0001284812-18-000165.txt : 20181017 0001284812-18-000165.hdr.sgml : 20181017 20181017162436 ACCESSION NUMBER: 0001284812-18-000165 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20181017 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20181017 DATE AS OF CHANGE: 20181017 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COHEN & STEERS INC CENTRAL INDEX KEY: 0001284812 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 141904657 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32236 FILM NUMBER: 181126599 BUSINESS ADDRESS: STREET 1: 280 PARK AVENUE 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 212 832 3232 MAIL ADDRESS: STREET 1: 280 PARK AVENUE STREET 2: 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 8-K 1 cns-8kx93018.htm FORM 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): October 17, 2018
_____________________
Cohen & Steers, Inc.
(Exact Name of Registrant as Specified in Charter)
_____________________
Delaware
001-32236
14-1904657
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)

280 Park Avenue, New York, New York
10017
(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code:  (212) 832-3232

_________________________________________
(Former Name or Former Address, if Changed Since Last Report)


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  o 
 
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 October 17, 2018, Cohen & Steers, Inc. (the Company) reported, among other things, the Company’s financial results for the quarter ended September 30, 2018. Copies of the press release announcing the availability of the Company's financial 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







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.
(Registrant)


Date: October 17, 2018
  By:
/s/ Matthew S. Stadler
 
 
Name: Matthew S. Stadler
Title: Executive Vice President and Chief Financial Officer




EX-99.1 2 cns-earningsreleaseex93018.htm CNS EARNINGS RELEASE 09.30.18 Exhibit


        cnslogo93018.jpg


Contact:
Matthew S. Stadler
Executive Vice President
Chief Financial Officer
Cohen & Steers, Inc.
Tel (212) 446-9168


COHEN & STEERS REPORTS RESULTS FOR THIRD QUARTER 2018

Diluted EPS of $0.65; $0.64, as adjusted
Operating margin of 39.9%; 40.2%, as adjusted
Ending AUM of $60.1 billion; average AUM of $60.4 billion
Net outflows of $76 million

NEW YORK, NY, October 17, 2018—Cohen & Steers, Inc. (NYSE: CNS) today reported its operating results for the quarter ended September 30, 2018.
Financial Highlights (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
(in thousands, except percentages and per share data)
 Three Months Ended
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
U.S. GAAP
 
 
 
 
 
 
Revenue (1)
$
98,331

 
$
94,410

 
$
96,787

 
Expenses (1)
$
59,108

 
$
58,123

 
$
55,814

 
Operating income (loss)
$
39,223

 
$
36,287

 
$
40,973

 
Non-operating income (loss)
$
1,047

 
$
(778
)
 
$
2,327

 
Net income attributable to common stockholders (2)
$
30,790

 
$
29,959

 
$
25,082

 
Diluted earnings per share
$
0.65

 
$
0.63

 
$
0.53

 
Operating margin
39.9
%
 
38.4
%
 
42.3
%
 
 
 
 
 
 
 
 
As Adjusted (3)
 
 
 
 
 
 
Net income attributable to common stockholders (2)
$
30,272

 
$
27,865

 
$
25,651

 
Diluted earnings per share
$
0.64

 
$
0.59

 
$
0.55

 
Operating margin
40.2
%
 
38.7
%
 
41.8
%
 
_________________________

(1)    The presentation for the third quarter of 2017 has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018.
(2)    Net income for the second and third quarters of 2018 reflected the lower U.S. federal statutory tax rate of 21% due to the Tax Cuts and Jobs Act.
(3)    The “As Adjusted” amounts represent non-GAAP financial measures. Refer to pages 18-19 for reconciliations to the most directly comparable U.S. GAAP financial measures.
 


1




U.S. GAAP
This section discusses the financial results of the Company as presented in accordance with U.S. GAAP.
Revenue
Revenue for the third quarter of 2018 was $98.3 million, an increase of 4.2% from $94.4 million for the second quarter of 2018. Higher average assets under management and one more day in the quarter resulted in the following changes in investment advisory and administration fees:
Institutional account revenue increased $1.1 million to $25.9 million;
Open-end fund revenue increased $1.9 million to $42.4 million; and
Closed-end fund revenue increased $728,000 to $19.9 million.
Expenses
Expenses for the third quarter of 2018 were $59.1 million, an increase of 1.7% from $58.1 million for the second quarter of 2018. The change was primarily due to:
Higher employee compensation and benefits of $620,000, primarily due to salaries and incentive compensation attributable to increased headcount;
Higher distribution and service fees expense of $770,000, primarily due to higher average assets under management in U.S. open-end funds and incremental revenue sharing and sub-transfer agent fees on certain assets by one of the Company’s intermediaries; and
Lower general and administrative expenses of $338,000, primarily due to fewer sponsored and hosted conferences.
Operating Margin
Operating margin was 39.9% for the third quarter of 2018, compared with 38.4% for the second quarter of 2018.
Non-operating Income (Loss)
Non-operating income for the third quarter of 2018 was $1.0 million, compared with a non-operating loss of $778,000 for the second quarter of 2018 and is comprised of the following:
Interest and dividend income, which included $1.6 million and $2.0 million of interest and dividend income from seed investments and $1.1 million and $836,000 of interest on corporate cash for the third quarter of 2018 and second quarter of 2018, respectively;
Gain (loss) from investments, which included net realized and unrealized gains of $413,000 for the third quarter of 2018, compared with net realized and unrealized losses of $603,000 for the second quarter of 2018;  
Foreign currency gains (losses), which included net losses of $2.4 million and $4.0 million attributable to consolidated seed investments and net gains of $226,000 and $955,000 attributable to foreign currency related activities for the third quarter of 2018 and second quarter of 2018, respectively; and 
Net loss attributable to redeemable noncontrolling interest of $1.1 million for the third quarter of 2018, compared with $4.4 million for the second quarter of 2018. Net (income) loss attributable to redeemable noncontrolling interest represents third-party interests in consolidated funds.

