8-K
COHEN & STEERS, INC. (CNS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
_____________________
CURRENT REPORT
Pursuant to section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 17, 2023
_____________________
Cohen & Steers, Inc.
(Exact Name of Registrant as Specified in Charter)
_____________________
| Delaware | 001-32236 | 14-1904657 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
280 Park Avenue
New York, NY 10017
(Address of principal executive offices and Zip Code)
(212) 832-3232
(Registrant's telephone number, including area code)
| _________________________________________<br><br>(Former name or former address, if changed since last report) |
|---|
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:Title of each class Trading Symbol(s)Name of each exchange on which registeredCommon Stock, $0.01 par valueCNSNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On October 18, 2023, Cohen & Steers, Inc. (the Company) reported, among other things, the Company’s results for the quarter ended September 30, 2023. Copies of the press release announcing the availability of the Company’s results and the full earnings release are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
The information contained under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and, as a result, such information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 17, 2023, Matthew S. Stadler provided notice to the Company of his intention to retire from his positions as Executive Vice President and Chief Financial Officer of the Company, after nearly 19 years of service to the Company and a 43 year career in the financial services industry.
Mr. Stadler provided his retirement notice in accordance with the Company’s established protocols related to long-term executive succession planning. To ensure an orderly transition of responsibilities, Mr. Stadler and the Company have mutually agreed that his retirement from such positions will be effective in 2024, upon the appointment of his successor.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The exhibits listed on the exhibit index accompanying this Current Report on Form 8-K are furnished herewith.
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Earnings announcement press release dated October 18, 2023 |
| 99.2 | Earnings release dated October 18, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Cohen & Steers, Inc.<br><br>(Registrant) | ||
|---|---|---|
| Date: October 18, 2023 | By: | /s/ Matthew S. Stadler |
| --- | --- | --- |
| Name: Matthew S. Stadler<br><br>Title: Executive Vice President and Chief Financial Officer |
Document
Cohen & Steers, Inc.
280 Park Avenue
New York, NY 10017-1216
Tel (212) 832-3232
Contact:
Matthew S. Stadler
Executive Vice President
Chief Financial Officer
Cohen & Steers, Inc.
Tel (212) 446-9168
COHEN & STEERS REPORTS RESULTS FOR THIRD QUARTER 2023
New York, NY, October 18, 2023—Cohen & Steers, Inc. (NYSE: CNS) today reported its results for the quarter ended September 30, 2023. The earnings release along with the accompanying earnings presentation can be viewed at Cohen & Steers Reports Results for Third Quarter 2023 and on the company’s website at www.cohenandsteers.com under "Company—Investor Relations—Earnings Archive."
Conference Call
The company will host a conference call tomorrow, October 19, 2023, at 10:00 a.m. (ET) to discuss these results via webcast and telephone. Hosting the call will be chief executive officer and president, Joseph Harvey, chief financial officer, Matthew Stadler, and chief investment officer, Jon Cheigh.
Investors and analysts can access the live conference call by dialing 888-300-4150 (U.S.) or +1- 646-970-1530 (international); passcode: 4855092. Participants should plan to register at least 10 minutes before the conference call begins. A replay of the call will be available for two weeks starting approximately two hours after the conference call concludes on October 19, 2023 and can be accessed at 800-770-2030 (U.S.) or +1-647-362-9199 (international); passcode: 4855092. Internet access to the webcast, which includes audio (listen-only), will be available on the company's website at www.cohenandsteers.com under "Company—Investor Relations" under “Financials." The webcast will be archived on the website for one month.
About Cohen & Steers
Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.
Document
Contact:
Matthew S. Stadler
Executive Vice President
Chief Financial Officer
Cohen & Steers, Inc.
Tel (212) 446-9168
COHEN & STEERS REPORTS RESULTS FOR THIRD QUARTER 2023
•Diluted EPS of $0.65; $0.70, as adjusted
•Operating margin of 33.0%; 35.5%, as adjusted
•Ending AUM of $75.2 billion; average AUM of $80.0 billion
•Net outflows of $47 million
NEW YORK, NY, October 18, 2023—Cohen & Steers, Inc. (NYSE: CNS) today reported its results for the quarter ended September 30, 2023.
Financial Highlights
| (in thousands, except percentages and per share data) | Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30,<br>2023 | June 30,<br>2023 | Change | % Change | ||||||
| U.S. GAAP | |||||||||
| Revenue | $ | 123,737 | $ | 120,630 | 2.6 | % | |||
| Expenses | $ | 82,866 | $ | 79,789 | 3.9 | % | |||
| Operating income | $ | 40,871 | $ | 40,841 | 0.1 | % | |||
| Non-operating income (loss) (1) | $ | (5,159) | $ | 2,650 | * | ||||
| Net income attributable to common stockholders | $ | 32,140 | $ | 31,778 | 1.1 | % | |||
| Diluted earnings per share | $ | 0.65 | $ | 0.64 | 0.8 | % | |||
| Operating margin | 33.0 | % | 33.9 | % | N/A | (90 bps) | |||
| As Adjusted (2) | |||||||||
| Net income attributable to common stockholders | $ | 34,772 | $ | 34,742 | 0.1 | % | |||
| Diluted earnings per share | $ | 0.70 | $ | 0.70 | — | % | |||
| Operating margin | 35.5 | % | 36.4 | % | N/A | (90 bps) | |||
| _________________________<br><br>(1)Included amounts attributable to third-party interests in consolidated investment vehicles. Refer to non-operating income (loss) tables on page 3 for additional detail.<br><br>(2)Refer to pages 18-19 for reconciliations of U.S. GAAP to as adjusted results. |
All values are in US Dollars.
Revenue
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| September 30,<br>2023 | June 30,<br>2023 | Change | % Change | ||||
| Investment advisory and administration fees: | |||||||
| Open-end funds | $ | 60,239 | $ | 59,062 | 2.0 | % | |
| Institutional accounts | 31,845 | 30,166 | 5.6 | % | |||
| Closed-end funds | 24,142 | 23,890 | 1.1 | % | |||
| Total | 116,226 | 113,118 | 2.7 | % | |||
| Distribution and service fees | 7,014 | 6,977 | 0.5 | % | |||
| Other | 497 | 535 | (7.1 | %) | |||
| Total revenue | $ | 123,737 | $ | 120,630 | 2.6 | % |
All values are in US Dollars.
•The increase in total investment advisory and administration fees from the second quarter of 2023 was primarily due to the recognition of performance fees from certain institutional accounts of $1.2 million, as well as one additional day in the quarter.
