<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21437
Cohen & Steers REIT and Utility Income Fund, Inc.
(Exact name of registrant as specified in charter)
757 Third Avenue, New York, NY 10017
(Address of principal executive offices) (Zip code)
Adam M. Derechin
Cohen & Steers Capital Management, Inc.
757 Third Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 832-3232
Date of fiscal year end: December 31
Date of reporting period: June 30, 2005
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Item 1. Reports to Stockholders.
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
July 28, 2005
To Our Shareholders:
We are pleased to submit to you our report for Cohen & Steers REIT and
Utility Income Fund for the quarter ended June 30, 2005. The net asset value at
that date was $22.62 per common share. The fund's common stock is traded on the
New York Stock Exchange and its share price can differ from its net asset value;
at quarter end, the fund's closing share price on the NYSE was $19.33 per share.
For the quarter ended June 30, 2005, the fund delivered the following total
returns (including income) compared with its relevant benchmarks:
<Table>
<Caption>
TOTAL RETURN,
QUARTER ENDED 6/30/05
-------------------------------------
MARKET PRICE(a) NET ASSET VALUE(a)
----------------- -----------------
YEAR YEAR
QUARTER TO DATE QUARTER TO DATE
------- ------- ------- -------
Cohen & Steers REIT and Utility Income
Fund..................................... 13.2% 6.8% 13.6% 9.0%
NAREIT Equity REIT Index(b)................ 14.5% 6.4% 14.5% 6.4%
S&P 1500 Utilities Index(c)................ 9.4% 14.6% 9.4% 14.6%
Merrill Lynch Fixed Rate Preferred
Index(d)................................. 2.6% 0.1% 2.6% 0.1%
</Table>
The asset mix of the fund at quarter-end consisted of 41% REIT common
stocks, 42% utility common stocks and 17% preferred stocks and other
fixed-income investments. During the quarter, three monthly distributions of
$0.115 per share were paid to common shareholders. In addition, the fund's board
of directors declared three monthly distributions of $0.115 per share, payable
July 29, August 31 and September 30.(e)
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(a) As a closed-end investment company, the price of the fund's New York Stock
Exchange-traded shares will be set by market forces and at times may deviate
from the net asset value per share of the fund.
(b) The NAREIT Equity REIT Index ('Equity REITs') is an unmanaged market-
capitalization-weighted index of all publicly traded REITs that invest
predominantly in the equity ownership of real estate. The index is designed
to reflect the performance of all publicly-traded REITs as a whole.
(c) S&P 1500 Utilities Index is an unmanaged market capitalization weighted
index of 83 companies whose primary business involves the generation,
transmission and/or distribution of electricity and/or natural gas.
(d) The Merrill Lynch Fixed Rate Preferred Index is an unmanaged index of
preferred securities.
(e) Please note that distributions paid by the fund to shareholders are subject
to recharacterization for tax purposes. The final tax treatment of these
distributions is reported to shareholders after the close of each fiscal
year on form 1099-DIV. To the extent the fund pays distributions in excess
of its net investment company taxable income, this excess would be a
tax-free return of capital distributed from the fund's assets. To the
extent this occurs, the fund's shareholders of record would be notified of
the approximate amount of capital returned for each such distribution.
Distributions of capital decrease the fund's total assets and, therefore,
could have the effect of increasing the fund's expense ratio. In addition,
in order to make these distributions, the fund may have to sell portfolio
securities at a less than opportune time.
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1
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
INVESTMENT REVIEW
During the second quarter, improving fundamentals and a flurry of merger and
acquisition activity drove positive performance for both REIT and utility
shares. REITs returned 14.5% in the quarter and utilities returned 9.4%. We
believe that the attractive dividend income, growth potential, and
diversification benefits of REITs and utilities have made these sectors
attractive to investors -- particularly in what we believe to be a low return
environment.
Increased consolidation activity contributed to higher share prices for
REITs and utilities in the second quarter. REIT buyout activity reached a
crescendo in June as Catellus, Gables Residential and CRT Properties announced
that they were being acquired. Seven sizeable buyouts, totaling approximately
$27 billion, have been announced since August 2004 across all four 'core'
property sectors: retail, apartment, industrial and office. These deals were all
struck at very large premiums to the pre-announcement stock prices -- ranging
from 7.2% to 33.4%. The deals also implied lower capitalization rates for major
real estate assets than any of the Wall Street analysts had heretofore been
willing to use, even though similar implied capitalization rates had been
observed in the private market for some time. As a result, many Wall Street
analysts turned more positive on the REIT group, lowering their assumed
capitalization rates and boosting their NAV estimates -- in some instances by
nearly 40%.
In the utility sector, three mergers representing $51 billion in transaction
value were announced over the past six months: Exelon's $27 billion purchase of
Public Service Enterprise Group and Duke Energy's $14.5 billion acquisition of
Cinergy, at attractive premiums of 13% and 15%, respectively, and Warren
Buffett's MidAmerican Energy's $9.4 billion bid for PacifiCorp, a subsidiary of
Scottish Power. Scottish Power's share price rose 6% on the day the acquisition
was announced and 10% from the day of the announcement to quarter-end. A common
theme in mergers and acquisitions among utilities has been for large,
well-capitalized and well-managed companies to acquire companies facing major
operational, regulatory or financial challenges. The recent merger announcements
follow four years of minimal consolidation activity as managements rationalized
unregulated businesses, strengthened balance sheets, and focused on managing and
bolstering core utility franchises.
In the second quarter, utilities also continued to raise dividends. For the
twelve months ended June 30, 2005, 51 domestic electric utilities increased
their dividends by an average of 15.3%. Thirty-one companies had no change in
their dividends and no companies reduced their dividends. European utilities
RWE, National Grid Transco, E.ON and Scottish and Southern also raised their
dividends by 25%, 20%, 18% and 12%, respectively.
The fund's best performing utility investments in the quarter were in the
electric distribution sector, which produced a total return of 12.8%. Because
the electric distribution group is more interest-rate-sensitive, this sector
benefited from the decline in long term interest rates. The 10-year Treasury
bond yield declined from 4.5% on March 31 to 3.9% at quarter end. The worst
performing sector was the integrated natural gas sector, which had a 5.7% total
return due to pressure from the modest decline in natural gas prices.
Edison International was the fund's best performing holding, returning
17.5%. Edison International's strong relative performance was driven by
expectations for improved earnings at the company's unregulated power
subsidiary. In addition, Edison's low cost coal plants benefited from rising
power prices as higher natural gas
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2
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
prices put upward pressure on wholesale power prices. The worst performing
holding for the fund was Enel with a -6.2% total return, due to the weakening
European currency and expectations for a large equity offering.
In the REIT sector, our stock selection in the apartment sector and our
overweight and stock selection in the health care sector were the most
significant contributors to our relative performance during the quarter. Our
overweight in Gables Residential, one of the companies that announced buyouts in
June, was one of the largest contributors in the portfolio at the security
level. Our underweight in the regional mall sector and our overweight and stock
selection in the office sector were the largest detractors from our relative
performance.
Our allocation to preferred stocks, which are used to enhance the
diversification benefits and income potential of the fund, was the largest
detractor from performance in the second quarter. The preferreds and corporate
debt owned by the fund generated a 7.9% current yield at the end of June and
produced a 2.7% total return for the fund in the quarter. While this slightly
exceeded the return on the broader preferred market, it trailed the returns for
both REIT and utility common stocks.
INVESTMENT OUTLOOK
We believe that REIT and utility fundamentals will continue to be strong.
Furthermore, in our view, the macro environment should result in an increasing
demand for the investment characteristics of REITs and utilities. Return
expectations in the U.S. financial markets continue to be low, as reflected in
the current 4.2% yield on the 10-year Treasury bond yield. At the same time, the
aging of the Baby Boomer population is driving demand for investments with
attractive current income. We believe that equities that have both above-average
current income and, just as important, growth potential, will benefit from these
macro trends.
In the mid to late 1990s, real estate company share prices as a group
consistently traded at large premiums to NAV -- up to 30% for the REIT group as
a whole. The public market's perception of the value and growth prospects of
real estate assets was clearly ahead of that of the private market, and this
enabled massive amounts of assets to flow from private to public ownership.
REITs were, in fact, the marginal buyers of most large real estate assets during
this time period, and REIT market capitalization expanded dramatically through
IPOs and secondary offerings of existing companies.
Today, the public market and private market views of real estate value are
much more closely aligned, as evidenced by the fact that most commentators see
REIT valuations as closer than many had realized to private market NAV. This has
profound implications for the way the real estate stock cycle will evolve, in
our opinion.
