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 19, 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) |
|---|
________________
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
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))
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 19, 2023, Cohen & Steers, Inc. (the Company) reported, among other things, the Company’s results for the quarter ended March 31, 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 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 19, 2023 |
| 99.2 | Earnings release dated April 19, 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: April 19, 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 FIRST QUARTER 2023
New York, NY, April 19, 2023—Cohen & Steers, Inc. (NYSE: CNS) today reported its results for the quarter ended March 31, 2023. The earnings release along with the accompanying earnings presentation can be viewed at Cohen & Steers Reports Results for First 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, April 20, 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 April 20, 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 and Tokyo.
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 2023
•Diluted EPS of $0.71; $0.76, as adjusted
•Operating margin of 35.6%; 38.0%, as adjusted
•Ending AUM of $79.9 billion; average AUM of $83.2 billion
•Net outflows of $497 million
NEW YORK, NY, April 19, 2023—Cohen & Steers, Inc. (NYSE: CNS) today reported its results for the quarter ended March 31, 2023.
Financial Highlights
| (in thousands, except percentages and per share data) | Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31,<br>2023 | December 31,<br>2022 | Change | % Change | ||||||
| U.S. GAAP | |||||||||
| Revenue | $ | 126,082 | $ | 125,335 | 0.6 | % | |||
| Expenses | $ | 81,183 | $ | 78,563 | 3.3 | % | |||
| Operating income | $ | 44,899 | $ | 46,772 | (4.0 | %) | |||
| Non-operating income (loss) (1) | $ | 1,632 | $ | 2,825 | (42.2 | %) | |||
| Net income attributable to common stockholders | $ | 35,314 | $ | 32,498 | 8.7 | % | |||
| Diluted earnings per share | $ | 0.71 | $ | 0.66 | 8.5 | % | |||
| Operating margin | 35.6 | % | 37.3 | % | N/A | (170 bps) | |||
| As Adjusted (2) | |||||||||
| Net income attributable to common stockholders | $ | 37,594 | $ | 38,730 | (2.9 | %) | |||
| Diluted earnings per share | $ | 0.76 | $ | 0.79 | (3.1 | %) | |||
| Operating margin | 38.0 | % | 40.5 | % | N/A | (250 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 13-15 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>2023 | December 31,<br>2022 | Change | % Change | ||||
| Investment advisory and administration fees | |||||||
| Open-end funds | $ | 62,520 | $ | 61,693 | 1.3 | % | |
| Institutional accounts | 30,629 | 30,400 | 0.8 | % | |||
| Closed-end funds | 24,885 | 25,009 | (0.5) | % | |||
| Total | 118,034 | 117,102 | 0.8 | % | |||
| Distribution and service fees | 7,562 | 7,662 | (1.3) | % | |||
| Other | 486 | 571 | (14.9) | % | |||
| Total revenue | $ | 126,082 | $ | 125,335 | 0.6 | % |
All values are in US Dollars.
•The increase in total investment advisory and administration fees from the fourth quarter of 2022 was primarily due to higher average assets under management across all three types of investment vehicles, partially offset by two fewer days in the quarter.
Expenses
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| March 31,<br>2023 | December 31,<br>2022 | Change | % Change | ||||
| Employee compensation and benefits | $ | 48,857 | $ | 48,562 | 0.6 | % | |
| Distribution and service fees | 14,216 | 14,323 | (0.7) | % | |||
| General and administrative | 17,122 | 14,530 | 17.8 | % | |||
| Depreciation and amortization | 988 | 1,148 | (13.9) | % | |||
| Total expenses | $ | 81,183 | $ | 78,563 | 3.3 | % |
All values are in US Dollars.
•Employee compensation and benefits increased from the fourth quarter of 2022, primarily due to an increase in benefits of $1.7 million and higher salaries of $1.1 million, partially offset by lower amortization of restricted stock units of $2.4 million;
•Distribution and service fees decreased from the fourth quarter of 2022, primarily due to two fewer days in the quarter, partially offset by higher average assets under management in U.S. open-end funds; and
•General and administrative expenses increased from the fourth quarter of 2022, primarily due to incremental lease costs of $2.1 million related to the company's future headquarters at 1166 Avenue of the Americas. The fourth quarter of 2022 included one month of incremental lease costs.
