

Spirit Realty Capital, Inc., 6.00%, Series A(a),(g)

 

     378,071        9,841,188  
       

 

 

  
          12,812,057  
       

 

 

  

OFFICE

      1.4 %      

Arbor Realty Trust, Inc., 6.375%, Series D(g)

 

     51,200        1,305,600  

Brookfield Property Partners LP, 5.75%, Series A(g)

 

     154,000        3,614,380  

Brookfield Property Partners LP, 6.375%, Series A2(g)

 

     126,056        3,181,653  

Brookfield Property Preferred LP, 6.25%, due 7/26/81

 

     150,000        3,669,000  

City Office REIT, Inc., 6.625%, Series A(g)

 

     61,000        1,548,180  

SL Green Realty Corp., 6.50%, Series I(a),(g)

 

     156,991        4,073,916  

TPG RE Finance Trust, Inc., 6.25%, Series C(g)

 

     65,000        1,573,000  

Vornado Realty Trust, 5.70%, Series K(g)

 

     146,024        3,653,521  

Vornado Realty Trust, 5.25%, Series N(g)

 

     150,000        4,035,000  

Vornado Realty Trust, 4.45%, Series O(g)

 

     137,000        3,353,760  
       

 

 

  
          30,008,010  
       

 

 

  

RESIDENTIAL

      0.6 %      

APARTMENT

      0.1 %      

Centerspace, 6.625%, Series C(g)

 

     98,959        2,555,121  
       

 

 

  

MANUFACTURED HOME

      0.3 %      

UMH Properties, Inc., 6.75%, Series C(g)

 

     152,845        3,970,913  

UMH Properties, Inc., 6.375%, Series D(g)

 

     65,000        1,714,700  
       

 

 

  
          5,685,613  
       

 

 

  

SINGLE FAMILY

      0.2 %      

American Homes 4 Rent, 6.25%, Series H(g)

 

     178,714        4,805,620  
       

 

 

  

TOTAL RESIDENTIAL

 

      13,046,354  
       

 

 

  

 

4

 

 

                                                                       
                          Shares      Value  

SELF STORAGE

      0.6 %      

National Storage Affiliates Trust, 6.00%, Series A(g)

 

     192,080      $ 5,034,417  

Public Storage, 4.625%, Series L(g)

 

     29,610        807,761  

Public Storage, 4.00%, Series P(g)

 

     266,328        6,802,017  
       

 

 

  
          12,644,195  
       

 

 

  

SHOPPING CENTERS—COMMUNITY CENTER

      0.7 %      

Kimco Realty Corp., 5.25%, Series M(g)

 

     181,358        4,753,393  

Saul Centers, Inc., 6.125%, Series D(g)

 

     101,300        2,658,112  

Saul Centers, Inc., 6.00%, Series E(g)

 

     111,000        2,938,170  

SITE Centers Corp., 6.375%, Series A(g)

 

     200,000        5,180,000  
       

 

 

  
          15,529,675  
       

 

 

  

TOTAL REAL ESTATE

           192,620,715  
       

 

 

  

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$210,675,878)

           227,242,507  
       

 

 

  
           Principal
Amount		         

PREFERRED SECURITIES—CAPITAL SECURITIES

      9.6 %      

BANKS

      2.9 %      

Bank of America Corp., 6.10% to 3/17/25, Series AA(g),(h)

 

   $ 4,000,000        4,463,300  

Bank of America Corp., 6.25% to 9/5/24, Series X(g),(h)

 

     6,000,000        6,603,750  

Citigroup, Inc., 4.00% to 12/10/25, Series W(g),(h)

 

     3,000,000        3,116,100  

Citigroup, Inc., 5.95% to 1/30/23(g),(h)

 

     2,140,000        2,232,288  

Citigroup, Inc., 5.95% to 5/15/25, Series P(g),(h)

 

     2,000,000        2,187,500  

Citigroup, Inc., 6.25% to 8/15/26, Series T(g),(h)

