<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
July 21, 1997
We are pleased to submit the semi-annual report for the six months ended
June 30, 1997. The net asset value per share at that date was $11.21. In
addition, a regular quarterly dividend of $0.17 was declared for shareholders of
record June 23, 1997 and paid on July 14, 1997.
MID-YEAR REVIEW
Real estate securities have experienced a somewhat erratic period so far in
1997. By mid-year, however, the Fund's 8.0% return based on income and change in
net asset value, is in line with our mid-teens annual total return expectation.
This would also be consistent with the long-term returns that REITs have
traditionally provided.
In April, REITs suffered their largest monthly price decline (-3.4%) in
over two years, the result of concerns about the economy along with the supply
imbalance caused by a flood of equity issuance. In the January to June period,
REITs raised $9.7 billion in common equity, a record for any six month period.
With supply pressures abating and a continuation of strong real estate
fundamentals, REITs, posted strong total returns in both May (+2.9%) and June
(+4.9%), which more than erase April's decline. This strong rebound was
consistent throughout all of the mainstream property sectors.
Also helping performance in the spring were the very strong earnings
reported by REITs. Most companies reported profits above consensus expectations,
and the companies in our universe reported average per share earnings growth of
approximately 10% compared to last year's first quarter. Initial indications
appear to us that a similar pattern is likely to emerge when second quarter
earnings are announced in the next several weeks. This confirms our expectation
that the REIT industry is still in a high growth phase which justifies improved
valuations and share prices that anticipate expanding earnings and asset values.
One important recent development is that the long-term debt market appears
to be becoming much more accommodating to the REIT industry. Whereas for the
past several years, most REITs were able to borrow money for only five to seven
year terms, the more credit worthy companies are now issuing ten to twenty year
fixed-rate debt. Further, the cost of this debt has declined significantly due
to the combination of lower interest rates and a narrowing of spreads from
benchmark rates. This lower cost of debt is enhancing REITs' returns on equity
and the longer maturity is much better suited to the long-term nature of REIT
assets.
INVESTMENT OUTLOOK
We believe that the rate of earnings growth for the industry as a whole is
likely to slow somewhat over the next several years as the real estate cycle
enters into a mature phase. This will happen as three previously wide gaps begin
to close: the gap between existing occupancy rates and full occupancy; the gap
between existing rental rates and market rates; and the gap between the market
value of many properties and their replacement cost.
- --------------------------------------------------------------------------------
1
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
Occupancies and rental rates have risen as the robust national economy over the
past six years, against a backdrop of limited new construction, has engendered a
strong real estate recovery. This improvement in fundamentals has fostered a
substantial return of capital to the industry from both public and private
market sources, thereby increasing real estate values.
Because income is our primary investment objective we believe that a return
to equilibrium conditions in the real estate industry warrants an emphasis on
the safety and growth potential of dividends. With both interest rates and
inflation quite low and the dividend yield of the stock market at an all-time
low, we believe that REITs may be ideal investment vehicles for many investors.
If we are correct about the current state of the real estate cycle, the income
component of REIT returns will be valued more highly and this may serve to
offset generally slowing industry growth. Therefore, we are very pleased to have
identified companies that have both substantial dividend yields and we believe
are capable of sustaining healthy growth in earnings and dividends.
Although we see the real estate cycle entering a mature phase, it is by no
means on the verge of a decline. The real estate industry suffered perhaps its
worst depression ever in the late 1980's and early 1990's and has emerged from
that period in a much leaner and healthier position. There simply is not a lot
of new development taking place and the capital flowing to the industry is
nowhere near the amount that funded the overbuilding of the 1980's. Further,
this capital is primarily being used to purchase existing properties rather than
underwrite new development. Importantly, the emergence of the public market as
the principal allocator of capital to the industry has introduced a measure of
discipline that has never before existed. As a result, we see no shortage of
excellent investment opportunities and we remain confident in our ability to
earn satisfactory returns.
SPECIAL NOTICE
At June 30, 1997, the Fund had realized net capital gains of approximately
$2.5 million, which is equal to $.86 per share. The Fund currently holds no
positions that have material capital losses. It is therefore likely that the
Fund will be making a significant capital gains distribution at year end. We
believe it is important to communicate this to both current and prospective
shareholders. We will update you on the status of this potential distribution in
our third quarter report which you should receive in October.
