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): January 25, 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 January 25, 2023, Cohen & Steers, Inc. (the Company) reported, among other things, the Company's operating results for the fourth quarter and year ended December 31, 2022. Copies of the press release announcing the availability of the Company’s operating 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 January 25, 2023 |
| 99.2 | Earnings release dated January 25, 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: January 25, 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 FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2022
New York, NY, January 25, 2023—Cohen & Steers, Inc. (NYSE: CNS) today reported its operating results for the fourth quarter and year ended December 31, 2022. The earnings release along with the accompanying earnings presentation can be viewed at Cohen & Steers Reports Results for Fourth Quarter and Year Ended December 31, 2022 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, January 26, 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 January 26, 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 THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2022
•Diluted EPS of $0.66 for the fourth quarter; $0.79 as adjusted
•Diluted EPS of $3.47 for the full year; $3.70 as adjusted
•Operating margin of 37.3% for the fourth quarter; 40.5% as adjusted
•Operating margin of 38.1% for the full year; 43.0% as adjusted
•Ending AUM of $80.4 billion; average AUM of $80.5 billion for the fourth quarter
•Net outflows of $1.1 billion for the fourth quarter
NEW YORK, NY, January 25, 2023—Cohen & Steers, Inc. (NYSE: CNS) today reported its operating results for the fourth quarter and year ended December 31, 2022.
Financial Highlights
| (in thousands, except percentages and per share data) | Three Months Ended | Year Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||
| U.S. GAAP | |||||||||||||||
| Revenue | $ | 125,335 | $ | 139,951 | $ | 159,629 | $ | 566,906 | $ | 583,832 | |||||
| Expenses | $ | 78,563 | $ | 82,770 | $ | 79,123 | $ | 350,968 | $ | 323,460 | |||||
| Operating income | $ | 46,772 | $ | 57,181 | $ | 80,506 | $ | 215,938 | $ | 260,372 | |||||
| Non-operating income (loss) (1) | $ | 2,825 | $ | (1,974) | $ | 6,837 | $ | (19,041) | $ | 21,572 | |||||
| Net income attributable to common stockholders | $ | 32,498 | $ | 44,570 | $ | 64,482 | $ | 171,042 | $ | 211,396 | |||||
| Diluted earnings per share | $ | 0.66 | $ | 0.90 | $ | 1.30 | $ | 3.47 | $ | 4.31 | |||||
| Operating margin | 37.3 | % | 40.9 | % | 50.4 | % | 38.1 | % | 44.6 | % | |||||
| As Adjusted (2) | |||||||||||||||
| Net income attributable to common stockholders | $ | 38,730 | $ | 45,167 | $ | 61,264 | $ | 182,251 | $ | 197,947 | |||||
| Diluted earnings per share | $ | 0.79 | $ | 0.92 | $ | 1.24 | $ | 3.70 | $ | 4.03 | |||||
| Operating margin | 40.5 | % | 42.8 | % | 51.7 | % | 43.0 | % | 46.0 | % | |||||
| _________________________<br><br>(1)Includes 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. |
Revenue
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| December 31, 2022 | September 30, 2022 | Change | % Change | ||||
| Investment advisory and administration fees | |||||||
| Open-end funds | $ | 61,693 | $ | 71,434 | (13.6) | % | |
| Institutional accounts | 30,400 | 32,500 | (6.5) | % | |||
| Closed-end funds | 25,009 | 26,951 | (7.2) | % | |||
| Total | 117,102 | 130,885 | (10.5) | % | |||
| Distribution and service fees | 7,662 | 8,557 | (10.5) | % | |||
| Other | 571 | 509 | 12.2 | % | |||
| Total revenue | $ | 125,335 | $ | 139,951 | (10.4) | % |
All values are in US Dollars.
•The decrease in total investment advisory and administration fees from the third quarter of 2022 was primarily due to lower average assets under management across all three types of investment vehicles; and
•The decrease in distribution and service fees from the third quarter of 2022 was primarily due to lower average assets under management in U.S. open-end funds.
Expenses
| (in thousands) | Three Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| December 31, 2022 | September 30, 2022 | Change | % Change | ||||
| Employee compensation and benefits | $ | 48,562 | $ | 51,669 | (6.0) | % | |
| Distribution and service fees | 14,323 | 16,418 | (12.8) | % | |||
| General and administrative | 14,530 | 13,548 | 7.2 | % | |||
| Depreciation and amortization | 1,148 | 1,135 | 1.1 | % | |||
| Total expenses | $ | 78,563 | $ | 82,770 | (5.1) | % |
All values are in US Dollars.
•Employee compensation and benefits decreased from the third quarter of 2022, primarily due to a decrease in incentive compensation to reflect the actual amount expected to be paid;
•Distribution and service fees decreased from the third quarter of 2022, primarily due to lower average assets under management in U.S. open-end funds; and
•General and administrative expenses increased from the third quarter of 2022, primarily due to one month of incremental lease expense related to the company's future headquarters at 1166 Avenue of the Americas of $1.1 million. The company will recognize lease expense for both its current and future headquarters until its current headquarters lease expires in January 2024.
Operating Margin
Operating margin was 37.3% for the fourth quarter of 2022, compared with 40.9% for the third quarter of 2022. Operating margin represents the ratio of operating income to revenue.