Expenses
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| September 30,<br>2023 | June 30,<br>2023 | Change | % Change | ||||
| Employee compensation and benefits | $ | 52,830 | $ | 48,893 | 8.1 | % | |
| Distribution and service fees | 13,689 | 13,329 | 2.7 | % | |||
| General and administrative | 15,546 | 16,728 | (7.1 | %) | |||
| Depreciation and amortization | 801 | 839 | (4.5 | %) | |||
| Total expenses | $ | 82,866 | $ | 79,789 | 3.9 | % |
All values are in US Dollars.
•Employee compensation and benefits increased from the second quarter of 2023, primarily due to an increase in incentive compensation of $5.4 million, partially offset by lower severance costs of $1.6 million; and
•General and administrative expenses decreased from the second quarter of 2023, primarily due to lower than projected costs related to the company’s newly implemented trading and order management system of $1.4 million as well as a reduction in recruitment fees of $375,000, partially offset by increases in business related travel and hosted conferences of $724,000.
Operating Margin
Operating margin was 33.0% for the third quarter of 2023, compared with 33.9% for the second quarter of 2023. Operating margin represents the ratio of operating income to revenue.
Non-operating Income (Loss)
| (in thousands) | Three Months Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2023 | ||||||||||||||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | |||||||||||||||||
| Interest and dividend income—net | $ | 705 | $ | 822 | $ | 2,236 | $ | 3,763 | ||||||||||||
| Gain (loss) from investments—net | (11,436) | (767) | 2,147 | (1) | (10,056) | |||||||||||||||
| Foreign currency gain (loss)—net | (119) | (19) | 1,272 | (2) | 1,134 | |||||||||||||||
| Total non-operating income (loss) | (10,850) | 36 | 5,655 | (5,159) | ||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | 6,971 | — | — | 6,971 | ||||||||||||||||
| Non-operating income (loss) attributable to the company | $ | (3,879) | $ | 36 | $ | 5,655 | $ | 1,812 | ||||||||||||
| _________________________<br><br>(1)Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the company's seed investments included in both Consolidated Investment Vehicles and Corporate Seed Investments.<br><br>(2)Comprised primarily of net foreign currency exchange gain (loss) associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. | (in thousands) | Three Months Ended | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| June 30, 2023 | ||||||||||||||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | |||||||||||||||||
| Interest and dividend income—net | $ | 1,050 | $ | 939 | $ | 1,439 | $ | 3,428 | ||||||||||||
| Gain (loss) from investments—net | 13 | 25 | 318 | (1) | 356 | |||||||||||||||
| Foreign currency gain (loss)—net | (88) | 1 | (1,047) | (2) | (1,134) | |||||||||||||||
| Total non-operating income (loss) | 975 | 965 | 710 | 2,650 | ||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (727) | — | — | (727) | ||||||||||||||||
| Non-operating income (loss) attributable to the company | $ | 248 | $ | 965 | $ | 710 | $ | 1,923 | ||||||||||||
| _________________________<br><br>(1)Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the company's seed investments included in both Consolidated Investment Vehicles and Corporate Seed Investments.<br><br>(2)Comprised primarily of net foreign currency exchange gain (loss) associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. |
Income Taxes
A reconciliation of the company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table:
| Three Months Ended | ||||
|---|---|---|---|---|
| September 30,<br>2023 | June 30,<br>2023 | |||
| U.S. statutory tax rate | 21.0 | % | 21.0 | % |
| State and local income taxes, net of federal benefit | 3.1 | 3.1 | ||
| Non-deductible executive compensation | 1.5 | 1.4 | ||
| Other | (0.9) | 0.2 | ||
| Effective income tax rate | 24.7 | % | 25.7 | % |
Assets Under Management
| (in millions) | As of | Change | |||||
|---|---|---|---|---|---|---|---|
| September 30,<br>2023 | June 30,<br>2023 | % | |||||
| By Investment Vehicle | |||||||
| Open-end funds | $ | 33,671 | $ | 36,209 | (7.0 | %) | |
| Institutional accounts | 31,216 | 33,275 | (6.2 | %) | |||
| Closed-end funds | 10,271 | 10,929 | (6.0 | %) | |||
| Total | $ | 75,158 | $ | 80,413 | (6.5 | %) | |
| By Investment Strategy | |||||||
| U.S. real estate | $ | 33,719 | $ | 36,948 | (8.7 | %) | |
| Preferred securities | 17,561 | 18,009 | (2.5 | %) | |||
| Global/international real estate | 14,103 | 14,838 | (5.0 | %) | |||
| Global listed infrastructure | 7,582 | 8,379 | (9.5 | %) | |||
| Other | 2,193 | 2,239 | (2.1 | %) | |||
| Total | $ | 75,158 | $ | 80,413 | (6.5 | %) |
All values are in US Dollars.
Assets under management at September 30, 2023 were $75.2 billion, a decrease of 6.5% from $80.4 billion at June 30, 2023. The decrease was due to net outflows of $47 million, market depreciation of $4.6 billion and distributions of $604 million.
Open-end Funds
Assets under management in open-end funds at September 30, 2023 were $33.7 billion, a decrease of 7.0% from $36.2 billion at June 30, 2023. The decrease was primarily due to the following:
•Net outflows of $207 million from preferred securities and $105 million from real assets multi-strategy (included in "Other" in the Assets under Management - By Investment Strategy table);
•Market depreciation of $1.7 billion from U.S. real estate; and
•Distributions of $132 million from preferred securities and $127 million from U.S. real estate. Of these distributions, $219 million was reinvested and included in net flows.
Institutional Accounts
Assets under management in institutional accounts at September 30, 2023 were $31.2 billion, a decrease of 6.2% from $33.3 billion at June 30, 2023. The decrease was primarily due to the following:
•Advisory:
◦Net inflows of $244 million into global/international real estate and $86 million into U.S. real estate, partially offset by net outflows of $112 million from preferred securities; and
◦Market depreciation of $444 million from global/international real estate, $412 million from U.S. real estate and $262 million from global listed infrastructure.
•Japan subadvisory:
◦Market depreciation of $549 million from U.S. real estate; and
◦Distributions of $180 million from U.S. real estate.
•Subadvisory excluding Japan:
◦Net inflows of $116 million from real assets multi-strategy (included in "Other" in the Assets under Management - By Investment Strategy table); and
◦Market depreciation of $187 million from global/international real estate, $99 million from global listed infrastructure and $95 million from U.S. real estate.
