Cohen & Steers Quality Income Realty Fund Inc.

09/04/2026 | Press release | Distributed by Public on 09/04/2026 09:26

Semi-Annual Report by Investment Company (Form N-CSRS)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number:  811-10481        
Cohen & Steers Quality Income Realty Fund, Inc.
(Exact name of Registrant as specified in charter)
1166 Avenue of the Americas, 30th Floor, New York, NY 10036
(Address of principal executive offices) (Zip code)
Dana A. DeVivo
Cohen & Steers Capital Management, Inc.
1166 Avenue of the Americas, 30th Floor
New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code:  (212) 832-3232        
Date of fiscal year end:  December 31        
Date of reporting period:  June 30, 2026        
Item 1. Reports to Stockholders.
(a)
Cohen & Steers Quality Income Realty Fund, Inc.
To Our Shareholders:
We would like to share with you our report for the six months ended June 30, 2026. The total returns for the Cohen & Steers Quality Income Realty Fund, Inc. (the Fund) and its comparative benchmarks were:
Six Months Ended
June 30, 2026
Cohen & Steers Quality Income Realty Fund:
Net Asset Value Total Return(a)
15.51 %(b)
Market Price Total Return(a)
12.42 %
S&P 500 Index(c)
10.21 %
FTSE Nareit All Equity REITs Index(c)
14.90 %
Blended Benchmark-80% FTSE Nareit All Equity REITs Index/20% ICE BofA REIT Preferred Securities Index(c)
11.69 %
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance results reflect the effects of leverage, resulting from borrowings under a credit agreement. Current total returns of the Fund can be obtained by visiting our website at cohenandsteers.com. The Fund's returns assume the reinvestment of all dividends and distributions at prices obtained under the Fund's dividend reinvestment plan. Index performance does not reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index. Performance figures for periods shorter than one year are not annualized.
Managed Distribution Policy
The Fund, acting in accordance with an exemptive order received from the U.S. Securities and Exchange Commission (SEC) and with approval of its Board of Directors (the Board), adopted a managed distribution policy under which the Fund intends to include long-term capital gains, where applicable, as part of the regular monthly cash distributions to its shareholders (the Plan). The Plan gives the Fund greater flexibility to realize long-term capital gains and to distribute those gains on a regular monthly basis. In accordance with the Plan, the Fund currently distributes $0.09 per share on a monthly basis.
(a)
As a closed-end investment company, the price of the Fund's exchange-traded shares will be set by market forces and can deviate from the net asset value (NAV) per share of the Fund.
(b)
The returns shown are based on NAVs reported on June 30, 2026 and may differ from the returns shown in the Consolidated Financial Highlights, which reflect adjustments made to the NAVs in accordance with accounting principles generally accepted in the United States of America (GAAP).
(c)
The S&P 500 Index is an unmanaged index of 500 large-capitalization stocks that is frequently used as a general measure of U.S. stock market performance. The FTSE Nareit All Equity REITs Index contains all tax-qualified REITs with more than 50% of total assets in qualifying real estate assets other than mortgages secured by real property that also meet minimum size and liquidity criteria. The ICE BofA REIT Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market including all REITs.
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Cohen & Steers Quality Income Realty Fund, Inc.
The Fund may pay distributions in excess of the Fund's net investment company taxable income and net realized gains. This excess would be a return of capital distributed from the Fund's assets. Distributions of capital decrease the Fund's total assets and, therefore, could have the effect of increasing the Fund's expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.
Shareholders should not draw any conclusions about the Fund's investment performance from the amount of these distributions or from the terms of the Fund's Plan. The Fund's total return based on NAV is presented in the table above as well as in the Consolidated Financial Highlights table.
The Plan provides that the Board may amend or terminate the Plan at any time without prior notice to Fund shareholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the termination. The termination of the Plan could have the effect of creating a trading discount (if the Fund's stock is trading at or above NAV) or widening an existing trading discount.
Market Review
Real estate stocks had a positive total return in the six months ended June 30, 2026, despite a market that shifted repeatedly as investors navigated competing economic narratives and more hawkish central bank policy expectations.
The period began with a constructive economic backdrop. Prior to the late-February onset of the U.S.-Iran conflict, economic activity was generally supportive of markets, with easing inflation reinforcing expectations that major central banks would cut interest rates in 2026. This dynamic shifted following the conflict's disruption to seaborne energy flows. Markets were pressured as investors struggled to gauge the likely duration of the conflict, its economic implications and the scope of any resulting monetary policy response. By April, however, sentiment improved as markets began to price in the expectation of a relatively swift resolution of the conflict and as the global economy proved more resilient than feared. Nevertheless, persistent inflation tempered expectations for monetary easing.
Despite a shifting macro environment, commercial real estate fundamentals remained generally healthy, with steady demand and limited new supply in most property sectors.
Fund Performance
The Fund had a positive total return in the period and outperformed its blended benchmark on both a NAV and market price basis.
Most property sectors advanced. The health care sector had a significant gain, lifted by strong returns from companies with senior housing businesses, where fundamentals remained strong. Retail landlords were generally positive, with double-digit gains from both shopping center and regional mall REITs amid resilient consumer spending and limited new supply.
Data center owners had a sizable gain, rebounding from weakness in 2025. Industrial REITs advanced but underperformed, hindered by concerns about trade volumes amid escalating
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Cohen & Steers Quality Income Realty Fund, Inc.
geopolitical risk. Apartments also trailed, amid a supply overhang in certain markets. Telecommunications was the only sector to have a meaningful decline, hindered by mixed earnings outlooks, rising interest rates, and concerns around satellite competition.
In this environment, factors that helped the Fund's relative performance in the period included stock selection among specialty REITs, led by an overweight in information storage company Iron Mountain. The company, which continued to expand into data center operations, had a sizable gain. The Fund's non-investment in gaming companies also aided performance, as the sector had a slight decline. Stock selection in health care further benefited performance, due mainly to an overweight in senior housing specialist Welltower.
Factors that detracted from relative performance included an overweight in telecommunications and an underweight in regional malls. Stock selection in offices also hindered performance, due primarily to an overweight in BXP, which was restrained in part by concerns over the potential effects of AI on office-going jobs. An overweight in manufactured homes detracted as well. The sector trailed broader REITs, with U.S.-based company Sun Communities underperforming after it sold its U.K. assets for a price that disappointed market participants.
Within fixed income markets, real estate preferred securities had a slightly negative total return amid a rise in bond yields. The Fund's underweight allocation to REIT preferreds aided performance compared with the blended benchmark, given the stronger returns from REIT common shares. The Fund's out-of-benchmark allocation to corporate bonds (issued by a variety of companies) hindered performance, as these holdings had a relatively modest return.
Impact of Leverage on Fund Performance
The Fund employs leverage as part of a yield-enhancement strategy. Leverage, which can increase total return in rising markets (just as it can have the opposite effect in declining markets), significantly contributed to the Fund's performance for the six months ended June 30, 2026.
Impact of Derivatives on Fund Performance
In connection with its use of leverage, the Fund pays interest on its borrowings based on a floating rate under the terms of its credit agreement. To reduce the impact that an increase in interest rates could have on the performance of the Fund with respect to these borrowings, the Fund used interest rate swaps to exchange a portion of the floating rate for a fixed rate. The Fund's use of swaps did not have a material effect on the Fund's total return for the six months ended June 30, 2026.
The Fund engaged in the buying and selling of single stock options with the intention of enhancing total returns and reducing overall volatility. These contracts did not have a material effect on the Fund's total return for the six months ended June 30, 2026.
The Fund also used forward foreign currency exchange contracts to manage currency risk on certain Fund positions denominated in foreign currencies. The currency forwards did not have a material effect on the Fund's total return for the six months ended June 30, 2026.
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Cohen & Steers Quality Income Realty Fund, Inc.
Sincerely,
ELAINE ZAHARIS-NIKAS JASON YABLON
Portfolio Manager Portfolio Manager
MATHEW KIRSCHNER
Portfolio Manager
The views and opinions in the preceding commentary are subject to change without notice and are as of the date of the report. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment.
Visit Cohen & Steers online at cohenandsteers.com
For more information about the Cohen & Steers family of mutual funds, visit cohenandsteers.com. Here you will find fund net asset values, fund fact sheets and portfolio highlights, as well as educational resources and timely market updates.
Our website also provides comprehensive information about Cohen & Steers, including our most recent press releases, profiles of our senior investment professionals and their investment approach to each asset class. The Cohen & Steers family of mutual funds specializes in liquid real assets, including real estate securities, listed infrastructure and natural resource equities, as well as preferred securities and other income solutions.
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Cohen & Steers Quality Income Realty Fund, Inc.
Performance Review (Unaudited)
Average Annual Total Returns-For Periods Ended June 30, 2026
1 Year 5 Years 10 Years Since Inception(a)
Fund at NAV
13.87 % 4.75 % 7.25 % 9.32 %
Fund at Market Price
8.47 % 3.29 % 7.08 % 8.80 %
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return will vary and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance results reflect the effect of leverage from utilization of borrowings under a credit agreement. Current total returns of the Fund can be obtained by visiting our website at cohenandsteers.com. The Fund's returns assume the reinvestment of all dividends and distributions at prices obtained under the Fund's dividend reinvestment plan. The performance table does not reflect the deduction of brokerage commissions or taxes that a shareholder would pay on Fund distributions or the sale of Fund shares.
(a)
Commencement of investment operations was February 28, 2002.
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Cohen & Steers Quality Income Realty Fund, Inc.
Our Leverage Strategy
(Unaudited)
Our current leverage strategy utilizes borrowings up to the maximum permitted by the Investment Company Act of 1940 to provide additional capital for the Fund, with an objective of increasing net income available for shareholders. As of June 30, 2026, leverage represented 28% of the Fund's managed assets.
Through a combination of variable rate financing and interest rate swaps, the Fund has locked in interest rates on a significant portion of this additional capital through 2028 (where we effectively reduce our variable rate obligation and lock in our fixed rate obligation over various terms). Locking in a significant portion of our leveraging costs is designed to protect the dividend-paying ability of the Fund. The use of leverage increases the volatility of the Fund's NAV in both up and down markets. However, we believe that locking in portions of the Fund's leveraging costs for the various terms partially protects the Fund's expenses from an increase in short-term interest rates.
Leverage Facts(a)(b)
Leverage (as a % of managed assets)
28%
% Variable Rate Financing
29%
Variable Rate
4.4%
% Fixed Rate Financing(c)
71%
Weighted Average Rate on Fixed Financing
2.6%
Weighted Average Term on Fixed Financing
1.4 years
Weighted Average Cost of All Financing
3.1%
