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): April 17, 2024
_____________________
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.) |
1166 Avenue of the Americas
New York, NY 10036
(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 registered |
|---|---|---|
| Common Stock, $0.01 par value | CNS | New 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 April 17, 2024, Cohen & Steers, Inc. (the Company) reported, among other things, the Company’s results for the quarter ended March 31, 2024. 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 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 April 17, 2024 |
| 99.2 | Earnings release dated April 17, 2024 |
| 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: April 17, 2024 | By: | /s/ Matthew S. Stadler |
| --- | --- | --- |
| Name: Matthew S. Stadler<br><br>Title: Executive Vice President and Chief Financial Officer |
Document
Cohen & Steers, Inc.
1166 Avenue of the Americas
New York, NY 10036-2708
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 FIRST QUARTER 2024
New York, NY, April 17, 2024—Cohen & Steers, Inc. (NYSE: CNS) today reported its results for the quarter ended March 31, 2024. The earnings release along with the accompanying earnings presentation can be viewed at Cohen & Steers Reports Results for First Quarter 2024 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, April 18, 2024, 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 April 18, 2024 and can be accessed at 800-770-2030 (U.S.) or +1-609-800-9909 (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 listed and private 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 FIRST QUARTER 2024
•Diluted EPS of $0.68; $0.70, as adjusted
•Operating margin of 32.8%; 35.5%, as adjusted
•Ending AUM of $81.2 billion; average AUM of $80.2 billion
•Net outflows of $2.0 billion
NEW YORK, NY, April 17, 2024—Cohen & Steers, Inc. (NYSE: CNS) today reported its results for the quarter ended March 31, 2024.
Financial Highlights
| (in thousands, except percentages and per share data) | Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31,<br>2024 | December 31,<br>2023 | Change | % Change | ||||||
| U.S. GAAP | |||||||||
| Revenue | $ | 122,710 | $ | 119,188 | 3.0 | % | |||
| Expenses | $ | 82,445 | $ | 81,322 | 1.4 | % | |||
| Operating income | $ | 40,265 | $ | 37,866 | 6.3 | % | |||
| Non-operating income (loss) (1) | $ | 5,037 | $ | 16,651 | (69.7 | %) | |||
| Net income attributable to common stockholders | $ | 34,004 | $ | 29,817 | 14.0 | % | |||
| Diluted earnings per share | $ | 0.68 | $ | 0.60 | 13.8 | % | |||
| Operating margin | 32.8 | % | 31.8 | % | N/A | 100 bps | |||
| As Adjusted (2) | |||||||||
| Net income attributable to common stockholders | $ | 34,653 | $ | 33,403 | 3.7 | % | |||
| Diluted earnings per share | $ | 0.70 | $ | 0.67 | 3.5 | % | |||
| Operating margin | 35.5 | % | 34.7 | % | N/A | 80 bps | |||
| _________________________<br><br><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 13-14 for reconciliations of U.S. GAAP to as adjusted results. |
All values are in US Dollars.
Revenue
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| March 31,<br>2024 | December 31,<br>2023 | Change | % Change | ||||
| Investment advisory and administration fees | |||||||
| Open-end funds | $ | 60,787 | $ | 57,680 | 5.4 | % | |
| Institutional accounts | 30,352 | 30,925 | (1.9) | % | |||
| Closed-end funds | 24,206 | 23,428 | 3.3 | % | |||
| Total | 115,345 | 112,033 | 3.0 | % | |||
| Distribution and service fees | 6,817 | 6,647 | 2.6 | % | |||
| Other | 548 | 508 | 7.9 | % | |||
| Total revenue | $ | 122,710 | $ | 119,188 | 3.0 | % |
All values are in US Dollars.
•The increase in total investment advisory and administration fees from the fourth quarter of 2023 was primarily due to higher average assets under management across all three types of investment vehicles and an increase in the average effective fee rate, partially offset by one less day in the quarter. The fourth quarter of 2023 included performance fees from certain institutional accounts of $1.3 million.