2




Income Taxes
The effective tax rate for the third quarter of 2018 was 25.50%, compared with 24.91% for the second quarter of 2018. The effective tax rate for the third quarter of 2018 differed from the U.S. federal statutory rate of 21% primarily due to state and local taxes. The effective tax rate for the second quarter of 2018 differed from the U.S. federal statutory rate of 21% primarily due to state and local taxes, partially offset by a benefit related to an adjustment of the Company's transition tax liability in connection with the Tax Cuts and Jobs Act.
As Adjusted
The term “As Adjusted” is used to identify non-GAAP financial information in the discussion below. Refer to pages 18-19 for reconciliations to the most directly comparable U.S. GAAP financial measures.
Revenue
Revenue, as adjusted, for the third quarter of 2018 was $98.2 million, compared with $94.2 million for the second quarter of 2018.
Revenue, as adjusted, excluded investment advisory and administration fees attributable to the consolidation of certain of the Company's seed investments for all periods presented.
Expenses
Expenses, as adjusted, for the third quarter of 2018 were $58.7 million, compared with $57.8 million for the second quarter of 2018.
Expenses, as adjusted, excluded general and administrative expenses attributable to the consolidation of certain of the Company's seed investments for both the second and third quarters of 2018.
Operating Margin
Operating margin, as adjusted, for the third quarter of 2018 was 40.2%, compared with 38.7% for the second quarter of 2018.
Non-operating Income (Loss)
Non-operating income, as adjusted, for the third quarter of 2018 was $1.1 million, compared with $837,000 for the second quarter of 2018.
Non-operating income (loss), as adjusted, excluded results from the Company's seed investments as well as net foreign currency exchange gains associated with U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries for both the second and third quarters of 2018.





3




Income Taxes
The effective tax rate, as adjusted, was 25.25% for both the second and third quarters of 2018.
The effective tax rate, as adjusted, for the third quarter of 2018 excluded the income tax effects related to the non-GAAP adjustments discussed above. The effective tax rate, as adjusted, for the second quarter of 2018 excluded amounts attributable to an adjustment of the Company's transition tax liability in connection with the Tax Cuts and Jobs Act, the income tax effects related to the non-GAAP adjustments discussed above as well as the delivery of restricted stock units.
Assets Under Management Highlights (Unaudited)
 
 
 
 
 
 
(in millions)
As of
 
 
 
By Investment Vehicle
September 30, 2018
 
June 30, 2018
 
% Change
 
    Institutional accounts
$
27,723

 
$
28,316

 
(2.1
%)
 
    Open-end funds
23,277

 
22,827

 
2.0
%
 
    Closed-end funds
9,084

 
9,061

 
0.3
%
 
Total
$
60,084

 
$
60,204

 
(0.2
%)
 
 
 
 
 
 
 
 
By Investment Strategy
 
 
 
 
 
 
    U.S. real estate
$
25,592

 
$
25,837

 
(0.9
%)
 
    Preferred securities
13,147

 
12,932

 
1.7
%
 
    Global/international real estate
11,614

 
11,674

 
(0.5
%)
 
    Global listed infrastructure
6,982

 
6,909

 
1.1
%
 
    Other
2,749

 
2,852

 
(3.6
%)
 
Total
$
60,084

 
$
60,204

 
(0.2
%)
 
 
 
 
 
 
 
 
Assets under management at September 30, 2018 were $60.1 billion, a decrease of $120 million from $60.2 billion at June 30, 2018. The decrease was driven by net outflows of $76 million and distributions of $802 million, partially offset by market appreciation of $758 million.
Institutional Accounts
Assets under management in institutional accounts at September 30, 2018 were $27.7 billion, a decrease of 2.1% from $28.3 billion at June 30, 2018. The change was primarily due to the following:
Japan subadvisory:
Net outflows of $314 million, including $229 million from U.S. real estate and $43 million from global/international real estate;
Market appreciation of $146 million, including $131 million from U.S. real estate; and
Distributions of $433 million, including $406 million from U.S. real estate.
Subadvisory excluding Japan:
Net outflows of $335 million, including $167 million from commodities (included in "Other" in the table above), $50 million from large cap value (included in "Other" in the table above) and $38 million from global/international real estate; and
Market appreciation of $65 million, including $36 million from large cap value (included in "Other" in the table above) and $21 million from global/international real estate.


4




Advisory:    
Net inflows of $148 million, including $136 million into preferred securities and $84 million into real assets multi-strategy (included in "Other" in the table above), partially offset by net outflows of $69 million from global/international real estate and $27 million from U.S. real estate; and
Market appreciation of $130 million, including $49 million from U.S. real estate, $31 million from global/international real estate and $24 million from global listed infrastructure.
Open-end Funds
Assets under management in open-end funds at September 30, 2018 were $23.3 billion, an increase of 2.0% from $22.8 billion at June 30, 2018. The change was primarily due to the following:
Net inflows of $425 million, including $274 million into U.S. real estate, $100 million into preferred securities and $50 million into global/international real estate;
Market appreciation of $266 million, including $149 million from U.S. real estate and $102 million from preferred securities; and
Distributions of $241 million, including $128 million from U.S. real estate and $111 million from preferred securities.
Closed-end Funds
Assets under management in closed-end funds were $9.1 billion at September 30, 2018 and June 30, 2018 as market appreciation was offset by distributions.


5




Investment Performance as of September 30, 2018
investmentperformance93018.jpg
_________________________
(1)
Past performance is no guarantee of future results. Outperformance is determined by annualized investment performance of all accounts in each investment strategy measured gross of fees and net of withholding taxes in comparison to the performance of each account's reference benchmark 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)
© 2018 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 September 30, 2018. 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 September 30, 2018, cash, cash equivalents, U.S. treasuries and seed investments were $291 million. As of September 30, 2018, stockholders’ equity was $324 million and the Company had no debt.
Conference Call Information
Cohen & Steers will host a conference call tomorrow, October 18, 2018 at 9:00 a.m. (ET) to discuss the Company's third quarter results. Investors and analysts can access the live conference call by dialing 800-954-0695 (U.S.) or +1-212-231-2930 (international); passcode: 21897047. Participants should plan to register at least 10 minutes before the conference call begins. The presentation that will be reviewed as part of the conference call is available on the Company's website at www.cohenandsteers.com under “Company—Investor Relations—Press Releases.”