The Fund seeks to enhance its dividend yield through leverage. The use of leverage is a speculative technique and there are special risks and costs associated with leverage. The NAV of the Fund's shares may be reduced by the issuance and ongoing costs of leverage. So long as the Fund is able to invest in securities that produce an investment yield that is greater than the total cost of leverage, the leverage strategy will produce higher current net investment income for shareholders. On the other hand, to the extent that the total cost of leverage exceeds the incremental income gained from employing such leverage, shareholders would realize lower net investment income. In addition to the impact on net income, the use of leverage will have an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an up market, leverage will typically generate greater capital appreciation than if the Fund were not employing leverage. Conversely, in down markets, the use of leverage will generally result in greater capital depreciation than if the Fund had been unlevered. To the extent that the Fund is required or elects to reduce its leverage, the Fund may need to liquidate investments, including under adverse economic conditions which may result in capital losses potentially reducing returns to shareholders. There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.
(a)
Data as of June 30, 2026. Information is subject to change.
(b)
See Note 8 in Notes to Consolidated Financial Statements.
(c)
Represents fixed payer interest rate swap contracts on variable rate borrowing.
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Cohen & Steers Quality Income Realty Fund, Inc.
June 30, 2026
Top Ten Holdings(a)
(Unaudited)
Security Value % of
Managed
Assets
Welltower, Inc.
$ 323,095,880 12.9
Digital Realty Trust, Inc.
175,098,402 7.0
American Tower Corp.
130,777,813 5.2
Crown Castle, Inc.
104,542,387 4.2
Prologis, Inc.
99,472,776 4.0
Kimco Realty Corp.
80,106,406 3.2
Equinix, Inc.
77,303,642 3.1
Public Storage
72,693,728 2.9
Extra Space Storage, Inc.
71,083,521 2.8
Simon Property Group, Inc.
64,659,004 2.6
(a)
Top ten holdings (excluding short-term investments and derivative instruments) are determined on the basis of the value of individual securities held. The Fund may also hold positions in other securities issued by the companies listed above. See the Consolidated Schedule of Investments for additional details on such other positions.
Sector Breakdown(b)
(Based on Managed Assets)
(Unaudited)
(b)
Excludes derivative instruments.
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Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2026 (Unaudited)
Shares Value
COMMON STOCK-REAL ESTATE
109.7%
APARTMENT
4.2%
Essex Property Trust, Inc.(a)
149,186 $ 43,501,146
UDR, Inc.(a)(b)
788,317 31,469,614
74,970,760
DATA CENTERS
17.2%
Digital Realty Trust, Inc.
975,044 175,098,402
Equinix, Inc.
74,160 77,303,642
Iron Mountain, Inc.
455,097 57,483,302
309,885,346
FREE STANDING
5.9%
Agree Realty Corp.(a)
507,316 38,424,114
Essential Properties Realty Trust, Inc.(a)
1,095,507 32,700,884
NETSTREIT Corp.(a)(b)
1,091,504 23,063,479
Realty Income Corp.(a)
199,235 12,344,601
106,533,078
HEALTH CARE
23.0%
CareTrust REIT, Inc.(a)
573,360 23,135,076
Healthcare Realty Trust, Inc., Class A
1,691,899 34,125,603
Omega Healthcare Investors, Inc.
693,086 33,046,341
Welltower, Inc.(c)
1,423,518 323,095,880
413,402,900
HOTEL
2.3%
Host Hotels & Resorts, Inc.(a)
1,782,482 42,262,648
INDUSTRIALS
8.5%
EastGroup Properties, Inc.(a)
141,745 28,707,615
First Industrial Realty Trust, Inc.(a)
311,275 19,084,270
Lineage, Inc.(d)
142,519 6,163,947
Prologis, Inc.(a)
734,279 99,472,776
153,428,608
MANUFACTURED HOME
5.4%
Equity LifeStyle Properties, Inc.(a)
897,567 57,848,193
Sun Communities, Inc.(a)
322,168 38,631,165
96,479,358
See accompanying notes to consolidated financial statements.
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Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Shares Value
OFFICE
6.2%
BXP, Inc.(a)
836,784 $ 55,487,147
Highwoods Properties, Inc.(a)(b)
469,536 14,161,206
Hudson Pacific Properties, Inc.(c)(e)
254,084 3,859,536
Kilroy Realty Corp.(a)
1,018,891 38,177,846
111,685,735
REGIONAL MALL
3.6%
Simon Property Group, Inc.(a)(b)
289,108 64,659,004
SELF STORAGE
8.0%
Extra Space Storage, Inc.(a)(b)
489,219 71,083,521
Public Storage(a)(b)(c)
228,374 72,693,728
143,777,249
SHOPPING CENTER
4.4%
Kimco Realty Corp.(a)
3,160,016 80,106,406
SINGLE FAMILY HOMES
1.9%
Invitation Homes, Inc.(a)
1,115,021 33,684,785
SPECIALTY
2.8%
Blackstone Digital Infrastructure Trust, Inc.(e)
515,391 11,147,907
Lamar Advertising Co., Class A(a)
251,801 39,275,920
50,423,827
TELECOMMUNICATIONS
14.4%
American Tower Corp.(a)(b)
799,522 130,777,813
Crown Castle, Inc.(a)(b)(c)
1,380,462 104,542,387
SBA Communications Corp., Class A
139,623 24,637,875
259,958,075
TIMBERLAND
1.9%
Rayonier, Inc.(a)(b)
1,244,191 26,476,384
Weyerhaeuser Co.(a)
293,052 7,015,665
33,492,049
TOTAL COMMON STOCK
(Identified cost-$1,475,030,730)
1,974,749,828
See accompanying notes to consolidated financial statements.
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Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Shares Value
PREFERRED SECURITIES-EXCHANGE-TRADED
11.3%
BANKING
1.9%
Bank of America Corp., 4.25%, Series QQ(a)(f)
240,176 $ 4,111,813
Bank of America Corp., 5.375%, Series KK(a)(f)
100,000 2,147,000
Bank of America Corp., 6.00%, Series GG(a)(f)
224,608 5,617,446
Citigroup, Inc., 6.25%, Series II(a)(f)
125,000 3,145,000
JPMorgan Chase & Co., 4.55%, Series JJ(f)
133,503 2,460,460
JPMorgan Chase & Co., 5.75%, Series DD(a)(f)
75,000 1,800,750
Wells Fargo & Co., 4.375%, Series CC(a)(f)
139,519 2,392,751
Wells Fargo & Co., 4.70%, Series AA(a)(f)
225,800 4,143,430
Wells Fargo & Co., 4.75%, Series Z(f)
179,402 3,351,230
Wells Fargo & Co., 7.50%, Series L (Convertible)(a)(f)
4,000 4,628,000
33,797,880
DIVERSIFIED
1.1%
AH Realty Trust, Inc., 6.75%, Series A(a)(f)
378,000 8,176,140
DigitalBridge Group, Inc., 7.125%, Series J(a)(f)
398,512 6,041,442
DigitalBridge Group, Inc., 7.15%, Series I(a)(f)
404,770 6,043,216
20,260,798
FINANCE
0.1%
KKR & Co., Inc., 6.875%, due 6/1/65, Series T(a)
49,956 1,211,932
KKR Group Finance Co. IX LLC, 4.625%, due 4/1/61(a)
50,000 809,500
2,021,432
FREE STANDING
0.2%
Agree Realty Corp., 4.25%, Series A(a)(f)
156,565 2,663,171
Alpine Income Property Trust, Inc., 8.00%, Series A(a)(f)
50,000 1,253,500
3,916,671
HEALTH CARE
0.1%
Chiron Real Estate, Inc., 8.00%, Series B(a)(f)
94,000 2,457,160
HOTEL
1.0%
Pebblebrook Hotel Trust, 5.70%, Series H(a)(f)
234,000 4,104,360
Pebblebrook Hotel Trust, 6.375%, Series G(a)(f)
168,800 3,320,296
RLJ Lodging Trust, 1.95%, Series A (Convertible)(a)(f)
115,291 2,826,935
Summit Hotel Properties, Inc., 5.875%, Series F(a)(f)
122,693 2,018,300
Summit Hotel Properties, Inc., 6.25%, Series E(a)(f)
226,000 3,948,220
Sunstone Hotel Investors, Inc., 6.125%, Series H(a)(f)
96,680 2,102,790
18,320,901
See accompanying notes to consolidated financial statements.
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Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Shares Value
INDUSTRIALS
0.3%
LXP Industrial Trust, 6.50%, Series C(a)(f)
92,892 $ 4,227,515
Rexford Industrial Realty, Inc., 5.625%, Series C(a)(f)
35,000 737,800
4,965,315
INSURANCE
0.2%
Allstate Corp., 7.375%, Series J(a)(f)
81,248 2,114,073
American Financial Group, Inc., 5.875%, due 3/30/59(a)
26,958 544,821
Prudential Financial, Inc., 4.125%, due 9/1/60
103,132 1,692,396
4,351,290
MANUFACTURED HOME
0.1%
UMH Properties, Inc., 6.375%, Series D(a)(f)
115,000 2,420,750
OFFICE
0.2%
Hudson Pacific Properties, Inc., 4.75%, Series C(a)(f)
40,939 569,052
Vornado Realty Trust, 5.25%, Series N(a)(f)
158,040 2,797,308
3,366,360
SELF STORAGE
2.2%
National Storage Affiliates Trust, 6.00%, Series A(a)(f)
234,120 5,227,900
Public Storage, 4.00%, Series P(a)(f)
174,252 2,674,768
Public Storage, 4.00%, Series R(a)(f)
196,001 3,006,655
Public Storage, 4.10%, Series S(a)(f)
96,792 1,513,827
Public Storage, 4.125%, Series M(a)(f)
191,800 3,032,358
Public Storage, 4.625%, Series L(a)(f)
822,115 14,625,426
Public Storage, 4.70%, Series J(a)(f)
233,965 4,202,012
Public Storage, 4.75%, Series K(a)(f)
101,000 1,857,390
Public Storage, 4.875%, Series I(a)(f)
76,213 1,428,994
Public Storage, 5.15%, Series F(a)(f)
75,274 1,495,694
Public Storage, 5.60%, Series H(f)
181 3,913
39,068,937
SHOPPING CENTER
1.1%
CTO Realty Growth, Inc., 6.375%, Series A(a)(f)
56,754 1,186,159
Kimco Realty Corp., 5.125%, Series L(a)(f)
51,193 994,168
Kimco Realty Corp., 5.25%, Class M(a)(f)
201,358 3,976,820
Regency Centers Corp., 5.875%, Series B(a)(f)
209,900 4,523,345
Regency Centers Corp., 6.25%, Series A(a)(f)
161,156 3,642,126
Saul Centers, Inc., 6.00%, Series E(a)(f)
111,000 2,387,610
See accompanying notes to consolidated financial statements.
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Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Shares Value
Saul Centers, Inc., 6.125%, Series D(a)(f)
101,300 $ 2,118,183
18,828,411
SINGLE FAMILY HOMES
0.5%
American Homes 4 Rent, 5.875%, Series G(a)(f)
155,530 3,499,425
American Homes 4 Rent, 6.25%, Series H(a)(f)
239,974 5,581,795
9,081,220
SPECIALTY
0.3%
EPR Properties, 5.75%, Series G(a)(f)
132,002 2,695,481
EPR Properties, 9.00%, Series E (Convertible)(a)(f)
57,085 1,813,590
4,509,071
TELECOMMUNICATION SERVICES
0.6%
AT&T, Inc., 4.75%, Series C(a)(f)
379,911 6,777,612
AT&T, Inc., 5.00%, Series A(a)(f)
88,182 1,667,522
T-Mobile USA, Inc., Senior Debt, 5.50%, due 6/1/70(a)
135,504 2,783,252
11,228,386
UTILITIES
1.4%
CMS Energy Corp., 5.875%, due 3/1/79(a)
251,310 5,503,689
DTE Energy Co., 5.25%, due 12/1/77, Series E(a)
114,351 2,337,334
DTE Energy Co., 6.25%, due 10/1/85, Series H(a)
99,600 2,366,496
NextEra Energy Capital Holdings, Inc., 5.65%, due 3/1/79, Series N
28,232 621,104
NextEra Energy Capital Holdings, Inc., 6.50%, due 6/1/85, Series U
28,042 682,262
NextEra Energy Capital Holdings, Inc., 6.50%, due 4/15/86, Series Z(a)(b)
114,040 2,853,281
Sempra, 5.75%, due 7/1/79(a)
89,854 1,874,354
Southern Co., 4.20%, due 10/15/60, Series C
88,766 1,501,921
Southern Co., 4.95%, due 1/30/80, Series 2020(a)
284,607 5,475,839
Southern Co., 6.50%, due 3/15/85(a)
67,675 1,693,228
Xcel Energy, Inc., 6.25%, due 10/15/85
10,257 241,040
25,150,548
TOTAL PREFERRED SECURITIES-EXCHANGE-TRADED
(Identified cost-$223,142,337)
203,745,130
See accompanying notes to consolidated financial statements.
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Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Principal
Amount* 		Value
PREFERRED SECURITIES-OVER-THE-COUNTER
12.2%
BANKING
6.6%
Banco Bilbao Vizcaya Argentaria SA, 9.375%
to 3/19/29 (Spain)(a)(f)(g)(h)
1,200,000 $ 1,310,993
Banco Santander SA, 7.25% to 12/3/35 (Spain)(f)(g)(h)
3,400,000 3,457,595
Banco Santander SA, 8.00% to 2/1/34 (Spain)(f)(g)(h)
4,725,000 5,100,473
Bank of America Corp., 6.625% to 5/1/30, Series OO(a)(b)(f)(h)
2,000,000 2,062,928
Bank of Montreal, 6.875% to 11/26/30, due 11/26/85, Series 6 (Canada)(h)
3,600,000 3,662,449
Bank of Nova Scotia, 8.625% to 10/27/27, due 10/27/82 (Canada)(a)(h)
1,000,000 1,040,868
Barclays PLC, 9.625% to 12/15/29 (United Kingdom)(a)(b)(f)(g)(h)
5,400,000 5,994,497
BNP Paribas SA, 7.20% to 4/17/36 (France)(f)(g)(h)(i)
5,500,000 5,536,850
BNP Paribas SA, 7.75% to 8/16/29 (France)(a)(b)(f)(g)(h)(i)
3,800,000 3,982,354
BNP Paribas SA, 8.00% to 8/22/31 (France)(f)(g)(h)(i)
3,000,000 3,219,939
BNP Paribas SA, 8.50% to 8/14/28 (France)(a)(b)(f)(g)(h)(i)
2,200,000 2,320,934
Charles Schwab Corp., 4.00% to 12/1/30, Series H(a)(b)(f)(h)
3,850,000 3,614,376
Citigroup Capital III, 7.625%, due 12/1/36(a)
1,090,000 1,224,985
Citigroup, Inc., 6.50% to 5/15/31, Series JJ(a)(f)(h)
452,000 457,470
Citigroup, Inc., 6.875% to 8/15/30, Series GG(a)(b)(f)(h)
8,400,000 8,607,253
Citigroup, Inc., 6.95% to 2/15/30, Series FF(a)(b)(f)(h)
3,500,000 3,582,163
Citigroup, Inc., 7.00% to 8/15/34, Series DD(a)(f)(h)
1,250,000 1,304,351
Cooperatieve Rabobank UA, 6.50% (Netherlands)(f)(j)
EUR 1,500,000 1,938,545
Credit Suisse Group AG, 5.25%, Claim (Switzerland)(e)(f)(g)(i)(k)
1,500,000 375,000
HSBC Holdings PLC, 6.75% to 3/24/31 (United Kingdom)(f)(g)(h)
5,400,000 5,449,777
HSBC Holdings PLC, 7.00% to 9/24/35 (United Kingdom)(f)(g)(h)
2,000,000 2,057,782
HSBC Holdings PLC, 7.05% to 6/5/30 (United Kingdom)(f)(g)(h)
3,200,000 3,286,426
See accompanying notes to consolidated financial statements.
13
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Principal
Amount* 		Value
ING Groep NV, 7.25% to 11/16/34 (Netherlands)(f)(g)(h)(j)
1,600,000 $ 1,681,479
NatWest Group PLC, 8.125% to 11/10/33 (United Kingdom)(a)(f)(g)(h)
1,550,000 1,716,042
Nordea Bank Abp, 6.75% to 11/10/33 (Finland)(a)(b)(f)(g)(h)(i)
2,000,000 2,021,498
PNC Financial Services Group, Inc., 6.00% to 5/15/27, Series U(a)(b)(f)(h)
2,270,000 2,281,280
PNC Financial Services Group, Inc., 6.20% to 9/15/27, Series V(a)(b)(f)(h)
3,460,000 3,509,689
Royal Bank of Canada, 6.50% to 11/24/35, due 11/24/85 (Canada)(a)(h)
2,000,000 1,979,408
Royal Bank of Canada, 6.75% to 8/24/30, due 8/24/85 (Canada)(a)(b)(h)
2,100,000 2,137,149
Societe Generale SA, 8.125% to 11/21/29 (France)(a)(b)(f)(g)(h)(i)
2,400,000 2,528,393
Societe Generale SA, 9.375% to 11/22/27 (France)(a)(f)(g)(h)(i)
1,800,000 1,897,718
State Street Corp., 6.70% to 9/15/29, Series J(a)(f)(h)
1,800,000 1,866,455
Swedbank AB, 7.75% to 3/17/30 (Sweden)(f)(g)(h)(j)
2,200,000 2,326,859
Toronto-Dominion Bank, 7.25% to 7/31/29, due 7/31/84 (Canada)(a)(b)(h)
2,000,000 2,076,510
