<PAGE>
COHEN & STEERS
INSTITUTIONAL REALTY SHARES
757 THIRD AVENUE
NEW YORK, NY 10017
[GRAPHIC OMITTED]
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COHEN & STEERS
--------------
INSTITUTIONAL REALTY SHARES
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------------------
SEMI-ANNUAL REPORT
JUNE 30, 2000
<PAGE>
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
July 20, 2000
To Our Shareholders:
We are pleased to submit to you the semi-annual report from the Fund's
commencement of operations on February 14, 2000 through June 30, 2000. The net
asset value at that date was $27.50. In addition, a quarterly dividend of $0.33
was declared for shareholders of record on June 22, 2000 and was paid on June
23, 2000.
MID-YEAR REVIEW
For the quarter, Cohen & Steers Institutional Realty Shares had a total
return, based on income and change in net asset value, of 8.1%. This compares to
the NAREIT Equity REIT Index* total return of 10.5%. For the period February 14,
2000 (commencement of operations) through June 30, 2000, the Fund's total return
was 12.2% which compares to the NAREIT Equity REIT Index total of 13.6%.
Stated simply, the first half of this year has been full of encouraging news
and positive statistics for REIT investors. The group has made what we believe
is a significant bottom and has registered its best absolute and relative
returns in years. For example, the second quarter's absolute total return was
the best since the third quarter of 1997, and relative to the major stock market
averages, REITs turned in their best performance since the first quarter of
1993.
This turnabout was precipitated by a host of technical and fundamental
factors. In our view, it is clear now that REITs were substantially oversold by
the end of last year, and therefore due for a bounce. In addition, the
volatility and price decline in technology stocks, which had been the market
standouts over the past two years, tilted investor sentiment more towards 'old
economy' investments, including REITs. More important, in our opinion, was that
the combination of strong underlying real estate fundamentals and exceptional
valuations were just too compelling for investors to ignore any longer. REIT
earnings grew at a healthy rate in the first quarter, surprising many Wall
Street analysts and reflecting the continued strengthening of most property
markets. Whereas most analysts were expecting average cash flow per share growth
in the 7% range, the industry recorded average growth in the 9% range. Further,
income growth for many companies with properties in the strongest markets
actually reaccelerated in the first half of the year, soaring to the low-teens.
As these earnings were reported, most realty stocks reacted very favorably.
In the meantime, construction activity in nearly all property types peaked
in the early part of the year and has since begun to decline substantially.
Thus, it appears that the rally in REIT shares also reflects expectations for a
continuation of what has been an ideal economic and financial market environment
for property owners. Assuming that the Federal Reserve is successful in
engineering an economic slowdown but with no recession, a so-called 'soft
landing,' we would not expect to see a material rise in construction activity
for the foreseeable future. This would enable property markets to continue to
enjoy positive supply/demand conditions.
Our underperformance relative to the real estate averages can be attributed
primarily to two factors. We have made a commitment to owners of health care
facilities such as nursing homes, assisted living facilities and hospitals,
based on our belief that their fundamentals would be turning around in the very
near future. Unfortunately, while we continue to see signs of a turnaround, we
have been a bit early in this sector, where share prices have continued to lag
the averages. In addition, our holdings in the Real Estate Services sector
behaved more in line with the stock market in general. Although these two
factors have restrained our relative performance
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1
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
so far this year, we believe they will begin to make a positive contribution to
our returns over the next several quarters.
Our current holdings reflect our continued favorable view of the Office and
Apartment sectors, which together comprise over 50% of the portfolio. We believe
that office owners operating in high barrier-to-entry markets with long lease
terms have substantial embedded earnings growth. We are of the view that
apartment owners positioned in robust economic regions should benefit from
increased demand driven by those economies as well as favorable demographic
trends. We are maintaining our position in the Health Care sector as operators
undergo financial and operational restructuring and as the number of elderly
continually increases. We are maintaining our under-weighting in the Retail
sector based on our view that slowing retail sales and the increased use of the
Internet will cause profit margins of traditional retail tenants to erode.
Though still under-weighted, we favor Regional Malls over Community Centers as
certain mall operators have implemented value-added strategies to offset the
loss of market share to the Internet.