We believe that assets will continue to flow from private to public hands as
skilled public players seek out selective, strategic acquisition and development
opportunities and as the moderate but steady and disciplined pace of IPO
activity continues. Additionally, we think that current strong investor interest
in REITs' investment attributes, as well as the improved outlook on the sector
by analysts offer an attractive environment for companies to utilize secondary
stock offerings in order to finance these activities. However, if private market
values continue to be strong as well, as we expect, REIT equity issuance should
not get out of hand as it did during the latter stages of the REIT stock cycle
in the late 1990s. The large premiums to asset value that resulted in many
instances
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3
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
in undisciplined equity issuance contributed significantly to the severity of
the downturn in REIT share prices in 1998 and 1999.
In our view, assets will also continue to flow from public to private and
from public to public -- as public companies that can neither create value for
shareholders nor achieve an attractive valuation are taken private or merged
into other public companies. Again, the converging views of real estate asset
value by both private and public capital markets, in conjunction with continued
strong private market demand for real estate assets can potentially serve as a
governor on REIT stock prices -- helping to guard against the massive discounts
to asset value that persisted in late 1999 and 2000 in the aftermath of the REIT
bear market.
We view recent utility merger activity as the beginning of a long-term
consolidation trend. We believe that regulators will take a constructive stance
on mergers given the need to bolster and integrate the fragmented and aging
transmission grid. The utility industry is highly fragmented due to the Public
Utility Holding Company Act (PUHCA). The possible repeal of this legislation,
which hinders mergers among noncontiguous utilities, could accelerate the M&A
trend. We have long expected consolidation to return to the utility sector
considering the large number of utility companies in the U.S. compared with
other developed countries or other U.S. industries such as railroads and
regional telephone services, where just a handful of players exist. Overall, the
benefits of economies of scale to potentially achieve higher growth in a mature,
moderate growth industry should continue to drive consolidation.
After wholesale power prices collapsed under the weight of an oversupply of
power plants, we have witnessed a dramatic turnaround in utility sector
fundamentals as managements have written down or sold merchant power plants and
right-sized their balance sheets through substantial amounts of equity issuance.
Several of our large holdings, including Exelon and Entergy, in our view, will
continue to provide double-digit dividend growth.
We believe that utilities with low cost nuclear and coal-fired generation,
such as Ameren, Edison International, Entergy and Exelon, will continue to
benefit from higher power prices, and have therefore made investing in such
companies one of our core investment themes. In our view, we are near the trough
of the commodity price cycle in wholesale power markets, with demand growth
gradually consuming excess power plant capacity.
In closing, we believe the investment environment will continue to be
favorable for REITs and utilities. By focusing our portfolio on
attractively-valued companies that offer above average dividend yields plus
earnings
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4
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
growth, we believe that Cohen & Steers REIT and Utility Income Fund is well
positioned to meet its income and capital appreciation objectives.
Sincerely,
MARTIN COHEN ROBERT H. STEERS
MARTIN COHEN ROBERT H. STEERS
Co-chairman Co-chairman
ROBERT BECKER WILLIAM F. SCAPELL
ROBERT BECKER WILLIAM F. SCAPELL
Portfolio Manager Portfolio Manager
JOSEPH M. HARVEY JAMES S. CORL
JOSEPH M. HARVEY JAMES S. CORL
Portfolio Manager Portfolio Manager
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VISIT COHEN & STEERS ONLINE AT COHENANDSTEERS.COM
For more information about any of our funds, visit cohenandsteers.com,
where you'll find daily net asset values, fund fact sheets and portfolio
highlights. You can also access newsletters, education tools and market
updates covering the REIT, utility and preferred securities sectors.
In addition, our Web site contains comprehensive information about our
firm, including our most recent press releases, profiles of our senior
investment professionals, and an overview of our investment approach.
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5
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
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OUR LEVERAGE STRATEGY
(UNAUDITED)
While we do not attempt to predict what future interest
rates will be, it has been our philosophy to utilize
interest rate swap transactions to seek to reduce the
interest rate risk inherent in our utilization of leverage.
Our leverage strategy involves issuing auction market
preferred shares (AMPS) to raise additional capital for the
fund, with an objective of increasing the net income
available for shareholders. As of June 30, 2005, AMPS
represented 33% of the fund's managed assets. Considering
that AMPS have variable dividend rates, we seek to lock in
the rate on a majority of this additional capital through
interest rate swap agreements (where we effectively convert
our variable rate obligation to a fixed rate obligation for
the term of the swap agreements). Specifically, we have
fixed the rate on 58% of our borrowings at an average
interest rate of 3.5%, for an average remaining period of
3.6 years. By locking in a large portion of our leveraging
costs, we have endeavored to adequately protect the
dividend-paying ability of the fund. The use of leverage
increases the volatility of the fund's net asset value in
both up and down markets. However, we believe that locking
in a portion of the fund's leveraging costs for the term of
the swap agreements partially protects the fund from any
impact that an increase in short-term interest rates may
have as a result of the use of leverage.
LEVERAGE FACTS(a)
<Table>
Leverage (as % of managed assets).................. 33%
% Fixed Rate....................................... 58%
% Variable Rate.................................... 42%
Weighted Average Rate on Swaps..................... 3.5%
Weighted Average Term on Swaps..................... 3.6 years
Current Rate on AMPS............................... 3.3%
</Table>
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(a) Data as of June 30, 2005. Information subject to change.
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6
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
JUNE 30, 2005
TOP TEN HOLDINGS
(UNAUDITED)
<Table>
<Caption>
MARKET % OF
SECURITY VALUE MANAGED ASSETS
-------- ----------- --------------
1. Equity Office Properties Trust...................... $87,867,260 4.45%
2. CINergy Corp. ...................................... 64,159,830 3.25
3. Southern Co. ....................................... 62,204,914 3.15
4. Ameren Corp. ....................................... 61,703,740 3.12
5. Duke Energy Corp. .................................. 57,973,500 2.93
6. Public Service Enterprise Group..................... 57,931,050 2.93
7. DTE Energy Co. ..................................... 57,115,524 2.89
8. Consolidated Edison................................. 56,652,980 2.87
9. Hospitality Properties Trust........................ 50,015,043 2.53
10. Nationwide Health Properties........................ 49,909,179 2.53
</Table>
PORTFOLIO BREAKDOWN
(BASED ON MANAGED ASSETS)
(UNAUDITED)
[PIE CHART]
<Table>
Other Assets in Excess of Liabilities 1.29%
Preferred Security--$25 Par Value 2.89%
Corporate Bond 3.64%
Preferred Security--Capital Trust 10.81%
Common Stock 81.37%
</Table>
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7
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
COMMON STOCK 120.79%
REAL ESTATE 58.36%
DIVERSIFIED 4.83%
Capital Trust -- Class A............. 100 $ 3,341 6.58%
Colonial Properties Trust............ 78,500 3,454,000 6.14
iStar Financial...................... 892,400 37,114,916 7.04
Lexington Corporate Properties
Trust............................. 820,400 19,943,924 5.92
Spirit Finance Corp.................. 323,200 3,797,600 6.47
--------------
64,313,781
--------------
HEALTH CARE 8.13%
Health Care Property Investors....... 725,300 19,612,112 6.21
Healthcare Realty Trust.............. 234,800 9,065,628 6.79
Health Care REIT..................... 467,500 17,620,075 6.58
Nationwide Health Properties......... 2,113,900 49,909,179 6.27
Ventas............................... 400,000 12,080,000 4.77
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108,286,994
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HOTEL 4.32%
DiamondRock Hospitality Co........... 253,700 2,866,810 6.11
Hospitality Properties Trust......... 1,134,900 50,015,043 6.54
Strategic Hotel Capital.............. 256,900 4,624,200 4.89
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57,506,053
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INDUSTRIAL 2.18%
First Industrial Realty Trust........ 728,200 29,055,180 6.97
--------------
MORTGAGE 2.64%
Newcastle Investment Corp............ 1,164,400 35,106,660 8.29
--------------
</Table>
See accompanying notes to financial statements.
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8
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
OFFICE 18.01%
American Financial Realty Trust...... 686,100 $ 10,552,218 7.02%
Arden Realty......................... 816,300 29,370,474 5.61
Brandywine Realty Trust.............. 356,200 10,917,530 5.74
CRT Properties....................... 201,800 5,509,140 5.13
CarrAmerica Realty Corp.............. 144,100 5,213,538 5.53
Equity Office Properties Trust....... 2,654,600 87,867,260 6.04
HRPT Properties Trust................ 3,089,700 38,404,971 6.76
Highwoods Properties................. 175,400 5,219,904 5.71
Mack-Cali Realty Corp................ 170,500 7,723,650 5.56
Prentiss Properties Trust............ 517,300 18,850,412 6.15
Reckson Associates Realty Corp....... 600,100 20,133,355 5.07
--------------
239,762,452
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RESIDENTIAL 10.21%
APARTMENT 9.27%
AMLI Residential Properties Trust.... 1,002,100 31,325,646 6.14
Apartment Investment & Management
Co................................ 363,600 14,878,512 5.87
Education Realty Trust............... 487,900 8,928,570 6.50
GMH Communities Trust................ 524,100 7,258,785 6.57
Gables Residential Trust............. 205,700 8,892,411 5.57
Home Properties...................... 615,400 26,474,508 5.86
Mid-America Apartment Communities.... 188,700 8,570,754 5.15
Town & Country Trust................. 600,000 17,106,000 6.03
--------------
123,435,186
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MANUFACTURED HOME 0.94%
Affordable Residential Communities... 726,900 9,704,115 5.62
Sun Communities...................... 75,000 2,789,250 6.78
--------------
12,493,365
--------------
TOTAL RESIDENTIAL.................... 135,928,551
--------------
</Table>
See accompanying notes to financial statements.