Toronto-Dominion Bank, 8.125% to 10/31/27, due 10/31/82 (Canada)(a)(h)
1,000,000 1,034,242
UBS Group AG, 6.625% to 1/8/31 (Switzerland)(f)(g)(h)(i)
3,000,000 3,019,260
UBS Group AG, 6.85% to 9/10/29 (Switzerland)(a)(b)(f)(g)(h)(i)
2,600,000 2,649,852
UBS Group AG, 7.00% to 2/5/35 (Switzerland)(a)(f)(g)(h)(i)
1,800,000 1,808,134
UBS Group AG, 7.125% to 8/10/34 (Switzerland)(f)(g)(h)(i)
2,000,000 2,019,126
UBS Group AG, 9.25% to 11/13/28 (Switzerland)(a)(b)(f)(g)(h)(i)
2,600,000 2,799,672
UBS Group AG, 9.25% to 11/13/33 (Switzerland)(a)(b)(f)(g)(h)(i)
2,200,000 2,542,412
Wells Fargo & Co., 6.85% to 9/15/29(a)(b)(f)(h)
5,450,000 5,666,261
Wells Fargo & Co., 7.625% to 9/15/28(a)(b)(f)(h)
2,060,000 2,168,280
119,317,727
See accompanying notes to consolidated financial statements.
14
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Principal
Amount* 		Value
BROKERAGE
0.2%
Goldman Sachs Group, Inc., 4.125% to 11/10/26, Series V(a)(f)(h)
1,675,000 $ 1,667,834
Goldman Sachs Group, Inc., 7.50% to 5/10/29, Series X(a)(f)(h)
1,820,000 1,909,921
3,577,755
ENERGY
0.3%
BP Capital Markets PLC, 6.45% to 12/1/33(a)(b)(f)(h)
2,000,000 2,076,876
Phillips 66 Co., 5.875% to 12/15/30, due 3/15/56, Series A(a)(b)(h)
3,000,000 2,978,866
5,055,742
HEALTH CARE
0.2%
Humana, Inc., 6.625% to 6/15/31, due 9/15/56(a)(b)(h)
2,879,000 2,871,345
INSURANCE
0.9%
Allianz SE, 6.50% to 10/30/34 (Germany)(f)(g)(h)(i)
1,800,000 1,808,928
Corebridge Financial, Inc., 6.875% to 9/15/27, due 12/15/52(a)(b)(h)
1,060,000 1,078,947
Dai-ichi Life Insurance Co. Ltd., 6.20% to 1/16/35 (Japan)(a)(b)(f)(h)(i)
3,200,000 3,262,112
Equitable Holdings, Inc., 6.70% to 12/28/34, due 3/28/55(a)(b)(h)
4,140,000 4,266,866
MetLife Capital Trust IV, 7.875%, due 12/15/37(a)(i)
2,000,000 2,195,660
Prudential Financial, Inc., 6.00% to 6/1/32, due 9/1/52(a)(b)(h)
1,700,000 1,729,577
Voya Financial, Inc., 7.758% to 9/15/28, Series A(a)(b)(f)(h)
2,500,000 2,601,895
16,943,985
PIPELINES
1.0%
Enbridge, Inc., 7.375% to 10/15/27, due 1/15/83 (Canada)(a)(b)(h)
2,610,000 2,673,671
Enbridge, Inc., 7.625% to 10/15/32, due 1/15/83 (Canada)(a)(b)(h)
3,800,000 4,122,590
Enbridge, Inc., 8.50% to 10/15/33, due 1/15/84 (Canada)(a)(b)(h)
2,430,000 2,778,734
Energy Transfer LP, 6.50% to 8/17/26, Series H(a)(f)(h)
1,480,000 1,485,633
Energy Transfer LP, 7.125% to 5/15/30, Series G(a)(b)(f)(h)
3,825,000 3,948,643
See accompanying notes to consolidated financial statements.
15
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Principal
Amount* 		Value
South Bow Canadian Infrastructure Holdings Ltd., 7.50% to 12/1/34, due 3/1/55 (Canada)(a)(b)(h)
2,300,000 $ 2,459,201
17,468,472
SHOPPING CENTER
0.1%
Unibail-Rodamco-Westfield SE, 4.75% to 6/11/31 (France)(f)(h)(j)
EUR 1,700,000 1,952,473
TELECOMMUNICATION SERVICES
1.0%
Bell Canada, 7.00% to 6/15/35, due 9/15/55 (Canada)(a)(b)(h)
2,081,000 2,151,076
Rogers Communications, Inc., 6.875% to 5/2/31, due 7/31/56 (Canada)(h)
2,500,000 2,530,374
TELUS Corp., 6.625% to 3/9/36, due 6/9/56 (Canada)(h)
3,500,000 3,492,929
Vodafone Group PLC, 4.125% to 3/4/31, due 6/4/81 (United Kingdom)(a)(b)(h)
5,710,000 5,315,414
Vodafone Group PLC, 5.125% to 12/4/50, due 6/4/81 (United Kingdom)(a)(h)
500,000 391,090
Vodafone Group PLC, 7.00% to 1/4/29, due 4/4/79 (United Kingdom)(a)(h)
3,354,000 3,479,725
17,360,608
UTILITIES
1.9%
AES Corp., 7.60% to 10/15/29, due 1/15/55(a)(h)
750,000 770,019
Algonquin Power & Utilities Corp., 4.75% to 1/18/27, due 1/18/82 (Canada)(a)(b)(h)
2,600,000 2,576,114
American Electric Power Co., Inc., 6.95% to 9/15/34, due 12/15/54(a)(b)(h)
2,600,000 2,783,760
CenterPoint Energy, Inc., 6.85% to 11/15/34, due 2/15/55, Series B(a)(h)
1,000,000 1,051,447
Dominion Energy, Inc., 4.35% to 1/15/27, Series C(a)(b)(f)(h)
2,500,000 2,488,275
Dominion Energy, Inc., 6.875% to 11/3/29, due 2/1/55, Series A(a)(b)(h)
2,415,000 2,496,557
Entergy Corp., 7.125% to 9/1/29, due 12/1/54(a)(b)(h)
3,000,000 3,103,110
EUSHI Finance, Inc., 7.625% to 9/15/29, due 12/15/54(a)(b)(h)
2,167,000 2,251,985
NextEra Energy Capital Holdings, Inc., 6.00%
to 7/4/31, due 10/1/56, Series AA(h)
2,182,000 2,181,561
See accompanying notes to consolidated financial statements.
16
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Principal
Amount* 		Value
NextEra Energy Capital Holdings, Inc., 6.50% to 5/15/35, due 8/15/55(a)(h)
1,190,000 $ 1,221,880
NextEra Energy Capital Holdings, Inc., 6.625% to 7/4/46, due 10/1/66, Series CC(h)
3,080,000 3,128,624
Puget Energy, Inc., 7.25% to 6/15/36, due 9/15/56(h)
1,602,000 1,636,236
Sempra, 4.125% to 1/1/27, due 4/1/52(a)(b)(h)
5,000,000 4,960,053
Sempra, 6.40% to 7/1/34, due 10/1/54(a)(b)(h)
4,190,000 4,213,808
34,863,429
TOTAL PREFERRED SECURITIES-OVER-THE-COUNTER
(Identified cost-$215,010,543)
219,411,536
CORPORATE BONDS
2.5%
APARTMENT
0.3%
ERP Operating LP, 4.50%, due 6/1/45(a)
1,500,000 1,306,955
Essex Portfolio LP, 5.50%, due 4/1/34(a)(b)
3,440,000 3,509,526
4,816,481
DIVERSIFIED
0.1%
American Assets Trust LP, 6.15%, due 10/1/34(a)(b)
2,685,000 2,731,402
FINANCE
0.1%
HA Sustainable Infrastructure Capital, Inc., 6.00%, due 3/15/36(a)
1,250,000 1,233,912
FREE STANDING
0.1%
Agree LP, 5.625%, due 6/15/34(a)
925,000 951,141
Essential Properties LP, 2.95%, due 7/15/31(a)(b)
1,473,000 1,332,164
2,283,305
HEALTH CARE
0.1%
National Health Investors, Inc., 5.35%, due 2/1/33(a)
1,000,000 990,454
Sabra Health Care LP, 3.20%, due 12/1/31(a)(b)
500,000 453,551
1,444,005
HOTEL
0.1%
Host Hotels & Resorts LP, 5.70%, due 7/1/34(a)(b)
2,265,000 2,317,897
INDUSTRIALS
0.1%
Americold Realty Operating Partnership LP, 5.409%, due 9/12/34(a)
1,000,000 972,484
See accompanying notes to consolidated financial statements.
17
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Principal
Amount* 		Value
INFRASTRUCTURE
0.1%
Crown Castle, Inc., 4.00%, due 11/15/49(a)
1,800,000 $ 1,344,655
OFFICE
0.2%
Hudson Pacific Properties LP, 5.95%, due 2/15/28(a)(b)
2,975,000 2,949,411
REGIONAL MALL
0.1%
Simon Property Group LP, 5.85%, due 3/8/53(a)(b)
2,620,000 2,658,724
SELF STORAGE
0.1%
Public Storage Operating Co., 5.35%, due 8/1/53(a)(b)
1,705,000 1,637,365
SHOPPING CENTER
0.6%
Federal Realty OP LP, 4.50%, due 12/1/44(a)
1,700,000 1,476,941
Global Net Lease, Inc., 4.50%, due 9/30/28(a)(b)(i)
4,200,000 4,095,458
Kimco Realty OP LLC, 6.40%, due 3/1/34(a)(b)
1,460,000 1,580,114
Phillips Edison Grocery Center Operating Partnership I LP, 2.625%, due 11/15/31(a)(b)
1,160,000 1,034,667
Phillips Edison Grocery Center Operating Partnership I LP, 5.75%, due 7/15/34(a)(b)
1,995,000 2,061,299
10,248,479
SPECIALTY
0.5%
Newmark Group, Inc., 7.50%, due 1/12/29(a)
840,000 880,459
VICI Properties LP, 5.625%, due 5/15/52(a)
1,765,000 1,622,228
VICI Properties LP, 6.125%, due 4/1/54(a)
1,100,000 1,076,088
VICI Properties LP/VICI Note Co., Inc., 4.125%, due 8/15/30(a)(b)(i)
6,297,000 6,045,571
9,624,346
TOTAL CORPORATE BONDS
(Identified cost-$43,941,699)
44,262,466
COMMERCIAL MORTGAGE-BACKED SECURITIES
0.2%
NYO Commercial Mortgage Trust, 5.285%
(1 Month USD Term SOFR + 1.659%), due 12/15/38, Series 2021-1290(i)(l)
4,450,000 4,443,932
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(Identified cost-$4,278,953)
4,443,932
See accompanying notes to consolidated financial statements.
18
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Shares Value
WARRANTS-REAL ESTATE-OFFICE
0.4%
Hudson Pacific Properties, Inc., exercise price $0.07(e)(m)
446,575 $ 6,752,214
TOTAL WARRANTS
(Identified cost-$6,939,773)
6,752,214
Ownership%† †
PRIVATE REAL ESTATE-OFFICE
1.0%
Legacy Gateway JV LLC, Plano, TX(n)
56.5% 18,832,141
TOTAL PRIVATE REAL ESTATE
(Identified cost-$23,637,405)
18,832,141
Shares
SHORT-TERM INVESTMENTS
1.6%
MONEY MARKET FUNDS
State Street Institutional Treasury Plus Money Market Fund, Premier Class, 3.58%(o)
11,062,816 11,062,816
State Street Institutional U.S. Government Money Market Fund, Premier Class, 3.58%(o)
16,674,536 16,674,536
TOTAL SHORT-TERM INVESTMENTS
(Identified cost-$27,737,352)
27,737,352
PURCHASED OPTION CONTRACTS
(Premiums paid-$125,509)
0.0% 110,850
TOTAL INVESTMENTS IN SECURITIES
(Identified cost-$2,019,844,301)
138.9% 2,500,045,449
WRITTEN OPTION CONTRACTS
(Premiums received-$1,898,874)
(0.1)  (1,877,645 )
LIABILITIES IN EXCESS OF OTHER ASSETS
(38.8)  (697,666,741 )
SERIES A CUMULATIVE PREFERRED STOCK, AT LIQUIDATION VALUE
(0.0)  (125,000 )
NET ASSETS
100.0% $ 1,800,376,063
See accompanying notes to consolidated financial statements.
19
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Exchange-Traded Option Contracts
Purchased Options
Description Exercise
Price 		Expiration
Date 		Number of
Contracts 		Notional
Amount(p) 		Premiums
Paid 		Value
Put-Equinix, Inc.
$1,040.00 7/17/26      47 $ 4,899,233 $  125,509 $  110,850
Written Options
Description Exercise
Price 		Expiration
Date 		Number of
Contracts 		Notional
Amount(p) 		Premiums
Received 		Value
Call-Equinix, Inc.
$1,140.00 7/17/26 (47 ) $ (4,899,233 ) $ (89,277 ) $ (7,907 )
Call-Iron Mountain, Inc.
115.00 7/17/26 (509 ) (6,429,179 ) (520,777 ) (610,579 )
Call-Kilroy Realty Corp.
42.50 7/17/26 (1,311 ) (4,912,317 ) (50,574 ) (21,114 )
Call-UDR, Inc.
40.00 7/17/26 (1,360 ) (5,429,120 ) (52,465 ) (103,761 )
Call-BXP, Inc.
67.50 8/21/26 (846 ) (5,609,826 ) (157,054 ) (241,020 )
Call-Host Hotels & Resorts, Inc.
23.28 8/21/26 (2,310 ) (5,477,010 ) (322,261 ) (323,770 )
Call-Host Hotels & Resorts, Inc.
25.28 8/21/26 (4,098 ) (9,716,358 ) (293,317 ) (197,974 )
Put-Equinix, Inc.
1,000.00 7/17/26 (94 ) (9,798,466 ) (153,948 ) (96,612 )
Put-SBA Communications Corp.
175.00 7/17/26 (261 ) (4,605,606 ) (51,794 ) (110,651 )
Put-Sun Communities, Inc.
120.00 7/17/26 (405 ) (4,856,355 ) (82,044 ) (95,831 )
Put-Omega Healthcare Investors, Inc.
42.00 8/21/26 (1,128 ) (5,378,304 ) (77,353 ) (33,018 )
Put-Simon Property Group, Inc.
190.00 9/18/26 (237 ) (5,300,505 ) (48,010 ) (35,408 )
(12,606 ) $ (72,412,279 ) $ (1,898,874 ) $ (1,877,645 )
Centrally Cleared Interest Rate Swap Contracts
Notional
Amount
Fixed
Rate 		Fixed
Rate
Pay/
Receive 		Fixed
Payment
Frequency 		Floating
Rate 		Floating
Rate
Pay/
Receive 		Floating
Payment
Frequency 		Maturity
Date 		Unrealized
Appreciation
(Depreciation) 		Upfront
Payments
(Receipts) 		Value
$115,000,000
0.762% Pay Monthly 3.794%(q) Receive Monthly 9/15/26 $ 907,521 $ (1,711 ) $ 905,810
190,000,000
1.237% Pay Monthly 3.794%(q) Receive Monthly 9/15/27 6,708,190 (12,340 ) 6,695,850
200,000,000
3.246% Pay Monthly 3.680%(q) Receive Monthly 9/15/28 2,917,750 - 2,917,750
$ 10,533,461 $ (14,051 ) $ 10,519,410
Forward Foreign Currency Exchange Contracts
Counterparty Contracts to
Deliver 		In Exchange
For 		Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Brown Brothers Harriman
EUR 3,329,024 USD 3,814,912 7/23/26 $ 7,932
See accompanying notes to consolidated financial statements.
20
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Glossary of Portfolio Abbreviations
EUR
Euro Currency
OIS
Overnight Indexed Swap
REIT
Real Estate Investment Trust
SOFR
Secured Overnight Financing Rate
USD
United States Dollar
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund's policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.
The following table summarizes the Fund's financial instruments categorized in the fair value hierarchy. The breakdown of the Fund's financial instruments into major categories is disclosed in the Consolidated Schedule of Investments above.
Quoted Prices
in Active
Markets for
Identical
Investments
(Level 1) 		Other
Significant
Observable
Inputs
(Level 2) 		Significant
Unobservable
Inputs
(Level 3) 		Total
Common Stock
$ 1,974,749,828 $ - $ - $ 1,974,749,828
Preferred Securities-
Exchange-Traded
203,745,130 - - 203,745,130
Preferred Securities-
Over-the-Counter
- 219,411,536 - 219,411,536
Corporate Bonds
- 44,262,466 - 44,262,466
Commercial Mortgage-Backed Securities
- 4,443,932 - 4,443,932
Warrants
- 6,752,214 - 6,752,214
Private Real Estate
- - 18,832,141 (r) 18,832,141
Short-Term Investments
- 27,737,352 - 27,737,352
Purchased Option Contracts
- 110,850 - 110,850
Total Investments in Securities
$ 2,178,494,958 $ 302,718,350 $ 18,832,141 $ 2,500,045,449
See accompanying notes to consolidated financial statements.
21
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
Quoted Prices
in Active
Markets for
Identical
Investments
(Level 1) 		Other
Significant
Observable
Inputs
(Level 2) 		Significant
Unobservable
Inputs
(Level 3) 		Total
Forward Foreign Currency Exchange Contracts
$ - $ 7,932 $ - $ 7,932
Interest Rate Swap Contracts
- 10,533,461 - 10,533,461
Total Derivative Assets
$ - $ 10,541,393 $ - $ 10,541,393
Written Option Contracts
$ - $ (1,877,645 ) $ - $ (1,877,645 )
Total Derivative Liabilities
$ - $ (1,877,645 ) $ - $ (1,877,645 )
The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
Balance
as of
December 31,
2025 		Change in
unrealized
appreciation
(depreciation) 		Balance
as of
June 30,
2026
Private Real Estate
$ 18,341,950 $ 490,191 $ 18,832,141
The change in unrealized appreciation (depreciation) attributable to securities owned on June 30, 2026 which were valued using significant unobservable inputs (Level 3) amounted to $490,191.
The following table summarizes the quantitative inputs and assumptions used for investments categorized in Level 3 of the fair value hierarchy.
Fair Value
at June 30,
2026 		Valuation
Technique 		Unobservable
Inputs 		Amount Valuation
Impact
from an
Increase
in Input(s)
Private Real Estate
$ 18,832,141 Discounted
Cash Flow 		Terminal
Capitalization Rate
Discount Rate
7.25
8.50
%
%