INVESTMENT OUTLOOK
We believe that one of the strongest determinants of the direction of REIT
share prices is the direction of the underlying property values, which in turn
influences REIT net asset values (NAVs) per share. When the market expects
property values and NAVs to rise, such as they did in the mid 1990's, REIT share
prices can rise strongly and even sell at a premium to the then current NAVs. We
believe that in the bear market of 1998-99, the reverse took place, whereby the
market expected NAVs to decline, due to concerns about deflation and its impact
on hard assets, as well as the prospect of increased construction at the tail
end of the economic cycle. In short order, REITs began to trade at a meaningful
discount from NAV. This expected decline in NAVs, however, never took place. The
near-absence of capital in the REIT industry and the capital market discipline
imposed on all property market participants effectively attenuated construction
and development activity.
Without capital, nearly all REITs were forced to adopt self-financing
business plans and recycle capital through property sales in order to enhance
shareholder value. Share buybacks became very common and, naturally, purchases
of shares at a discount to NAV increased the NAV of the remaining shares. There
continues to be nearly no new common equity financing in the industry. In the
meantime, real estate fundamentals at the property level have remained very
strong. The growing economy has caused the demand for space to exceed supply in
many markets, and this has resulted in higher occupancy levels and stronger rent
growth than nearly anyone could have imagined.
Consequently, we believe that NAVs are on the rise once again. Current and
prospective NAV growth is coming from several sources. If one assumes that the
capitalization rates (earnings yield) for most property types remain unchanged,
then property values should rise in line with operating income growth. Since we
expect industry-wide growth in operating income of 6% this year, this would
imply a commensurate growth in property values. Further, because most REITs
employ fixed-rate debt financing, the growth in earnings and NAV per share is
magnified. In addition, because of the inflation that has been experienced in
land, materials and labor costs for the real estate industry, the replacement
values for many properties are rising. If one adds to this the fact that many
REITs own properties in prime locations that cannot be duplicated, it is easy to
see the potential for continued value creation.
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
One further factor that we would expect to have a material impact on REIT
share valuations is dividend yield. If the Federal Reserve is successful in
slowing the growth of the economy, we would expect this ultimately to lead to a
leveling off or even a reduction in long-term interest rates, as well as the
yields on U.S. Treasury and high-grade corporate bonds. At the same time,
investor sentiment for higher yielding or 'junk' bonds has turned negative as
the performance in this sector has deteriorated over the past few years. We
believe this could be beneficial overall for REITs, as yield-oriented investors
look for other income producing alternatives. Moreover, since the percentage of
cash flow that the average REIT is paying out to investors is at a historically
low level, under our forecast REITs generally should continue to be able to
maintain significant dividend income returns.
Ironically, in what we consider to be a positive sign, the flow of money
into real estate mutual funds has been remarkably low this year; less than $400
million flowed into these funds, whose total assets are about $8 billion. While
this is a reversal of the outflows experienced last year, it is well below the
levels experienced in the prior bull market. Considering the extraordinary
relative performance of the sector during the first six months and the velocity
at which capital flows in this day and age, we would have expected a much higher
level of investor attention. The reason we find this encouraging is that this
'quiet recovery' in our view is typical of what many sectors experience at the
beginning of a reversal and this may indicate that we are still in the early
phases of this upturn.
Nonetheless, the question most asked of us lately is 'is it too late to
invest in REITs?' While their strong absolute and relative performance clearly
places REITs in a somewhat less undervalued position than they were six months
ago, we believe the growth in earnings and asset values so far this year
justifies much of their price appreciation. In addition, even after this price
increase, relative to stocks, bonds and their own underlying asset values, we
believe that REITs remain solidly undervalued. Thus, we remain optimistic about
the future of REITs and will continue to seek attractive returns for our
investors.
Sincerely,
<TABLE>
<S> <C>
MARTIN COHEN ROBERT H. STEERS
MARTIN COHEN ROBERT H. STEERS
President Chairman
</TABLE>
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Cohen & Steers is now online at www.cohenandsteers.com. Visit our website
for daily NAVs, portfolio information, performance information, recent news
articles, literature and insights on the REIT market.
