Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q4 2022 Earnings Presentation
20 slides from Cohen & Steers's earnings presentation, Jan 26, 2023
Slide 1: Cohen & Steers: Q4 2022 and Full Year 2022 Earnings Presentation
Cohen & Steers: Q4 2022 and Full Year 2022 Earnings Presentation
Slide 2: Summary of fourth quarter and full year 2022 results
Summary of fourth quarter and full year 2022 results Fourth quarter 2022 Full year 2022 • December 31, 2022 AUM was $80.4 billion • December 31, 2022 AUM was $80.4 billion Assets under versus $79.2 billion at September 30, 2022 versus $106.6 billion at December 31, 2021 management • Average AUM was
Slide 3: Financial results, as adjusted
Financial results, as adjusted $ in millions, except earnings per share and percentages Revenue $159.7 $154.3 $147.7 $140.2 $125.5 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 $77.1 $85.4 $83.7 $80.1 Expenses $74.6 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Diluted earnings $1.24 $1.04 per share $0.96 $0.92
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 $159.7 $154.3 $147.7 $140.2 $125.5 $0.7 $0.7 $10.3 $0.8 $9.9 $0.5 $9.0 $28.1 $8.6 $0.6 $27.3 $27.4 $7.7 $27.0 $25.0 $39.9 $36.7 $34.4 $32.5 $30.4 $80.7 $79.8 $76.0 $71.6
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee compensation and benefits Distribution and service fees General and administrative Depreciation and amortization $77.1 $85.4 $83.7 $80.1 $74.6 $1.0 $1.1 $1.1 $0.9 $12.6 $1.1 $13.0 $13.4 $13.8 $13.5 $19.7 $18.2 $16.4 $20.6 $14.3 $52.1 $51.4 $49.1 $41.8 $45
Slide 6: Assets under management
Assets under management $ in billions Ending AUM Avg. AUM $101.6 $101.2 $95.1 $89.7 $80.5 $106.6 $102.1 $87.9 $79.2 $80.4 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 6
Slide 7: Assets under management
Assets under management Across vehicle, strategy, and client domicile Subadvisory ex. Other 2.7% APAC ex. Japan 4.4% Japan 6.7% Global listed Japan subadvisory EMEA 6.4% infrastructure 10.7% 10.4% Japan Closed-end funds Global/international real 11.7% 13.9% estate 18.4% Advisory Preferred securities
Slide 8: Total firm net flows
Total firm net flows $ in billions Inflows Outflows Net flows Organic growth/ 7.3% 2.9% (2.8%) (2.7%) (5.4%) (decay) $6.2 $7.5 $6.1 $5.4 $5.4 $1.8 $0.8 ($0.7) ($0.6) ($1.1) ($4.4) ($6.7) ($6.8) ($6.0) ($6.5) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 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 22.0% 1.7% (2.0%) (7.0%) (10.7%) growth/ (decay) $5.6 $4.9 $4.9 $2.5 $4.0 $4.2 $0.2 ($0.2) ($0.7) ($1.0) ($3.0) ($4.7) ($5.1) ($4.8) ($5.2) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Advisory Organic growth/
Slide 10: Net flows by investment vehicle
Net flows by investment vehicle $ in billions Inflows Outflows Net flows Subadvisory ex. Japan Organic growth/ (3.6%) (4.8%) (5.6%) 15.4% 2.2% (decay) $0.4 $0.4 $0.2 $0.3 $0.2 $0.2 $0.0 ($0.1) ($0.1) ($0.1) ($0.2) ($0.4) ($0.2) ($0.3) ($0.3) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 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 11.8% 4.5% 1.3% (9.3%) (0.7%) growth/ (decay) $3.1 $3.3 $2.6 $2.1 $2.6 $1.3 $0.6 $0.1 ($0.1) ($1.8) ($0.9) ($2.7) ($2.4) ($3.1) ($2.6) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Preferred securities Organ
Slide 12: Net flows by investment strategy
Net flows by investment strategy $ in billions Inflows Outflows Net flows Global/international real estate Organic growth/ (6.5%) 16.2% (6.3%) 3.3% (1.3%) (decay) $1.6 $0.9 $0.9 $0.6 $0.8 $0.5 $0.1 ($0.0) ($0.3) ($0.8) ($0.3) ($0.4) ($0.9) ($0.9) ($1.2) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Global
Slide 13: Distributions by investment vehicle
Distributions by investment vehicle $ in billions Open-end funds Japan subadvisory ($0.3) ($0.3) ($0.3) ($0.3) ($0.2) ($0.2) ($0.2) ($0.6) ($0.8) ($1.1) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Closed-end funds Total ($0.2) ($0.1) ($0.2) ($0.2) ($0.7) ($0.2) ($
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 99% 81% 74% 12/31/2021 9/30/2022 12/31/2022 3-Year 100% 100% 99% 12/31/2021 9/30/2022 12/31/2022 97% 98% 86% 5-Year 100% 100% 99% 12/31/2021 9/30/2022 12/31/20
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 $248.2 $180.7 $227.7 $269.9 $316.1 $68.3 $61.0 $62.7 $62.6 $49.9 $64.2 $39.9 $247.8 $29.9 $185.5 $159.0 $125.1 $86.6 December 31, 2021 March 31, 2022 June 30, 20
Slide 16: 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 Year Ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, 2021 2022 2022 202
Slide 17: 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 Year Ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, 2021 2022 2022 2022 2022 2021 2022 Revenue
Slide 18: 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 Year Ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, 2021 2022 2022 2022 2022 2021 2022 Non-operating income (loss), U.S. GAAP $6,837 $5,110 ($2
Slide 19: 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 Closed-end Seed restricted Initial public Lease Expense – As U.S. GAAP investments(1) stock units offering costs(2) 280 Park Avenue (3) adjusted Q4 2022 Investment advisory and administra
Slide 20: 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