 

     2,140,000        2,482,849  

JPMorgan Chase & Co., 3.465% (3 Month US LIBOR + 3.32%),
Series V (FRN)(g),(i)

 

     738,000        740,786  

JPMorgan Chase & Co., 3.599% (3 Month US LIBOR + 3.47%),
Series I (FRN)(a),(g),(i)

 

     2,108,000        2,119,551  

JPMorgan Chase & Co., 3.65% to 6/1/26, Series KK(g),(h)

 

     2,920,000        2,938,250  

JPMorgan Chase & Co., 6.10% to 10/1/24, Series X(g),(h)

 

     4,660,000        5,067,400  

JPMorgan Chase & Co., 6.125% to 4/30/24, Series U(g),(h)

 

     3,850,000        4,162,813  

JPMorgan Chase & Co., 6.75% to 2/1/24, Series S(g),(h)

 

     6,500,000        7,137,812  

PNC Financial Services Group, Inc./The, 3.40% to 9/15/26, Series T(g),(h)

 

     5,000,000        5,000,000  

SVB Financial Group, 4.00% to 5/15/26, Series C(g),(h)

 

     2,630,000        2,699,038  

Wells Fargo & Co., 3.90% to 3/15/26, Series BB(g),(h)

 

     7,600,000        7,842,250  

Wells Fargo & Co., 5.875% to 6/15/25, Series U(g),(h)

 

     2,000,000        2,234,020  
       

 

 

  
          61,027,707  
       

 

 

  

 

5

 

 

                                                                       
                          Principal
Amount		      Value  

BANKS—FOREIGN

      2.7 %      

Banco Bilbao Vizcaya Argentaria SA, 6.50% to 3/5/25, Series 9 (Spain)(a),(g),(h),(j)

      $ 4,000,000      $ 4,360,000  

Banco Santander SA, 4.75% to 11/12/26 (Spain)(g),(h),(j)

 

     2,600,000        2,654,782  

Barclays PLC, 8.00% to 6/15/24 (United Kingdom)(g),(h),(j)

 

     3,000,000        3,390,015  

BNP Paribas SA, 6.625% to 3/25/24, 144A (France)(a),(g),(h),(j),(k)

 

     4,150,000        4,506,693  

Credit Agricole SA, 6.875% to 9/23/24, 144A (France)(g),(h),(j),(k)

 

     3,000,000        3,342,750  

Credit Agricole SA, 8.125% to 12/23/25, 144A (France)(g),(h),(j),(k)

 

     5,000,000        6,051,190  

Credit Suisse Group AG, 5.25% to 2/11/27, 144A (Switzerland)(g),(h),(j),(k)

 

     2,500,000        2,621,875  

Credit Suisse Group AG, 7.125% to 7/29/22 (Switzerland)(g),(h),(j),(l)

 

     3,000,000        3,117,720  

Credit Suisse Group AG, 7.50% to 7/17/23, 144A (Switzerland)(a),(g),(h),(j),(k)

 

     2,000,000        2,143,500  

Credit Suisse Group AG, 7.50% to 12/11/23, 144A (Switzerland)(a),(g),(h),(j),(k)

 

     2,891,000        3,165,055  

DNB Bank ASA, 6.50% to 3/26/22 (Norway)(g),(h),(j),(l)

 

     1,400,000        1,433,258  

ING Groep N.V., 6.50% to 4/16/25 (Netherlands)(a),(g),(h),(j)

 

     4,000,000        4,419,400  

Lloyds Banking Group PLC, 7.50% to 6/27/24 (United Kingdom)(a),(g),(h),(j)

 

     3,400,000        3,808,000  

Natwest Group PLC, 8.00% to 8/10/25 (United Kingdom)(g),(h),(j)

 

     3,000,000        3,547,695  

Royal Bank of Canada, 3.65% to 10/24/26, due 11/24/81 (Canada)(h)

 