Operating Margin
Operating margin was 35.6% for the first quarter of 2023, compared with 37.3% for the fourth quarter of 2022. Operating margin represents the ratio of operating income to revenue.
Non-operating Income (Loss)
| (in thousands) | Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | |||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | ||||||
| Interest and dividend income—net | $ | 884 | $ | 843 | $ | 1,489 | $ | 3,216 | |
| Gain (loss) from investments—net | (7) | 45 | (346) | (1) | (308) | ||||
| Foreign currency gain (loss)—net | 41 | 24 | (1,341) | (1,276) | |||||
| Total non-operating income (loss) | 918 | 912 | (198) | 1,632 | |||||
| Net (income) loss attributable to noncontrolling interests | (984) | — | — | (984) | |||||
| Non-operating income (loss) attributable to the company | $ | (66) | $ | 912 | $ | (198) | $ | 648 | |
| _________________________<br><br><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. | |||||||||
| (in thousands) | Three Months Ended | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, 2022 | |||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | ||||||
| Interest and dividend income—net | $ | 739 | $ | 537 | $ | 1,216 | $ | 2,492 | |
| Gain (loss) from investments—net | 6,750 | 1,463 | (2,393) | (1) | 5,820 | ||||
| Foreign currency gain (loss)—net | (1,633) | (5) | (3,849) | (5,487) | |||||
| Total non-operating income (loss) | 5,856 | 1,995 | (5,026) | 2,825 | |||||
| Net (income) loss attributable to noncontrolling interests | (4,384) | — | — | (4,384) | |||||
| Non-operating income (loss) attributable to the company | $ | 1,472 | $ | 1,995 | $ | (5,026) | $ | (1,559) | |
| _________________________<br><br><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. |
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>2023 | December 31,<br>2022 | |||
| U.S. statutory tax rate | 21.0 | % | 21.0 | % |
| State and local income taxes, net of federal benefit | 3.1 | 4.1 | ||
| Non-deductible executive compensation | 3.0 | 4.3 | ||
| Unrecognized tax benefit adjustments | 0.2 | (2.3) | ||
| Excess tax benefits related to the vesting and delivery of restricted stock units | (4.6) | — | ||
| Other | (0.2) | 1.0 | ||
| Effective income tax rate | 22.5 | % | 28.1 | % |
Assets Under Management
| (in millions) | As of | |||||
|---|---|---|---|---|---|---|
| By Investment Vehicle | March 31,<br>2023 | December 31,<br>2022 | % Change | |||
| Open-end funds | $ | 36,427 | $ | 36,903 | (1.3 | %) |
| Institutional accounts | 32,604 | 32,373 | 0.7 | % | ||
| Closed-end funds | 10,874 | 11,149 | (2.5 | %) | ||
| Total | $ | 79,905 | $ | 80,425 | (0.6 | %) |
| By Investment Strategy | ||||||
| U.S. real estate | $ | 36,080 | $ | 35,108 | 2.8 | % |
| Preferred securities | 18,210 | 19,767 | (7.9 | %) | ||
| Global/international real estate | 14,762 | 14,782 | (0.1 | %) | ||
| Global listed infrastructure | 8,596 | 8,596 | — | % | ||
| Other | 2,257 | 2,172 | 3.9 | % | ||
| Total | $ | 79,905 | $ | 80,425 | (0.6 | %) |
Assets under management at March 31, 2023 were $79.9 billion, a decrease of 0.6% from $80.4 billion at December 31, 2022. The decrease was driven by net outflows of $497 million and distributions of $694 million, partially offset by market appreciation of $671 million.
Open-end Funds
Assets under management in open-end funds at March 31, 2023 were $36.4 billion, a decrease of 1.3% from $36.9 billion at December 31, 2022. The decrease was primarily due to the following:
•Net outflows of $676 million from preferred securities, partially offset by net inflows of $298 million into U.S. real estate;
•Market appreciation of $464 million from U.S. real estate, partially offset by market depreciation of $376 million from preferred securities; and
•Distributions of $145 million from preferred securities and $133 million from U.S. real estate. Of these distributions, $235 million was reinvested and included in net flows.
