UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY
Investment Company Act file number: 811-071540
Exact Name of Registrant
(as specified in charter): Cohen & Steers Total Return Realty Fund, Inc.
Address of Principal Executive Office: 757 Third Avenue
New York, NY 10017
Name and address of agent for service: John E. McLean
757 Third Avenue
New York, NY 10017
Registrant telephone number, including area code: (212) 832-3232
Date of fiscal year end: December 31
Date of reporting period: September 30, 2004
Item 1. Schedule of Investments
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COHEN & STEERS TOTAL RETURN REALTY FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2004 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD(a)
--------- ------------ ------------
EQUITIES 99.02%(b)
COMMON STOCK 79.61%
DIVERSIFIED 9.84%
Colonial Properties Trust.............. 82,100 $ 3,302,062 6.66%
Crescent Real Estate Equities Co....... 170,600 2,685,244 9.53
iStar Financial........................ 36,900 1,521,387 6.77
Vornado Realty Trust................... 143,200 8,975,776 4.53
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16,484,469
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HEALTH CARE 10.51%
Health Care Property Investors......... 230,000 5,980,000 6.42
Health Care REIT....................... 27,600 971,520 6.82
Nationwide Health Properties........... 161,800 3,357,350 7.13
Ventas................................. 281,700 7,301,664 5.02
------------
17,610,534
------------
HOTEL 1.19%
Hospitality Properties Trust........... 38,400 1,631,616 6.78
Strategic Hotel Capital................ 27,300 369,096 6.51
------------
2,000,712
------------
INDUSTRIAL 1.43%
First Industrial Realty Trust.......... 64,700 2,387,430 7.43
------------
MORTGAGE 1.89%
Newcastle Investment Corp.............. 103,027 3,162,929 7.82
------------
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(a) Dividend yield is computed by dividing the security's current annual
dividend rate by the last sale price on the principal exchange, or market,
on which such security trades.
(b) Percentages indicated are based on the net assets of the fund.
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COHEN & STEERS TOTAL RETURN REALTY FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
--------- ------------ ------------
OFFICE 21.95%
Arden Realty........................... 160,000 $ 5,212,800 6.20%
Brandywine Realty Trust................ 184,900 5,265,952 6.18
CarrAmerica Realty Corp................ 155,100 5,071,770 6.12
Equity Office Properties Trust......... 203,400 5,542,650 7.34
HRPT Properties Trust.................. 71,900 790,181 7.64
Mack-Cali Realty Corp.................. 150,800 6,680,440 5.69
Maguire Properties..................... 93,000 2,260,830 6.58
Prentiss Properties Trust.............. 165,300 5,950,800 6.22
------------
36,775,423
------------
OFFICE/INDUSTRIAL 6.40%
Kilroy Realty Corp..................... 56,600 2,152,498 5.21
Liberty Property Trust................. 135,600 5,402,304 6.12
Reckson Associates Realty Corp......... 110,000 3,162,500 5.91
------------
10,717,302
------------
RESIDENTIAL 12.22%
APARTMENT 12.01%
Archstone-Smith Trust.................. 152,900 4,837,756 5.44
AvalonBay Communities.................. 69,900 4,209,378 4.65
Camden Property Trust.................. 78,900 3,645,180 5.50
Gables Residential Trust............... 122,900 4,197,035 7.06
Home Properties........................ 47,000 1,859,320 6.27
Mid-America Apartment Communities...... 35,400 1,378,830 6.01
------------
20,127,499
------------
MANUFACTURED HOME 0.21%
Affordable Residential Communities..... 24,300 354,780 8.56
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TOTAL RESIDENTIAL...................... 20,482,279
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SELF STORAGE 0.14%
Sovran Self Storage.................... 6,200 242,916 6.18
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COHEN & STEERS TOTAL RETURN REALTY FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
--------- ------------ ------------
SHOPPING CENTER 13.83%
COMMUNITY CENTER 4.12%
Developers Diversified Realty Corp..... 22,600 $ 884,790 5.21%
Federal Realty Investment Trust........ 52,400 2,305,600 4.59
Heritage Property Investment Trust..... 51,300 1,496,421 7.20
Kramont Realty Trust................... 69,500 1,292,700 6.99
Urstadt Biddle Properties -- Class A... 60,000 914,400 5.64
------------
6,893,911
------------
REGIONAL MALL 9.71%
CBL & Associates Properties............ 42,100 2,565,995 4.76
Glimcher Realty Trust.................. 95,200 2,313,360 7.90
Macerich Co............................ 107,500 5,728,675 4.58
Mills Corp............................. 109,000 5,653,830 4.59
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16,261,860
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TOTAL SHOPPING CENTER.................. 23,155,771
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SPECIALTY 0.21%
American Campus Communities............ 19,400 360,064 7.27
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TOTAL COMMON STOCK (Identified
cost -- $82,645,719)............ 133,379,829
------------
PREFERRED STOCK 19.41%
DIVERSIFIED 1.20%
Colonial Properties Trust, 9.25%,
Series C............................ 600 15,870 8.73
Colonial Properties Trust, 8.125%,
Series D............................ 14,600 385,586 7.69
Crescent Real Estate Equities Co.,
6.75%, Series A (Convertible)....... 75,500 1,601,355 7.97
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2,002,811
------------
HEALTH CARE 2.85%
Nationwide Health Properties, 7.677%,
Series P............................ 47,000 4,767,563 7.57
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COHEN & STEERS TOTAL RETURN REALTY FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