Decrease
Decrease
Note: Percentages indicated are based on the net assets of the Fund.
*
Amount denominated in U.S. dollars unless otherwise indicated.
See accompanying notes to consolidated financial statements.
22
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED SCHEDULE OF INVESTMENTS-(Continued)
June 30, 2026 (Unaudited)
† †
Legacy Gateway JV LLC, owns a Class A office building located at 6860 N. Dallas Parkway, Plano, Texas 75024.
(a)
All or a portion of the security is pledged as collateral in connection with the Fund's revolving credit agreement. $1,459,093,522 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. $527,951,038 in aggregate has been rehypothecated.
(c)
All or a portion of the security is pledged in connection with exchange-traded written option contracts. $56,676,306 in aggregate has been pledged as collateral.
(d)
Restricted security. Aggregate holdings equal 0.3% of the net assets of the Fund. This security was acquired on August 3, 2020, at a cost of $8,757,813.
(e)
Non-income producing security.
(f)
Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer.
(g)
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 $70,911,993 which represents 3.9% of the net assets of the Fund (2.8% of the managed assets of the Fund).
(h)
Security converts to floating rate after the indicated fixed-rate coupon period.
(i)
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 $58,572,803 which represents 3.3% of the net assets of the Fund, of which 0.02% are illiquid.
(j)
Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $7,899,356 which represents 0.4% of the net assets of the Fund, of which 0.0% are illiquid.
(k)
Security is in default.
(l)
Variable rate. Rate shown is in effect at June 30, 2026.
(m)
These warrants do not have a stated expiration date.
(n)
Security value is determined based on significant unobservable inputs (Level 3).
(o)
Rate quoted represents the annualized seven-day yield.
(p)
Represents the number of contracts multiplied by notional contract size multiplied by the underlying price.
(q)
Based on 1-Day USD-SOFR-OIS. Represents rates in effect at June 30, 2026.
(r)
Private Real Estate, 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. See Note 1-Portfolio Valuation.
(s)
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.
See accompanying notes to consolidated financial statements.
23
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES 
June 30, 2026 (Unaudited) 
ASSETS:
Investments in securities, at value(a) (Identified cost-$2,019,844,301)
$ 2,500,045,449
Cash
274,138
Cash collateral pledged for interest rate swap contracts
5,994,571
Foreign currency, at value (Identified cost-$56,807)
56,844
Receivable for:
Dividends and interest
11,980,431
Variation margin on interest rate swap contracts
312,994
Unrealized appreciation on forward foreign currency exchange contracts
7,932
Other assets
127,073
Total Assets
2,518,799,432
LIABILITIES:
Written option contracts, at value (Premiums received-$1,898,874)
1,877,645
Payable for:
Credit agreement
710,000,000
Interest expense
2,558,958
Investment management fees
1,759,765
Investment securities purchased
1,108,892
Dividends and distributions declared
577,726
Administration fees
124,219
Other liabilities
291,164
Total Liabilities
718,298,369
Series A Cumulative Preferred Stock
(125 shares authorized and issued at $1,000 per share) (Note 9)
125,000
TOTAL NET ASSETS APPLICABLE TO COMMON SHARES
$ 1,800,376,063
NET ASSETS Applicable to Common Shareholders consist of:
Paid-in capital
$ 1,284,870,666
Total distributable earnings/(accumulated loss)
515,505,397
$ 1,800,376,063
NET ASSET VALUE PER COMMON SHARE:
($1,800,376,063 ÷ 134,517,543 common shares outstanding)
$ 13.38
MARKET PRICE PER COMMON SHARE
$ 12.31
MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER COMMON SHARE
(8.00 )%
(a)
Includes $1,459,093,522 pledged as collateral, of which $527,951,038 has been rehypothecated in connection with the Fund's credit agreement, as described in Note 8.
See accompanying notes to consolidated financial statements.
24
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS 
For the Six Months Ended June 30, 2026 (Unaudited) 
Investment Income:
Dividends
$ 37,731,021
Interest
7,063,884
Total Investment Income
44,794,905
Expenses:
Interest expense
15,492,200
Investment management fees
10,319,059
Administration fees
836,127
Shareholder reporting expenses
362,310
Professional fees
86,257
Custodian fees and expenses
47,880
Directors' fees and expenses
39,164
Transfer agent fees and expenses
11,888
Miscellaneous
70,437
Total Expenses
27,265,322
Net Investment Income (Loss)
17,529,583
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in securities
16,095,526
Written option contracts
1,195,477
Interest rate swap contracts
4,915,646
Forward foreign currency exchange contracts
120,885
Foreign currency transactions
(1,041 )
Net realized gain (loss)
22,326,493
Net change in unrealized appreciation (depreciation) on:
Investments in securities
206,585,411
Written option contracts
79,914
Interest rate swap contracts
462,624
Forward foreign currency exchange contracts
18,158
Foreign currency translations
(1,677 )
Net change in unrealized appreciation (depreciation)
207,144,430
Net Realized and Unrealized Gain (Loss)
229,470,923
Net Increase (Decrease) in Net Assets Resulting from Operations
247,000,506
Distributions Paid to Series A Cumulative Preferred Stockholders (Note 9)
(7,438 )
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting From Operations
$ 246,993,068
See accompanying notes to consolidated financial statements.
25
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS APPLICABLE TO COMMON SHARES (Unaudited)
For the 
Six Months Ended
June 30, 2026 		For the 
Year Ended
December 31, 2025
Change in Net Assets Applicable to Common Shareholders:
From Operations:
Net investment income (loss)
$ 17,529,583 $ 26,316,284
Net realized gain (loss)
22,326,493 135,206,577
Net change in unrealized appreciation (depreciation)
207,144,430 (114,235,744 )
Distributions paid to Series A Cumulative Preferred Stockholders
(7,438 ) (15,000 )
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
246,993,068 47,272,117
Distributions to Common Shareholders
(72,612,553 ) (146,530,270 )
Capital Stock Transactions:
Increase (decrease) in net assets from Fund share transactions
1,144,658 -
Total increase (decrease) in net assets applicable to Common Shareholders
175,525,173 (99,258,153 )
Net Assets Applicable to Common Shareholders:
Beginning of period
1,624,850,890 1,724,109,043
End of period
$ 1,800,376,063 $ 1,624,850,890
See accompanying notes to consolidated financial statements.
26
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2026 (Unaudited)
Increase (Decrease) in Cash:
Cash Flows from Operating Activities:
Net increase (decrease) in net assets resulting from operations*
$ 247,000,506
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Purchases of long-term investments
(213,957,584 )
Proceeds from sales and maturities of long-term investments
294,409,178
Net purchases, sales and maturities of short-term investments
(18,190,595 )
Net amortization of premium (accretion of discount) on investments in securities
48,130
Net (increase) decrease in dividends and interest receivable and other assets
(479,549 )
Net (increase) decrease in receivable for variation margin on interest rate swap contracts
(50,339 )
Net increase (decrease) in interest expense payable, accrued expenses and other liabilities
(341,065 )
Net increase (decrease) in premiums received from written option contracts
1,536,343
Net change in unrealized (appreciation) depreciation on written option contracts
(79,914 )
Net change in unrealized (appreciation) depreciation on investments in securities
(206,585,411 )
Net change in unrealized (appreciation) depreciation on forward foreign currency exchange contracts
(18,158 )
Net realized (gain) loss on investments in securities
(16,095,526 )
Cash provided by (used for) operating activities
87,196,016
Cash Flows from Financing Activities:
Distributions paid on Series A Cumulative Preferred Stock
(net of distributions payable)
(7,438 )
Dividends and distributions paid
(88,862,997 )
Cash provided by (used for) financing activities
(88,870,435 )
Increase (decrease) in cash and restricted cash (including foreign currency)
(1,674,419 )
Cash and restricted cash at beginning of period (including foreign currency)
7,999,972
Cash and restricted cash at end of period (including foreign currency)
$ 6,325,553
*
Does not include distributions paid to Series A Cumulative Preferred Stockholders.
See accompanying notes to consolidated financial statements.
27
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS-(Continued)
For the Six Months Ended June 30, 2026 (Unaudited)
Supplemental Disclosure of Cash Flow Information:
For the six months ended June 30, 2026, interest paid was $15,674,828 and reinvestment of dividends was $1,144,658.
The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Statement of Assets and Liabilities that sums to the total of such amounts shown on the Consolidated Statement of Cash Flows.
Cash
$ 274,138
Restricted cash
5,994,571
Foreign currency
56,844
Total cash and restricted cash shown on the Consolidated Statement of Cash Flows
$ 6,325,553
Restricted cash consists of cash that has been pledged to cover the Fund's collateral or margin obligations under derivative contracts. It is reported on the Consolidated Statement of Assets and Liabilities as cash collateral pledged for interest rate swap contracts.
See accompanying notes to consolidated financial statements.
28
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
The following table includes selected data for a common share outstanding throughout each period and other performance information derived from the consolidated financial statements. It should be read in conjunction with the consolidated financial statements and notes thereto.
For the Six
Months Ended
June 30, 2026 		For the Year Ended December 31,
Per Share Operating Data: 2025 2024 2023 2022 2021
Net asset value per common share, beginning of period
$12.09 $12.83 $13.05 $12.26 $18.27 $13.17
Income (loss) from investment operations:
Net investment income (loss)(a)
0.13 0.20 0.16 0.21 0.30 0.16
Net realized and unrealized gain (loss)
1.70 0.15 0.58 1.54 (5.11 ) 5.90
Distributions paid to Series A Cumulative Preferred Stockholders
(0.00 )(b) (0.00 )(b) (0.00 )(b) (0.00 )(b) (0.00 )(b) -
Total from investment operations applicable to common shares
1.83 0.35 0.74 1.75 (4.81 ) 6.06
Less dividends and distributions to common shareholders from:
Net investment income
(0.54 ) (0.33 ) (0.36 ) (0.51 ) (0.21 ) (0.20 )
Net realized gain
- (0.76 ) (0.60 ) (0.45 ) (0.99 ) (0.76 )
Total dividends and distributions to common shareholders
(0.54 ) (1.09 ) (0.96 ) (0.96 ) (1.20 ) (0.96 )
Net increase (decrease) in net asset value per common share
1.29 (0.74 ) (0.22 ) 0.79 (6.01 ) 5.10
Net asset value per common share, end of period
$13.38 $12.09 $12.83 $13.05 $12.26 $18.27
Market price per common share, end of period
$12.31 $11.42 $12.24 $12.24 $11.50 $18.22
Net asset value total return(c)
15.42 %(d) 2.94 % 6.19 % 15.59 % -26.83 % 47.66 %
Market price total return(c)
12.42 %(d) 1.92 % 8.01 % 15.58 % -31.18 % 56.40 %
See accompanying notes to consolidated financial statements.
29
Cohen & Steers Quality Income Realty Fund, Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)-(Continued)
For the Six
Months Ended
June 30, 2026 		For the Year Ended December 31,
Ratios/Supplemental Data: 2025 2024 2023 2022 2021
Net assets applicable to common shareholders, end of period (in millions)
$1,800.4 $1,624.9 $1,724.1 $1,754.6 $1,647.4 $2,452.4
Ratios to average daily net assets:
Expenses
3.16 %(e) 3.45 %(f) 3.78 %(f) 3.99 %(f) 2.33 %(f) 1.91 %
Expenses (excluding interest expense)
1.37 %(e) 1.38 %(f) 1.37 %(f) 1.40 %(f) 1.33 %(f) 1.28 %
Net investment income (loss)
2.03 %(e) 1.53 %(f) 1.25 %(f) 1.73 %(f) 2.00 %(f) 1.05 %
Portfolio turnover rate
9 %(d) 31 % 30 % 20 % 31 % 38 %
Credit Agreement:
Asset coverage ratio for credit agreement
354 % 329 % 343 % 347 % 332 % 465 %
Asset coverage per $1,000 for credit agreement
$3,535 $3,288 $3,428 $3,471 $3,320 $4,647
Amount of loan outstanding (in millions)
$710.0 $710.0 $710.0 $710.0 $710.0 $672.5
Preferred Stock:
Series A Cumulative Preferred Stock at liquidation value, end of period (in 000s)
$125.0 $125.0 $125.0 $125.0 $125.0 -
Asset coverage ratio for Series A Cumulative Preferred Stock
354 % 329 % 343 % 347 % 332 % -
Asset coverage per $1,000 liquidation value per share of Series A Cumulative Preferred Stock
$3,535 $3,288 $3,428 $3,471 $3,320 -
(a)
Calculation based on average shares outstanding.
(b)
Amount is less than $0.005.
(c)
Net asset value total return measures the change in net asset value per share over the period indicated. Market price total return is computed based upon the Fund's market price per share and excludes the effects of brokerage commissions. Dividends and distributions are assumed, for purposes of these calculations, to be reinvested at prices obtained under the Fund's dividend reinvestment plan.
(d)
Not annualized.
(e)
Annualized.
(f)
Calculated on the basis of average net assets of common stock shareholders. Ratios do not reflect the effect of dividend payments to Series A Cumulative Preferred Stockholders.
See accompanying notes to consolidated financial statements.
30
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 1. Organization and Significant Accounting Policies
Cohen & Steers Quality Income Realty Fund, Inc. (the Fund) was incorporated under the laws of the State of Maryland on August 22, 2001 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, closed-end management investment company. The Fund's primary investment objective is high current income through investment in real estate securities. The Fund's secondary investment objective is capital appreciation.
Cohen & Steers RQI Trust (the REIT Subsidiary), is a wholly-owned subsidiary of the Fund organized under the laws of the state of Maryland as a statutory trust on July 9, 2021 that commenced operations on November 30, 2021. The REIT Subsidiary acts as an investment vehicle for the Fund in order to effect certain investments on behalf of the Fund, consistent with the Fund's investment objectives and policies. The Fund expects that it will achieve a significant portion of its exposure to private real estate investments through investment in the REIT Subsidiary. The REIT Subsidiary may use wholly-owned, limited liability companies to contain the exposure of individual private real estate investments. Unlike the Fund, the REIT Subsidiary may invest without limitation in private real estate. Investments in the REIT Subsidiary are limited to 25% of the Fund's total assets. The Consolidated Schedule of Investments includes positions of the Fund and the REIT Subsidiary. The financial statements have been consolidated and include the accounts of the Fund and the REIT Subsidiary. All significant inter-company balances and transactions have been eliminated in consolidation.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its consolidated financial statements. The Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946-Investment Companies. The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
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 swap contracts are valued based upon prices provided by a third-party pricing service. 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, when supported by sufficient trading volume, or otherwise based upon prices provided by a third-party pricing service.
31
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges 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 over-the-counter (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 Fund utilizes an independent valuation services firm (the Independent Valuation Advisor) to assist the investment manager in the determination of the Fund's fair value of private real estate investments held by the REIT Subsidiary. Limited scope appraisals are prepared on a monthly basis and typically include a limited comparable sales and a full discounted cash flow analysis. Annually, a full scope, detailed appraisal report is completed which typically includes market analysis, cost approach, sales comparison approach and an income approach containing a discounted cash flow analysis. The full scope report is prepared by a third-party appraisal firm. The investment manager, including through communication with the Independent Valuation Advisor, monitors for material events that the investment manager believes may be expected to have a material impact on the most recent estimated fair values of such private real estate investments. However, rapidly changing market conditions or material events may not be immediately reflected in the Fund's or REIT Subsidiary's daily NAV. The investment manager, in conjunction with the Independent Valuation Advisor, values the private real estate investments using the valuation methodology it deems most appropriate and consistent with industry best practices and market conditions. The
32
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
investment manager expects the primary methodology used to value private real estate investments will be the income approach. Consistent with industry practices, the income approach incorporates actual contractual lease income, professional judgments regarding comparable rental and operating expense data, the capitalization or discount rate and projections of future rent and expenses based on appropriate market evidence, and other subjective factors. Other methodologies that may also be used to value properties include, among other approaches, sales comparisons and cost approaches. Private real estate appraisals are reported on a free and clear basis (i.e. any property-level indebtedness that may be in place is not incorporated into the valuation). Property level debt is valued separately in accordance with GAAP.
The Board of Directors has designated the investment manager as the Fund's "Valuation Designee" under Rule 2a-5 under the 1940 Act. As Valuation Designee, the investment manager is authorized to make fair valuation determinations, 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.
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 are 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
33
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
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.
The levels associated with valuing the Fund's investments as of June 30, 2026 are disclosed in the Fund's Consolidated Schedule of Investments.
Security Transactions and Investment Income: Security transactions are recorded on trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income, which includes the amortization of premiums and accretion of discounts, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Distributions from real estate investment trusts (REITs) are recorded as ordinary income, net realized capital gain or return of capital based on information reported by the REITs and management's estimates of such amounts based on historical information. These estimates are adjusted when the actual source of distributions is disclosed by the REITs and actual amounts may differ from the estimated amounts.
Cash: For the purposes of the Consolidated Statement of Cash Flows, the Fund defines cash as cash, including foreign currency and restricted cash.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign currency transaction gains or losses arise from sales of foreign currencies, (excluding gains and losses on forward foreign currency exchange contracts, which are presented