Expenses
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| March 31,<br>2024 | December 31,<br>2023 | Change | % Change | ||||
| Employee compensation and benefits | $ | 52,003 | $ | 49,601 | 4.8 | % | |
| Distribution and service fees | 13,395 | 12,936 | 3.5 | % | |||
| General and administrative | 14,793 | 17,308 | (14.5) | % | |||
| Depreciation and amortization | 2,254 | 1,477 | 52.6 | % | |||
| Total expenses | $ | 82,445 | $ | 81,322 | 1.4 | % |
All values are in US Dollars.
•Employee compensation and benefits increased $2.4 million from the fourth quarter of 2023, primarily due to increases in payroll taxes and the company’s 401(k) match;
•Distribution and service fees increased from the fourth quarter of 2023, primarily due to higher average assets under management in U.S. open-end funds;
•General and administrative expenses decreased from the fourth quarter of 2023, primarily due to lower rent expense of $1.6 million related to the expiration of the lease for the company’s prior headquarters in January 2024 and a decrease in recruitment fees of $314,000; and
•Depreciation and amortization increased from the fourth quarter of 2023. The company began depreciating fixed assets and leasehold improvements associated with its new corporate headquarters which became operational in December 2023.
Operating Margin
Operating margin was 32.8% for the first quarter of 2024, compared with 31.8% for the fourth quarter of 2023. Operating margin represents the ratio of operating income to revenue.
Non-operating Income (Loss)
| (in thousands) | Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, 2024 | |||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | ||||||
| Interest and dividend income—net | $ | 985 | $ | 912 | $ | 2,022 | $ | 3,919 | |
| Gain (loss) from investments—net | 561 | 627 | (204) | (1) | 984 | ||||
| Foreign currency gain (loss)—net | (208) | 26 | 316 | (2) | 134 | ||||
| Total non-operating income (loss) | 1,338 | 1,565 | 2,134 | 5,037 | |||||
| Net (income) loss attributable to noncontrolling interests | (410) | — | — | (410) | |||||
| Non-operating income (loss) attributable to the company | $ | 928 | $ | 1,565 | $ | 2,134 | $ | 4,627 | |
| _________________________<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 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, 2023 | |||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | ||||||
| Interest and dividend income—net | $ | 983 | $ | 943 | $ | 2,285 | $ | 4,211 | |
| Gain (loss) from investments—net | 16,345 | 1,943 | (3,989) | (1) | 14,299 | ||||
| Foreign currency gain (loss)—net | (390) | (28) | (1,441) | (2) | (1,859) | ||||
| Total non-operating income (loss) | 16,938 | 2,858 | (3,145) | 16,651 | |||||
| Net (income) loss attributable to noncontrolling interests | (12,820) | — | — | (12,820) | |||||
| Non-operating income (loss) attributable to the company | $ | 4,118 | $ | 2,858 | $ | (3,145) | $ | 3,831 | |
| _________________________<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 | ||||
|---|---|---|---|---|
| March 31,<br>2024 | December 31,<br>2023 | |||
| U.S. statutory tax rate | 21.0 | % | 21.0 | % |
| State and local income taxes, net of federal benefit | 2.9 | 3.4 | ||
| Non-deductible executive compensation | 0.9 | 1.5 | ||
| Excess tax benefits related to the vesting and delivery of restricted stock units | (0.6) | 0.1 | ||
| Valuation allowance on corporate seed investments | (0.2) | 1.9 | ||
| Other | 0.3 | 0.6 | ||
| Effective income tax rate | 24.3 | % | 28.5 | % |
Assets Under Management
| (in millions) | As of | Change | |||||
|---|---|---|---|---|---|---|---|
| By Investment Vehicle | March 31,<br>2024 | December 31,<br>2023 | % | ||||
| Open-end funds | $ | 37,685 | $ | 37,032 | 1.8 | % | |
| Institutional accounts | 32,424 | 35,028 | (7.4 | %) | |||
| Closed-end funds | 11,126 | 11,076 | 0.5 | % | |||
| Total | $ | 81,235 | $ | 83,136 | (2.3 | %) | |
| By Investment Strategy | |||||||
| U.S. real estate | $ | 38,476 | $ | 38,550 | (0.2 | %) | |
| Preferred securities | 18,589 | 18,164 | 2.3 | % | |||
| Global/international real estate | 13,442 | 15,789 | (14.9 | %) | |||
| Global listed infrastructure | 8,395 | 8,356 | 0.5 | % | |||
| Other | 2,333 | 2,277 | 2.5 | % | |||
| Total | $ | 81,235 | $ | 83,136 | (2.3 | %) |
All values are in US Dollars.