--------- ------------ ------------
HOTEL 0.20%
FelCor Lodging Trust, 9.00%,
Series B............................ 2,900 $ 74,240 8.79%
Host Marriott Corp, 10.00%,
Series C............................ 3,500 94,220 9.29
Host Marriott Financial Trust,
6.75%, QUIPS(a) (Convertible)....... 3,200 171,200 6.32
------------
339,660
------------
OFFICE 3.76%
Alexandria Real Estate Equities,
9.10%, Series B..................... 13,900 375,578 8.44
HRPT Properties Trust, 8.75%,
Series B............................ 52,800 1,439,856 8.03
Highwoods Properties, 8.625%,
Series A............................ 4,300 4,485,438 8.27
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6,300,872
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RESIDENTIAL -- APARTMENT 3.23%
Apartment Investment & Management Co.,
8.75%, Series D..................... 6,431 162,511 8.67
Apartment Investment & Management Co.,
9.375%, Series G.................... 113,200 3,017,912 8.78
Apartment Investment & Management Co.,
10.10%, Series Q.................... 25,000 662,500 9.55
Apartment Investment & Management Co.,
10.00%, Series R.................... 18,100 482,727 9.37
Mid-America Apartment Communities,
8.30%, Series H..................... 17,300 445,821 8.07
Post Properties, 8.50%, Series A....... 11,000 641,245 7.38
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5,412,716
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SHOPPING CENTER 8.17%
COMMUNITY CENTER 0.90%
Developers Diversified Realty Corp.,
8.60%, Series F..................... 1,600 42,880 8.02
Ramco-Gershenson Property Trust,
9.50%, Series B..................... 11,600 314,360 8.78
Saul Centers, 8.00%, Series A.......... 26,800 714,220 7.50
Urstatdt Biddle Properties, 8.50%,
Series C............................ 4,000 437,000 7.78
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1,508,460
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OUTLET CENTER 0.47%
Chelsea Property Group, 8.375%,
Series A............................ 13,000 783,249 6.95
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(a) (QUIPS) Quarterly Income Preferred Securities
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COHEN & STEERS TOTAL RETURN REALTY FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
SEPTEMBER 30, 2004 (UNAUDITED)
NUMBER DIVIDEND
OF SHARES VALUE YIELD
--------- ------------ ------------
REGIONAL MALL 6.80%
CBL & Associates Properties, 8.75%,
Series B..................................... 13,000 $ 698,750 8.15%
Glimcher Realty Trust, 8.125%,
Series G..................................... 16,000 407,200 7.98
Mills Corp., 9.00%, Series B.................... 73,800 2,005,884 8.28
Mills Corp., 9.00%, Series C.................... 25,000 687,500 8.18
Mills Corp., 8.75%, Series E.................... 26,000 702,000 8.11
Pennsylvania Real Estate Investment
Trust, 11.00%, Series A...................... 55,400 3,296,300 9.24
Taubman Centers, 8.30%, Series A................ 139,500 3,587,940 8.09
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11,385,574
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TOTAL SHOPPING CENTER........................... 13,677,283
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TOTAL PREFERRED STOCK (Identified
cost -- $27,602,204)..................... 32,500,905
------------
TOTAL EQUITIES (Identified
cost -- $110,247,923).................... 165,880,734
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PRINCIPAL
AMOUNT
---------
CORPORATE BOND 0.39%
Host Marriott, LP, 9.50%, due 01/15/07
(Identified cost -- $600,380)............... $600,000 667,500
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TOTAL INVESTMENTS (Identified
cost -- $110,848,303)................. 99.41% 166,548,234(a)
OTHER ASSETS IN EXCESS OF LIABILITIES... 0.59% 982,867
------ ------------
NET ASSETS (Equivalent to $18.11 per
share based on 9,249,159 shares of
capital stock outstanding)............ 100.00% $167,531,101
------ ------------
------ ------------
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(a) At September 30, 2004, net unrealized appreciation was $55,699,931 based on
cost for federal income tax purposes of $110,848,303. This consisted of
aggregate gross unrealized appreciation on investments of $55,732,496 and
aggregate gross unrealized depreciation on investments of $32,565.
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Item 2. Controls and Procedures
(a) The registrant's principal executive officer and principal financial
officer have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940) are effective based on their evaluation of these
disclosure controls and procedures required by Rule 30a-3(b) under the
Investment Company Act of 1940 and Rule 13a-15(b) or 15d-15(b) under
the Securities Exchange Act as of a date within 90 days of the filing
of this report.
(b) During the last fiscal quarter, there were no changes in the
registrant's internal control over financial reporting (as defined in
Rule 30a-3(d) under the Investment Company Act of 1940) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act
of 1940.
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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 TOTAL RETURN REALTY FUND, INC.
By: /s/ Robert H. Steers
--------------------------------
Name: Robert H. Steers
Title: Chairman
Date: November 29, 2004
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/ Robert H. Steers By: /s/ Martin Cohen
-------------------------------- ---------------------------------------
Name: Robert H. Steers Name: Martin Cohen
Title: Chairman, Secretary and Title: President, Treasurer
and principal executive officer and principal financial officer
Date: November 29, 2004
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