6




A replay of the call will be available for two weeks starting at approximately 11:00 a.m. (ET) on October 18, 2018 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21897047. 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—Overview.” The webcast will be archived on the website for one month.
About Cohen & Steers
Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle.
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 management'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, 2017 (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.
# # # #

7




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Operations (Unaudited)
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended (1)
 
 % Change From
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2017
 
Revenue
 
 
 
 
 
 
 
 
 
 
 Investment advisory and administration fees
$
88,150

 
$
84,420

 
$
86,252

 
 
 
 
 
 Distribution and service fees
7,451

 
7,257

 
7,808

 
 
 
 
 
 Portfolio consulting and other
2,730

 
2,733

 
2,727

 
 
 
 
 
 Total revenue
98,331

 
94,410

 
96,787

 
4.2
%
 
1.6
%
 
Expenses
 
 
 
 
 
 
 
 
 
 
 Employee compensation and benefits
33,126

 
32,506

 
31,886

 
 
 
 
 
 Distribution and service fees
13,210

 
12,440

 
12,968

 
 
 
 
 
 General and administrative
11,634

 
11,972

 
9,849

 
 
 
 
 
 Depreciation and amortization
1,138

 
1,205

 
1,111

 
 
 
 
 
 Total expenses
59,108

 
58,123

 
55,814

 
1.7
%
 
5.9
%
 
Operating income (loss)
39,223

 
36,287

 
40,973

 
8.1
%
 
(4.3
%)
 
Non-operating income (loss)
 
 
 
 
 
 
 
 
 
 
 Interest and dividend income—net
2,747

 
2,886

 
1,425

 
 
 
 
 
 Gain (loss) from investments—net
413

 
(603
)
 
912

 
 
 
 
 
 Foreign currency gains (losses)—net
(2,113
)
 
(3,061
)
 
(10
)
 
 
 
 
 
 Total non-operating income (loss)
1,047

 
(778
)
 
2,327

 
*

 
(55.0
%)
 
Income before provision for income taxes
40,270

 
35,509

 
43,300

 
13.4
%
 
(7.0
%)
 
Provision for income taxes
10,539

 
9,940

 
17,562

 
 
 
 
 
Net income
29,731

 
25,569

 
25,738

 
16.3
%
 
15.5
%
 
    Less: Net (income) loss attributable to redeemable noncontrolling interest
1,059

 
4,390

 
(656
)
 
 
 
 
 
Net income attributable to common stockholders
$
30,790

 
$
29,959

 
$
25,082

 
2.8
%
 
22.8
%
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share attributable to common stockholders
 
 
 
 
 
 
 
 
 
 
 Basic
$
0.66

 
$
0.64

 
$
0.54

 
2.7
%
 
21.6
%
 
 Diluted
$
0.65

 
$
0.63

 
$
0.53

 
2.3
%
 
21.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per share
 
 
 
 
 
 
 
 


 
 Quarterly
$
0.33

 
$
0.33

 
$
0.28

 
%
 
17.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
 
 Basic
46,830

 
46,819

 
46,386

 
 
 
 
 
 Diluted
47,524

 
47,311

 
47,047

 
 
 
 
 
_________________________

*     Not meaningful.
(1)    The presentation for the third quarter of 2017 has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018. In addition, certain prior period amounts have been reclassified to conform with the current period presentation. Amounts reclassified had no impact on net income and diluted earnings per share for all historical periods presented.

8




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
Condensed Consolidated Statements of Operations (Unaudited)
 
 
 
For the Periods
 
 
 
 
 
 
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended (1)
 
 
 
 
September 30, 2018
 
September 30, 2017
 
% Change
 
Revenue
 
 
 
 
 
 
 Investment advisory and administration fees
$
257,004

 
$
248,096

 
 
 
 Distribution and service fees
22,108

 
22,867

 
 
 
 Portfolio consulting and other
8,093

 
8,279

 
 
 
 Total revenue
287,205

 
279,242

 
2.9
%
 
Expenses
 
 
 
 
 
 
 Employee compensation and benefits
96,788

 
91,681

 
 
 
 Distribution and service fees
38,492

 
39,725

 
 
 
 General and administrative
35,791

 
30,733

 
 
 
 Depreciation and amortization
3,405

 
3,245

 
 
 
 Total expenses
174,476

 
165,384

 
5.5
%
 
Operating income (loss)
112,729

 
113,858

 
(1.0
%)
 
Non-operating income (loss)
 
 
 
 
 
 
 Interest and dividend income—net
7,434

 
2,710

 
 
 
 Gain (loss) from investments—net
(4,692
)
 
737

 
 
 
 Foreign currency gains (losses)—net
(2,672
)
 
(632
)
 
 
 
 Total non-operating income (loss)
70

 
2,815

 
(97.5
%)
 
Income before provision for income taxes
112,799

 
116,673

 
(3.3
%)
 
Provision for income taxes
28,575

 
44,993

 
 
 
Net income
84,224

 
71,680

 
17.5
%
 
    Less: Net (income) loss attributable to redeemable noncontrolling interest
4,111

 
(139
)
 
 
 
Net income attributable to common stockholders
$
88,335

 
$
71,541

 
23.5
%
 
 
 
 
 
 
 
 
Earnings per share attributable to common stockholders
 
 
 
 
 
 
 Basic
$
1.89

 
$
1.54

 
22.3
%
 
 Diluted
$
1.87

 
$
1.53

 
22.3
%
 
 
 
 
 
 
 
 
Dividends declared per share
 
 
 
 
 
 
 Quarterly
$
0.99

 
$
0.84

 
17.9
%
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 Basic
46,778

 
46,335

 
 
 
 Diluted
47,327

 
46,858

 
 
 
_________________________

(1)    The presentation for the nine months ended September 30, 2017 has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018. In addition, certain prior period amounts have been reclassified to conform with the current period presentation. Amounts reclassified had no impact on net income and diluted earnings per share for all historical periods presented.

9




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Assets Under Management (Unaudited)
 
 
 
 
 
 
 
 
 
 
By Investment Vehicle
 
 
 
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change From
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2017
 
Institutional Accounts
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
28,316

 
$
27,438

 
$
29,457

 
 
 
 
 
    Inflows
383

 
752

 
1,677

 
 
 
 
 
    Outflows
(884
)
 
(714
)
 
(1,151
)
 
 
 
 
 
    Net inflows (outflows)
(501
)
 
38

 
526

 
 
 
 
 
    Market appreciation (depreciation)
341

 
1,374

 
363

 
 
 
 
 
    Distributions
(433
)
 
(566
)
 
(731
)
 
 
 
 
 
    Transfers

 
32

 
16

 
 
 
 
 
    Total increase (decrease)
(593
)
 
878

 
174

 
 
 
 
 
Assets under management, end of period
$
27,723

 
$
28,316

 
$
29,631

 
(2.1
%)
 
(6.4
%)
 
Percentage of total assets under management
46.1
%
 
47.0
%
 
48.2
%
 
 
 
 
 
Average assets under management
$
27,992

 
$
27,412

 
$
29,659

 
2.1
%
 
(5.6
%)
 
 
 
 
 
 
 
 
 
 
 