Assets under management at March 31, 2024 were $81.2 billion, a decrease of 2.3% from $83.1 billion at December 31, 2023. The decrease was due to net outflows of $2.0 billion and distributions of $610 million, partially offset by market appreciation of $679 million.
Open-end Funds
Assets under management in open-end funds at March 31, 2024 were $37.7 billion, an increase of 1.8% from $37.0 billion at December 31, 2023. The increase was primarily due to the following:
•Net inflows of $325 million into U.S. real estate and $288 million into preferred securities, partially offset by net outflows of $70 million from global listed infrastructure;
•Market appreciation of $410 million from preferred securities, partially offset by market depreciation of $92 million from U.S. real estate; and
•Distributions of $135 million from U.S. real estate and $132 million from preferred securities. Of these distributions, $228 million was reinvested and included in net flows.
Institutional Accounts
Assets under management in institutional accounts at March 31, 2024 were $32.4 billion, a decrease of 7.4% from $35.0 billion at December 31, 2023. The decrease was primarily due to the following:
•Advisory:
◦Net outflows of $2.0 billion from global/international real estate, primarily due to the termination of two client accounts resulting from the elimination of real estate from their respective strategic asset allocations, and $302 million from preferred securities, partially offset by net inflows of $120 million into U.S. real estate; and
◦Market appreciation of $93 million from global listed infrastructure.
•Japan subadvisory:
◦Net outflows of $205 million from global/international real estate and $104 million from U.S. real estate; and
◦Distributions of $169 million from U.S. real estate.
•Subadvisory excluding Japan:
◦Net outflows of $35 million; and
◦Market depreciation of $10 million.
Closed-end Funds
Assets under management in closed-end funds at both March 31, 2024 and December 31, 2023 were $11.1 billion.
Investment Performance at March 31, 2024
_________________________
(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) © 2024 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 March 31, 2024. 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 March 31, 2024, cash, cash equivalents, U.S. Treasurys and liquid seed investments were $233.1 million, compared with $318.8 million as of December 31, 2023. The change was primarily due to the payment of year-end cash bonuses to employees, repurchases of common stock to satisfy employee withholding tax obligations on the
vesting and delivery of restricted stock units and the funding of a portion of the company’s capital commitment to Cohen & Steers Income Opportunities REIT, Inc. As of March 31, 2024, stockholders' equity was $378.9 million, compared with $381.2 million as of December 31, 2023.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, April 18, 2024 at 10:00 a.m. (ET) to discuss the company's first 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 April 18, 2024 and can be accessed at 800-770-2030 (U.S.) or +1-609-800-9909 (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 listed and private 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, 2023 (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 | ||||||||||||