Closed-end Funds
Assets under management in closed-end funds at September 30, 2023 were $10.3 billion, a decrease of 6.0% from $10.9 billion at June 30, 2023. The decrease was primarily due to market depreciation of $506 million and distributions of $154 million.
Investment Performance at September 30, 2023
_________________________
(1) Past performance is no guarantee of future results. Outperformance is determined by comparing the annualized investment performance of each investment strategy to the performance of specified reference benchmarks. Investment performance in excess of the performance of the benchmark is considered outperformance. The investment performance calculation of each investment strategy is based on all active accounts and investment models pursuing similar investment objectives. For accounts, actual investment performance is measured gross of fees and net of withholding taxes. For investment models, for which actual investment performance does not exist, the investment performance of a composite of accounts pursuing comparable investment objectives is used as a proxy for actual investment performance. The performance of the specified reference benchmark for each account and investment model is measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.
(2) © 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar calculates its ratings based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. Past performance is no guarantee of future results. Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-registered mutual fund for all share classes for the overall period at September 30, 2023. Overall Morningstar rating is a weighted average based on the 3-year, 5-year and 10-year Morningstar rating. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.
Balance Sheet Information
As of September 30, 2023, cash, cash equivalents, U.S. Treasurys and liquid seed investments were $279.9 million, compared with $257.9 million as of June 30, 2023. As of September 30, 2023, stockholders' equity was $366.6 million, compared with $353.2 million as of June 30, 2023.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, October 19, 2023 at 10:00 a.m. (ET) to discuss the company's third quarter results. Investors and analysts can access the live conference call by dialing 888-300-4150 (U.S.) or +1-646-970-1530 (international); passcode: 4855092. Participants should plan to register at least 10 minutes before the conference call begins. The accompanying presentation will be available on the company's website at www.cohenandsteers.com under “Company—Investor Relations—Earnings Archive.”
A replay of the call will be available for two weeks starting approximately two hours after the conference call concludes on October 19, 2023 and can be accessed at 800-770-2030 (U.S.) or +1-647-362-9199 (international); passcode: 4855092. Internet access to the webcast, which includes audio (listen-only), will be available on the company’s website at www.cohenandsteers.com under “Company—Investor Relations" under "Financials.” The webcast will be archived on the website for one month.
About Cohen & Steers
Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.
Forward-Looking Statements
This press release and other statements that Cohen & Steers may make may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the company's current views with respect to, among other things, the company's operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative versions of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these forward-looking statements. The company believes that these factors include, but are not limited to, the risks described in the Risk Factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2022 (the Form 10-K), which is accessible on the Securities and Exchange Commission's website at www.sec.gov and on the company's website at www.cohenandsteers.com. These factors are not exhaustive and should be read in conjunction with the other cautionary statements that are included in the company's Form 10-K and other filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
# #
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | June 30,<br>2023 | September 30,<br>2022 | |||||||||
| Revenue: | |||||||||||||
| Investment advisory and administration fees | $ | 116,226 | $ | 113,118 | $ | 130,885 | |||||||
| Distribution and service fees | 7,014 | 6,977 | 8,557 | ||||||||||
| Other | 497 | 535 | 509 | ||||||||||
| Total revenue | 123,737 | 120,630 | 139,951 | 2.6 | % | (11.6 | %) | ||||||
| Expenses: | |||||||||||||
| Employee compensation and benefits | 52,830 | 48,893 | 51,669 | ||||||||||
| Distribution and service fees | 13,689 | 13,329 | 16,418 | ||||||||||
| General and administrative | 15,546 | 16,728 | 13,548 | ||||||||||
| Depreciation and amortization | 801 | 839 | 1,135 | ||||||||||
| Total expenses | 82,866 | 79,789 | 82,770 | 3.9 | % | 0.1 | % | ||||||
| Operating income | 40,871 | 40,841 | 57,181 | 0.1 | % | (28.5 | %) | ||||||
| Non-operating income (loss): | |||||||||||||
| Interest and dividend income—net | 3,763 | 3,428 | 1,541 | ||||||||||
| Gain (loss) from investments—net | (10,056) | 356 | (5,920) | ||||||||||
| Foreign currency gain (loss)—net | 1,134 | (1,134) | 2,405 | ||||||||||
| Total non-operating income (loss) | (5,159) | 2,650 | (1,974) | * | * | ||||||||
| Income before provision for income taxes | 35,712 | 43,491 | 55,207 | (17.9 | %) | (35.3 | %) | ||||||
| Provision for income taxes | 10,543 | 10,986 | 15,593 | ||||||||||
| Net income | 25,169 | 32,505 | 39,614 | (22.6 | %) | (36.5 | %) | ||||||
| Net (income) loss attributable to noncontrolling interests | 6,971 | (727) | 4,956 | ||||||||||
| Net income attributable to common stockholders | $ | 32,140 | $ | 31,778 | $ | 44,570 | 1.1 | % | (27.9 | %) | |||
| Earnings per share attributable to common<br>stockholders: | |||||||||||||
| Basic | $ | 0.65 | $ | 0.64 | $ | 0.91 | 1.1 | % | (28.7 | %) | |||