 
Open-end Funds
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
22,827

 
$
22,136

 
$
21,613

 
 
 
 
 
    Inflows
2,000

 
2,119

 
2,297

 
 
 
 
 
    Outflows
(1,575
)
 
(1,989
)
 
(1,428
)
 
 
 
 
 
    Net inflows (outflows)
425

 
130

 
869

 
 
 
 
 
    Market appreciation (depreciation)
266

 
906

 
227

 
 
 
 
 
    Distributions
(241
)
 
(313
)
 
(177
)
 
 
 
 
 
    Transfers

 
(32
)
 
(16
)
 
 
 
 
 
    Total increase (decrease)
450

 
691

 
903

 
 
 
 
 
Assets under management, end of period
$
23,277

 
$
22,827

 
$
22,516

 
2.0
%
 
3.4
%
 
Percentage of total assets under management
38.7
%
 
37.9
%
 
36.6
%
 
 
 
 
 
Average assets under management
$
23,245

 
$
22,340

 
$
22,159

 
4.1
%
 
4.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Closed-end Funds
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
9,061

 
$
8,888

 
$
9,367

 
 
 
 
 
    Inflows

 
12

 

 
 
 
 
 
    Outflows

 

 

 
 
 
 
 
    Net inflows (outflows)

 
12

 

 
 
 
 
 
    Market appreciation (depreciation)
151

 
289

 
129

 
 
 
 
 
    Distributions
(128
)
 
(128
)
 
(122
)
 
 
 
 
 
    Total increase (decrease)
23

 
173

 
7

 
 
 
 
 
Assets under management, end of period
$
9,084

 
$
9,061

 
$
9,374

 
0.3
%
 
(3.1
%)
 
Percentage of total assets under management
15.1
%
 
15.1
%
 
15.2
%
 
 
 
 
 
Average assets under management
$
9,177

 
$
8,965

 
$
9,428

 
2.4
%
 
(2.7
%)
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
60,204

 
$
58,462

 
$
60,437

 
 
 
 
 
    Inflows
2,383

 
2,883

 
3,974

 
 
 
 
 
    Outflows
(2,459
)
 
(2,703
)
 
(2,579
)
 
 
 
 
 
    Net inflows (outflows)
(76
)
 
180

 
1,395

 
 
 
 
 
    Market appreciation (depreciation)
758

 
2,569

 
719

 
 
 
 
 
    Distributions
(802
)
 
(1,007
)
 
(1,030
)
 
 
 
 
 
    Total increase (decrease)
(120
)
 
1,742

 
1,084

 
 
 
 
 
Assets under management, end of period
$
60,084

 
$
60,204

 
$
61,521

 
(0.2
%)
 
(2.3
%)
 
Average assets under management
$
60,414

 
$
58,717

 
$
61,246

 
2.9
%
 
(1.4
%)
 
 
 
 
 
 
 
 
 
 
 
 


10




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
Assets Under Management (Unaudited)
 
 
 
 
 
 
By Investment Vehicle
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
September 30, 2018
 
September 30, 2017
 
% Change
 
Institutional Accounts
 
 
 
 
 
 
Assets under management, beginning of period
$
29,396

 
$
28,659

 
 
 
    Inflows
1,878

 
3,552

 
 
 
    Outflows
(2,433
)
 
(2,268
)
 
 
 
    Net inflows (outflows)
(555
)
 
1,284

 
 
 
    Market appreciation (depreciation)
449

 
1,887

 
 
 
    Distributions
(1,599
)
 
(2,391
)
 
 
 
    Transfers
32

 
192

 
 
 
    Total increase (decrease)
(1,673
)
 
972

 
 
 
Assets under management, end of period
$
27,723

 
$
29,631

 
(6.4
%)
 
Percentage of total assets under management
46.1
%
 
48.2
%
 
 
 
Average assets under management
$
27,730

 
$
29,302

 
(5.4
%)
 
 
 
 
 
 
 
 
Open-end Funds
 
 
 
 
 
 
Assets under management, beginning of period
$
23,304

 
$
19,576

 
 
 
    Inflows
6,654

 
7,048

 
 
 
    Outflows
(6,102
)
 
(4,702
)
 
 
 
    Net inflows (outflows)
552

 
2,346

 
 
 
    Market appreciation (depreciation)
213

 
1,399

 
 
 
    Distributions
(760
)
 
(613
)
 
 
 
    Transfers
(32
)
 
(192
)
 
 
 
    Total increase (decrease)
(27
)
 
2,940

 
 
 
Assets under management, end of period
$
23,277

 
$
22,516

 
3.4
%
 
Percentage of total assets under management
38.7
%
 
36.6
%
 
 
 
Average assets under management
$
22,631

 
$
21,132

 
7.1
%
 
 
 
 
 
 
 
 
Closed-end Funds
 
 
 
 
 
 
Assets under management, beginning of period
$
9,406

 
$
8,963

 
 
 
    Inflows
12

 

 
 
 
    Outflows

 

 
 
 
    Net inflows (outflows)
12

 

 
 
 
    Market appreciation (depreciation)
50

 
777

 
 
 
    Distributions
(384
)
 
(366
)
 
 
 
    Total increase (decrease)
(322
)
 
411

 
 
 
Assets under management, end of period
$
9,084

 
$
9,374

 
(3.1
%)
 
Percentage of total assets under management
15.1
%
 
15.2
%
 
 
 
Average assets under management
$
9,078

 
$
9,308

 
(2.5
%)
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
Assets under management, beginning of period
$
62,106

 
$
57,198

 
 
 
    Inflows
8,544

 
10,600

 
 
 
    Outflows
(8,535
)
 
(6,970
)
 
 
 
    Net inflows (outflows)
9

 
3,630

 
 
 
    Market appreciation (depreciation)
712

 
4,063

 
 
 
    Distributions
(2,743
)
 
(3,370
)
 
 
 
    Total increase (decrease)
(2,022
)
 
4,323

 
 
 
Assets under management, end of period
$
60,084

 
$
61,521

 
(2.3
%)
 
Average assets under management
$
59,439

 
$
59,742

 
(0.5
%)
 
 
 
 
 
 
 
 

11




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Assets Under Management - Institutional Accounts (Unaudited)
 
 
 
 
 
 
 
By Account Type
 
 
 
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change From
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2017
 
Japan Subadvisory
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
9,849

 
$
9,876

 
$
13,227

 
 
 
 
 
    Inflows
35

 
34

 
352

 
 
 
 
 
    Outflows
(349
)
 
(186
)
 
(627
)
 
