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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$31.23 - $47.21$38.76
Multi-Stage$53.76 - $58.95$56.30
Blended Fair Value$47.53
Current Price$22.77
Upside108.75%
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 Rate8.13%8.13%8.13%
Growth Rate-0.98%0.02%1.02%
Fair Value$31.23$38.76$47.21
Upside / Downside37.15%70.22%107.33%

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 Rate8.13%8.13%8.13%
Growth Rate-0.98%0.02%1.02%
Year 1 PV (M)132.70134.05135.39
Year 2 PV (M)131.64134.31137.01
Year 3 PV (M)129.81133.78137.84
Year 4 PV (M)127.36132.58137.96
Year 5 PV (M)124.40130.81137.48
PV of Terminal Value (M)2,568.512,700.852,838.59
Equity Value (M)3,214.423,366.383,524.26
Shares Outstanding (M)59.7959.7959.79
Fair Value$53.76$56.30$58.95
Upside / Downside136.11%147.28%158.87%

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