| Diluted | $ | 0.65 | $ | 0.64 | $ | 0.90 | 0.8 | % | (28.3 | %) | |||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 49,351 | 49,315 | 48,815 | ||||||||||
| Diluted | 49,617 | 49,463 | 49,317 | ||||||||||
| _________________________<br><br>* Not meaningful. | |||||||||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | |||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| Nine Months Ended | |||||||||||||
| September 30,<br>2023 | September 30,<br>2022 | % Change | |||||||||||
| Revenue: | |||||||||||||
| Investment advisory and administration fees | $ | 347,378 | $ | 412,209 | |||||||||
| Distribution and service fees | 21,553 | 27,431 | |||||||||||
| Other | 1,518 | 1,931 | |||||||||||
| Total revenue | 370,449 | 441,571 | (16.1 | %) | |||||||||
| Expenses: | |||||||||||||
| Employee compensation and benefits | 150,580 | 160,269 | |||||||||||
| Distribution and service fees | 41,234 | 68,605 | |||||||||||
| General and administrative | 49,396 | 40,296 | |||||||||||
| Depreciation and amortization | 2,628 | 3,235 | |||||||||||
| Total expenses | 243,838 | 272,405 | (10.5 | %) | |||||||||
| Operating income | 126,611 | 169,166 | (25.2 | %) | |||||||||
| Non-operating income (loss): | |||||||||||||
| Interest and dividend income—net | 10,407 | 4,326 | |||||||||||
| Gain (loss) from investments—net | (10,008) | (30,926) | |||||||||||
| Foreign currency gain (loss)—net | (1,276) | 4,734 | |||||||||||
| Total non-operating income (loss) | (877) | (21,866) | 96.0 | % | |||||||||
| Income before provision for income taxes | 125,734 | 147,300 | (14.6 | %) | |||||||||
| Provision for income taxes | 31,762 | 34,696 | |||||||||||
| Net income | 93,972 | 112,604 | (16.5 | %) | |||||||||
| Net (income) loss attributable to noncontrolling interests | 5,260 | 25,940 | |||||||||||
| Net income attributable to common stockholders | $ | 99,232 | $ | 138,544 | (28.4 | %) | |||||||
| Earnings per share attributable to common stockholders: | |||||||||||||
| Basic | $ | 2.01 | $ | 2.84 | (29.1 | %) | |||||||
| Diluted | $ | 2.00 | $ | 2.81 | (28.7 | %) | |||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 49,289 | 48,765 | |||||||||||
| Diluted | 49,495 | 49,287 | |||||||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Vehicle | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | June 30,<br>2023 | September 30,<br>2022 | |||||||||
| Open-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 36,209 | $ | 36,427 | $ | 41,583 | |||||||
| Inflows | 2,412 | 2,782 | 4,019 | ||||||||||
| Outflows | (2,772) | (3,290) | (4,751) | ||||||||||
| Net inflows (outflows) | (360) | (508) | (732) | ||||||||||
| Market appreciation (depreciation) | (1,916) | 794 | (3,212) | ||||||||||
| Distributions | (262) | (344) | (293) | ||||||||||
| Transfers | — | (160) | — | ||||||||||
| Total increase (decrease) | (2,538) | (218) | (4,237) | ||||||||||
| Assets under management, end of period | $ | 33,671 | $ | 36,209 | $ | 37,346 | (7.0 | %) | (9.8 | %) | |||
| Percentage of total assets under management | 44.8 | % | 45.0 | % | 47.2 | % | |||||||
| Average assets under management | $ | 35,878 | $ | 35,911 | $ | 42,322 | (0.1 | %) | (15.2 | %) | |||
| Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 33,275 | $ | 32,604 | $ | 34,506 | |||||||
| Inflows | 925 | 670 | 1,374 | ||||||||||
| Outflows | (614) | (676) | (1,251) | ||||||||||
| Net inflows (outflows) | 311 | (6) | 123 | ||||||||||
| Market appreciation (depreciation) | (2,182) | 776 | (3,527) | ||||||||||
| Distributions | (188) | (259) | (235) | ||||||||||
| Transfers | — | 160 | — | ||||||||||
| Total increase (decrease) | (2,059) | 671 | (3,639) | ||||||||||
| Assets under management, end of period | $ | 31,216 | $ | 33,275 | $ | 30,867 | (6.2 | %) | 1.1 | % | |||
| Percentage of total assets under management | 41.5 | % | 41.4 | % | 39.0 | % | |||||||
| Average assets under management | $ | 33,304 | $ | 32,682 | $ | 35,396 | 1.9 | % | (5.9 | %) | |||
| Closed-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 10,929 | $ | 10,874 | $ | 11,773 | |||||||
| Inflows | 3 | 2 | 11 | ||||||||||
| Outflows | (1) | — | — | ||||||||||
| Net inflows (outflows) | 2 | 2 | 11 | ||||||||||
| Market appreciation (depreciation) | (506) | 207 | (647) | ||||||||||
| Distributions | (154) | (154) | (152) | ||||||||||
| Total increase (decrease) | (658) | 55 | (788) | ||||||||||
| Assets under management, end of period | $ | 10,271 | $ | 10,929 | $ | 10,985 | (6.0 | %) | (6.5 | %) | |||
| Percentage of total assets under management | 13.7 | % | 13.6 | % | 13.9 | % | |||||||
| Average assets under management | $ | 10,784 | $ | 10,813 | $ | 12,025 | (0.3 | %) | (10.3 | %) | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 80,413 | $ | 79,905 | $ | 87,862 | |||||||
| Inflows | 3,340 | 3,454 | 5,404 | ||||||||||
| Outflows | (3,387) | (3,966) | (6,002) | ||||||||||
| Net inflows (outflows) | (47) | (512) | (598) | ||||||||||
| Market appreciation (depreciation) | (4,604) | 1,777 | (7,386) | ||||||||||
| Distributions | (604) | (757) | (680) | ||||||||||
| Total increase (decrease) | (5,255) | 508 | (8,664) | ||||||||||
| Assets under management, end of period | $ | 75,158 | $ | 80,413 | $ | 79,198 | (6.5 | %) | (5.1 | %) | |||
| Average assets under management | $ | 79,966 | $ | 79,406 | $ | 89,743 | 0.7 | % | (10.9 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management | |||||||||||||
| By Investment Vehicle | |||||||||||||
| (in millions) | |||||||||||||
| Nine Months Ended | |||||||||||||
| September 30,<br>2023 | September 30,<br>2022 | % Change | |||||||||||
| Open-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 36,903 | $ | 50,911 | |||||||||
| Inflows | 8,668 | 13,764 | |||||||||||
| Outflows | (9,841) | (14,532) | |||||||||||
| Net inflows (outflows) | (1,173) | (768) | |||||||||||
| Market appreciation (depreciation) | (1,012) | (11,601) | |||||||||||
| Distributions | (887) | (1,196) | |||||||||||
| Transfers | (160) | — | |||||||||||