| March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | December 31,<br>2023 | March 31,<br>2023 | |||||||||
| Revenue: | |||||||||||||
| Investment advisory and administration fees | $ | 115,345 | $ | 112,033 | $ | 118,034 | |||||||
| Distribution and service fees | 6,817 | 6,647 | 7,562 | ||||||||||
| Other | 548 | 508 | 486 | ||||||||||
| Total revenue | 122,710 | 119,188 | 126,082 | 3.0 | % | (2.7 | %) | ||||||
| Expenses: | |||||||||||||
| Employee compensation and benefits | 52,003 | 49,601 | 48,857 | ||||||||||
| Distribution and service fees | 13,395 | 12,936 | 14,216 | ||||||||||
| General and administrative | 14,793 | 17,308 | 17,122 | ||||||||||
| Depreciation and amortization | 2,254 | 1,477 | 988 | ||||||||||
| Total expenses | 82,445 | 81,322 | 81,183 | 1.4 | % | 1.6 | % | ||||||
| Operating income | 40,265 | 37,866 | 44,899 | 6.3 | % | (10.3 | %) | ||||||
| Non-operating income (loss): | |||||||||||||
| Interest and dividend income—net | 3,919 | 4,211 | 3,216 | ||||||||||
| Gain (loss) from investments—net | 984 | 14,299 | (308) | ||||||||||
| Foreign currency gain (loss)—net | 134 | (1,859) | (1,276) | ||||||||||
| Total non-operating income (loss) | 5,037 | 16,651 | 1,632 | (69.7 | %) | * | |||||||
| Income before provision for income taxes | 45,302 | 54,517 | 46,531 | (16.9 | %) | (2.6 | %) | ||||||
| Provision for income taxes | 10,888 | 11,880 | 10,233 | ||||||||||
| Net income | 34,414 | 42,637 | 36,298 | (19.3 | %) | (5.2 | %) | ||||||
| Net (income) loss attributable to noncontrolling interests | (410) | (12,820) | (984) | ||||||||||
| Net income attributable to common stockholders | $ | 34,004 | $ | 29,817 | $ | 35,314 | 14.0 | % | (3.7 | %) | |||
| Earnings per share attributable to common <br>stockholders: | |||||||||||||
| Basic | $ | 0.69 | $ | 0.60 | $ | 0.72 | 13.6 | % | (4.4 | %) | |||
| Diluted | $ | 0.68 | $ | 0.60 | $ | 0.71 | 13.8 | % | (4.5 | %) | |||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 49,569 | 49,366 | 49,199 | ||||||||||
| Diluted | 49,835 | 49,725 | 49,402 | ||||||||||
| _________________________<br><br>* Not meaningful. | |||||||||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Vehicle | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | December 31,<br>2023 | March 31,<br>2023 | |||||||||
| Open-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 37,032 | $ | 33,671 | $ | 36,903 | |||||||
| Inflows | 3,302 | 3,269 | 3,474 | ||||||||||
| Outflows | (2,733) | (3,773) | (3,779) | ||||||||||
| Net inflows (outflows) | 569 | (504) | (305) | ||||||||||
| Market appreciation (depreciation) | 356 | 4,243 | 110 | ||||||||||
| Distributions | (272) | (378) | (281) | ||||||||||
| Total increase (decrease) | 653 | 3,361 | (476) | ||||||||||
| Assets under management, end of period | $ | 37,685 | $ | 37,032 | $ | 36,427 | 1.8 | % | 3.5 | % | |||
| Percentage of total assets under management | 46.4 | % | 44.5 | % | 45.6 | % | |||||||
| Average assets under management | $ | 36,923 | $ | 34,410 | $ | 38,440 | 7.3 | % | (3.9 | %) | |||
| Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 35,028 | $ | 31,216 | $ | 32,373 | |||||||
| Inflows | 902 | 675 | 715 | ||||||||||
| Outflows | (3,445) | (1,102) | (833) | ||||||||||