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
SELF STORAGE 2.09%
Extra Space Storage.................. 708,800 $ 10,157,104 6.35%
Sovran Self Storage.................. 154,900 7,041,754 5.32
U-Store-It Trust..................... 555,200 10,576,560 5.88
--------------
27,775,418
--------------
SHOPPING CENTER 5.95%
COMMUNITY CENTER 3.00%
Cedar Shopping Centers............... 472,500 6,969,375 6.10
Heritage Property Investment Trust... 250,000 8,755,000 6.00
Inland Real Estate Corp.............. 354,000 5,692,320 5.97
New Plan Excel Realty Trust.......... 682,500 18,543,525 6.07
--------------
39,960,220
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FREE STANDING 2.31%
Commercial Net Lease Realty.......... 1,500,300 30,711,141 6.35
--------------
REGIONAL MALL 0.64%
Glimcher Realty Trust................ 305,500 8,477,625 6.92
--------------
TOTAL SHOPPING CENTER................ 79,148,986
--------------
TOTAL REAL ESTATE.................... 776,884,075
--------------
TELECOMMUNICATION SERVICES 1.20%
FairPoint Communications............. 986,000 15,923,900 9.29
--------------
TRANSPORT -- MARINE 0.09%
Teekay LNG Partners LP............... 44,300 1,249,260 5.85
--------------
UTILITY 60.31%
ELECTRIC -- DISTRIBUTION 7.88%
Consolidated Edison.................. 1,209,500 56,652,980 4.87
Energy East Corp..................... 352,100 10,203,858 3.80
National Grid Transco plc (ADR)...... 105,800 5,159,866 4.37
NSTAR................................ 295,774 9,118,712 3.76
Pepco Holdings....................... 990,800 23,719,752 4.18
--------------
104,855,168
--------------
</Table>
See accompanying notes to financial statements.
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10
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
ELECTRIC -- INTEGRATED 50.38%
Ameren Corp.......................... 1,115,800 $ 61,703,740 4.59%
American Electric Power Co........... 291,100 10,732,857 3.80
CINergy Corp......................... 1,431,500 64,159,830 4.28
Cleco Corp........................... 243,500 5,252,295 4.17
DPL.................................. 112,900 3,099,105 3.50
DTE Energy Co........................ 1,221,200 57,115,524 4.40
Dominion Resources................... 182,700 13,408,353 3.65
Duke Energy Corp..................... 1,950,000 57,973,500 4.17
E.ON AG (ADR)........................ 478,500 14,168,385 3.17
Edison International................. 485,000 19,666,750 2.47
Enel S.P.A. (ADR).................... 190,400 8,265,264 4.98
Entergy Corp......................... 419,500 31,693,225 2.86
Exelon Corp.......................... 815,400 41,854,482 3.12
FPL Group............................ 224,600 9,446,676 3.38
FirstEnergy Corp..................... 322,300 15,505,853 3.43
Hawaiian Electric Industries......... 338,900 9,085,909 4.63
PG&E Corp............................ 805,000 30,219,700 3.20
PPL Corp............................. 229,500 13,627,710 3.10
Pinnacle West Capital Corp........... 397,500 17,668,875 4.27
Progress Energy...................... 842,300 38,105,652 5.22
Public Service Enterprise Group...... 952,500 57,931,050 3.68
SCANA Corp........................... 107,500 4,591,325 3.65
Southern Co.......................... 1,794,200 62,204,914 4.30
Xcel Energy.......................... 1,190,000 23,228,800 4.41
--------------
670,709,774
--------------
GAS -- DISTRIBUTION 0.15%
AGL Resources........................ 50,000 1,932,500 3.21
--------------
GAS -- INTEGRATED 1.90%
KeySpan Corp......................... 564,400 22,971,080 4.47
Puget Energy......................... 100,500 2,349,690 4.28
--------------
25,320,770
--------------
TOTAL UTILITY........................ 802,818,212
--------------
</Table>
See accompanying notes to financial statements.
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11
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
UTILITY -- FOREIGN 0.83%
ELECTRIC -- INTEGRATED
RWE AG(c)............................ 95,000 $ 6,100,479 2.82%
Scottish and Southern Energy plc(c).. 274,905 4,974,806 2.98
--------------
11,075,285
--------------
TOTAL COMMON STOCK
(Identified cost --
$1,390,660,921)............. 1,607,950,732
--------------
PREFERRED SECURITIES -- $25 PAR VALUE 16.04%
BANK 0.13%
Colonial Capital Trust IV, 7.875%.... 56,300 1,469,430 7.55
Zions Capital Trust, 8.00%,
Series B.......................... 10,000 267,500 7.48
--------------
1,736,930
--------------
BANK -- FOREIGN 0.09%
Northern Rock plc, 8.00%, Series A... 45,531 1,141,917 7.97
--------------
FINANCE 0.35%
Ford Motor Credit Co., 7.60%......... 4,500 99,540 8.59
MBNA Capital, 8.125% Series D
(TruPS)........................... 105,142 2,803,086 7.61
MBNA Capital, 8.10% Series E
(TOPrS)........................... 64,000 1,728,000 7.52
--------------
4,630,626
--------------
INSURANCE -- PROPERTY/CASUALTY 0.05%
St. Paul Capital Trust I, 7.60%
(TruPS)........................... 24,300 638,118 7.24
--------------
MEDIA 0.43%
Liberty Media Corp., 8.75% (CBTCS)... 32,100 845,835 8.31
Liberty Media Corp., 8.75% (PPLUS)... 54,000 1,425,600 8.30
Shaw Communications, 8.50%, Series B
(COPrS)........................... 139,000 3,504,190 8.45
--------------
5,775,625
--------------
</Table>
See accompanying notes to financial statements.
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COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
REAL ESTATE 14.86%
DIVERSIFIED 2.69%
Bedford Property Investors, 7.625%,
Series B.......................... 253,050 $ 6,390,778 7.56%
Forest City Enterprises, 7.375%,
Class A........................... 519,000 13,260,450 7.20
iStar Financial, 7.875%, Series E.... 258,000 6,652,530 7.64
iStar Financial, 7.65%, Series G..... 77,000 1,963,500 7.49
iStar Financial, 7.50%, Series I..... 250,000 6,280,000 7.48
Lexington Corporate Properties Trust,
8.05%, Series B................... 50,000 1,317,500 7.63
--------------
35,864,758
--------------
HEALTH CARE 2.86%
Health Care REIT, 7.875%, Series D... 63,536 1,631,604 7.67
Health Care REIT, 7.625%, Series F... 305,600 7,722,512 7.56
LTC Properties, 8.00%, Series F...... 600,000 15,345,000 7.82
Omega Healthcare Investors, 8.375%,
Series D.......................... 500,000 13,250,000 7.89
--------------
37,949,116
--------------
HOTEL 0.69%
Host Marriott Corp., 8.875%,
Series E.......................... 80,000 2,200,000 8.07
Innkeepers USA, 8.00%, Series C...... 222,900 5,699,553 7.82
LaSalle Hotel Properties, 10.25%,
Series A.......................... 50,000 1,336,000 9.58
--------------
9,235,553
--------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
13
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
OFFICE 4.30%
Alexandria Real Estate Equities,
8.375%, Series C.................. 374,250 $ 9,876,458 7.92%
Brandywine Realty Trust, 7.50%,
Series C.......................... 177,410 4,444,121 7.50
Brandywine Realty Trust, 7.375%,
Series D.......................... 27,500 690,250 7.33
Corporate Office Properties Trust,
8.00%, Series G................... 8,000 206,800 7.74
CRT Properties, 8.50%, Series A...... 108,100 2,671,151 8.62
Equity Office Properties Trust,
7.75%, Series G................... 24,600 657,312 7.26
Highwoods Properties, 8.00%,
Series B.......................... 137,215 3,450,957 7.95
Highwoods Properties, 8.00%,
Series D.......................... 60,089 1,511,238 7.95
Kilroy Realty Corp., 7.80%,
Series E.......................... 99,500 2,572,075 7.54
Maguire Properties, 7.625%,
Series A(b)....................... 590,400 14,925,312 7.56
SL Green Realty Corp., 7.625%,