34
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
separately, if any), currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates. Pursuant to U.S. federal income tax regulations, certain foreign currency gains/losses included in realized and unrealized gains/losses are included in or are a reduction of ordinary income for federal income tax purposes.
Forward Foreign Currency Exchange Contracts: The Fund may enter 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 Consolidated Statement of Assets and Liabilities. 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 on the Consolidated Statement of Assets and Liabilities 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 investment. Other risks include the possibility of an illiquid options market or the inability of the counterparties to fulfill their obligations under the contracts.
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
35
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
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. 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) in the Consolidated Statement of Operations.
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 Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement of Assets and Liabilities 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 in the Consolidated Statement of Assets and Liabilities. Any upfront payments paid or received upon entering into a swap agreement would be recorded as assets or liabilities, respectively, in the Consolidated Statement of Assets and Liabilities, and amortized or accreted over the life of the swap and recorded as realized gain (loss) in the Consolidated Statement of Operations. Payments received from or paid to the counterparty during the term of the swap agreement, or at termination, are recorded as realized gain (loss) in the Consolidated Statement of Operations.
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 Consolidated Statement of Assets and Liabilities. 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.
36
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Dividends and Distributions to Shareholders: Dividends from net investment income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from GAAP. Dividends from net investment income, if any, are typically declared quarterly and paid monthly. Net realized capital gains, unless offset by any available capital loss carryforward, are typically distributed to shareholders at least annually. Dividends and distributions to shareholders are recorded on the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund in accordance with the Fund's dividend reinvestment plan, unless the shareholder has elected to have them paid in cash.
The Fund has a managed distribution policy in accordance with exemptive relief issued by the U.S. Securities and Exchange Commission (SEC). The Plan gives the Fund greater flexibility to realize long-term capital gains throughout the year and to distribute those gains on a more regular basis to shareholders. Therefore, regular monthly distributions throughout the year may include a portion of estimated realized long-term capital gains, along with net investment income, short-term capital gains and return of capital, which is not taxable. In accordance with the Plan, the Fund is required to adhere to certain conditions in order to distribute long-term capital gains during the year.
Dividends from net investment income are subject to recharacterization for tax purposes. Based upon the results of operations for the six months ended June 30, 2026 the investment manager considers it likely that a portion of the dividends will be reclassified to distributions from net realized gain upon the final determination of the Fund's taxable income after the Fund's fiscal year end.
Distributions Subsequent to June 30, 2026: The following distributions have been declared by the Fund's Board of Directors and are payable subsequent to the period end of this report.
Ex-Date/
Record Date
Payable Date
Amount
7/6/26 7/31/26 $0.090
8/11/26 8/31/26 $0.090
9/8/26 9/30/26 $0.090
Distributions to holders of Series A Cumulative Preferred Stock are accrued daily and paid semi-annually and are determined as described in Note 9. The payments made to the holders of the Fund's Series A Cumulative Preferred Stock are treated as dividends or distributions.
Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company (RIC), if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to RICs, and by distributing substantially all of its taxable earnings to its shareholders. Also, in order to avoid the payment of any federal excise taxes, the Fund will distribute substantially all of its net investment income and net realized gains on a calendar year basis. Accordingly, no provision for federal income or excise tax is necessary. Dividend and interest income from holdings in non-U.S. securities are recorded net of non-U.S. taxes paid. Management has analyzed the Fund's tax positions taken on federal and applicable state income tax returns as well as its tax positions in non-U.S. jurisdictions in which it trades for all open tax years and has concluded that as of June 30, 2026, no additional provisions for income tax are required in the Fund's consolidated financial
37
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
statements. The Fund's tax positions for the tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.
The REIT Subsidiary has elected to be taxed as a REIT under Subchapter M of the Code. The REIT Subsidiary's qualification and taxation as a REIT depends upon the REIT Subsidiary's ability to meet on a continuing basis, through actual operating results, certain qualification tests set forth in the Code. Those qualification tests involve the percentage of income that it earns from specified sources, the percentage of its assets that falls within specified categories, the diversity of the ownership of its shares, and the percentage of its taxable income that the REIT Subsidiary distributes. As a REIT, the REIT Subsidiary generally will be allowed to deduct dividends paid to its shareholders and, as a result, the REIT Subsidiary will not be subject to U.S. federal income tax on that portion of its ordinary income and net capital gain that the REIT Subsidiary annually distributes to its shareholders, as long as the REIT Subsidiary meets the minimum distribution requirements under the Code. The REIT Subsidiary intends to make distributions on a regular basis as necessary to avoid material U.S. federal income tax and to comply with the REIT distribution requirements.
For the current open tax year and for all major jurisdictions, management of the REIT Subsidiary has analyzed and concluded that there are no uncertain tax positions that would require recognition in the Fund's consolidated financial statements. The REIT Subsidiary's tax positions for the tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.
Note 2. Investment Management Fees, Administration Fees and Other Transactions with Affiliates
Investment Management Fees: Cohen & Steers Capital Management, Inc. serves as the Fund's investment manager pursuant to an investment management agreement (the investment management agreement). Under the terms of the investment management agreement, the investment manager provides the Fund with day-to-day investment decisions and generally manages the Fund's investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.
For the services provided to the Fund, the investment manager receives a fee, accrued daily and paid monthly, at the annual rate of 0.85% of the average daily managed assets of the Fund. Managed assets are equal to the net assets plus the amount of any borrowings used for leverage outstanding.
Administration Fees: The Fund has entered into an administration agreement with the investment manager under which the investment manager performs certain administrative functions for the Fund and receives a fee, accrued daily and paid monthly, at the annual rate of 0.06% of the average daily managed assets of the Fund. For the six months ended June 30, 2026, the Fund incurred $728,404 in fees under this administration agreement. Additionally, the Fund pays State Street Bank and Trust Company as co-administrator under a fund accounting and administration agreement.
38
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Directors' and Officers' Fees: Certain directors and officers of the Fund are also directors, officers and/or employees of the investment manager. The Fund does not pay compensation to interested directors and officers, except for the Chief Compliance Officer who received compensation from the investment manager, which was reimbursed by the Fund, in the amount of $7,395 for the six months ended June 30, 2026.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the six months ended June 30, 2026, totaled $215,066,476 and $287,363,314, respectively.
Note 4. Investments in Non-Consolidated Limited Liability Company
In accordance with requirements under Regulation S-X Rules 3-09 and 4-08(g), the Fund evaluates its unconsolidated subsidiaries as significant subsidiaries under the rules and, accordingly, below is summary financial information for the Fund's investments in non-consolidated limited liability companies at historical cost as of June 30, 2026 and the income statement for the six months ended June 30, 2026. The Fund states its ownership interests in non-consolidated limited liability companies at fair value.
Legacy Gateway JV LLC(a)
Balance Sheet:
Assets:
Real estate, net (total cost)
$ 84,264,176
Cash
2,507,575
Other current assets
1,542,243
Total Assets
$ 88,313,994
Liabilities and Equity:
Mortgage notes payable
$ 52,000,000
Accrued expenses and accounts payable
939,046
Tenant security deposits
175,292
Other liabilities
606,328
Total Liabilities
53,720,666
Equity
34,593,328
Total Liabilities and Equity
$ 88,313,994
Income Statement
Revenue
$ 4,293,389
Expenses
3,694,051
Net Income
$ 599,338
(a)
Represents summarized financial information of Legacy Gateway JV LLC, a Class A office building located at 6860 N. Dallas Parkway, Plano, Texas 75024, which includes 100% of ownership interests in the limited liability company.
39
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Note 5. Derivative Investments
The following tables present the value of derivatives held at June 30, 2026 and the effect of derivatives held during the six months ended June 30, 2026, if any, along with the respective location in the consolidated financial statements.
Consolidated Statement of Assets and Liabilities
Assets
Liabilities
Derivatives
Location
Fair Value
Location
Fair Value
Equity Risk:
Purchased Option Contracts-
Exchange-Traded(a)
Investments in
securities,
at value 		$ 110,850 - $ -
Written Option Contracts-
Exchange-Traded(a)
- - Written option
contracts,
at value 		1,877,645
Foreign Currency Exchange Risk:
Forward Foreign Currency Exchange Contracts(b)
Unrealized appreciation 7,932 - -
Interest Rate Risk:
Interest Rate Swap Contracts(a)
Receivable for variation margin on interest rate
swap contracts 		10,533,461 (c) - -
(a)
Not subject to a master netting agreement or another similar arrangement.
(b)
Forward foreign currency exchange contracts executed with Brown Brothers Harriman are not subject to a master netting agreement or another similar arrangement.
(c)
Amount represents the cumulative net appreciation (depreciation) on interest rate swap contracts as reported on the Consolidated Schedule of Investments. The Consolidated Statement of Assets and Liabilities reflects the current day variation margin receivable from the broker.
40
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Consolidated Statement of Operations
Derivatives
Location
Realized
Gain (Loss) 		Change in
Unrealized
Appreciation
(Depreciation)
Equity Risk:
Purchased Option Contracts(a)
Net Realized and Unrealized Gain (Loss) $ (121,078 ) $ (14,660 )
Written Option Contracts
Net Realized and Unrealized Gain (Loss) 1,195,477 79,914
Foreign Currency Exchange Risk:
Forward Foreign Currency Exchange Contracts
Net Realized and Unrealized Gain (Loss) 120,885 18,158
Interest Rate Risk:
Interest Rate Swap Contracts
Net Realized and Unrealized Gain (Loss) 4,915,646 462,624
(a)
Purchased option contracts are included in net realized gain (loss) and change in unrealized appreciation (depreciation) on investments in securities.
The following summarizes the monthly average volume of the Fund's option contracts, interest rate swap contracts and forward foreign currency exchange contracts activity for the six months ended June 30, 2026:
Purchased
Option
Contracts(b) 		Written
Option
Contracts(b) 		Interest Rate
Swap Contracts 		Forward Foreign
Currency Exchange
Contracts
Average Notional Amount(a)
$ 5,222,385 $ 56,416,586 $ 524,714,286 $ 3,888,398
(a)
Average notional amount represents the average for all months in which the Fund had option contracts, interest rate swap contracts and forward foreign currency exchange contracts outstanding at month-end. For the period, this represents three months for purchased option contracts, six months for written option contracts, interest rate swap contracts and forward foreign currency exchange contracts.
(b)
Notional amount is calculated using the number of contracts multiplied by notional contract size multiplied by the underlying price.
41
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Note 6. Income Tax Information
As of June 30, 2026, the federal tax cost and net unrealized appreciation (depreciation) in value of investments held were as follows:
Cost of investments in securities for federal income tax purposes
$ 2,019,844,301
Gross unrealized appreciation on investments
$ 598,696,308
Gross unrealized depreciation on investments
(107,932,538 )
Net unrealized appreciation (depreciation) on investments
$ 490,763,770
Note 7. Rights Offering
On June 8, 2026, the Fund announced that its Board of Directors had approved the terms of the issuance of transferable rights (Rights) to the holders of the Fund's common stock (par value $0.001 per share), as of the record date, June 18, 2026 (the Record Date). As of the close of business on the Record Date, the Fund issued Rights to its common shareholders of record (Record Date Shareholders), entitling the holders of those Rights to subscribe (the Offer) for up to an aggregate of 44,839,181 shares of the Fund's common stock (the Common Shares). Record Date Shareholders received one Right for each outstanding Common Share owned on the Record Date. The Rights entitled their holders to purchase one new Common Share for every three Rights held (1-for-3). The Common Shares offered for subscription in the Offer are listed and trade on the New York Stock Exchange (NYSE) under the symbol "RQI." The investment manager agreed to pay all fees and expenses in connection with the Offer which were approximately $6,500,000.
The Offer expired at 5:00 p.m., Eastern Time, on July 15, 2026 (the "Expiration Date"). The subscription price pursuant to the Offer was equal to 90% of the Fund's net asset value per Common Share at the close of trading on the NYSE on the Expiration Date. The Fund received from the Offer gross proceeds of $153,678,466, for the issuance of 12,642,989 Common Shares. The Fund received the entire proceeds of the Offer since the investment manager agreed to pay the dealer manager fee and all other expenses related to the Offer.
Note 8. Borrowings
The Fund has entered into an amended and restated credit agreement (the credit agreement) with BNP Paribas Prime Brokerage International, Ltd. (BNPP) in which the Fund pays a monthly financing charge based on Secured Overnight Financing Rate (SOFR)-based variable rates. The commitment amount of the credit agreement is $860,000,000. The Fund also pays a fee of 0.45% per annum on any unused portion of the credit agreement, which is only charged when less than 80% of the commitment amount is outstanding. BNPP may not change certain terms of the credit agreement except upon 360 days' notice. The credit agreement does not have a set termination date, but can be terminated by the Fund upon 360 days' notice or by BNPP if the Fund violates certain conditions. The Fund is required to pledge portfolio securities and/or cash as collateral. If the
42
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement, necessitating the sale of portfolio securities at potentially inopportune times. The credit agreement also permits, subject to certain conditions, BNPP to rehypothecate portfolio securities pledged by the Fund up to the amount of the loan balance outstanding. The Fund continues to receive dividends and interest on rehypothecated securities. The Fund also has the right under the credit agreement to recall the rehypothecated securities from BNPP on demand. If BNPP fails to deliver the recalled security in a timely manner, the Fund will be compensated by BNPP for any fees or losses related to the failed delivery or, in the event a recalled security will not be returned by BNPP, the Fund, upon notice to BNPP, may reduce the loan balance outstanding by the amount of the recalled security failed to be returned.
As of June 30, 2026, the Fund had outstanding borrowings of $710,000,000 at a rate of 4.4%. The carrying value of the borrowings approximates fair value. The borrowings are classified as Level 2 within the fair value hierarchy. During the six months ended June 30, 2026, the Fund borrowed an average daily balance of $710,000,000 at a weighted average borrowing cost of 4.4%.
Note 9. Series A Cumulative Preferred Stock
On January 27, 2022, the Fund's wholly-owned REIT Subsidiary completed a private placement of 125 shares of 12.0% Series A Cumulative Non-Voting Preferred Stock (the Preferred Stock) for aggregate gross proceeds of $125,000. The Preferred Stock has a liquidation preference of $1,000 per share plus an amount equal to accrued but unpaid dividends (the Liquidation Preference). The Preferred Stock dividends are cumulative at a rate of 12.0% per annum and are redeemable under certain conditions by the REIT Subsidiary or subject to mandatory redemption upon default of certain coverage requirements at a redemption price equal to the Liquidation Preference.
Note 10. Capital Stock
The Fund is authorized to issue 300 million shares of common stock at a par value of $0.001 per share.
During the six months ended June 30, 2026, the Fund issued 86,102 shares of common stock at $1,144,658 for the reinvestment of dividends. During the year ended December 31, 2025, the Fund did not issue shares of common stock for the reinvestment of dividends.
On December 9, 2025, the Board of Directors approved the continuation of the delegation of its authority to management to effect repurchases, pursuant to management's discretion and subject to market conditions and investment considerations, of up to 10% of the Fund's common shares outstanding as of January 1, 2026 through December 31, 2026. There is no assurance that the Fund will repurchase shares in any particular amounts or at all.
During the six months ended June 30, 2026 and year ended December 31, 2025, the Fund did not effect any repurchases.
43
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Note 11. Other Risks