| Net inflows (outflows) | (2,543) | (427) | (118) | ||||||||||
| Market appreciation (depreciation) | 123 | 4,424 | 608 | ||||||||||
| Distributions | (184) | (185) | (259) | ||||||||||
| Total increase (decrease) | (2,604) | 3,812 | 231 | ||||||||||
| Assets under management, end of period | $ | 32,424 | $ | 35,028 | $ | 32,604 | (7.4 | %) | (0.6 | %) | |||
| Percentage of total assets under management | 39.9 | % | 42.1 | % | 40.8 | % | |||||||
| Average assets under management | $ | 32,284 | $ | 32,102 | $ | 33,409 | 0.6 | % | (3.4 | %) | |||
| Closed-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 11,076 | $ | 10,271 | $ | 11,149 | |||||||
| Inflows | 4 | 1 | 11 | ||||||||||
| Outflows | — | (5) | (85) | ||||||||||
| Net inflows (outflows) | 4 | (4) | (74) | ||||||||||
| Market appreciation (depreciation) | 200 | 963 | (47) | ||||||||||
| Distributions | (154) | (154) | (154) | ||||||||||
| Total increase (decrease) | 50 | 805 | (275) | ||||||||||
| Assets under management, end of period | $ | 11,126 | $ | 11,076 | $ | 10,874 | 0.5 | % | 2.3 | % | |||
| Percentage of total assets under management | 13.7 | % | 13.3 | % | 13.6 | % | |||||||
| Average assets under management | $ | 10,968 | $ | 10,476 | $ | 11,353 | 4.7 | % | (3.4 | %) | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 83,136 | $ | 75,158 | $ | 80,425 | |||||||
| Inflows | 4,208 | 3,945 | 4,200 | ||||||||||
| Outflows | (6,178) | (4,880) | (4,697) | ||||||||||
| Net inflows (outflows) | (1,970) | (935) | (497) | ||||||||||
| Market appreciation (depreciation) | 679 | 9,630 | 671 | ||||||||||
| Distributions | (610) | (717) | (694) | ||||||||||
| Total increase (decrease) | (1,901) | 7,978 | (520) | ||||||||||
| Assets under management, end of period | $ | 81,235 | $ | 83,136 | $ | 79,905 | (2.3 | %) | 1.7 | % | |||
| Average assets under management | $ | 80,175 | $ | 76,988 | $ | 83,202 | 4.1 | % | (3.6 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management - Institutional Accounts | |||||||||||||
| By Account Type | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | December 31,<br>2023 | March 31,<br>2023 | |||||||||
| Advisory | |||||||||||||
| Assets under management, beginning of period | $ | 20,264 | $ | 17,904 | $ | 18,631 | |||||||
| Inflows | 687 | 401 | 222 | ||||||||||
| Outflows | (2,883) | (431) | (621) | ||||||||||
| Net inflows (outflows) | (2,196) | (30) | (399) | ||||||||||
| Market appreciation (depreciation) | 128 | 2,390 | 258 | ||||||||||
| Total increase (decrease) | (2,068) | 2,360 | (141) | ||||||||||
| Assets under management, end of period | $ | 18,196 | $ | 20,264 | $ | 18,490 | (10.2 | %) | (1.6 | %) | |||
| Percentage of institutional assets under management | 56.1 | % | 57.9 | % | 56.7 | % | |||||||
| Average assets under management | $ | 18,066 | $ | 18,515 | $ | 19,123 | (2.4 | %) | (5.5 | %) | |||
| Japan Subadvisory | |||||||||||||
| Assets under management, beginning of period | $ | 9,026 | $ | 8,090 | $ | 8,376 | |||||||
| Inflows | 43 | 41 | 385 | ||||||||||
| Outflows | (355) | (210) | (59) | ||||||||||
| Net inflows (outflows) | (312) | (169) | 326 | ||||||||||
| Market appreciation (depreciation) | 5 | 1,290 | 270 | ||||||||||
| Distributions | (184) | (185) | (259) | ||||||||||