Non-operating Income (Loss)
| (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 redeemable noncontrolling interests | (4,384) | — | — | (4,384) | ||||||||||||||||
| Non-operating income (loss) attributable to the company | $ | 1,472 | $ | 1,995 | $ | (5,026) | $ | (1,559) | ||||||||||||
| _________________________<br><br>(1)Comprised primarily of gain (loss) on derivative contracts, which are utilized to hedge a portion of the market risk of the company's seed investments including both consolidated investment vehicles and corporate seed investments. | (in thousands) | Three Months Ended | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| September 30, 2022 | ||||||||||||||||||||
| Consolidated <br>Investment Vehicles | Corporate <br>Seed Investments | Corporate Other | Total | |||||||||||||||||
| Interest and dividend income—net | $ | 746 | $ | 359 | $ | 436 | $ | 1,541 | ||||||||||||
| Gain (loss) from investments—net | (7,185) | (2,099) | 3,364 | (1) | (5,920) | |||||||||||||||
| Foreign currency gain (loss)—net | (1,215) | (3) | 3,623 | 2,405 | ||||||||||||||||
| Total non-operating income (loss) | (7,654) | (1,743) | 7,423 | (1,974) | ||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 4,956 | — | — | 4,956 | ||||||||||||||||
| Non-operating income (loss) attributable to the company | $ | (2,698) | $ | (1,743) | $ | 7,423 | $ | 2,982 | ||||||||||||
| _________________________<br><br>(1)Comprised primarily of gain (loss) on derivative contracts, which are utilized to hedge a portion of the market risk of the company's seed investments including 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 | ||||
|---|---|---|---|---|
| December 31, 2022 | September 30, 2022 | |||
| U.S. statutory tax rate | 21.0 | % | 21.0 | % |
| State and local income taxes, net of federal benefit | 4.1 | 3.1 | ||
| Non-deductible executive compensation | 4.3 | 1.5 | ||
| Unrecognized tax benefit adjustments | (2.3) | 0.1 | ||
| Other | 1.0 | 0.2 | ||
| Effective income tax rate | 28.1 | % | 25.9 | % |
Assets Under Management
| (in millions) | As of | |||||
|---|---|---|---|---|---|---|
| By Investment Vehicle | December 31, 2022 | September 30, 2022 | % Change | |||
| Open-end funds | $ | 36,903 | $ | 37,346 | (1.2 | %) |
| Institutional accounts | 32,373 | 30,867 | 4.9 | % | ||
| Closed-end funds | 11,149 | 10,985 | 1.5 | % | ||
| Total | $ | 80,425 | $ | 79,198 | 1.5 | % |
| By Investment Strategy | ||||||
| U.S. real estate | $ | 35,108 | $ | 34,696 | 1.2 | % |
| Preferred securities | 19,767 | 20,519 | (3.7 | %) | ||
| Global/international real estate | 14,782 | 13,871 | 6.6 | % | ||
| Global listed infrastructure | 8,596 | 8,030 | 7.0 | % | ||
| Other | 2,172 | 2,082 | 4.3 | % | ||
| Total | $ | 80,425 | $ | 79,198 | 1.5 | % |
Assets under management at December 31, 2022 were $80.4 billion, an increase of 1.5% from $79.2 billion at September 30, 2022. The increase was due to market appreciation of $3.5 billion, partially offset by net outflows of $1.1 billion and distributions of $1.2 billion.
Open-end Funds
Assets under management in open-end funds at December 31, 2022 were $36.9 billion, a decrease of 1.2% from $37.3 billion at September 30, 2022. The decrease was primarily due to the following:
•Net outflows of $837 million from preferred securities;
•Market appreciation of $724 million from U.S. real estate and $238 million from preferred securities; and
•Distributions of $535 million from U.S. real estate and $143 million from preferred securities. Of these distributions, $613 million was reinvested and included in inflows.
Institutional Accounts
Assets under management in institutional accounts at December 31, 2022 were $32.4 billion, an increase of 4.9% from $30.9 billion at September 30, 2022. The increase was primarily due to the following:
•Advisory:
◦Net outflows of $160 million from U.S. real estate and $122 million from global listed infrastructure; and
◦Market appreciation of $476 million from global/international real estate, $275 million from global listed infrastructure and $219 million from U.S. real estate.
•Japan subadvisory:
◦Net inflows of $265 million into U.S. real estate;
◦Market appreciation of $294 million from U.S. real estate and $120 million from global/international real estate; and
◦Distributions of $231 million from U.S. real estate.
•Subadvisory excluding Japan:
◦Net inflows of $27 million; and
◦Market appreciation of $214 million from global/international real estate and $107 million from global listed infrastructure.
Closed-end Funds
Assets under management in closed-end funds at December 31, 2022 were $11.1 billion, an increase of 1.5% from $11.0 billion at September 30, 2022. The increase was primarily due to market appreciation of $399 million, partially offset by distributions of $243 million.
Investment Performance as of December 31, 2022
_________________________
(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 December 31, 2022. 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 December 31, 2022, cash, cash equivalents, U.S. Treasurys and liquid seed investments were $316.1 million, compared with $269.9 million as of September 30, 2022. As of December 31, 2022, stockholders' equity was $337.6 million, compared with $313.8 million as of September 30, 2022.
