Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q4 2023 Earnings Presentation
21 slides from Cohen & Steers's earnings presentation, Jan 25, 2024
Slide 1: Cohen & Steers: Q4 2023 and Full Year 2023 Earnings Presentation
Cohen & Steers: Q4 2023 and Full Year 2023 Earnings Presentation
Slide 2: Summary of fourth quarter and full year 2023 results
Summary of fourth quarter and full year 2023 results Fourth quarter 2023 Full year 2023 • December 31, 2023 AUM was $83.1 billion • December 31, 2023 AUM was $83.1 billion Assets under versus $75.2 billion at September 30, 2023 versus $80.4 billion at December 31, 2022 management • Average AUM was $
Slide 3: Financial results, as adjusted
Financial results, as adjusted $ in millions, except earnings per share and percentages Revenue $125.5 $126.3 $120.3 $123.6 $119.0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Expenses $74.6 $78.2 $76.5 $79.7 $77.7 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Diluted earnings $0.79 $0.76 $0.70 $0.70 $0.67 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 $125.5 $126.3 $120.3 $123.6 $119.0 $0.6 $0.5 $0.5 $0.5 $0.5 $7.7 $7.6 $7.0 $7.0 $6.6 $25.0 $24.9 $24.1 $23.9 $23.4 $30.4 $30.7 $31.8 $30.2 $30.9 $61.8 $62.7 $58.7 $60.0 $
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee compensation and benefits Distribution and service fees General and administrative Depreciation and amortization $74.6 $78.2 $76.5 $79.7 $77.7 $1.0 $0.8 $0.8 $1.5 $1.1 $14.4 $12.7 $13.5 $13.5 $14.3 $13.7 $14.2 $13.3 $12.9 $14.3 $48.6 $48.8 $52.5 $49.0 $45
Slide 6: Assets under management
Assets under management $ in billions Ending AUM Avg. AUM $80.5 $83.2 $79.4 $80.0 $77.0 $80.4 $79.9 $80.4 $83.1 $75.2 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 6
Slide 7: Assets under management
Assets under management Across vehicle, strategy, and client domicile Subadvisory ex. Other 2.7% APAC ex. Japan 5.1% Japan 6.9% Global listed Japan subadvisory infrastructure 10.1% EMEA 7.0% 10.9% Japan Closed-end funds Global/international real 12.2% 13.3% estate 19.0% Advisory Preferred securities
Slide 8: Total firm net flows
Total firm net flows $ in billions Inflows Outflows Net flows Organic growth/ (5.4%) (2.5%) (2.6%) (0.2%) (4.9%) (decay) $5.4 $4.2 $3.5 $3.9 $3.3 ($0.0) ($0.5) ($0.5) ($1.1) ($0.9) ($4.0) ($3.4) ($4.7) ($4.9) ($6.5) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 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 (10.7%) (3.3%) (5.6%) (3.9%) (5.9%) growth/ (decay) $4.2 $3.5 $3.3 $2.8 $2.4 ($0.3) ($0.5) ($0.4) ($0.5) ($1.0) ($3.8) ($3.3) ($2.8) ($3.8) ($5.2) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Advisory Organic
Slide 10: Net flows by investment vehicle
Net flows by investment vehicle $ in billions Inflows Outflows Net flows Subadvisory ex. Japan Organic growth/ 2.2% (3.5%) 1.0% 8.9% (17.4%) (decay) $0.3 $0.4 $0.1 $0.2 $0.1 $0.1 $0.0 ($0.0) $0.0 ($0.4) ($0.2) ($0.2) ($0.2) ($0.1) ($0.5) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Japan subadvisory Orga
Slide 11: Net flows by investment strategy
Net flows by investment strategy $ in billions Inflows Outflows Net flows U.S. real estate Organic (0.7%) 5.0% 1.3% 1.9% (2.0%) growth/ (decay) $2.6 $2.0 $1.6 $1.5 $1.9 $0.4 $0.1 $0.2 ($0.1) ($0.2) ($1.6) ($1.5) ($1.3) ($2.6) ($2.1) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Preferred securities Organi
Slide 12: Net flows by investment strategy
Net flows by investment strategy $ in billions Inflows Outflows Net flows Global/international real estate Organic growth/ (1.3%) (4.0%) (2.5%) 4.6% (10.8%) (decay) $0.4 $0.5 $0.4 $0.9 $0.3 $0.2 ($0.0) ($0.1) ($0.1) ($0.4) ($0.4) ($0.4) ($0.5) ($0.9) ($0.7) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Gl
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) ($0.2) ($0.2) ($0.2) ($0.3) ($0.3) ($0.8) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Closed-end funds Total ($0.2) ($0.2) ($0.2) ($0.2) ($0.2) ($0.7) ($
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 74% 83% 85% 12/31/2022 9/30/2023 12/31/2023 3-Year 99% 95% 96% 12/31/2022 9/30/2023 12/31/2023 98% 94% 88% 5-Year 99% 97% 97% 12/31/2022 9/30/2023 12/31/2023 1
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 $316.1 $247.6 $257.9 $279.9 $318.8 $69.0 $71.4 $69.1 $69.5 $59.9 $68.4 $9.9 $79.4 $29.7 $247.1 $178.5 $187.4 $149.5 $131.4 December 31, 2022 March 31, 2023 June
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 Year Ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, 2022 2023 2023 202
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 Year Ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, 2022 2023 2023 2023 2023 2022 2023 Revenue
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 Year Ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, 2022 2023 2023 2023 2023 2022 2023 Non-operating income (loss), U.S. GAAP $2,825 $1,632 $2,
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 Seed restricted Closed-end fund Lease transition As U.S. GAAP investments(1) stock units offering costs (2) and other costs (3) adjusted Q4 2023 Investment advisory and administration fee
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