Sincerely,
/s/ Martin Cohen /s/ Robert Steers
- ---------------------- ---------------------
MARTIN COHEN ROBERT H. STEERS
President Chairman
- --------------------------------------------------------------------------------
2
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COHEN & STEERS REALTY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
--------- -----------
<S> <C> <C> <C>
EQUITIES 102.27%
APARTMENT/RESIDENTIAL 13.05%
Associated Estates Realty Corp................................. 42,900 $ 1,008,149
Charles E. Smith Residential Realty............................ 23,400 675,675
Colonial Properties Trust...................................... 32,500 954,688
Columbus Realty Trust.......................................... 26,400 600,600
Oasis Residential-Preferred.................................... 5,900 152,663
Summit Properties.............................................. 40,700 839,437
-----------
4,231,212
-----------
DIVERSIFIED 4.96%
Pacific Gulf Properties........................................ 43,800 963,600
Santa Anita Realty Enterprises................................. 20,700 642,994
-----------
1,606,594
-----------
HEALTH CARE 15.38%
American Health Properties..................................... 59,500 1,494,938
Health Care REIT............................................... 35,900 872,819
Healthcare Realty Trust........................................ 2,000 55,750
Meditrust...................................................... 17,400 693,825
Nationwide Health Properties................................... 30,000 660,000
Omega Healthcare Investors..................................... 36,900 1,206,168
-----------
4,983,500
-----------
HOTEL 4.95%
Innkeepers USA Trust........................................... 36,000 540,000
Sunstone Hotel Investors....................................... 36,000 522,000
Taubman Centers................................................ 41,000 543,250
-----------
1,605,250
-----------
INDUSTRIAL 4.20%
EastGroup Properties........................................... 67,650 1,361,456
-----------
OFFICE 4.24%
Alexandria Real Estate Equities................................ 31,800 697,612
Brandywine Realty Trust........................................ 33,400 676,350
-----------
1,373,962
-----------
OFFICE/INDUSTRIAL 5.43%
Kilroy Realty Corp............................................. 9,700 244,925
Reckson Associates Realty Corp................................. 21,000 483,000
TriNet Corporate Realty Trust.................................. 31,200 1,031,550
-----------
1,759,475
-----------
</TABLE>
See notes to financial statements.
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3
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER VALUE
OF SHARES (NOTE 1)
--------- -----------
<S> <C> <C> <C>
SELF STORAGE 0.94%
Sovran Self Storage............................................ 10,400 $ 304,200
-----------
SHOPPING CENTER 49.12%
COMMUNITY CENTER 29.77%
Alexander Haagen Properties.................................... 126,300 2,052,375
Bradley Real Estate............................................ 55,500 1,068,375
Burnham Pacific Properties..................................... 60,200 827,750
Glimcher Realty Trust.......................................... 77,000 1,588,125
Mid-America Realty Investments................................. 111,200 1,077,250
Mid-Atlantic Realty Trust...................................... 34,100 383,625
Pennsylvania REIT.............................................. 55,500 1,245,282
Price REIT..................................................... 17,000 618,375
Regency Realty Corp............................................ 3,900 106,275
Saul Centers................................................... 5,700 98,325
Sizeler Property Investors..................................... 26,900 277,406
Western Investment Real Estate Trust........................... 22,000 305,250
-----------
9,648,413
-----------
FACTORY OUTLET CENTER 6.12%
Horizon Group.................................................. 119,700 1,608,469
Tanger Factory Outlet Centers.................................. 14,000 376,250
-----------
1,984,719
-----------
REGIONAL MALL 13.23%
CBL & Associates Properties.................................... 34,300 823,200
JP Realty...................................................... 39,200 1,063,300
Simon Debartolo Group.......................................... 26,500 848,000
The Mills Corp................................................. 29,800 825,088
Urban Shopping Centers......................................... 22,800 726,750
-----------
4,286,338
-----------
TOTAL SHOPPING CENTER.......................................... 15,919,470
-----------
TOTAL INVESTMENTS (Identified cost $27,619,487)....................102.27% 33,145,119
LIABILITIES IN EXCESS OF OTHER ASSETS..............................(2.27)%
(736,242)
-----------
NET ASSETS (Equivalent to $11.21 per share based on
2,890,350 shares of capital stock outstanding)..................100.00%
------ $32,408,877
------ -----------
-----------
</TABLE>
* Non-income Producing Security.
