Cohen & Steers Realty Shares, Inc.

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PORTFOLIO TRANSACTIONS AND BROKERAGE

Subject to the supervision of the Board of Directors, decisions to buy and sell securities for the Fund and negotiation of its brokerage
commission rates are made by the Advisor. Transactions on U.S. stock exchanges involve the payment by the Fund of negotiated
brokerage commissions. There is generally no stated commission in the case of securities traded in the over-the-counter market but the
price paid by the Fund usually includes an undisclosed dealer commission or mark-up. In certain instances, the Fund may make
purchases of underwritten or agency placed issues at prices that reflect underwriting or placement fees. In accordance with procedures
approved by the Board, and subject to their supervision, the Fund may purchase securities in offerings for which an affiliate of the
Advisor receives a fee for serving as placement agent to the issuer. The Advisor will only cause the Fund to engage in these
transactions if the Advisor deems such participation to be in the best interests of the Fund. In certain circumstances, regulatory
restrictions may prevent the Fund from purchasing securities in an offering in which the Advisor’s affiliate serves as placement agent
of the issuer, and the Fund’s inability to participate could be deemed to be to the detriment of the Fund.
In selecting a broker to execute each particular transaction, the Advisor will take the following into consideration: the best net price
available; the reliability, integrity and financial condition of the broker; the size and difficulty in executing the order; and the value of
the expected contribution of the broker to the investment performance of the Fund on a continuing basis. Accordingly, the cost of the
brokerage commissions to the Fund in any transaction may be greater than that available from other brokers if the difference is
reasonably justified by other aspects of the portfolio execution services offered.
In addition, the Advisor may receive research services from a broker in connection with initiating portfolio transactions for the Fund.
Research services include pricing and market data services. The Advisor shall not be deemed to have acted unlawfully or to have
breached any duty solely by reason of its having caused the Fund to pay a broker an amount of commission for effecting a portfolio
investment transaction in excess of the amount of commission another broker would have charged solely for execution services for
that transaction if the Advisor determines in good faith that the commission was reasonable in relation to the value of the research
service provided.
Research and investment information is provided by these and other brokers at no cost to the Advisor and is available for the benefit
of other accounts advised by the Advisor and its affiliates, and not all of the information will be used in connection with the Fund.
While this information may be useful in varying degrees and may tend to reduce the Advisor’s expenses, it is not possible to estimate
its value and in the opinion of the Advisor it does not reduce the Advisor’s expenses in a determinable amount. The extent to which
the Advisor makes use of statistical, research and other services furnished by brokers is considered by the Advisor in the allocation of
brokerage business but there is no formula by which such business is allocated. The Advisor does so in accordance with its judgment
of the best interests of the Fund and its shareholders. The Advisor may also take into account payments made by brokers effecting
transactions for the Fund to other persons on behalf of the Fund for services provided to it for
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http://sec.gov/Archives/edgar/data/874505/000119312507095826/d485bpos.htm 5/15/2007
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which it would be obligated to pay (such as custodial and professional fees).

For the fiscal years ended December 31, 2006, 2005 and 2004, the Fund paid a total of $2,070,338, $1,620,162 and $1,539,475,
respectively, in brokerage commissions. Of such amount, $1,922,201, $276,493 and $558,594, respectively, was placed with brokers
or dealers who provide research and investment information. The Fund’s portfolio turnover rate for the fiscal year ended
December 31, 2006 was 31%.

http://sec.gov/Archives/edgar/data/874505/000119312507095826/d485bpos.htm 5/15/2007