| Total increase (decrease) | (3,232) | (13,565) | |||||||||||
| Assets under management, end of period | $ | 33,671 | $ | 37,346 | (9.8 | %) | |||||||
| Percentage of total assets under management | 44.8 | % | 47.2 | % | |||||||||
| Average assets under management | $ | 36,739 | $ | 45,174 | (18.7 | %) | |||||||
| Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 32,373 | $ | 42,727 | |||||||||
| Inflows | 2,310 | 4,693 | |||||||||||
| Outflows | (2,123) | (5,051) | |||||||||||
| Net inflows (outflows) | 187 | (358) | |||||||||||
| Market appreciation (depreciation) | (798) | (10,754) | |||||||||||
| Distributions | (706) | (748) | |||||||||||
| Transfers | 160 | — | |||||||||||
| Total increase (decrease) | (1,157) | (11,860) | |||||||||||
| Assets under management, end of period | $ | 31,216 | $ | 30,867 | 1.1 | % | |||||||
| Percentage of total assets under management | 41.5 | % | 39.0 | % | |||||||||
| Average assets under management | $ | 33,136 | $ | 37,823 | (12.4 | %) | |||||||
| Closed-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 11,149 | $ | 12,991 | |||||||||
| Inflows | 16 | 567 | |||||||||||
| Outflows | (86) | — | |||||||||||
| Net inflows (outflows) | (70) | 567 | |||||||||||
| Market appreciation (depreciation) | (346) | (2,121) | |||||||||||
| Distributions | (462) | (452) | |||||||||||
| Total increase (decrease) | (878) | (2,006) | |||||||||||
| Assets under management, end of period | $ | 10,271 | $ | 10,985 | (6.5 | %) | |||||||
| Percentage of total assets under management | 13.7 | % | 13.9 | % | |||||||||
| Average assets under management | $ | 10,981 | $ | 12,333 | (11.0 | %) | |||||||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 80,425 | $ | 106,629 | |||||||||
| Inflows | 10,994 | 19,024 | |||||||||||
| Outflows | (12,050) | (19,583) | |||||||||||
| Net inflows (outflows) | (1,056) | (559) | |||||||||||
| Market appreciation (depreciation) | (2,156) | (24,476) | |||||||||||
| Distributions | (2,055) | (2,396) | |||||||||||
| Total increase (decrease) | (5,267) | (27,431) | |||||||||||
| Assets under management, end of period | $ | 75,158 | $ | 79,198 | (5.1 | %) | |||||||
| Average assets under management | $ | 80,856 | $ | 95,330 | (15.2 | %) | |||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management - Institutional Accounts | |||||||||||||
| By Account Type | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | June 30,<br>2023 | September 30,<br>2022 | |||||||||
| Advisory | |||||||||||||
| Assets under management, beginning of period | $ | 18,824 | $ | 18,490 | $ | 20,135 | |||||||
| Inflows | 502 | 282 | 813 | ||||||||||
| Outflows | (312) | (496) | (1,033) | ||||||||||
| Net inflows (outflows) | 190 | (214) | (220) | ||||||||||
| Market appreciation (depreciation) | (1,110) | 388 | (1,941) | ||||||||||
| Transfers | — | 160 | — | ||||||||||
| Total increase (decrease) | (920) | 334 | (2,161) | ||||||||||
| Assets under management, end of period | $ | 17,904 | $ | 18,824 | $ | 17,974 | (4.9 | %) | (0.4 | %) | |||
| Percentage of institutional assets under management | 57.4 | % | 56.6 | % | 58.2 | % | |||||||
| Average assets under management | $ | 18,958 | $ | 18,602 | $ | 20,685 | 1.9 | % | (8.3 | %) | |||
| Japan Subadvisory | |||||||||||||
| Assets under management, beginning of period | $ | 8,960 | $ | 8,713 | $ | 8,939 | |||||||
| Inflows | 114 | 283 | 193 | ||||||||||
| Outflows | (116) | (89) | (61) | ||||||||||
| Net inflows (outflows) | (2) | 194 | 132 | ||||||||||
| Market appreciation (depreciation) | (680) | 312 | (921) | ||||||||||
| Distributions | (188) | (259) | (235) | ||||||||||
| Total increase (decrease) | (870) | 247 | (1,024) | ||||||||||
| Assets under management, end of period | $ | 8,090 | $ | 8,960 | $ | 7,915 | (9.7 | %) | 2.2 | % | |||
| Percentage of institutional assets under management | 25.9 | % | 26.9 | % | 25.6 | % | |||||||
| Average assets under management | $ | 8,810 | $ | 8,653 | $ | 9,082 | 1.8 | % | (3.0 | %) | |||
| Subadvisory Excluding Japan | |||||||||||||
| Assets under management, beginning of period | $ | 5,491 | $ | 5,401 | $ | 5,432 | |||||||
| Inflows | 309 | 105 | 368 | ||||||||||
| Outflows | (186) | (91) | (157) | ||||||||||
| Net inflows (outflows) | 123 | 14 | 211 | ||||||||||
| Market appreciation (depreciation) | (392) | 76 | (665) | ||||||||||
| Total increase (decrease) | (269) | 90 | (454) | ||||||||||
| Assets under management, end of period | $ | 5,222 | $ | 5,491 | $ | 4,978 | (4.9 | %) | 4.9 | % | |||
| Percentage of institutional assets under management | 16.7 | % | 16.5 | % | 16.1 | % | |||||||
| Average assets under management | $ | 5,536 | $ | 5,427 | $ | 5,629 | 2.0 | % | (1.7 | %) | |||
| Total Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 33,275 | $ | 32,604 | $ | 34,506 | |||||||
| Inflows | 925 | 670 | 1,374 | ||||||||||
| Outflows | (614) | (676) | (1,251) | ||||||||||
| Net inflows (outflows) | 311 | (6) | 123 | ||||||||||
| Market appreciation (depreciation) | (2,182) | 776 | (3,527) | ||||||||||
| Distributions | (188) | (259) | (235) | ||||||||||
| Transfers | — | 160 | — | ||||||||||
| Total increase (decrease) | (2,059) | 671 | (3,639) | ||||||||||
| Assets under management, end of period | $ | 31,216 | $ | 33,275 | $ | 30,867 | (6.2 | %) | 1.1 | % | |||
| Average assets under management | $ | 33,304 | $ | 32,682 | $ | 35,396 | 1.9 | % | (5.9 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management - Institutional Accounts | |||||||||||||
| By Account Type | |||||||||||||
| (in millions) | |||||||||||||
| Nine Months Ended | |||||||||||||
| September 30,<br>2023 | September 30,<br>2022 | % Change | |||||||||||
| Advisory | |||||||||||||
| Assets under management, beginning of period | $ | 18,631 | $ | 24,599 | |||||||||
| Inflows | 1,006 | 3,155 | |||||||||||
| Outflows | (1,429) | (3,825) | |||||||||||
| Net inflows (outflows) | (423) | (670) | |||||||||||
| Market appreciation (depreciation) | (464) | (5,955) | |||||||||||
| Transfers | 160 | — | |||||||||||