Institutional Accounts
Assets under management in institutional accounts at March 31, 2023 were $32.6 billion, an increase of 0.7% from $32.4 billion at December 31, 2022. The increase was primarily due to the following:
•Advisory:
◦Net outflows of $171 million from U.S. real estate, $99 million from preferred securities and $78 million from global/international real estate; and
◦Market appreciation of $143 million from U.S. real estate and $95 million from global/international real estate.
•Japan subadvisory:
◦Net inflows of $335 million into U.S. real estate;
◦Market appreciation of $218 million from U.S. real estate; and
◦Distributions of $252 million from U.S. real estate.
•Subadvisory excluding Japan:
◦Net outflows of $45 million; and
◦Market appreciation of $80 million.
Closed-end Funds
Assets under management in closed-end funds at March 31, 2023 were $10.9 billion, a decrease of 2.5% from $11.1 billion at December 31, 2022. The decrease was due to net outflows of $74 million, market depreciation of $47 million and distributions of $154 million.
Investment Performance at March 31, 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 March 31, 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 March 31, 2023, cash, cash equivalents, U.S. Treasurys and liquid seed investments were $247.6 million, compared with $316.1 million as of December 31, 2022. As of March 31, 2023, stockholders' equity was $337.0 million, compared with $337.6 million as of December 31, 2022.
On January 20, 2023, the company entered into a credit agreement providing for a $100.0 million senior unsecured revolving credit facility. To date, the company has not drawn upon the credit agreement.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, April 20, 2023 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 20, 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 and Tokyo.
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 | ||||||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | December 31,<br>2022 | March 31,<br>2022 | |||||||||
| Revenue: | |||||||||||||
| Investment advisory and administration fees | $ | 118,034 | $ | 117,102 | $ | 143,669 | |||||||
| Distribution and service fees | 7,562 | 7,662 | 9,869 | ||||||||||
| Other | 486 | 571 | 651 | ||||||||||
| Total revenue | 126,082 | 125,335 | 154,189 | 0.6 | % | (18.2 | %) | ||||||
| Expenses: | |||||||||||||
| Employee compensation and benefits | 48,857 | 48,562 | 54,743 | ||||||||||
| Distribution and service fees | 14,216 | 14,323 | 33,951 | ||||||||||
| General and administrative | 17,122 | 14,530 | 13,510 | ||||||||||
| Depreciation and amortization | 988 | 1,148 | 994 | ||||||||||
| Total expenses | 81,183 | 78,563 | 103,198 | 3.3 | % | (21.3 | %) | ||||||
| Operating income | 44,899 | 46,772 | 50,991 | (4.0 | %) | (11.9 | %) | ||||||
| Non-operating income (loss): | |||||||||||||
| Interest and dividend income—net | 3,216 | 2,492 | 897 | ||||||||||
| Gain (loss) from investments—net | (308) | 5,820 | 3,567 | ||||||||||
| Foreign currency gain (loss)—net | (1,276) | (5,487) | 646 | ||||||||||
| Total non-operating income (loss) | 1,632 | 2,825 | 5,110 | (42.2 | %) | (68.1 | %) | ||||||
| Income before provision for income taxes | 46,531 | 49,597 | 56,101 | (6.2 | %) | (17.1 | %) | ||||||
| Provision for income taxes | 10,233 | 12,715 | 9,260 | ||||||||||
| Net income | 36,298 | 36,882 | 46,841 | (1.6 | %) | (22.5 | %) | ||||||
| Net (income) loss attributable to noncontrolling interests | (984) | (4,384) | (4,823) | ||||||||||
| Net income attributable to common stockholders | $ | 35,314 | $ | 32,498 | $ | 42,018 | 8.7 | % | (16.0 | %) | |||