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* The NAREIT Equity REIT Index is an unmanaged, market capitalization weighted
index of all publicly-traded REITs that invest predominately in the equity
ownership of real estate. The index is designed to reflect the performance of
all publicly-traded REITs as a whole.
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3
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
---------- ------------
<S> <C> <C>
EQUITIES 98.97%
APARTMENT/RESIDENTIAL 20.90%
Apartment Investment & Management
Co. -- Class A...................... 469,900 $ 20,323,175
Archstone Communities Trust............ 488,000 10,278,500
AvalonBay Communities.................. 568,800 23,747,400
Charles E. Smith Residential Realty.... 141,100 5,361,800
Equity Residential Properties Trust.... 508,100 23,372,600
Essex Property Trust................... 150,900 6,337,800
United Dominion Realty Trust........... 75,000 825,000
------------
90,246,275
------------
HEALTH CARE 7.28%
Health Care Property Investors......... 550,000 14,987,500
*Manor Care............................. 426,500 2,985,500
Nationwide Health Properties........... 719,800 10,032,212
*Ventas................................. 1,077,100 3,433,256
------------
31,438,468
------------
HOTEL 7.48%
Host Marriott Corp..................... 606,400 5,685,000
MeriStar Hospitality Corp. ............ 204,300 4,290,300
Starwood Hotels & Resorts Worldwide.... 686,500 22,354,156
------------
32,329,456
------------
INDUSTRIAL 8.41%
AMB Property Corp. .................... 517,800 11,812,312
First Industrial Realty Trust.......... 143,300 4,227,350
ProLogis Trust......................... 950,800 20,263,925
------------
36,303,587
------------
OFFICE 32.55%
Arden Realty Group..................... 662,300 15,564,050
Boston Properties...................... 302,800 11,695,650
**Brookfield Properties Corp. ........... 633,100 8,396,042
Cousins Properties..................... 80,100 3,083,850
Crescent Real Estate Equities Co. ..... 399,400 8,187,700
Equity Office Properties Trust Co. .... 1,080,200 29,773,013
Highwoods Properties................... 199,800 4,795,200
Mack-Cali Realty Corp. ................ 651,800 16,743,113
SL Green Realty Corp. ................. 317,900 8,503,825
Vornado Realty Trust................... 973,900 33,843,025
------------
140,585,468
------------
</TABLE>
See accompanying notes to financial statements.
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4
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
---------- ------------
<S> <C> <C>
OFFICE/INDUSTRIAL 10.34%
Duke-Weeks Realty Corp. ............... 187,800 $ 4,202,025
Prime Group Realty Trust............... 249,600 3,790,800
PS Business Parks...................... 122,300 2,935,200
Reckson Associates Realty Corp. ....... 763,600 18,135,500
Spieker Properties..................... 339,000 15,594,000
------------
44,657,525
------------
REAL ESTATE SERVICES 2.42%
*CAIS Internet.......................... 267,700 3,764,531
*Crescent Operating..................... 50,500 72,594
*FrontLine Capital Group................ 309,700 6,600,481
------------
10,437,606
------------
SHOPPING CENTER 9.59%
COMMUNITY CENTER 2.32%
Kimco Realty Corp. .................... 244,200 10,012,200
------------
REGIONAL MALL 7.27%
General Growth Properties.............. 400,000 12,700,000
Macerich Co............................ 263,900 5,822,294
Rouse Co............................... 285,100 7,056,225
Simon Property Group................... 262,400 5,822,000
------------
31,400,519
------------
TOTAL SHOPPING CENTER.................. 41,412,719
------------
TOTAL EQUITIES (Identified
cost -- $394,120,042)................ 98.97% 427,411,104
OTHER ASSETS IN EXCESS OF LIABILITIES.... 1.03% 4,442,464
-----
NET ASSETS (Equivalent to $27.50 per share based
on 15,703,202 shares of capital stock
outstanding)......................... 100.00% $431,853,568
------ ------------
------ ------------
</TABLE>
---------
* Non-income producing security.
** Brookfield Properties Corp. is a Canadian company listed on the Toronto and
New York Stock Exchanges. The Toronto Stock Exchange is deemed the principal
exchange for valuation purposes. The market value of the Fund's position in
Canadian dollars on June 30, 2000 was $12,440,415 based on an exchange rate
of 1 Canadian dollar to 0.6749 U.S. dollars.