| Total increase (decrease) | (727) | (6,625) | |||||||||||
| Assets under management, end of period | $ | 17,904 | $ | 17,974 | (0.4 | %) | |||||||
| Percentage of institutional assets under management | 57.4 | % | 58.2 | % | |||||||||
| Average assets under management | $ | 18,894 | $ | 22,127 | (14.6 | %) | |||||||
| Japan Subadvisory | |||||||||||||
| Assets under management, beginning of period | $ | 8,376 | $ | 11,329 | |||||||||
| Inflows | 782 | 661 | |||||||||||
| Outflows | (264) | (390) | |||||||||||
| Net inflows (outflows) | 518 | 271 | |||||||||||
| Market appreciation (depreciation) | (98) | (2,937) | |||||||||||
| Distributions | (706) | (748) | |||||||||||
| Total increase (decrease) | (286) | (3,414) | |||||||||||
| Assets under management, end of period | $ | 8,090 | $ | 7,915 | 2.2 | % | |||||||
| Percentage of institutional assets under management | 25.9 | % | 25.6 | % | |||||||||
| Average assets under management | $ | 8,734 | $ | 9,674 | (9.7 | %) | |||||||
| Subadvisory Excluding Japan | |||||||||||||
| Assets under management, beginning of period | $ | 5,366 | $ | 6,799 | |||||||||
| Inflows | 522 | 877 | |||||||||||
| Outflows | (430) | (836) | |||||||||||
| Net inflows (outflows) | 92 | 41 | |||||||||||
| Market appreciation (depreciation) | (236) | (1,862) | |||||||||||
| Total increase (decrease) | (144) | (1,821) | |||||||||||
| Assets under management, end of period | $ | 5,222 | $ | 4,978 | 4.9 | % | |||||||
| Percentage of institutional assets under management | 16.7 | % | 16.1 | % | |||||||||
| Average assets under management | $ | 5,508 | $ | 6,022 | (8.5 | %) | |||||||
| Total Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 32,373 | $ | 42,727 | |||||||||
| Inflows | 2,310 | 4,693 | |||||||||||
| Outflows | (2,123) | (5,051) | |||||||||||
| Net inflows (outflows) | 187 | (358) | |||||||||||
| Market appreciation (depreciation) | (798) | (10,754) | |||||||||||
| Distributions | (706) | (748) | |||||||||||
| Transfers | 160 | — | |||||||||||
| Total increase (decrease) | (1,157) | (11,860) | |||||||||||
| Assets under management, end of period | $ | 31,216 | $ | 30,867 | 1.1 | % | |||||||
| Average assets under management | $ | 33,136 | $ | 37,823 | (12.4 | %) | |||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | June 30,<br>2023 | September 30,<br>2022 | |||||||||
| U.S. Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 36,948 | $ | 36,080 | $ | 40,178 | |||||||
| Inflows | 1,493 | 1,614 | 2,143 | ||||||||||
| Outflows | (1,312) | (1,500) | (3,082) | ||||||||||
| Net inflows (outflows) | 181 | 114 | (939) | ||||||||||
| Market appreciation (depreciation) | (3,056) | 1,210 | (4,129) | ||||||||||
| Distributions | (359) | (456) | (414) | ||||||||||
| Transfers | 5 | — | — | ||||||||||
| Total increase (decrease) | (3,229) | 868 | (5,482) | ||||||||||
| Assets under management, end of period | $ | 33,719 | $ | 36,948 | $ | 34,696 | (8.7 | %) | (2.8 | %) | |||
| Percentage of total assets under management | 44.9 | % | 45.9 | % | 43.8 | % | |||||||
| Average assets under management | $ | 36,494 | $ | 35,800 | $ | 40,910 | 1.9 | % | (10.8 | %) | |||
| Preferred Securities | |||||||||||||
| Assets under management, beginning of period | $ | 18,009 | $ | 18,210 | $ | 21,449 | |||||||
| Inflows | 1,011 | 1,241 | 1,899 | ||||||||||
| Outflows | (1,327) | (1,606) | (2,225) | ||||||||||
| Net inflows (outflows) | (316) | (365) | (326) | ||||||||||
| Market appreciation (depreciation) | 56 | 348 | (404) | ||||||||||
| Distributions | (183) | (184) | (200) | ||||||||||
| Transfers | (5) | — | — | ||||||||||
| Total increase (decrease) | (448) | (201) | (930) | ||||||||||
| Assets under management, end of period | $ | 17,561 | $ | 18,009 | $ | 20,519 | (2.5 | %) | (14.4 | %) | |||
| Percentage of total assets under management | 23.4 | % | 22.4 | % | 25.9 | % | |||||||
| Average assets under management | $ | 18,027 | $ | 18,013 | $ | 21,936 | 0.1 | % | (17.8 | %) | |||
| Global/International Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 14,838 | $ | 14,762 | $ | 15,709 | |||||||
| Inflows | 531 | 368 | 527 | ||||||||||
| Outflows | (359) | (458) | (396) | ||||||||||
| Net inflows (outflows) | 172 | (90) | 131 | ||||||||||
| Market appreciation (depreciation) | (899) | 206 | (1,956) | ||||||||||
| Distributions | (8) | (40) | (13) | ||||||||||
| Total increase (decrease) | (735) | 76 | (1,838) | ||||||||||
| Assets under management, end of period | $ | 14,103 | $ | 14,838 | $ | 13,871 | (5.0 | %) | 1.7 | % | |||
| Percentage of total assets under management | 18.8 | % | 18.5 | % | 17.5 | % | |||||||
| Average assets under management | $ | 15,022 | $ | 14,859 | $ | 15,938 | 1.1 | % | (5.7 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy - continued | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | June 30,<br>2023 | September 30,<br>2022 | |||||||||
| Global Listed Infrastructure | |||||||||||||
| Assets under management, beginning of period | $ | 8,379 | $ | 8,596 | $ | 8,574 | |||||||
| Inflows | 95 | 79 | 394 | ||||||||||
| Outflows | (175) | (250) | (151) | ||||||||||
| Net inflows (outflows) | (80) | (171) | 243 | ||||||||||
| Market appreciation (depreciation) | (671) | 12 | (742) | ||||||||||
| Distributions | (46) | (58) | (45) | ||||||||||
| Total increase (decrease) | (797) | (217) | (544) | ||||||||||
| Assets under management, end of period | $ | 7,582 | $ | 8,379 | $ | 8,030 | (9.5 | %) | (5.6 | %) | |||
| Percentage of total assets under management | 10.1 | % | 10.4 | % | 10.1 | % | |||||||
| Average assets under management | $ | 8,157 | $ | 8,486 | $ | 8,859 | (3.9 | %) | (7.9 | %) | |||
| Other | |||||||||||||
| Assets under management, beginning of period | $ | 2,239 | $ | 2,257 | $ | 1,952 | |||||||
| Inflows | 210 | 152 | 441 | ||||||||||
| Outflows | (214) | (152) | (148) | ||||||||||
| Net inflows (outflows) | (4) | — | 293 | ||||||||||
| Market appreciation (depreciation) | (34) | 1 | (155) | ||||||||||