| Earnings per share attributable to common <br>stockholders: | |||||||||||||
| Basic | $ | 0.72 | $ | 0.67 | $ | 0.86 | 7.9 | % | (16.9 | %) | |||
| Diluted | $ | 0.71 | $ | 0.66 | $ | 0.85 | 8.5 | % | (16.1 | %) | |||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 49,199 | 48,831 | 48,673 | ||||||||||
| Diluted | 49,402 | 49,328 | 49,337 | ||||||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Vehicle | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | December 31,<br>2022 | March 31,<br>2022 | |||||||||
| Open-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 36,903 | $ | 37,346 | $ | 50,911 | |||||||
| Inflows | 3,474 | 4,175 | 4,886 | ||||||||||
| Outflows | (3,779) | (5,181) | (4,678) | ||||||||||
| Net inflows (outflows) | (305) | (1,006) | 208 | ||||||||||
| Market appreciation (depreciation) | 110 | 1,319 | (2,735) | ||||||||||
| Distributions | (281) | (756) | (279) | ||||||||||
| Total increase (decrease) | (476) | (443) | (2,806) | ||||||||||
| Assets under management, end of period | $ | 36,427 | $ | 36,903 | $ | 48,105 | (1.3 | %) | (24.3 | %) | |||
| Percentage of total assets under management | 45.6 | % | 45.9 | % | 47.1 | % | |||||||
| Average assets under management | $ | 38,440 | $ | 37,311 | $ | 48,055 | 3.0 | % | (20.0 | %) | |||
| Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 32,373 | $ | 30,867 | $ | 42,727 | |||||||
| Inflows | 715 | 1,222 | 2,060 | ||||||||||
| Outflows | (833) | (1,306) | (2,066) | ||||||||||
| Net inflows (outflows) | (118) | (84) | (6) | ||||||||||
| Market appreciation (depreciation) | 608 | 1,827 | (1,494) | ||||||||||
| Distributions | (259) | (237) | (271) | ||||||||||
| Total increase (decrease) | 231 | 1,506 | (1,771) | ||||||||||
| Assets under management, end of period | $ | 32,604 | $ | 32,373 | $ | 40,956 | 0.7 | % | (20.4 | %) | |||
| Percentage of total assets under management | 40.8 | % | 40.3 | % | 40.1 | % | |||||||
| Average assets under management | $ | 33,409 | $ | 32,032 | $ | 40,631 | 4.3 | % | (17.8 | %) | |||
| Closed-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 11,149 | $ | 10,985 | $ | 12,991 | |||||||
| Inflows | 11 | 8 | 554 | ||||||||||
| Outflows | (85) | — | — | ||||||||||
| Net inflows (outflows) | (74) | 8 | 554 | ||||||||||
| Market appreciation (depreciation) | (47) | 399 | (337) | ||||||||||
| Distributions | (154) | (243) | (147) | ||||||||||
| Total increase (decrease) | (275) | 164 | 70 | ||||||||||
| Assets under management, end of period | $ | 10,874 | $ | 11,149 | $ | 13,061 | (2.5 | %) | (16.7 | %) | |||
| Percentage of total assets under management | 13.6 | % | 13.9 | % | 12.8 | % | |||||||
| Average assets under management | $ | 11,353 | $ | 11,168 | $ | 12,550 | 1.7 | % | (9.5 | %) | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 80,425 | $ | 79,198 | $ | 106,629 | |||||||
| Inflows | 4,200 | 5,405 | 7,500 | ||||||||||
| Outflows | (4,697) | (6,487) | (6,744) | ||||||||||
| Net inflows (outflows) | (497) | (1,082) | 756 | ||||||||||
| Market appreciation (depreciation) | 671 | 3,545 | (4,566) | ||||||||||
| Distributions | (694) | (1,236) | (697) | ||||||||||
| Total increase (decrease) | (520) | 1,227 | (4,507) | ||||||||||
| Assets under management, end of period | $ | 79,905 | $ | 80,425 | $ | 102,122 | (0.6 | %) | (21.8 | %) | |||
| Average assets under management | $ | 83,202 | $ | 80,511 | $ | 101,236 | 3.3 | % | (17.8 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management - Institutional Accounts | |||||||||||||
| By Account Type | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | December 31,<br>2022 | March 31,<br>2022 | |||||||||