     1,400,000        1,100,834  

Societe Generale SA, 7.875% to 12/18/23, 144A (France)(g),(h),(j),(k)

 

     3,600,000        3,976,164  

Stichting AK Rabobank Certificaten, 19.436% (Netherlands)(g),(l)

 

     1,478,350        2,467,053  

UBS Group AG, 7.00% to 1/31/24, 144A (Switzerland)(g),(h),(j),(k)

 

     1,600,000        1,746,648  
       

 

 

  
          57,852,632  
       

 

 

  

ELECTRIC

      0.0 %      

Southern Co./The, 3.75% to 6/15/26, due 9/15/51, Series 21-A(h)

 

     700,000        714,910  
       

 

 

  

ELECTRIC—FOREIGN

      0.2 %      

Electricite de France SA, 6.00% to 1/29/26, Series EMTN (France)(g),(h),(l)

 

     2,500,000        3,728,442  
       

 

 

  

 

6

 

 

                                                                       
                          Principal
Amount		      Value  

FINANCIAL—INVESTMENT BANKER/BROKER

      0.6 %      

American Express Co., 3.55% to 9/15/26(g),(h)

 

   $ 2,700,000      $ 2,755,282  

Charles Schwab Corp./The, 4.00% to 6/1/26, Series I(g),(h)

 

     6,750,000        7,053,750  

Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp., 4.75%, due 6/15/29, 144A(k)

 

     3,500,000        3,479,700  
       

 

 

  
          13,288,732  
       

 

 

  

INDUSTRIALS

      0.2 %      

General Electric Co., 3.446% (3 Month US LIBOR + 3.33%), Series D
(FRN)(a),(b),(g),(i)

 

     4,000,000        3,924,233  
       

 

 

  

INSURANCE

      0.4 %      

LIFE/HEALTH INSURANCE

      0.2 %      

MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A (TruPS)(a),(k)

 

     2,000,000        2,784,820  
       

 

 

  

PROPERTY CASUALTY—FOREIGN

      0.2 %      

QBE Insurance Group Ltd., 6.75% to 12/2/24, due 12/2/44 (Australia)(h),(l)

 

     4,052,000        4,601,350  
       

 

 

  

TOTAL INSURANCE

           7,386,170  
       

 

 

  

INTEGRATED TELECOMMUNICATIONS SERVICES

      0.3 %      

AT&T Inc., 2.875% to 3/2/25, Series B(g),(h)

 

     5,000,000        5,868,757  
       

 

 

  

INTEGRATED TELECOMMUNICATIONS SERVICES—FOREIGN

      0.4 %      

Vodafone Group PLC, 4.125% to 3/4/31, due 6/4/81 (United Kingdom)(h)

 

     5,710,000        5,786,429  

Vodafone Group PLC, 7.00% to 1/4/29, due 4/4/79 (United Kingdom)(a),(h)

 

     2,750,000        3,366,216  
       

 

 

  
          9,152,645  
       

 

 

  

PIPELINES

      0.2 %      

Energy Transfer LP, 6.50% to 11/15/26, Series H(g),(h)

 

     1,480,000        1,544,927  

Energy Transfer LP, 7.125% to 5/15/30, Series G(g),(h)

 

     1,535,000        1,613,669  
       

 

 

  
          3,158,596  
       

 

 

  

PIPELINES—FOREIGN

      0.1 %      

Enbridge, Inc., 6.00% to 1/15/27, due 1/15/77, Series 16-A (Canada)(a),(h)

 

     1,750,000        1,939,516  
       

 

 

  

REAL ESTATE

      1.3 %      

DIVERSIFIED

      0.3 %      

American Finance Trust, Inc./American Finance Operating Partner LP, 4.50%, due 9/30/28, 144A(k)

 

     4,000,000        4,000,000  

CTR Partnership LP/CareTrust Capital Corp., 3.875%, due 6/30/28, 144A(k)

 

     3,000,000        3,116,250  
       

 

 

  
          7,116,250  
       

 

 

  

 

