Cohen & Steers Announces Transferable Rights Offering for Quality Income Realty Fund

NEW YORK — June 8, 2026 — Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI) announced Monday that its Board of Directors has approved the terms of a transferable rights offering, giving existing common stockholders the opportunity to subscribe for additional shares at a formula-based discount.

The offering is intended to raise incremental capital for real estate acquisition and portfolio expansion. Cohen & Steers Capital Management, Inc., the fund's advisor, stated that incremental investments in key sectors within listed and private real estate can potentially support the distribution rate and enhance portfolio performance for all common stockholders.

Offering Structure and Key Terms

Under the terms of the offer, holders of RQI common stock as of the June 18, 2026 record date will receive one transferable right for each share owned. Three rights are required to purchase one newly issued share of common stock at the subscription price. The fund will not issue fractional shares, meaning stockholders holding fewer than three rights will nonetheless be entitled to subscribe for one full share.

The subscription price will be determined upon the offer's expiration, currently expected at 5:00 p.m. Eastern Time on July 15, 2026. It will be calculated as the higher of 92.5% of the average market price on the expiration date and the four preceding trading days on the NYSE, or 90% of the average net asset value over the same window.

The rights are expected to begin trading on a "when issued" basis on the NYSE on June 17, 2026, under the ticker RQI RT, with the fund's common shares trading ex-rights beginning June 18, 2026. Normal settlement trading in the rights is expected to begin on or about June 22, 2026.

Record date stockholders who fully exercise all rights initially issued to them will also be permitted to subscribe for additional shares not claimed by other record date stockholders through an over-subscription privilege. Investors who acquire rights in the secondary market but were not record date stockholders are not entitled to participate in the over-subscription.

Advisor Bears All Offering Costs

A notable structural feature of the offering is that Cohen & Steers Capital Management, Inc., the fund's advisor, will bear all offering expenses — including sales commissions, solicitation fees, and dealer manager fees — rather than the fund or its stockholders.

The fund said a portion of the proceeds may be allocated to investments in private commercial real estate, but that allocation will typically not exceed 10% of the fund's managed assets. The remainder is expected to be deployed into listed real estate securities, consistent with the fund's primary investment mandate.

The fund also noted that the offering structure allows it to pursue new investment opportunities without requiring the sale of existing portfolio positions, which it said may reduce taxable events for common stockholders. The offering also creates potential for increased liquidity and trading volume of the fund's shares.

Cohen & Steers Cites Sector Themes and Cycle Positioning

Mathew Kirschner, Portfolio Manager, U.S. Real Estate at Cohen & Steers, said the firm views current conditions as favorable for incremental real estate exposure.

"We believe listed and private real estate are attractively valued compared with stocks and bonds, reflecting the idea that real estate has repriced and is in the early stages of a new cycle. Powerful themes — a retail renaissance, digital transformation, and aging populations — are converging with limited supply to create compelling investment opportunities across real estate. This rights offering provides investors with the potential to capitalize on these opportunities," Kirschner said.

Distribution Policy and Shareholder Considerations

Cohen & Steers said the fund expects to maintain its current distribution level following the offering. The fund has declared a monthly distribution of $0.090 per share of common stock payable on June 30, 2026, with a record date of June 9, 2026, and a monthly distribution of $0.090 per share payable on July 31, 2026, with a record date of July 6, 2026.

Shares issued as a result of the rights offering will not be record date shares for either the June 30 or July 31 distributions and will not be entitled to receive those payments.

The fund cautioned that the offering may result in an immediate dilution of net asset value per share for all existing common stockholders, including those who fully exercise their rights.

Subscription certificates and a copy of the prospectus supplement and accompanying prospectus are expected to be mailed to record date stockholders within the United States shortly following the record date. Stockholders holding shares through a broker, custodian, or trust company should contact that entity directly, as individual firms may have internal deadlines earlier than the July 15 expiration date.

Inquiries regarding the offering may be directed to the information agent, Georgeson LLC, at 888-812-7762.

About the Fund and Cohen & Steers

Cohen & Steers Quality Income Realty Fund is a diversified, closed-end management investment company registered under the Investment Company Act of 1940. Its primary investment objective is high current income through investment in real estate securities, including common stocks, preferred stocks, and other equity and debt securities issued by real estate companies, including real estate investment trusts and similar REIT-like entities. Capital appreciation is a secondary objective.

Cohen & Steers is a global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, and commodities. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo, and Singapore. Cohen & Steers Capital Management, Inc. is a wholly owned subsidiary of Cohen & Steers.

This article is based on a press release and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investors should read the fund's prospectus supplement and accompanying prospectus carefully before making any investment decisions.

Sources: Cohen & Steers Quality Income Realty Fund, Inc. Announces Terms of Transferable Rights Offering, PR Newswire, June 8, 2026.