 
 
 
 
    Net inflows (outflows)
(314
)
 
(152
)
 
(275
)
 
 
 
 
 
    Market appreciation (depreciation)
146

 
691

 
54

 
 
 
 
 
    Distributions
(433
)
 
(566
)
 
(731
)
 
 
 
 
 
    Total increase (decrease)
(601
)
 
(27
)
 
(952
)
 
 
 
 
 
Assets under management, end of period
$
9,248

 
$
9,849

 
$
12,275

 
(6.1
%)
 
(24.7
%)
 
Percentage of institutional assets under management
33.4
%
 
34.8
%
 
41.4
%
 
 
 
 
 
Average assets under management
$
9,426

 
$
9,524

 
$
12,625

 
(1.0
%)
 
(25.3
%)
 
 
 
 
 
 
 
 
 
 
 
 
Subadvisory Excluding Japan
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
6,318

 
$
6,348

 
$
6,356

 
 
 
 
 
    Inflows
45

 
172

 
161

 
 
 
 
 
    Outflows
(380
)
 
(432
)
 
(382
)
 
 
 
 
 
    Net inflows (outflows)
(335
)
 
(260
)
 
(221
)
 
 
 
 
 
    Market appreciation (depreciation)
65

 
230

 
125

 
 
 
 
 
    Total increase (decrease)
(270
)
 
(30
)
 
(96
)
 
 
 
 
 
Assets under management, end of period
$
6,048

 
$
6,318

 
$
6,260

 
(4.3
%)
 
(3.4
%)
 
Percentage of institutional assets under management
21.8
%
 
22.3
%
 
21.1
%
 
 
 
 
 
Average assets under management
$
6,263

 
$
6,329

 
$
6,351

 
(1.0
%)
 
(1.4
%)
 
 
 
 
 
 
 
 
 
 
 
 
Advisory
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
12,149

 
$
11,214

 
$
9,874

 
 
 
 
 
    Inflows
303

 
546

 
1,164

 
 
 
 
 
    Outflows
(155
)
 
(96
)
 
(142
)
 
 
 
 
 
    Net inflows (outflows)
148

 
450

 
1,022

 
 
 
 
 
    Market appreciation (depreciation)
130

 
453

 
184

 
 
 
 
 
    Transfers

 
32

 
16

 
 
 
 
 
    Total increase (decrease)
278

 
935

 
1,222

 
 
 
 
 
Assets under management, end of period
$
12,427

 
$
12,149

 
$
11,096

 
2.3
%
 
12.0
%
 
Percentage of institutional assets under management
44.8
%
 
42.9
%
 
37.4
%
 
 
 
 
 
Average assets under management
$
12,303

 
$
11,559

 
$
10,683

 
6.4
%
 
15.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Institutional Accounts
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
28,316

 
$
27,438

 
$
29,457

 
 
 
 
 
    Inflows
383

 
752

 
1,677

 
 
 
 
 
    Outflows
(884
)
 
(714
)
 
(1,151
)
 
 
 
 
 
    Net inflows (outflows)
(501
)
 
38

 
526

 
 
 
 
 
    Market appreciation (depreciation)
341

 
1,374

 
363

 
 
 
 
 
    Distributions
(433
)
 
(566
)
 
(731
)
 
 
 
 
 
    Transfers

 
32

 
16

 
 
 
 
 
    Total increase (decrease)
$
(593
)
 
$
878

 
$
174

 
 
 
 
 
Assets under management, end of period
$
27,723

 
$
28,316

 
$
29,631

 
(2.1
%)
 
(6.4
%)
 
Average assets under management
$
27,992

 
$
27,412

 
$
29,659

 
2.1
%
 
(5.6
%)
 
 
 
 
 
 
 
 
 
 
 
 

12




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
Assets Under Management - Institutional Accounts (Unaudited)
 
 
 
 
By Account Type
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
September 30, 2018
 
September 30, 2017
 
% Change
 
Japan Subadvisory
 
 
 
 
 
 
Assets under management, beginning of period
$
11,458

 
$
13,699

 
 
 
    Inflows
138

 
1,345

 
 
 
    Outflows
(940
)
 
(985
)
 
 
 
    Net inflows (outflows)
(802
)
 
360

 
 
 
    Market appreciation (depreciation)
191

 
607

 
 
 
    Distributions
(1,599
)
 
(2,391
)
 
 
 
    Total increase (decrease)
(2,210
)
 
(1,424
)
 
 
 
Assets under management, end of period
$
9,248

 
$
12,275

 
(24.7
%)
 
Percentage of institutional assets under management
33.4
%
 
41.4
%
 
 
 
Average assets under management
$
9,702

 
$
13,131

 
(26.1
%)
 
 
 
 
 
 
 
 
Subadvisory Excluding Japan
 
 
 
 
 
 
Assets under management, beginning of period
$
6,597

 
$
5,892

 
 
 
    Inflows
498

 
514

 
 
 
    Outflows
(1,127
)
 
(701
)
 
 
 
    Net inflows (outflows)
(629
)
 
(187
)
 
 
 
    Market appreciation (depreciation)
80

 
555

 
 
 
    Total increase (decrease)
(549
)
 
368

 
 
 
Assets under management, end of period
$
6,048

 
$
6,260

 
(3.4
%)
 
Percentage of institutional assets under management
21.8
%
 
21.1
%
 
 
 
Average assets under management
$
6,333

 
$
6,224

 
1.8
%
 
 
 
 
 
 
 
 
Advisory
 
 
 
 
 
 
Assets under management, beginning of period
$
11,341

 
$
9,068

 
 
 
    Inflows
1,242

 
1,693

 
 
 
    Outflows
(366
)
 
(582
)
 
 
 
    Net inflows (outflows)
876

 
1,111

 
 
 
    Market appreciation (depreciation)
178

 
725

 
 
 
    Transfers
32

 
192

 
 
 
    Total increase (decrease)
1,086

 
2,028

 
 
 
Assets under management, end of period
$
12,427

 
$
11,096

 
12.0
%
 
Percentage of institutional assets under management
44.8
%
 
37.4
%
 
 
 
Average assets under management
$
11,695

 
$
9,947

 
17.6
%
 
 
 
 
 
 
 
 
Total Institutional Accounts
 
 
 
 
 
 
Assets under management, beginning of period
$
29,396

 
$
28,659

 
 
 
    Inflows
1,878

 
3,552

 
 
 
    Outflows
(2,433
)
 
(2,268
)
 
 
 
    Net inflows (outflows)
(555
)
 