7

 

 

                                                                       
                          Principal
Amount		      Value  

FINANCE

      0.3 %      

Broadstone Net Lease LLC, 2.60%, due 9/15/31

 

   $ 500,000      $ 494,449  

Invitation Homes Operating Partnership LP, 2.00%, due 8/15/31

 

     1,000,000        961,055  

Newmark Group, Inc., 6.125%, due 11/15/23

 

     2,000,000        2,166,500  

Piedmont Operating Partnership LP, 2.75%, due 4/1/32

 

     725,000        713,496  

Tanger Properties LP, 2.75%, due 9/1/31

 

     1,625,000        1,573,874  
       

 

 

  
          5,909,374  
       

 

 

  

HEALTH CARE

      0.0 %      

Sabra Health Care LP, 3.20%, due 12/1/31

 

     1,000,000        980,614  
       

 

 

  

HOTEL

      0.1 %      

RLJ Lodging Trust LP, 3.75%, due 7/1/26, 144A(k)

 

     800,000        805,000  

RLJ Lodging Trust LP, 4.00%, due 9/15/29, 144A(k)

 

     1,500,000        1,499,535  
       

 

 

  
          2,304,535  
       

 

 

  

INDUSTRIALS

      0.1 %      

Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co-Issuer, 4.875%, due 5/15/29, 144A(k)

 

     1,350,000        1,391,141  
       

 

 

  

OFFICE

      0.1 %      

Kilroy Realty LP, 2.65%, due 11/15/33

 

     625,000        617,123  

Office Properties Income Trust, 2.40%, due 2/1/27

 

     1,350,000        1,334,965  

Vornado Realty LP, 2.15%, due 6/1/26

 

     1,050,000        1,067,108  
       

 

 

  
          3,019,196  
       

 

 

  

RETAIL

      0.1 %      

Phillips Edison Grocery Center Operating Partnership I LP, 2.625%, due 11/15/31

 

     1,225,000        1,212,822  
       

 

 

  

RETAIL—FOREIGN

      0.3 %      

Scentre Group Trust 2, 5.125% to 6/24/30, due 9/24/80, 144A (Australia)(h),(k)

 

     6,000,000        6,455,700  
       

 

 

  

TOTAL REAL ESTATE

           28,389,632  
       

 

 

  

UTILITIES—ELECTRIC—FOREIGN

      0.3 %      

Enel SpA, 8.75% to 9/24/23, due 9/24/73, 144A (Italy)(a),(h),(k)

 

     5,250,000        5,991,562  
       

 

 

  

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES (Identified cost—$195,808,526)

           202,423,534  
       

 

 

  

 

8

 

 

                                                                       
                          Principal
Amount		      Value  

CORPORATE BONDS

      0.7 %      

COMMUNICATIONS—TOWERS

      0.1 %      

SBA Communications Corp., 3.875, due 2/15/27

 

   $ 2,525,000      $ 2,619,687  
       

 

 

  

REAL ESTATE

      0.6 %      

HEALTH CARE

      0.1 %      

Diversified Healthcare Trust, 9.75%, due 6/15/25

 

     2,000,000        2,190,000  
       

 

 

  

INDUSTRIALS

      0.3 %      

Retail Properties of America, Inc., 4.75%, due 9/15/30

 

     7,000,000        7,706,937  
       

 

 

  

NET LEASE

      0.1 %      

VICI Properties LP/VICI Note Co., Inc., 4.125%, due 8/15/30, 144A(k)

 

     1,366,000        1,449,668  
       

 

 

  

SHOPPING CENTERS—REGIONAL MALL

      0.1 %      

Brookfield Property REIT, Inc. / BPR Cumulus LLC / BPR Nimbus LLC / GGSI Sellco LLC, 5.75%, due 5/15/26, 144A(a),(k)

 

     1,800,000        1,872,000  
       

 

 

  

TOTAL REAL ESTATE

           13,218,605  
       

 

 

  