Series C.......................... 424,500 10,867,200 7.46
SL Green Realty Corp., 7.875%,
Series D.......................... 211,200 5,417,280 7.68
--------------
57,290,154
--------------
OFFICE/INDUSTRIAL 0.66%
PS Business Parks, 7.00%, Series H... 44,100 1,084,860 7.11
PS Business Parks, 6.875%,
Series I.......................... 246,900 6,049,050 7.02
PS Business Parks, 7.95%, Series K... 65,000 1,696,500 7.62
--------------
8,830,410
--------------
RESIDENTIAL 1.46%
APARTMENT 0.31%
Apartment Investment & Management
Co., 9.375%, Series G............. 20,000 532,000 8.80
Apartment Investment & Management
Co., 8.00%, Series V.............. 47,200 1,198,880 7.87
Apartment Investment & Management
Co., 7.875%, Series Y............. 5,000 125,500 7.85
Colonial Properties Trust, 8.125%,
Series D.......................... 9,900 259,875 7.73
Gables Residential Trust, 7.50%,
Series D.......................... 38,000 959,120 7.45
Mid-America Apartment Communities,
8.30%, Series H................... 38,100 990,600 8.00
--------------
4,065,975
--------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
14
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
MANUFACTURED HOME 1.15%
Affordable Residential Communities,
8.25%, Series A................... 607,100 $ 15,359,630 8.14%
--------------
TOTAL RESIDENTIAL.................... 19,425,605
--------------
SELF STORAGE 0.02%
Public Storage, 8.00%, Series R...... 8,600 223,600 7.69
--------------
SHOPPING CENTER 1.69%
COMMUNITY CENTER 0.82%
Developers Diversified Realty Corp.,
8.00%, Series G................... 26,500 689,000 7.69
Developers Diversified Realty Corp.,
7.50%, Series I................... 300,700 7,697,920 7.34
Saul Centers, 8.00%, Series A........ 96,300 2,522,097 7.64
--------------
10,909,017
--------------
REGIONAL MALL 0.87%
CBL & Associates Properties, 7.75%,
Series C.......................... 114,710 3,148,790 7.07
CBL & Associates Properties, 7.375%,
Series D.......................... 60,000 1,519,800 7.26
Cedar Shopping Centers, 8.875%,
Series A.......................... 137,500 3,671,250 8.31
Mills Corp., 9.00%, Series C......... 109,400 2,949,971 8.34
Mills Corp., 8.75%, Series E......... 12,400 336,040 8.08
--------------
11,625,851
--------------
TOTAL SHOPPING CENTER................ 22,534,868
--------------
SPECIALTY 0.49%
Capital Automotive REIT, 7.50%,
Series A.......................... 50,300 1,277,620 7.40
Capital Automotive REIT, 8.00%,
Series B.......................... 200,000 5,250,000 7.62
--------------
6,527,620
--------------
TOTAL REAL ESTATE.................... 197,881,684
--------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
15
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
NUMBER VALUE DIVIDEND
OF SHARES (NOTE 1) YIELD(a)
---------- -------------- ------------
UTILITY -- ELECTRIC-INTEGRATED 0.13%
Energy East Capital Trust I, 8.25%... 48,200 $ 1,265,250 7.85%
Northern States Power Company, 8.00%
(PINES)........................... 9,500 252,700 7.52
PSEG Funding Trust II, 8.75%
Series............................ 8,500 230,350 8.08
--------------
1,748,300
--------------
TOTAL PREFERRED SECURITIES--$25
PAR VALUE (Identified
cost -- $210,601,002)......... 213,553,200
--------------
PREFERRED SECURITIES -- CAPITAL TRUST 4.29%
BANK 0.26%
Astoria Capital Trust I, 9.75%, due
11/1/29, Series B................. 3,000,000 3,525,000 8.30
--------------
DIVERSIFIED FINANCIAL SERVICES 1.23%
Old Mutual Capital Funding, 8.00%,
due 5/29/49 (Eurobond)............ 15,450,000 16,363,728 7.55
--------------
ELECTRIC -- INTEGRATED 0.36%
DPL Capital Trust II, 8.125%, due
9/1/31............................ 4,000,000 4,735,672 6.87
--------------
FOOD 0.74%
Dairy Farmers of America, 7.875%,
Series 144A(c,d).................. 50,000 4,934,875 7.98
Gruma S.A., 7.75%, due 12/29/49,
144A(c,d)......................... 5,000,000 4,886,375 7.93
--------------
9,821,250
--------------
INSURANCE -- MULTI-LINE 0.86%
AFC Capital Trust I, 8.207%, due
2/3/27, Series B.................. 10,000,000 11,383,820 7.21
--------------
OIL COMPANY -- EXPLORATION AND
PRODUCTION 0.46%
Pemex Project Funding Master Trust,
7.75%, due 9/29/49................ 6,000,000 6,072,126 7.66
--------------
REAL ESTATE 0.38%
BF Saul Real Estate Investment Trust,
7.50%, due 3/1/14................. 5,000,000 5,200,000 7.21
--------------
TOTAL PREFERRED SECURITIES --
CAPITAL TRUST (Identified
cost -- $54,986,150).......... 57,101,596
--------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
16
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
CORPORATE BONDS 5.40%
CABLE TELEVISION 1.41%
Cablevision Systems New York Group,
8.00%, due 4/15/12, 144A(d)......... $ 3,000,000 $ 2,955,000
CSC Holdings, 7.875%, due 2/15/18...... 4,000,000 3,960,000
Rogers Cable, 8.75%, due 5/01/32....... 10,430,000 11,890,200
--------------
18,805,200
--------------
DIVERSIFIED SERVICES 0.49%
Liberty Media Corp., 8.25%, due
2/01/30............................. 6,600,000 6,582,807
--------------
INSURANCE 0.66%
Liberty Mutual Insurance, 7.697%, due
10/15/97, 144A(d)................... 6,000,000 6,647,508
Oil Casualty Insurance, 8.00%, due
9/15/34, 144A(d).................... 2,000,000 2,118,926
--------------
8,766,434
--------------
MEDICAL -- HOSPITAL 1.26%
Columbia/HCA, 8.36%, due 4/15/24....... 2,000,000 2,246,690
Columbia/HCA, 7.69%, due 6/15/25....... 2,450,000 2,637,121
Columbia/HCA, 7.50%, due 11/15/95...... 9,600,000 9,374,544
Columbia/HCA, 7.75%, due 7/15/36....... 2,325,000 2,488,622
--------------
16,746,977
--------------
OIL COMPANY -- EXPLORATION & PRODUCTION 0.69%
Kerr-McGee Corp., 7.875%, due
9/15/31............................. 8,000,000 9,149,673
--------------
TELEPHONE -- INTEGRATED 0.89%
Citizens Communications Co., 9.00%,
due 8/15/31......................... 11,550,000 11,896,500
--------------
TOTAL CORPORATE BONDS
(Identified cost -- $70,555,246) 71,947,591
--------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
17
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 2005 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- --------------
COMMERCIAL PAPER 0.85%
New Center Asset Trust, 2.20%, due
07/01/05 (Identified cost --
$11,327,000)........................ $11,327,000 $ 11,327,000
--------------
TOTAL INVESTMENTS (Identified
cost -- $1,738,130,319)............ 147.37% 1,961,880,119
OTHER ASSETS IN EXCESS OF
LIABILITIES........................ 1.08% 14,346,074
LIQUIDATION VALUE OF PREFERRED
SHARES............................. (48.45)% (645,000,000)
------ --------------
NET ASSETS -- APPLICABLE TO COMMON
SHARES (Equivalent to $22.62 per
share based on 58,858,135 shares of
capital stock outstanding)......... 100.00% $1,331,226,193
------ --------------
------ --------------
</Table>
GLOSSARY OF PORTFOLIO ABBREVIATIONS
ADR American Depositary Receipt
CBTCS Corporate Backed Trust Certificates
COPrS Canadian Origin Preferred Securities
PINES Public Income Notes
PPLUS Preferred Plus Trust
TOPrS Trust Originated Preferred Securities
TruPS Trust Preferred Securities
- -------------------
Note: Percentages indicated are based on the net assets applicable to common
shares of the fund.
(a) Dividend yield is computed by dividing the security's current annual
dividend rate by its value on June 30, 2005. The current dividend rate
does not reflect any potential reclassifications to capital gain or return
of capital.
(b) 40,100 shares segregated as collateral for the interest rate swap
transactions.
(c) Fair valued security. Total fair valued securities equal 1.57% of net assets
applicable to common shares.