See accompanying notes to financial statements.
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (Identified
cost -- $394,120,042) (Note 1)....................... $427,411,104
Dividends receivable (net of $11,367 foreign withholding
tax payable)......................................... 2,747,660
Receivable for investment securities sold............... 1,852,319
Receivable for fund shares sold......................... 662,686
------------
Total Assets....................................... 432,673,769
------------
LIABILITIES:
Payable to custodian.................................... 341,169
Payable to manager...................................... 265,382
Payable for investment securities purchased............. 213,650
------------
Total Liabilities.................................. 820,201
------------
NET ASSETS applicable to 15,703,202 shares of $0.001 par
value common stock outstanding (Note 4)................... $431,853,568
------------
------------
NET ASSET VALUE PER SHARE:
($431,853,568[div]15,703,202 shares outstanding)........ $ 27.50
------------
------------
NET ASSETS consist of:
Paid-in capital (Notes 1 and 4)......................... $395,930,193
Undistributed net investment income..................... 156,069
Accumulated net realized gain on investments sold....... 2,476,244
Net unrealized appreciation on investments.............. 33,291,062
------------
$431,853,568
------------
------------
</TABLE>
See accompanying notes to financial statements.
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6
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2000* (UNAUDITED)
<TABLE>
<S> <C>
Investment Income (Note 1):
Dividend income (net of $11,563 foreign withholding
tax)................................................. $ 8,629,096
Interest income......................................... 326,091
-----------
Total Income....................................... 8,955,187
-----------
Expenses:
Management fees (Note 2)................................ 1,003,910
-----------
Net Investment Income....................................... 7,951,277
-----------
Net Realized and Unrealized Gain on Investments:
Net realized gain on investments........................ 2,476,244
Net change in unrealized appreciation on investments.... 33,291,062
-----------
Net realized and unrealized gain on investments.... 35,767,306
-----------
Net Increase in Net Assets Resulting from Operations........ $43,718,583
-----------
-----------
</TABLE>
---------
* The Fund commenced operations on February 14, 2000.
See accompanying notes to financial statements.
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
PERIOD ENDED
JUNE 30, 2000*
(UNAUDITED)
-----------
<S> <C>
Change in Net Assets:
From Operations:
Net investment income.............................. $ 7,951,277
Net realized gain on investments................... 2,476,244
Net change in unrealized appreciation on
investments..................................... 33,291,062
------------
Net increase in net assets resulting from
operations.................................. 43,718,583
------------
Dividends and Distributions to Shareholders from
(Note 1):
Net investment income.............................. (7,795,208)
------------
Capital Stock Transactions (Note 4):
Increase in net assets from Fund share
transactions.................................... 395,830,193
------------
Total increase in net assets.................. 431,753,568
Net Assets:
Beginning of period................................ 100,000
------------
End of period (including undistributed net
investment income of $156,069).................. $431,853,568
------------
------------
</TABLE>
---------
* The Fund commenced operations on February, 14, 2000.
See accompanying notes to financial statements.
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding
throughout the period and other performance information derived from the
Financial Statements. It should be read in conjunction with the Financial
Statements and notes thereto.
<TABLE>
<CAPTION>
FOR THE PERIOD
FEBRUARY 14, 2000'D'
THROUGH
JUNE 30, 2000
PER SHARE OPERATING PERFORMANCE: (UNAUDITED)
-------------------------------- -----------
<S> <C>
Net asset value, beginning of period........................ $25.00
------
Income from investment operations:
Net investment income.................................... 0.54
Net realized and unrealized gain on investments.......... 2.49
------
Total from investment operations..................... 3.03
------
Less dividends and distributions to shareholders from:
Net investment income.................................... (0.53)
------
Net asset value, end of period.............................. $27.50
------
------
----------------------------------------------------------------------------------------
Total investment return..................................... 12.18%(1)
------
------
----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
------------------------
Net assets, end of period (in millions).................. $431.9
------
------
Ratio of expenses to average daily net assets............ 0.75%(2)
------
------
Ratio of net investment income to average daily net
assets................................................. 5.91%(2)
------
------
Portfolio turnover rate.................................. 11.65%(1)
------
------
</TABLE>
-------------------
'D' Commencement of operations.