Market Price Discount from Net Asset Value Risk: Shares of closed-end investment companies frequently trade at a discount from their NAV. This characteristic is a risk separate and distinct from the risk that NAV could decrease as a result of investment activities. Whether investors will realize gains or losses upon the sale of the shares will depend not upon the Fund's NAV but entirely upon whether the market price of the shares at the time of sale is above or below the investor's purchase price for the shares. Because the market price of the shares is determined by factors such as relative supply of and demand for shares in the market, general market and economic conditions, and other factors beyond the control of the Fund, Fund shares may trade at, above or below NAV.
Common Stock Risk: The Fund may invest in common stocks. Common stocks are subject to special risks. Although common stocks have historically generated higher average returns than fixed-income securities over the long term, common stocks also have experienced significantly more volatility in returns. Common stocks may be more susceptible to adverse changes in market value due to issuer specific events or general movements in the equities markets. A drop in the stock market may depress the price of common stocks held by the Fund. Common stock prices fluctuate for many reasons, including changes to investors' perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or the occurrence of political or economic events affecting issuers. For example, an adverse event, such as an unfavorable earnings report, may depress the value of common stock in which the Fund has invested; the price of common stock of an issuer may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks held by the Fund. Also, common stock of an issuer in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. The common stocks in which the Fund will invest are typically subordinated to preferred securities, bonds and other debt instruments in a company's capital structure in terms of priority to corporate income and assets, and, therefore, will be subject to greater risk than the preferred securities or debt instruments of such issuers. In addition, common stock prices may be sensitive to rising interest rates as the costs of capital rise and borrowing costs increase.
Real Estate Market Risk: Since the Fund concentrates its assets in companies engaged in the real estate industry, an investment in the Fund will be closely linked to the performance of the real estate markets. Risks of investing in real estate securities include falling property values due to increasing vacancies, declining rents resulting from economic, legal, tax, political or technological developments, lack of liquidity, limited diversification, and sensitivity to certain economic factors such as interest-rate changes and market recessions. Real estate company prices also may drop because of the failure of borrowers to pay their loans and poor management, and residential developers, in particular, could be negatively impacted by falling home prices, slower mortgage origination and rising construction costs. The risks of investing in REITs are similar to those associated with direct investments in real estate securities.
REIT Risk: In addition to the risks of securities linked to the real estate industry, REITs are subject to certain other risks related to their structure and focus. REITs generally are dependent
44
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
upon management skills and may not be diversified. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. By investing in REITs through the Fund, a shareholder will bear expenses of the REITs in addition to expenses of the Fund. In addition, REITs could possibly fail to (i) qualify for favorable tax treatment under applicable tax law, or (ii) maintain their exemptions from registration under the 1940 Act. Various factors may also adversely affect a borrower's or a lessee's ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments.
Small- and Medium-Sized Companies Risk: Companies in the real estate industry tend to be small- to medium-sized companies in relation to the equity markets as a whole. There may be less trading in a smaller company's stock, which means that buy and sell transactions in that stock could have a larger impact on the stock's price than is the case with larger company stocks. Smaller companies also may have fewer lines of business so that changes in any one line of business may have a greater impact on a smaller company's stock price than is the case for a larger company. Further, smaller company stocks may perform differently in different cycles than larger company stocks. Accordingly, real estate company shares can, and at times will, perform differently than large company stocks.
Preferred Securities Risk: Preferred securities are subject to credit risk, which is the risk that a security will decline in price, or the issuer of the security will fail to make dividend, interest or principal payments when due, because the issuer experiences a decline in its financial status. Preferred securities are also subject to interest rate risk and may decline in value because of changes in market interest rates. The Fund may be subject to a greater risk of rising interest rates than would normally be the case in an environment of low interest rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. In addition, an issuer may be permitted to defer or omit distributions. Preferred securities are also generally subordinated to bonds and other debt instruments in a company's capital structure. During periods of declining interest rates, an issuer may be able to exercise an option to redeem (call) its issue at par earlier than scheduled, and the Fund may be forced to reinvest in lower yielding securities. Certain preferred securities may be substantially less liquid than many other securities, such as common stocks. Generally, preferred security holders have no voting rights with respect to the issuing company unless certain events occur. Certain preferred securities may give the issuers special redemption rights allowing the securities to be redeemed prior to a specified date if certain events occur, such as changes to tax or securities laws.
Derivatives and Hedging Transactions Risk: The Fund's use of derivatives, including for the purpose of hedging interest rate or foreign currency risks, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Among the risks presented are counterparty risk, financial leverage risk, liquidity risk, OTC trading risk and tracking risk. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.
45
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Options Risk: Gains on options transactions depend on the investment manager's ability to predict correctly the direction of stock prices, indexes, interest rates, and other economic factors, and unanticipated changes may cause poorer overall performance for the Fund than if it had not engaged in such transactions. A rise in the value of the security or index underlying a call option written by the Fund exposes the Fund to possible loss or loss of opportunity to realize appreciation in the value of any portfolio securities underlying or otherwise related to the call option. By writing a put option, the Fund assumes the risk of a decline in the underlying security or index. There can be no assurance that a liquid market will exist when the Fund seeks to close out an option position, and for certain options not traded on an exchange no market usually exists. Trading could be interrupted, for example, because of supply and demand imbalances arising from a lack of either buyers or sellers, or an options exchange could suspend trading after the price has risen or fallen more than the maximum specified by the exchange.
Although the Fund may be able to offset to some extent any adverse effects of being unable to liquidate an option position, that Fund may experience losses in some cases as a result of such inability, may not be able to close its position and, in such an event would be unable to control its losses.
Leverage Risk: The use of leverage is a speculative technique and there are special risks and costs associated with leverage. The NAV of the Fund's shares may be reduced by the issuance and ongoing costs of leverage. So long as the Fund is able to invest in securities that produce an investment yield that is greater than the total cost of leverage, the leverage strategy will produce higher current net investment income for the shareholders. On the other hand, to the extent that the total cost of leverage exceeds the incremental income gained from employing such leverage, shareholders would realize lower net investment income. In addition to the impact on net income, the use of leverage will have an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an up market, leverage will typically generate greater capital appreciation than if the Fund were not employing leverage. Conversely, in down markets, the use of leverage will generally result in greater capital depreciation than if the Fund had been unlevered. To the extent that the Fund is required or elects to reduce its leverage, the Fund may incur applicable breakage fees under the Fund's credit arrangement and may need to liquidate investments, including under adverse economic conditions which may result in capital losses potentially reducing returns to shareholders. The use of leverage also results in the investment management fees payable to the investment manager being higher than if the Fund did not use leverage and can increase operating costs, which may reduce total return. There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.
Private Real Estate Risk: The Fund's investments in private real estate include additional risks. For example, lease defaults, terminations by one or more tenants or landlord-tenant disputes may reduce the Fund's revenues and net income. Any of these situations may result in extended periods during which there is a significant decline in revenues or no revenues generated by a property. If this occurred, it could adversely affect the Fund's results of operations.
The Fund's investments in private real estate are expected to be substantially less liquid than many other securities, such as common stocks or U.S. government securities.
46
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
REIT Subsidiary Risk: Investments in a REIT Subsidiary are subject to risks associated with the direct ownership of real estate. A REIT Subsidiary, and therefore the Fund, may be affected by changes in the real estate markets generally as well as changes in the values of any properties owned by a REIT Subsidiary or securing any mortgages owned by a REIT Subsidiary (which changes in value could be influenced by market conditions for real estate in general or issues related to the particular property). If a REIT Subsidiary's underlying assets are concentrated in properties used by a particular industry, it will be subject to risks associated with such industry.
By investing through a REIT Subsidiary, the Fund bears the fees and expenses of the REIT Subsidiary (including, among other things operating costs, transaction expenses, administrative and custody fees, legal expenses and custody expenses). Thus, investing through a REIT Subsidiary may cause the Fund to be subject to higher operating expenses than if it invested directly.
Real Estate Limited Liability Company Risk: The Fund through a REIT subsidiary may invest in real estate limited liability companies with third parties. The Fund may also make investments in partnerships or other co-ownership arrangements or participations. Such investments may involve risks not otherwise present with other methods of investment, which include risks associated with having a limited liability company partner, such as the real estate limited liability company partner becoming insolvent or bankrupt, engaging in fraud or other misconduct or having economic or business interests or goals that conflict with the Fund's business interest or goals. Also, the terms of the limited liability company agreement could restrict the Fund's ability to sell or transfer its interest to a third party or could cause the Fund to sell its interest or acquire its partner's interest at a time when the Fund otherwise would not have initiated such a transaction.
In addition, disputes between the Fund and its real estate limited liability company partners may result in litigation or arbitration that would increase the Fund's expenses and prevent the Fund's officers and trustees from focusing their time and efforts on the Fund's business. Any of the above might subject the Fund to liabilities and thus reduce its returns on the investment with that real estate limited liability company partner.
Market Disruption and Geopolitical Risk: Geopolitical and market events (including armed conflicts, terrorism, natural disasters, public health emergencies, trade disputes, tariffs, sanctions, and political or economic instability) can cause significant volatility in global markets and may adversely affect the Fund's investments. Disruptions to supply chains, sharp movements in commodity prices, and changes in investor sentiment or credit conditions may negatively impact issuers, sectors, or entire regions, even those not directly involved in the originating event.
Recent examples include the ongoing conflicts in Ukraine and the Middle East and increasing political polarization around issues such as trade policy, monetary policy and the U.S. debt ceiling. The rapid development and regulation of artificial intelligence technologies may also introduce uncertainty. The scope, severity, and duration of these risks are difficult to predict, but they could materially reduce the value of the Fund's investments.
Regulatory Risk: Legal and regulatory developments may adversely affect the Fund. The regulatory environment for the Fund is evolving, and changes in the regulation of investment funds and other financial institutions or products (such as banking or insurance products), and their trading activities and capital markets, or a regulator's disagreement with the Fund's interpretation of
47
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
the application of certain regulations, may adversely affect the ability of the Fund to pursue its investment strategy, its ability to obtain leverage and financing, and the value of investments held by the Fund. The U.S. government has proposed and adopted multiple regulations that could have a long-lasting impact on the Fund and on the fund industry in general. These regulations or any laws and regulations that may be adopted in the future may restrict the Fund's ability to engage in transactions or raise additional capital and/or increase overall expenses of the Fund.
Additional legislative or regulatory actions may alter or impair certain market participants' ability to utilize certain investment strategies and techniques.
The Fund and the instruments in which it invests may be subject to new or additional regulatory constraints in the future. These regulations and actions may adversely affect both the Fund and the instruments in which the Fund invests and its ability to execute its investment strategy. For example, climate change regulation (such as decarbonization legislation, other mandatory controls to reduce emissions of greenhouse gases, or related disclosure requirements) could significantly affect the Fund or its investments by, among other things, increasing compliance costs or underlying companies' operating costs and capital expenditures. Similarly, regulatory developments in other countries may have an unpredictable and adverse impact on the Fund.
Cybersecurity Risk: With the increased use of technologies such as the Internet and artificial intelligence, including machine learning technology and generative artificial intelligence such as ChatGPT, and the dependence on computer systems to perform necessary business functions, the Fund and its service providers (including the investment manager), and their own service providers, may be susceptible to operational and information security risks resulting from cyber-attacks and/or other technological malfunctions. In general, cyber-attacks are deliberate, but unintentional events may have similar effects. Cyber-attacks include, among others, stealing or corrupting data maintained online or digitally, preventing legitimate users from accessing information or services on a website or company system, misappropriating or releasing confidential information without authorization (including personal data), gaining unauthorized access to digital systems for purposes of misappropriating assets and causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service. New ways to carry out cyber-attacks continue to develop. There may be an increased risk of cyber-attacks during periods of geopolitical or military conflict, and geopolitical tensions may increase the scale and sophistication of deliberate cyber security attacks, particularly those from nation-states or from entities with nation-state backing. Successful cyber-attacks against, or security breakdowns of, the Fund, the investment manager, or a custodian, transfer agent, or other affiliated or third-party service provider may adversely affect the Fund or its shareholders.
Each of the Fund and the investment manager may have limited ability to detect, prevent or mitigate cyber-attacks or security or technology breakdowns affecting the Fund's third-party service providers. While the Fund has established business continuity plans and systems designed to detect, prevent or reduce the impact of cyber-attacks, such plans and systems are subject to inherent limitations.
48
Cohen & Steers Quality Income Realty Fund, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)-(Continued)
Note 12. Operating Segments
An operating segment is defined in ASC Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The executive committee of the Fund's investment manager and the Fund's chief executive officer and chief financial officer act as the Fund's CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the Fund's long-term strategic asset allocation is pre-determined in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the Fund's portfolio managers as a team. The financial information in the form of the Fund's total returns, expense ratios, subscriptions and redemptions, which are used by the CODM to assess the segment's performance versus the Fund's comparative benchmarks and to make resource allocation decisions for the Fund's single segment, is consistent with that presented within the Fund's consolidated financial statements.
Note 13. Other
In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
Note 14. Subsequent Events
Management has evaluated events and transactions occurring after June 30, 2026 through the date that the consolidated financial statements were issued, and has determined that no additional disclosure in the consolidated financial statements is required.
49
Cohen & Steers Quality Income Realty Fund, Inc.
PROXY RESULTS (Unaudited)
The Fund's shareholders voted on the following proposals at the annual meeting held on April 22, 2026. The description of each proposal and number of shares voted are as follows:
Common Shares Shares Voted
For 		Authority
Withheld
To elect Directors:
Michael G. Clark
92,744,502 8,381,492
Dean A. Junkans
92,584,832 8,541,163
Ramona Rogers-Windsor
98,430,405 2,695,589
50
Cohen & Steers Quality Income Realty Fund, Inc.
(The following pages are unaudited)
REINVESTMENT PLAN
We urge shareholders who want to take advantage of this plan and whose shares are held in 'Street Name' to consult your broker as soon as possible to determine if you must change registration into your own name to participate.
OTHER INFORMATION
