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Cohen & Steers REIT and Preferred Income Fund, Inc. (RNP)

Company Dividend Discount ModelIndustry: Asset Management - IncomeSector: Financial Services

Valuation Snapshot

Stable Growth$28.27 - $41.63$34.68
Multi-Stage$45.20 - $49.49$47.30
Blended Fair Value$40.99
Current Price$22.77
Upside80.02%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.43%2.06%1.261.292.101.181.181.181.181.181.191.18
YoY Growth---1.88%-38.75%78.23%-0.29%0.53%-0.47%-0.05%-0.26%0.74%14.21%
Dividend Yield--6.05%6.39%10.33%4.13%5.19%4.95%6.65%5.61%6.21%6.39%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)214.55
(-) Cash Dividends Paid (M)132.86
(=) Cash Retained (M)81.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)42.9126.8216.09
Cash Retained (M)81.7081.7081.70
(-) Cash Required (M)-42.91-26.82-16.09
(=) Excess Retained (M)38.7954.8865.61
(/) Shares Outstanding (M)59.7959.7959.79
(=) Excess Retained per Share0.650.921.10
LTM Dividend per Share2.222.222.22
(+) Excess Retained per Share0.650.921.10
(=) Adjusted Dividend2.873.143.32
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-0.98%0.02%1.02%
Fair Value$28.27$34.68$41.63
Upside / Downside24.15%52.31%82.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)214.55214.61214.66214.71214.76214.81221.25
Payout Ratio61.92%67.54%73.15%78.77%84.38%90.00%92.50%
Projected Dividends (M)132.86144.94157.03169.12181.22193.33204.66

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-0.98%0.02%1.02%
Year 1 PV (M)131.55132.87134.20
Year 2 PV (M)129.35131.97134.63
Year 3 PV (M)126.44130.31134.25
Year 4 PV (M)122.96128.01133.20
Year 5 PV (M)119.06125.19131.57
PV of Terminal Value (M)2,072.932,179.742,290.90
Equity Value (M)2,702.282,828.092,958.76
Shares Outstanding (M)59.7959.7959.79
Fair Value$45.20$47.30$49.49
Upside / Downside98.50%107.74%117.33%

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