TOTAL CORPORATE BONDS
(Identified cost—$14,605,551)

           15,838,292  
       

 

 

  
           Shares         

SHORT-TERM INVESTMENTS

      1.2 %      

MONEY MARKET FUNDS

        

State Street Institutional Treasury Money Market Fund, Premier Class, 0.01%(m)

 

     25,410,371        25,410,371  
       

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$25,410,371)

           25,410,371  
       

 

 

  

TOTAL INVESTMENTS IN SECURITIES
(Identified cost—$1,987,557,220)

      131.2 %         2,778,221,393  

WRITTEN OPTION CONTRACTS

      (0.0 )         (679,095 ) 

LIABILITIES IN EXCESS OF OTHER ASSETS

      (31.2 )         (660,753,608 ) 
  

 

 

       

 

 

  

NET ASSETS (Equivalent to $15.77 per share based on 134,243,229 shares of common stock outstanding)

      100.0 %       $ 2,116,788,690  
  

 

 

       

 

 

  

 

9

 

 

Exchange-Traded Option Contracts

 

Written Options  
Description   Exercise
Price		     Expiration
Date		     Number of
Contracts		     Notional
Amount(n)		     Premiums
Received		     Value  

Call — Kilroy Realty Corp.

   $ 70.00       11/19/21       (296 )    $ (1,959,816 )    $ (43,967 )    $ (31,080 ) 

Put — Healthpeak Properties, Inc.

     34.00       10/15/21       (1,471 )      (4,924,908 )      (122,948 )      (139,745 ) 

Put — Ventas, Inc.

     52.50       10/15/21       (1,021 )      (5,636,941 )      (80,215 )      (38,798 ) 

Put — Welltower, Inc.

     82.50       10/15/21       (660 )      (5,438,400 )      (64,914 )      (125,400 ) 

Put — Simon Property Group, Inc.

     120.00       11/19/21       (390 )      (5,068,830 )      (85,539 )      (113,100 ) 

Put — Weyerhaeuser Co.

     34.00       11/19/21       (1,749 )      (6,221,193 )      (189,881 )      (174,900 ) 
        (5,587 )    $ (29,250,088 )    $ (587,464 )    $ (623,023 ) 
   
   

Over-the-Counter Option Contracts

 

Written Options  
Description   Counterparty   Exercise
Price		     Expiration
Date		   Number of
Contracts		     Notional
Amount(n)		     Premiums
Received		     Value  

Call — Host Hotels & Resorts, Inc.

  

Goldman Sachs
International

   $ 18.00     11/19/21     (2,158 )    $ (3,524,014 )    $ (84,745 )    $ (56,072 ) 
   
   

 

10

 

 

Centrally Cleared Interest Rate Swap Contracts

 

Notional
Amount		      Fixed
Rate
Payable		      Fixed
Payment
Frequency		    Floating Rate
Receivable
(resets monthly)		     Floating
Payment
Frequency		    Maturity Date    Value     Upfront
Receipts
(Payments)		     Unrealized
Appreciation
(Depreciation)		  
  $ 200,000,000        0.669%(o)      Monthly      1 month LIBOR(o )    Monthly    9/15/25    $ 1,197,084     $ —     $ 1,197,084  
  69,000,000        1.280%           Monthly      0.083%(p )    Monthly    2/3/26      (1,295,549 )      (10,868 )      (1,306,417 ) 
  115,000,000        0.761%           Monthly      0.083%(p )    Monthly    9/15/26      1,136,950       —       1,136,950  
  190,000,000        1.237%(o)      Monthly      1 month LIBOR(o )    Monthly    9/15/27      1,144,095       —       1,144,095  
     
                 $ 2,182,580     $ (10,868 )    $ 2,171,712  
     
     

Forward Foreign Currency Exchange Contracts

 

Counterparty   

Contracts

to Deliver

     

In Exchange
For

      Settlement
Date		    Unrealized
Appreciation
(Depreciation)		  