On January 20, 2023, the company entered into a Credit Agreement providing for a $100 million senior unsecured revolving credit facility maturing on January 20, 2026. Borrowings under the credit facility may be used for working capital and other general corporate purposes. To date, the company has not drawn on the credit facility.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, January 26, 2023, at 10:00 a.m. (ET) to discuss the company’s fourth quarter and full year 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 January 26, 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, 2021 (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 | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||
| Revenue: | |||||||||||||
| Investment advisory and administration fees | $ | 117,102 | $ | 130,885 | $ | 148,637 | |||||||
| Distribution and service fees | 7,662 | 8,557 | 10,259 | ||||||||||
| Other | 571 | 509 | 733 | ||||||||||
| Total revenue | 125,335 | 139,951 | 159,629 | (10.4 | %) | (21.5 | %) | ||||||
| Expenses: | |||||||||||||
| Employee compensation and benefits | 48,562 | 51,669 | 43,348 | ||||||||||
| Distribution and service fees | 14,323 | 16,418 | 20,631 | ||||||||||
| General and administrative | 14,530 | 13,548 | 14,213 | ||||||||||
| Depreciation and amortization | 1,148 | 1,135 | 931 | ||||||||||
| Total expenses | 78,563 | 82,770 | 79,123 | (5.1 | %) | (0.7 | %) | ||||||
| Operating income | 46,772 | 57,181 | 80,506 | (18.2 | %) | (41.9 | %) | ||||||
| Non-operating income (loss): | |||||||||||||
| Interest and dividend income—net | 2,492 | 1,541 | 705 | ||||||||||
| Gain (loss) from investments—net | 5,820 | (5,920) | 6,865 | ||||||||||
| Foreign currency gain (loss)—net | (5,487) | 2,405 | (733) | ||||||||||
| Total non-operating income (loss) | 2,825 | (1,974) | 6,837 | * | (58.7 | %) | |||||||
| Income before provision for income taxes | 49,597 | 55,207 | 87,343 | (10.2 | %) | (43.2 | %) | ||||||
| Provision for income taxes | 12,715 | 15,593 | 17,412 | ||||||||||
| Net income | 36,882 | 39,614 | 69,931 | (6.9 | %) | (47.3 | %) | ||||||
| Net (income) loss attributable to redeemable<br> noncontrolling interests | (4,384) | 4,956 | (5,449) | ||||||||||
| Net income attributable to common <br> stockholders | $ | 32,498 | $ | 44,570 | $ | 64,482 | (27.1 | %) | (49.6 | %) | |||
| Earnings per share attributable to <br>common stockholders: | |||||||||||||
| Basic | $ | 0.67 | $ | 0.91 | $ | 1.33 | (27.1 | %) | (50.0 | %) | |||
| Diluted | $ | 0.66 | $ | 0.90 | $ | 1.30 | (27.1 | %) | (49.5 | %) | |||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 48,831 | 48,815 | 48,442 | ||||||||||
| Diluted | 49,328 | 49,317 | 49,429 | ||||||||||
| _________________________<br><br><br><br>* Not meaningful. | |||||||||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | |||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| Years Ended | |||||||||||||
| December 31, 2022 | December 31, 2021 | % Change | |||||||||||
| Revenue: | |||||||||||||
| Investment advisory and administration fees | $ | 529,311 | $ | 543,544 | |||||||||
| Distribution and service fees | 35,093 | 37,630 | |||||||||||
| Other | 2,502 | 2,658 | |||||||||||
| Total revenue | 566,906 | 583,832 | (2.9 | %) | |||||||||
| Expenses: | |||||||||||||
| Employee compensation and benefits | 208,831 | 195,443 | |||||||||||
| Distribution and service fees | 82,928 | 75,891 | |||||||||||
| General and administrative | 54,826 | 48,034 | |||||||||||
| Depreciation and amortization | 4,383 | 4,092 | |||||||||||
| Total expenses | 350,968 | 323,460 | 8.5 | % | |||||||||
| Operating income | 215,938 | 260,372 | (17.1 | %) | |||||||||
| Non-operating income (loss): | |||||||||||||
| Interest and dividend income—net | 6,818 | 2,877 | |||||||||||
| Gain (loss) from investments—net | (25,106) | 18,784 | |||||||||||
| Foreign currency gain (loss)—net | (753) | (89) | |||||||||||
| Total non-operating income (loss) | (19,041) | 21,572 | * | ||||||||||
| Income before provision for income taxes | 196,897 | 281,944 | (30.2 | %) | |||||||||
| Provision for income taxes | 47,411 | 55,790 | |||||||||||
| Net income | 149,486 | 226,154 | (33.9 | %) | |||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 21,556 | (14,758) | |||||||||||
| Net income attributable to common stockholders | $ | 171,042 | $ | 211,396 | (19.1 | %) | |||||||
| Earnings per share attributable to common stockholders: | |||||||||||||
| Basic | $ | 3.51 | $ | 4.38 | (19.9 | %) | |||||||
| Diluted | $ | 3.47 | $ | 4.31 | (19.4 | %) | |||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 48,781 | 48,316 | |||||||||||
| Diluted | 49,297 | 49,090 | |||||||||||
| _________________________<br><br><br><br>* Not meaningful. | |||||||||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Vehicle | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||
| Open-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 37,346 | $ | 41,583 | $ | 45,593 | |||||||
| Inflows | 4,175 | 4,019 | 5,574 | ||||||||||
| Outflows | (5,181) | (4,751) | (3,049) | ||||||||||
| Net inflows (outflows) | (1,006) | (732) | 2,525 | ||||||||||
| Market appreciation (depreciation) | 1,319 | (3,212) | 3,929 | ||||||||||
| Distributions | (756) | (293) | (1,110) | ||||||||||
| Transfers | — | — | (26) | ||||||||||