(d) Resale is restricted to qualified institutional investors; aggregate
holdings equal 1.62% of net assets applicable to common shares.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2005 (UNAUDITED)
<Table>
ASSETS:
Investments in securities, at value (Identified
cost -- $1,738,130,319) (Note 1)....................... $1,961,880,119
Dividends and interest receivable........................ 10,603,935
Receivable for investment securities sold................ 4,555,459
Unrealized appreciation on interest rate swap
transactions (Notes 1 and 6)........................... 6,561,075
Other assets............................................. 91,757
--------------
Total Assets......................................... 1,983,692,345
--------------
LIABILITIES:
Payable for investment securities purchased.............. 3,946,323
Payable for dividends declared on common shares.......... 1,037,579
Payable to investment manager............................ 1,040,761
Payable for dividends declared on preferred shares....... 895,863
Unrealized depreciation on interest rate swap
transactions (Notes 1 and 6)........................... 266,926
Payable to administrator................................. 73,116
Payable for directors' fees.............................. 7,024
Other liabilities........................................ 198,560
--------------
Total Liabilities.................................... 7,466,152
--------------
LIQUIDATION VALUE OF PREFERRED SHARES:
Auction market preferred shares, Series M7, ($25,000
liquidation value, $0.001 par value, 3,360 shares
issued and outstanding) (Notes 1 and 5)................ 84,000,000
Auction market preferred shares, Series T7, ($25,000
liquidation value, $0.001 par value, 3,360 shares
issued and outstanding) (Notes 1 and 5)................ 84,000,000
Auction market preferred shares, Series W7, ($25,000
liquidation value, $0.001 par value, 3,360 shares
issued and outstanding) (Notes 1 and 5)................ 84,000,000
Auction market preferred shares, Series TH7, ($25,000
liquidation value, $0.001 par value, 3,360 shares
issued and outstanding) (Notes 1 and 5)................ 84,000,000
Auction market preferred shares, Series F7, ($25,000
liquidation value, $0.001 par value, 3,360 shares
issued and outstanding) (Notes 1 and 5)................ 84,000,000
Auction market preferred shares, Series F28, ($25,000
liquidation value, $0.001 par value, 3,000 shares
issued and outstanding) (Notes 1 and 5)................ 75,000,000
Auction market preferred shares, Series T28, ($25,000
liquidation value, $0.001 par value, 3,000 shares
issued and outstanding) (Notes 1 and 5)................ 75,000,000
Auction market preferred shares, Series W28, ($25,000
liquidation value, $0.001 par value, 3,000 shares
issued and outstanding) (Notes 1 and 5)................ 75,000,000
--------------
645,000,000
--------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHARES................ $1,331,226,193
--------------
--------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHARES consist of:
Common stock ($0.001 par value, 58,858,135 shares issued
and outstanding)....................................... $1,101,086,361
Dividends in excess of net investment income............. (13,968,929)
Accumulated undistributed net realized gain.............. 14,065,341
Net unrealized appreciation.............................. 230,043,420
--------------
$1,331,226,193
--------------
--------------
NET ASSET VALUE PER COMMON SHARE:
($1,331,226,193 [div] 58,858,135 shares outstanding)..... $ 22.62
--------------
--------------
MARKET PRICE PER COMMON SHARE............................... $ 19.33
--------------
--------------
MARKET PRICE DISCOUNT TO NET ASSET VALUE PER COMMON SHARE... (14.54)%
--------------
--------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
19
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2005 (UNAUDITED)
<Table>
Investment Income (Note 1):
Dividend income (net of $175,135 of foreign withholding
tax)................................................. $ 38,427,178
Interest income......................................... 4,077,834
------------
Total Income....................................... 42,505,012
------------
Expenses:
Investment management fees (Note 2)..................... 7,896,036
Preferred remarketing fee............................... 801,668
Administration fees (Note 2)............................ 563,757
Reports to shareholders................................. 191,155
Custodian fees and expenses............................. 74,713
Professional fees....................................... 68,634
Directors' fees and expenses (Note 2)................... 26,214
Transfer agent fees and expenses........................ 6,527
Miscellaneous........................................... 98,736
------------
Total Expenses..................................... 9,727,440
Reduction of Expenses (Note 2).......................... (1,857,891)
------------
Net Expenses....................................... 7,869,549
------------
Net Investment Income....................................... 34,635,463
------------
Net Realized and Unrealized Gain (Loss) on Investments
(Note 1):
Net realized gain on investments........................ 15,317,078
Net realized loss on foreign currency transactions...... (15,495)
Net realized loss on interest rate swap transactions.... (1,212,431)
Net change in unrealized appreciation on investments.... 63,603,792
Net change in unrealized depreciation on foreign
currency translations................................ (529)
Net change in unrealized appreciation on interest rate
swap transactions.................................... 1,724,674
------------
Net realized and unrealized gain on investments.... 79,417,089
------------
Net Increase Resulting from Operations...................... 114,052,552
------------
Less Dividends and Distributions to Preferred Shareholders
from Net Investment Income................................ (9,300,330)
------------
Net Increase in Net Assets from Operations Applicable to
Common Shares............................................. $104,752,222
------------
------------
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
20
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS APPLICABLE TO COMMON SHARES (UNAUDITED)
<Table>
<Caption>
FOR THE PERIOD
FOR THE JANUARY 30, 2004(a)
SIX MONTHS ENDED THROUGH
JUNE 30, 2005 DECEMBER 31, 2004
---------------- -----------------
Change in Net Assets Applicable to Common Shares:
From Operations:
Net investment income......................... $ 34,635,463 $ 58,290,011
Net realized gain (loss)...................... 14,089,152 (2,741,862)
Net change in unrealized appreciation......... 65,327,937 164,715,483
-------------- --------------
Net increase resulting from operations... 114,052,552 220,263,632
-------------- --------------
Less Dividends and Distributions to Preferred
Shareholders from:
Net investment income......................... (9,300,330) (7,343,713)
Net realized gain on investments.............. -- (304,643)
-------------- --------------
Total Dividends and distributions to
preferred shareholders................. (9,300,330) (7,648,356)
-------------- --------------
Net increase in net assets from operations
applicable to common shares................ 104,752,222 212,615,276
-------------- --------------
Less Dividends and Distributions to Common
Shareholders from:
Net investment income......................... (38,846,369) (46,308,778)
Net realized gain on investments.............. -- (2,072,519)
Tax return of capital......................... -- (13,412,617)
-------------- --------------
Total dividends and distributions to
common shareholders.................... (38,846,369) (61,793,914)
-------------- --------------
Capital Stock Transactions (Note 5):
Increase in net assets from common share
transactions............................... -- 1,120,442,100
Increase in net assets from shares issued to
common shareholders for reinvestment of
dividends.................................. -- 1,329,853
Preferred and common share offering cost
adjustment................................. 282,878 --
Decrease in net assets from underwriting
commissions and offering expenses from
issuance of preferred shares............... (1,134,828) (6,521,300)
-------------- --------------
Net increase (decrease) in net assets
from capital stock transactions........ (851,950) 1,115,250,653
-------------- --------------
Total increase in net assets applicable
to common shares....................... 65,053,903 1,266,072,015
Net Assets Applicable to Common Shares:
Beginning of period........................... 1,266,172,290 100,275
-------------- --------------
End of period(b).............................. $1,331,226,193 $1,266,172,290
-------------- --------------
-------------- --------------
</Table>
- -------------------
(a) Commencement of operations.
(b) Includes dividends in excess of net investment income of $14,065,341 and
$457,693, respectively.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
21
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
The following table includes selected data for a common 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>
FOR THE PERIOD
FOR THE JANUARY 30, 2004(a)
SIX MONTHS ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: JUNE 30, 2005 DECEMBER 31, 2004
- -------------------------------- ---------------- ------------------
Net asset value per common share, beginning of period....... $21.51 $19.10
------ ------
Income from investment operations:
Net investment income................................... 0.59(b) 0.90
Net realized and unrealized gain on investments......... 1.36 2.97
------ ------
Total income from investment operations............. 1.95 3.87
------ ------
Less dividends and distributions to preferred shareholders
from:
Net investment income................................... (0.16) (0.12)
Net realized gain on investments........................ -- (0.01)
------ ------
Total dividends and distributions to preferred
shareholders...................................... (0.16) (0.13)
------ ------
Total from investment operations applicable to
common shares..................................... 1.79 3.74
------ ------
Less: Offering costs charged to paid-in capital -- common
shares.................................................... -- (0.04)
Offering costs charged to paid-in capital -- preferred
shares................................................ (0.02) (0.12)
Dilutive effect of common share offering................ -- (0.12)
Preferred and common share offering cost adjustment..... 0.00(c) --
------ ------
Total offering and organization costs............... (0.02) (0.28)
------ ------
Less dividends and distributions to common shareholders
from:
Net investment income................................... (0.66) (0.79)
Net realized gain on investments........................ -- (0.03)
Tax return of capital................................... -- (0.23)
------ ------
Total dividends and distributions to common
shareholders...................................... (0.66) (1.05)
------ ------
Net increase in net asset value............................. 1.11 2.41
------ ------
Net asset value, per common share, end of period............ $22.62 $21.51
------ ------
------ ------
Market value, per common share, end of period............... $19.33 $18.76
------ ------
------ ------
===============================================================================================
Net asset value total return(d,e)........................... 8.99% 19.46%
------ ------
------ ------
Market value return(d,e).................................... 6.79% -0.50%
------ ------
------ ------
===============================================================================================
</Table>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
22
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED) -- (CONTINUED)
<Table>
<Caption>
FOR THE PERIOD
FOR THE JANUARY 30, 2004(a)
SIX MONTHS ENDED THROUGH
RATIOS/SUPPLEMENTAL DATA: JUNE 30, 2005 DECEMBER 31, 2004
- ------------------------- ---------------- ------------------
Net assets applicable to common shares, end of period (in
millions)................................................. $1,331.2 $1,266.2
-------- --------
-------- --------
Ratio of expenses to average daily net assets applicable to
common shares (before expense reduction)(g)............... 1.59%(f) 1.49%(f)
-------- --------
-------- --------
Ratio of expenses to average daily net assets applicable to
common shares (net of expense reduction)(g)............... 1.28%(f) 1.21%(f)
-------- --------
-------- --------
Ratio of net investment income to average daily net assets
applicable to common shares (before expense reduction)(g). 5.35%(f) 5.40%(f)
-------- --------
-------- --------
Ratio of net investment income to average daily net assets
applicable to common shares (net of expense reduction)(g). 5.65%(f) 5.68%(f)
-------- --------
-------- --------
Ratio of expenses to average daily managed assets (before
expense reduction)(g,h)................................... 1.05%(f) 1.04%(f)
-------- --------
-------- --------
Ratio of expenses to average daily managed assets (net of
expense reduction)(g,h)................................... 0.85%(f) 0.84%(f)
-------- --------
-------- --------
Portfolio turnover rate..................................... 10.61%(e) 17.89%(e)
-------- --------
-------- --------
PREFERRED SHARES:
- -----------------
Liquidation value, end of period (in 000's)................. $645,000 $570,000
-------- --------
-------- --------
Total shares outstanding (in 000's)......................... 26 23
-------- --------
-------- --------
Asset coverage per share.................................... $ 76,598 $ 80,534
-------- --------
-------- --------
Liquidation preference per share............................ $ 25,000 $ 25,000
-------- --------
-------- --------
Average market value per share(i)........................... $ 25,000 $ 25,000
-------- --------
-------- --------
</Table>
- -------------------
(a) Commencement of operations.