Brown Brothers Harriman

    CAD      1,409,590      USD      1,115,826      10/4/21    $ 2,941  

Brown Brothers Harriman

    EUR      2,592,495      USD      3,036,779      10/4/21      33,762  

Brown Brothers Harriman

    EUR      2,603,686      USD      3,053,077      10/4/21      37,098  

Brown Brothers Harriman

    EUR      2,101,580      USD      2,481,441      10/4/21      47,076  

Brown Brothers Harriman

    GBP      2,818,279      USD      3,898,396      10/4/21      101,046  

Brown Brothers Harriman

    USD      1,112,427      CAD      1,409,590      10/4/21      458  

Brown Brothers Harriman

    USD      8,450,223      EUR      7,297,761      10/4/21      3,138  

Brown Brothers Harriman

    USD      3,796,306      GBP      2,818,279      10/4/21      1,043  

Brown Brothers Harriman

    CAD      1,410,276      USD      1,112,833      11/2/21      (552 ) 

Brown Brothers Harriman

    EUR      7,262,679      USD      8,413,559      11/2/21      (3,733 ) 

Brown Brothers Harriman

    GBP      2,797,167      USD      3,767,728      11/2/21      (1,315 ) 
   
                  $         220,962  
   
   

Glossary of Portfolio Abbreviations

 

CAD    Canadian Dollar
EMTN    Euro Medium Term Note
EUR    Euro Currency
FRN    Floating Rate Note
GBP    Great British Pound
LIBOR    London Interbank Offered Rate
REIT    Real Estate Investment Trust
TruPS    Trust Preferred Securities
USD    United States Dollar

 

11

 

 

 

Note: Percentages indicated are based on the net assets of the Fund.

(a)

All or a portion of the security is pledged as collateral in connection with the Fund’s revolving credit agreement. $1,372,643,318 in aggregate has been pledged as collateral.

(b)

A portion of the security has been rehypothecated in connection with the Fund’s revolving credit agreement. $587,207,468 in aggregate has been rehypothecated.

(c)

Security value is determined based on significant unobservable inputs (Level 3).

(d)

Non-income producing security.

(e)

All or a portion of the security is pledged in connection with exchange-traded written option contracts. $29,421,927 in aggregate has been pledged as collateral.

(f)

Restricted security. Aggregate holdings equal 0.5% of the net assets of the Fund. This security was acquired on August 3, 2020, at a cost of $8,757,813. Security value is determined based on significant unobservable inputs (Level 3).

(g)

Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer.

(h)

Security converts to floating rate after the indicated fixed-rate coupon period.

(i)

Variable rate. Rate shown is in effect at September 30, 2021.

(j)

Contingent Capital security (CoCo). CoCos are debt or preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. Aggregate holdings amounted to $54,284,745 which represents 2.6% of the net assets of the Fund (1.9% of the managed assets of the Fund).

(k)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold to qualified institutional buyers. Aggregate holdings amounted to $60,399,251 which represents 2.9% of the net assets of the Fund, of which 0.0% are illiquid.

(l)

Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $15,347,823 which represents 0.7% of the net assets of the Fund, of which 0.0% are illiquid.

(m)

Rate quoted represents the annualized seven-day yield.

(n)

Represents the number of contracts multiplied by notional contract size multiplied by the underlying price.

(o)

Represents two forward-starting interest rate swap contracts with interest receipts and payments commencing on December 24, 2021 and December 24, 2022, respectively (effective dates).

(p)

Based on 1 month LIBOR. Represents rates in effect at September 30, 2021.

 

12

 

 

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

 

Note 1. Portfolio Valuation

Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price. Centrally cleared interest rate swaps are valued at the price determined by the relevant exchange or clearinghouse. Forward foreign currency exchange contracts are valued daily at the prevailing forward exchange rate. Exchange traded options are valued at their last sale price as of the close of options trading on applicable exchanges on the valuation date. In the absence of a last sale price on such day, options are valued at the average of the quoted bid and ask prices as of the close of business. Over-the-counter (OTC) options are valued based upon prices provided by a third-party pricing service or counterparty.