| Total increase (decrease) | (443) | (4,237) | 5,318 | ||||||||||
| Assets under management, end of period | $ | 36,903 | $ | 37,346 | $ | 50,911 | (1.2 | %) | (27.5 | %) | |||
| Percentage of total assets under management | 45.9 | % | 47.2 | % | 47.7 | % | |||||||
| Average assets under management | $ | 37,311 | $ | 42,322 | $ | 48,054 | (11.8 | %) | (22.4 | %) | |||
| Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 30,867 | $ | 34,506 | $ | 39,347 | |||||||
| Inflows | 1,222 | 1,374 | 611 | ||||||||||
| Outflows | (1,306) | (1,251) | (1,365) | ||||||||||
| Net inflows (outflows) | (84) | 123 | (754) | ||||||||||
| Market appreciation (depreciation) | 1,827 | (3,527) | 4,384 | ||||||||||
| Distributions | (237) | (235) | (276) | ||||||||||
| Transfers | — | — | 26 | ||||||||||
| Total increase (decrease) | 1,506 | (3,639) | 3,380 | ||||||||||
| Assets under management, end of period | $ | 32,373 | $ | 30,867 | $ | 42,727 | 4.9 | % | (24.2 | %) | |||
| Percentage of total assets under management | 40.3 | % | 39.0 | % | 40.1 | % | |||||||
| Average assets under management | $ | 32,032 | $ | 35,396 | $ | 40,929 | (9.5 | %) | (21.7 | %) | |||
| Closed-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 10,985 | $ | 11,773 | $ | 12,320 | |||||||
| Inflows | 8 | 11 | 20 | ||||||||||
| Outflows | — | — | — | ||||||||||
| Net inflows (outflows) | 8 | 11 | 20 | ||||||||||
| Market appreciation (depreciation) | 399 | (647) | 830 | ||||||||||
| Distributions | (243) | (152) | (179) | ||||||||||
| Total increase (decrease) | 164 | (788) | 671 | ||||||||||
| Assets under management, end of period | $ | 11,149 | $ | 10,985 | $ | 12,991 | 1.5 | % | (14.2 | %) | |||
| Percentage of total assets under management | 13.9 | % | 13.9 | % | 12.2 | % | |||||||
| Average assets under management | $ | 11,168 | $ | 12,025 | $ | 12,647 | (7.1 | %) | (11.7 | %) | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 79,198 | $ | 87,862 | $ | 97,260 | |||||||
| Inflows | 5,405 | 5,404 | 6,205 | ||||||||||
| Outflows | (6,487) | (6,002) | (4,414) | ||||||||||
| Net inflows (outflows) | (1,082) | (598) | 1,791 | ||||||||||
| Market appreciation (depreciation) | 3,545 | (7,386) | 9,143 | ||||||||||
| Distributions | (1,236) | (680) | (1,565) | ||||||||||
| Total increase (decrease) | 1,227 | (8,664) | 9,369 | ||||||||||
| Assets under management, end of period | $ | 80,425 | $ | 79,198 | $ | 106,629 | 1.5 | % | (24.6 | %) | |||
| Average assets under management | $ | 80,511 | $ | 89,743 | $ | 101,630 | (10.3 | %) | (20.8 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management | |||||||||||||
| By Investment Vehicle | |||||||||||||
| (in millions) | |||||||||||||
| Years Ended | |||||||||||||
| December 31, 2022 | December 31, 2021 | % Change | |||||||||||
| Open-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 50,911 | $ | 35,160 | |||||||||
| Inflows | 17,939 | 19,542 | |||||||||||
| Outflows | (19,713) | (10,765) | |||||||||||
| Net inflows (outflows) | (1,774) | 8,777 | |||||||||||
| Market appreciation (depreciation) | (10,282) | 8,936 | |||||||||||
| Distributions | (1,952) | (1,936) | |||||||||||
| Transfers | — | (26) | |||||||||||
| Total increase (decrease) | (14,008) | 15,751 | |||||||||||
| Assets under management, end of period | $ | 36,903 | $ | 50,911 | (27.5 | %) | |||||||
| Percentage of total assets under management | 45.9 | % | 47.7 | % | |||||||||
| Average assets under management | $ | 43,202 | $ | 42,991 | 0.5 | % | |||||||
| Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 42,727 | $ | 33,255 | |||||||||
| Inflows | 5,915 | 6,152 | |||||||||||
| Outflows | (6,357) | (5,563) | |||||||||||
| Net inflows (outflows) | (442) | 589 | |||||||||||
| Market appreciation (depreciation) | (8,927) | 10,041 | |||||||||||
| Distributions | (985) | (1,184) | |||||||||||
| Transfers | — | 26 | |||||||||||
| Total increase (decrease) | (10,354) | 9,472 | |||||||||||
| Assets under management, end of period | $ | 32,373 | $ | 42,727 | (24.2 | %) | |||||||
| Percentage of total assets under management | 40.3 | % | 40.1 | % | |||||||||
| Average assets under management | $ | 36,383 | $ | 38,906 | (6.5 | %) | |||||||
| Closed-end Funds | |||||||||||||
| Assets under management, beginning of period | $ | 12,991 | $ | 11,493 | |||||||||
| Inflows | 575 | 206 | |||||||||||
| Outflows | — | (119) | |||||||||||
| Net inflows (outflows) | 575 | 87 | |||||||||||
| Market appreciation (depreciation) | (1,722) | 2,033 | |||||||||||
| Distributions | (695) | (622) | |||||||||||
| Total increase (decrease) | (1,842) | 1,498 | |||||||||||
| Assets under management, end of period | $ | 11,149 | $ | 12,991 | (14.2 | %) | |||||||
| Percentage of total assets under management | 13.9 | % | 12.2 | % | |||||||||
| Average assets under management | $ | 12,039 | $ | 12,317 | (2.3 | %) | |||||||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 106,629 | $ | 79,908 | |||||||||
| Inflows | 24,429 | 25,900 | |||||||||||
| Outflows | (26,070) | (16,447) | |||||||||||
| Net inflows (outflows) | (1,641) | 9,453 | |||||||||||
| Market appreciation (depreciation) | (20,931) | 21,010 | |||||||||||
| Distributions | (3,632) | (3,742) | |||||||||||
| Total increase (decrease) | (26,204) | 26,721 | |||||||||||
| Assets under management, end of period | $ | 80,425 | $ | 106,629 | (24.6 | %) | |||||||