(b) Calculation based on average shares outstanding.
(c) Less than $0.005 per share.
(d) Total market value return is computed based upon the New York 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 dividends
as reinvested.
(e) Not annualized.
(f) Annualized.
(g) Ratios do not reflect the effect of dividend payments to preferred
shareholders.
(h) Average daily managed assets represents net assets applicable to common
shares plus liquidation preference of preferred shares.
(i) Based on weekly prices.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
23
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Cohen & Steers REIT and Utility Income Fund, Inc. (the fund) was
incorporated under the laws of the State of Maryland on October 1, 2003 and is
registered under the Investment Company Act of 1940, as amended, as a
nondiversified, closed-end management investment company. The fund's investment
objective is high current income. The fund had no operations until December 10,
2003 when it sold 5,250 shares of common stock for $100,275 to Cohen & Steers
Capital Management, Inc. (the investment manager). Investment operations
commenced on January 30, 2004.
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 accounting principles generally accepted in the
United States of America (GAAP). The preparation of the financial statements in
accordance with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
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 or, if no asked price is available, at the bid price.
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 official
closing prices as reported by Nasdaq, the National Quotation Bureau, or such
other comparable sources as the Board of Directors deem appropriate to reflect
their fair market value. 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, or if no
asked price is available, at the bid price. However, certain fixed-income
securities may be valued on the basis of prices provided by a pricing service
when such prices are believed by the Board of Directors to reflect the fair
market value of such securities. 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 most closely reflect the
value of such securities.
- --------------------------------------------------------------------------------
24
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
Securities for which market prices are unavailable will be valued at fair
value pursuant to procedures approved by the fund's Board of Directors.
Circumstances in which market prices may be unavailable include, but are not
limited to, when trading in a security is suspended, the exchange on which the
security is traded is subject to an unscheduled close or disruption or material
events occur after the close of the exchange on which the security is
principally traded. In these circumstances, valuation date based on
consideration of any information or factors it deems appropriate. These may
include recent transactions in comparable securities, information relating to
the specific and developments in the markets.
The fund's use of fair value pricing may cause the net asset value of fund
shares to differ from the net asset value that would be calculated using market
quotations. Fair value pricing involves subjective judgments and it is possible
that the fair value determined for a security may be materially different than
the value that could be realized upon the sale of that security.
To the extent the fund holds securities that are primarily listed on foreign
exchanges that trade on weekends or days when the fund does not price its
shares, the value of the securities held in the fund may change on days when you
will not be able to purchase or redeem fund shares.
Short-term debt securities, which have a maturity date 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. Interest income is recorded on the
accrual basis. Dividend income is recorded on the ex-dividend date. The fund
records distributions received in excess of income from underlying investments
as a reduction of cost of investments and/or realized gain. Such amounts are
based on estimates if actual amounts are not available, and actual amounts of
income, realized gain and return of capital may differ from the estimated
amounts. The fund adjusts the estimated amounts of the components of
distributions (and consequently its net investment income) as an increase to
unrealized appreciation/(depreciation) and realized gain/(loss) on investments
as necessary once the issuers provide information about the actual composition
of the distributions.
Foreign Currency Translation and Forward Foreign Currency Contracts: The
books and records of the fund are maintained in U.S. dollars as follows:
(1) the foreign currency market value of investment securities, other assets and
liabilities and forward foreign currency contracts (forward contracts) are
translated at the exchange rates prevailing at the end of the period; and
(2) purchases, sales, income and expenses are translated at the exchange rates
prevailing on the respective dates of such transactions. The resultant exchange
gains and losses are recorded as realized and unrealized gain/loss on foreign
exchange transactions. Pursuant to U.S. federal income tax regulations, certain
foreign exchange gains/losses included in realized and unrealized gain/loss are
included in or are a reduction of ordinary income for federal income tax
purposes. The fund does not isolate that portion of the results of operations
arising as a result of changes in the foreign exchange rates from the changes
- --------------------------------------------------------------------------------
25
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
in the market prices of the securities. Forward contracts are valued daily at
the appropriate exchange rates. The resultant unrealized exchange gains and
losses are recorded as unrealized foreign currency gain or loss. The fund
records realized gains or losses on delivery of the currency or at the time the
forward contract is extinguished (compensated) by entering into a closing
transaction prior to delivery.
Foreign Securities: The fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
Interest Rate Swaps: The fund uses interest rate swaps in connection with
the sale of preferred shares. The interest rate swaps are intended to reduce or
eliminate the risk that an increase in short-term interest rates could have on
the performance of the fund's common shares as a result of the floating rate
structure of the preferred shares. In these interest rate swaps, the fund agrees
to pay the other party to the interest rate swap (which is known as the
counterparty) a fixed rate payment in exchange for the counterparty agreeing to
pay the fund a variable rate payment that is intended to approximate the fund's
variable rate payment obligation on the preferred shares. The payment obligation
is based on the notional amount of the swap. Depending on the state of interest
rates in general, the use of interest rate swaps could enhance or harm the
overall performance of the common shares. The market value of interest rate
swaps is based on pricing models that consider the time value of money,
volatility, the current market and contractual prices of the underlying
financial instrument. Unrealized gains are reported as an asset and unrealized
losses are reported as a liability on the Statement of Assets and Liabilities.
The change in value of swaps, including the accrual of periodic amounts of
interest to be paid or received on swaps, is reported as unrealized gains or
losses in the Statement of Operations. A realized gain or loss is recorded upon
payment or receipt of a periodic payment or termination of swap agreements. Swap
agreements involve, to varying degrees, elements of market and counterparty
risk, and exposure to loss in excess of the related amounts reflected in the
Statement of Assets and Liabilities.
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid to common shareholders monthly. Dividends and
distributions to shareholders are recorded on the ex-dividend date.
Distributions paid by the fund are subject to recharacterization for tax
purposes. Based upon the results of operations for the six months ended
June 30, 2005, the investment manager considers it likely that a portion of the
dividends will be reclassified to return of capital and distributions of net
realized capital gains upon the final determination of the fund's taxable income
for the year. Net realized capital gains, unless offset by any available capital
loss carryforward, are distributed to shareholders annually.
- --------------------------------------------------------------------------------
26
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
Dividends from net investment income and capital gain distributions are
determined in accordance with U.S. federal income tax regulations which may
differ from GAAP.
Series M7, Series T7, Series W7, Series TH7 and Series F7 preferred shares
pay dividends based on a variable interest rate set at auctions, normally held
every seven days. Dividends and distributions are declared and recorded for the
subsequent seven day period on the auction date. In most instances, dividends
are payable every seven days, on the first business day following the end of the
dividend period.
Series T28, Series W28 and Series F28 preferred shares pay dividends based
on a variable interest rate set at auctions, normally held every 28 days. The
dividends are declared and recorded for the subsequent 28 day period on the
auction date. In most instances, dividends are payable every 28 days, on the
first business day following the end of the dividend period.
