Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q1 2024 Earnings Presentation
21 slides from Cohen & Steers's earnings presentation, Apr 18, 2024
Slide 1: Cohen & Steers: Q1 2024 Earnings Presentation
Cohen & Steers: Q1 2024 Earnings Presentation
Slide 2: Summary of first quarter 2024 results
Summary of first quarter 2024 results • March 31, 2024 AUM was $81.2 billion versus $83.1 billion at December 31, 2023 Assets under • Average AUM was $80.2 billion for Q1 2024 versus $77.0 billion for Q4 2023 management • Market appreciation of $679 million for Q1 2024 versus market appreciation of
Slide 3: Financial results, as adjusted
Financial results, as adjusted $ in millions, except earnings per share and percentages Revenue $126.3 $120.3 $123.6 $119.0 $122.9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Expenses $78.2 $76.5 $79.7 $77.7 $79.3 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Diluted earnings $0.76 $0.70 $0.70 $0.67 $0.70 per
Slide 4: Revenue, as adjusted
Revenue, as adjusted $ in millions Open-end Institutional Closed-end Distribution and Other fund fees fees fund fees service fees $126.3 $120.3 $123.6 $119.0 $122.9 $0.5 $0.5 $0.5 $0.5 $0.6 $7.6 $7.0 $6.8 $7.0 $6.6 $24.9 $24.1 $24.2 $23.9 $23.4 $30.7 $31.8 $30.4 $30.2 $30.9 $62.7 $58.7 $60.0 $57.5 $
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee compensation and benefits Distribution and service fees General and administrative Depreciation and amortization $78.2 $76.5 $79.7 $77.7 $79.3 $1.0 $0.8 $2.3 $0.8 $1.5 $14.4 $12.7 $13.8 $13.5 $14.3 $13.7 $14.2 $13.3 $12.9 $13.4 $48.6 $48.8 $52.5 $49.0 $49
Slide 6: Assets under management
Assets under management $ in billions Ending AUM Avg. AUM $83.2 $80.2 $77.0 $79.4 $80.0 $79.9 $80.4 $83.1 $81.2 $75.2 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 6
Slide 7: Assets under management
Assets under management Across vehicle, strategy, and client domicile Subadvisory ex. Other 2.9% APAC ex. Japan 5.3% Japan 7.0% Global listed Japan subadvisory EMEA 5.5% infrastructure 10.3% 10.5% Japan Global/international real 11.9% Closed-end funds estate 16.5% 13.7% Advisory Preferred securities
Slide 8: Total firm net flows
Total firm net flows $ in billions Inflows Outflows Net flows Organic growth/ (2.5%) (2.6%) (0.2%) (4.9%) (9.5%) (decay) $4.2 $3.9 $4.2 $3.5 $3.3 ($0.0) ($0.5) ($0.5) ($0.9) ($2.0) ($3.4) ($4.0) ($4.7) ($4.9) ($6.2) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Totals may not foot due to rounding. 8
Slide 9: Net flows by investment vehicle
Net flows by investment vehicle $ in billions Inflows Outflows Net flows Open-end funds Organic (3.3%) (5.6%) (3.9%) (5.9%) 6.2% growth/ (decay) $3.5 $3.3 $3.3 $2.8 $2.4 $0.6 ($0.3) ($0.5) ($0.4) ($0.5) ($3.3) ($2.8) ($3.8) ($2.7) ($3.8) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Advisory Organic growt
Slide 10: Net flows by investment vehicle
Net flows by investment vehicle $ in billions Inflows Outflows Net flows Subadvisory ex. Japan Organic growth/ (3.5%) 1.0% 8.9% (17.4%) (2.5%) (decay) $0.3 $0.2 $0.1 $0.1 $0.2 $0.1 ($0.0) $0.0 ($0.0) ($0.2) ($0.2) ($0.1) ($0.2) ($0.2) ($0.5) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Japan subadvisory
Slide 11: Net flows by investment strategy
Net flows by investment strategy $ in billions Inflows Outflows Net flows U.S. real estate Organic 5.0% 1.3% 1.9% (2.0%) 3.8% growth/ (decay) $2.0 $1.9 $2.1 $1.6 $1.5 $0.4 $0.1 $0.2 $0.4 ($0.2) ($1.6) ($1.5) ($1.3) ($1.7) ($2.1) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Preferred securities Organic (1
Slide 12: Net flows by investment strategy
Net flows by investment strategy $ in billions Inflows Outflows Net flows Global/international real estate Organic growth/ (4.0%) (2.5%) 4.6% (10.8%) (56.2%) (decay) $0.3 $0.4 $0.5 $0.4 $0.6 ($0.1) $0.2 ($0.1) ($0.4) ($0.4) ($0.4) ($0.5) ($0.7) ($2.2) ($2.8) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 G
Slide 13: Distributions by investment vehicle
Distributions by investment vehicle $ in billions Open-end funds Japan subadvisory ($0.3) ($0.3) ($0.3) ($0.4) ($0.3) ($0.2) ($0.2) ($0.2) ($0.3) ($0.3) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Closed-end funds Total ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.6) ($
Slide 14: Investment performance
Investment performance % of U.S. open-end fund AUM rated 4 or 5 stars by % of total AUM in outperforming strategies(1) Morningstar(2) 1-Year 85% 99% 66% 3/31/2023 12/31/2023 3/31/2024 3-Year 98% 96% 96% 3/31/2023 12/31/2023 3/31/2024 90% 94% 93% 5-Year 97% 97% 97% 3/31/2023 12/31/2023 3/31/2024 10-Y
Slide 15: Cash, cash equivalents, liquid seed investments and U.S. Treasurys
Cash, cash equivalents, liquid seed investments and U.S. Treasurys $ in millions Cash & cash equivalents Treasurys Liquid seed investments $247.6 $257.9 $279.9 $318.8 $233.1 $71.4 $69.1 $69.5 $59.9 $68.4 $74.1 $9.9 $79.4 $29.7 $59.5 $178.5 $187.4 $149.5 $131.4 $99.5 March 31, 2023 June 30, 2023 Sept
Slide 16: Reconciliations of U.S. GAAP to as adjusted financial results
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 compan
Slide 17: Reconciliation of U.S. GAAP to as adjusted results
Reconciliation of U.S. GAAP to as adjusted results Net income attributable to common stockholders and diluted earnings per share $ in thousands, except per share data Three Months Ended March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 Net income attributable to common
Slide 18: Reconciliation of U.S. GAAP to as adjusted results
Reconciliation of U.S. GAAP to as adjusted results Revenue, expenses, operating income and operating margin $ in thousands, except percentages Three Months Ended March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 Revenue, U.S. GAAP $126,082 $120,630 $123,737 $119,188 $1
Slide 19: Reconciliation of U.S. GAAP to as adjusted results
Reconciliation of U.S. GAAP to as adjusted results Non-operating income (loss) $ in thousands Three Months Ended March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 Non-operating income (loss), U.S. GAAP $1,632 $2,650 ($5,159) $16,651 $5,037 Seed investments (1) (466) (1
Slide 20: Reconciliation of U.S. GAAP to as adjusted results
Reconciliation of U.S. GAAP to as adjusted results Summary of Operating Items Adjustments Accelerated vesting of Lease transition Seed restricted and other costs - As U.S. GAAP investments(1) stock units 280 Park Avenue (2) adjusted Q1 2024 Investment advisory and administration fees $115,345 $221 $
Slide 21: Legal disclosures
Legal disclosures This presentation 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 management's cur