| Average assets under management | $ | 91,624 | $ | 94,214 | (2.7 | %) | |||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management - Institutional Accounts | |||||||||||||
| By Account Type | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||
| Advisory | |||||||||||||
| Assets under management, beginning of period | $ | 17,974 | $ | 20,135 | $ | 22,818 | |||||||
| Inflows | 517 | 813 | 362 | ||||||||||
| Outflows | (909) | (1,033) | (818) | ||||||||||
| Net inflows (outflows) | (392) | (220) | (456) | ||||||||||
| Market appreciation (depreciation) | 1,049 | (1,941) | 2,211 | ||||||||||
| Transfers | — | — | 26 | ||||||||||
| Total increase (decrease) | 657 | (2,161) | 1,781 | ||||||||||
| Assets under management, end of period | $ | 18,631 | $ | 17,974 | $ | 24,599 | 3.7 | % | (24.3 | %) | |||
| Percentage of institutional assets under management | 57.6 | % | 58.2 | % | 57.6 | % | |||||||
| Average assets under management | $ | 18,557 | $ | 20,685 | $ | 23,650 | (10.3 | %) | (21.5 | %) | |||
| Japan Subadvisory | |||||||||||||
| Assets under management, beginning of period | $ | 7,915 | $ | 8,939 | $ | 10,262 | |||||||
| Inflows | 327 | 193 | 62 | ||||||||||
| Outflows | (46) | (61) | (304) | ||||||||||
| Net inflows (outflows) | 281 | 132 | (242) | ||||||||||
| Market appreciation (depreciation) | 417 | (921) | 1,585 | ||||||||||
| Distributions | (237) | (235) | (276) | ||||||||||
| Total increase (decrease) | 461 | (1,024) | 1,067 | ||||||||||
| Assets under management, end of period | $ | 8,376 | $ | 7,915 | $ | 11,329 | 5.8 | % | (26.1 | %) | |||
| Percentage of institutional assets under management | 25.9 | % | 25.6 | % | 26.5 | % | |||||||
| Average assets under management | $ | 8,197 | $ | 9,082 | $ | 10,687 | (9.7 | %) | (23.3 | %) | |||
| Subadvisory Excluding Japan | |||||||||||||
| Assets under management, beginning of period | $ | 4,978 | $ | 5,432 | $ | 6,267 | |||||||
| Inflows | 378 | 368 | 187 | ||||||||||
| Outflows | (351) | (157) | (243) | ||||||||||
| Net inflows (outflows) | 27 | 211 | (56) | ||||||||||
| Market appreciation (depreciation) | 361 | (665) | 588 | ||||||||||
| Total increase (decrease) | 388 | (454) | 532 | ||||||||||
| Assets under management, end of period | $ | 5,366 | $ | 4,978 | $ | 6,799 | 7.8 | % | (21.1 | %) | |||
| Percentage of institutional assets under management | 16.6 | % | 16.1 | % | 15.9 | % | |||||||
| Average assets under management | $ | 5,278 | $ | 5,629 | $ | 6,592 | (6.2 | %) | (19.9 | %) | |||
| Total Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 30,867 | $ | 34,506 | $ | 39,347 | |||||||
| Inflows | 1,222 | 1,374 | 611 | ||||||||||
| Outflows | (1,306) | (1,251) | (1,365) | ||||||||||
| Net inflows (outflows) | (84) | 123 | (754) | ||||||||||
| Market appreciation (depreciation) | 1,827 | (3,527) | 4,384 | ||||||||||
| Distributions | (237) | (235) | (276) | ||||||||||
| Transfers | — | — | 26 | ||||||||||
| Total increase (decrease) | 1,506 | (3,639) | 3,380 | ||||||||||
| Assets under management, end of period | $ | 32,373 | $ | 30,867 | $ | 42,727 | 4.9 | % | (24.2 | %) | |||
| Average assets under management | $ | 32,032 | $ | 35,396 | $ | 40,929 | (9.5 | %) | (21.7 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management - Institutional Accounts | |||||||||||||
| By Account Type | |||||||||||||
| (in millions) | |||||||||||||
| Years Ended | |||||||||||||
| December 31, 2022 | December 31, 2021 | % Change | |||||||||||
| Advisory | |||||||||||||
| Assets under management, beginning of period | $ | 24,599 | $ | 17,628 | |||||||||
| Inflows | 3,672 | 4,891 | |||||||||||
| Outflows | (4,734) | (2,945) | |||||||||||
| Net inflows (outflows) | (1,062) | 1,946 | |||||||||||
| Market appreciation (depreciation) | (4,906) | 4,999 | |||||||||||
| Transfers | — | 26 | |||||||||||
| Total increase (decrease) | (5,968) | 6,971 | |||||||||||
| Assets under management, end of period | $ | 18,631 | $ | 24,599 | (24.3 | %) | |||||||
| Percentage of institutional assets under management | 57.6 | % | 57.6 | % | |||||||||
| Average assets under management | $ | 21,233 | $ | 22,092 | (3.9 | %) | |||||||
| Japan Subadvisory | |||||||||||||
| Assets under management, beginning of period | $ | 11,329 | $ | 9,720 | |||||||||
| Inflows | 988 | 305 | |||||||||||
| Outflows | (436) | (1,075) | |||||||||||
| Net inflows (outflows) | 552 | (770) | |||||||||||
| Market appreciation (depreciation) | (2,520) | 3,563 | |||||||||||
| Distributions | (985) | (1,184) | |||||||||||
| Total increase (decrease) | (2,953) | 1,609 | |||||||||||
| Assets under management, end of period | $ | 8,376 | $ | 11,329 | (26.1 | %) | |||||||
| Percentage of institutional assets under management | 25.9 | % | 26.5 | % | |||||||||
| Average assets under management | $ | 9,302 | $ | 10,335 | (10.0 | %) | |||||||
| Subadvisory Excluding Japan | |||||||||||||
| Assets under management, beginning of period | $ | 6,799 | $ | 5,907 | |||||||||
| Inflows | 1,255 | 956 | |||||||||||
| Outflows | (1,187) | (1,543) | |||||||||||
| Net inflows (outflows) | 68 | (587) | |||||||||||
| Market appreciation (depreciation) | (1,501) | 1,479 | |||||||||||
| Total increase (decrease) | (1,433) | 892 | |||||||||||
| Assets under management, end of period | $ | 5,366 | $ | 6,799 | (21.1 | %) | |||||||