| Advisory | |||||||||||||
| Assets under management, beginning of period | $ | 18,631 | $ | 17,974 | $ | 24,599 | |||||||
| Inflows | 222 | 517 | 1,573 | ||||||||||
| Outflows | (621) | (909) | (1,615) | ||||||||||
| Net inflows (outflows) | (399) | (392) | (42) | ||||||||||
| Market appreciation (depreciation) | 258 | 1,049 | (831) | ||||||||||
| Total increase (decrease) | (141) | 657 | (873) | ||||||||||
| Assets under management, end of period | $ | 18,490 | $ | 18,631 | $ | 23,726 | (0.8 | %) | (22.1 | %) | |||
| Percentage of institutional assets under management | 56.7 | % | 57.6 | % | 57.9 | % | |||||||
| Average assets under management | $ | 19,123 | $ | 18,557 | $ | 23,861 | 3.1 | % | (19.9 | %) | |||
| Japan Subadvisory | |||||||||||||
| Assets under management, beginning of period | $ | 8,376 | $ | 7,915 | $ | 11,329 | |||||||
| Inflows | 385 | 327 | 219 | ||||||||||
| Outflows | (59) | (46) | (103) | ||||||||||
| Net inflows (outflows) | 326 | 281 | 116 | ||||||||||
| Market appreciation (depreciation) | 270 | 417 | (482) | ||||||||||
| Distributions | (259) | (237) | (271) | ||||||||||
| Total increase (decrease) | 337 | 461 | (637) | ||||||||||
| Assets under management, end of period | $ | 8,713 | $ | 8,376 | $ | 10,692 | 4.0 | % | (18.5 | %) | |||
| Percentage of institutional assets under management | 26.7 | % | 25.9 | % | 26.1 | % | |||||||
| Average assets under management | $ | 8,739 | $ | 8,197 | $ | 10,351 | 6.6 | % | (15.6 | %) | |||
| Subadvisory Excluding Japan | |||||||||||||
| Assets under management, beginning of period | $ | 5,366 | $ | 4,978 | $ | 6,799 | |||||||
| Inflows | 108 | 378 | 268 | ||||||||||
| Outflows | (153) | (351) | (348) | ||||||||||
| Net inflows (outflows) | (45) | 27 | (80) | ||||||||||
| Market appreciation (depreciation) | 80 | 361 | (181) | ||||||||||
| Total increase (decrease) | 35 | 388 | (261) | ||||||||||
| Assets under management, end of period | $ | 5,401 | $ | 5,366 | $ | 6,538 | 0.7 | % | (17.4 | %) | |||
| Percentage of institutional assets under management | 16.6 | % | 16.6 | % | 16.0 | % | |||||||
| Average assets under management | $ | 5,547 | $ | 5,278 | $ | 6,419 | 5.1 | % | (13.6 | %) | |||
| Total Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 32,373 | $ | 30,867 | $ | 42,727 | |||||||
| Inflows | 715 | 1,222 | 2,060 | ||||||||||
| Outflows | (833) | (1,306) | (2,066) | ||||||||||
| Net inflows (outflows) | (118) | (84) | (6) | ||||||||||
| Market appreciation (depreciation) | 608 | 1,827 | (1,494) | ||||||||||
| Distributions | (259) | (237) | (271) | ||||||||||
| Total increase (decrease) | 231 | 1,506 | (1,771) | ||||||||||
| Assets under management, end of period | $ | 32,604 | $ | 32,373 | $ | 40,956 | 0.7 | % | (20.4 | %) | |||
| Average assets under management | $ | 33,409 | $ | 32,032 | $ | 40,631 | 4.3 | % | (17.8 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | December 31,<br>2022 | March 31,<br>2022 | |||||||||
| U.S. Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 35,108 | $ | 34,696 | $ | 49,915 | |||||||
| Inflows | 2,033 | 2,554 | 3,293 | ||||||||||
| Outflows | (1,599) | (2,618) | (2,736) | ||||||||||
| Net inflows (outflows) | 434 | (64) | 557 | ||||||||||
| Market appreciation (depreciation) | 907 | 1,366 | (2,792) | ||||||||||
| Distributions | (437) | (883) | (412) | ||||||||||
| Transfers | 68 | (7) | — | ||||||||||
| Total increase (decrease) | 972 | 412 | (2,647) | ||||||||||
| Assets under management, end of period | $ | 36,080 | $ | 35,108 | $ | 47,268 | 2.8 | % | (23.7 | %) | |||