(1) Not annualized.
(2) Annualized.
See accompanying notes to financial statements.
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9
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Cohen & Steers Institutional Realty Shares, Inc. (the 'Fund') was
incorporated under the laws of the State of Maryland on October 13, 1999 and is
registered under the Investment Company Act of 1940, as amended, as an open-end,
non-diversified management investment company. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles. The preparation of the financial
statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the 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 are valued, except as indicated below, at the last sale
price reflected at the close of the New York Stock Exchange 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 asked prices
for the day.
Securities not listed on the New York Stock Exchange but listed on other
domestic or foreign securities exchanges or admitted to trading on the National
Association of Securities Dealers Automated Quotations, Inc. ('NASDAQ') National
Market System are valued in a similar manner. Securities traded on more than one
securities exchange are valued at the last sale price on the business day as of
which such value is being determined as reflected on the tape at the close of
the exchange representing the principal market for such securities.
Readily marketable securities traded in the over-the-counter market,
including listed securities whose primary market is believed by Cohen & Steers
Capital Management, Inc. to be over-the-counter, but excluding securities
admitted to trading on the NASDAQ National List, are valued at the mean of the
current bid and asked prices as reported by NASDAQ, the National Quotation
Bureau or such other comparable sources as the Board of Directors deems
appropriate to reflect their fair market value. Where securities are traded on
more than one exchange and also over-the-counter, the securities will generally
be valued using the quotations the Board of Directors believes reflect most
closely the value of such securities.
Short-term debt securities, which have a maturity value of 60 days or less,
are valued at amortized cost which approximates value.
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 for accounting and tax purposes.
Interest income is recorded on the accrual basis. Dividend income is recorded on
the ex-dividend date.
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid quarterly. A portion of the Fund's dividend may
consist of amounts in excess of net investment income derived from non-taxable
components of the dividends from the Fund's portfolio investments. Distributions
to shareholders are recorded on the ex-dividend date.
Dividends will automatically be reinvested in full and fractional shares of
the Fund based on the net asset value per share at the close of business on the
ex-dividend date unless the shareholder has elected to have them paid in cash.
Dividends from net income and capital gain distributions are determined in
accordance with U.S. Federal Income Tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
return of capital and capital gain distributions received by the Fund on
portfolio securities.
Federal Income Taxes: It is the policy of the Fund to qualify as a regulated
investment company, 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 regulated investment companies, and by distributing
substantially all of its taxable earnings to its shareholders. Accordingly, no
provision for federal income or excise tax is necessary.
NOTE 2. INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Management Fees: Pursuant to a management agreement (the
'Management Agreement'), Cohen & Steers Capital Management, Inc. (the 'Manager')
serves as the Fund's manager. Under the terms of the Management Agreement, the
Manager provides the Fund with a continuous investment program, makes the day-
to-day investment decisions, executes the purchase and sale orders for the
portfolio transactions of the Fund and generally manages the Fund's investments
in accordance with the stated policies of the Fund, subject to the supervision
of the Fund's Board of Directors. The Manager also is responsible, under the
Management Agreement, for the performance of certain administration services for
the Fund (see below). For the services provided to the Fund, the Manager
receives a monthly fee in an amount equal to 1/12th of 0.75% of the average
daily net assets of the Fund. For the period ended June 30, 2000, the Fund
incurred $1,003,910 in management fees.
The Manager has contractually agreed to reimburse the Fund so that its total
annual operating expenses never exceed 0.75% of average daily net assets. This
commitment will remain in place for the life of the Fund.
Administration Services: Cohen & Steers Institutional Realty Shares, Inc.,
Cohen & Steers Realty Shares, Inc., Cohen & Steers Special Equity Fund, Inc.,
Cohen & Steers Equity Income Fund, Inc. and Cohen & Steers Realty Income Fund,
Inc. (the 'Funds') have entered into a fund accounting, transfer agency and sub-
administration agreement with The Chase Manhattan Bank ('Chase') pursuant to
which an affiliate of Chase performs administration functions for the Funds.