See notes to financial statements.
- --------------------------------------------------------------------------------
4
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (Identified cost $27,619,487) (Note 1).................... $33,145,119
Dividends and interest receivable............................................................. 198,902
Receivable for investments sold............................................................... 1,285,573
Other assets.................................................................................. 4,241
-----------
Total Assets............................................................................ 34,633,835
-----------
LIABILITIES:
Payable for investments purchased............................................................. 1,281,685
Payable for dividends declared................................................................ 491,360
Payable to investment adviser................................................................. 17,558
Payable to administrator...................................................................... 6,119
Payable due to custodian bank................................................................. 376,713
Other liabilities............................................................................. 51,523
-----------
Total Liabilities....................................................................... 2,224,958
-----------
NET ASSETS applicable to 2,890,350 shares of $.01 par value common stock outstanding (Note 4)....... $32,408,877
-----------
-----------
NET ASSET VALUE PER SHARE:
($32,408,877 [div] 2,890,350 shares outstanding)................................................. $ 11.21
-----------
-----------
MARKET PRICE PER SHARE:............................................................................. $ 12.00
-----------
-----------
MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER SHARE:....................................... 7.05%
-----------
-----------
NET ASSETS consist of:
Paid-in capital (Notes 1 and 4)............................................................... $23,196,378
Net investment income......................................................................... 18,058
Accumulated net realized gain on investments sold............................................. 3,668,809
Net unrealized appreciation on investments.................................................... 5,525,632
-----------
$32,408,877
-----------
-----------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
Investment Income:
Dividend income............................................................................... $ 1,168,330
Interest income............................................................................... 52,984
-----------
Total Income............................................................................ 1,221,314
-----------
Expenses:
Investment advisory fees (Note 2)............................................................. 102,326
Administrative fees (Note 2).................................................................. 33,635
Professional fees............................................................................. 24,921
Reports to shareholders....................................................................... 18,817
Directors' fees and expenses (Note 2)......................................................... 16,351
Transfer agent fees........................................................................... 13,431
Custodian fees................................................................................ 6,300
Miscellaneous................................................................................. 6,107
-----------
Total Expenses.......................................................................... 221,888
-----------
Reduction of expenses (Note 6)................................................................ (630)
Net Expenses............................................................................ 221,258
Net investment income............................................................................... 1,000,056
-----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments.............................................................. 2,496,153
Decrease in unrealized appreciation on investments............................................ (1,054,388)
-----------
Net realized and unrealized gain on investments............................................... 1,441,765
-----------
Net increase in net assets resulting from operations................................................ $ 2,441,821
-----------
-----------
</TABLE>
See notes to financial statements.
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6
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
---------------- -----------------
<S> <C> <C>
Change in Net Assets:
From Operations:
Net investment income.................................... $ 1,000,056 $ 1,946,915
Net realized gain on investments......................... 2,496,153 1,061,695
Change in unrealized appreciation/(depreciation) on
investments........................................... (1,054,388) 5,451,013
---------------- -----------------
Net increase in net assets resulting from
operations...................................... 2,441,821 8,459,623
---------------- -----------------
Dividends and Distributions From (Note 4):
Net investment income.................................... (981,998) (1,953,761)
Net realized gain on investments......................... -- (431,988)
Tax return of capital.................................... -- --
---------------- -----------------
Total distributions to shareholders................ (981,998) (2,385,749)
---------------- -----------------
Capital Stock Transactions (Note 4):
Net asset value of shares issued to shareholders in
reinvestment of dividends and distributions from net
investment income and net realized gain on
investments........................................... 126,281 171,506
---------------- -----------------
Total increase in net assets....................... 1,586,104 6,245,380
Net Assets:
Beginning of period...................................... 30,822,773 24,577,393
---------------- -----------------
End of period (including distributions in excess of
undistributed net investment income of $18,058 at June
30, 1997)............................................. $32,408,877 $30,822,773
---------------- -----------------
---------------- -----------------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
7
<PAGE>
<PAGE>
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COHEN & STEERS REALTY INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding
throughout each 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>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 -------------------------------------------------
PER SHARE OPERATING PERFORMANCE (UNAUDITED) 1996 1995 1994 1993 1992
- ------------------------------------------- ----------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $ 10.70 $ 8.59 $ 8.30 $ 8.70 $ 7.63 $ 7.35
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.................... 0.35 0.68 0.64 0.65 0.65 0.65
Net realized and unrealized gains
(losses) on investments............... 0.50 2.26 0.33 (0.31) 1.10 0.31
------- ------- ------- ------- ------- -------
Total from investment operations... 0.85 2.94 0.97 0.34 1.75 0.96
------- ------- ------- ------- ------- -------
Less distributions from:
Net investment income.................... (0.34) (0.68) (0.40) (0.49) (0.65) (0.65)
In excess of net investment income....... 0.00 0.00 0.00 0.00 (0.03) 0.00
Capital gain............................. 0.00 (0.15) 0.00 (0.09) 0.00 0.00
Tax return of capital.................... 0.00 0.00 (0.28) (0.16) 0.00 (0.03)
------- ------- ------- ------- ------- -------
Total distributions................ (0.34) (0.83) (0.68) (0.74) (0.68) (0.68)
------- ------- ------- ------- ------- -------
Net asset value, end of year.................. $ 11.21 $ 10.70 $ 8.59 $ 8.30 $ 8.70 $ 7.63
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Per share market value, end of period......... $ 12.00 $ 12.00 $ 9.13 $ 8.50 $ 9.50 $ 8.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
- ----------------------------------------------------------------------------------------------------------------
Total investment return(c).................... 3.07(e) 42.32% 15.97% (2.78)% 27.77% 22.64%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total net asset value return(c)............... 8.00(e) 33.32% 12.12% 3.80% 23.04% 13.63%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
- ----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of year (in millions).... $32.409 $30.823 $24.577 $23.548 $24.502 $21.323
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Ratios of expenses to average net
assets................................ 1.42%(d) 1.45% 1.73% 1.51%(a) 1.64% 1.63%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Ratio of net investment income to average
net assets............................ 6.41%(d) 7.34% 7.67% 7.62% 7.31% 8.65%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Portfolio turnover rate.................. 72.28%(d) 30.45% 37.75% 80.68% 107.91% 79.51%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Average Commission Rate(b)............... $0.0619 $0.0663 N/A N/A N/A N/A
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
</TABLE>
- ------------------------
(a) Fees paid through directed brokerage commissions have been excluded. Had
these fees been paid by the Fund, the ratio would have been 1.42%.
(b) For fiscal years beginning on or after September 1, 1995, a portfolio is
required to disclose the average commission rate per share it paid for
trades on which commissions were charged.
(c) Total investment return is computed based upon the American Stock Exchange
market price of the Fund's shares and excludes the effects of brokerage
commissions. Dividends and distributions, if any, are assumed for purposes
of this calculation, to be reinvested at prices obtained under the Fund's
dividend reinvestment plan. Total net asset value return measures the
changes in value over the period indicated taking into account reinvested
dividends.
(d) Annualized.
(e) Total returns for periods of less than one year are not annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
8
<PAGE>
<PAGE>
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COHEN & STEERS REALTY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES
Cohen & Steers Realty Income Fund, Inc. (the 'Fund') is a non-diversified,
closed-end management investment company. The Fund was incorporated under the
laws of the State of Maryland on June 21, 1988. The following is a summary of
significant accounting policies 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 amount and estimates on the
financial statements. 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 the Adviser 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 Quotations 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 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
ex-dividend date.
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid quarterly. Net realized capital gains, unless
offset by any available capital loss carryforward, are distributed to
shareholders annually. Distributions to shareholders are recorded on the
ex-dividend date.
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.
Federal Income Taxes: The Fund has qualified and intends to remain
qualified as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986. The principal tax benefits of qualifying as a regulated
investment company, as compared to an ordinary taxable corporation, are that a
regulated investment
- --------------------------------------------------------------------------------
9
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
company is not itself subject to federal income tax on ordinary investment
income and net capital gains that are currently distributed (or deemed
distributed) to its shareholders and that the tax character of long-term capital
gains recognized by a regulated investment company flows through to its
shareholders who received such distributions.