| Percentage of total assets under management | 45.2 | % | 43.7 | % | 46.3 | % | |||||||
| Average assets under management | $ | 36,772 | $ | 35,326 | $ | 46,462 | 4.1 | % | (20.9 | %) | |||
| Preferred Securities | |||||||||||||
| Assets under management, beginning of period | $ | 19,767 | $ | 20,519 | $ | 26,987 | |||||||
| Inflows | 1,454 | 1,485 | 1,964 | ||||||||||
| Outflows | (2,326) | (2,358) | (2,872) | ||||||||||
| Net inflows (outflows) | (872) | (873) | (908) | ||||||||||
| Market appreciation (depreciation) | (492) | 333 | (1,400) | ||||||||||
| Distributions | (195) | (219) | (213) | ||||||||||
| Transfers | 2 | 7 | — | ||||||||||
| Total increase (decrease) | (1,557) | (752) | (2,521) | ||||||||||
| Assets under management, end of period | $ | 18,210 | $ | 19,767 | $ | 24,466 | (7.9 | %) | (25.6 | %) | |||
| Percentage of total assets under management | 22.8 | % | 24.6 | % | 24.0 | % | |||||||
| Average assets under management | $ | 20,227 | $ | 20,083 | $ | 25,649 | 0.7 | % | (21.1 | %) | |||
| Global/International Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 14,782 | $ | 13,871 | $ | 19,380 | |||||||
| Inflows | 273 | 904 | 1,556 | ||||||||||
| Outflows | (417) | (949) | (780) | ||||||||||
| Net inflows (outflows) | (144) | (45) | 776 | ||||||||||
| Market appreciation (depreciation) | 202 | 995 | (775) | ||||||||||
| Distributions | (8) | (39) | (19) | ||||||||||
| Transfers | (70) | — | — | ||||||||||
| Total increase (decrease) | (20) | 911 | (18) | ||||||||||
| Assets under management, end of period | $ | 14,762 | $ | 14,782 | $ | 19,362 | (0.1 | %) | (23.8 | %) | |||
| Percentage of total assets under management | 18.5 | % | 18.4 | % | 19.0 | % | |||||||
| Average assets under management | $ | 15,321 | $ | 14,454 | $ | 18,867 | 6.0 | % | (18.8 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy - continued | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | December 31,<br>2022 | March 31,<br>2022 | |||||||||
| Global Listed Infrastructure | |||||||||||||
| Assets under management, beginning of period | $ | 8,596 | $ | 8,030 | $ | 8,763 | |||||||
| Inflows | 135 | 247 | 464 | ||||||||||
| Outflows | (124) | (309) | (299) | ||||||||||
| Net inflows (outflows) | 11 | (62) | 165 | ||||||||||
| Market appreciation (depreciation) | 35 | 696 | 314 | ||||||||||
| Distributions | (46) | (68) | (45) | ||||||||||
| Total increase (decrease) | — | 566 | 434 | ||||||||||
| Assets under management, end of period | $ | 8,596 | $ | 8,596 | $ | 9,197 | — | % | (6.5 | %) | |||
| Percentage of total assets under management | 10.8 | % | 10.7 | % | 9.0 | % | |||||||
| Average assets under management | $ | 8,682 | $ | 8,469 | $ | 8,609 | 2.5 | % | 0.8 | % | |||
| Other | |||||||||||||
| Assets under management, beginning of period | $ | 2,172 | $ | 2,082 | $ | 1,584 | |||||||
| Inflows | 305 | 215 | 223 | ||||||||||
| Outflows | (231) | (253) | (57) | ||||||||||
| Net inflows (outflows) | 74 | (38) | 166 | ||||||||||
| Market appreciation (depreciation) | 19 | 155 | 87 | ||||||||||
| Distributions | (8) | (27) | (8) | ||||||||||
| Total increase (decrease) | 85 | 90 | 245 | ||||||||||
| Assets under management, end of period | $ | 2,257 | $ | 2,172 | $ | 1,829 | 3.9 | % | 23.4 | % | |||
| Percentage of total assets under management | 2.8 | % | 2.7 | % | 1.8 | % | |||||||
| Average assets under management | $ | 2,200 | $ | 2,179 | $ | 1,649 | 1.0 | % | 33.4 | % | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 80,425 | $ | 79,198 | $ | 106,629 | |||||||
| Inflows | 4,200 | 5,405 | 7,500 | ||||||||||
| Outflows | (4,697) | (6,487) | (6,744) | ||||||||||