1,284

 
 
 
    Market appreciation (depreciation)
449

 
1,887

 
 
 
    Distributions
(1,599
)
 
(2,391
)
 
 
 
    Transfers
32

 
192

 
 
 
    Total increase (decrease)
(1,673
)
 
972

 
 
 
Assets under management, end of period
$
27,723

 
$
29,631

 
(6.4
%)
 
Average assets under management
$
27,730

 
$
29,302

 
(5.4
%)
 
 
 
 
 
 
 
 

13




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Assets Under Management (Unaudited)
 
 
 
 
 
 
 
 
 
 
By Investment Strategy
 
 
 
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change From
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2017
 
U.S. Real Estate
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
25,837

 
$
24,705

 
$
28,896

 
 
 
 
 
    Inflows
1,008

 
1,031

 
1,491

 
 
 
 
 
    Outflows
(1,024
)
 
(1,104
)
 
(1,403
)
 
 
 
 
 
    Net inflows (outflows)
(16
)
 
(73
)
 
88

 
 
 
 
 
    Market appreciation (depreciation)
380

 
1,945

 
62

 
 
 
 
 
    Distributions
(575
)
 
(740
)
 
(803
)
 
 
 
 
 
    Transfers
(34
)
 

 
(10
)
 
 
 
 
 
    Total increase (decrease)
(245
)
 
1,132

 
(663
)

 
 
 
 
Assets under management, end of period
$
25,592

 
$
25,837

 
$
28,233

 
(0.9
%)
 
(9.4
%)
 
Percentage of total assets under management
42.6
%
 
42.9
%
 
45.9
%
 
 
 
 
 
Average assets under management
$
25,807

 
$
24,726

 
$
28,573

 
4.4
%
 
(9.7
%)
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Securities
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
12,932

 
$
13,012

 
$
11,749

 
 
 
 
 
    Inflows
980

 
1,020

 
1,501

 
 
 
 
 
    Outflows
(808
)
 
(939
)
 
(606
)
 
 
 
 
 
    Net inflows (outflows)
172

 
81

 
895

 
 
 
 
 
    Market appreciation (depreciation)
151

 
(22
)
 
198

 
 
 
 
 
    Distributions
(142
)
 
(139
)
 
(133
)
 
 
 
 
 
    Transfers
34

 

 

 
 
 
 
 
    Total increase (decrease)
215

 
(80
)
 
960

 
 
 
 
 
Assets under management, end of period
$
13,147

 
$
12,932

 
$
12,709

 
1.7
%
 
3.4
%
 
Percentage of total assets under management
21.9
%
 
21.5
%
 
20.7
%
 
 
 
 
 
Average assets under management
$
13,086

 
$
12,984

 
$
12,258

 
0.8
%
 
6.8
%
 
 
 
 
 
 
 
 
 
 
 
 
Global/International Real Estate
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
11,674

 
$
10,965

 
$
10,121

 
 
 
 
 
    Inflows
199

 
668

 
351

 
 
 
 
 
    Outflows
(298
)
 
(270
)
 
(215
)
 
 
 
 
 
    Net inflows (outflows)
(99
)
 
398

 
136

 
 
 
 
 
    Market appreciation (depreciation)
64

 
364

 
221

 
 
 
 
 
    Distributions
(25
)
 
(53
)
 
(43
)
 
 
 
 
 
    Transfers

 

 
10

 
 
 
 
 
    Total increase (decrease)
(60
)
 
709

 
324

 
 
 
 
 
Assets under management, end of period
$
11,614

 
$
11,674

 
$
10,445

 
(0.5
%)
 
11.2
%
 
Percentage of total assets under management
19.3
%
 
19.4
%
 
17.0
%
 
 
 
 
 
Average assets under management
$
11,674

 
$
11,177

 
$
10,360

 
4.4
%
 
12.7
%
 
 
 
 
 
 
 
 
 
 
 
 

14




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Assets Under Management (Unaudited)
 
 
 
 
 
 
 
 
 
 
By Investment Strategy - continued
 
 
 
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 % Change From
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
June 30, 2018
 
September 30, 2017
 
Global Listed Infrastructure
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
6,909

 
$
6,758

 
$
6,394

 
 
 
 
 
    Inflows
93

 
121

 
441

 
 
 
 
 
    Outflows
(77
)
 
(137
)
 
(168
)
 
 
 
 
 
    Net inflows (outflows)
16

 
(16
)
 
273

 
 
 
 
 
    Market appreciation (depreciation)
105

 
222

 
146

 
 
 
 
 
    Distributions
(48
)
 
(55
)
 
(42
)
 
 
 
 
 
    Total increase (decrease)
73

 
151

 
377

 
 
 
 
 
Assets under management, end of period
$
6,982

 
$
6,909

 
$
6,771

 
1.1
%
 
3.1
%
 
Percentage of total assets under management
11.6
%
 
11.5
%
 
11.0
%
 
 
 
 
 
Average assets under management
$
7,023

 
$
6,845

 
$
6,758

 
2.6
%
 
3.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
2,852

 
$
3,022

 
$
3,277

 
 
 
 
 
    Inflows
103

 
43

 
190

 
 
 
 
 
    Outflows
(252
)
 
(253
)
 
(187
)
 
 
 
 
 
    Net inflows (outflows)
(149
)
 
(210
)
 
3

 
 
 
 
 
    Market appreciation (depreciation)
58

 
60

 
92

 
 
 
 
 
    Distributions
(12
)
 
(20
)
 
(9
)
 
 
 
 
 
    Total increase (decrease)
(103
)
 
(170
)
 
86

 
 
 
 
 
Assets under management, end of period
$
2,749

 
$
2,852

 
$
3,363

 
(3.6
%)
 
(18.3
%)
 
Percentage of total assets under management
4.6
%
 
4.7
%
 
5.5
%
 
 
 
 
 
Average assets under management
$
2,824

 
$
2,985

 
$
3,297

 
(5.4
%)
 
(14.3
%)
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
Assets under management, beginning of period
$
60,204

 
$
58,462

 
$
60,437

 
 
 
 
 
    Inflows
2,383

 
2,883

 
3,974

 
 
 
 
 
    Outflows
(2,459
)
 
(2,703
)
 
(2,579
)
 
 
 
 
 
    Net inflows (outflows)
(76
)
 
180

 
1,395

 
 
 
 
 
    Market appreciation (depreciation)
758

 
2,569

 
719

 
 
 
 
 
    Distributions
(802
)
 
(1,007
)
 