| Distributions | (8) | (19) | (8) | ||||||||||
| Total increase (decrease) | (46) | (18) | 130 | ||||||||||
| Assets under management, end of period | $ | 2,193 | $ | 2,239 | $ | 2,082 | (2.1 | %) | 5.3 | % | |||
| Percentage of total assets under management | 2.9 | % | 2.8 | % | 2.6 | % | |||||||
| Average assets under management | $ | 2,266 | $ | 2,248 | $ | 2,100 | 0.8 | % | 7.9 | % | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 80,413 | $ | 79,905 | $ | 87,862 | |||||||
| Inflows | 3,340 | 3,454 | 5,404 | ||||||||||
| Outflows | (3,387) | (3,966) | (6,002) | ||||||||||
| Net inflows (outflows) | (47) | (512) | (598) | ||||||||||
| Market appreciation (depreciation) | (4,604) | 1,777 | (7,386) | ||||||||||
| Distributions | (604) | (757) | (680) | ||||||||||
| Total increase (decrease) | (5,255) | 508 | (8,664) | ||||||||||
| Assets under management, end of period | $ | 75,158 | $ | 80,413 | $ | 79,198 | (6.5 | %) | (5.1 | %) | |||
| Average assets under management | $ | 79,966 | $ | 79,406 | $ | 89,743 | 0.7 | % | (10.9 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management | |||||||||||||
| By Investment Strategy | |||||||||||||
| (in millions) | |||||||||||||
| Nine Months Ended | |||||||||||||
| September 30,<br>2023 | September 30,<br>2022 | % Change | |||||||||||
| U.S. Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 35,108 | $ | 49,915 | |||||||||
| Inflows | 5,140 | 8,018 | |||||||||||
| Outflows | (4,411) | (8,251) | |||||||||||
| Net inflows (outflows) | 729 | (233) | |||||||||||
| Market appreciation (depreciation) | (939) | (13,463) | |||||||||||
| Distributions | (1,252) | (1,523) | |||||||||||
| Transfers | 73 | — | |||||||||||
| Total increase (decrease) | (1,389) | (15,219) | |||||||||||
| Assets under management, end of period | $ | 33,719 | $ | 34,696 | (2.8 | %) | |||||||
| Percentage of total assets under management | 44.9 | % | 43.8 | % | |||||||||
| Average assets under management | $ | 36,352 | $ | 43,742 | (16.9 | %) | |||||||
| Preferred Securities | |||||||||||||
| Assets under management, beginning of period | $ | 19,767 | $ | 26,987 | |||||||||
| Inflows | 3,706 | 5,574 | |||||||||||
| Outflows | (5,259) | (7,854) | |||||||||||
| Net inflows (outflows) | (1,553) | (2,280) | |||||||||||
| Market appreciation (depreciation) | (88) | (3,573) | |||||||||||
| Distributions | (562) | (615) | |||||||||||
| Transfers | (3) | — | |||||||||||
| Total increase (decrease) | (2,206) | (6,468) | |||||||||||
| Assets under management, end of period | $ | 17,561 | $ | 20,519 | (14.4 | %) | |||||||
| Percentage of total assets under management | 23.4 | % | 25.9 | % | |||||||||
| Average assets under management | $ | 18,756 | $ | 23,494 | (20.2 | %) | |||||||
| Global/International Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 14,782 | $ | 19,380 | |||||||||
| Inflows | 1,172 | 2,944 | |||||||||||
| Outflows | (1,234) | (2,340) | |||||||||||
| Net inflows (outflows) | (62) | 604 | |||||||||||
| Market appreciation (depreciation) | (491) | (6,034) | |||||||||||
| Distributions | (56) | (79) | |||||||||||
| Transfers | (70) | — | |||||||||||
| Total increase (decrease) | (679) | (5,509) | |||||||||||
| Assets under management, end of period | $ | 14,103 | $ | 13,871 | 1.7 | % | |||||||
| Percentage of total assets under management | 18.8 | % | 17.5 | % | |||||||||
| Average assets under management | $ | 15,069 | $ | 17,432 | (13.6 | %) | |||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management | |||||||||||||
| By Investment Strategy - continued | |||||||||||||
| (in millions) | |||||||||||||
| Nine Months Ended | |||||||||||||
| September 30,<br>2023 | September 30,<br>2022 | % Change | |||||||||||
| Global Listed Infrastructure | |||||||||||||
| Assets under management, beginning of period | $ | 8,596 | $ | 8,763 | |||||||||
| Inflows | 309 | 1,319 | |||||||||||
| Outflows | (549) | (803) | |||||||||||
| Net inflows (outflows) | (240) | 516 | |||||||||||
| Market appreciation (depreciation) | (624) | (1,101) | |||||||||||
| Distributions | (150) | (148) | |||||||||||
| Total increase (decrease) | (1,014) | (733) | |||||||||||
| Assets under management, end of period | $ | 7,582 | $ | 8,030 | (5.6 | %) | |||||||
| Percentage of total assets under management | 10.1 | % | 10.1 | % | |||||||||
| Average assets under management | $ | 8,438 | $ | 8,774 | (3.8 | %) | |||||||
| Other | |||||||||||||
| Assets under management, beginning of period | $ | 2,172 | $ | 1,584 | |||||||||
| Inflows | 667 | 1,169 | |||||||||||
| Outflows | (597) | (335) | |||||||||||
| Net inflows (outflows) | 70 | 834 | |||||||||||
| Market appreciation (depreciation) | (14) | (305) | |||||||||||
| Distributions | (35) | (31) | |||||||||||
| Total increase (decrease) | 21 | 498 | |||||||||||
| Assets under management, end of period | $ | 2,193 | $ | 2,082 | 5.3 | % | |||||||
| Percentage of total assets under management | 2.9 | % | 2.6 | % | |||||||||
| Average assets under management | $ | 2,241 | $ | 1,888 | 18.7 | % | |||||||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 80,425 | $ | 106,629 | |||||||||
| Inflows | 10,994 | 19,024 | |||||||||||
| Outflows | (12,050) | (19,583) | |||||||||||
| Net inflows (outflows) | (1,056) | (559) | |||||||||||
| Market appreciation (depreciation) | (2,156) | (24,476) | |||||||||||
| Distributions | (2,055) | (2,396) | |||||||||||
| Total increase (decrease) | (5,267) | (27,431) | |||||||||||
| Assets under management, end of period | $ | 75,158 | $ | 79,198 | (5.1 | %) | |||||||
| Average assets under management | $ | 80,856 | $ | 95,330 | (15.2 | %) |
Reconciliations of U.S. GAAP to As Adjusted Financial Results
Management believes that use of the following as adjusted (non-GAAP) financial results provides greater transparency into the company’s operating performance. In addition, these as adjusted financial results are used to prepare the company's internal management reports which are used in evaluating its business.