| Total increase (decrease) | (491) | 936 | 337 | ||||||||||
| Assets under management, end of period | $ | 8,535 | $ | 9,026 | $ | 8,713 | (5.4 | %) | (2.0 | %) | |||
| Percentage of institutional assets under management | 26.3 | % | 25.8 | % | 26.7 | % | |||||||
| Average assets under management | $ | 8,640 | $ | 8,334 | $ | 8,739 | 3.7 | % | (1.1 | %) | |||
| Subadvisory Excluding Japan | |||||||||||||
| Assets under management, beginning of period | $ | 5,738 | $ | 5,222 | $ | 5,366 | |||||||
| Inflows | 172 | 233 | 108 | ||||||||||
| Outflows | (207) | (461) | (153) | ||||||||||
| Net inflows (outflows) | (35) | (228) | (45) | ||||||||||
| Market appreciation (depreciation) | (10) | 744 | 80 | ||||||||||
| Total increase (decrease) | (45) | 516 | 35 | ||||||||||
| Assets under management, end of period | $ | 5,693 | $ | 5,738 | $ | 5,401 | (0.8 | %) | 5.4 | % | |||
| Percentage of institutional assets under management | 17.6 | % | 16.4 | % | 16.6 | % | |||||||
| Average assets under management | $ | 5,578 | $ | 5,253 | $ | 5,547 | 6.2 | % | 0.6 | % | |||
| Total Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 35,028 | $ | 31,216 | $ | 32,373 | |||||||
| Inflows | 902 | 675 | 715 | ||||||||||
| Outflows | (3,445) | (1,102) | (833) | ||||||||||
| Net inflows (outflows) | (2,543) | (427) | (118) | ||||||||||
| Market appreciation (depreciation) | 123 | 4,424 | 608 | ||||||||||
| Distributions | (184) | (185) | (259) | ||||||||||
| Total increase (decrease) | (2,604) | 3,812 | 231 | ||||||||||
| Assets under management, end of period | $ | 32,424 | $ | 35,028 | $ | 32,604 | (7.4 | %) | (0.6 | %) | |||
| Average assets under management | $ | 32,284 | $ | 32,102 | $ | 33,409 | 0.6 | % | (3.4 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | December 31,<br>2023 | March 31,<br>2023 | |||||||||
| U.S. Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 38,550 | $ | 33,719 | $ | 35,108 | |||||||
| Inflows | 2,089 | 1,937 | 2,033 | ||||||||||
| Outflows | (1,728) | (2,110) | (1,599) | ||||||||||
| Net inflows (outflows) | 361 | (173) | 434 | ||||||||||
| Market appreciation (depreciation) | (79) | 5,434 | 907 | ||||||||||
| Distributions | (356) | (427) | (437) | ||||||||||
| Transfers | — | (3) | 68 | ||||||||||
| Total increase (decrease) | (74) | 4,831 | 972 | ||||||||||
| Assets under management, end of period | $ | 38,476 | $ | 38,550 | $ | 36,080 | (0.2 | %) | 6.6 | % | |||
| Percentage of total assets under management | 47.4 | % | 46.4 | % | 45.2 | % | |||||||
| Average assets under management | $ | 37,737 | $ | 35,072 | $ | 36,772 | 7.6 | % | 2.6 | % | |||
| Preferred Securities | |||||||||||||
| Assets under management, beginning of period | $ | 18,164 | $ | 17,561 | $ | 19,767 | |||||||
| Inflows | 1,233 | 1,291 | 1,454 | ||||||||||
| Outflows | (1,251) | (1,631) | (2,326) | ||||||||||
| Net inflows (outflows) | (18) | (340) | (872) | ||||||||||
| Market appreciation (depreciation) | 625 | 1,117 | (492) | ||||||||||
| Distributions | (181) | (177) | (195) | ||||||||||
| Transfers | (1) | 3 | 2 | ||||||||||
| Total increase (decrease) | 425 | 603 | (1,557) | ||||||||||
| Assets under management, end of period | $ | 18,589 | $ | 18,164 | $ | 18,210 | 2.3 | % | 2.1 | % | |||
| Percentage of total assets under management | 22.9 | % | 21.8 | % | 22.8 | % | |||||||