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, ADMINISTRATION FEES AND OTHER TRANSACTIONS
WITH AFFILIATES
Investment Management Fees: Cohen & Steers Capital Management, Inc. (the
investment manager) serves as the fund's investment manager pursuant to an
investment management agreement (the management agreement). Under the terms of
the management agreement, the investment manager provides the fund with day-
to-day investment decisions and generally manages the fund's investments in
accordance with the stated polices of the fund, subject to the supervision of
the Board of Directors.
For the services under the management agreement, the fund pays the
investment manager a management fee, accrued daily and paid monthly at an annual
rate of 0.85% of the fund's average daily managed asset value. Managed asset
value is the net asset value of the common shares plus the liquidation
preference of the preferred shares.
The investment manager has contractually agreed to waive its investment
management fee in the amount of 0.20% of average daily managed asset value for
the first five years of the fund's operations, 0.15% of average daily managed
asset value in year six, 0.10% of average daily managed asset value in year
seven and 0.05% of average daily managed asset value in year eight.
Administration Fees: The fund has entered into an administration agreement
with the investment manager under which the investment manager performs certain
administrative functions for the fund and receives a fee, accrued daily and paid
monthly at the annual rate of 0.06% of the fund's average daily managed assets
up to $1 billion, 0.04% of the fund's average daily managed assets in excess of
$1 billion up to $1.5 billion and 0.02%
- --------------------------------------------------------------------------------
27
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
of the fund's average daily managed assets in excess of $1.5 billion. For the
six months ended June 30, 2005, the fund incurred $433,734 in administration
fees.
Director's Fees: Certain directors and officers of the fund are also
directors, officers and/or employees of the investment manager. None of the
directors and officers so affiliated received compensation from the fund for
their services.
NOTE 3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, excluding short-term investments, for the
six months ended June 30, 2005 totaled $268,295,728 and $197,030,797,
respectively.
NOTE 4. INCOME TAX INFORMATION
At June 30, 2005, the cost of investments and net unrealized appreciation
for federal income tax purposes were as follows:
<Table>
Aggregate cost........................................... $1,738,051,289
--------------
--------------
Gross unrealized appreciation............................ $ 230,633,168
Gross unrealized depreciation............................ (6,804,867)
--------------
Net unrealized appreciation on investments............... 223,828,301
Net unrealized appreciation on interest rate swap
transactions........................................... 6,294,149
--------------
Net unrealized appreciation.............................. $ 230,122,450
--------------
--------------
</Table>
NOTE 5. CAPITAL STOCK
The fund is authorized to issue 100 million shares of common stock at a par
value of $0.001 per share.
During the six months ended June 30, 2005 the fund issued no shares of
common stock for the reinvestment of dividends.
The fund's articles of incorporation authorize the issuance of fund
preferred shares, par value $0.001 per share, in one or more classes or series,
with rights as determined by the Board of Directors, by action of the Board of
Directors without the approval of the common shareholders.
On January 18, 2005, the fund issued 3,000 auction market preferred shares,
Series W28 (par value $0.001). Proceeds paid to the fund amounted to $73,865,172
after deduction of underwriting commissions and offering expenses of $1,134,828.
This issue has received a 'AAA/Aaa' rating from Standard & Poor's and Moody's.
During the six months ended June 30, 2005, a $75,134 adjustment was credited
to common stock for preferred offering costs and a $207,744 adjustment was
credited to common stock for common offering costs.
- --------------------------------------------------------------------------------
28
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
On January 30, 2004, the fund completed the initial public offering of
52,500,000 shares of common stock. Proceeds paid to the fund amounted to
$1,000,650,000 after deduction of underwriting commissions and offering expenses
of $49,350,000.
On February 13, 2004, the fund completed a subsequent offering of 3,500,000
shares of common stock. Proceeds paid to the fund amounted to $66,710,000 after
deduction of underwriting commissions and offering expenses of $3,290,000.
On March 9, 2004, the fund completed a subsequent offering of 2,000,000
shares of common stock. Proceeds paid to the fund amounted to $38,120,000 after
deduction of underwriting commissions and offering expenses of $1,880,000.
On March 12, 2004, the fund completed a subsequent offering of 785,000
shares of common stock. Proceeds paid to the fund amounted to $14,962,100 after
deduction of underwriting commissions and offering expenses of $737,900.
On March 23, 2004, the fund issued 3,360 taxable auction market preferred
shares, Series M7 (par value $0.001), 3,360 taxable auction market preferred
shares, Series T7 (par value $0.001), 3,360 taxable auction market preferred
shares, Series W7 (par value $0.001), 3,360 taxable auction market preferred
shares, Series TH7 (par value $0.001), 3,360 taxable auction market preferred
shares, Series F7 (par value $0.001), 3,000 taxable auction market preferred
shares, Series T28 (par value $0.001) and 3,000 taxable auction market preferred
shares, Series F28 (par value $0.001)(together referred to as preferred shares).
Proceeds paid to the fund amounted to $563,478,700 after deduction of
underwriting commissions and offering expenses of $6,521,300. These issues have
received a 'AAA/Aaa' rating from Standard & Poor's and Moody's.
Preferred shares are senior to the fund's common shares and will rank on a
parity with shares of any other series of preferred shares, and with shares of
any other series of preferred stock of the fund, as to the payment of dividends
and the distribution of assets upon liquidation. If the fund does not timely
cure a failure to (1) maintain a discounted value of its portfolio equal to the
preferred shares basic maintenance amount, (2) maintain the 1940 Act preferred
shares asset coverage, or (3) file a required certificate related to asset
coverage on time, the preferred shares will be subject to a mandatory redemption
at the redemption price of $25,000 per share plus an amount equal to accumulated
but unpaid dividends thereon to the date fixed for redemption. To the extent
permitted under the 1940 Act and Maryland Law, the fund at its option may
without consent of the holders of preferred shares, redeem preferred shares
having a dividend period of one year or less, in whole, or in part, on the
business day after the last day of such dividend period upon not less than 15
calendar days and not more than 40 calendar days prior to notice. The optional
redemption price is $25,000 per share plus an amount equal to accumulated but
unpaid dividends thereon to the date fixed for redemption.
The fund's common shares and preferred shares have equal voting rights of
one vote per share and vote together as a single class. In addition, the
affirmative vote of the holders of a majority, as defined in the 1940 Act,
- --------------------------------------------------------------------------------
29
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)
of the outstanding preferred shares shall be required to (1) approve any plan of
reorganization that would adversely affect the preferred shares and (2) approve
any matter that materially and adversely affects the rights, preferences, or
powers of that series.
NOTE 6. INVESTMENTS IN INTEREST RATE SWAPS
Interest rate swaps at June 30, 2005 are as follows:
<Table>
<Caption>
UNREALIZED
NOTIONAL FIXED FLOATING RATE(a) TERMINATION APPRECIATION/
COUNTERPARTY AMOUNT RATE (RESET MONTHLY) DATE (DEPRECIATION)
------------ ------ ---- --------------- ---- --------------
Merrill Lynch Derivative Products AG.... $46,000,000 3.2275% 3.330% March 29, 2008 $ 877,178
Merrill Lynch Derivative Products AG.... $46,000,000 3.4150% 3.330% March 29, 2009 943,213
Merrill Lynch Derivative Products AG.... $46,000,000 3.4610% 3.330% March 29, 2010 1,172,333
Merrill Lynch Derivative Products AG.... $34,000,000 3.5350% 3.300% April 23, 2008 380,790
Royal Bank of Canada.................... $68,000,000 2.9900% 3.310% March 26, 2009 2,378,913
UBS AG.................................. $30,000,000 3.2200% 3.160% May 7, 2007 357,481
UBS AG.................................. $34,000,000 3.4400% 3.260% April 19, 2008 451,167
UBS AG.................................. $34,000,000 4.0600% 3.260% April 19, 2010 (52,627)
UBS AG.................................. $34,000,000 4.1725% 3.320% April 28, 2010 (214,299)
----------
$6,294,149
----------
----------
</Table>
- -------------------
(a) Based on LIBOR (London Interbank Offered Rate). Represents rates in effect
at June 30, 2005.
- --------------------------------------------------------------------------------
30
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED JUNE 30, 2005) (UNAUDITED)
<Table>
<Caption>
BASED ON NET ASSET VALUE BASED ON MARKET VALUE
-------------------------- --------------------------
SINCE INCEPTION SINCE INCEPTION
ONE YEAR (1/30/04) ONE YEAR (1/30/04)
-------- --------------- -------- ---------------
33.10% 20.45% 24.83% 4.38%
</Table>
The performance data quoted represents past performance. Past performance is no
guarantee of future results. The investment return will vary and the principal
value of an investment will fluctuate and shares, if redeemed, may be worth more
or less than their original cost. Current performance may be lower or higher
than the performance data quoted.
REINVESTMENT PLAN
We urge shareholders who want to take advantage of this plan and whose
shares are held in 'Street Name' to consult your broker as soon as possible to
determine if you must change registration into your own name to participate.