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges (including NASDAQ) are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.

Readily marketable securities traded in the OTC market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be OTC, are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.

Fixed-income securities are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at net asset value (NAV).

The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment manager, subject to the oversight of the Board of Directors. The investment manager has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

 

 

 

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

Securities for which market prices are unavailable, or securities for which the investment manager determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.

For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities would be categorized as Level 2 or 3 in the hierarchy, depending on the relative significance of the valuation inputs. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security’s underlying assets and liabilities.

The Fund’s use of fair value pricing may cause the NAV of Fund shares to differ from the NAV that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.

 

  •  

Level 1 — quoted prices in active markets for identical investments

  •  

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

  •  

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing investments may or may not be an indication of the risk associated with those investments. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.

 

 

 

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

The following is a summary of the inputs used as of September 30, 2021 in valuing the Fund’s investments carried at value:

 

                                                                                   
     Total     Quoted Prices in
Active Markets
for Identical
Investments
(Level 1)		     Other
Significant
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  

Common Stock:

         

Real Estate—Diversified—Foreign

    $ 0     $ —     $ —     $ 0 (a)

Real Estate—Industrials

      243,776,540       233,051,985       —       10,724,555 (b)

Other Industries

      2,063,530,149       2,063,530,149       —       —  

Preferred Securities—$25 Par Value

      227,242,507       227,242,507       —       —  

Preferred Securities—Capital Securities

      202,423,534       —       202,423,534       —  

Corporate Bonds

      15,838,292       —       15,838,292       —  

Short-Term Investments

      25,410,371       —       25,410,371       —  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities(c)

    $ 2,778,221,393     $ 2,523,824,641     $ 243,672,197     $ 10,724,555  
  

 

 

    

 

 

    

 

 

    

 

 

  

Forward Foreign Currency Exchange Contracts

    $ 226,562     $ —     $ 226,562     $ —  

Interest Rate Swap Contracts

      3,478,129       —       3,478,129       —  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Derivative Assets(c)

    $ 3,704,691     $ —     $ 3,704,691     $ —  
  

 

 

    

 

 

    

 

 

    

 

 

  

Written Option Contracts

    $ (679,095 )    $ (591,943 )    $ (87,152 )    $ —  

Forward Foreign Currency Exchange Contracts

      (5,600 )      —       (5,600 )      —  

Interest Rate Swap Contracts

      (1,306,417 )      —       (1,306,417 )      —  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Derivative Liabilities(c)

    $ (1,911,112 )    $ (591,943 )    $ (1,399,169 )    $ —  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

BGP Holdings PLC was acquired via a spinoff and has been fair valued at $0, by the Valuation Committee, pursuant to the Fund’s fair value procedures and classified as a Level 3 security.

(b)

Restricted security, where observable inputs are limited, has been fair valued by the Valuation Committee, pursuant to the Fund’s fair value procedures and classified as Level 3 security.

(c)

Portfolio holdings are disclosed individually on the Schedule of Investments.

The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

 

                                                       
     Common Stock—
Real Estate—
Industrials		     Written
Option
Contracts		  

Balance as of December 31, 2020

    $ 8,568,644     $ (23,200 ) 

Purchases

      162,795 (a)      —  

Realized gain (loss)

      —       468,789  

Change in unrealized appreciation (depreciation)

      1,993,116       (445,589 ) 
  

 

 

    

 

 

  

Balance as of September 30, 2021

    $ 10,724,555     $ —  
  

 

 

    

 

 

  

 

(a)

Represents additional shares acquired through dividend reinvestment.

The change in unrealized appreciation (depreciation) attributable to securities owned on September 30, 2021 which were valued using significant unobservable inputs (Level 3) amounted to $1,993,116.

 

 

 

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

The following table summarizes the quantitative inputs and assumptions used for investments categorized in Level 3 of the fair value hierarchy.