| Net inflows (outflows) | (497) | (1,082) | 756 | ||||||||||
| Market appreciation (depreciation) | 671 | 3,545 | (4,566) | ||||||||||
| Distributions | (694) | (1,236) | (697) | ||||||||||
| Total increase (decrease) | (520) | 1,227 | (4,507) | ||||||||||
| Assets under management, end of period | $ | 79,905 | $ | 80,425 | $ | 102,122 | (0.6 | %) | (21.8 | %) | |||
| Average assets under management | $ | 83,202 | $ | 80,511 | $ | 101,236 | 3.3 | % | (17.8 | %) |
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 philosophy 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 Results<br><br>Net Income Attributable to Common Stockholders and Diluted Earnings per Share | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | Three Months Ended | ||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | |||||||
| Net income attributable to common stockholders, U.S. GAAP | $ | 35,314 | $ | 32,498 | $ | 42,018 | |||
| Seed investments—net (1) | 968 | (539) | 1,051 | ||||||
| Accelerated vesting of restricted stock units | 245 | 2,909 | 2,305 | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | 2,443 | 776 | — | ||||||
| Initial public offering costs (3) | — | — | 15,239 | ||||||
| Foreign currency exchange (gains) losses—net (4) | 1,090 | 3,944 | (1,212) | ||||||
| Tax adjustments—net (5) | (2,466) | (858) | (8,249) | ||||||
| Net income attributable to common stockholders, as adjusted | $ | 37,594 | $ | 38,730 | $ | 51,152 | |||
| Diluted weighted average shares outstanding | 49,402 | 49,328 | 49,337 | ||||||
| Diluted earnings per share, U.S. GAAP | $ | 0.71 | $ | 0.66 | $ | 0.85 | |||
| Seed investments—net | 0.02 | (0.01) | 0.02 | ||||||
| Accelerated vesting of restricted stock units | 0.01 | 0.06 | 0.05 | ||||||
| Lease transition and other costs - 280 Park Avenue | 0.05 | 0.02 | — | ||||||
| Initial public offering costs | — | — | 0.31 | ||||||
| Foreign currency exchange (gains) losses—net | 0.02 | 0.08 | (0.02) | ||||||
| Tax adjustments—net | (0.05) | (0.02) | (0.17) | ||||||
| Diluted earnings per share, as adjusted | $ | 0.76 | $ | 0.79 | $ | 1.04 | |||
| _________________________<br><br>(1)Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles as well as non-operating (income) loss from seed investments that were not consolidated. In accordance with the company’s revised philosophy, interest and dividends from seed investments were not included in the adjustment for the three months ended March 31, 2023.<br><br>(2)Represents lease and other expenses related to the company's current headquarters at 280 Park Avenue, which it expects to vacate in the fourth quarter of 2023. In connection with the transition to its future headquarters, the company will recognize additional GAAP expense as a result of the overlapping terms for both its current and future headquarters until its current headquarters lease expires in January 2024.<br><br>(3)Represents costs associated with the initial public offering of the Cohen & Steers Real Estate Opportunities and Income Fund (RLTY). Costs are summarized in the following table: | |||||||||
| (in thousands) | Three Months Ended | ||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | |||||||
| Employee compensation and benefits | $ | — | $ | — | $ | 357 | |||
| Distribution and service fees | — | — | 14,224 | ||||||
| General and administrative | — | — | 658 | ||||||
| Initial public offering costs | $ | — | $ | — | $ | 15,239 | |||
| (4)Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.<br><br>(5)Tax adjustments are summarized in the following table: | |||||||||
| (in thousands) | Three Months Ended | ||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | |||||||