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling (866) 227-0757, (ii) on our website at cohenandsteers.com or (iii) on the U.S. Securities and Exchange Commission's (SEC) website at http://www.sec.gov. In addition, the Fund's proxy voting record for the most recent 12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request, by calling (866) 227-0757 or (ii) on the SEC's website at http://www.sec.gov.
Disclosures of the Fund's complete holdings are required to be made monthly on Form N-PORT, with every third month made available to the public by the SEC 60 days after the end of the Fund's fiscal quarter. The Fund's Form N-PORT is available (i) without charge, upon request, by calling (866) 227-0757 or (ii) on the SEC's website at http://www.sec.gov.
Please note that distributions paid by the Fund to shareholders are subject to recharacterization for tax purposes and are taxable up to the amount of the Fund's net investment company taxable income and net realized gains. Distributions in excess of the Fund's net investment company taxable income and net realized gains are a return of capital distributed from the Fund's assets. To the extent this occurs, the Fund's shareholders of record will be notified of the estimated amount of capital returned to shareholders for each such distribution and this information will also be available at cohenandsteers.com. The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year. Distributions of capital decrease the Fund's total assets and, therefore, could have the effect of increasing the Fund's expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.
Notice is hereby given in accordance with Rule 23c-1 under the 1940 Act that the Fund may purchase, from time to time, shares of its common stock in the open market.
Change to the Fund's Chief Compliance Officer
On June 16, 2026, the Board of Directors approved the appointment of Nargis Hilal as the Chief Compliance Officer (CCO) of the Fund effective July 3, 2026. Ms. Hilal previously served as the Fund's Deputy CCO.
51
Cohen & Steers Quality Income Realty Fund, Inc.
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
The Board of Directors of the Fund (the Board), including a majority of the Directors who are not parties to the Fund's investment management agreement (the Management Agreement), or interested persons of any such party (the Independent Directors), has the responsibility under the Investment Company Act of 1940 to approve the Fund's Management Agreement for its initial two year term and its continuation annually thereafter at a meeting of the Board called for the purpose of voting on the approval or continuation. The Management Agreement was discussed at a meeting of the Independent Directors, in their capacity as the Contract Review Committee, held on June 2, 2026, and at a meeting of the full Board held on June 16, 2026. The Independent Directors, in their capacity as the Contract Review Committee, also discussed the Management Agreement in executive sessions on June 2, 15 and 16, 2026. At the meeting of the full Board on June 16, 2026, the Management Agreement was unanimously continued for a term ending June 30, 2027, by the Board, including the Independent Directors. The Independent Directors were represented by independent counsel who assisted them in their deliberations during the meetings and executive sessions.
In considering whether to continue the Management Agreement, the Board reviewed materials provided by an independent data provider, which included, among other items, fee, expense and performance information compared to peer funds (the Peer Funds and, collectively with the Fund, the Peer Group) and performance comparisons to a larger category universe; summary information prepared by the Fund's investment manager (the Investment Manager); and a memorandum from Fund counsel outlining the legal duties of the Board. The Board also spoke directly with a representative of the independent data provider and met with investment management personnel. In addition, the Board considered information provided from time to time by the Investment Manager throughout the year at meetings of the Board, including presentations by portfolio managers relating to the investment performance of the Fund and the investment strategies used in pursuing the Fund's objective. The Board also considered information provided by the Investment Manager in response to a request for information submitted by counsel to the Independent Directors, on behalf of the Independent Directors, as well as information provided by the Investment Manager in response to a supplemental request. In particular, the Board considered the following:
(i) The nature, extent and quality of services to be provided by the Investment Manager: The Board reviewed the services that the Investment Manager provides to the Fund, including, but not limited to, making the day-to-day investment decisions for the Fund, placing orders for the investment and reinvestment of the Fund's assets, furnishing information to the Board regarding the Fund's portfolio, providing individuals to serve as Fund officers, managing the Fund's debt leverage level, and generally managing the Fund's investments in accordance with the stated policies of the Fund. The Board also discussed with officers and portfolio managers of the Fund the types of transactions conducted on behalf of the Fund. Additionally, the Board took into account the services provided by the Investment Manager to its other funds and accounts, including those that have investment objectives and strategies similar to those of the Fund. The Board also considered the education, background and experience of the Investment Manager's personnel, particularly noting the potential benefit that the portfolio managers' work experience and favorable reputation can have on the Fund. The Board further noted the Investment Manager's ability to attract qualified and
52
Cohen & Steers Quality Income Realty Fund, Inc.
experienced personnel. The Board also considered the administrative services provided by the Investment Manager, including compliance and accounting services. After consideration of the above factors, among others, the Board concluded that the nature, extent and quality of services provided by the Investment Manager are satisfactory and appropriate.
(ii) Investment performance of the Fund and the Investment Manager: The Board considered the investment performance of the Fund compared to Peer Funds and compared to its benchmarks. The Board considered that, on a net asset value (NAV) basis, the Fund outperformed the Peer Group medians for the one-, five- and ten-year periods and represented the Peer Group median for the three-year period ended March 31, 2026, ranking the Fund 2 out of 5 peers, 1 out of 5 peers, 1 out of 5 peers and 3 out of 5 peers, respectively. The Board noted that, on a NAV basis, the Fund outperformed the linked blended benchmark and the linked benchmark during the three-, five, and ten-year periods and underperformed for the one-year period ended March 31, 2026. The Board engaged in discussions with the Investment Manager regarding the contributors to and detractors from the Fund's performance during the period, as well as the impact of leverage on the Fund's performance. The Board also considered supplemental information provided by the Investment Manager, including a narrative summary of factors affecting performance and the Investment Manager's performance in managing similarly managed funds and accounts. The Board determined that Fund performance, in light of all the considerations noted above, supported the continuation of the Management Agreement.
(iii) Cost of the services to be provided and profits to be realized by the Investment Manager from the relationship with the Fund: The Board considered the contractual and actual management fees paid by the Fund as well as the Fund's total expense ratio. As part of its analysis, the Board considered the fee and expense analyses provided by the independent data provider. The Board noted the Fund's actual management fee at the managed asset level was in-line with the Peer Group median, ranking 4 out of 5 peers. The Board also noted that the Fund's actual management fee at the common asset level was higher than the Peer Group median, ranking 5 out of 5 peers. The Board noted that the Fund's total expense ratio, including investment-related expenses at the managed asset level was in-line with the Peer Group median, ranking 4 out of 5 peers. The Fund's total expense ratio, including investment-related expenses at the common asset level was higher than the Peer Group median, ranking 4 out of 5 peers. The Board also noted that the Fund's total expense ratios excluding investment-related expenses at both managed and common asset levels were lower than the Peer Group medians, ranking 2 out of 5 peers for each. The Board considered the impact of leverage levels on the Fund's fees and expenses at managed and common asset levels. The Board concluded that, in light of market conditions, the Fund's current expense structure was satisfactory.
The Board also reviewed information regarding the profitability to the Investment Manager of its relationship with the Fund. The Board considered the level of the Investment Manager's profits and whether the profits were reasonable for the Investment Manager. The Board took into consideration other benefits to be derived by the Investment Manager in connection with the Management Agreement, noting particularly the research and related services, within the meaning of Section 28(e) of the Securities Exchange Act of 1934, that the Investment Manager receives by allocating the Fund's brokerage transactions. The Board further considered that the Investment Manager continues to reinvest profits back in the business, including upgrading and/or
53
Cohen & Steers Quality Income Realty Fund, Inc.
implementing new trading, compliance and accounting systems, and by adding investment personnel to the portfolio management teams. The Board also considered the administrative services provided by the Investment Manager and the associated administration fee paid to the Investment Manager for such services under the Administration Agreement. The Board determined that the services received under the Administration Agreement are beneficial to the Fund. The Board concluded that the profits realized by the Investment Manager from its relationship with the Fund were reasonable and consistent with the Investment Manager's fiduciary duties.
(iv) The extent to which economies of scale would be realized as the Fund grows and whether fee levels would reflect such economies of scale: The Board noted that, as a closed-end fund, the Fund would not be expected to have inflows of capital that might produce increasing economies of scale. The Board determined that, given the Fund's closed-end structure, there were no significant economies of scale that were not already being shared with shareholders. In considering economies of scale, the Board also noted, as discussed above in (iii), that the Investment Manager continues to reinvest profits back in the business.
(v) Comparison of services to be rendered and fees to be paid to those under other investment management contracts, such as contracts of the same and other investment advisors or other clients: As discussed above in (iii), the Board compared the fees paid under the Management Agreement to those under other investment management contracts of other investment advisors managing Peer Funds. The Board also compared the services rendered and fees paid under the Management Agreement to fees paid, including the ranges of such fees, under the Investment Manager's other fund management agreements and advisory contracts with institutional and other clients with similar investment mandates, noting that the Investment Manager provides more services to the Fund than it does to institutional or subadvised accounts. The Board also considered the entrepreneurial risk and financial exposure assumed by the Investment Manager in developing and managing the Fund that the Investment Manager does not have with institutional and other clients and other differences in the management of registered investment companies and institutional accounts. The Board determined that on a comparative basis the fees under the Management Agreement were reasonable in relation to the services provided.
No single factor was cited as determinative to the decision of the Board, and each Director may have assigned different weights to the various factors. Rather, after weighing all of the considerations and conclusions discussed above, the Board, including the Independent Directors, unanimously approved the continuation of the Management Agreement.
54
Cohen & Steers Quality Income Realty Fund, Inc.
Cohen & Steers Privacy Policy
Facts What Does Cohen & Steers Do With Your Personal Information?
Why? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
•
Social Security number and account balances
•
Transaction history and account transactions
•
Purchase history and wire transfer instructions
How? All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Cohen & Steers chooses to share; and whether you can limit this sharing.
Reasons we can share your personal information Does Cohen & Steers
share? 		Can you limit this
sharing?
For our everyday business purposes-
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or reports to credit bureaus
Yes No
For our marketing purposes-
to offer our products and services to you
Yes No
For joint marketing with other financial companies- No We don't share
For our affiliates' everyday business purposes-
information about your transactions and experiences
No We don't share
For our affiliates' everyday business purposes-
information about your creditworthiness
No We don't share
For our affiliates to market to you- No We don't share
For non-affiliates to market to you- No We don't share
Questions?  Call (866) 227-0757
55
Cohen & Steers Quality Income Realty Fund, Inc.
Cohen & Steers Privacy Policy-(Continued)
Who we are
Who is providing this notice? Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers Japan Limited, Cohen & Steers UK Limited, Cohen & Steers Ireland Limited, Cohen & Steers Singapore Private Limited, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds and Cohen & Steers Registered Funds (collectively, Cohen & Steers).
What we do
How does Cohen & Steers protect my personal information? To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We restrict access to your information to those employees who need it to perform their jobs, and also require companies that provide services on our behalf to protect your information.
How does Cohen & Steers collect my personal information?
We collect your personal information, for example, when you:
•
Open an account or buy securities from us
•
Provide account information or give us your contact information
•
Make deposits or withdrawals from your account
We also collect your personal information from other companies.
Why can't I limit all sharing?
Federal law gives you the right to limit only:
•
sharing for affiliates' everyday business purposes-information about your creditworthiness
•
affiliates from using your information to market to you
•
sharing for non-affiliates to market to you
State law and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates
Companies related by common ownership or control. They can be financial and nonfinancial companies.
•
Cohen & Steers does not share with affiliates.
Non-affiliates
Companies not related by common ownership or control. They can be financial and nonfinancial companies.
•
Cohen & Steers does not share with non-affiliates.
Joint marketing
A formal agreement between non-affiliated financial companies that together market financial products or services to you.
•
Cohen & Steers does not jointly market.
56
Cohen & Steers Quality Income Realty Fund, Inc.
Cohen & Steers Open-End Mutual Funds
COHEN & STEERS REALTY SHARES
• Designed for investors seeking total return, investing primarily in U.S. real estate securities
• Symbols: CSJAX, CSJCX, CSJIX, CSRSX, CSJRX, CSJZX
COHEN & STEERS
REAL ESTATE SECURITIES FUND
• Designed for investors seeking total return, investing primarily in U.S. real estate securities
• Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX, CSZIX
COHEN & STEERS
INSTITUTIONAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities
• Symbol: CSRIX
COHEN & STEERS GLOBAL REALTY SHARES
• Designed for investors seeking total return, investing primarily in global real estate equity securities
• Symbols: CSFAX, CSFCX, CSSPX, GRSRX, CSFZX
COHEN & STEERS
INTERNATIONAL REALTY FUND
• Designed for investors seeking total return, investing primarily in international (non-U.S.) real estate securities
• Symbols: IRFAX, IRFCX, IRFIX, IRFRX, IRFZX
COHEN & STEERS REAL ASSETS FUND
• Designed for investors seeking total return and the maximization of real returns during inflationary environments by investing primarily in real assets
• Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZX
COHEN & STEERS
PREFERRED SECURITIES AND INCOME FUND
• Designed for investors seeking total return (high current income and capital appreciation), investing primarily in preferred and debt securities issued by U.S. and non-U.S. companies
• Symbols: CPXAX, CPXCX, CPXFX, CPXIX, CPRRX, CPXZX
COHEN & STEERS
SHORT DURATION PREFERRED AND INCOME FUND
• Designed for investors seeking high current income and capital preservation by investing in short-duration preferred and other income securities issued by U.S. and non-U.S. companies
• Symbols: LPXAX, LPXCX, LPXFX, LPXIX, LPXRX, LPXZX
COHEN & STEERS
GLOBAL INFRASTRUCTURE FUND
• Designed for investors seeking total return, investing primarily in global infrastructure securities
• Symbols: CSUAX, CSUCX, CSUIX, CSURX, CSUZX
Distributed by Cohen & Steers Securities, LLC.
Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers U.S. registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information can be obtained by calling (800) 330-7348 or by visiting cohenandsteers.com. Please read the summary prospectus and prospectus carefully before investing.
57
Cohen & Steers Quality Income Realty Fund, Inc.
OFFICERS AND DIRECTORS
Joseph M. Harvey
Director and Chair
Adam M. Derechin
Director
Michael G. Clark
Director
George Grossman
Director
Dean A. Junkans
Director
Gerald J. Maginnis
Director
Jane F. Magpiong
Director
Daphne L. Richards
Director
Ramona Rogers-Windsor
Director
James Giallanza
President and Chief Executive Officer
Albert Laskaj
Chief Financial Officer
Steven Frank
Treasurer
Dana A. DeVivo
Secretary and Chief Legal Officer
Nargis Hilal
Chief Compliance Officer and Vice President
Yigal D. Jhirad
Vice President
Jason A. Yablon
Vice President
Mathew Kirschner
Vice President
KEY INFORMATION
Investment Manager and Administrator
Cohen & Steers Capital Management, Inc.
1166 Avenue of the Americas, 30th Floor New York, NY 10036
(212) 832-3232
Co-administrator and Custodian
State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
Transfer Agent
Computershare
150 Royall Street
Canton, MA 02021
(866) 227-0757
Legal Counsel
Ropes & Gray, LLP
1211 Avenue of the Americas
New York, NY 10036
New York Stock Exchange Symbol: RQI
Website: cohenandsteers.com
This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares. Performance data quoted represent past performance. Past performance is no guarantee of future results and your investment may be worth more or less at the time you sell your shares.
58
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Semi-Annual Report June 30, 2026
Cohen & Steers
Quality Income
Realty Fund (RQI)
RQISAR