OTHER INFORMATION
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the fund may purchase, from time to time, shares of its
common stock in the open market.
A description of the policies and procedures that the fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-330-7348, (ii) on our Web site at
cohenandsteers.com or (iii) on the Securities and Exchange Commission's Web site
at http://www.sec.gov. In addition, the fund's proxy voting record for the most
recent 12-month period ended June 30 is available (i) without charge, upon
request, by calling 1-800-330-7348 or (ii) on the SEC's Web site at
http://www.sec.gov.
The fund files its complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The fund's Forms
N-Q are available (i) without charge, upon request by calling 1-800-330-7348, or
(ii) on the SEC's website at http://www.sec.gov. In addition, the Forms N-Q may
be reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
Please note that the distributions paid by the fund to shareholders are
subject to recharacterization for tax purposes. The final tax treatment of these
distributions is reported to shareholders on their 1099-DIV forms, which are
mailed to shareholders after the close of each fiscal year. The fund may pay
distributions in excess of the fund's net investment company taxable income and
this excess would be a tax-free return of capital distributed from the fund's
assets. To the extent this occurs, the fund's shareholders of record will be
notified of the estimated amount of capital returned to shareholders for each
such distribution and this information will also be available at
cohenandsteers.com. Distributions of capital decrease the fund's total assets
and, therefore, could have the effect of increasing the fund's expense ratio. In
addition, in order to make these distributions, the fund may have to sell
portfolio securities at a less than opportune time.
- --------------------------------------------------------------------------------
31
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
PROXY RESULTS
During the six months ended June 30, 2005, Cohen & Steers REIT and Utility
Income Fund, Inc. shareholders voted on the following proposals at the annual
meeting held on April 28, 2005. The description of each proposal and number of
shares voted are as follows:
<Table>
<Caption>
Common Shares
- -----------------------------------------------------------------------------------------
SHARES VOTED AUTHORITY
FOR WITHHELD
- -----------------------------------------------------------------------------------------
To elect Directors
Bonnie Cohen.............................................. 56,765,511 895,486
George Grossman........................................... 56,770,268 890,729
Richard E. Kroon.......................................... 56,769,959 891,038
Richard J. Norman......................................... 56,770,490 890,507
Frank K. Ross............................................. 56,769,854 891,143
Robert H. Steers.......................................... 56,765,438 895,559
C. Edward Ward, Jr........................................ 56,767,594 893,403
<Caption>
Preferred Shares
- -----------------------------------------------------------------------------------------
SHARES VOTED AUTHORITY
FOR WITHHELD
- -----------------------------------------------------------------------------------------
To elect Directors
Bonnie Cohen.............................................. 20,653 32
Martin Cohen.............................................. 20,653 32
George Grossman........................................... 20,653 32
Richard E. Kroon.......................................... 20,653 32
Richard J. Norman......................................... 20,653 32
Frank K. Ross............................................. 20,653 32
Robert H. Steers.......................................... 20,653 32
Willard H. Smith Jr....................................... 20,653 32
C. Edward Ward, Jr........................................ 20,653 32
</Table>
- --------------------------------------------------------------------------------
32
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
MEET THE COHEN & STEERS FAMILY OF OPEN-END FUNDS:
<Table>
FOR TOTAL RETURN: FOR TOTAL RETURN:
COHEN & STEERS COHEN & STEERS
REALTY SHARES INSTITUTIONAL REALTY SHARES
DESIGNED FOR INVESTORS SEEKING MAXIMUM TOTAL DESIGNED FOR INSTITUTIONAL INVESTORS SEEKING
RETURN, INVESTING PRIMARILY IN REITS MAXIMUM TOTAL RETURN, INVESTING PRIMARILY IN
SYMBOL: CSRSX REITS
SYMBOL: CSRIX
FOR HIGH CURRENT INCOME: FOR CAPITAL APPRECIATION:
COHEN & STEERS COHEN & STEERS
REALTY INCOME FUND REALTY FOCUS FUND
DESIGNED FOR INVESTORS SEEKING HIGH CURRENT DESIGNED FOR INVESTORS SEEKING MAXIMUM CAPITAL
INCOME, INVESTING PRIMARILY IN REITS APPRECIATION, INVESTING IN A LIMITED NUMBER OF
SYMBOLS: CSEIX, CSBIX, CSCIX, CSDIX REITS AND OTHER REAL ESTATE SECURITIES
SYMBOLS: CSFAX, CSFBX, CSFCX, CSSPX
FOR TOTAL RETURN: FOR TOTAL RETURN:
COHEN & STEERS COHEN & STEERS
INTERNATIONAL REALTY FUND UTILITY FUND
DESIGNED FOR INVESTORS SEEKING MAXIMUM TOTAL DESIGNED FOR INVESTORS SEEKING MAXIMUM TOTAL
RETURN, INVESTING PRIMARILY IN INTERNATIONAL RETURN, INVESTING PRIMARILY IN UTILITIES
REAL ESTATE SECURITIES SYMBOLS: CSUAX, CSUBX, CSUCX, CSUIX
SYMBOLS: IRFAX, IRFCX, IRFIX
</Table>
FOR MORE INFORMATION ABOUT ANY COHEN & STEERS FUND
OR TO OBTAIN A PROSPECTUS PLEASE CONTACT US AT:
1-800-330-7348, OR VISIT OUR WEB SITE AT COHENANDSTEERS.COM
PLEASE CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE
FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION ABOUT THE FUND.
PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
COHEN & STEERS SECURITIES, LLC, DISTRIBUTOR
- --------------------------------------------------------------------------------
33
<Page>
- --------------------------------------------------------------------------------
COHEN & STEERS REIT AND UTILITY INCOME FUND, INC.
<Table>
OFFICERS AND DIRECTORS KEY INFORMATION
Robert H. Steers INVESTMENT MANAGER
Director and co-chairman Cohen & Steers Capital Management, Inc.
757 Third Avenue
Martin Cohen New York, NY 10017
Director and co-chairman (212) 832-3232
Bonnie Cohen FUND SUBADMINISTRATOR AND CUSTODIAN
Director State Street Bank and Trust Company
225 Franklin Street
George Grossman Boston, MA 02110
Director
TRANSFER AGENT -- COMMON SHARES
Richard E. Kroon Computershare
Director 250 Royall Street
Canton, MA 02021
Richard J. Norman (800) 426-5523
Director
TRANSFER AGENT -- PREFERRED SHARES
Frank K. Ross The Bank of New York
Director 100 Church Street
New York, NY 10007
Willard H. Smith Jr.
Director LEGAL COUNSEL
Simpson Thacher & Bartlett LLP
C. Edward Ward, Jr. 425 Lexington Avenue
Director New York, NY 10017
Adam M. Derechin New York Stock Exchange Symbol: RTU
President and chief executive officer
Web site: cohenandsteers.com
Joseph M. Harvey
Vice president This report is for shareholder information.
This is not a prospectus intended for use
James S. Corl in the purchase or sale of fund shares.
Vice president Past performance is of course no guarantee
of future results and your investment may
William F. Scapell be worth more or less at the time you sell.
Vice president
Robert S. Becker
Vice president
Lawrence B. Stoller
Secretary
Jay J. Chen
Treasurer
John E. McLean
Chief compliance officer and assistant secretary
</Table>
- --------------------------------------------------------------------------------
34
<Page>
COHEN & STEERS
REIT AND UTILITY INCOME FUND
- ----------------------------
SEMIANNUAL REPORT
JUNE 30, 2005
COHEN & STEERS
REIT AND UTILITY INCOME FUND
757 THIRD AVENUE
NEW YORK, NY 10017
<Page>
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 above.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
None.
Item 10. Submission of Matters to a Vote of Security Holders.
None.
Item 11. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial officer
have concluded, based upon their evaluation of the registrant's disclosure
controls and procedures as conducted
<Page>
within 90 days of the filing date of this report, that these disclosure
controls and procedures provide reasonable assurance that material information
required to be disclosed by the registrant in the report it files or submits
on Form N-CSR is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms
and that such material information is accumulated and communicated to the
registrant's management, including its principal executive officer and
principal financial officer, as appropriate, in order to allow timely
decisions regarding required disclosure.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a) (2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a- 2(b) under the Investment Company Act of 1940.
<Page>
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 REIT AND UTILITY INCOME FUND, INC.
By: /s/ Adam M. Derechin
-------------------------------
Name: Adam M. Derechin
Title: President and Chief Executive Officer
Date: August 24, 2005
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/ Adam M. Derechin
-------------------------------
Name: Adam M. Derechin
Title: President and Chief Executive Officer
(principal executive officer)
By: /s/ Jay J. Chen
----------------------------------------
Name: Jay J. Chen
Title: Treasurer
(principal financial officer)
Date: August 24, 2005
STATEMENT OF DIFFERENCES
------------------------
The division sign shall be expressed as ................................. [div]
The section symbol shall be expressed as................................. 'SS'