| Exclusion of tax effects associated with items noted above | $ | (1,285) | $ | 443 | $ | (4,281) | |||
| Exclusion of discrete tax items | (1,181) | (1,301) | (3,968) | ||||||
| Total tax adjustments | $ | (2,466) | $ | (858) | $ | (8,249) | |||
| 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 | ||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | |||||||
| Revenue, U.S. GAAP | $ | 126,082 | $ | 125,335 | $ | 154,189 | |||
| Seed investments (1) | 183 | 160 | 123 | ||||||
| Revenue, as adjusted | $ | 126,265 | $ | 125,495 | $ | 154,312 | |||
| Expenses, U.S. GAAP | $ | 81,183 | $ | 78,563 | $ | 103,198 | |||
| Seed investments (1) | (267) | (240) | (276) | ||||||
| Accelerated vesting of restricted stock units | (245) | (2,909) | (2,305) | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | (2,443) | (776) | — | ||||||
| Initial public offering costs (3) | — | — | (15,239) | ||||||
| Expenses, as adjusted | $ | 78,228 | $ | 74,638 | $ | 85,378 | |||
| Operating income, U.S. GAAP | $ | 44,899 | $ | 46,772 | $ | 50,991 | |||
| Seed investments (1) | 450 | 400 | 399 | ||||||
| Accelerated vesting of restricted stock units | 245 | 2,909 | 2,305 | ||||||
| Lease transition and other costs - 280 Park Avenue (2) | 2,443 | 776 | — | ||||||
| Initial public offering costs (3) | — | — | 15,239 | ||||||
| Operating income, as adjusted | $ | 48,037 | $ | 50,857 | $ | 68,934 | |||
| Operating margin, U.S. GAAP | 35.6 | % | 37.3 | % | 33.1 | % | |||
| Operating margin, as adjusted | 38.0 | % | 40.5 | % | 44.7 | % | |||
| _________________________<br><br><br><br>(1)Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles.<br><br>(2)Represents lease and other expenses related to the company's current headquarters at 280 Park Avenue, which it expects to vacate in the fourth quarter of 2023. In connection with the transition to its future headquarters, the company will recognize additional GAAP expense as a result of the overlapping terms for both its current and future headquarters until its current headquarters lease expires in January 2024.<br><br>(3)Represents costs associated with the initial public offering of RLTY. Costs are summarized in the following table: | |||||||||
| (in thousands) | Three Months Ended | ||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | |||||||
| Employee compensation and benefits | $ | — | $ | — | $ | 357 | |||
| Distribution and service fees | — | — | 14,224 | ||||||
| General and administrative | — | — | 658 | ||||||
| Initial public offering costs | $ | — | $ | — | $ | 15,239 | |||
| Reconciliation of U.S. GAAP to As Adjusted Financial Results<br><br>Non-operating Income (Loss) | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| (in thousands) | Three Months Ended | ||||||||
| March 31,<br>2023 | December 31,<br>2022 | March 31,<br>2022 | |||||||
| Non-operating income (loss), U.S. GAAP | $ | 1,632 | $ | 2,825 | $ | 5,110 | |||
| Seed investments—net (1) | (466) | (5,323) | (4,171) | ||||||
| Foreign currency exchange (gains) losses—net (2) | 1,090 | 3,944 | (1,212) | ||||||
| Non-operating income (loss), as adjusted | $ | 2,256 | $ | 1,446 | $ | (273) | |||
| _________________________<br><br><br><br>(1)Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles as well as non-operating (income) loss from seed investments that were not consolidated. In accordance with the company’s revised philosophy, interest and dividends from seed investments were not included in the adjustment for the three months ended March 31, 2023.<br><br>(2)Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. |
15