Chase receives a monthly sub-administration fee at the annual rate 0.08% on the
first $500 million of the Funds' average daily net assets and at lower rates on
the Funds'
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11
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
average daily net assets in excess of that amount. The Manager pays for the cost
of Chase's services without any additional charge to the Fund.
Directors' Fees: Certain directors and officers of the Fund are also
directors, officers and/or employees of the Adviser. None of the directors and
officers so affiliated received compensation for their services as directors of
the Fund. The Manager pays for the directors' fees and reimbursements without
any additional charge to the Fund.
NOTE 3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, excluding short-term investments, for the
period ended June 30, 2000 totaled $112,414,184 and $37,441,015, respectively.
At June 30, 2000, the cost and unrealized appreciation or depreciation in
value of the investments owned by the Fund, as computed on a federal income tax
basis, are as follows:
<TABLE>
<S> <C>
Aggregate cost............................................ $394,120,042
------------
Gross unrealized appreciation............................. $ 48,830,849
Gross unrealized depreciation............................. $(15,539,787)
------------
Net unrealized appreciation............................... $ 33,291,062
------------
------------
</TABLE>
NOTE 4. CAPITAL STOCK
The Fund is authorized to issue 100 million shares of capital stock at a par
value of $0.001 per share. The Board of Directors of the Fund may increase or
decrease the aggregate number of shares of common stock that the Fund has
authority to issue. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
JUNE 30, 2000
-------------------------
SHARES AMOUNT
---------- ------------
<S> <C> <C>
Sold*............................................ 15,761,056 $397,554,750
Issued as reinvestment of dividends.............. 129,192 3,601,873
Redeemed......................................... (191,046) (5,326,430)
---------- ------------
Net increase..................................... 15,699,202 $395,830,193
---------- ------------
---------- ------------
</TABLE>
---------
* Includes purchases in-kind of $317,295,295. The proceeds were received
from redemption in-kind in Cohen & Steers Realty Shares, Inc.
NOTE 5. BORROWINGS
The Fund, in conjunction with Cohen & Steers Realty Shares, Inc., Cohen &
Steers Special Equity Fund, Inc. and Cohen & Steers Equity Income Fund, Inc.,
has entered into a Line of Credit Agreement with Chase Manhattan Bank for
$200,000,000. The loan, if used, will be collateralized by the Fund's portfolio.
During the period ended June 30, 2000, the Fund did not have any loans
outstanding.
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12
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COHEN & STEERS INSTITUTIONAL REALTY SHARES, INC.
<TABLE>
<S> <C>
OFFICERS AND DIRECTORS KEY INFORMATION
Robert H. Steers INVESTMENT ADVISER
Director and Chairman Cohen & Steers Capital Management, Inc.
757 Third Avenue
Martin Cohen New York, NY 10017
Director and President (212) 832-3232
Gregory C. Clark FUND SUB-ADMINISTRATOR AND TRANSFER AGENT
Director Chase Global Funds Services Co.
73 Tremont Street
George Grossman Boston, MA 02108
Director (800) 437-9912
Jeffrey H. Lynford CUSTODIAN
Director The Chase Manhattan Bank
One Chase Manhattan Plaza
Willard H. Smith, Jr. New York, NY 10081
Director
LEGAL COUNSEL
Elizabeth O. Reagan Simpson Thacher & Bartlett
Vice President 425 Lexington Avenue
New York, NY 10017
Adam Derechin
Vice President and Assistant Treasurer DISTRIBUTOR
Cohen & Steers Securities, Inc.
Lawrence B. Stoller 757 Third Avenue
Assistant Secretary New York, NY 10017
NASDAQ Symbol: CSRIX
Website: www.cohenandsteers.com
Net asset value (NAV) can be found in
the daily mutual fund listings in the
financial section of most major
newspapers under Cohen & Steers.
This report is authorized for delivery
only to shareholders of Cohen & Steers
Institutional Realty Shares, Inc.
unless accompanied or preceded by the
delivery of a currently effective
prospectus setting forth details of
the Fund. Past performance, of course,
is no guarantee of future results and
your investment may be worth more or
less at the time you sell.
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STATEMENT OF DIFFERENCES
The dagger symbol shall be expressed as......................................'D'