| Percentage of institutional assets under management | 16.6 | % | 15.9 | % | |||||||||
| Average assets under management | $ | 5,848 | $ | 6,479 | (9.7 | %) | |||||||
| Total Institutional Accounts | |||||||||||||
| Assets under management, beginning of period | $ | 42,727 | $ | 33,255 | |||||||||
| Inflows | 5,915 | 6,152 | |||||||||||
| Outflows | (6,357) | (5,563) | |||||||||||
| Net inflows (outflows) | (442) | 589 | |||||||||||
| Market appreciation (depreciation) | (8,927) | 10,041 | |||||||||||
| Distributions | (985) | (1,184) | |||||||||||
| Transfers | — | 26 | |||||||||||
| Total increase (decrease) | (10,354) | 9,472 | |||||||||||
| Assets under management, end of period | $ | 32,373 | $ | 42,727 | (24.2 | %) | |||||||
| Average assets under management | $ | 36,383 | $ | 38,906 | (6.5 | %) | |||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||
| U.S. Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 34,696 | $ | 40,178 | $ | 43,045 | |||||||
| Inflows | 2,554 | 2,143 | 3,083 | ||||||||||
| Outflows | (2,618) | (3,082) | (1,799) | ||||||||||
| Net inflows (outflows) | (64) | (939) | 1,284 | ||||||||||
| Market appreciation (depreciation) | 1,366 | (4,129) | 6,672 | ||||||||||
| Distributions | (883) | (414) | (1,052) | ||||||||||
| Transfers | (7) | — | (34) | ||||||||||
| Total increase (decrease) | 412 | (5,482) | 6,870 | ||||||||||
| Assets under management, end of period | $ | 35,108 | $ | 34,696 | $ | 49,915 | 1.2 | % | (29.7 | %) | |||
| Percentage of total assets under management | 43.7 | % | 43.8 | % | 46.8 | % | |||||||
| Average assets under management | $ | 35,326 | $ | 40,910 | $ | 46,229 | (13.6 | %) | (23.6 | %) | |||
| Preferred Securities | |||||||||||||
| Assets under management, beginning of period | $ | 20,519 | $ | 21,449 | $ | 26,715 | |||||||
| Inflows | 1,485 | 1,899 | 2,086 | ||||||||||
| Outflows | (2,358) | (2,225) | (1,521) | ||||||||||
| Net inflows (outflows) | (873) | (326) | 565 | ||||||||||
| Market appreciation (depreciation) | 333 | (404) | 10 | ||||||||||
| Distributions | (219) | (200) | (337) | ||||||||||
| Transfers | 7 | — | 34 | ||||||||||
| Total increase (decrease) | (752) | (930) | 272 | ||||||||||
| Assets under management, end of period | $ | 19,767 | $ | 20,519 | $ | 26,987 | (3.7 | %) | (26.8 | %) | |||
| Percentage of total assets under management | 24.6 | % | 25.9 | % | 25.3 | % | |||||||
| Average assets under management | $ | 20,083 | $ | 21,936 | $ | 26,812 | (8.4 | %) | (25.1 | %) | |||
| Global/International Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 13,871 | $ | 15,709 | $ | 17,978 | |||||||
| Inflows | 904 | 527 | 562 | ||||||||||
| Outflows | (949) | (396) | (858) | ||||||||||
| Net inflows (outflows) | (45) | 131 | (296) | ||||||||||
| Market appreciation (depreciation) | 995 | (1,956) | 1,775 | ||||||||||
| Distributions | (39) | (13) | (77) | ||||||||||
| Total increase (decrease) | 911 | (1,838) | 1,402 | ||||||||||
| Assets under management, end of period | $ | 14,782 | $ | 13,871 | $ | 19,380 | 6.6 | % | (23.7 | %) | |||
| Percentage of total assets under management | 18.4 | % | 17.5 | % | 18.2 | % | |||||||
| Average assets under management | $ | 14,454 | $ | 15,938 | $ | 18,642 | (9.3 | %) | (22.5 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets Under Management | |||||||||||||
| By Investment Strategy - continued | |||||||||||||
| (in millions) | |||||||||||||
| Three Months Ended | % Change From | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||
| Global Listed Infrastructure | |||||||||||||
| Assets under management, beginning of period | $ | 8,030 | $ | 8,574 | $ | 8,138 | |||||||
| Inflows | 247 | 394 | 238 | ||||||||||
| Outflows | (309) | (151) | (154) | ||||||||||
| Net inflows (outflows) | (62) | 243 | 84 | ||||||||||
| Market appreciation (depreciation) | 696 | (742) | 607 | ||||||||||
| Distributions | (68) | (45) | (66) | ||||||||||
| Total increase (decrease) | 566 | (544) | 625 | ||||||||||
| Assets under management, end of period | $ | 8,596 | $ | 8,030 | $ | 8,763 | 7.0 | % | (1.9 | %) | |||
| Percentage of total assets under management | 10.7 | % | 10.1 | % | 8.2 | % | |||||||
| Average assets under management | $ | 8,469 | $ | 8,859 | $ | 8,479 | (4.4 | %) | (0.1 | %) | |||
| Other | |||||||||||||
| Assets under management, beginning of period | $ | 2,082 | $ | 1,952 | $ | 1,384 | |||||||
| Inflows | 215 | 441 | 236 | ||||||||||
| Outflows | (253) | (148) | (82) | ||||||||||
| Net inflows (outflows) | (38) | 293 | 154 | ||||||||||
| Market appreciation (depreciation) | 155 | (155) | 79 | ||||||||||
| Distributions | (27) | (8) | (33) | ||||||||||
| Total increase (decrease) | 90 | 130 | 200 | ||||||||||
| Assets under management, end of period | $ | 2,172 | $ | 2,082 | $ | 1,584 | 4.3 | % | 37.1 | % | |||
| Percentage of total assets under management | 2.7 | % | 2.6 | % | 1.5 | % | |||||||
| Average assets under management | $ | 2,179 | $ | 2,100 | $ | 1,468 | 3.8 | % | 48.4 | % | |||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 79,198 | $ | 87,862 | $ | 97,260 | |||||||
| Inflows | 5,405 | 5,404 | 6,205 | ||||||||||
| Outflows | (6,487) | (6,002) | (4,414) | ||||||||||
| Net inflows (outflows) | (1,082) | (598) | 1,791 | ||||||||||
| Market appreciation (depreciation) | 3,545 | (7,386) | 9,143 | ||||||||||