| Average assets under management | $ | 18,420 | $ | 17,492 | $ | 20,227 | 5.3 | % | (8.9 | %) | |||
| Global/International Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 15,789 | $ | 14,103 | $ | 14,782 | |||||||
| Inflows | 620 | 357 | 273 | ||||||||||
| Outflows | (2,828) | (741) | (417) | ||||||||||
| Net inflows (outflows) | (2,208) | (384) | (144) | ||||||||||
| Market appreciation (depreciation) | (124) | 2,107 | 202 | ||||||||||
| Distributions | (16) | (37) | (8) | ||||||||||
| Transfers | 1 | — | (70) | ||||||||||
| Total increase (decrease) | (2,347) | 1,686 | (20) | ||||||||||
| Assets under management, end of period | $ | 13,442 | $ | 15,789 | $ | 14,762 | (14.9 | %) | (8.9 | %) | |||
| Percentage of total assets under management | 16.5 | % | 19.0 | % | 18.5 | % | |||||||
| Average assets under management | $ | 13,547 | $ | 14,381 | $ | 15,321 | (5.8 | %) | (11.6 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy - continued | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | December 31,<br>2023 | March 31,<br>2023 | |||||||||
| Global Listed Infrastructure | |||||||||||||
| Assets under management, beginning of period | $ | 8,356 | $ | 7,582 | $ | 8,596 | |||||||
| Inflows | 80 | 178 | 135 | ||||||||||
| Outflows | (184) | (176) | (124) | ||||||||||
| Net inflows (outflows) | (104) | 2 | 11 | ||||||||||
| Market appreciation (depreciation) | 193 | 828 | 35 | ||||||||||
| Distributions | (50) | (56) | (46) | ||||||||||
| Total increase (decrease) | 39 | 774 | — | ||||||||||
| Assets under management, end of period | $ | 8,395 | $ | 8,356 | $ | 8,596 | 0.5 | % | (2.3 | %) | |||
| Percentage of total assets under management | 10.3 | % | 10.1 | % | 10.8 | % | |||||||
| Average assets under management | $ | 8,191 | $ | 7,851 | $ | 8,682 | 4.3 | % | (5.7 | %) | |||
| Other | |||||||||||||
| Assets under management, beginning of period | $ | 2,277 | $ | 2,193 | $ | 2,172 | |||||||
| Inflows | 186 | 182 | 305 | ||||||||||
| Outflows | (187) | (222) | (231) | ||||||||||
| Net inflows (outflows) | (1) | (40) | 74 | ||||||||||
| Market appreciation (depreciation) | 64 | 144 | 19 | ||||||||||
| Distributions | (7) | (20) | (8) | ||||||||||
| Total increase (decrease) | 56 | 84 | 85 | ||||||||||
| Assets under management, end of period | $ | 2,333 | $ | 2,277 | $ | 2,257 | 2.5 | % | 3.4 | % | |||
| Percentage of total assets under management | 2.9 | % | 2.7 | % | 2.8 | % | |||||||
| Average assets under management | $ | 2,280 | $ | 2,192 | $ | 2,200 | 4.0 | % | 3.6 | % | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 83,136 | $ | 75,158 | $ | 80,425 | |||||||
| Inflows | 4,208 | 3,945 | 4,200 | ||||||||||
| Outflows | (6,178) | (4,880) | (4,697) | ||||||||||
| Net inflows (outflows) | (1,970) | (935) | (497) | ||||||||||
| Market appreciation (depreciation) | 679 | 9,630 | 671 | ||||||||||
| Distributions | (610) | (717) | (694) | ||||||||||
| Total increase (decrease) | (1,901) | 7,978 | (520) | ||||||||||
| Assets under management, end of period | $ | 81,235 | $ | 83,136 | $ | 79,905 | (2.3 | %) | 1.7 | % | |||
| Average assets under management | $ | 80,175 | $ | 76,988 | $ | 83,202 | 4.1 | % | (3.6 | %) |
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.