NOTE 2 -- INVESTMENT ADVISORY AND ADMINISTRATIVE FEES AND OTHER TRANSACTIONS
WITH AFFILIATES
Investment Advisory Fees: Cohen & Steers Capital Management, Inc. (the
'Adviser') serves as the Fund's Investment Adviser pursuant to an investment
advisory agreement (the 'Advisory Agreement'). Under the terms of the Advisory
Agreement, the Adviser provides the Fund with the day-to-day investment
decisions and generally manages the Fund's investments in accordance with the
stated policies of the Fund, subject to the supervision of the Fund's Board of
Directors. For the services provided to the Fund, the Adviser receives a monthly
fee in an amount equal to 1/12th of .65% of the average daily net assets of the
Fund (approximately .65% on an annual basis). For the six months ended June 30,
1997, the Fund incurred $102,326 in advisory fees.
Administrative Fees: The Chase Manhattan Bank, N.A., through its affiliate
Chase Global Funds Services Company ('CGFSC') (the Administrator), serves as the
Fund's Administrator pursuant to an Administration Agreement (the 'Agreement').
Under the terms of the Agreement, the Administrator maintains the Fund's books
and records, prepares financial information for the Fund's tax returns, proxy
statements, quarterly and annual reports to shareholders and generally assists
in all aspects of Fund operations, other than providing investment advice,
subject to the supervision of the Fund's Board of Directors. For the services
provided the Fund, the Administrator receives a monthly fee in an amount equal
to 1/12th of .20% of the average daily net assets of the Fund (approximately
.20% on an annual basis). For the six months ended June 30, 1997, the Fund
incurred $33,635 in administration fees.
Directors' Fees: Certain directors of the Fund are also directors, officers
and/or employees of the Adviser. None of the directors so affiliated received
compensation for their services as directors of the Fund with the exception of
out-of-pocket expenses relating to attendance at Board and committee meetings.
Similarly, none of the Fund's officers received compensation from the Fund. Fees
and related expenses accrued for non-affiliated directors totaled $16,351 for
the six months ended June 30, 1997.
NOTE 3 -- PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, excluding short-term investments, for
the six months ended June 30, 1997 aggregated $11,643,672 and $11,328,781,
respectively.
At June 30, 1997, 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.......................................................................... $27,619,487
-----------
Gross unrealized appreciation........................................................... $ 5,594,370
Gross unrealized depreciation........................................................... $ (68,738)
-----------
Net unrealized appreciation............................................................. $ 5,525,632
-----------
-----------
</TABLE>
- --------------------------------------------------------------------------------
10
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
COHEN & STEERS REALTY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
NOTE 4 -- CAPITAL STOCK AND DISTRIBUTION REINVESTMENT
At June 30, 1997, the Fund has one class of common stock, par value $.01
per share, of which 50,000,000 shares are authorized and 2,890,350 shares are
outstanding.
Distributions in 1997 resulted in 10,432 shares being issued at an average
price of $12.11 through the dividend reinvestment plan.
Registered shareholders may elect to receive all distributions in cash paid
by check mailed directly to the shareholder by The Chase Manhattan Bank,
('Chase') as dividend paying agent. Pursuant to the Automatic Reinvestment Plan
(the 'Plan') shareholders not making such election will have all amounts
automatically reinvested by Chase, as the Plan agent in whole or fractional
shares of the Fund.