| Distributions | (1,236) | (680) | (1,565) | ||||||||||
| Total increase (decrease) | 1,227 | (8,664) | 9,369 | ||||||||||
| Assets under management, end of period | $ | 80,425 | $ | 79,198 | $ | 106,629 | 1.5 | % | (24.6 | %) | |||
| Average assets under management | $ | 80,511 | $ | 89,743 | $ | 101,630 | (10.3 | %) | (20.8 | %) | |||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management | |||||||||||||
| By Investment Strategy | |||||||||||||
| (in millions) | |||||||||||||
| Years Ended | |||||||||||||
| December 31, 2022 | December 31, 2021 | % Change | |||||||||||
| U.S. Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 49,915 | $ | 32,827 | |||||||||
| Inflows | 10,572 | 11,538 | |||||||||||
| Outflows | (10,869) | (6,499) | |||||||||||
| Net inflows (outflows) | (297) | 5,039 | |||||||||||
| Market appreciation (depreciation) | (12,097) | 14,417 | |||||||||||
| Distributions | (2,406) | (2,294) | |||||||||||
| Transfers | (7) | (74) | |||||||||||
| Total increase (decrease) | (14,807) | 17,088 | |||||||||||
| Assets under management, end of period | $ | 35,108 | $ | 49,915 | (29.7 | %) | |||||||
| Percentage of total assets under management | 43.7 | % | 46.8 | % | |||||||||
| Average assets under management | $ | 41,627 | $ | 41,315 | 0.8 | % | |||||||
| Preferred Securities | |||||||||||||
| Assets under management, beginning of period | $ | 26,987 | $ | 23,185 | |||||||||
| Inflows | 7,059 | 8,802 | |||||||||||
| Outflows | (10,212) | (5,053) | |||||||||||
| Net inflows (outflows) | (3,153) | 3,749 | |||||||||||
| Market appreciation (depreciation) | (3,240) | 964 | |||||||||||
| Distributions | (834) | (985) | |||||||||||
| Transfers | 7 | 74 | |||||||||||
| Total increase (decrease) | (7,220) | 3,802 | |||||||||||
| Assets under management, end of period | $ | 19,767 | $ | 26,987 | (26.8 | %) | |||||||
| Percentage of total assets under management | 24.6 | % | 25.3 | % | |||||||||
| Average assets under management | $ | 22,638 | $ | 25,262 | (10.4 | %) | |||||||
| Global/International Real Estate | |||||||||||||
| Assets under management, beginning of period | $ | 19,380 | $ | 15,214 | |||||||||
| Inflows | 3,848 | 3,263 | |||||||||||
| Outflows | (3,289) | (2,833) | |||||||||||
| Net inflows (outflows) | 559 | 430 | |||||||||||
| Market appreciation (depreciation) | (5,039) | 3,933 | |||||||||||
| Distributions | (118) | (197) | |||||||||||
| Total increase (decrease) | (4,598) | 4,166 | |||||||||||
| Assets under management, end of period | $ | 14,782 | $ | 19,380 | (23.7 | %) | |||||||
| Percentage of total assets under management | 18.4 | % | 18.2 | % | |||||||||
| Average assets under management | $ | 16,692 | $ | 17,688 | (5.6 | %) | |||||||
| Cohen & Steers, Inc. and Subsidiaries | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Assets Under Management | |||||||||||||
| By Investment Strategy - continued | |||||||||||||
| (in millions) | |||||||||||||
| Years Ended | |||||||||||||
| December 31, 2022 | December 31, 2021 | % Change | |||||||||||
| Global Listed Infrastructure | |||||||||||||
| Assets under management, beginning of period | $ | 8,763 | $ | 6,729 | |||||||||
| Inflows | 1,566 | 1,751 | |||||||||||
| Outflows | (1,112) | (765) | |||||||||||
| Net inflows (outflows) | 454 | 986 | |||||||||||
| Market appreciation (depreciation) | (405) | 1,256 | |||||||||||
| Distributions | (216) | (208) | |||||||||||
| Total increase (decrease) | (167) | 2,034 | |||||||||||
| Assets under management, end of period | $ | 8,596 | $ | 8,763 | (1.9 | %) | |||||||
| Percentage of total assets under management | 10.7 | % | 8.2 | % | |||||||||
| Average assets under management | $ | 8,700 | $ | 7,970 | 9.2 | % | |||||||
| Other | |||||||||||||
| Assets under management, beginning of period | $ | 1,584 | $ | 1,953 | |||||||||
| Inflows | 1,384 | 546 | |||||||||||
| Outflows | (588) | (1,297) | |||||||||||
| Net inflows (outflows) | 796 | (751) | |||||||||||
| Market appreciation (depreciation) | (150) | 440 | |||||||||||
| Distributions | (58) | (58) | |||||||||||
| Total increase (decrease) | 588 | (369) | |||||||||||
| Assets under management, end of period | $ | 2,172 | $ | 1,584 | 37.1 | % | |||||||
| Percentage of total assets under management | 2.7 | % | 1.5 | % | |||||||||
| Average assets under management | $ | 1,967 | $ | 1,979 | (0.6 | %) | |||||||
| Total | |||||||||||||
| Assets under management, beginning of period | $ | 106,629 | $ | 79,908 | |||||||||
| Inflows | 24,429 | 25,900 | |||||||||||
| Outflows | (26,070) | (16,447) | |||||||||||
| Net inflows (outflows) | (1,641) | 9,453 | |||||||||||
| Market appreciation (depreciation) | (20,931) | 21,010 | |||||||||||
| Distributions | (3,632) | (3,742) | |||||||||||
| Total increase (decrease) | (26,204) | 26,721 | |||||||||||
| Assets under management, end of period | $ | 80,425 | $ | 106,629 | (24.6 | %) | |||||||
| Average assets under management | $ | 91,624 | $ | 94,214 | (2.7 | %) |
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) | Years Ended | |||||||||
| September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||
| Net income attributable to common stockholders, U.S. GAAP | 32,498 | $ | 44,570 | $ | 64,482 | $ | 171,042 | $ | 211,396 | |
| Seed investments (1) | 1,635 | (1,438) | 4,317 | (5,870) | ||||||