| Reconciliation of U.S. GAAP to As Adjusted Financial ResultsNet Income Attributable to Common Stockholders and Diluted Earnings per Share | ||||||
|---|---|---|---|---|---|---|
| (in thousands, except per share data) | December 31,<br>2023 | March 31,<br>2023 | ||||
| Net income attributable to common stockholders, U.S. GAAP | 34,004 | $ | 29,817 | $ | 35,314 | |
| Seed investments—net (1) | (1,651) | 968 | ||||
| Accelerated vesting of restricted stock units | 638 | 245 | ||||
| Lease transition and other costs - 280 Park Avenue (2) | 2,459 | 2,443 | ||||
| Foreign currency exchange (gains) losses—net (3) | 1,921 | 1,090 | ||||
| Tax adjustments—net (4) | 219 | (2,466) | ||||
| Net income attributable to common stockholders, as adjusted | 34,653 | $ | 33,403 | $ | 37,594 | |
| Diluted weighted average shares outstanding | 49,725 | 49,402 | ||||
| Diluted earnings per share, U.S. GAAP | 0.68 | $ | 0.60 | $ | 0.71 | |
| Seed investments—net (1) | (0.03) | 0.02 | ||||
| Accelerated vesting of restricted stock units | 0.01 | 0.01 | ||||
| Lease transition and other costs - 280 Park Avenue (2) | 0.05 | 0.05 | ||||
| Foreign currency exchange (gains) losses—net (3) | 0.04 | 0.02 | ||||
| Tax adjustments—net (4) | — | * | (0.05) | |||
| Diluted earnings per share, as adjusted | 0.70 | $ | 0.67 | $ | 0.76 | |
| _________________________* 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.(2)Represents adjustment to remove the impact of lease and other expenses related to the company's prior headquarters, for which the lease expired in January 2024. From a GAAP perspective, the company recognized lease expense on both its prior and current headquarters as a result of overlapping lease terms.(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) | ||||||
| December 31,<br>2023 | March 31,<br>2023 | |||||
| Exclusion of tax effects associated with items noted above | (500) | $ | 158 | $ | (1,285) | |
| Exclusion of discrete tax items | 61 | (1,181) | ||||
| Total tax adjustments | (910) | $ | 219 | $ | (2,466) |
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 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | |||||||||
| (in thousands, except percentages) | March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | ||||||
| Revenue, U.S. GAAP | $ | 122,710 | $ | 119,188 | $ | 126,082 | |||
| Seed investments (1) | 234 | (142) | 183 | ||||||
| Revenue, as adjusted | $ | 122,944 | $ | 119,046 | $ | 126,265 | |||
| Expenses, U.S. GAAP | $ | 82,445 | $ | 81,322 | $ | 81,183 | |||
| Seed investments (1) | (175) | (528) | (267) | ||||||
| Accelerated vesting of restricted stock units | (2,211) | (638) | (245) | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | (807) | (2,459) | (2,443) | ||||||
| Expenses, as adjusted | $ | 79,252 | $ | 77,697 | $ | 78,228 | |||
| Operating income, U.S. GAAP | $ | 40,265 | $ | 37,866 | $ | 44,899 | |||
| Seed investments (1) | 409 | 386 | 450 | ||||||
| Accelerated vesting of restricted stock units | 2,211 | 638 | 245 | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | 807 | 2,459 | 2,443 | ||||||
| Operating income, as adjusted | $ | 43,692 | $ | 41,349 | $ | 48,037 | |||
| Operating margin, U.S. GAAP | 32.8 | % | 31.8 | % | 35.6 | % | |||
| Operating margin, as adjusted | 35.5 | % | 34.7 | % | 38.0 | % | |||
| __________________________<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 the impact of lease and other expenses related to the company's prior headquarters, for which the lease expired in January 2024. From a GAAP perspective, the company recognized lease expense on both its prior and current headquarters as a result of overlapping lease terms. | |||||||||
| Reconciliation of U.S. GAAP to As Adjusted Financial Results<br><br>Non-operating Income (Loss) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Three Months Ended | |||||||||
| (in thousands) | March 31,<br>2024 | December 31,<br>2023 | March 31,<br>2023 | ||||||
| Non-operating income (loss), U.S. GAAP | $ | 5,037 | $ | 16,651 | $ | 1,632 | |||
| Seed investments—net (1) | (1,822) | (14,857) | (466) | ||||||
| Foreign currency exchange (gains) losses—net (2) | (456) | 1,921 | 1,090 | ||||||
| Non-operating income (loss), as adjusted | $ | 2,759 | $ | 3,715 | $ | 2,256 | |||
| _________________________<br><br>(1)Represents adjustment to remove the impact of consolidated investment vehicles and other seed investments from the company's financial results.<br><br>(2)Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. |
14