(b)

Notice of Internet Availability of Shareholder Report(s)

1

COHEN & STEERS ID:

XXXXX XXXXX XXXXX XXXXX          

Important Fund Report(s) Now Available Online and In Print by Request. Annual and Semi-Annual Reports contain important information about the fund, including its holdings and financials. we encourage you to review the report(s) at the website below:

https://www.cohenandsteers.com/funds/fund-literature

Cohen & Steers Quality Income Realty Fund, Inc.

Request a printed/email report at no charge and/or elect to receive paper reports in the future, by calling or visiting (otherwise you will not receive a paper/email report):

1-866-345-5954

www.FundReports.com

2

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a)

Included in Item 1 above.

(b)

Not applicable.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

Not applicable.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Not applicable.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

Included in Item 1 above.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

(a)

Not applicable.

(b)

The Registrant has not had any change in the portfolio managers identified in response to paragraph (a)(1) of this item in the Registrant's most recent annual report on Form N-CSR.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's board of directors implemented after the Registrant last provided disclosure in response to this Item.

Item 16. Controls and Procedures.

(a)

The Registrant's principal executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b)

There were no changes in the Registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a) For the fiscal year ended December 31, 2025, the Registrant had the following dollar amounts of income and fees/compensation related to its securities lending activities:

Total
Gross income from securities lending activities: $1,315,640

Fees and/or compensation for securities lending activities and related services

Fees paid to securities lending agent from a revenue split:

-

Fees paid for cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split:

-

Administrative fees that are not included in the revenue split:

-

Indemnification fee not included in the revenue split:

-

Rebates paid to borrowers:

-

Other fees relating to the securities lending program not included in the revenue split:

$1,315,640
Aggregate fees/compensation for securities lending activities and related services: $1,315,640
Net income from securities lending activities: $0

(b) During the Registrant's most recent fiscal year ended December 31, 2025, BNP Paribas Prime Brokerage International, Limited ("BNPP") served as the Registrant's securities lending agent.

In connection with the use of a Credit Facility (the "BNP Credit Facility") with BNPP, the Registrant permits BNPP, subject to certain conditions, to rehypothecate (i.e., lend to other counterparties) portfolio securities pledged by the Registrant.

As a securities lending agent, BNPP is responsible for the implementation and administration of the Registrant's securities lending activities pursuant to the rehypothecation component of the BNP Credit Facility. BNPP, as a general matter, performs various services, including the following:

•

Locating borrowers;

•

Monitoring daily the value of the loaned securities and collateral (i.e., the collateral posted by the party borrowing);

•

Negotiation of loan terms;

•

Selection of securities to be loaned;

•

Recordkeeping and account servicing;

•

Monitoring of dividend activity and material proxy votes relating to loaned securities, and;

•

Arranging for return of loaned securities to the Registrant at loan termination.

The Registrant does not compensate BNPP for its securities lending related services directly. Instead, the Registrant received a reduction in the interest rate charged under the BNP Credit Facility.

Item 18. Recovery of Erroneously Awarded Compensation.

Not applicable.

Item 19. Exhibits.

(a)(1) Not applicable.

(a)(2) Not applicable.

(a)(3) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a- 2(b) under the Investment Company Act of 1940.

(c) Registrant's notices to shareholders pursuant to Registrant's exemptive order granting an exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder regarding distributions pursuant to the Registrant's Managed Distribution Plan.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

COHEN & STEERS QUALITY INCOME REALTY FUND, INC.

By: /s/ James Giallanza

Name:   James Giallanza

Title:    Principal Executive Officer

    (President and Chief Executive Officer)

Date: September 4, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ James Giallanza

Name:   James Giallanza

Title:    Principal Executive Officer

    (President and Chief Executive Officer)

By: /s/ Albert Laskaj

Name:   Albert Laskaj

Title:    Principal Financial Officer

    (Chief Financial Officer)

Date: September 4, 2026
Cohen & Steers Quality Income Realty Fund Inc. published this content on September 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on September 04, 2026 at 15:27 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]