While management believes that these as adjusted financial results are useful in evaluating operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.
Effective January 1, 2023, the company revised its methodology for as adjusted results to include interest and dividends from seed investments. Prior period amounts have not been recast to conform with the current period results as the impact was not significant.
| Reconciliation of U.S. GAAP to As Adjusted Financial ResultsNet Income (Loss) Attributable to Common Stockholders and Diluted Earnings per Share | ||||||
|---|---|---|---|---|---|---|
| (in thousands, except per share data) | June 30,<br>2023 | September 30,<br>2022 | ||||
| Net income attributable to common stockholders, U.S. GAAP | 32,140 | $ | 31,778 | $ | 44,570 | |
| Seed investments—net (1) | 35 | 1,635 | ||||
| Accelerated vesting of restricted stock units | 108 | 2,556 | ||||
| Lease transition and other costs - 280 Park Avenue (2) | 2,498 | — | ||||
| Foreign currency exchange (gains) losses—net (3) | 1,073 | (3,931) | ||||
| Tax adjustments—net (4) | (750) | 337 | ||||
| Net income attributable to common stockholders, as adjusted | 34,772 | $ | 34,742 | $ | 45,167 | |
| Diluted weighted average shares outstanding | 49,463 | 49,317 | ||||
| Diluted earnings per share, U.S. GAAP | 0.65 | $ | 0.64 | $ | 0.90 | |
| Seed investments—net | — | * | 0.04 | |||
| Accelerated vesting of restricted stock units | — | * | 0.05 | |||
| Lease transition and other costs - 280 Park Avenue | 0.05 | — | ||||
| Foreign currency exchange (gains) losses—net | 0.02 | (0.08) | ||||
| Tax adjustments—net | (0.01) | 0.01 | ||||
| Diluted earnings per share, as adjusted | 0.70 | $ | 0.70 | $ | 0.92 | |
| _________________________* Amounts round to less than 0.01 per share.(1)Represents adjustment to remove the impact of consolidated investment vehicles and other seed investments from the company's financial results. In accordance with the company’s revised methodology, interest and dividends from seed investments were not included in the adjustment for the three months ended September 30, 2023 and June 30, 2023.(2)Represents adjustment to remove lease and other expenses related to the company's current headquarters, which it expects to vacate when the lease expires in January 2024. From a GAAP perspective, the company is recognizing lease expense on both its current and future headquarters as a result of overlapping terms during the build-out phase of the new space.(3)Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.(4)Tax adjustments are summarized in the following table: | ||||||
| (in thousands) | June 30,<br>2023 | September 30,<br>2022 | ||||
| Exclusion of tax effects associated with items noted above | (1,211) | $ | (747) | $ | 301 | |
| Exclusion of discrete tax items | (3) | 36 | ||||
| Total tax adjustments | (1,203) | $ | (750) | $ | 337 |
All values are in US Dollars.
| Reconciliation of U.S. GAAP to As Adjusted Financial Results<br><br>Revenue, Expenses, Operating Income and Operating Margin | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except percentages) | Three Months Ended | ||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | |||||||
| Revenue, U.S. GAAP | $ | 123,737 | $ | 120,630 | $ | 139,951 | |||
| Seed investments (1) | (186) | (321) | 215 | ||||||
| Revenue, as adjusted | $ | 123,551 | $ | 120,309 | $ | 140,166 | |||
| Expenses, U.S. GAAP | $ | 82,866 | $ | 79,789 | $ | 82,770 | |||
| Seed investments (1) | (532) | (694) | (104) | ||||||
| Accelerated vesting of restricted stock units | (327) | (108) | (2,556) | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | (2,321) | (2,498) | — | ||||||
| Expenses, as adjusted | $ | 79,686 | $ | 76,489 | $ | 80,110 | |||
| Operating income, U.S. GAAP | $ | 40,871 | $ | 40,841 | $ | 57,181 | |||
| Seed investments (1) | 346 | 373 | 319 | ||||||
| Accelerated vesting of restricted stock units | 327 | 108 | 2,556 | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | 2,321 | 2,498 | — | ||||||
| Operating income, as adjusted | $ | 43,865 | $ | 43,820 | $ | 60,056 | |||
| Operating margin, U.S. GAAP | 33.0 | % | 33.9 | % | 40.9 | % | |||
| Operating margin, as adjusted | 35.5 | % | 36.4 | % | 42.8 | % | |||
| __________________________<br><br>(1)Represents adjustment to remove the impact of consolidated investment vehicles from the company's financial results.<br><br>(2)Represents adjustment to remove lease and other expenses related to the company's current headquarters, which it expects to vacate when the lease expires in January 2024. From a GAAP perspective, the company is recognizing lease expense on both its current and future headquarters as a result of overlapping terms during the build-out phase of the new space. | |||||||||
| Reconciliation of U.S. GAAP to As Adjusted Financial Results<br><br>Non-operating Income (Loss) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| (in thousands) | Three Months Ended | ||||||||
| September 30,<br>2023 | June 30,<br>2023 | September 30,<br>2022 | |||||||
| Non-operating income (loss), U.S. GAAP | $ | (5,159) | $ | 2,650 | $ | (1,974) | |||
| Seed investments—net (1) | 9,525 | (1,065) | 6,272 | ||||||
| Foreign currency exchange (gains) losses—net (2) | (1,713) | 1,073 | (3,931) | ||||||
| Non-operating income (loss), as adjusted | $ | 2,653 | $ | 2,658 | $ | 367 | |||
| _________________________<br><br>(1)Represents adjustment to remove the impact of consolidated investment vehicles and other seed investments from the company's financial results. In accordance with the company’s revised methodology, interest and dividends from seed investments were not included in the adjustment for the three months ended September 30, 2023 and June 30, 2023.<br><br>(2)Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. |
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