 

                                                                                                        
    Fair Value at
September 30,
2021		    

Valuation Technique

  

Unobservable Inputs

   Amount   Valuation Impact from
an Increase  in
Input(a)

Common Stock—
Real Estate—
Industrials

   $ 10,724,555    

Market

Comparable
Companies

   Enterprise Value/
EBITDA(b) Multiple Liquidity Discount		   21.0x

15%

   Increase

Decrease

 

(a)

Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may result in a materially higher or lower fair value measurement.

(b)

Earnings Before Interest, Taxes, Depreciation and Amortization.

Note 2. Derivative Investments

Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts to hedge the currency exposure associated with certain of its non-U.S. dollar denominated securities. A forward foreign currency exchange contract is a commitment between two parties to purchase or sell foreign currency at a set price on a future date. The market value of a forward foreign currency exchange contract fluctuates with changes in foreign currency exchange rates. These contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on forward foreign currency exchange contracts. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are included in net realized gain or loss on forward foreign currency exchange contracts.

Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Schedule of Investments. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the contract. Risks may also arise upon entering these contracts from the potential inability of the counterparties to meet the terms of their contracts. In connection with these contracts, securities may be identified as collateral in accordance with the terms of the respective contracts.

Option Contracts: The Fund may purchase and write exchange-listed and OTC put or call options on securities, stock indices and other financial instruments for hedging purposes, to enhance portfolio returns and/or reduce overall volatility.

When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When an option expires, the Fund realizes a gain on the option to the extent of the premium received. Premiums received from writing options which are exercised or closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium reduces the cost basis of the security purchased by the Fund. If a call option is exercised, the premium is added to the proceeds of the security sold to determine the realized gain or loss. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the underlying security. Other risks include the possibility of an illiquid options market or the inability of the counterparties to fulfill their obligations under the contracts.

 

 

 

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

Put and call options purchased are accounted for in the same manner as portfolio securities. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract.

Centrally Cleared Interest Rate Swap Contracts: The Fund uses interest rate swaps in connection with borrowing under its credit agreement. The interest rate swaps are intended to reduce interest rate risk by countering the effect that an increase in short-term interest rates could have on the performance of the Fund’s shares as a result of the floating rate structure of interest owed pursuant to the credit agreement. When entering into interest rate swaps, the Fund agrees to pay the other party to the interest rate swap (which is known as the counterparty) a fixed rate payment in exchange for the counterparty’s agreement to pay the Fund a variable rate payment that was intended to approximate the Fund’s variable rate payment obligation on the credit agreement, the accruals for which would begin at a specific date in the future (the effective date). The payment obligation is based on the notional amount of the swap. Depending on the state of interest rates in general, the use of interest rate swaps could enhance or harm the overall performance of the Fund. Swaps are marked-to-market daily and changes in the value are recorded as unrealized appreciation (depreciation).

Immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the CCP) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded as cash collateral pledged for interest rate swap contracts. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin on interest rate swap contracts. Any upfront payments paid or received upon entering into a swap agreement would be recorded as assets or liabilities, respectively, and amortized or accreted over the life of the swap and recorded as realized gain (loss). Payments received from or paid to the counterparty during the term of the swap agreement, or at termination, are recorded as realized gain (loss).

Swap agreements involve, to varying degrees, elements of market and counterparty risk, and exposure to loss in excess of the related amounts reflected on the Schedule of Investments. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates.

The following summarizes the volume of the Fund’s option contracts, interest rate swap contracts and forward foreign currency exchange contracts activity for the nine months ended September 30, 2021:

 

                                                              
     Written Option
Contracts(a)		      Interest Rate
Swap Contracts		      Forward
Foreign  Currency
Exchange Contracts		  

Average Notional Amount

    $         33,738,988      $         496,000,000      $ 5,026,953  

 

(a)

Notional amount is calculated using the number of contracts multiplied by notional contract size multiplied by the underlying price.