0001866874 2026-01-01 2026-06-30 0001866874 csreoif:CommonStockRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:ConcentrationRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:ContingentCapitalSecuritiesRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:CreditAndBelowInvestmentGradeSecuritiesRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:CybersecurityRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:DerivativesAndHedgingTransactionsRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:ForeignCurrencyRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:ForeignNonUSAndEmergingMarketSecuritiesRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:InvestingInRealEstateSecuritiesRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:LeverageRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:LiquidityRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:MarketDisruptionAndGeopoliticalRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:MarketPriceDiscountFromNetAssetValueRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:NonDiversifiedStatusRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:OptionsRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:PreferredSecuritiesRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:RealEstateMarketRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:RegulatoryRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:REITRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:Rule144ASecuritiesRiskMember 2026-01-01 2026-06-30 0001866874 csreoif:SmallAndMediumSizedCompaniesRiskMember 2026-01-01 2026-06-30 0001866874 2026-06-30 iso4217:USD shares pure shares false 0001866874 N-CSRS Cohen & Steers Real Estate Opportunities and Income Fund 16722406 17.14 15.74 -0.0817 The Fund’s primary investment objective is high current income. The Fund’s secondary investment objective is capital appreciation. <div style="margin-top:4pt;margin-bottom:0pt;margin-left:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">The Fund is authorized to issue an unlimited number of shares of beneficial interest. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">During the six months ended June 30, 2026 and year ended December 31, 2025, the Fund did not issue shares of common stock for the reinvestment of dividends. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">On December 9, 2025, the Board of Trustees 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">During the six months ended June 30, 2026 and year ended December 31, 2025, the Fund did not effect any repurchases. </span></div> <div style="margin-top:18pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-weight:bold">Note 8. Other Risks </span></span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Market Price Discount from Net Asset Value Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Non‑Diversified Status Risk:</span> Because the Fund, as a non‑diversified investment company, may invest in a smaller number of individual issuers than a diversified investment company, an investment in the Fund presents greater risk to you than an investment in a diversified company. </span></div><div style="margin-top:0pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Investing in Real Estate Securities Risk:</span> Risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties, and differences in accounting standards. Some international securities may represent small- and medium‑sized companies, which may be more susceptible to price volatility and less liquidity than larger companies. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Common Stock Risk</span>: 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Real Estate Market Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">REIT Risk:</span> 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 upon management skills and may not be diversified. REITs are also subject to heavy cash flow </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">dependency, defaults by borrowers and self-liquidation. 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. The above 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Small- and Medium‑Sized Companies Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Preferred Securities Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Contingent Capital Securities Risk:</span> Contingent capital securities (sometimes referred to as “CoCos”) are debt or preferred securities with loss absorption characteristics built into the terms of the security, for example, a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuer’s capital ratio falling below a certain level. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence worsening the investor’s standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security (potentially to zero) under such circumstances. In March 2023, a Swiss regulator required a write-down of outstanding CoCos to zero notwithstanding the fact that the equity shares continued to exist and have economic value. It is currently unclear </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">whether regulators of issuers in other jurisdictions will take similar actions. Notwithstanding these risks, the Fund intends to continue to invest in CoCos issued by Swiss companies and by companies in other jurisdictions. In addition, most CoCos are considered to be high yield or “junk” securities and are therefore subject to the risks of investing in below investment-grade securities. Finally, CoCo issuers can, at their discretion, suspend dividend distributions on their CoCo securities and are more likely to do so in response to negative economic conditions and/or government regulation. Omitted distributions are typically non‑cumulative and will not be paid on a future date. Any omitted distribution may negatively impact the returns or distribution rate of the Fund. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Concentration Risk:</span> Because the Fund invests at least 25% of its managed assets in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, loan concentration and competition. In addition, the Fund will also be subject to the risks of investing in the individual industries and securities that comprise the financials sector, including the bank, diversified financials, real estate (including REITs) and insurance industries. To the extent that the Fund focuses its investments in other sectors or industries, such as (but not limited to) energy, industrials, utilities, pipelines, health care and telecommunications, the Fund will be subject to the risks associated with these particular sectors and industries. These sectors and industries may be adversely affected by, among others, changes in government regulation, world events and economic conditions. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Credit and Below-Investment-Grade Securities Risk:</span> Preferred securities may be rated below-investment-grade or may be unrated. Below-investment-grade securities, or equivalent unrated securities, which are commonly known as “high-yield bonds” or “junk bonds,” generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. It is reasonable to expect that any adverse economic conditions could disrupt the market for lower-rated securities, have an adverse impact on the value of those securities and adversely affect the ability of the issuers of those securities to repay principal and interest on those securities. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Leverage Risk:</span> 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 </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Liquidity Risk:</span> Liquidity risk is the risk that particular investments of the Fund may become difficult to sell or purchase. The market for certain investments may become less liquid or illiquid due to adverse changes in the conditions of a particular issuer or due to adverse market or economic conditions. In addition, dealer inventories of certain securities, which provide an indication of the ability of dealers to engage in “market making,” are at, or near, historic lows in relation to market size, which has the potential to increase price volatility in the fixed income markets in which the Fund invests. Federal banking regulations may also cause certain dealers to reduce their inventories of certain securities, which may further decrease the Fund’s ability to buy or sell such securities. As a result of this decreased liquidity, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on performance. Further, transactions in less liquid or illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Foreign (Non‑U.S.) and Emerging Market Securities Risk:</span> The Fund directly purchases securities of foreign issuers. Risks of investing in foreign securities include currency risks, future political and economic developments and possible imposition of foreign withholding taxes on income or proceeds payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Foreign Currency Risk:</span> Although the Fund will report its NAV and pay dividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interest payments in foreign currencies. Therefore, the Fund’s investments in foreign securities will be subject to foreign currency risk, which means that the Fund’s NAV could decline solely as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. The Fund may, but is not required to, engage in various investments that are designed to hedge the Fund’s foreign currency risks, and such investments are subject to the risks described under “Derivatives and Hedging Transactions Risk” below. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Derivatives and Hedging Transactions Risk:</span> 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. </span></div><div style="margin-top:0pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Rule 144A Securities Risk</span>: Rule 144A Securities are considered restricted securities because they are not registered for sale to the general public and may only be resold to certain qualified institutional buyers. Institutional markets for Rule 144A Securities that exist or may develop may provide both readily ascertainable values for such securities and the ability to promptly sell such securities. However, if there are an insufficient number of qualified institutional buyers interested in purchasing Rule 144A Securities held by the Fund, the Fund will be subject to liquidity risk and thus may not be able to sell the Rule 144A Securities at a desirable time or price. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Options Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Market Disruption and Geopolitical Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Regulatory Risk:</span> 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 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 </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">Additional legislative or regulatory actions may alter or impair certain market participants’ ability to utilize certain investment strategies and techniques. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Cybersecurity Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Market Price Discount from Net Asset Value Risk:</span> 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Non‑Diversified Status Risk:</span> Because the Fund, as a non‑diversified investment company, may invest in a smaller number of individual issuers than a diversified investment company, an investment in the Fund presents greater risk to you than an investment in a diversified company. </span></div> <div style="margin-top:0pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Investing in Real Estate Securities Risk:</span> Risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties, and differences in accounting standards. Some international securities may represent small- and medium‑sized companies, which may be more susceptible to price volatility and less liquidity than larger companies. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Common Stock Risk</span>: 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Real Estate Market Risk:</span> 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">REIT Risk:</span> 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 upon management skills and may not be diversified. REITs are also subject to heavy cash flow </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">dependency, defaults by borrowers and self-liquidation. 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. The above 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Small- and Medium‑Sized Companies Risk:</span> 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Preferred Securities Risk:</span> 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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Contingent Capital Securities Risk:</span> Contingent capital securities (sometimes referred to as “CoCos”) are debt or preferred securities with loss absorption characteristics built into the terms of the security, for example, a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuer’s capital ratio falling below a certain level. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence worsening the investor’s standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security (potentially to zero) under such circumstances. In March 2023, a Swiss regulator required a write-down of outstanding CoCos to zero notwithstanding the fact that the equity shares continued to exist and have economic value. It is currently unclear </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">whether regulators of issuers in other jurisdictions will take similar actions. Notwithstanding these risks, the Fund intends to continue to invest in CoCos issued by Swiss companies and by companies in other jurisdictions. In addition, most CoCos are considered to be high yield or “junk” securities and are therefore subject to the risks of investing in below investment-grade securities. Finally, CoCo issuers can, at their discretion, suspend dividend distributions on their CoCo securities and are more likely to do so in response to negative economic conditions and/or government regulation. Omitted distributions are typically non‑cumulative and will not be paid on a future date. Any omitted distribution may negatively impact the returns or distribution rate of the Fund. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Concentration Risk:</span> Because the Fund invests at least 25% of its managed assets in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, loan concentration and competition. In addition, the Fund will also be subject to the risks of investing in the individual industries and securities that comprise the financials sector, including the bank, diversified financials, real estate (including REITs) and insurance industries. To the extent that the Fund focuses its investments in other sectors or industries, such as (but not limited to) energy, industrials, utilities, pipelines, health care and telecommunications, the Fund will be subject to the risks associated with these particular sectors and industries. These sectors and industries may be adversely affected by, among others, changes in government regulation, world events and economic conditions. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Credit and Below-Investment-Grade Securities Risk:</span> Preferred securities may be rated below-investment-grade or may be unrated. Below-investment-grade securities, or equivalent unrated securities, which are commonly known as “high-yield bonds” or “junk bonds,” generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. It is reasonable to expect that any adverse economic conditions could disrupt the market for lower-rated securities, have an adverse impact on the value of those securities and adversely affect the ability of the issuers of those securities to repay principal and interest on those securities. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Leverage Risk:</span> 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 </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Liquidity Risk:</span> Liquidity risk is the risk that particular investments of the Fund may become difficult to sell or purchase. The market for certain investments may become less liquid or illiquid due to adverse changes in the conditions of a particular issuer or due to adverse market or economic conditions. In addition, dealer inventories of certain securities, which provide an indication of the ability of dealers to engage in “market making,” are at, or near, historic lows in relation to market size, which has the potential to increase price volatility in the fixed income markets in which the Fund invests. Federal banking regulations may also cause certain dealers to reduce their inventories of certain securities, which may further decrease the Fund’s ability to buy or sell such securities. As a result of this decreased liquidity, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on performance. Further, transactions in less liquid or illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Foreign (Non‑U.S.) and Emerging Market Securities Risk:</span> The Fund directly purchases securities of foreign issuers. Risks of investing in foreign securities include currency risks, future political and economic developments and possible imposition of foreign withholding taxes on income or proceeds payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Foreign Currency Risk:</span> Although the Fund will report its NAV and pay dividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interest payments in foreign currencies. Therefore, the Fund’s investments in foreign securities will be subject to foreign currency risk, which means that the Fund’s NAV could decline solely as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. The Fund may, but is not required to, engage in various investments that are designed to hedge the Fund’s foreign currency risks, and such investments are subject to the risks described under “Derivatives and Hedging Transactions Risk” below. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Derivatives and Hedging Transactions Risk:</span> 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. </span></div> <div style="margin-top:0pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Rule 144A Securities Risk</span>: Rule 144A Securities are considered restricted securities because they are not registered for sale to the general public and may only be resold to certain qualified institutional buyers. Institutional markets for Rule 144A Securities that exist or may develop may provide both readily ascertainable values for such securities and the ability to promptly sell such securities. However, if there are an insufficient number of qualified institutional buyers interested in purchasing Rule 144A Securities held by the Fund, the Fund will be subject to liquidity risk and thus may not be able to sell the Rule 144A Securities at a desirable time or price. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Options Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Market Disruption and Geopolitical Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Regulatory Risk:</span> 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 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 </span></div><div style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">Additional legislative or regulatory actions may alter or impair certain market participants’ ability to utilize certain investment strategies and techniques. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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. </span></div> <div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354"><span style="font-style:italic">Cybersecurity Risk:</span> 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. </span></div><div style="margin-top:4pt;margin-bottom:0pt;text-indent:5%;font-size:10pt;font-family:arial;"><span style="color:#566354">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 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. </span></div>