| Accelerated vesting of restricted stock units | 2,556 | 1,557 | 10,260 | 7,197 | ||||||
| Lease expense - 280 Park Avenue (2) | — | — | 776 | — | ||||||
| Initial public offering costs (3) | — | — | 15,239 | — | ||||||
| Foreign currency exchange (gains) losses—net (4) | (3,931) | 62 | (4,741) | (475) | ||||||
| Tax adjustments (5) | 337 | (3,399) | (14,642) | (14,301) | ||||||
| Net income attributable to common stockholders, as adjusted | 38,730 | $ | 45,167 | $ | 61,264 | $ | 182,251 | $ | 197,947 | |
| Diluted weighted average shares outstanding | 49,317 | 49,429 | 49,297 | 49,090 | ||||||
| Diluted earnings per share, U.S. GAAP | 0.66 | $ | 0.90 | $ | 1.30 | $ | 3.47 | $ | 4.31 | |
| Seed investments | 0.04 | (0.03) | 0.09 | (0.12) | ||||||
| Accelerated vesting of restricted stock units | 0.05 | 0.04 | 0.21 | 0.15 | ||||||
| Lease expense - 280 Park Avenue | — | — | 0.02 | — | ||||||
| Initial public offering costs | — | — | 0.31 | — | ||||||
| Foreign currency exchange (gains) losses—net | (0.08) | — | * | (0.10) | (0.01) | |||||
| Tax adjustments | 0.01 | (0.07) | (0.30) | (0.30) | ||||||
| Diluted earnings per share, as adjusted | 0.79 | $ | 0.92 | $ | 1.24 | $ | 3.70 | $ | 4.03 | |
| _________________________* Amounts round to less than 0.01 per share.(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.(2)Represents one month of lease expense 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 lease expense as a result of the overlapping terms for both its current and future headquarters until its current headquarters lease expires in January 2024.(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) | Years Ended | |||||||||
| September 30, 2022 | December 31, <br>2021 | December 31, <br>2022 | December 31, <br>2021 | |||||||
| 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.(5)Tax adjustments are summarized in the following table: | ||||||||||
| (in thousands) | Years Ended | |||||||||
| September 30, 2022 | December 31, <br>2021 | December 31, <br>2022 | December 31, <br>2021 | |||||||
| Exclusion of tax effects associated with items noted above | 443 | $ | 301 | $ | (952) | $ | (3,522) | $ | (2,262) | |
| Exclusion of discrete tax items | 36 | (2,447) | (11,120) | (12,039) | ||||||
| Total tax adjustments | (858) | $ | 337 | $ | (3,399) | $ | (14,642) | $ | (14,301) |
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 | Years Ended | |||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||
| Revenue, U.S. GAAP | $ | 125,335 | $ | 139,951 | $ | 159,629 | $ | 566,906 | $ | 583,832 | |||||
| Seed investments (1) | 160 | 215 | 108 | 790 | 411 | ||||||||||
| Revenue, as adjusted | $ | 125,495 | $ | 140,166 | $ | 159,737 | $ | 567,696 | $ | 584,243 | |||||
| Expenses, U.S. GAAP | $ | 78,563 | $ | 82,770 | $ | 79,123 | $ | 350,968 | $ | 323,460 | |||||
| Seed investments (1) | (240) | (104) | (446) | (838) | (819) | ||||||||||
| Accelerated vesting of restricted stock units | (2,909) | (2,556) | (1,557) | (10,260) | (7,197) | ||||||||||
| Lease expense - 280 Park Avenue (2) | (776) | — | — | (776) | — | ||||||||||
| Initial public offering costs (3) | — | — | — | (15,239) | — | ||||||||||
| Expenses, as adjusted | $ | 74,638 | $ | 80,110 | $ | 77,120 | $ | 323,855 | $ | 315,444 | |||||
| Operating income, U.S. GAAP | $ | 46,772 | $ | 57,181 | $ | 80,506 | $ | 215,938 | $ | 260,372 | |||||
| Seed investments (1) | 400 | 319 | 554 | 1,628 | 1,230 | ||||||||||
| Accelerated vesting of restricted stock units | 2,909 | 2,556 | 1,557 | 10,260 | 7,197 | ||||||||||
| Lease expense - 280 Park Avenue (2) | 776 | — | — | 776 | — | ||||||||||
| Initial public offering costs (3) | — | — | — | 15,239 | — | ||||||||||
| Operating income, as adjusted | $ | 50,857 | $ | 60,056 | $ | 82,617 | $ | 243,841 | $ | 268,799 | |||||
| Operating margin, U.S. GAAP | 37.3 | % | 40.9 | % | 50.4 | % | 38.1 | % | 44.6 | % | |||||
| Operating margin, as adjusted | 40.5 | % | 42.8 | % | 51.7 | % | 43.0 | % | 46.0 | % | |||||
| __________________________<br><br><br><br>(1)Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles.<br><br>(2)Represents one month of lease expense 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 lease 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 ccosts associated with the initial public offering of RLTY. Costs are summarized in the following table: | |||||||||||||||
| (in thousands) | Three Months Ended | Years Ended | |||||||||||||
| December 31, <br>2022 | September 30, 2022 | December 31, <br>2021 | December 31, <br>2022 | December 31, <br>2021 | |||||||||||
| 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 | Years Ended | |||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||
| Non-operating income (loss), U.S. GAAP | $ | 2,825 | $ | (1,974) | $ | 6,837 | $ | (19,041) | $ | 21,572 | |||||
| Seed investments (1) | (5,323) | 6,272 | (7,441) | 24,245 | (21,858) | ||||||||||
| Foreign currency exchange (gain) loss—net (2) | 3,944 | (3,931) | 62 | (4,741) | (475) | ||||||||||
| Non-operating income (loss), as adjusted | $ | 1,446 | $ | 367 | $ | (542) | $ | 463 | $ | (761) | |||||
| _________________________<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.<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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