(1,030
)
 
 
 
 
 
    Total increase (decrease)
(120
)
 
1,742

 
1,084

 
 
 
 
 
Assets under management, end of period
$
60,084

 
$
60,204

 
$
61,521

 
(0.2
%)
 
(2.3
%)
 
Average assets under management
$
60,414

 
$
58,717

 
$
61,246

 
2.9
%
 
(1.4
%)
 
 
 
 
 
 
 
 
 
 
 
 

15




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
Assets Under Management (Unaudited)
 
 
 
 
 
 
By Investment Strategy
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
September 30, 2018
 
September 30, 2017
 
% Change
 
U.S. Real Estate
 
 
 
 
 
 
Assets under management, beginning of period
$
27,580

 
$
28,927

 
 
 
    Inflows
3,362

 
4,537

 
 
 
    Outflows
(3,739
)
 
(3,692
)
 
 
 
    Net inflows (outflows)
(377
)
 
845

 
 
 
    Market appreciation (depreciation)
567

 
1,142

 
 
 
    Distributions
(1,985
)
 
(2,671
)
 
 
 
    Transfers
(193
)
 
(10
)
 
 
 
    Total increase (decrease)
(1,988
)
 
(694
)
 
 
 
Assets under management, end of period
$
25,592

 
$
28,233

 
(9.4
%)
 
Percentage of total assets under management
42.6
%
 
45.9
%
 
 
 
Average assets under management
$
25,245

 
$
28,803

 
(12.4
%)
 
 
 
 
 
 
 
 
Preferred Securities
 
 
 
 
 
 
Assets under management, beginning of period
$
13,018

 
$
9,880

 
 
 
    Inflows
3,200

 
4,030

 
 
 
    Outflows
(2,743
)
 
(1,827
)
 
 
 
    Net inflows (outflows)
457

 
2,203

 
 
 
    Market appreciation (depreciation)
(98
)
 
1,007

 
 
 
    Distributions
(423
)
 
(381
)
 
 
 
    Transfers
193

 

 
 
 
    Total increase (decrease)
129

 
2,829

 
 
 
Assets under management, end of period
$
13,147

 
$
12,709

 
3.4
%
 
Percentage of total assets under management
21.9
%
 
20.7
%
 
 
 
Average assets under management
$
13,013

 
$
11,210

 
16.1
%
 
 
 
 
 
 
 
 
Global/International Real Estate
 
 
 
 
 
 
Assets under management, beginning of period
$
11,108

 
$
9,403

 
 
 
    Inflows
1,331

 
965

 
 
 
    Outflows
(855
)
 
(756
)
 
 
 
    Net inflows (outflows)
476

 
209

 
 
 
    Market appreciation (depreciation)
171

 
971

 
 
 
    Distributions
(141
)
 
(148
)
 
 
 
    Transfers

 
10

 
 
 
    Total increase (decrease)
506

 
1,042

 
 
 
Assets under management, end of period
$
11,614

 
$
10,445

 
11.2
%
 
Percentage of total assets under management
19.3
%
 
17.0
%
 
 
 
Average assets under management
$
11,251

 
$
10,099

 
11.4
%
 
 
 
 
 
 
 
 

16




Cohen & Steers, Inc. and Subsidiaries
 
 
 
 
 
 
Assets Under Management (Unaudited)
 
 
 
 
 
 
By Investment Strategy - continued
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
 
September 30, 2018
 
September 30, 2017
 
% Change
 
Global Listed Infrastructure
 
 
 
 
 
 
Assets under management, beginning of period
$
6,932

 
$
5,697

 
 
 
    Inflows
465

 
719

 
 
 
    Outflows
(287
)
 
(297
)
 
 
 
    Net inflows (outflows)
178

 
422

 
 
 
    Market appreciation (depreciation)
20

 
781

 
 
 
    Distributions
(148
)
 
(129
)
 
 
 
    Total increase (decrease)
50

 
1,074

 
 
 
Assets under management, end of period
$
6,982

 
$
6,771

 
3.1
%
 
Percentage of total assets under management
11.6
%
 
11.0
%
 
 
 
Average assets under management
$
6,911

 
$
6,347

 
8.9
%
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
Assets under management, beginning of period
$
3,468

 
$
3,291

 
 
 
    Inflows
186

 
349

 
 
 
    Outflows
(911
)
 
(398
)
 
 
 
    Net inflows (outflows)
(725
)
 
(49
)
 
 
 
    Market appreciation (depreciation)
52

 
162

 
 
 
    Distributions
(46
)
 
(41
)
 
 
 
    Total increase (decrease)
(719
)
 
72

 
 
 
Assets under management, end of period
$
2,749

 
$
3,363

 
(18.3
%)
 
Percentage of total assets under management
4.6
%
 
5.5
%
 
 
 
Average assets under management
$
3,019

 
$
3,283

 
(8.0
%)
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
Assets under management, beginning of period
$
62,106

 
$
57,198

 
 
 
    Inflows
8,544

 
10,600

 
 
 
    Outflows
(8,535
)
 
(6,970
)
 
 
 
    Net inflows (outflows)
9

 
3,630

 
 
 
    Market appreciation (depreciation)
712

 
4,063

 
 
 
    Distributions
(2,743
)
 
(3,370
)
 
 
 
    Total increase (decrease)
(2,022
)
 
4,323

 
 
 
Assets under management, end of period
$
60,084

 
$
61,521

 
(2.3
%)
 
Average assets under management
$
59,439

 
$
59,742

 
(0.5
%)
 
 
 
 
 
 
 
 


17




Non-GAAP Reconciliations
Management believes that use of the following non-GAAP financial measures enhances the evaluation of the Company's results, as they provide greater transparency into the Company's operating performance. In addition, these non-GAAP financial measures are used to prepare the Company's internal management reports and are used by management in evaluating the Company's business.
While management believes that this non-GAAP financial information is useful in evaluating the Company's results and 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 Net Income Attributable to Common Stockholders and U.S. GAAP Earnings per Share to Net Income Attributable to Common Stockholders, As Adjusted, and Earnings per Share, As Adjusted
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands, except per share data)
 Three Months Ended
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
Net income attributable to common stockholders, U.S. GAAP
$
30,790

 
$
29,959

 
$
25,082

 
Deconsolidation (1)
(63
)
 
485

 
(558
)
 
Results from seed investments (2)
(551
)
 
(2,154
)
 
(521
)
 
Accelerated vesting of restricted stock units (3)

 

 
298

 
General and administrative (4)