NOTE 5 -- SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>
NET INCREASE
NET REALIZED (DECREASE)
TOTAL NET AND UNREALIZED IN NET ASSETS
INVESTMENT INVESTMENT GAIN (LOSS) RESULTING NET ASSETS AT
INCOME INCOME ON INVESTMENTS FROM OPERATIONS END OF PERIOD
----------------- ----------------- ------------------ ----------------- -------------------
QUARTERLY PER PER PER PER PER
PERIOD AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE
- ---------------------------------- ---------- ----- ---------- ----- ---------- ------ ---------- ----- ----------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FISCAL 1997
- ----------------------------------
March 31.......................... $ 587,724 $0.20 $ 477,384 $0.17 $ (52,886) $(0.02) $ 424,498 $0.15 $30,839,414 $10.68
June 30........................... 633,590 0.22 522,672 0.18 1,494,651 0.52 2,017,323 0.70 32,408,877 $11.21
---------- ----- ---------- ----- ---------- ------ ---------- -----
$1,221,314 $0.44 $1,000,056 $0.35 $1,441,765 $ 0.50 $2,441,821
---------- ----- ---------- ----- ---------- ------ ---------- -----
---------- ----- ---------- ----- ---------- ------ ---------- -----
FISCAL 1996
- ----------------------------------
March 31.......................... $ 536,236 $0.19 $ 444,453 $0.16 $ 493,917 $ 0.17 $ 938,370 $0.33 $25,073,634 $ 8.75
June 30........................... 595,777 0.20 504,820 0.17 786,905 0.28 1,291,725 0.45 25,919,671 9.03
September 30...................... 509,289 0.18 413,898 0.15 1,478,090 0.51 1,891,988 0.66 27,854,272 9.69
December 31....................... 689,046 0.24 583,744 0.20 3,753,796 1.30 4,337,540 1.50 30,822,773 10.70
---------- ----- ---------- ----- ---------- ------ ---------- -----
$2,330,348 $0.81 $1,946,915 $0.68 $6,512,708 $ 2.26 $8,459,623 $2.94
---------- ----- ---------- ----- ---------- ------ ---------- -----
---------- ----- ---------- ----- ---------- ------ ---------- -----
FISCAL 1995
- ----------------------------------
September 30...................... $ 548,067 $0.19 $ 431,265 $0.15 $ 474,071 $ 0.17 $ 905,336 $0.32 $24,908,041 $ 8.72
December 31....................... 645,437 0.23 559,863 0.20 37,155 0.01 597,018 0.21 24,577,393 8.59
---------- ----- ---------- ----- ---------- ------ ---------- -----
$1,193,504 $0.42 $ 991,128 $0.35 $ 511,226 $ 0.18 $1,502,354 $0.53
---------- ----- ---------- ----- ---------- ------ ---------- -----
---------- ----- ---------- ----- ---------- ------ ---------- -----
</TABLE>
NOTE 6 -- DIRECTED BROKERAGE ARRANGEMENTS
The Adviser has directed certain portfolio trades to brokers who paid a
portion of the Fund's expenses. For the six months ended June 30, 1997, the
Fund's expenses were reduced by $630 under this arrangement.
- --------------------------------------------------------------------------------
11
<PAGE>
<PAGE>
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COHEN & STEERS REALTY INCOME FUND, INC.
PROXY RESULTS
During the six month period ended June 30, 1997, Cohen & Steers Realty
Income Fund, Inc. shareholders voted on the following proposals at the annual
meeting held on April 24, 1997. The description of each proposal and number of
shares voted are as follows:
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Authority Withheld
<S> <C> <C>
1. To elect Directors
George Grossman 2,513,734 16,422
Robert H. Steers 2,514,834 15,322
</TABLE>
<TABLE>
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To ratify Coopers & Lybrand L.L.P. as the Fund's 2,503,365 17,762 9,029
certified public accountants
</TABLE>
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12
<PAGE>
<PAGE>
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COHEN & STEERS REALTY INCOME FUND, INC.
OFFICERS AND DIRECTORS
Robert H. Steers
Director and Chairman
Martin Cohen
Director and President
Gregory C. Clark
Director
George Grossman
Director
Jeffrey H. Lynford
Director
Willard H. Smith, Jr.
Director
Elizabeth O. Reagan
Vice President
Adam Derechin
Vice President
INVESTMENT ADVISER
Cohen & Steers Capital Management, Inc.
757 Third Avenue
New York, New York 10017
(212) 832-3232
FUND ADMINISTRATOR AND TRANSFER AGENT
Chase Global Funds Services Co.
73 Tremont Street
Boston, Massachusetts 02108
(800) 437-9912
CUSTODIAN
The Chase Manhattan Bank, N.A.
3 Chase MetroTech Center
Brooklyn, New York 11245
LEGAL COUNSEL
Dechert Price & Rhoads
30 Rockefeller Plaza
New York, New York 10112
American Stock Exchange Symbol: RIF
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of Fund shares.
- --------------------------------------------------------------------------------
13
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<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
<PAGE>
COHEN & STEERS
REALTY INCOME FUND
757 THIRD AVENUE
NEW YORK, NY 10017
[COHEN & STEERS LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 1997
First Class Mail
U.S. Postage
PAID
Boston, MA
Permit No. 56712