 

 
(950
)
 
Foreign currency exchange gain (5)
(217
)
 
(953
)
 

 
Tax adjustments (6)
313

 
528

 
2,300

 
Net income attributable to common stockholders, as adjusted
$
30,272

 
$
27,865

 
$
25,651

 
 
 
 
 
 
 
 
Diluted weighted average shares outstanding
47,524

 
47,311

 
47,047

 
Diluted earnings per share, U.S. GAAP
$
0.65

 
$
0.63

 
$
0.53

 
Deconsolidation (1)

*
0.01

 
(0.01
)
 
Results from seed investments (2)
(0.01
)
 
(0.04
)
 
(0.01
)
 
Accelerated vesting of restricted stock units (3)

 

 
0.01

 
General and administrative (4)

 

 
(0.02
)
 
Foreign currency exchange gain (5)
(0.01
)
 
(0.02
)
 

 
Tax adjustments (6)
0.01

 
0.01

 
0.05

 
Diluted earnings per share, as adjusted
$
0.64

 
$
0.59

 
$
0.55

 
_________________________

*    Amounts round to less than $0.01 per share.
(1)    Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.
(2)    Represents (i) dividend income and realized (gains) losses on seed investments in Company-sponsored funds, (ii) the Company's proportionate share of the results of operations of seed investments classified as equity method investments, including realized and unrealized (gains) losses, and (iii) realized and unrealized (gains) losses on unconsolidated seed investments.
(3)    Represents amounts related to the accelerated vesting of certain restricted stock units due to retirements.
(4)    Represents refund of foreign withholding taxes.
(5)    Represents net foreign currency exchange gains associated with U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries.
(6)    Tax adjustments are summarized in the following table:
 
(in thousands)
 Three Months Ended
 
 
September 30, 2018
 
June 30,
2018
 
September 30, 2017
 
Transition tax liability in connection with the Tax Cuts and Jobs Act
$

 
$
(123
)
 
$

 
Tax reserves

 

 
1,665

 
Other tax-related items

 
56

 
(5
)
 
Tax-effect of non-GAAP adjustments
313

 
595

 
640

 
Total tax adjustments
$
313

 
$
528

 
$
2,300

 
 
 
 
 
 
 
 


18




Reconciliation of U.S. GAAP Operating Income and U.S. GAAP Operating Margin to Operating Income, As Adjusted, and Operating Margin, As Adjusted
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands, except percentages)
 Three Months Ended
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
Revenue, U.S. GAAP (1)
$
98,331

 
$
94,410

 
$
96,787

 
Deconsolidation (2)
(180
)
 
(194
)
 
(101
)
 
Revenue, as adjusted
$
98,151

 
$
94,216

 
$
96,686

 
 
 
 
 
 
 
 
Expenses, U.S. GAAP (1)
$
59,108

 
$
58,123

 
$
55,814

 
Deconsolidation (2)
(373
)
 
(347
)
 
(222
)
 
Accelerated vesting of restricted stock units (3)

 

 
(298
)
 
General and administrative (4)

 

 
950

 
Expenses, as adjusted
$
58,735

 
$
57,776

 
$
56,244

 
 
 
 
 
 
 
 
Operating income, U.S. GAAP
$
39,223

 
$
36,287

 
$
40,973

 
Deconsolidation (2)
193

 
153

 
121

 
Accelerated vesting of restricted stock units (3)

 

 
298

 
General and administrative (4)

 

 
(950
)
 
Operating income, as adjusted
$
39,416

 
$
36,440

 
$
40,442

 
 
 
 
 
 
 
 
Operating margin, U.S. GAAP
39.9
%
 
38.4
%
 
42.3
%
 
Operating margin, as adjusted
40.2
%
 
38.7
%
 
41.8
%
 
_________________________

(1)    The presentation for the third quarter of 2017 has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018.
(2)    Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.
(3)    Represents amounts related to the accelerated vesting of certain restricted stock units due to retirements.
(4)    Represents refund of foreign withholding taxes.
 
Reconciliation of U.S. GAAP Non-operating Income (Loss) to Non-operating Income (Loss), As Adjusted
 
 
 
 
 
 
 
For the Periods
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 Three Months Ended
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
Non-operating income (loss), U.S. GAAP
$
1,047

 
$
(778
)
 
$
2,327

 
Deconsolidation (1)
803

 
4,722

 
(1,335
)
 
Results from seed investments (2)
(551
)
 
(2,154
)
 
(521
)
 
Foreign currency exchange gain (3)
(217
)
 
(953
)
 

 
Non-operating income (loss), as adjusted
$
1,082

 
$
837

 
$
471

 
_________________________

(1)    Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.
(2)    Represents (i) dividend income and realized (gains) losses on seed investments in Company-sponsored funds, (ii) the Company's proportionate share of the results of operations of seed investments classified as equity method investments, including realized and unrealized (gains) losses, and (iii) realized and unrealized (gains) losses on unconsolidated seed investments.
(3)    Represents net foreign currency exchange gains associated with U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries.
 

19

EX-99.2 3 cns-earningsannouncements918.htm CNS EARNINGS ANNOUNCEMENT 09.30.18 Exhibit


Cohen & Steers, Inc.
280 Park Avenue
New York, NY 10017-1216
Tel (212) 832-3232
cnslogo93018.jpg
Contact:
Matthew S. Stadler
Executive Vice President
Chief Financial Officer
Cohen & Steers, Inc.
Tel (212) 446-9168

COHEN & STEERS REPORTS RESULTS FOR THIRD QUARTER 2018
     
New York, NY, October 17, 2018—Cohen & Steers, Inc. (NYSE: CNS) today reported financial results for the three months ended September 30, 2018, including net income and earnings per share. The third quarter 2018 earnings release and investor presentation can be viewed at Cohen & Steers Reports Results for Third Quarter 2018 and on the Company’s website at www.cohenandsteers.com under “Company—Investor Relations—Press Releases.

Conference Call

The Company will host a conference call tomorrow, October 18, 2018, at 9:00 a.m. (ET) to discuss these results via webcast and telephone. Hosting the call will be chief executive officer, Robert Steers, president, Joseph Harvey, and chief financial officer, Matthew Stadler.

Investors and analysts can access the live conference call by dialing 800-954-0695 (U.S.) or +1-212-231-2930 (international); passcode: 21897047. 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 at approximately 11:00 a.m. (ET) on October 18, 2018 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21897047. 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—Overview. The webcast will be archived on the website for one month.

About Cohen & Steers

Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle.



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